Rice tariff collections surpass P10 billion target

MANILA, Philippines — Tariffs collected by the government from rice imports have exceeded the P10 billion target as of mid-July even as trade volumes declined amid the pandemic, the Bureau of Customs (BOC) said yesterday.

In a statement, BOC said rice tariff collections have reached P10.728 billion from January to July 17, 2020, eight percent higher than the P9.936 billion recorded in the same period last year.

The agency has also surpassed its annual rice tariff collection goal of P10 billion, which will be remitted to the Rice Competitiveness Enhancement Fund (RCEF) pursuant to the Rice Tariffication Law.

According to the BOC, the increase in collections happened even as the volume of imported rice dropped 24.6 percent year-on-year to 1.65 million metric tons.

“The increase in rice tariff collection can be attributed to the BOC’s continuous effort to protect government revenue and ensure correct valuation of goods,” the bureau 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,” it added.

Republic Act 11203 or the Rice Tariffication Law eased the importation of rice in the country by imposing tariffs in lieu of quantitative restrictions.

The law also provides the creation of the P10 billion RCEF, which will be used for programs to boost the productivity and global competitiveness of Filipino rice farmers.

Specifically, P5 billion of the fund will go to the Philippine Center for Postharvest Development and Mechanization (PhilMech) for the provision of post-harvest equipment to farmers; P3 billion to the Philippine Rice Research Institute for the development and distribution of seeds; P1 billion for the provision of credit; and another P1 billion for the training of farmers.

Last year, the BOC collected a total of P12.3 billion in revenues under the law, as private traders imported 2.03 million metric tons of rice.