Food Terminal Incorporated (1)

October 2, 2009 FIRB RESOLUTION NO. 019-09 SUBJECT MATTER : Food Terminal Incorporated (1) WHEREAS, the Food Terminal Incorporated (FTI) is mandated by Presidential Proclamation No. 347 to operate a general market for producers, manufacturers and farmers covering among other things buying, selling, trading and dealing in wholesale activities; WHEREAS, in April 1980, by virtue of Letter of Instructions No. 1013, the FTI was classified as a government owned and/or controlled corporation and became a major subsidiary of the National Food Authority (NFA) to further strengthen its position in the integrated growth and development of the food industry; WHEREAS, the FTI is also mandated to establish a linkage with the stakeholders of the food industry with the primary objective of complementing its capability to stabilize prices of basic commodities and to assure continuous and adequate food supply in the country; WHEREAS, the country has been experiencing a low supply of hog due to the effect of hog-related diseases, the scare of swine flu and Ebola Reston virus, high cost of production inputs that can affect the production of hog/pork for the last quarter of 2009; WHEREAS, there is a need to stabilize the price and supply of pork commodities; WHEREAS, to achieve these objectives, the Department of Agriculture through the FTI, has been authorized to import 20,000 Metric Tons of pork for the purpose of stabilizing the supply and price of pork, in the process incurring duty obligations thereon to the Bureau of Customs (BOC); WHEREAS, the FTI applied for tax subsidy in the amount of P665,165,957.00 corresponding to its 2009 pork importations as payment of its duty obligations and if not acted upon favorably by FIRB would have an adverse impact on its financial position as duties would form part of FTI's operating expenses; WHEREAS, the provision of tax subsidy to answer for the duty obligations on the pork importation of the private sector is likely to encourage the latter to help address the shortfall in overall supply of pork in the country; AHCETa WHEREAS, the grant of tax subsidy to the subject pork importation will help the government to immediately stabilize the price and supply of pork; NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to approve the application for tax subsidy of the FTI corresponding to its 20,000 MT of pork importations for 2009 in the amount of SIX HUNDRED SIXTY FIVE MILLION ONE HUNDRED SIXTY FIVE THOUSAND NINE HUNDRED FIFTY SEVEN PESOS (P665,165,957.00) only. Provided, that the corresponding Certificate of Entitlement to Subsidy (CES) shall be issued only upon the submission by the FTI to the FIRB of the required billings and/or documents evidencing the importations with a certification from the FTI that the volume covered by said billings is part of the pork importation authorized by the Department of Agriculture under the Private Sector Financed Pork Importation Program: Provided finally, that such availment shall be in accordance with the terms and conditions of Section 13 of the 2009 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. GIL P. MONTALBO Director Department of Budget and Management (SGD.) REYNALDO V. UMALI Deputy Commissioner Bureau of Customs (SGD.) JAMES H. ROLDAN Assistant Commissioner Bureau of Internal Revenue (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat National Tax Research Center (SGD.) ELMER C. HERNANDEZ Undersecretary Department of Trade and Industry (SGD.) MARGARITA R. SONGCO Deputy Director-General National Economic and Development Authority (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer-FIRB