Bank of Canada Rice Import Tariff Collection Raised

The Ministry of Finance (DoF) reported over the weekend that customs duties on rice imports (BoC) had increased to 8.35 billion pesos in the first five months of the year.

The statement said that a 37 percent increase in imports caused the most recent figure to increase by 14 percent from 7.32 billion pesos in the same period last year.

The Treasury Department said the Bank of Canada informed Treasury Secretary Carlos Dominguez 3rd that its import tariffs on rice were collected from 1.43 million metric tons (metric tons) of grain from January 1 to May 2022, up 36. 9 percent more than the 1.04 million tons shipped. for the same period in 2021


Department of Finance building in Malate, Manila. PHOTO FROM THE WEBSITE OF THE DEPARTMENT OF FINANCE

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Deputy Commissioner of Customs Edward James Dai Buko noted that despite the continued decline in the average price of rice in the world market, which fell by 16.3 percent from 19,977 pesos per ton between January and May 2021 to 16,712 pesos per ton . for the same period this year, the bureau was still able to maintain its fees on rice import tariffs.

According to him, “From May 1 to May 31, 2022, the volume of rice imports increased by 18.8 percent to 290,979 tons from 245,033 tons last year, and revenue increased by 3.2 percent to 1.7 billion pesos from 1.65 pesos. billion last year.

The Finance Department emphasized that under Republic Act 11203, often known as the Rice Tariff Law, import duties on rice are paid to the Rice Competitiveness Fund. The law came into force on March 5, 2019.

The proceeds, in excess of the fund of 10 billion pesos, go to the financial aid fund for rice farmers.

The Treasury Department said Dai Buko indicated that, as of May 31, 2022, the Bank of Canada had already collected 5.8 billion pesos in duties on 353 million kilograms (kg) as presidential orders to cut tariffs and increase allowable imports on this product came into force in April last year.

He said 125 million kg of that amount was recycled between January 1 and May 31, up 32% from the 94.93 million kg reported for the same time period in 2021.

Di Buco said the bureau predicted a loss of 5.2 billion pesos due to expected import tariffs on pork shipments between April 9, 2021 and May 31, 2022.

President Rodrigo Duterte issued decrees, effective April 7, 2021, to reduce tariffs on pork imports and increase the amount of meat imports allowed.

The directives were supposed to help curb inflation by increasing the supply of pork and stabilizing domestic retail prices after an outbreak of African swine fever (ASF) crippled domestic pig production.

EO 128, which reduced tariffs on pork imports to 5 percent within the Minimum Access Volume (MAV) and 15 percent outside the MAV for the first three months, went into effect from April 7 to May 14, 2021.

EO 134, which replaced EO 128 and came into effect last May 17, set tariffs on pork imports under the MAV at 10 percent for the first three months and 15 percent for the next nine months.

For imports outside the MAV, tariff rates were set at 20 percent for the first three months and 25 percent for the next nine months.