Agriculture Secretary William D. Dar was tight-lipped a day before the government is supposed to reveal the findings of its investigation on whether the increased rice imports did cause injury to palay planters.
Dar said he has no comment after the media pressed him if he would impose a provisional duty on Thursday, October 10, or reveal findings of DA’s preliminary investigation on the increased rice imports.
“No comment yet,” he told reporters while he was waiting for the elevator in the second floor of the Senate.
Dar was also mum on whether the Cabinet-level Economic Development Cluster (EDC) intervened in the safeguard investigation of the DA.
Asked again if he would impose a provisional duty on rice imports starting tomorrow, Dar reiterated that concerned government officials are still discussing the matter.
“No comment, yet. No comment yet,” he emphasized before he entered the elevator after he was asked if he will impose a provisional duty on rice imports on October 10, a month after the DA initiated a preliminary investigation for safeguard duty.
BusinessMirror sources said the EDC wants to discuss the proposed imposition of a safeguard duty on rice imports before the DA moves forward with the results of its preliminary investigation.
Reliable sources told the BusinessMirror that the DA’s preliminary investigation has been completed and all information, including recommendations, are now on Dar’s table, awaiting for his decision.
Under Republic Act 8800 or Safeguard Measures Act, the Agriculture chief shall “make a preliminary determination that increased imports of the product under consideration are a substantial cause of, or threaten to substantially cause, serious injury to the domestic industry,” not later than 30 calendar days from publication of its preliminary investigation.
The 30th day of the DA’s safeguard investigation would fall on Thursday,October 10, as the department published its notice of investigation on September 11.
Under the law, the date of publication of the notice for preliminary investigation serves as the first day of the investigation.
Under RA 8800’s implementing rules and regulations (IRR), the secretary shall “essentially determine” five factors in its preliminary determination.
First,
he should determine if there was an increase in imports, either in absolute
terms or relative to domestic production, in the last five years preceding the
application to substantiate claims of significant increase in import volume,
according to the IRR.
“Provided, however, that in some cases, the period maybe adjusted to cover a
shorter period, if necessary, in order to take into account other
considerations that will ensure the appropriateness of the chosen period, e.g.,
seasonally of product, availability of data or facility in verification of
data,” it added.
The secretary should also determine the “presence and extent of serious injury
or threat thereof to the domestic industry producing the like or directly
competitive product.”
The secretary must also explicitly show the “causal relationship between the
increased imports of the product under consideration and the serious injury or
threat thereof to the affected domestic industry.”
The secretary must also take into account the impacts of seasonality of
products, whenever, applicable.
“That there has been a substantial increase in imports taking into account
their volume and whether or not there has been a rapid accumulation of
inventories of the domestic product and a reduction in sales and profit margins
of the domestic industry,” it added.
If the preliminary findings meet the above-mentioned conditions, then the
secretary, without any delay, should transmit his findings to the Tariff
Commission for immediate formal investigation within three calendar days from
adopting the decision.
“However, if the preliminary findings of the secretary are negative, the
secretary shall terminate the investigation,” the IRR read.
Under the law, the secretary is mandated to “issue a public notice on his
preliminary findings” within two days after he makes a decision.
“He shall also furnish all interested parties on record a copy of his decision,
subject to the requirement to protect confidential information, whether
affirmative or negative,” the IRR read.
In a news statement on September 21, the DA said it initiated the preliminary
investigation to “arrest” the influx of imports, “particularly this forthcoming
main harvest season.”
The DA pointed out that the imposition of a safeguard duty on rice imports is
one of the measures it is banking on to stabilize the supply and price of rice.
““We have to holistically and systematically protect the consuming public and
much more, our small farmers,” Dar was quoted as saying in the statement.
“So, I have taken the necessary steps and the direction where we will enforce
legal measures during these times when we have greatly exceeded the volume
needed to fill up the slack in national rice supply, most particularly in Metro
Manila and major urban rice consumption centers,” Dar added.
Dar said at least 2.4 million metric tons of rice have entered the country,
which “has gone beyond what is needed by the country.”
“We will protect our small farmers by not allowing additional imports
especially this main harvest season. We want them to benefit from the
respectable farmgate prices of palay set by the government through the National
Food Authority (NFA),” he said.