fj-
SEVENTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
^ r n n fr
d( llir f'cti fhiry
'17 
MAY 2 9  
P 4 :n 4
SENATE
s. No. 1476
RECEIVlUCV
Introduced by Senator Ralph G. Recto
AN ACT
REPLACING QUANTITATIVE IMPORT RESTRICTIONS ON RICE WITH TARIFFS 
AND 
CREATING THE 
RICE 
COMPETITIVENESS 
ENHANCEMENT 
FUND, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NUMBER 8178, AS AMENDED, 
AND FOR OTHER PURPOSES
Explanatory Note
Rice plays a crucial political and economic role in Philippine society, given the number 
of Filipinos that depend on it for their livelihood and the number of households that serve it on 
their table1. On the one hand, there are at least 1.23 million fanners2 that depend solely on rice 
production for their livelihood. On the other hand, there are some 22.98 million households3 that 
allocate almost 20% of their food expenditures on rice and rice products. For over two decades, 
the government balances the interests of rice fanners and consumers through a price stabilization 
policy -  keeping fann prices “high enougli” for rice farmers, while keeping rice retail prices 
“affordable” for consumers.
Such a policy regime, however, is becoming more and more untenable. UpwaiJ 
movements in population and rice utilization from 1990 to 2015 effectively doubled the 
Philippine rice utilization demand4. Rice production, while exhibiting higli levels of growth 
during the same period, could simply not keep up with the rice consumption in the country. This 
illustrates a gnawing irony of a price stabilization policy: rice consumers are spending more on 
rice products, but rice farmers remain poor, marginalized, and woefully unprepared to compete 
in the global market.
This bill seeks to rectify this situation by instituting two general interventions. First, to 
reduce household expenditure on rice, this measure shall repeal laws that prescribe quantitative 
restrictions or that grant government agencies the power to impose such restriction on rice 
importation. This quantitative import restriction on rice shall then be replaced with a bound tariff 
rate system provided under the World Trade Organization (WTO) Agreement. Through this 
intervention, it is hoped that sufficient rice supply in the country would be realized while 
additional government revenues would be generated.
Second, to ensure the continued productivity of rice fanners, this bill creates a Rice 
Competitiveness Enhancement Fund to be sourced from duties collected from rice importation. 
This Rice Fund shall be set aside for the enhancement of productivity and income of rice 
farmers; modernization of farms and marketing processes; enrichment of rice rcsearc' , 
development and extension programs; expansion of rice insurance coverage; and provision of
1 Gamboa, Mark Joseph D. (2016). Tradt IJbera/i^ation and Agricultural Competitiveness: Rescission of Quantitative Import
Restrictions on Rice and the Competitiveness of Filipino Rice Farmers. Unpublished graduate student research proposal, Quezon 
Gty; University of the Philippines.
2 Department of Agriculture. (2016). 2015 A nnual Report: AlagandangAni, Magandang Buhay. Quezon Qty. Department ot
Agriculture
3 Philippine Statistics Authority. (2016). Family Income and Expenditure Sunry. Quezon Qty; Philippine Statistics Authority.
4 Gamboa 2016 p. 2


agricultural credit to cover acquisition and establishment of machinery, equipment, and facility 
of rice farmers, farming cooperatives and associations, and Micro, Small, and Medium 
Enterprises (MSMEs). Apart from the Rice Fund, this bill also mandates the finalization of the 
Rice Roadmap of the Department of Agriculture within 180 days after its effectivity. This Rice 
Roadmap shall be used to restructure the government’s delivery of support services for the rice 
farming sector, and to establish a five-year rice program to provide alternative livelihood for 
directly-affected rice farmers.
Ultimately, this bill seeks to achieve two objectives. One, it seeks to bring down the cost 
of living in the Philippines by reducing the food expenditure of ordinary Filipino households. 
Two, it seeks to establish a social safety net for affected rice farmers to protect their welfare and 
ensure their continued productivity amidst liberalization of rice trade in the country.
In view of the foregoing, the swift passage of this mea^e-is earnestly souglit.
RALPH Of^RFC r d


'f
SEVENTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
‘OUitr ol (lip r>. rrrt.irj
■17 
MAY 2 9  
P 4 : C 4
SENATE
s. No. 147G
RECEIVED D1!.
Introduced by Senator Ralph G. Recto
AN ACT
REPLACING QUANTITATIVE IMPORT RESTRICTIONS ON RICE WITH TARIFFS 
AND 
CREATING THE 
RICE 
COMPETITIVENESS 
ENHANCEMENT 
FUND, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NUMBER 8178, AS AMENDED, 
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
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Section 1. Section 2 of Republic Act No. 8178, as amended, otherwise known as the 
“Agricultural Tariffication Act,” is hereby further 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 lieu of non-tariff import restrictions to protect local 
producers of agricultural products |, except in the case of rice, which will 
continue to have quantitative import restrictions].
