National Food Authority (1)

October 27, 2006 FIRB RESOLUTION NO. 009-06 SUBJECT : National Food Authority (1) 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 NFA originally applied for tax subsidy in the amount of P11.3062 billion but paid duties amounting to P5,197,228,459.00 from June 30 to October 2, 2006, leaving a balance of P6,108,971,541.00 out of its original request; WHEREAS, payment of its remaining 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 corresponding to its 2006 rice importations in the amount of P6,108,971,541.00 only : Provided , that the initial issuance of the Certificate of Entitlement to Subsidy (CES) shall be limited to the amount of P2,507,690,692.00 only , representing duties due on 71 shipments (314,550 MT) with billings from Bureau of Customs (BOC) that arrived from March 3 to September 8, 2006: 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 volume covered by said billings is part of the 1,838,000 MT of rice authorized by the NFA Council: Provided finally , that such availment shall be in accordance with the terms and conditions of Section 14 of the 2005 General Appropriations Act, as reenacted, 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. TADaCH (SGD.) GIL P. MONTALBO Director Department of Budget and Management (SGD.) ELMER C. HERNANDEZ Undersecretary Department of Trade and Industry (SGD.) MARGARITA R. SONGCO Deputy Director-General National Economic and Development Authority (SGD.) JAMES H. ROLDAN Assistant Commissioner Bureau of Internal Revenue RAMON G. CUYCO Director Bureau of Customs (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat National Tax Research Center (SGD.) GIL S. BELTRAN Undersecretary Presiding Officer - FIRB