Rather than initiate an abandonment proceedings on the three rice shipments at Subic Free Port Zone for which the consignees have failed to file entries of importation in accordance with the law, Customs officials are apparently insisting on  seizure proceedings which would earn for them a 20 percent share from the loot as informant’s reward.
This was the opinion of Valenzuela Rep. Magtanggol Gunigundo as he insisted the government has all the right to acquire possession of the rice shipments worth more than P500 million still being held at the Subic Port.
At the weekly Kapihan sa Anabelle’s, Gunigundo said the Tariff and Customs Code of the Philippines provides that an importation entry be made within 30 days after a shipment had arrived which the importers or the consignees of the rice shipment had failed to do so.
“There are three rice shipments that are at issue here. First, the 420,000 sacks of rice shipment consigned to Metro Eastern Trading Corp. owned by Mr. Cesar Bulaon which arrived at the Subic Port last April 4, the second and the third — the 90 container vans containing 45,000 sacks of rice  from Vietnam and India consigned to two different firms, Oriental Trade Link Inc. and Masagana Import Export Inc. which arrived on June 13 and 20, respectively,”  Gunigundo said.
“With respect to the April 4 shipment, it was clear in the inward forward manifest that the shipment contained rice but Metro Eastern did not have a permit from the National Food Authority (NFA) as it claimed it has not yet decided whether to ship it out of the country or to sell the rice locally. Being a locator of the Subic Bay Metropolitan Authority (SBMA), it was allowed to delay its filing of an importation entry and was given 30 days to process its NFA permit in the event it wants to sell its rice locally or transship to another country,” Gunigundo explained.
“However, the 30 days had already lapsed and it had not yet secured its permit from the NFA nor transship the rice to another country so it has to file an importation entry which it had failed to so,” Gunigundo added.
With regard to the June 13 and 20 shipment, Gunigundo said although the inward and forward manifest declared the shipments to contain fertilizer and construction materials, it cannot be considered to be misdeclaration as both Oriental and Masagana, mere port users, failed to file their importation entry.
At the Senate hearing, it was alleged that a certain Danny Ngo was one of the brokers who tried to facilitate the release of rice shipments from Vietnam and India.
“Section 1801 of the Tariff and Importation Code provides that an importation entry be made within 30 days after any shipment had arrived but the importers or the consignees of the rice shipments in issue had failed to do so,”  Gunigundo said.
“But we were surprised when the District Collector of the Port of Subic, citing Section 2503 of the Tariff and Customs Code, instead initiated a seizure proceedings on the rice shipments,” Gunigundo said. “Aside from being a long process, Section 2503 provides a 20-percent reward for the informant.”
“With the three rice shipments valued at more than P500 million, the anonymous informant, only known to the Bureau of Custom (BoC) officials, could collect no less than P100 million,”  Gunigundo said.
But, more importantly, Gunigundo said, the rice shipments were clearly abandoned as the consignees had failed to file their respective importation entries upon arrival of the shipments, thus the government has all the rights to acquire possession over them and subject them to immediate auction or distribute them to poor families, especially those who were badly hit by the recent typhoon.
“The law on abandonment makes it easier for the BoC to immediately dispose of the rice shipments and transform those into revenues,” Gunigundo said.
“It inflicts a stronger blow on the soul of smugglers,” Gunigundo added. “The circumstances surrounding the shipments here call for abandonment and not seizure and detention proceedings.”
As rice is considered to be highly perishable goods, Gunigundo said the BoC should prioritize immediate disposal of the rice shipment.
“It’s a good thing the April shipment is stored in a warehouse in Subic being used by Metro Eastern,” Gungundo said. “But the two June rice shipments are just lying at the Subic Port and the two weeks of heavy rains could have already damaged the rice.”
Gunigundo has already filed a measure calling for the House of Representatives to conduct an inquiry in aid of legislation, to find out, among others, if the district collectors of all ports of entry under the BoC are guilty of misfeasance or nonfeasance for failure to apply the appropriate laws which could facilitate the disposal of the abandoned rice importation.
“It is imperative to evaluate whether there are other similar shipments at the Port of Subic and at other ports of entry wherein Customs district collectors are not applying the correct procedures, the Valenzuela solon added.