“ x .  X. X .”
Sec. 2. Section 3(a) of Republic Act No. 8178, as amended, is hereby further amended to 
read as follows:
“SEC. 3. Definition of Temis. -  The following definitions apply to the 
terms used in this Act:
“(a) “Agricultural products” shall have the same meaning as 
agricultural products under Chapters 1-24 of [Presidential Decree No.
1464, otherwise known as the Tariff and Customs Code of the Philippines, 
as amended] Section 1611 oe R epublic Act No. 10863, otherw ise
KNOWN AS THE CUSTOMS MODERNIZATION AND TARIFF ACT;
“ X. X. X .”
Sec. 3. Section 4 of Republic Act No. 8178, as amended, otherwise known as the 
“Agricultural Tariffication Act,” is hereby further amended to read as follows:
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“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 [,except 
rice,] are hereby repealed;
“x.x.x”
Sec. 4. Section 5 of Republic Act No. 8178, as amended, otherwise known as the 
‘Agricultural Tariffication Act,” is hereby further 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 THE PURPOSE OF ENSl RING FOOD 
SECURITY AND MAINTAINING SUFFICIENT NATIONAL BUFFER 
STOCKS and to license, impose and collect fees and charges for said 
importation [for the purpose of equalizing the selling price of such 
imported rice with nonrial prevailing domestic prices).
“In the exercise of this power, [the Council after 
consultation with the Office of the President shall first certify to a 
shortage of rice that may occur as a result of a short-fall in 
production, a critical demand-supply gap, a state of calamity or 
other verified reasons that may warrant the need for importation: 
Provided, That this requirement shall not apply to the importation of 
rice equivalent to the Minimum Access Volume obligation of the 
Philippines under the WTO. The) the Authority shall undertake 
direct importation of rice [or it may allocate import quotas among 
certified and licensed importers, and the distribution thereof through 
cooperatives and other marketing channels, at prices) 
IN 
ACCORDANCE WITH RULES AND PROCEDURES to be determined by 
the Council [regardless of existing floor prices and the subsidy 
thereof, if any, shall be borne by the National Government).”
Sec. 5. Section 6 of Republic Act No. 8178, as amended, otherwise known as the 
“Agricultural Tariffication Act,” is hereby further 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. The President shall 
issue the corresponding tariffs beginning 1996 up to year 2000: Provided, That the
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schedule of the initial and final applied rates shall be consistent with the country’s tariff 
binding commitments.
“In case of shortages or abnonnal price increases in agricultural products, whose 
quantitative restrictions are lifted under this Act, the President may propose to Congress, 
revisions, modifications or adjustments of the Minimum Access Volume (MAV^; 
Provided, however. That in the event Congress fails to act after fifteen (15) days from 
receipt of the proposal, the same shall be deemed approved.
“In lieu of the quantitative restriction on rice, the maximum bound
RA TE SHALL BE IMPOSED ON RICE IMPORTS AS NOTIFIED BY THE PHILIPPINES TO THE 
WTO ”
Sec. 6. Section 8 of Republic Act No. 8178, as amended, otherwise known as the 
“Agricultural Tariffication Act,” is hereby further amended to read as follows:
“SEC. 8. Agricultural Competitiveness Enhancement Fund. -  To 
implement the policy enunciated in this Act, there is hereby created the 
Agricultural Competitiveness Enhancement Fund, hereinafter referred to as the 
Fund. The Fund shall consist of all duties collected from the importation of 
agricultural products, EXCEPT RICE, under the minimum access volume (MAV) 
mechanism, including unused balances and collections from repayments from 
loan beneficiaries including interests, if any. The Fund shall be automatically 
credited to Special Account 183 in the General Fund of the National Treasury: 
Provided, That fund releases shall not be subject to any ceiling by the Department 
of Budget and Management (DBM).
“ x .  X. X .”
Sec. 7. A new section 9 and 10 shall be inserted after Section 8-B of Republic Act No. 
