THE Bureau of Customs (BOC) collected P11.69 billion in tariffs from rice imports as of August 29, lower than its haul in the same period last year as rice import volume sustained its downward trend.
In a report, Customs Commissioner Rey Leonardo B. Guerrero said that revenue collected from rice imports from January to August 29 this year was down by 4.4 percent from P12.22 billion in the comparable period in 2020.
Guerrero said there was a 7.6-percent drop in the rice import volume year-on-year to 1.74 million metric tons (MT) from 1.88 million MT.
Nonetheless, he pointed out that during the period there was a 4.1-percent uptick in the average value of rice imports this year to P20,188 per MT from P19,386 per MT last year “on the back of the bureau’s improved valuation system.”
The BusinessMirror reported last month that the National Economic Development Authority is growing wary of shipment delays affecting the country’s rice imports. But industry players and experts dismissed its possible adverse impact on the country’s supply of the staple. The delays resulted from the global shipping problem arising from lack of vessels and containers as economies were locked down to stem the spread of Covid-19.
Monetary Board Member V. Bruce J. Tolentino also explained that higher domestic palay harvest experienced by the country in the past two semesters led to the reduction of rice imports this year.
An industry source earlier told the BusinessMirror that Covid-19-related problems in exporting countries have slowed down rice exports to the Philippines, worsened by lower domestic staple demand as a result of unemployment and depletion of savings.
Meanwhile, the BOC is also looking into valuation issues on rice shipments from January to June this year.
Guerrero earlier ordered the transaction audit after the bureau noticed that most of the rice imports from Vietnam were declared with values lower than the published prevailing prices for exports from that country.
To recall, President Duterte’s Executive Order (EO) 135 temporarily lowered the Most Favoured Nation (MFN) tariff rates on rice imports to 35 percent from 40 percent (in-quota) and 50 percent (out-quota) for a period of one year.
Malacañang earlier cited a need to lower tariff rates for rice imports to offset the expected 10-percent shortfall in the local supply of rice this year.
Finance Undersecretary Antonette C. Tionko said previously they expected to lose P40.9 million in revenues due to the slash in rice import tariff rates until May 2022. As of August 13, the government has lost P11.39 million for lowering the tariff rates on rice imports since the EO took effect last June.
Tariffs collected from rice imports are used to fund the P10-billion annual Rice Competitiveness Enhancement Fund to bankroll programs that provide farmers with high-quality seeds, machinery, easier credit access and relevant training. This is meant to improve their productivity and become competitive.
Should annual tariff revenues from rice imports exceed P10 billion, the Rice Tariffication Law (Republic Act 11203) mandates earmarking the fund 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.
Last year, the government collected P15.47 billion from 2.38 million MT of rice imports.
In 2019, the rice tariff collection of the Bureau of Customs amounted to P12.3 billion from 2.03 million MT of rice imports from March to December following the passage of RA 11203.