Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO._543

Introduced by Representative Jose T. Panganiban, Jr.
of ANAC-IP Partylist

EXPLANATORY NOTE

Rice production in the country is crucial to our food supply and economy chain. The
country is ranked as the 9 largest rice producer in the world, notwithstanding, the country is
also ranked as the world’s largest importer in a survey done in 2010.

With the impending expiration of the country’s Quantitative Restrictions (QR) on rice
imports on June 30, 2017, the looming dilemma on how the local rice farmers will be able to
compete and stay afloat amidst globalization needs to be immediately addressed.

Experts in the field of agriculture said that tarrification is imperative and inevitable.
Tariffication of rice imports will serve as a safeguard to ensure that the local rice producers will
be able to compete with the global market. Moreover, this is consistent with the country’s trade
obligations with the World Trade Organization (WTO)

Ultimately, tariffication will generate revenues for the government that can be utilized to
further enhance the productivity and competitiveness of the rice industry, and to realize the thrust
towards food security and sustainability.

In view of the foregoing, the immediate passage of this bill is eamestly sought.

_—7 REP. JOSE T. P.
ere | ANACS


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No 4.33

Introduced by Representative Jose T. Panganiban, Jr.
of ANAC-IP Partylist

AN ACT REPLACING QUANTITATIVE IMPORT RESTRICTIONS ON RICE
WITH TARIFFS, AND CREATING THE RICE COMPETITIVENESS
ENHANCEMENT FUND, AMENDING FOR THE PURPOSE REPUBLIC ACT 8178,
AS AMENDED BY REPUBLIC ACT NO. 9496, FURTHER AMENDED BY
REPUBLIC ACT NO, 10848, ENTITLED: “AN ACT REPLACING QUANTITATIVE
IMPORT RESTRICTIONS ON AGRICULTURAL PRODUCTS, EXCEPT RICE,
WITH TARIFFS, CREATING THE AGRICULTURAL COMPETITIVENESS
ENHANCEMENT FUND, AND FOR OTHER PURPOSES”

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Section 2 of Republic Act No. 8178, as amended, otherwise known as “An Act
Replacing Quantitative Import Restrictions on Agricultural Products, Except Rice, With
Tariffs, Creating the Agricultural Competitiveness Enhancement Fund, and For Other
Purposes, is hereby amended, to read as follows:

“SEC. 2. Declaration of Policy ~ It is the policy of the State to make the country's
agricultural sector viable, efficient and globally competitive, The State adopts the use
of tariffs in liew of non-tariff import restrictions to protect local producers of
agricultural products [,
quantitative import restrictions],

XXX”

SECTION 2. Item (a) of Section 3 of Republic Act No. 8178, as amended, is hereby
amended, to read as follows:

“(a) "Agricultural products" shall have the same meaning as agricultural products
under Chapters 1-24 of [Presidential Decree No_1464_othemmise known asthe Tard?
and-Custems-Code-of the Philippines_as-amended] SECTION 1611 OF REPUBLIC
ACT NO. 10863, OTHERWISE KNOWN AS THE CUSTOMS
MODERNIZATION AND TARIFF ACT (CMTA)

XXX”


SECTION 3. Section 4 of Republic Act No. 8178, as amended, is hereby amended, to read
as follows:
“SEC. 4. Repeal. - The following laws and all other laws or provisions of law
prescribing quantitative import restrictions or granting government agencies the
power to impose such restrictions on agricultural products |,exeept-rice,| are hereby
repealed:

xXx”

SECTION 4. Section 5 of Republic Act No. 8178, as amended, is hereby amended, to read
as follows:

“SEC. 5. Amendment. — Subparagraph (xii), paragraph (1) Section 6 of Presidential
Decree No. 4 (National Grains Authority Act), as amended, is hereby further amended
to read as follows:

“SEC. 6. (a) Powers. —

“(xii) to establish rules and regulations governing the importation of
rice for FOOD SECURITY AND NATIONAL BUFFER STOCKING
PURPOSES and to license, impose and collect fees and charges for said
importation [for-the-purpese-of equalizing the-selling-price-of-stich-imported

|.
“In the exercise of this power, [the Couneil-efter-consultation-with-the

| The Authority shall undertake direct
importation of rice [

‘other-marketing-channels,] at [prices] CONDITIONS to be determined by
the Council [regardless of existing floor prices-and-the subsidy-thereof-if any,
ty

SECTION 5. Section 6 of Republic Act No. 8178, as amended, is hereby amended, to read
as follows:

“SEC. 6. Tariffication. — In lieu of quantitative restrictions, the maximum bound rates
committed under the Uruguay Round Final Act shall be imposed on the agricultural
products whose quantitative restrictions are repealed by this Act, AS AMENDED.
‘The President shall issue the corresponding tariffs beginning 1996 up to year 2000:
Provided, that the schedule of the initial and final applied rates shall be consistent
with the country’s tariff binding commitments.

