Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
‘Second Regular Session

House Bill No.6190

Introduced by Rey intative Rico B. Geron

EXPLANATORY NOTE

The right to food security may be inferred from various human rights
provisions and from the constitutional intent to address mass poverty. The right to
food may be inferred from Section 9, Article Il in relation to Section 1, Article Xil,
which mandates policies focused on improving the quality of life for all; Section 10,
Article II in relation to Sections 1 and 3, Article XII, which fosters social justice;
Section 21, Article I! in relation to Sections 4, 5 and 6, Article XIII, which promotes
agrarian reform; and Section 7, Article Xill, which explicitly recognizes the rights of
subsistence fishermen to the preferential use of communal inland and offshore
marine and fishing resources.

Rice production in the Philippines is important to the food supply in the
country and economy. The Philippines is the 9th largest rice producer in the world,
accounting for 2.8% of global rice production. The Philippines was also the world's
largest rice importer in 2010.

The Philippines imports more than 1 million metric tons (MMT) of rice
annually to plug the shortfall in its production and beef up the National Food
Authority's (NFA) buffer stock. In the recent years, the government has taken charge
of rice importation, as Manila has existing rice-supply deals with the governments of
Thailand and Vietnam. Currently, the government allows rice imports within the
minimum access volume (MAV) of 705,200 metric tons (MT) to enter the country at a
lower tariff of 35%. Imports in excess of the MAV are slapped a higher tariff of 50%.

However, starting July 2017, tariff concessions made under the QR will end
along with the program's expiration, and tariff rates will revert back to their previous
higher levels. This also means that the MAV for rice will revert back to the original
350,000 MT while tariff rates will have to be decided by the economic managers.

This bill seeks to impose a the tariff rate of 100% in lieu of quantitative import
restrictions beginning 01 January 2018 to accord transparent trade protection for rice
producers.

Se ea

RICO B-GERON
AAP, Partylist


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
‘Second Regular Session

House Bill No, 6190

Introduced by Representative RICO B. GERON

AN ACT TO PLACE SAFETY NETS FOR FILIPINO RICE
PRODUCERS BY IMPOSING TARIFFS IN LIEU OF QUANTITATIVE
RESTRICTIONS ON RICE IMPORTS, DIRECTING TARIFF COLLECTIONS
FROM RICE IMPORTS TO PROJECTS AND PROGRAMS THAT WOULD
ENHANCE RICE PRODUCTIVITY AND INCREASE FARMERS’ INCOMES

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

SECTION. 1. Short Title. — This Act shall be known as the Rice Safety
Net Act of 2017.

SEC. 2. Declaration of Policy. — It is the policy of the State to
enhance farmers’ incomes and ensure food security by increasing the
productivity of the country’s rice industry and making the protection accorded
to rice producers transparent and effective. Towards this goal, the State
adopts the use of tariffs in lieu of non-tariff import restrictions to protect local
paddy producers in a direct and transparent manner and, at the same time,
generate revenues required to provide the infrastructure and finance the
programs that improve farmer's productivity.

The State shall endeavor to raise rice farm productivity the necessary
support services such as, but not limited to, irrigation, farm-to-market roads,
post-harvest equipment and facilities, credit, research and development,
extension services, other market infrastructure and market information. These
support services shall, at least partially, be financed from the revenue
collections from agricultural tariffs.

SEC. 3 Definitions of Terms. — For the purposes of this Act, the
following terms are defined as follows:


(a) Quantitative import restrictions shall refer to non-tariff
restrictions used to limit the amount of imported
commodities, including but not limited to discretionary import
licensing and import quotas, whether qualified or absolute;

(b) Rice shall refer to rice in the husk, husked rice, semi-milled
or wholly-milled rice, or broker rice, classified under the
Harmonized System of Commodity Classifications as used in
the Tariff and Customs Code of the Philippines; and

(c) Tariff rate equivalent shall refer to the rate of tariff that will
allow the same protection given by existing quantitative
import restrictions, reflected by the average price gap
between domestic prices and world prices.

