National Food Authority (1)

February 25, 2011 FIRB RESOLUTION NO. 004-11 SUBJECT MATTER : National Food Authority (1) 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 and corn which are the Filipino staple food items; WHEREAS, to achieve these objectives, the NFA has resorted to rice and corn importations to augment domestic production, in the process incurring duty obligations thereon to the Bureau of Customs (BOC); WHEREAS, the NFA Council during its meeting on February 9, 2011, approved the immediate importation of 660,000 MT of rice under the Private Sector Financed Importation Program (PSFIP) using the TES; WHEREAS, the NFA applied for tax subsidy in the amount of P6,697,567,800.00 to cover the 2011 rice importations under the PSFIP; WHEREAS, the provision of tax subsidy to answer for the duty obligations on the rice importation is likely to encourage the private sector, farmers' organizations and all other licensed rice importers to help address the strong demand and shortfall in overall cereal production versus utilization requirement; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the NFA corresponding to its 2011 rice importation in the amount of SIX BILLION SIX HUNDRED NINETY-SEVEN MILLION FIVE HUNDRED SIXTY-SEVEN THOUSAND EIGHT HUNDRED PESOS (P6,697,567,800.00) 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 rice importation authorized by the NFA Council for 2011: Provided further, that such availment shall be in accordance with the terms and conditions of Section 13 of the 2011 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. aSDCIE (SGD.) LAURA B. PASCUA Undersecretary Department of Budget and Management (SGD.) CRISTINO L. PANLILIO 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.) ANGELITO A. ALVAREZ Commissioner Bureau of Customs (SGD.) DANTE V. SY Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer-FIRB