Rice tariffication yields P5.9 B since law’s effectivity

by Mary Grace Padin (The Philippine Star) – Jul 5, 2019

MANILA, Philippines — The government has collected P5.9 billion in rice tariffs since the liberalization of rice imports in March, according to the Department of Finance.

Citing preliminary data from the Bureau of Customs (BOC), the DOF said the private sector has imported 1.43 million metric tons (MMT) of rice since the implementation of the Rice Tariffication Act on March 5, translating to additional government revenues amounting to P5.9 billion from higher rice tariffs.

Broken down, Customs Commissioner Rey Leonardo Guerrero said the Subic Bay port collected the highest amount of rice tariffs with P1.37 billion during the period.

The Port of Manila collected P978.51 million, followed by the Manila International Container Port with P942.76 million, Guerrero said.

About P754.13 million was also raised by the Port of Cagayan De Oro, while another P703.93 million was collected by the Port of Davao.

Republic Act 11203 or the Rice Liberalization Act was signed and approved by President Duterte on Feb. 14, and became effective on March 5.

The law seeks to liberalize the importation of rice imports in the country by imposing tariffs in lieu of quantitative restrictions.

Under the law, a 35-percent tariff will be imposed on rice imported from member-countries of the Association of Southeast Asian Nations (ASEAN).

For non-ASEAN countries, a 40-percent tariff will be imposed if the volume of rice imports is within the 2012 minimum access volume (MAV) level of 350,000 metric tons, and 180 percent if the volume is above MAV.

On top of paying tariffs, rice importers are also required to secure sanitary and phytosanitary import clearances from the Bureau of Plant Industry (BPI) to ensure that imports are free from pests and diseases that could affect public health and local farm production.

The law also provides the creation of the Rice Competitiveness Enhancement Fund (RCEF), which is set at P10 billion annually for six years, for programs to boost the productivity and global competitiveness of Filipino rice farmers.

Of the total P10 billion amount, P5 billion or 50 percent will go to the Philippine Center for Postharvest Development and Mechanization (PhilMech) for the provision of post-harvest equipment to farmers, P3 billion or 30 percent to the Philippine Rice Research Institute for the development and distribution of seeds, P1 billion for the provision of credit and another P1 billion for the training of farmers.

Dominguez has described the Rice Tariffication Law as a “proud” accomplishment of the Duterte Administration, given that it took more than 30 years under various administrations to get the Congress to approve this reform.

Liberalizing rice imports, he said, would not only make quality rice more affordable and accessible to Filipino families, but will also lower the country’s inflation rate, revolutionize the agriculture sector and help farmers become more productive and competitive in the global economy.

He said this measure has made the staple food more affordable to Filipinos, cutting retail prices this summer by P10 per kilo.