In case of shortages or abnormal price increases in agricultural products, whose
quantitative restrictions are lifted under this Act, AS AMENDED, the President may
propose to Congress, revisions, modifications or adjustments of the Minimum Access


1 Volume (MAV): Provided, however, that in the event Congress fails to act after
2 fifteen (15) days from receipt of the proposal, the same shall be deemed approved.

3

4 IN LIEU OF THE QUANTITATIVE RESTRICTION ON RICE, THE
5 MAXIMUM BOUND RATE SHALL BE AS NOTIFIED BY THE
6 PHILIPPINES TO THE WTO.”

7

8 SECTION 6, Section 8 of Republic Act No. 8178, as amended, is hereby amended, to read
9 as follows:

10 “SEC 8, Agricultural Competitiveness Enhancement Fund. - To implement the policy
rte enunciated in this Act, there is hereby created the Agricultural Competitiveness
2 Enhancement Fund, hereinafter referred to as the Fund. The Fund shall consist of all
B duties collected from the importation of agricultural products, EXCEPT RICE, under
4 the minimum access volume (MAV) mechanism, including unused balances and
15 collections from repayments from loan beneficiaries including interests, if any. The
16 Fund shall be automatically credited to Special Account 183 in the General Fund of
7 the National Treasury: provided, that fund release shall not be subject to any ceiling
18 by the Department of Budget and Management (DBM).

19

20 XXX”

2
22 SECTION 7. A new Section 9 is hereby inserted after Section 8-B of Republic Act No.
23 8178, as amended, to read as follows:

24

25 “SEC. 9. RICE COMPETITIVENESS ENHANCEMENT FUND. — THERE
26 IS HEREBY CREATED THE RICE COMPETITIVENESS
27 ENHANCEMENT FUND, HEREIN REFERRED TO AS THE “RICE
28 FUND”, FOR THE PURPOSE PROVIDED HEREIN. THE RICE FUND
29 SHALL CONSIST OF ALL DUTIES COLLECTED FROM THE
30 IMPORTATION OF RICE UNDER THIS ACT AND THE MINIMUM
31 ACCESS VOLUME (MAV) MECHANISM FOR FIVE (5) YEARS FROM
32 THE START OF THE EFFECTIVITY OF THIS ACT. THE RICE FUND
33 SHALL BE AUTOMATICALLY CREDITED TO A_ SPECIAL
34 ACCOUNT IN THE GENERAL FUND OF THE NATIONAL
35 TREASURY: PROVIDED, THAT, FUND RELEASE SHALL NOT BE
36 SUBJECT TO ANY CEILING BY THE DEPARTMENT OF BUDGET
37 AND MANAGEMENT (DBM). ANY REMAINING BALANCE AT THE
38 DATE OF EXPIRATION OF THE COLLECTION OF DUTIES FOR
39 THE RICE FUND SHALL NOT REVERT TO THE GENERAL FUND
40 BUT SHALL CONTINUE TO BE USED FOR THE PURPOSE FOR
a WHICH IT WAS COLLECTED AND SET ASIDE.”

42

43 “THE RICE FUND SHALL BE SET ASIDE AND RELEASED TO:

44

45 A. ENHANCE PRODUCTIVITY AND INCOME OF RICE
46 FARMERS;

47

48 B. MODERNIZE FARM AND MARKETING PROCESSES AND
49 STRENGTHEN THE COMMODITY’S VALUE CHAIN;


C, ENHANCE RESEARCH, DEVELOPMENT AND EXTENSION
ON RICE;

D. EXPAND INSURANCE COVERAGE FOR RICE; AND

E. EXPAND CREDIT TO INCLUDE ACQUISITION AND
ESTABLISHMENT OF PRODUCTION, POSTHARVEST, AND
PROCESSING MACHINERIES, EQUIPMENT AND
FACILITIES OF RICE FARMERS AND THEIR
COOPERATIVES AND ASSOCIATIONS AND MICRO AND
SMALL-SCALE ENTERPRISES.”

