The Bureau of Customs (BOC) collected a total of P15.494 billion in tariff revenue from 2.38 million metric tons (MMT) of rice imported by private traders in 2020.
Citing a report from Customs Commissioner Rey Leonardo Guerrero in a recent Department of Finance Executive Committee meeting, the finance department said in a statement that the BOC “improved” its valuation system for rice imports.
In his report to Finance Secretary Carlos G. Dominguez III during the meeting, Guerrero said the tariffied value of the grain rose 7 percent on average in 2020 compared to the previous year.
From an average of P18,980 per metric ton (MT) in 2019, this has increased to P20,320 per MT in 2020, he said.
The Customs chief attributed the improvement in valuation to BOC paying attention to the classification of quantity and weight of rice stocks imported by private traders under the Rice Tariffication Law (RTL).
Guerrero also said there was a 51.7-percent increase in revenue from rice imports in December to P885.05 million from P583.58 million in the same month in 2019.
In 2019, Customs collected P12.3 billion in rice tariffs from 2.03 million metric tons of rice imports from March to December following the passage of the RTL, which paved the way for easier importation of rice.
Another P9.28 billion was collected from 1.1 million metric tons of rice imported prior to the March 2019 implementation of the RTL.
Tariffs collected from rice imports are used to fund the six-year P10-billion annual Rice Competitiveness Enhancement Fund (RCEF) to bankroll programs that would provide farmers with high-quality seeds, machinery, easier credit access, and relevant training to improve their productivity and become competitive.
Should annual tariff revenues from rice imports exceed P10 billion, the RTL indicates that these shall be earmarked by Congress—and included in the national budget of the following year—for financial assistance to palay farmers, titling of agricultural lands, an expanded crop insurance program on rice, and crop diversification.
In September last year, 47 rice importers were told to pay P1.417 billion after the BOC found them liable for undervaluing their rice shipments from March to June 2019.
The BusinessMirror also earlier reported that Customs has so far collected P30.908 million of the P1.4-billion total charges, equivalent to 2.2 percent.
Customs Assistant Commissioner Vincent Philip Maronilla said the amount was paid by 24 rice importers, 14 of which are farmers’ cooperatives.
Other rice importers have either filed motions for reconsideration to avert paying charges or have yet to avail of any legal remedy.
For rice imports in January to June 2020, the BOC earlier said 60 rice importers have already been selected for the post-clearance audit.
Guerrero has since said they expect to collect at least an additional P1 billion from undervalued shipments in 2020.