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Philippines: Rice tariff collection grows by 14%
MANILA, Philippines — Tariff collected from rice imports grew by 14 percent to more than P8 billion in the five months to May, closing in on the yearly P10-billion target for the Rice Competitiveness Enhancement Fund (RCEF) intended for palay farmers.
In a report, the Bureau of Customs (BOC) said revenue from rice imports went up to P8.35 billion in the first five months, from P7.32 billion during the same period in 2021.
Customs deputy commissioner Edward James Dy-Buco said import volume also spiked by 37 percent to 1.43 million metric tons (MT), from P1.04 million MT, on an annual basis.
Dy-Buco said the BOC managed to keep its tariff earnings up despite the decline in world prices of imported rice. The value of rice imports decreased by 16 percent to P16,712 per MT, even as rice prices were projected to go up due to recovering demand from Asian economies.
For May alone, Dy-Buco said tariff collection from imported rice jumped by three percent to P1.7 billion. During the month, rice traders grew their shipments by 19 percent to 290,979 MT.
From June to December, the BOC only needs to collect P1.65 billion in tariff to deliver the P10 billion worth of annual budget required by the RCEF.
The RCEF receives an allocation of P10 billion every year that agriculture authorities are tasked to use for programs and projects improving the output of rice farmers.
Under the law, half of the funding at P5 billion goes to the Philippine Center for Postharvest and Mechanization for the purchase of farm equipment.
Also, the RCEF injects P3 billion into the Philippine Rice Research Institute for the development, propagation and promotion of domestic seeds to be distributed to palay farmers. Further, it puts P1 billion in state-run banks to sustain a loan facility for rice cooperatives and another P1 billion in several agencies to develop modules on new farming techniques and rice crop production.
Dy-Buco said the BOC has brought in P5.8 billion in duties from the importation of pork products as of May 31. In total, the government recorded a net gain of P600 million against the forgone revenue of P5.2 billion from lowered tariff on meat imports.
In May, President Duterte signed an executive order (EO) extending the reduced duties on pork to 15 percent within the quota and 25 percent outside of the quota.
In approving the EO, the President said he wants to mitigate the impact of supply disruptions as a consequence of Russia’s invasion of Ukraine.
Source: https://www.philstar.com/business/2022/06/28/2191301/rice-tariff-collection-grows-14