“PROVIDED, THAT:

(1) PREFERENTIAL ATTENTION SHOULD BE GIVEN TO
RICE FARMERS ADVERSELY AFFECTED BY THE
TARIFFICATION OF THE QUANTITATIVE
RESTRICTION ON RICE;

(2) THE USE OF THE RICE FUND SHALL BE CONSISTENT
WITH THE POLICIES AND PRIORITY THRUSTS UNDER
REPUBLIC ACT NO. 8435, AS AMENDED, OTHERWISE
KNOWN AS THE AGRICULTURE AND FISHERIES
MODERNIZATION ACT VIS-A-VIS THE MEDIUM-TERM
PHILIPPINE DEVELOPMENT PLAN (PDP); AND.

(3)THE USE OF THE RICE FUND SHALL BE
COMPLEMENTARY AND SUPPORTIVE OF THE
VARIOUS AND CURRENT FUNDING ASSISTANCE
WINDOWS OR PROGRAMS OF THE DEPARTMENT OF
AGRICULTURE AND OTHER GOVERNMENT
INSTITUTIONS.”

“TO ENSURE THE ATTAINMENT OF THE OBJECTIVES OF THE
RICE FUND, THERE IS HEREBY CREATED A RCEF EXECUTIVE
COMMITTEE, COMPOSED OF:

A. THE SECRETARY OF AGRICULTURE, AS CHAIR;

B. THE PRESIDENT OF THE LAND BANK OF THE
PHILIPPINES; AND

C. A REPRESENTATIVE OF RICE FARMERS ASSOCIATIONS
AND COOPERATIVES.

“THE COMMITTEE SHALL PROMULGATE THE POLICIES AND
GUIDELINES NECESSARY FOR THE PLANNING,
ADMINISTRATION, COORDINATION AND MONITORING OF THE
UTILIZATION OF THE RICE FU!



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“THE CONGRESSIONAL OVERSIGHT COMMITTEE ON
AGRICULTURAL AND FISHERIES MODERNIZATION (COCAFM)
SHALL CONDUCT A PERIODIC REVIEW OF THE USE OF THE
RICE FUND.”
SECTION 8. A new Section 10 is hereby inserted after the new Section 9 of Republic Act
No. 8178, as amended, to read as follows:

“SEC.10. RICE INDUSTRY ROADMAP. UPON THE ENACTMENT OF THIS
ACT, THE DEPARTMENT OF AGRICULTURE TOGETHER WITH
RELEVANT AGENCIES SHALL BE GIVEN A MAXIMUM OF ONE
HUNDRED EIGHTY (180) DAYS TO FINALIZE THE RICE ROADMAP TO
RESTRUCTURE THE GOVERNMENT’S DELIVERY OF SUPPORT
SERVICES FOR THE SECTOR. AS PART OF THIS ROADMAP, A FIVE-
YEAR RICE PROGRAM SHALL BE IMPLEMENTED TO PROVIDE
ALTERNATIVE LIVELIHOOD FOR THOSE WHO WILL BE AFFECTED
BY THE SHIFT IN THE IMPORT POLICY. THE DA SHALL PROVIDE A
LIST OF FARMERS IN THE GOVERNMENT'S TRANSITION PROGRAM
IN WHICH THEY WILL EVENTUALLY GRADUATE INTO A MORE
APPROPRIATE INDUSTRY.”

SECTION 9. Sections 9, 10, 11 and 12 of Republic Act No. 8178, as amended, are hereby
renumbered accordingly.

SECTION 10. Separability Clause.— If any portion of this Act is declared invalid or
unconstitutional, the portions or provisions which are not affected shall continue to be in full
force and effect.

SECTION 11. Repealing Clause.— All laws, decrees, executive issuances, rules and
regulations inconsistent with this Act are hereby repealed or modified accordingly.

SECTION 12. Hffectivity. — This Act shall take effect after fifteen (15) days from its
publication in the Official Gazette or in a newspaper of general circulation

Approved,