National Food Authority (2)

December 20, 2005 FIRB RESOLUTION NO. 013-05 SUBJECT : 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, there is also a need to ensure sufficient supply of corn to meet domestic consumption; WHEREAS, to achieve these objectives, the NFA has resorted to rice and corn importations to augment domestic production, in the process incurring duty obligations thereon to the Bureau of Customs (BOC); WHEREAS, the NFA already paid P5,554,069,953.00 as partial liquidation of its duty obligations to the BOC; WHEREAS, payment of the balance 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 application for tax subsidy of the NFA in the amount of P8,524,188,047.00 only , representing the balance due on its 2005 request for tax subsidy of P14,078,258,000.00 involving 1,660,000 MT of rice importations and 100,000 MT of corn importations: Provided, that the tax subsidy shall be used exclusively for importations made by the NFA only: Provided further , that the issuance of the Certificate of Entitlement to Subsidy (CES) shall be based on actual billings of duties by the BOC as submitted to the FIRB with a certification from the NFA that the volume covered by said billings pertain to the 1,660,000 MT of rice importations and 100,000 MT of corn importations approved 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, 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. (on leave) 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 (SGD.) RAMON G. CUYCO Director Bureau of Customs (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat National Tax Research Center (SGD.) SOLEDAD EMILIA J. CRUZ Director IV Alternate Presiding Officer FIRB