Detail

Philippines

Rice

All

14/02/2019

Trade

Import quota, import tariff, export restrictions, government procurement, stock-holding policy

Signed Republic Act 11203 into law, replacing quantitative restrictions on rice imports with tariffs, among other measures. The law reverts Minimum Access Volumes (MAV) import commitments under the World Trade Organization (WTO) to their 2012 level of 350 000 tonnes, with in-quota and out-of-quota tariffs on rice originated in Association of Southeast Asian Nations (ASEAN) members set at 35 percent, while 40 percent and 180 percent rates are to apply for in-quota and out-of-quota imports from non-ASEAN members, respectively. MAV import quotas are to be administered with the least government intervention, based on requirements of geographical areas and without entailing any costs to importers or end users of the product. While the law allows for the instatement of safeguard measures on rice imports to protect the local industry from sudden or extreme price fluctuations, the President is empowered to adjust import duties up to WTO and ASEAN Trade in Goods Agreement (ATIGA) bound rates, or to lower them for a limited period and volume, when Congress is not in session. The Act migrates the food safety regulatory functions previously entrusted to the National Food Authority (NFA) to the Bureau of Plant Industry, while the NFA is tasked with maintaining sufficient rice buffer stocks, to be sourced solely from local farmers. Furthermore, all quantitative restrictions on rice exports are repealed. The Act's Implementing Rules and Regulations are to be issued in 45 days' time, while the Act itself became effective on 5 March 2019.

Exchange rate as of 15 April 2019.