Customs collects P5.9-B in taxes from liberalized rice imports

July 4, 2019

  The government has so far collected P5.9 billion in tariffs from some 1.43 million metric tons (MT) of rice stocks imported by private traders, following the enactment of a law in March that liberalized the importation of the grain, preliminary data from the Bureau of Customs (BOC) showed.  

  A report to Finance Secretary Carlos Dominguez III by Customs Commissioner Rey Leonardo Guerrero revealed that the BOC collected the highest amount of rice import tariffs from the Subic Bay port at P1.37 billion. 

  The Port of Manila collected P978.51 million in tariffs, followed by the Manila International Container Port with P942.76 million, said Guerrero during a recent Department of Finance (DOF) Executive Committee meeting. 

  The Port of Cagayan de Oro collected P754.13 million in tariffs from rice imports, while the Port of Davao collected P703.93 million, preliminary BOC data show.  

  Republic Act (RA) No.  11203 or the Rice Liberalization Act was signed and approved by President Duterte last February 14. 

  Dominguez has described the rice liberalization law on the shift from quantitative restrictions (QRs) to tariffs on rice imports as a “proud” accomplishment of the Duterte presidency and the DOF, given that it took more than 30 years under various administrations to get the Congress to approve this game-changing reform. 

  Liberalizing rice imports, he said, will not only make quality rice more affordable and accessible to Filipino families, but will also lower the country’s inflation rate, revolutionize the agriculture sector and help farmers become more productive and competitive in the global economy.

  Dominguez said rice tariffication has proved to be challenging because it was “a politically difficult reform to pass."

  RA 11203 created the P10-billion Rice Competitiveness Enhancement Fund (RCEF) to help palay growers and their farmers' cooperatives transition to a new rice regime. DMS