Lawmakers and government officials are keen on retaining the National Food Authority’s (NFA) power to issue import permits (IPs) as a measure to regulate the entry of imported rice into the country.
This was evident during the House Committee on Food and Agriculture Technical Working Group’s (TWG) deliberations on the initial draft of the substitute bill amending Republic Act (RA) 8178, or the Agricultural Tariffication Act, on September 19.
The amendment will abolish the quantitive-restriction (QR) scheme on rice imports, as committed by the Philippines to the World Trade Organization.
The chairman of the TWG, Party-list Rep. Jose T. Panganiban Jr. of Anac-IP, said he is amenable to retaining the power of the NFA to issue IPs, but not as the sole authority to import rice.
“The permit shall come from the NFA, but to give them the sole authority to import all rice requirement, in fact, that is where I disagree,” said Panganiban, who also chairs the House Committee on Food and Agriculture.
During the TWG, Rep. Gloria Macapagal-Arroyo of the Second District of Pampanga proposed that the government adopt an import-licensing regime that would ensure regulation of rice imports in the country. Arroyo noted that this kind of measure would shield local farmers from adverse effects caused by sudden influx of cheaper rice from abroad.
Meanwhile, Agriculture Undersecretary for Policy and Planning Segfredo R. Serrano supported the proposal of maintaining the government’s authority to issue IPs, adding that a set of guidelines should be developed in issuing such.
“There could be a multisectoral [committee] tasked by law to develop guidelines in the issuance of import licences. Whether the import licensing remains within the NFA or other agencies, we do not have any problem with that,” he said.
“As for the proposal to confine the NFA’s authority to buffer stocking and emergency importation, we can conform with that as long as the import-licensing provision of the NFA is retained with adequate guidelines,” he added. The agriculture official pointed out that aside from higher tariffs, having an import-licensing regime would also serve as mechanism to protect local farmers from cheaper rice imports.
Serrano pointed out that without an import license or permit, a rice trader cannot bring in any imports.
“We propose in this bill that we preserved the import licensing for rice. There’s no much higher protection than import licensing…you can have a 1,000-percent tariff rate but if you do not have an import licensing then you are just as open as everybody else. I think the combination of applied tariffs that are not too high but pleasurable enough and the administration of import licensing by the NFA, or whatever agency that will administer it, will provide our farmers the protection,” he added.
The TWG later on included three provisions relating to the NFA in the draft of the substitute bill after no objection was made during the deliberations.
“So, we agree to confine the power of the NFA to import only for buffer stocking and emergency. We also maintain its current import-licensing power,” Panganiban said.
However, the TWG deferred other discussions relating to other powers of the NFA, such as market interventions, to a later meeting.
In its position paper submitted to Panganiban, NFA Administrator Jason Aquino said the state-run food agency should maintain its import-licensing authority even after the removal of the QR on rice.
“The NFA will still monitor and regulate all rice imports. During the transition period, the NFA should still retain its present regulatory powers, i.e., issuance of import permits,” Aqunio said in the position paper dated August 31, a copy of which was obtained by the BusinessMirror.
“After the transition period, the NFA should still be allowed to continue to license all those engaged in the rice business, to properly monitor the volume and arrival of all rice imports, and compliance to Food Safety Act,” Aquino added.
At present, the NFA regulates the country’s rice importation by dividing the current import quota to licensed and accredited traders and importers.
Any interested rice trader shall comply with the requirements outlined by NFA’s minimum access volume (MAV) guidelines.
For example, interested importers should file their letter of intent, after which the NFA MAV prequalification team will conduct the validation and authentication of all the requirements submitted by the applicants.
The team will also verify if the applicant is a party to any case or investigation for rice smuggling, hoarding, unauthorized rebagging or resacking of government stocks to commercial sacks, diversion and cornering activities. After this, a Certificate of Eligibility shall be issued to qualified applicants.
Under the guidelines, all rice importers are also required to register with the Bureau Plant Industry-National Plant Quarantine Services Division prior to the conduct of negotiation and actual importation.
Also, a private trader could only secure an IP from the NFA upon payment of a P5,000 processing fee per bill of lading, according to the agency’s MAV 2017 Guidelines.
The issuance of IP shall also be on a per bill of lading basis, according to the MAV 2017 guidelines, which was approved by the NFA Council. The NFA Council is the highest policy-making body of the NFA, which is chaired by Cabinet Secretary Leoncio B. Evasco Jr.