Farmers blame tariffication for rampant rice smuggling – updates from the peasant movement of the Philippines

𝑇ℎ𝑖𝑛 𝑙𝑖𝑛𝑒 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 𝑖𝑚𝑝𝑜𝑟𝑡𝑎𝑡𝑖𝑜𝑛 𝑎𝑛𝑑 𝑠𝑚𝑢𝑔𝑔𝑙𝑖𝑛𝑔

“We want to believe that the latest raid of several rice warehouses in Bulacan is not just for show and some brownie points. Among those raided by the Bureau of Customs and House Speaker Martin Romualdez include FS Rice Mill Warehouse, San Pedro Warehouse, and Great Harvest Rice Mill Warehouse in the Intercity Industrial Complex in Balagtas, Bulacan. The said raid seized 202,000 sacks or Php505 million worth of smuggled rice from Vietnam, Cambodia, and Thailand which are being repacked as local rice.

“Sa dinami-dami ng mga ginawang raid sa bodega at warehouses na may kontrabando at smuggled agricultural products, wala namang mga mastermind na nakulong at naparusahan. Noong isang taon, may halos isang bilyong halaga ng smuggled rice ang dumating sa Port of Iloilo. May nakulong ba? This proves that the rice cartel and their wide chain of operation and networks remain protected under this administration,” according to peasant leader Danilo Ramos, also a rice farmer from Bulacan.  

“There is a very fine line between importation and technical smuggling, almost a hairline difference. The RA 11203 or rice tariffication blurred that line, thereby making it much easier even for legal importers to smuggle rice, sugar, vegetables, and other products,” Ramos said, further stating that importers often use several schemes such as misdeclaration, misclassification, or undervaluation to avoid paying the correct taxes.

“Ang sabi ng Pangulo bilang na ang araw ng mga agricultural smugglers. Ang gustong makita ng publiko ay may mahuli, makulong at maparusahang big-time smugglers. Kailangan may managot sa batas,” Ramos said.

“It is also the government’s fault that it has lost all regulatory powers and control over the rice industry. RA 11203 allowed the private sector to freely import rice subject to tariff. Even the National Food Authority’s (NFA) mandate to regulate import licensing and procure rice from farmers was clipped. Just about anyone can obtain Sanitary and Phytosanitary Import Clearance (SPIC) permits. In fact, the DA’s proposal for a ‘super fast lane’ for rice importation will further worsen rice smuggling,” the KMP leader said.  

KMP further said that if rice importers profit heavily from tariffication, rice smugglers are raking in much more in superprofits as they get away with not paying the correct taxes. In 2019, rice importers and traders profited an average of P73.48 billion, and P43.95 billion in 2020 under the rice tariffication with a rate of profiteering ranging from 101 to 131% of the actual cost of rice production.

KMP calls for the junking of the rice tariffication law. The group also urges the public to raise concerns and complaints over the increasing prices of rice, food, and basic goods. ###