National Food Authority (2)

November 28, 2016 FIRB RESOLUTION NO. 005-16 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; 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 No. 836-2016-I authorized the NFA to import 250,000 MT of rice under a government-to-government procurement scheme; 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; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the NFA in the amount of One Billion Seven Hundred Eighty Four Million Three Hundred Seventy Thousand Pesos (PhP1,784,370,000.00) only covering the duties on 250,000 MT of rice importation, broken down as follows: Supplier Quantity (MT) CIF (USD/MT) Forex Rate Total Cost (in Billion PhP) Tariff Rate Tax Expenditure Subsidy (TES) (in Billion PhP) Socialist Republic of Vietnam-VINA FOOD II 150,000 424.85 48 3.06 35% 1.07 Kingdom of Thailand-Department of Trade, Ministry and Commerce 100,000 424.85 48 2.04 35% 0.71 Total 250,000 5.10 1.78 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/Statement of Accounts (SOAs) pertaining to the importations, together with a certification that the volumes covered by said billings/SOAs are part of the 250,000 MT of rice importation authorized by the NFA Council for 2016. Provided further, that, the NFA shall submit the disposition reports on the rice importations granted tax subsidy under FIRB Resolution Nos. 1-16 and 5-16 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 16 of Republic Act 10717 or the 2016 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. TAIaHE (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.) JESUS CLINT O. ARANAS Deputy Commissioner Bureau of Internal Revenue (SGD.) MA. LOURDES L. UY OIC Director, Collection Service Bureau of Customs (SGD.) TRINIDAD A. RODRIGUEZ Acting Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) ANTONETTE C. TIONKO Undersecretary of Finance Presiding Officer-FIRB