Philippine International Trading Corporation (1)

December 7, 2005 FIRB RESOLUTION NO. 012-05 SUBJECT : Philippine International Trading Corporation (1) WHEREAS, the Philippine International Trading Corporation (PITC), applied for tax subsidy to cover the duties due on its importation of chicken leg quarters pursuant to the 2005 Special Meat Importation Project of the Department of Agriculture for the primary purpose of stabilizing the price of chicken meat particularly during the Christmas holiday season; WHEREAS, the Board believes that to ensure price stabilization, an effective and efficient system of price monitoring has to be set up on a comprehensive basis covering all levels of chicken meat distribution and that without this system price stabilization may not be really achieved; WHEREAS, the proposed volume of importation (1,000 metric tons) is not sufficient to affect chicken meat market dynamics, specifically price setting; WHEREAS, the cash and investment balance of the PITC is sufficient to answer for the duties due on its importation of chicken leg quarters; WHEREAS, the FIRB notes that for transparency reason, it is better that actual payment of duties due be made to reflect the real cost of price stabilization on the part of the government; NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, to deny the application for tax subsidy of the PITC. FOR THE FIRB: (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat Reference: Joint FIRB-Technical Committee Meeting dated December 7, 2005