National Food Authority (2)

July 22, 2013 FIRB RESOLUTION NO. 007-13 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 rice importations to augment domestic production, in the process incurring duty obligations thereon to the Bureau of Customs (BOC); WHEREAS, the FIRB already approved the amount of PhP1,570,800,000.00 to cover the NFA's duty obligation for its regular rice importations of 187,000 metric tons (MT) for 2013, per FIRB Resolution No. 3-13; WHEREAS, the NFA entered into a contract with the Vietnam Southern Food Corporation II (VINAFOOD II) for the supply of the 187,000 MT of rice, with the provision of 10% more or less at seller's option (MOLSO); WHEREAS, the contracted supplier, VINAFOOD II, exercised the 10% MOLSO provision of the contract, thereby, increasing the total volume of rice importation for 2013 from 187,000 to 205,700 MT with a corresponding duty of about PhP1,626,613,890.00; cIADTC WHEREAS, the NFA requested for additional tax subsidy in the amount of PhP55,813,890.00 to cover the balance of the duties brought about by the additional importation of 18,700 MT of rice; 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 request for additional tax subsidy of the NFA to cover the balance of the duties on its additional rice importation of 18,700 MT for 2013 in the amount of FIFTY FIVE MILLION EIGHT HUNDRED THIRTEEN THOUSAND EIGHT HUNDRED NINETY PESOS (PhP55,813,890.00) 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 2013; Provided further, that such availment shall be in accordance with the terms and conditions of Section 13 of RA No. 10352 or the 2013 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.) ADRIAN S. CRISTOBAL, JR. Undersecretary Department of Trade and Industry (SGD.) EMMANUEL F. ESGUERRA Deputy Director-General National Economic and Development Authority (SGD.) ESTELA V. SALES Deputy Commissioner Bureau of Internal Revenue (SGD.) RAMON G. CUYCO Director Bureau of Customs (SGD.) TRINIDAD A. RODRIGUEZ Officer-in-Charge National Tax Research Center Head, FIRB Secretariat (SGD.) JEREMIAS N. PAUL, JR. Undersecretary Department of Finance Presiding Officer-FIRB