National Food Authority (NFA)

October 31, 2018 FIRB RESOLUTION NO. 004-18 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; acEHCD 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. 882-2018-D (April 17, 2018) and 883-2018-D (April 17, 2018) authorized the NFA to import 500,000 metric tons (MT) of rice under a Government-to-Government and Open Tender importation mode of procurement for 2018; WHEREAS, NFA Council Resolution No. 854-2017-E (May 15, 2017) authorized the NFA to import 250,000 MT of rice under an Open Tender importation procurement scheme for 2017 to which 44,408 MT remains as balance; 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; EcTCAD NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the NFA in the amount of Four Billion Four Hundred Sixty Three Million Seventy Four Thousand Seven Hundred Seventy Five and 30/100 Pesos (PhP4,463,074,775.30) only, covering the duties on 544,408 MT of rice importation, broken down as follows: 2017 Importations (Based on BOC Statement of Accounts) Quantity (In MT) Total CIF (In PhP) Tariff Rate TES (In Php) 44,408 886,853,655.14 35% 310,398,779.30 2018 Importations Particulars Quantity (In MT) CIF (USD/MT) Forex Rate Total CIF Cost (In PhP) Tariff Rate TES (In PhP) VINAFOOD 1 80,000 476.50 52.20 1,989,864,000.00 35% 696,452,400.00 VINAFOOD 1 50,000 485.50 52.20 1,267,155,000.00 35% 443,504,250.00 DFT 120,000 478.50 52.20 2,997,324,000.00 35% 1,049,063,400.00 OLAM INTERNATIONAL LIMITED 37,500 429.10 52.20 839,963,250.00 35% 293,987,137.50 ASIA GOLDEN RICE CO. LTD. 25,000 431.00 52.20 562,455,000.00 35% 196,859,250.00 ASIA GOLDEN RICE CO. LTD. 33,500 434.00 52.20 758,935,800.00 35% 265,627,530.00 PONGLARP CO. LTD. 36,000 428.85 52.20 805,894,920.00 35% 282,063,222.00 CAPITAL CEREALS CO. LTD. 18,000 432.90 52.20 406,752,840.00 35% 142,363,494.00 CAPITAL CEREALS CO. LTD. 25,000 431.85 52.20 563,564,250.00 35% 197,247,487.50 THAI HUA CO. LTD. 75,000 427.30 52.20 1,672,879,500.00 35% 585,507,825.00 Subtotal 500,000 11,864,788,560.00 4,152,675,996.00 Total 544,408 12,751,642,215.14 4,463,074,775.30 Provided , that an initial Certificate of Entitlement to Subsidy (CES) shall be issued covering PhP1,621,742,442.55 only representing actual arrivals of rice importation with Statement of Accounts (SOAs) for periods August 1, 2017 to September 30, 2017 and May 1, 2018 to June 30, 2018 ( Annex A ). 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 are part of the 544,408 MT of rice importation authorized by the NFA Council for 2017 and 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 of Republic Act 10964 or the 2018 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. SDHTEC (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.) TRINIDAD A. RODRIGUEZ Executive Director National Tax Research Center Head, FIRB Secretariat ANNEX A Tax Subsidy Endorsed for the National Food Authority (NFA) NFA's 2017 & 2018 Rice Importation 2017 Importation No. Statement of Account/ Control No. Port of Entry Date of Billing Volume (in MT) Customs Duty (in Php) 1 NFA250KMT17101202-49G2P Manila November 21, 2017 2,000.00 13,846,208.00 2 NFA250KMT17112802-58G2P Manila December 6, 2017 6,008.00 40,963,910.00 3 NFA250KMT17090605-10G2P Batangas September 25, 2017 3,750.00 25,999,004.00 4 NFA250KMT17090604-09G2P Batangas September 25, 2017 3,750.00 25,999,004.00 5 NFA250KMT17092602-23G2P Batangas October 2, 2017 3,750.00 25,862,298.00 6 NFA250KMT17100903-41G2P Legazpi November 14, 2017 6,050.00 40,954,885.30 7 NFA250KMT17082903-02G2P Cebu August 29, 2017 6,600.00 47,219,211.00 8 NFA250KMT17100901-39G2P General Santos November 29, 2017 10,000.00 71,508,915.00 9 NFA250KMT17100902-40G2P Davao November 22, 2017 2,500.00 18,045,344.00 SUBTOTAL 44,408.00 310,398,779.30 2018 Importation 10 NFA250KMT18060804-07G2G Manila June 28, 2018 25,000.00 220,606,444.00 11 NFA250KMT18061302-09G2G Manila June 18, 2018 27,000.00 235,773,153.00 12 NFA250KMT18070401-21G2G La Union July 12, 2018 14,000.00 125,391,882.00 13 NFA250KMT18060101-01G2G Subic June 4, 2018 4,000.00 35,815,843.00 14 NFA250KMT18060102-02G2G Subic June 4, 2018 7,000.00 61,552,967.00 15 NFA250KMT18060601-04G2G Subic June 7, 2018 6,000.00 54,052,037.00 16 NFA250KMT18070402-22G2G Subic August 1, 2018 8,000.00 71,652,504.00 17 NFA250KMT18062204-15G2G Batangas August 10, 2018 12,400.00 110,884,862.00 18 NFA250KMT18060602-05G2G Tabaco July 17, 2018 6,300.00 55,615,963.10 19 NFA250KMT18062703-19G2G Tabaco July 18, 2018 3,700.00 33,190,331.65 20 NFA250KMT18062053-17G2G Iloilo July 10, 2018 4,000.00 35,786,728.00 21 NFA250KMT18062201-12G2G Cebu June 22, 2018 7,000.00 62,013,616.00 22 NFA250KMT18060802-06G2G CDO June 19, 2018 4,600.00 43,769,182.10 23 NFA250KMT18061401-10G2G CDO July 4, 2018 7,700.00 73,780,435.40 24 NFA250KMT18061301-08G2G General Santos June 29, 2018 5,000.00 44,081,754.00 25 NFA250KMT18060103-03G2G Surigao June 13, 2018 5,000.00 47,375,961.00 SUBTOTAL 146,700.00 1,311,343,663.25 TOTAL 191,108.00 1,621,742,442.55 AMOUNT GRANTED PER FIRB RESOLUTION 4-18 4,463,074,775.30 AMOUNT COVERED BY CES 0184 1,621,742,442.55 BALANCE 2,841,332,332.75