National Food Authority (1)

October 14, 1999 FIRB RESOLUTION NO. 002-99 SUBJECT : National Food Authority (1) 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, the domestic level of rice and corn production in 1998 was adversely affected by the occurrence of the EL Nio/La Nia phenomenon and the series of typhoons which hit the country during the same year; and WHEREAS, to offset the significant drop in rice and corn production and to meet the country's total rice and corn requirements, the NFA imported 1.96 million metric tons of rice and 317,242.453 metric tons of corn in 1998. NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to grant tax subsidy to the NFA in the amount of P13,087,941,166.17 only, representing the duties due on its 1998 importation of rice and corn, broken down as follows: Item Duties Rice P11,904,546,703.17 Corn 1,183,394,463.00 Total P13,087,941,166.17 =============== Provided, That the grant of such tax subsidy shall be in accordance with the terms and conditions of Section 13 of the 1999 General Appropriations Act, subject to the availability of fund therefor, pursuant to the terms and conditions of the Rules and Regulations to Implement the Tax Subsidy Provisions Under Executive Order No. 93. BE IT FURTHER RESOLVED, AS IT IS HEREBY RESOLVED, to require the NFA to submit to the FIRB a breakdown of the distribution of said importations, specifying, among others, the disposition of such rice and corn as to the different regions of the country, the prices at which such items were sold at retail level, the identities of traders used as outlets to dispose of such items, including the criteria for their selection. HTSIEa (SGD.) SOLOMON S. CUA Undersecretary of Finance Presiding Officer FIRB Reference: FIRB Meeting dated October 13, 1999