In its ruling, the CTA lifted the seizure order issued against two Cebu-based rice importers –-River Valley Distribution Inc. (RVDI) and its sister company, Mixed Load Distribution Network Inc. (MLDNI) –and directed that rice stocks be returned to the companies’ licensed storage facilities.
Lawful, duties and taxes paid
In a resolution promulgated on Oct. 7, 2025, the CTA Second Division said importation of all rice stocks from Pakistan and Vietnam seized last June was lawful and that all duties and taxes had been paid.
The Criminal Investigation and Detection Group seized the rice shipment from the RVDI’s warehouse in Talisay City, southern Cebu on June 20 based on the 24-hour documentation rule under Republic Act No. 12022 (Anti-Agricultural Economic Sabotage Act of 2024).
The CIDG was shown copies of the importation documents as well as certification from the Bureau of Plant Industry and receipts from the Bureau of Customs (BOC) but the law enforcement agency insisted the rice shipment was undocumented.
In a joint compliance filed on Oct. 1, the BOC confirmed that RVDI imported 1,080,000 kilograms of rice from Pakistan and Vietnam through the Port of Cebu, while MLDNI imported 27,930,000 kilograms from Vietnam through the Port of Dumaguete—both with taxes and duties fully settled.
The confirmation prompted the CTA to rule that there was no further reason to hold the stocks, ordering their immediate return to the companies’ possession.
Importer hails CTA ruling as victory for due process
Jhonelle Estrada-Tan-Kit, lead counsel for RVDI, described the ruling as “victory for truth, diligence and due process.”
“This ruling reaffirms that legitimate, tax-paying businesses deserve fairness and respect. Enforcement of the law should never come at the expense of those who follow it,” the lawyer said in a statement.
“The transfer of our rice back to our own facility is not just procedural—it’s deeply symbolic. It marks the end of months of disruption and reputational harm caused by a mistaken enforcement action,” she added.
Counsel urges caution in enforcing anti-smuggling law
Jade Seit, Cebu-based counsel for RVDI and MLDNI, also lauded the CTA’s decision but urged caution in the enforcement of the new anti-agricultural smuggling law.
“The seizure was unjust and disruptive. The CIDG insisted the rice was undocumented despite full compliance. What this case revealed is that, at the time of the raid, enforcement proceeded without the Rules of Engagement or implementing guidelines required by law,” Seit noted.
She added that while the intent of R.A. 12022—to protect the agricultural sector from economic sabotage—is commendable, “care, fairness, and respect for legitimate businesses must guide its implementation.”
Both companies emphasized that they support the government’s anti-smuggling campaign, but advocate for stronger coordination between enforcement agencies and legitimate importers to ensure fair implementation of R.A. 12022.
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