National Food Authority (3)

August 7, 2008 FIRB RESOLUTION NO. 013-08 SUBJECT MATTER : National Food Authority (3) WHEREAS, the National Food Authority (NFA) is mandated to ensure food security and grains supply in the country and stabilize their prices; HCETDS WHEREAS, there is a need to stabilize the price and supply of basic food commodities, particularly rice and corn which are the Filipino staple food items; 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); SCIacA WHEREAS, the FIRB already approved the amount of P22,614,615,170.00 covering the duties of the NFA's 2008 rice importations per FIRB Resolution No. 2-08; WHEREAS, the FIRB also approved the amount of P9,475,987,500.00 covering the duties on the additional importation of rice for 2008 by the private sector, farmers' organizations and all other licensed rice importers per FIRB Resolution No. 3-08; TacADE WHEREAS, the NFA applied for additional tax subsidy in the amount of P17,030,607,000 corresponding to the additional rice importation for 2008 by the NFA; WHEREAS, the provision of tax subsidy to answer for the duty obligations on the additional rice importation is necessary to help address the strong demand and shortfall in overall cereal production versus utilization requirement and help maintain the 30-day rice buffer stock requirement for 2008; ADHaTC 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 application for tax subsidy of the NFA corresponding to the additional rice importation for 2008 in the amount of SEVENTEEN BILLION THIRTY MILLION SIX HUNDRED SEVEN THOUSAND PESOS (P17,030,607,000) only: Provided, that the issuance of 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 2.4 million metric tons of rice authorized by the NFA Council for 2008: Provided finally, that such availment shall be in accordance with the terms and conditions of Section 14 of the 2008 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. CaDEAT (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer FIRB Reference: Joint FIRB-Technical Committee Meeting dated August 7, 2008.