Authorizing NFA/FTI and PITC to Intervene in the Stabilization of the Supply and Price of Basic Items

October 15, 2009

EXECUTIVE ORDER NO. 834

AUTHORIZING THE NATIONAL FOOD AUTHORITY/FOOD TERMINAL INCORPORATED AND THE PHILIPPINE INTERNATIONAL TRADING CORPORATION TO INTERVENE IN THE STABILIZATION OF THE SUPPLY AND PRICE OF BASIC ITEMS

WHEREAS, the government is committed to pursue a policy of food security, especially for the benefit of the less fortunate, disadvantaged and marginalized sectors of the country; AcISTE

WHEREAS, the current tight economic situation, aggravated by the destructive effects of typhoons that hit the country, has significantly lessened the underprivileged sector's access to basic food;

WHEREAS, there is a need to address the basic needs of the less fortunate sectors, especially those in the depressed areas, to assure their continuous access to basic food items;

WHEREAS, under Section 3 of Executive Order No. 1028 Series of 1985, "the President may, for stabilization purposes, authorize the intervention by the appropriate government entities in the trading of other food items if so warranted by conditions as may exist from time to time";

WHEREAS, the National Food Authority, Food Terminal Incorporated and the Philippine International Trading Corporation, considering their capability and experience in the marketing of grains and non-grain commodities, are the most appropriate government agencies to intervene in the stabilization of basic food items;

WHEREAS, in times of national emergency or calamity, the welfare of the people becomes the supreme law.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Intervention by the National Food Authority Food Terminal Incorporated and the Philippine International Trading Corporation. — The National Food Authority Food (NFA), Food Terminal Incorporated (FTI) and the Philippine International Trading Corporation (PITC), are hereby authorized to include in their commodity coverage basic food items other than staple cereals, which they may deem necessary to stabilize the country's basic food commodity supply and prices.

SECTION 2. Funding. — For this purpose, the NFA, FTI and PITC, thru their respective boards or council, are authorized to use their corporate funds, manpower and other facilities, government-guaranteed credit lines and supplemental government support, as they may deem necessary.

SECTION 3. Nature of Funds. — All disbursements as well as administrative and operational expenses incurred by virtue hereof shall be treated as a Special Projects Account subject to the usual accounting and auditing rules and regulations. ICcaST

SECTION 4. Tax Expenditure Subsidy Scheme. — All importation undertaken pursuant to the provisions of the herein Executive Order shall be eligible for application of the Tax Expenditure Subsidy scheme.

SECTION 5. Minimum Access Volume. — Outstanding volumes not allocated under the Minimum Access Volume (MAV) pertaining to pork and/or chicken, shall be distributed to the private sector under guidelines and procedures promulgated under the existing rules governing the implementation of the country's minimum access commitments.

SECTION 6. Special Safeguard (SSG) Duties. — Special Safeguard Duties on chicken meat and/or products may be lifted to encourage private sector importation under guidelines and procedures to be released by the Secretary of Agriculture and the Secretary of Finance/Bureau of Customs.

SECTION 7. Inter-Agency Support. — All agencies of the National Government, particularly but not limited to, the Department of Trade and Industry (DTI), Department of Finance (DOF), Department of Budget and Management (DBM), Department of Justice (DOJ), and the Office of the Government Corporate Counsel (OGCC), are enjoined to extend full support to the Department of Agriculture for the implementation of the herein Executive Order.

SECTION 8. Volume of Importation. — The Secretary of Agriculture is hereby authorized to determine the reasonable volume of pork and/or chicken that will be imported within the purview of this Executive Order.

SECTION 9. Effectivity. — This Executive Order shall take effect immediately and shall remain valid until December 31, 2009.

DONE in the City of Manila, this 15th day of October, in the year of Our Lord, Two Thousand and Nine. aIcCTA