Definitions Relevant to Tariffication
- Agricultural products: as defined under PD No. 1464.
- Applied rate: actual customs duty rate collected.
- Bound rate: maximum tariff committed to WTO.
- In-Quota Tariff Rate: tariff for minimum access volumes under WTO commitments.
- Minimum Access Volume (MAV): volume allowed for low tariff import under WTO.
- Quantitative Import Restrictions: non-tariff limits like import quotas and licensing.
- Tariff: tax on imported goods to protect local industries.
- Tariffication: replacing quantitative restrictions with tariffs.
Repeal of Existing Quantitative Import Restriction Laws
- Repealed laws include RA 1296 (import ban on certain vegetables), RA 2712 (ban on coffee importation), P.D. 1297 (ruminant importation), among others.
- All provisions allowing government agencies to impose QRIs on agricultural products, except rice, are repealed.
Regulatory Framework for Rice Importation
- National Grains Authority may regulate rice importation, issue licenses, collect fees to align import price with domestic prices.
- Importation of rice requires certification of shortage or critical demand-supply gap.
- WTO Minimum Access Volume rice imports are exempted from certification.
- The Authority manages import quotas and pricing, with government subsidies if applicable.
Imposition of Tariffs and MAV Adjustments
- Maximum bound WTO tariff rates replace QRIs on agricultural products except rice.
- The President shall implement tariffs from 1996 to 2000 according to WTO commitments.
- The President may propose MAV revisions during shortages or price shocks; failure of Congress to act within 15 days results in automatic approval.
Mechanism to Implement Minimum Access Volume
- A transparent, equitable MAV allocation system with minimal government intervention is mandated.
- This mechanism must consider geographic needs and not impose costs unfairly on importers or consumers.
- A Cabinet Committee with relevant agencies and stakeholder consultation is tasked to propose the mechanism to Congress within 60 days.
Agricultural Competitiveness Enhancement Fund (ACEF)
- ACEF is created to finance agricultural sector support from tariff revenues on MAV imports.
- Funds support irrigation, farm roads, post-harvest facilities, credit, R&D, marketing infrastructure, information, retraining, and extension services.
- Fund proceeds go to the General Fund but are earmarked by Congress for agriculture.
- The fund's use is periodically reviewed by legislative committees.
- The Fund has a 9-year lifespan; remaining balance reverts to the General Fund afterward.
Repealing Clause
- All inconsistent laws, decrees, executive orders, rules, and regulations are repealed or modified to conform with this Act.
Separability Clause
- If any provision is declared unconstitutional, other provisions remain valid and enforceable.
Effectivity of the Act
- The Act takes effect 30 days after publication in the Official Gazette or two newspapers of general circulation.