National Food Authority (NFA)

June 25, 2019 FIRB RESOLUTION NO. 003-19 SUBJECT MATTER : National Food Authority (NFA) 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 its Resolution Nos. 905-2018-H-01 (September 24, 2018) authorized the NFA to import 750,000 metric tons (MT) of rice under an Open Tender importation mode of procurement for 2018; WHEREAS, NFA Council Resolution Nos. 882-2018-D (April 17, 2018) and 883-2018-D (April 17, 2018) authorized the NFA to import 500,000 MT of rice under a Government-to-Government and Open Tender importation procurement scheme for 2018 to which 32,800 MT remains as balance; WHEREAS, all importations under the above-mentioned resolutions have already arrived and the Statement of Accounts (SOAs) covering PhP271,274,361.85 representing actual arrivals of rice importation for the period August 2018 to October 2018 were already forwarded to the FIRB Secretariat; 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; WHEREAS, the subject rice importation is the last importation of the NFA as Republic Act No. 11203, otherwise known as the Rice Tariffication Law, limited the role of the NFA solely on the maintenance of rice buffer stock to be sourced solely from local farmers (Section 8); NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the NFA in the amount of Six Billion One Hundred Fourteen Million Four Hundred Sixty Seven Thousand Six Hundred Nine and 35/100 Pesos (PhP6,114,467,609.35) only, covering the duties on 782,800 MT of rice importation, broken down as follows: Balance from FIRB Resolution 4-18 (Based on BOC SOAs/Billings) Quantity (In MT) Total CIF (In PhP) Tariff Rate Tax Expenditure Subsidy (TES) (In PhP) 32,800 775,069,605.29 35% 271,274,361.85 Additional 2018 Importations Particulars Quantity (In MT) CIF (USD/MT) Forex Rate a Total CIF Cost (In PhP) Tariff Rate b TES THAI CAPITAL CROPS CO. LTD. 18,000 383.00 54.50 375,723,000.00 35% 131,503,050.00 VINAFOOD II 15,000 397.18 54.50 324,694,650.00 35% 113,643,127.50 VINAFOOD I 14,000 396.50 54.50 302,529,500.00 35% 105,885,325.00 DFT THAILAND 80,000 424.70 54.50 1,851,692,00.00 n 35% 648,092,200.00 VINAFOOD II 123,000 427.80 54.50 2,867,757,300.00 35% 1,003,715,055.00 OLAM INTERNATIONAL 65,000 395.30 54.50 1,400,350,250.00 35% 490,122,587.50 VINAFOOD II 118,000 426.00 54.50 2,739,606,000.00 35% 958,862,100.00 OLAM INTERNATIONAL 40,000 391.30 54.50 853,034.000.00 35% 298,561,900.00 OLAM INTERNATIONAL 30,000 397.60 54.50 650,076,000.00 35% 227,526,600.00 SHWE WAH YAUNG AGRI. PRODUCTION CO. 28,000 369.65 54.50 564,085,900.00 35% 197,430,065.00 ASIA GOLDEN RICE CO. LTD. 45,000 406.00 54.50 995,715,000.00 35% 348,500,250.00 ASIA GOLDEN RICE CO. LTD. 54,000 396.00 54.50 1,165,428,000.00 35% 407,899,800.00 THAI CAPITAL CROPS CO. LTD. 45,000 396.00 54.50 971,190,000.00 35% 339,916,500.00 OLAM INTERNATIONAL 75,000 399.50 54.50 1,632,956,250.00 35% 571,534,687.50 Subtotal 750,000 16,694,837,850.00 5,843,193,247.50 Total 782,800 17,469,907,455.29 6,114,467,609.35 a BSP foreign exchange rate as of October 5, 2018. b Tariff rate per Executive Order No. 23, Extending the Effectivity of the Most-Favoured-Nation Rates of Duty on Certain Agricultural Products under Republic Act No. 10863 (Customs Modernization and Tariff Act, April 27, 2017). Provided , that an initial Certificate of Entitlement to Subsidy (CES) shall be issued covering PhP271,274,361.85 only representing actual arrivals of rice importation with Statement of Accounts (SOAs) for the period August 2018 to October 2018. Provided further , that subsequent CES shall be issued only upon submission by the NFA to the FIRB of the required billings/SOAs pertaining to the importations, together with a certification that the volumes covered by said billings/SOAs were part of the 782,800 MT of rice importation authorized by the NFA Council for 2018. Provided furthermore , that the NFA shall submit the disposition reports on the rice importations granted tax subsidy under this Resolution, citing in particular the areas where the concerned importations were distributed and the quantity corresponding to such distribution. Provided finally , that such availment shall be in accordance with the terms and conditions of Section 15 (c) of Republic Act 11260 or the 2019 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 Deputy Director-General National Economic and Development Authority (SGD.) MARISSA O. CABREROS Deputy Commissioner Bureau of Internal Revenue (SGD.) REY LEONARDO B. GUERRERO Commissioner Bureau of Customs (SGD.) DONALDO M. BOO OIC-Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) ANTONETTE C. TIONKO Undersecretary of Finance Presiding Officer-FIRB n Note from the Publisher: Copied verbatim from the official copy.