Philippine Deposit Insurance Corporation (2)

November 23, 2009 FIRB RESOLUTION NO. 020-09 SUBJECT MATTER : Philippine Deposit Insurance Corporation (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 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); WHEREAS, the FIRB already approved the amount of P29,938,757,317.50 to cover the NFA's duty obligation for its rice and corn importations for 2009 per FIRB Resolution No. 4-09, broken down as follows: P20,662,917,187.50 corresponding to its regular rice importations, P7,945,087,500 corresponding to the additional rice importation by the private sector and P1,330,732,500.00 corresponding to the private sector's corn importations; WHEREAS, the NFA applied for additional tax subsidy in the amount of P714,807,430.00 corresponding to the additional importation of 75,000 MT of rice for 2009 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 rice buffer stock requirement for 2009; 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 SEVEN HUNDRED THREE MILLION NINE HUNDRED NINETY FOUR THOUSAND ONE HUNDRED SIXTY FIVE PESOS (P703,994,165.00) only, representing duties due on 25 shipments of rice with billings from conditions of the Rules and Regulations to Implement the Subsidy Provision under Executive Order No. 93. EHCcIT 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.) REYNALDO V. UMALI Deputy Commissioner Bureau of Customs (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat National Tax Research Center (SGD.) GIL S. BELTRAN Undersecretary of Finance Presiding Officer-FIRB