National Food Authority (2)

February 25, 2010 FIRB RESOLUTION NO. 004-10 SUBJECT MATTER : National Food Authority (2) WHEREAS, the prices of sugar sold in the country have been increasing at alarming levels; WHEREAS, the Department of Trade and Industry (DTI), Department of Agriculture (DA), Sugar Regulatory Administration (SRA) and National Food Authority (NFA) have been prompted to take the initiatives to ease the drastic increases in sugar prices; WHEREAS, pursuant to Executive Order No. 857, the NFA and the private sector have been authorized to import sugar using the Tax Expenditure Subsidy Scheme of the NFA to ensure and stabilize the country's supply of sugar and its prices; WHEREAS, the NFA has been authorized to import 150,000 MT of refined sugar for the purpose of augmenting domestic production and stabilizing the supply and price of sugar, in the process incurring duty and tax obligations thereon to the Bureau of Customs (BOC); WHEREAS, the tax and other obligations arising therefrom shall be borne by the private sector; WHEREAS, the NFA applied for tax subsidy in the amount of P1,636,309,339.69 corresponding to its 2010 sugar importations for the private sector as payment of the 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; HSIaAT WHEREAS, the provision of tax subsidy to answer for the duty obligations on the sugar importation of the private sector is likely to encourage the latter to help address and stabilize the supply and prices of sugar; WHEREAS, the grant of tax subsidy to the subject sugar importation will help the government to immediately stabilize the price and supply of sugar; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the NFA corresponding to its 2010 sugar importations in the amount of ONE BILLION SIX HUNDRED THIRTY SIX MILLION THREE HUNDRED NINE THOUSAND THREE HUNDRED THIRTY NINE AND 69/100 PESOS (P1,636,309,339.69) only: Provided, that the Certificate of Entitlement to Subsidy (CES) shall be issued only upon submission by the NFA to the FIRB of the required billings and/or documents evidencing the importations with a certification from the NFA that the volume covered by said billings is part of the sugar importation authorized by the NFA Council for 2010: Provided further, that such availment shall be in accordance with the terms and conditions of Section 14 of the 2010 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.) REYNALDO V. UMALI Deputy Commissioner Bureau of Customs (SGD.) ELMER C. HERNANDEZ Undersecretary Department of Trade and Industry (SGD.) MARGARITA R. SONGCO Deputy Director-General National Economic and Development Authority (SGD.) MARISSA O. CABREROS Assistant Commissioner Bureau of Internal Revenue (SGD.) DANTE V. SY OIC, National Tax Research Center Head, FIRB Secretariat Director Department of Budget and Management (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer-FIRB