Rice import revenues hit P5.67B

Government revenues from tariff imposed on imported rice reached P5.67 billion in January to April 2021, a 3.7-percent increase from P5.46 billion recorded in the same period a year ago, the Department of Finance said on Tuesday.

Based on the report by Customs Commissioner Rey Leonardo Guerrero to Finance Secretary Carlos Dominguez 3rd, a total of 804,360 metric tons (MT) of rice shipments worth P17 billion entered the country, translating a 9.2-percent decline from the 885,645
MT valued at P16.4 billion that were imported during the same period in 2020.

Year-on-year, the average valuation of rice imports improved by 14 percent to P21,096 per
MT during the four-month period as compared P18,508 per MT in 2020.

Guerrero attributed the lower rice import volumes in March and April due to the local harvest season.

Furthermore, he said the value of rice imports fell in April because these were mostly shipments of husked rice, which is of lower value than milled rice varieties.

All import duties collected from rice imports under Republic Act 11203, or the Rice Tariffication Law (RTL) go to the annual P10-billion Rice Competitiveness Enhancement Fund, which will be used to programs on distribution of seeds, fertilizers, farm machineries, and cheap credit and skills training programs on farm mechanization and modern farming techniques for Filipino farmers nationwide.

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

Under the RTL, rice traders are allowed to import as much volume as they want provided that they will pay the necessary tariffs.

The country applies a 35-percent tariff for rice shipments from the Association of Southeast Asian Nations (Asean) member states, 40 percent for in-quota or within the minimum access volume from non-Asean, and 180 percent for out-quota and non-Asean or as calculated by the Tariff Commission.