National Food Authority (2)

May 21, 2004 FIRB RESOLUTION NO. 004-04 SUBJECT MATTER : National Food Authority (2) WHEREAS, the National Food Authority (NFA) is mandated to ensure food security and grains supply in the country and stabilize their prices; cHCaIE WHEREAS, there is a need to ensure sufficient supply of corn to meet domestic consumption; WHEREAS, to achieve these objectives, the NFA has resorted to corn 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 RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the NFA in the amount of P1,995,000,000 only , representing duties due on its 2004 corn importations: 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 350,000 MT of corn importations: Provided furthermore, that the volume and timing of importations shall be in accordance with those approved by the NFA Council: 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. (SGD.) NIEVES L. OSORIO Undersecretary of Finance Presiding Officer-FIRB Reference: Joint FIRB and Technical Committee Meeting dated May 20, 2004.