National Food Authority

February 9, 2016 FIRB RESOLUTION NO. 001-16 SUBJECT MATTER : 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 ensure adequate supply of rice in the country as well as augment the needed buffer stock requirement of the NFA, the NFA Council, per NFA Council Resolution Nos. 790-2015-I (September 3, 2015), 789-2015-H (August 20, 2015) and 779-2015-E (May 19, 2015) has authorized the NFA to import 750,000 MT of rice under a government to government mode of procurement; WHEREAS, payment of its 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 RESOLVED, AS IT IS HEREBY RESOLVED, to approve the for tax subsidy of the NFA in the amount of FIVE BILLION THREE HUNDRED SEVENTY-FIVE MILLION ONE HUNDRED SIXTY THOUSAND PESOS (PhP5,375,160,000.00) only covering the duties on 750,000 MT of rice, broken down as follows: Total TES Cost (in (in Quantity Price Forex Billion Tariff Billion Supplier (MT) (USD/MT) Rate PhP) Rate PhP) Government of Vietnam 450,000 426.60 48 9.22 35% 3.23 Government of Thailand 300,000 426.60 48 6.14 35% 2.15 Total 750,000 15.36 5.38 ======= ===== ==== Provided , that the Certificate of Entitlement to Subsidy (CES) shall be issued only upon submission by the NFA to the Fiscal Incentives Review Board (FIRB) of the required billings and/or documents evidencing the importations with a certification from the NFA that the volumes covered by said billings are part of the rice importations authorized by the NFA Council: Provided finally, that such availment shall be in accordance with the terms and conditions of Section 16 of Republic Act 10717 or the 2016 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. (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) CEFERINO S. RODOLFO Undersecretary Department of Trade and Industry (SGD.) ROSEMARIE G. EDILLON Assistant Director-General National Economic and Development Authority (SGD.) ESTELA V. SALES Deputy Commissioner Bureau of Internal Revenue (SGD.) VICTOR PABLO C. TRINIDAD Legal Service Bureau of Customs February 12, 2016 (SGD.) TRINIDAD A. RODRIGUEZ OIC-Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) JEREMIAS N. PAUL, JR. Undersecretary of Domestic Finance Group Presiding Officer-FIRB