Question & AnswerQ&A (IRR of Republic Act No. 11203)
The policy is to ensure food security and to make the country's agricultural sector viable, efficient and globally competitive by adopting the use of tariffs instead of non-tariff import restrictions to protect local producers of agricultural products.
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.
Several functions including the institution of remaining regulatory powers like licensing, import/export regulation, inspection, seizure of hoarded commodities, and enforcement powers under Section 6(a) of Presidential Decree No. 4, such as licensing warehouses, supervising traders, and imposing penalties, were repealed to liberalize importation and trade of rice.
BPI is responsible for issuing the Sanitary and Phytosanitary Import Clearance (SPSIC) for rice, ensuring compliance with food safety and phytosanitary requirements without imposing volume or timing restrictions, and acting as the food safety regulatory agency for imported and domestic rice.
The tariff schedule includes the application of the in-quota tariff rate on the Minimum Access Volume (MAV), the ASEAN Trade in Goods Agreement (ATIGA) tariff rate for rice originating from ASEAN countries, and an out-quota tariff rate of 180% or the calculated tariff equivalent for rice imports from non-ASEAN WTO members.
The President may adjust import duty rates up to the bound limits committed under WTO and ATIGA, especially when Congress is not in session; may impose lower tariffs for a limited period or volume to address imminent shortages; and override certain tariff provisions if out-quota rates exceed 100%, all subject to conditions.
The RCEF is a special fund consisting of an annual appropriation of Ten billion pesos for six years from the enactment of the Act, automatically credited to a Special Account in the National Treasury, and used to support rice competitiveness programs such as farm machinery, seed development, credit assistance, and extension services.
The MAV is the volume of rice allowed to be imported at lower tariff rates under WTO commitments, set at 350,000 metric tons for rice, and allocated through an equitable and transparent mechanism including auctions, managed by the MAV Management Committee.
The NFA retains the role of maintaining and managing the rice buffer stock sourced solely from local farmers to ensure food security and to support emergency and disaster relief operations.
Beneficiaries are farmers, farmworkers, their dependents listed in the Registry System for Basic Sectors in Agriculture (RSBSA), and rice cooperatives and associations accredited by the DA. The DA is responsible for validating and updating the masterlist in consultation with stakeholders to ensure only legitimate beneficiaries are included.
Rice importers must register with BPI, apply online for SPSIC, which shall be approved within seven calendar days if complete; failure by BPI to act constitutes automatic approval; SPSIC imposes no import volume or timing restrictions; and imported rice must arrive before SPSIC expiration.
It is a safeguard duty imposed to protect the Philippine rice industry from sudden or extreme price fluctuations, implemented in accordance with the Safeguard Measures Act (RA No. 8800) and its IRR, monitored by the DA.
A transition period of up to sixty (60) days was provided after IRR effectivity to allow the NFA to restructure and shift from its regulatory powers to its new role managing buffer stock and ensuring financial stability.
The tariff equivalent is determined by the Tariff Commission and approved by the National Economic Development Authority (NEDA) Board within forty-five days upon the Act's effectivity, reflecting the protection previously provided under quantitative restrictions.
A Program Steering Committee oversees implementation, regular financial and budget reports are submitted to the DBM and COA, periodic evaluations including third-party reviews are conducted, impact monitoring systems are established, and the Congressional Oversight Committee reviews the fund every six years.