National Food Authority

June 22, 2001 FIRB RESOLUTION NO. 001-01 SUBJECT : National Food Authority WHEREAS, THE National Food Authority (NFA) pursuant to its charter (Presidential Decree No. 4, as amended) is mandated to ensure the country's self-sufficiency in its food requirements; WHEREAS, there is a need to stabilize the price and supply of basic food commodities, particularly rice which is a staple food item; WHEREAS, to achieve this, the NFA has resorted to rice importation, in the process incurring duty obligations thereon to the Bureau of Customs; WHEREAS, payment of said duty obligations would have an adverse impact on NFA'a financial position and consequently affect its ability to stabilize the price and supply of rice; WHEREAS, NFA's importation scheme in times of shortages has to be coordinated and consistent with the procedures established by the Tariff and Related Matters (TRM) Committee for reasons of national interest and overall economic development; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the National Food Authority in the amount of P1,848,436,694.00 only, representing duties due on its rice importations from January 4, 1999 to February 14, 1999: Provided , that such availment shall be in accordance with the terms and conditions of Section 13 of the 2001 General Appropriations Act, subject to the availability of funds therefor, pursuant to the terms and conditions of the Rules and Regulations to Implement the Subsidy Provision under Executive Order No. 93; Provided further, that the NFA shall henceforth submit its rice and related importation plans including a breakdown thereof between importation for buffer stock purposes and for reasons of production shortfalls and/or crisis/calamities to the TRM Committee for the latter's consideration; Provided furthermore , that any importation by the NFA not related to shortages shall be referred to the FIRB for the latter's consideration for purposes of tax subsidy. (SGD.) CORNELIO C. GISON Undersecretary of Finance Presiding Officer FIRB Reference: Joint FIRB-Technical Committee Meeting dated June 21, 2001