SEC. 4. Institution of Tariff Protection. — In lieu of quantitative import
restrictions, the tariff rate of 100% shall be imposed on rice imports beginning
01 January 2018 to accord transparent trade protection for rice producers.

SEC. 5. Reduction of Tariff Rates. — Any subsequent reduction of the
tariff rate shall be based on the implementation of comprehensive Rice
Farmers Development Program to improve the sector's competitiveness. The
Department of Agriculture shall develop the program in consultation with the
rice sector farmers, stakeholders and the Congressional Oversight Committee
on Agriculture and Food (COCAF), Provided further, that program
implementation shall be validated and evaluated by the COCAF.

SEC. 6. Rice Farmers Development Fund. — The tariff revenues
generated by the Government from rice imports shall be collected into a
special fund at the National Treasury called the Rice Farmers Development
Trust Fund created for the exclusive purpose of financing investments and
expenditures under the Rice Farmers Development Program. The Governor
of the Bangko Sentral ng Pilipinas (BSP) or his representative shall serve as
the Treasurer of the RDTF, The Bureau of Customs and the Department of
Finance (DOF) shall certify to the Department of Agriculture the volumes of
rice imports and the tariff revenues generated from such imports at quarterly
intervals. The Department of Budget and Management shall certify to the
Department of Agriculture the allocation of such tariff revenues to the
financing of public investments and support services in agriculture, as directed
by the Rice Farmers Development Trust Fund Board. Provided, however, that
the said special fund would be separate, distinct and in addition to the
appropriations received by the Department of Agriculture. Provided, further,
that any savings made each year shall accrue to the special funds set by this
Act.

SEC. 7 Anti-Rice Smuggling Fund. — One percent (1%) of the Rice
Famers Development Fund shall be allocated to the Coast Guard and other
concerned agencies in the prevention of smuggled agricultural products that
enters the domestic market and in the implementation of the Anti-Dumping
Act and Countervailing Act.


SEC. 8 Rice Farmers Development Fund Board. ~The Rice Famers
Development Trust Fund shall be managed according to policies set by the
Rice Development Trust Fund Board. The Board shall be composed of:

Chairperson: Chairman of the COCAF/Chairman of the
Senate Committee on Food and Agriculture

Vice-Chairperson: DA Secretary and the Vice
Chairperson of COCAF

Members: Peasant Sector Representative, House of
Representatives and two (2) representatives of national
associations of rice farmers appointed for a two-year term by
the Secretary of Agriculture.

The RFDF Board shall meet at least once each
semester. The RFDF is empowered to organize a Technical
Committee and Secretariat to undertake its operational
activities. The budget for the operations of the RTDF Board
and Secretariat shall be approved by the Secretary of
agriculture and drawn from interest earnings of the RFDF.

SEC. 9 Emergency Provisions. —The President is empowered to
allow the import of rice at a lower tariff rate to meet emergency requirements
as well as the requirements of the government's rice distribution program
which is targeted to the poorest of the poor. Provided, such imports may be
treated as compliance to the Minimum Access Volume (MAV) commitments
under the WTO. The secretary of Agriculture shall recommend the applicable
rate and the volume to be imported on the basis of technical analysis and
participatory consultation.

The Secretary of Agriculture shall formulate and implement simple and
transparent rules and regulations governing the importation of rice under such
tariff rate quota, including the allocation of the quotas among importers.
Provided, that tariff proceeds from such imports shall accrue to the Rice
Farmers Development Fund.

SEC. 10 Separability Clause. — Any provision of this Act declared
unconstitutional shall not affect the validity of the other provisions thereof.

SEC. 11. Repealing Clause. — Subparagraph (xii), paragraph (1)
Section 6 of Presidential Decree No. 4 otherwise knowns as the National
Grains Authority Act of 1972, as amended by Republic Act No. 8178
otherwise known as Agricultural Tariffication Act of 1996 is hereby repealed.

All other laws or provisions of law prescribing quantitative import
restrictions on rice or granting government agencies the power to impose
such restrictions on rice are likewise repealed.


SEC. 12. Effectivity. — This Act shall take effect thirty (30) days
following its publication in a newspaper of general circulation.

Approved,