Supplemental Material - Rice Tariffication Law

RA 11203
RICE TARIFFICATION LAW

RICE COMPETITIVENESS ENHANCEMENT FUND
HIGHLIGHTS OF REPUBLIC ACT 11203
• An Act liberalizing the
import and export of rice in the
country.
• Replaced the Quantitative
Restriction (QR) with purely tariff
system.

• Signed by the President on 14 February
2019
• IRR was signed by DA, NEDA, and DBM

on 5 April 2019 and published at the
website of the Official Gazette on 8 April
2019

• Amends the Agricultural Tariffication Act of
1996 (RA8178), which exempts rice from
tariffication since the country is a signatory to
the World Trade Organization (WTO) in 1995.
- QR controls the volume of a traded commodity
- With QR, the government t does not earn revenues
- QR’s removal has been postponed for 22 years to
support rice farmers, but our waiver has expired
last June 2017

- Tariff is more transparent and removes too

much discretion on part of government
- Tariff system allows generation of revenues by

the government revenues to fund/provide support
to farmers.

• To achieve greater food security that would

benefit consumers – more supply at
relatively lower price
Farmers
- Provides protection from the 35% or more tariff
in imports
- Generates funds to develop the rice industry

- Provides the opportunity to earn money from
exports of special variety of rice
- Lower price of rice
Traders
- Greater participation in the rice trading and
marketing with reduced gov’t intervention
Economy
- Lower inflation
- More effective & efficient domestic rice market
Section 3: Removal of NFA Powers
• This section removed 16 Powers of the NFA as
provided in PD 04 or the NFA’s charter.
• These powers include licensing of importers,

inspection of warehouses, imposition of import and
export restrictions, among others.

Section 4: Issuance of SPSIC and transfer
of Food Safety Act functions of
NFA to BPI
• This law provides that all importers of rice should

secure a Sanitary and Phyto Sanitary Import
Clearance (SPSIC) from BPI prior to importation of
rice.

(Cont.) Section 4: Issuance of SPSIC and
transfer of Food Safety
Act (from NFA to BPI)
• Includes a provision of automatic approval of SPSIC
within 7 days if BPI fails to release the clearance
without informing the applicant of any problems on
the documents submitted.
• The Food Safety regulatory function of NFA shall be

transferred to BPI. RICE COMPETITIVENESS ENHANCEMENT FUND
Section 5: Tariffication
• The law replaced the quantitative import restrictions

with tariffs.
• The bound rate shall be notified by the Philippines in
the WTO.

Section 8: Buffer stocking
• The law mandates the NFA to maintain rice buffer
stock sourced from local farmers for emergency
purposes and disaster relief programs (with DSWD
and LGUs)
• NFA to dispose rice stocks before the quality

deteriorates and become unsafe for public
consumption.
Section 11: Minimum Access Volume (MAV)
• Establishment of an equitable and transparent

mechanism for allocating MAV with least government
intervention
• MAV will revert to its 2012 levels at 350,000 MT

Section 13: Rice Competitiveness
Enhancement Fund (RCEF)
• Provides for an annual appropriation of Php 10 B for

the next six years.
• Rice tariffs collected in excess of the Php10 billion
shall also form part of the RCEF.

(Cont.) Section 13: Rice Competitiveness
• The Php10 B, as provided in the Law, is allocated as

follows:
- 50% for Rice farm machine and equipment
(PHilMech)
- 30% for Rice Seed Development, propagation, and
promotion (PhilRice)
• The Php10 billion, as provided in the Law, is allocated

as follows:
- 10% for expanded Rice Credit Assistance (LBP and
DBP)
- 10% for rice extension services (TESDA, PhilRice,
PHilMech, and ATI)
• For the excess of P10 B, the following activities

are included:
- Rice farmer financial assistance
- Titling of agricultural rice lands
- Expanded crop insurance
- Crop diversification program

• Oversight and monitoring RCEF Program steering
committee to oversee and provide policy directions
on the INTEGRATED implementation of the programs
in accordance with the rice roadmap
- Rice Fund Impact Monitoring System to provide
a solid empirical basis in determining impact of
RCEF
- Website to inform the public
- Periodic review assessment
Section 14: Beneficiaries
• The beneficiaries of the Rice Fund shall be

those farmers and farmworkers and their
dependents listed in the Registry System for
Basic Sectors in Agriculture (RSBSA), and rice
cooperatives and associations accredited by
the DA.

Section 15: Roadmap
• The DA together with NEDA, DOF, DBM, DAR,

NIA, TESDA, PCIC, NAPC Farmer Sectoral
Council Representative, and other
government agencies concerned, including
rice farmer representatives shall be given a
maximum of 180 days to issue a rice
roadmap.
Powers of the President
(upon recommendation of NEDA Board and advised by
NFA Council)
• Increase, reduce, revise, or adjust existing rates of

import duty
• Allow importation at a lower applied tariff rate (for a
limited period and/or specified volume in the event of
imminent or forecasted shortage or such other
situation)
(Cont.) Powers of the President
• Direct the DTI and the PITC to expeditiously
participate in the rice industry thru contacts with
private traders
* Special Rice Safeguard – additional tariff/duty on
imported rice when market conditions become
unfavorable.
• Restriction on exportation of rice has been lifted ---
farmers who produce specialty rice can now export
more freely to international markets
THANK YOU

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RA 11203

RICE TARIFFICATION LAW

RICE COMPETITIVENESS ENHANCEMENT FUND

• IRR was signed by DA, NEDA, and DBM

RICE COMPETITIVENESS ENHANCEMENT FUND

RICE COMPETITIVENESS ENHANCEMENT FUND

- Tariff is more transparent and removes too

- Tariff system allows generation of revenues by

RICE COMPETITIVENESS ENHANCEMENT FUND

• To achieve greater food security that would

RICE COMPETITIVENESS ENHANCEMENT FUND

• These powers include licensing of importers,

RICE COMPETITIVENESS ENHANCEMENT FUND

• This law provides that all importers of rice should

RICE COMPETITIVENESS ENHANCEMENT FUND

• The Food Safety regulatory function of NFA shall be

• The law replaced the quantitative import restrictions

RICE COMPETITIVENESS ENHANCEMENT FUND

• NFA to dispose rice stocks before the quality

• Establishment of an equitable and transparent

• MAV will revert to its 2012 levels at 350,000 MT

RICE COMPETITIVENESS ENHANCEMENT FUND

• Provides for an annual appropriation of Php 10 B for

RICE COMPETITIVENESS ENHANCEMENT FUND

• The Php10 B, as provided in the Law, is allocated as

• The Php10 billion, as provided in the Law, is allocated

• For the excess of P10 B, the following activities

RICE COMPETITIVENESS ENHANCEMENT FUND

• The beneficiaries of the Rice Fund shall be

RICE COMPETITIVENESS ENHANCEMENT FUND

• The DA together with NEDA, DOF, DBM, DAR,

• Increase, reduce, revise, or adjust existing rates of

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