RICE traders and importers who have unused sanitary and phytosanitary import clearance could be suspended by the Department of Agriculture (DA) as about 60 percent of issued SPS-ICs in the first half, covering almost 2 million metric tons (MMT), are unutilized to date.
Latest Bureau of Plant Industry (BPI) data obtained and analyzed by the BusinessMirror showed that only 1,803 SPS-ICs out of the 3,926 SPS-ICs issued from January to June have been used by eligible rice importers as of July 10.
This corresponds to a total rice volume imported of about 1.347 MMT out of the 3.261 MMT applied volume during the six-month period, BPI data showed.
About 2,123 SPS-ICs, which cover 1.914 MMT of rice, are yet to be used by registered and eligible traders, importers, firms, cooperatives, and organizations, based on BPI data.
Agriculture Secretary William D. Dar has issued a new memorandum order (MO) reminding importers that “low utilization” of SPS-ICs could be “grounds for rejection of application or their suspension as importer.” “Importers should regularly account and surrender any unused SPS-ICs to BPI,” Dar said in his MO No. 30 dated June 4 but was made public on July 6.
“They are reminded that low utilization of applied SPS-IC can affect their track record and can be grounds for rejection of application or their suspension,” Dar added.
Dar issued the new order to address the “problem of low utilization” of SPS-IC for milled rice and “ensure availability of food” during this Covid-19 pandemic.
The new order required rice importers to submit additional requirements for the application of SPS-IC which are 1) payment of certification of the consignment and 2) list of distribution points/warehouse of the said consignment.
The additional requirements shall be attached to the importers’ application together with previous requirements of proforma/commercial invoice, GMO or non-GMO certification and certificate of analysis for heavy metals, according to the MO.
In his order, Dar said failure to comply with the new requirements will result in rejection of the traders and importers’ application for SPS-IC for milled rice.
BPI data showed that the agency issued a monthly average of 654 SPS-IC while utilization by importers was only at about 300 SPS-ICs per month.
In January, BPI issued 801 SPS-ICs but only 307 SPS-ICs were used, while in February, only 227 SPS-ICs were utilized by importers out of the 1,076 SPS-ICs issued to them.
Under the rice trade liberalization (RTL) law, interested rice importers shall secure a SPS-IC—a document that certifies food and plant safety of the goods—from the BPI to be able to bring in staple from abroad.
The implementing rules and regulations (IRR) of the RTL law stipulated that “imported rice should arrive before the expiration of the SPS-IC from BPI.”
Furthermore, Dar issued MO No. 28, Series of 2019, that further specified the said provision of the IRR of the law.
Based on his MO last year, the actual rice consignment “must be shipped out from the country of origin within the prescribed date in the approved SPS-IC and must arrive not later than 60 days from the Must Ship Out Date.”
Earlier this year, Dar ordered the voiding of all unused SPS-ICs for milled rice that were issued last year as BPI data showed that some 1,752 SPS-ICs were unused at the end of 2019.