The year-to-date tariffs collected from imported rice already breached P10 billion as of mid-July, ensuring next year’s fund for farm modernization being set aside under the Rice Tariffication Law.
In a statement Friday, the Bureau of Customs (BOC) said collections from the import duties slapped on rice from Jan. 1 to July 17 amounted to P10.7 billion.
The Rice Tariffication Law or Republic Act No. 11203 mandated the earmarking of P10 billion yearly for the Rice Competitiveness Enhancement Fund, which is aimed at modernizing the rice sector, while the excess will be allocated to farmers badly hit by the import surge due to liberalized trade.
The BOC said year-to-date collection exceeded by 8 percent the P9.9-billion take a year ago even as rice import volume slid 24.6 percent year-on-year to 1.65 million metric tons.
BOC Assistant Commissioner Vincent Philip C. Maronilla explained that the lower rice importation to date was on the back of “initial hesitation of some countries that export rice to withhold the volume exported due to possible [supply] effects of COVID-19 on their respective domestic markets.”
Despite smaller import volume, rice tariff collections rose due to “the BOC’s continuous effort to protect government revenue and ensure correct valuation of goods,” he said.
“The BOC consistently conducts close monitoring of the declared value on rice importations in view of its strict adherence to global published prices for rice, which serves as a guide when the veracity of the declared values is under dispute,” he added.
Since last year, RA 11203 slapped the following levy on imported rice: 35 percent if from Asean; 40 percent if within the minimum access volume (MAV) of 350,000 MT and from countries outside Asean, and 180 percent if above the MAV and coming from a non-Asean country.