National Food Authority (2)

April 29, 2011 FIRB RESOLUTION NO. 007-11 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 achieve these objectives, the NFA has resorted to cereals and sugar importations to augment domestic production, in the process incurring duty obligations thereon to the Bureau of Customs (BOC); WHEREAS, on 2010, the NFA was granted tax subsidy for the Private Sector Financed (PSF) Sugar Importation, PSF Rice Importation and NFA Regular Rice Importation under FIRB Resolution Nos. 4-10 and 10-10; 6-10; and 3-10, respectively. In the said importations, there were twenty-two (22) shipments which were already released in 2010 but were only issued the corresponding BOC Billings/Statements of Account in 2011, making the NFA liable for unsettled customs duties, thus, prompting it to apply for tax subsidy in the amount of P494,631,390.00; WHEREAS, the NFA applied for tax subsidy in the amount of P2,400,597,382.01 corresponding to its duty obligations on contracted 2010 rice importation, delivery of which was deferred to 2011, corresponding to 51,300 metric tons (MT) and 2011 rice importation corresponding to 200,000 MT; WHEREAS, the grant of tax subsidy to the subject importations will help the government to immediately stabilize the price of food and ensure food security, as well; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the NFA in the amount of TWO BILLION EIGHT HUNDRED NINETY FIVE MILLION TWO HUNDRED TWENTY EIGHT THOUSAND SEVEN HUNDRED SEVENTY TWO PESOS AND 01/100 (P2,895,228,772.01) with the following breakdown: A. 2010 Unsettled Duties Volume (MT) Amount 1. PSF Sugar Importation 16,612 P279,414,400.00 2. PSF Rice Importation 653 4,211,122.00 3. NFA's Rice Importation 19,350 211,005,868.00 P494,631,390.00 B. Regular Rice Importation 1. Rice Importation 2010 but deferred to 2011 51,300 629,339,782.01 2. 2011 Rice Importation 200,000 1,771,257,600.00 2,400,597,382.01 P2,895,228,772.01 ============== Provided, that the initial issuance of CES shall be limited to the amount of P494,631,390.00 only, representing duties due on twenty-two (22) shipments with billings from the BOC: Provided further, that the subsequent (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 volumes covered by said billings are part of the rice importations authorized by the NFA Council: 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. (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.) RAMON G. CUYCO Director 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