Rice import revenues up 58% in January

MANILA, Philippines — Government revenues from tariff imposed on imported rice grew by 58 percent in January amid an improvement in the Customs valuation system, according to the Department of Finance (DOF).

Based on the report by  Customs Commissioner Rey Leonardo Guerrero to Finance Secretary Carlos Dominguez, P2.04 billion in tariffs from rice imports were collected in January, an increase from P1.29 billion collected in January last year.

These were from imports of 287,957 metric tons (MT) of rice, up by 29 percent from P223,278 MT brought into the country last year.

Year-on-year, the average valuation of rice imports improved by 11.5 percent to P20,262 per metric ton (MT) in January from P18, 177 per MT in the same period last year.

Dominguez told the Bureau of Customs (BOC) earlier to keep an eye on private traders who may under declare imports to avoid the payment of appropriate tariffs.

DOF said improvements made by the BOC  to help ensure the proper classification, quantity and weight of rice stocks brought into the country under the Rice Tariffication Law (RTL) led to the increase in the average value of imported rice.

All import duties collected from rice imports under the RTL go to the P10-billion Rice Competitiveness Enhancement Fund (RCEF) used to finance programs meant to increase the competitiveness of rice farmers.

Through the fund, rice producers will be provided access to farm machinery and equipment, high-yields seeds, cheap credit and skills training programs on farm mechanization and modern farming techniques.

Annual tariff revenues from rice imports in excess of P10 billion shall be earmarked by   Congress – and included in the national budget of the following year – for financial assistance to rice farmers, titling of agricultural lands, an expanded crop insurance program on rice, and crop diversification programs.