G/SCM/Q2/PHL/12  
 
22 November  2019 
(19-7983) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
 REPLIES TO QUESTIONS  FROM THE  UNITED STATES1 REGARDING THE  
NEW AND FULL NOTIFIC ATION OF PHILIPPINES2 
The following communication, dated 20 November  2019, is being circulated at the request of the 
delegation of the Philippines . 
 
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The Philippines thanks the United States for its questions  in G/SCM/Q2/PHL/11 dated 
26 August  2019 and provides the following replies . 
SUPPORT TO COMMERCIAL FISHERIES (SECTION 35 OF R EPUBLIC ACT NO.  8550)  
Question 1  
The notification states that the duration of the subsidy under this program is 2005 -2015. 
Is this program still in operation? If so, please provide the duration of the program under 
current law. 
Reply : 
This section was never implemented by the Department of Agriculture since funds were not 
appropriated by Congress for the aforementioned purpose.  
Instead, Executive Order 376 was implemented providing for the exemption from payment of tariff 
and duties for importation of agriculture and fisheries inputs of agriculture and fisheries enterprises 
duly certified by the Department of Agriculture  (DA), granted through the Department of Finance 
(DOF) and the Board of Investment (BOI) for the period of  February 2005 to December 2015. This 
program expired on December 31, 2015.  
Question 2  
The notification states that the duty and tax rebates on fuel consumption "were not 
implemented by the Department of Agriculture since funds were not appropriated to the  
Department for the afore -mentioned purpose". Have funds been appropriated for this 
purpose since 2015, or does the Philippines expect fund to be appropriated in the future?  
Reply : 
No funds were appropriated to the Department of Agriculture for th is purpos e since 2015. Funds for 
future appropriation have not been proposed.  
                                                
1 G/SCM/Q2/PHL/11 . 
2 G/SCM/N/343/ PHL. G/SCM/Q2/PHL/12  
 
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  Question 3  
Can the Philippines provide the amount, or an estimate of the subsidy amount provided 
under this program during the reporting period?  
Reply : 
(This question was addressed in the  reply to Question  2.) 
REGIONAL FISH PORTS , ICE PLANTS AND COLD STORAGES (IPCS) P RESIDENTIAL DECREE 
NO. 977 AS AMENDED BY E XECUTIVE ORDER  772 
Question 4  
The notification states that this is "not a form of subsidy", but rather a "policy of the 
government to promote the development of the fishing industry". Please explain what, if 
any, government support, whether in the form of grants, loans or other types of funding, 
has been provided to support this policy.  
Reply : 
The government promotes the de velopment of fishing industry thr ough the establishment and 
operation of fish markets. This program is provided with funding support for the construction, 
rehabilitation and improvement of fish ports and other fishery post -harvest facilities such as ice 
plants and cold storage . 
The DA -Bureau of Fisheries and Aquatic Resources (BFAR) also provides funding support for the 
technical assistance and capacity building of the fishing sector.  
Question 5 
If no government funding is provided to support this policy, h ow does the government 
"promote the development of the fishing industry and improve efficiency in the handling, 
preserving, marketing and distribution of fish and fishery products," under this program?  
Reply : 
The government promotes the development of fish ing industry thr ough the establishment and 
operation of fish markets. This program is provided with funding support for the construction, 
rehabilitation and improvement of fish ports and other fishery post -harvest facilities such as ice 
plants  and cold sto rage. 
The DA -Bureau of Fisheries and Aquatic Resources (BFAR) also provides funding support for the 
technical assistance and capacity building of the fishing sector.  
Question 6  
What is the duration of this policy (PD977, EO 772)?  
Reply : 
This policy is on-going.  
Question 7 
The notification states that this is "not a form of subsidy". Please explain what, if any, 
government support, whether in the form of grants, loans or other types of funding, has 
been provided to support this policy.  G/SCM/Q2/PHL/12  
 
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  Reply : 
The governm ent promotes the development of fishing industry thr ough the establishment and 
operation of fish markets. This program is provided with funding support for the construction, 
rehabilitation and improvement of fish ports and other fishery post -harvest facili ties such as ice 
plants  and cold storage . 
The DA -Bureau of Fisheries and Aquatic Resources (BFAR) also provides funding support for the 
technical assistance and capacity building of the fishing sector.  
Question 8 
What is the duration of this policy (PD977,  EO 772)?  
Reply : 
This policy is o n-going . 
OTHER PROGRAMS  
Question 9 
Publicly available information indicates the Philippines may maintain support programs 
for the fisheries sector that were not reported in its notification. These are listed below. 
Please explain why these programs were not notified.  
Reply : 
The Philippines thanks the United States for pointing out the programs listed below, which were 
inadvertently missed in the preparation of the notification . Additional information about the 
progra ms are also provided below.  
a. Sea Cage Farming Project ; 
The funding support is directly provided to the Local Government Units (LGUs). The DA -BFAR 
provides funding support for the technical assistance to LGUs and fish farmers particularly 
during the preparat ory stage of sea cage projects, i.e. site assessment, earning capacity 
determination and formulation of local operational guidelines, including training on Good 
Aquaculture Practices.  
b. Fisheries Resource Management Projec t; 
The FRMP was terminated in November 2006.  
c. Support to Commercial Fisheries ; 
No budget was appropriated to implement Section 35 of the Philippine Fisheries Code as 
amended by R epublic Act 10654 under the previous and current National Expenditure Program 
(NEP) of BFAR under the Departm ent of Agriculture.  
d. Research and Development in Fisheries . 
The funding support is also provided as part of DA -BFAR’s research and development services.  
 
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