National Food Authority

January 26, 2005 FIRB RESOLUTION NO. 001-05 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 FIRB in its December 6, 2004 meeting already approved the amount of P4,054,539,247.00 only, covering the duties on NFA's importation of 600,000 MT of rice; WHEREAS, there is a need to also provide tax subsidy to the subject additional rice importation of 311,750 MT, to enable the NFA to adequately respond to the country's rice shortfall; 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; trdcd2005 NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the NFA in the amount of P2,125,574,464.00 only , representing duties due on its additional rice importation of 311,750 MT for 2004: Provided , that the tax subsidy shall be used exclusively for importations made by the NFA only: Provided further , that the issuance of the Certificate of Entitlement to Subsidy (CES) shall be based on actual billings of duties by the Bureau of Customs as submitted to the FIRB with a certification from the NFA that the volume covered by said billings pertain to the 311,750 MT of rice importation: 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. CHTcSE (SGD.) GIL P. MONTALBO Director Department of Budget and Management (SGD.) ELMER C. HERNANDEZ Undersecretary Department of Trade and Industry (SGD.) MARGARITA R. SONGCO Assistant Director-General National Economic and Development Authority (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Bureau of Internal Revenue (SGD.) GIL A. VALERA Deputy Commissioner Bureau of Customs (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat National Tax Research Center (SGD.) NIEVES L. OSORIO Undersecretary of Finance Presiding Officer FIRB