Import Duty Incentives for Fertilizer Importations

The import duty incentive is granted pursuant to Section 12 of the General Appropriations Act of 1996, Republic Act No. 8174.
The grant of release of fertilizer importations without prepayment of customs duties and other charges is linked to DOF-DBM Joint Circular No. 2-91.
The Department of Finance, through its Secretary Roberto F. de Ocampo, approved the release through a letter dated March 25, 1997.
The Order ties the incentive to fertilizer importations connected to DA programs geared toward increased food production and food security.

The incentive covers all fertilizer importations made in support of the Gintong Ani Program and other related programs of the Department of Agriculture.
The covered programs must be geared toward increased food production and achieving food security.
Eligible importers are entitled to an import duty incentive under the automatic appropriations provision of Republic Act No. 8174.
The incentive is tied to fertilizer importations for use under DA-related food security and production programs.

To avail of the incentive, all eligible fertilizer importers must indicate DA as consignee in all pertinent importation documents.
Eligibility to the incentive depends on proper documentation reflected through the DA consignee designation in the importation paperwork.
Endorsements supporting availment are processed through the prescribed DA signatories and routing to the Department of Finance.

Endorsements submitted to the Department of Finance for availment of the import duty incentive must be signed by the Secretary of the Department of Agriculture.
If the Secretary is absent, endorsements must be signed by the Undersecretary for Field Operations, Domingo F. Panganiban.
The endorsement signature requirement applies specifically to all endorsements used for availment of the incentive with the Department of Finance.

The Fertilizer and Pesticide Authority (FPA) must be furnished copies of all endorsements and other related documents for monitoring and record purposes.
The FPA assists DA in implementing the import duty incentive program and performs the following functions:
- Receive, evaluate, and process relevant import documents for endorsement/signature of the Secretary of Agriculture or the Undersecretary for Field Operations.
- For budgetary purposes, prepare an estimate of allocation for the incentive program through import projection from importers for a particular period.
- Prepare the corresponding endorsement to the Department of Finance, a Certificate of Undertaking, and a Certificate of Official Importation for the respective shipment/application, and forward these to the Secretary of Agriculture for consideration and approval.
- If requested, advise DA whether a particular fertilizer import application is relevant to the food security program of DA.
- Designate an official liaison officer responsible for transmittal to and from DA and other concerned agencies for documents related to the importation of fertilizer.
- Collect appropriate processing fees for each tax incentive application.

Fertilizer importers must first prepare importation documents with DA indicated as consignee to qualify for the incentive processing pathway.
The FPA processes relevant import documents and prepares the required papers for endorsement and approval.
The FPA forwards the endorsement package, including the required certificates, to the Secretary of Agriculture for consideration and approval.
Approved endorsements are then transmitted to the Department of Finance for availment of the import duty incentive under Republic Act No. 8174 (Section 12).