Question & AnswerQ&A (Republic Act No. 8178)
The title of Republic Act No. 8178 is the "Agricultural Tariffication Act."
The main policy is to make the country's agricultural sector viable, efficient, and globally competitive by replacing quantitative import restrictions on agricultural products, except rice, with tariffs.
Rice is exempted from tariffication and will continue to have quantitative import restrictions.
Agricultural products shall have the same meaning as agricultural products under Chapters 1-24 of Presidential Decree No. 1464, otherwise known as the Tariff and Customs Code of the Philippines, as amended.
Tariffication refers to the lifting of all existing quantitative restrictions such as import quotas or prohibitions imposed on agricultural products and replacing these restrictions with tariffs.
The Act repealed laws imposing quantitative import restrictions on agricultural products (except rice), including Republic Act No. 1296, Republic Act No. 2712, Presidential Decree No. 1297, Section 23 paragraph 10 of Republic Act No. 7607, Section 4 of Republic Act No. 4155, and Presidential Decree No. 1483.
The National Grains Authority has the power to establish rules and regulations governing rice importation, license importers, impose fees, and adjust import volumes upon certification of rice shortage by the Council after consultation with the Office of the President.
The tariffs imposed shall be based on the maximum bound rates committed by the Philippines to the WTO under the Uruguay Round Final Act, with initial and final applied rates consistent with the country's tariff binding commitments.
Minimum Access Volume refers to the volume of a specific agricultural product allowed to be imported with a lower tariff as committed by the Philippines to the WTO under the Uruguay Round Final Act.
It is a fund created to finance support services for the agricultural sector, sourced from proceeds of imports under the Minimum Access Volume. It is earmarked for irrigation, farm-to-market roads, post-harvest facilities, credit, research and development, market infrastructure, extension services, and other assistance measures.
The proposal shall be deemed approved if Congress fails to act within fifteen (15) days from receipt of the proposal.
Yes, quantitative import restrictions on rice remain in effect and are governed separately by the National Grains Authority.
An equitable and transparent mechanism with minimal government intervention should be developed that addresses geographical requirements and does not impose costs on importers or consumers, to be submitted to Congress within 60 days of the Act's effectivity.
The Fund is set for a lifespan of nine (9) years, after which the remaining balance shall revert to the General Fund.
If any provision is declared unconstitutional, the other provisions shall remain valid and unaffected.