St.

Paul University Surigao

St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

GINO, Ma. Carmela D. International Business and Trade

BSAIS – 201 Long Quiz #1
Analysis on the impact of the An Act Liberalizing the Importation, Exportation and Trading of
Rice, Lifting for the Purpose the Quantitative Import Restriction on Rice (RA 11203) on the
Supply, Price, and Demand for rice in the Philippines.

An Act Liberalizing the Importation, Exportation and Trading of Rice, Lifting for the Purpose the
Quantitative Import Restriction on Rice or also known as The Rice Liberalization Act or Republic Act
No. 11203 was signed by Pres. Rodrigo Roa Duterte and became effective on Feb 14, 2019. This law
aims to impose general tariff – 35%-48% Tariff on rice coming from ASEAN Countries and 50% Tariffs
for Non-ASEAN Countries and removal of import restrictions. This law states that the NFA will not be
able to give the rights to provide permits or licenses to the rice importers. It also states that all rice
importers should secure sanitary and phytosanitary permits or clearance from Bureau of Plant Industry
prior to importation. Moreover, there is also a creation of rice enhancement competitiveness fund. It
means that there is a P10 Billion appropriation coming from the collection of the tariff will be used to
support the farmers. 50% will be given to the farmers for the rice cooperatives and for the modernization
and equipment of the rice farmers. 30% is for the development, propagation and promotion of the rice
seeds. 10% will be made for the availability of Landbank for the famers for loans that can be grant to
them, this loans is payable for 8 years with 0% interest. And the remaining 10% is provided to the
farmers for their training in skills to be efficient and productive of their farming.
The Rice Tariffication Law implemented to stop corruption because the government found out that there
is a corruption happening on the side of the NFA. They had an agreement that they will allow other
countries to import rice but with a condition of in every import on each sack of rice there is a additional
price that they put on resulting to more money they can get. Another is, there is an issue that there is a
shortage of the supply of rice resulting to panic buying of people and they only get low quality rice.
Well in fact, there is no shortage. They hoarding rice cartels and they said that they are lacked of supply
of rice. They implemented this law to ensure that the rice that is imported to us is better quality of rice.
Next is, to control the volume of the imported rice they implemented 35%-48% tariff so that the
imported rice is expensive than the local rice. It means that the farmers will not be affected to that and
they will still be able to farm.
Rice Tariffication Law is the solution to the problems of our farmers. It is also the solution to the
modernization of the Filipino farmers, low production cost of palay, cash assistance, better quality of
Philippine rice and high price of rice and low inflation rate. We do not need to increase the price of rice.
The way to have the Filipinos an access to cheap rice while the farmers get profit from it is the Rice
Tariffication. They money that may get from it will help farm to market roads, modernized farming
equipment, loan assistance for farmers, better quality of rice seeds or palay/better quality of rice and
more irrigations.