FIRB Resolution No. 007-14

August 15, 2014 FIRB RESOLUTION NO. 007-14 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, 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 Council Resolution Nos. 700-2013-K (15 November 2013) and 709-2014-B (17 February 2014) approved the importation of 500,000 metric tons (MT) and 800,000 MT of rice, respectively on a government to government mode of procurement, the corresponding aggregate duty obligations amounting to PhP11,868,007,500 to be covered by the Tax Expenditure Subsidy (TES); WHEREAS, the tax subsidy request for 500,000 MT of rice importation under NFA Council Resolution No. 700-2013-K is inclusive of the unsettled duties on its rice importation in 2013 corresponding to 91,550.70 MT that is billed only in 2014 and the 2014 rice importation of 408,449.30 MT; 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; DEcTCa NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the NFA in the amount of ELEVEN BILLION SIX HUNDRED SIXTY FIVE MILLION FOUR HUNDRED SIXTY THOUSAND ONE HUNDRED SEVENTY TWO PESOS (PhP11,665,460,172) only based on the exchange rate (USD1 = PhP44.232) used by the DOF-CAG to cover its approved rice importation of 500,000 MT and 800,000 MT under NFA Council Resolution Nos. 700-2013-K and 709-2014-B, respectively: Provided, that the NFA shall submit to the FIRB a certified copy of its importation plan containing information on the volume of rice importation per port of discharge and estimated date of arrival: Provided further, 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 under Resolution Nos. 700-2013-K or 709-2014-B; Provided finally, that such availment shall be in accordance with the terms and conditions of Section 15 of RA No. 10633 or the 2014 GAA, 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 EMMANUEL F. ESGUERRA Deputy Director-General National Economic and Development Authority (SGD.) ESTELA V. SALES Deputy Commissioner Bureau of Internal Revenue (SGD.) ALEXIS F. MEDINA Director Bureau of Customs (SGD.) TRINIDAD A. RODRIGUEZ OIC-Executive Director National Tax Research Center Head, FIRB Secretariat (SGD.) JEREMIAS N. PAUL, JR. Undersecretary of Domestic Finance Group Presiding Officer-FIRB