MANILA, Philippines – Farmer groups sought the dismissal of Tariff Commission (TC) officials in a case filed before the Office of the Ombudsman on Wednesday, August 14, alleging that the respondents failed to conduct consultations before reducing rice tariffs through Executive Order 62.
The complainants said this was in violation of the conditions set in the flexible clause of the Customs Modernization and Tariff Act (CMTA).
Under the flexible clause, the TC is expected to hold an investigation and public hearings with concerned parties and then submit its findings to the National Economic and Development Authority. Only then can NEDA recommend to the president any increase or decrease in tariffs.
EO 62, signed on June 20, cuts tariff rates on rice from 35% to 15%, and maintains decreased tariffs on corn, pork, among others. The Philippine government is maintaining this tariff calibration until 2028.
The groups that filed the case were Samahang Industriya ng Agrikultura (SINAG), Federation of Free Farmers, United Broiler Raisers Association, and a representative from party-list group Magsasaka. The respondents are TC Chairperson Marilou Mendoza and TC Commissioners Ernesto Albano and Marisa Maricosa Pedron.
‘A mockery of its own rules’
According to complainants, there had been investigations in 2023 about the tariff modification on rice and the extension of reduced tariff rates on rice, maize, corn, meat and swine. These led to Executive Order 50, the groups noted.
However, the groups pointed out that prior to the specific reduction of rice tariffs to 15%, there had been no petitions, investigations, or any notices of public hearing.
“Such news and statement from the NEDA Secretary Balisacan shocked us as we were never informed, nor were we ever called for investigation by the Tariff Commission about the reduction of the rice tariff,” the complaint read.
The groups said in a separate statement that the TC “made a mockery of its own rules and regulations when it reasons that past hearings would suffice to issue an executive order.”
“Lahat na lang pala, pwede ituro ang sinasabing review para ilusot ang pagbaba ng taripa,” said Rosendo So, president of SINAG.
“Puwede na nating i-abolish ang TC kung ang basis sa anumang tariff reduction ay mga dati pang hearings.”
(We could just point out past reviews to justify tariff reductions. We can abolish the TC if the basis for any tariff reductions could be past hearings.)
‘Stakeholders were invited’
Balisacan said last June that reducing rice tariffs would bring down prices and support domestic production.
He mentioned that the TC had conducted hearings prior to the reduction.
“As Section 1608 of the CMTA stipulated, the TC conducted public hearings on the comprehensive review to provide stakeholders with a reasonable opportunity to attend, present evidence, and voice their opinions,” Balisacan said in a statement.
“The consultation began as early as March 2023, and 801 stakeholders were invited, with at least 192 coming from the agriculture sector.”
TC had gathered, according to Balisacan, position papers from “41 private sector parties, a consumer group, 15 Philippine government agencies, and a member of the House of Representatives.”
Last July 4, agricultural groups trooped to the Supreme Court to seek a temporary restraining order against EO 62, pending their request to declare the order void and unconstitutional. – Rappler.com