National Food Authority (2)

December 11, 2012 FIRB RESOLUTION NO. 015-12 SUBJECT MATTER : 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; caTIDE 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 FIRB already approved the NFA's tax subsidy in the amount of PhP4,853,314,400.00 to cover the NFA's duty obligation under the Private Sector Financed (PSF) rice importation program for 2012 [500,000 metric tons (MT)], per FIRB Resolution No. 1-12; WHEREAS, the NFA applied for additional tax subsidy in the amount of PhP1,307,916,559.00 to cover its unsettled duties due on its three hundred nineteen (319) shipments of rice with billings from the BOC covering 153,405.61 MT of rice importations made under its 2011 PSF rice importation program; WHEREAS, the NFA also applied for additional tax subsidy in the amount of PhP431,668,027.00 to cover its unsettled duties due on its four (4) shipments of rice with billings from the BOC covering 48,550 MT of rice importations made under its 2011 regular rice importation; 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 in the amount of ONE BILLION SEVEN HUNDRED THIRTY NINE MILLION FIVE HUNDRED EIGHTY FOUR THOUSAND FIVE HUNDRED EIGHTY SIX PESOS (PhP1,739,584,586.00) only, broken down as follows: PhP1,307,946,559.00 representing the duties due on its three hundred nineteen (319) shipments of rice (153,405.61 MT) which is part of its PSF rice importation program for 2011 and PhP431,668,027.00 representing the duties due on its four (4) shipments of rice (48,550 MT) which is part of its regular rice importations for 2011: Provided, that the Certificate of Entitlement to Subsidy (CES) shall be limited only to the amount of PhP1,739,584,586.00 only, representing duties due on the three hundred twenty three (323) shipments of rice with billings from the BOC: Provided further , that such availment shall be in accordance with the terms and conditions of Section 13 of the 2012 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. EIDTAa (SGD.) JEREMIAS N. PAUL, JR. Undersecretary Department of Finance Presiding Officer-FIRB