QuestionsQuestions (NFA MEMORANDUM CIRCULAR NO. AO-2K5-12-001)
It provides guidelines and procedures for imposing penalties under prior NFA circulars/regulations governing Farmers As Importers (FAI)/private sector rice importation, particularly the penalty provisions.
It implements Letter Circular AO-2K2-12-001 as amended, Memorandum Circular AO-2K3-12-002, Memorandum Circular AO-2K5-01-001, and Memorandum Circular AO-2K5-11-003, among others.
BOC requires the importer to present proof of payment of corresponding penalties (NFA Official Receipt) within three (3) banking days from the date of arrival of the rice cargo.
BOC shall hold the shipment corresponding to ten percent (10%) and/or the corresponding graduated rate of the landed cost of the cargo depending on the violations, and if the violation is late arrival beyond the deadline date, BOC may withhold the total cargo.
BOC must immediately notify the NFA field office in writing, indicating importer’s name, quantity of rice imported, actual date of arrival, vessel name, invoice price, port of discharge, and quantity withheld, and provide copies of the bill of lading, commercial invoice, and surveyor’s certificate, if any.
NFA shall commence the withdrawal and transfer within 24 hours, if possible, from receipt of the written notice/advice.
NFA must receive the cargo from the BOC District Collector or authorized representative, with the importer (or duly authorized representative) indicating the volume (number of bags).
The importer must settle penalties and all expenses related to transfer such that NFA release is evidenced by an NFA Official Receipt, and settlement should not exceed 30 calendar days from the final transfer of stocks.
The rice cargo shall be forfeited in favor of NFA.
If the cargo is forfeited because of late arrival beyond the deadline date, the total cargo automatically becomes under the accountability of NFA and follows documentation procedures (e.g., issuance of Warehouse Stock Receipt).
The importer may settle within 30 days from receipt of the rice shipment by NFA; the settlement covers the penalty (except total cargo forfeited for late arrival beyond deadline) and transfer cost.
Cash, Manager’s check, and Demand bank draft.
Yes. It is advisable that these instruments be issued preferably by LBP, PNB, PCIB, Metrobank, or Banco de Oro because NFA accounts are maintained there, facilitating clearing transactions.
Storage is free for 30 days reckoned from the final transfer of the cargo to the warehouse.
The remaining stocks at the warehouse are subject to a storage fee of P0.50 per bag per day.
After the grace period, the forfeited stocks remain under NFA accountability and the documentation procedures (e.g., issuance of Warehouse Stock Receipt) apply similar to those used for total cargo forfeited in favor of NFA.
BRD refers the matter to the Department of Legal Affairs (DLA) for collection and/or other legal activities that NFA may deem appropriate.
They take effect immediately.