8178, as amended, otherwise known as the “Agricultural Tariffication Act,” to read as follows: 
“Sec. 9. Rice Competitivesess Emiascemest F u\ d. -  T he R ice 
C om petitiveness E nhancement F und, hereinafter referred to as the 
“ R ice F und” is hereby created for the purpose pro m d ed h erein. T he 
R ice 
Fund 
shall 
consist 
of 
all 
duties 
collected 
from 
the
IMPORTATION OF RICE UNDER THIS ACT AND THE MINIMUM ACCESS VOLUME 
(MAV) MECHANISM FOR FIVE (5) YEARS FOLLOWING THE EFFECTIVITY OF THIS 
Ac t. T he R ice Fund shall be autom atically credited to a Special 
Account in the G eneral Fund of the National T reasury: Provided,
T hat the release of funds shall not be suiliect to any' ceilin g by- the 
Departm ent of Budget and M anagement (DBM). A ny rem aining
BALANCE AT THE DATE OF EXPIRATION OF THE COLLECTION OF DUTIES FOR THE
R ice F und shall continue to be utilized for the purpose for w hich it
WAS COLLECTED AND EARMARKED.
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“T he R ice Fund shall be set aside and earm arked fo r:
(A) E nhancement of productivity and incom e of rice
FARMERS;
(B) Modernization of farm and m arketing processes and
DEVELOPMENT OF THE COMMODITY’S VALUE CHAIN;
(C) E nhancement 
of 
research, 
den elopm ent 
and
EXTENSION ON RICE;
(D) Expansion of insurance coverage for r ic e; and
(E) Expansion 
o f 
agricultur.\l 
credit 
program 
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.
“Pr o i'id h d, T hat:
(1) P referential attention 
should be given to 
rice
FARMERS ADVERSELY AFFECTED BY THE TARIFFICATION OF THE 
QUANTITATIVE RESTRICTION ON RICE;
(2) T he use of the rice fund shall be consistent w ith the 
POLICIES AND PRIORITY THRUSTS UNDER REPUBLIC ACT NO. 8435, AS 
AMENDED, OTHERWISE KNOWN AS “THE AGRICULTURE AND FISHERIES
M odernization 
Ac t”, 
and 
the 
M edium-T erm 
Philippine 
Developm ent Plan (PDP); and,
(3) T he use of the R ice Fund shall be com plem entary and 
supportive of the various and current funding assistance
WINDOWS OR PROGRAMS OF THE DEPARTMENT OF AGRICULTURE (DA) 
AND OTHER GOVERNMENT INSTITUTIONS.
“To ENSURE THE ATTAINMENT OF THE OBJECTIVES OF THE RiCE FUND, 
THERE IS HEREBY CREATED A RiCE FUND EXECUTIVE COMMITTEE, COMPOSED
o f:
(A) 
T he Secretary of Agricu lture, as C hairperson;
(B) 
T he President of the Land Bank of the P h ilippin es; and,
(C) 
A REPRESENTATIVE OF RICE 
FARMERS 
ASSOCIATIONS 
AND 
COOPERATIVES.
“T he C o m m ittee shall prom ulgate the po licies and guidelines
NECESSARY FOR THE 
PLANNING, ADMINISTRATION, COORDINATION 
AND 
MONITORING OF THE UTILIZATION OF HIE RiCE FUND.
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“T he C ongressional O versight C om m ittee on Agricultural 
AND Fisheries M odernization (COCAFM ) shall conduct a period ic 
REVIEW OE THE USE OF THE RiCE FUND.
“Sec.IO, Rich I^ dcstry Roadmap. -  Upon the enactm ent of this Ac t, the 
Departm ent of Agriculture to gether w ith relevant agencies shall ef, 
given a maximum of O ne H undred and E ighty (180) days to finalize the R ice 
Roadmap to restructure the governm ent’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. TlIE DA SHALL PROVIDE A LIST OF 
FARMERS IN THE GOVERNMENT’S TRANSITION PROGRAM IN WHICH THEY WILL 
EVENTUALLY GRADUATE INTO A MORE APPROPRIATE INDUSTRY.”
Sec. 8. The succeeding sections of Republic Act No. 8178, as amended, otherwise 
known as the “Agricultural Tariffication Act,” are hereby renumbered accordingly.
Sec. 9. Implementing Rules and Regulations. -  Within ninety (90) days from effectivity 
of this Act, the DA and the DBM shall, in coordination with the relevant government agencies, 
and after consultation with directly affected stakeholders, promulgate the rules and regulations to 
effectively implement the provisions of this Act.
Sec. 10. Separability Clause. -  If any provision, section or part of this Act shall be 
declared unconstitutional or invalid, such judgment shall not affect, invalidate or impair any 
other provisions, sections or parts hereof.
Sec. 11. Repealing Clause. -  All laws, decrees, orders, rules and regulations which arc 
inconsistent with the provisions of this Act arc hereby repealed or modified accordingly.
Sec. 12. Effectivity. -  This Act shall take effect fifteen (15) days following its publication 
in at least two (2) newspapers of general circulation or in the Official Gazette.
Approved,
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