Title
Rice Import Liberalization Act
Law
Republic Act No. 11203
Decision Date
Feb 14, 2019
A law in the Philippines aims to promote the viability and competitiveness of the agricultural sector by replacing non-tariff import restrictions with tariffs, while also establishing funds to enhance rice production and support farmers.
A

Questions (MARINA CIRCULAR NO. 2013-04)

To ensure food security and make the agricultural sector viable, efficient, and globally competitive, using tariffs in lieu of non-tariff import restrictions to protect local producers.

As all products classified under HS heading 10.06.

The lifting of quantitative restrictions (e.g., quotas or prohibitions) imposed on agricultural products and replacing them with tariffs.

Among those repealed are specified subparagraphs of Section 6(a) of P.D. No. 4, as well as other laws or provisions prescribing quantitative import restrictions or granting agencies power to impose such restrictions or hindering liberalization of rice importation, exportation, and trading.

It is required solely to ensure food safety; it must not provide for import volume and timing restrictions. If BPI does not release the SPSIC without specifying errors/deficiencies/omissions/additional documentary requirements, the SPSIC is deemed automatically approved within seven (7) days after submission of complete requirements.

The food safety regulatory function of the NFA under Item (i), Section 16 of R.A. No. 10611 is transferred to the Bureau of Plant Industry (BPI).

For minimum access volumes: the in-quota tariff rate under the WTO Agreement on Agriculture; for ASEAN origin: ATIGA rate; for non-ASEAN WTO origin: the higher of 180% or the WTO tariff-equivalent calculation upon expiration of the special treatment waiver, as applicable.

The Tariff Commission determines it, and NEDA Board approves it within forty-five (45) days upon effectivity of the Act.

The President may increase/reduce/revise/adjust applied import duty rates up to the bound rate (including necessary classification changes) but only when Congress is not in session; orders take effect 15 days after publication.

For a limited period and/or specified volume, the President may allow importation at a lower applied tariff rate to address the shortage. The order takes effect immediately and can only be issued when Congress is not in session.

Paragraph 1, Section 1608(a) of the CMTA shall not apply.

Through a Joint Resolution.

Upon recommendation of NEDA and the Department of Agriculture (DA), the President may enter into trade negotiations or renegotiations of Philippine international trade commitments on rice.

Maintain sufficient rice buffer stock, sourced solely from local farmers, pursuant to rules to be promulgated.

Repeals all laws, rules, regulations, guidelines, and issuances imposing quantitative export restrictions on rice; exportation is allowed according to established rules and regulations.

A special safeguard duty imposed to protect the industry from sudden or extreme price fluctuations, imposed in accordance with R.A. No. 8800 (Safeguard Measures Act).

An equitable and transparent, least-government-intervention mechanism must allocate MAV without imposing costs that would detrimentally affect local consumers. For rice, its MAV reverts to its 2012 level of 350,000 metric tons (350,000 MT).

The Rice Competitiveness Enhancement Fund ('Rice Fund'), funded by an annual appropriation of PHP 10,000,000,000 for the next six (6) years after approval of the Act.

The Congressional Oversight Committee on Agricultural and Fisheries Modernization (COCAFM); the increase or decrease in farmers’ incomes is the primary benchmark.

(a) 50% to PHilMech for farm machineries/equipment, (b) 30% to PhilRice for seed development/propagation/promotion, (c) 10% for credit facility managed by LBP and DBP, and (d) 10% for extension services (70% to TESDA; 10% each to ATI, PhilRice, and PHilMech).


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