National Dairy Authority (1)

December 7, 2005 FIRB RESOLUTION NO. 006-05 SUBJECT : National Dairy Authority (1) WHEREAS, the National Dairy Authority (NDA) is mandated to ensure the accelerated development of the Philippine dairy industry and envisioned to achieve a vibrant local dairy industry providing wholesome, affordable milk to consumers through increase coverage of milk feeding programs to help reduce malnutrition; WHEREAS, pursuant to Section 6 of Republic Act No. 7884, otherwise known as the National Dairy Development Act of 1995, the NDA may receive grants, subsidies, donations and contributions from corporations, trusts, foundations, associations and other sources from any private or government office, agency or corporation in the Philippines or abroad; WHEREAS, the NDA became a recipient of a commodity grant under Section 416 (b) Program of the United States Department of Agriculture for the Expanded Program for Rural Enhancement which was approved through an Agreement and Plan of Operation signed on September 24, 2003 between the Government of the Philippines represented by the Secretary of the Department of Agriculture and the Government of the United States of America represented by US Ambassador Francis J. Ricciardone; WHEREAS, under the Agreement and Plan of Operation, the US Government through its Commodity Credit Corporation (CCC) shall provide the Philippine Government through its Department of Agriculture-NDA 2,000 metric tons of non-fat dry milk estimated at an aggregate of US$3.3 million divided into a barter component and a component for monetization broken down as follows: Commodity Use of Quantity Package Size Commodity (in MT) Non-fat dry milk Barter 808 25 kg bags Non-fat dry milk Monetization 1,192 25 kg bags Total 2,000 ===== WHEREAS, under Item No. 8 of the Plan of Operation, customs duties and internal revenue taxes will be charged to those buying the non-fat dry milk set aside for monetization; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to grant tax subsidy to the NDA in the amount of P9,525,773.00 only : representing taxes and duties incurred for the importation of 808 metric tons of non fat dry milk which is the barter component of the commodity grant under Section 416 (b) Program of the USDA for the Expanded Program for Rural Enhancement that arrived on January 22, 2004 per Annex A hereof: Provided , that the tax subsidy shall be used exclusively for the barter component of the Program only: Provided, finally , that the grant of such tax subsidy shall be in accordance with the terms and conditions of Section 14 of the 2005 General Appropriations Act, subject to the availability of funds therefor, pursuant to the terms and conditions of the Rules and Regulations to Implement the Tax Subsidy Provisions Under Executive Order No. 93. FOR THE FIRB: (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat Reference: Joint FIRB-Technical Committee Meeting dated December 7, 2005 ANNEX A TAX SUBSIDY ENDORSED, 2005: NDA No Shipment Description Arrival Tax Duty Total 1 40x40' CNTRS. STC: 32,067 BAGS NON FORTIFIED January 22, 2004 P8,669,673 P856,200 P9,525,773 NON-FAT DRY MILK Source: BOC billings dated February 5, 2004