National Food Authority

February 11, 2004 FIRB RESOLUTION NO. 001-04 SUBJECT : National Food Authority WHEREAS, the National Food Authority (NFA) is mandated to ensure food security and grains supply in the country and stabilize their prices; WHEREAS; there is a need to stabilize the price and supply of basic food commodities, particularly rice which is the Filipino staple food; WHEREAS, to achieve these objectives, the NFA has resorted to rice importation to augment domestic production, in the process incurring duty obligations thereon to the Bureau of Customs; WHEREAS, the full payment of said duty obligations would have an adverse impact on NFA's financial position and further exacerbate the magnitude of its loss as duties would form part of its operating expenses; NOW, THEREFORE, BE IT RESOLVE AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the NFA in the amount of P1,682,824,325.00 only , representing duties due on its rice importations loom April 18 to August 5, 2003: Provided, that the tax subsidy shall be used exclusively for importations made by the NFA only: Provided further , that the tax subsidy shall be availed of in the 3rd quarter of 2004: Provided finally , that such availment shall be in accordance with the terms and conditions of Section 13 of the 2003 General Appropriations Act as reenacted, 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. IDEHCa (SGD.) NIEVES L. OSORIO Undersecretary of Finance Presiding Officer FIRB Reference : Joint FIRB and Technical Committee Meeting dated December 17, 2003 and February 11, 2004