Key Definitions in the Act
- Defines critical terms such as "Agricultural products," "ATIGA Rate," "Bound rate," "Buffer Stock," "In-Quota Tariff Rate," "Out-Quota Tariff Rate," "Minimum Access Volume," "Most Favoured Nation Rate," "Quantitative Import Restrictions," "Rice," and "Tariffication."
- Specifies definitions for terms like "Optimal Level" of rice inventory, "Emergency Situations," "Disaster Relief Programs," "Natural calamities," and "Man-made calamities."
Repeal and Transfer of National Food Authority (NFA) Powers
- Abolishes specific regulatory powers of the NFA effective March 5, 2019, including import licensing, price control, registration, and direct import/export of rice.
- NFA shall cease issuing permits and licenses for importers, warehouse operators, and traders.
- The Department of Agriculture (DA) will issue guidelines for rice trade during a transition period of up to 60 days for restructuring NFA roles.
Sanitary and Phytosanitary Measures for Rice Imports
- All rice importers must secure a Sanitary and Phytosanitary Import Clearance (SPSIC) from the Bureau of Plant Industry (BPI) without volume or timing restrictions.
- Failure of BPI to process SPSIC applications within seven days means automatic approval.
- BPI becomes the food safety regulatory agency for rice, assuming this role from NFA.
Tariffication of Rice Import Restrictions
- Quantitative import restrictions on rice are replaced with tariffs based on WTO commitments.
- In-quota tariff rates, ATIGA rates for ASEAN countries, and out-quota tariff rates for non-ASEAN countries are applied.
- The Tariff Commission calculates tariff equivalents which the National Economic Development Authority (NEDA) Board approves.
Presidential Powers Regarding Tariffs and Importation
- The President can adjust import duty rates within WTO and ATIGA bound rates when Congress is not in session.
- The President can also temporarily allow imports at lower tariffs during shortages or emergency situations.
- These powers can be revoked by Congress.
Trade Negotiation Authority
- The President, based on NEDA and DA recommendations, may negotiate or renegotiate trade commitments on rice internationally.
- The NEDA Board Committee on Tariff and Related Matters manages this process.
Maintenance of Rice Buffer Stock
- NFA shall maintain sufficient rice buffer stocks sourced solely from local farmers.
- Rules on procurement, storage, and distribution of buffer stocks must be promulgated by the NFA Council.
- Monthly reporting on buffer stock levels to be submitted to the NFA Council.
Lifting of Quantitative Export Restrictions on Rice
- All laws and regulations imposing export restrictions on rice are repealed.
- Rice exportation is allowed without volume restrictions.
Special Rice Safeguard
- A special safeguard duty may be imposed to protect the rice industry from sudden or extreme price fluctuations.
- The Department of Agriculture monitors quantities and prices of imported rice for this purpose.
Implementation of Minimum Access Volume (MAV)
- An equitable, transparent mechanism for MAV allocation is established.
- MAV for rice returns to its 2012 level of 350,000 metric tons.
- MAV auctions are implemented by the Bureau of Treasury and Landbank.
Agricultural Competitiveness Enhancement Fund (ACEF)
- The ACEF excludes tariffs collected from rice importations.
- ACEF funds continue to be used for other agricultural products.
Rice Competitiveness Enhancement Fund (RCEF)
- Created with an annual allocation of 10 billion pesos for six years to improve rice industry competitiveness.
- Fund components include rice farm machinery (50%), seed development (30%), credit assistance (10%), and extension services (10%).
- DBM manages fund releases and oversight with accountability and transparency measures.
- Programs under the RCEF are supplementary to existing agricultural programs.
Beneficiaries of the Rice Fund
- Beneficiaries include farmers, farmworkers, and accredited rice cooperatives listed in the Registry System for Basic Sectors in Agriculture (RSBSA).
- DA shall validate and update eligibility lists regularly and coordinate with other agencies for harmonization.
Rice Industry Roadmap
- DA leads formulation of a comprehensive roadmap within 180 days to restructure support for the rice sector.
- Roadmap goals include infrastructure investment, improving farm productivity, strengthening research, environmental sustainability, accessible support services, effective governance, and addressing income loss due to tariffication.
- Periodic reviews to ensure effectiveness and funding alignment with the National Budget.
National Single Window Program
- BOC is tasked with implementing the National Single Window system within 180 days to ensure accurate tariff collection.
- BPI trade system to link with this program for streamlined import clearances.
Final Provisions
- The implementing agencies DA, NEDA, and DBM have authority to update these rules.
- Invalid provisions do not affect the remainder of the IRR.
- Conflicting laws and regulations are repealed or amended.
- The IRR takes immediate effect.