SEVENTEENTH CONGRESS OF THE ] io

REPUBLIC OF THE PHILIPPI ]
Second Regular Session 1 “8 way 30 P252
SENATE pec
8.B. No. 1839

Introduced by SEN. WIN T. GATCHALIAN

AN ACT
REPLACING THE QUANTITATIVE IMPORT RESTRICTIONS ON RICE
WITH TARIFFS, LIFTING THE QUANTITATIVE EXPORT RESTRICTIONS
‘ON -RICE-AND-CORN, AND CREATING THE RICE COMPETITIVENESS
ENHANCEMENT FUND, AMENDING FOR THE PURPOSE REPUBLIC ACT
NO. 8178, AS AMENDED, AND FOR OTHER PURPOSES

. EXPLANATORY NOTE

For more than two decades, the Philippine government has adopted a
policy balancing the interests of Filipino rice farmers and Filipino consumers.
Such policy is characterized by the imposition of quantitative restrictions on
imported rice and the provision of subsidies to keep rice prices higher than
the market-clearing price to compensate rice farmers from high production
costs while keeping retail rice prices affordable enough to consumers.

While such policy regime helped increase domestic rice production, it is
becoming unsustainable. Rice consumers are spending more on rice products
while domestic rice farmers remain poor, marginalized and unprepared to
compete in the global market.! Rice prices are higher to protect our domestic
rice-farmers, but farm facilities have not been upgraded to enhance overall

1 SEPO Policy Brief on “Rice Tariffication: Why is it a necessary public policy?”, Figure 4, 4,
citing Moya et al. 2016 In: Briones et al. 2017, 2 and Figure 5, 4, citing FAO and BSP 2017
In: NEDA 2017, 4.



efficiency. The National Food Authority’s coffers are hugely strained with debt
amounting to Php152.646 billion in 2017 alone, but the average share of
actual NFA palay procurement is only 1.89% of total production on the
average from 2000 to 2017.2 Domestic rice production has been growing but
it could not keep up with the increase in population and rice consumption in
the country.? Rice remains to be a major staple food source for Filipino
households but price movements of rice greatly impact the poorest 20% of
Filipino households who spend as much as 30.60% of their total food
expenditure on rice.‘ In sum, our policy restricting rice importation has been
artificially protecting our domestic rice producers and farmers, inflating rice
prices to the detriment of the poorest 20% Filipino households and further

burdening the national government's finances.

_-To address this situation, this proposed measure seeks to provide three
major interventions, namely: (1) replacement of quantitative restrictions on
rice with tariffs and lifting of export restrictions on rice and corn; (2) delegating
to the President certain powers to safeguard the interests of the general
public; and (3). creation of the rice competitiveness enhancement fund and

formulation of a rice industry roadmap.

First, to enhance the food security situation in the country, to reduce

... household expenditure on rice, and to ensure that the rice industry will be
. globally. competitive, this measure shall repeal laws or provisions of law that
prescribe quantitative import and export restrictions or that grant government
agencies, including the National Food Authority, the power to impose such
restriction on rice importation and rice exportation. The quantitative
restriction shall be replaced with a bound tariff rate system provided under
the World Trade Organization (WTO) Agreement, thereby, removing
unnecessary government intervention in the rice market. This intervention

~ aims to eliminate market distortions created by such restrictions, thereby,

2 DOF, PSA and NFA
3 Id., citing Briones 2017, 14-15.
4 PIDS based on FIES 2012 In: NEDA 2017, 5.



hopefully realizing a sufficient rice supply in the country, lowering farmgate
prices to the benefit of Filipino consumers, giving domestic rice farmers with
price advantage over rice importers,5 and generating additional government
revenues. Also, as a result, removing export restrictions on rice and corn will
put domestic rice farmers in a competitive playing field in the global market,
and hopefully, will encourage domestic rice production.

Second, to ensure and facilitate immediate and necessary government
intervention, this measure also gives the President the authority to adjust
tariff rates on imported rice, to regulate rice exports and to impose a special
rice safeguard. Such authority can be exercised only to ensure food security
and to safeguard public welfare.

Lastly, as-a~socialsafety net measure, a Rice Competitiveness
Enhancement Fund will be created to be sourced from tariff revenues
collected: The Fund will be used for the (i) enhancement of productivity and
income of rice farmers, (ii) modernization of farms and marketing processes,
(i
expansion of rice insurance coverage, (v) diversification to high-value

enrichment of-rice research, development and extension programs, (iv)

commoditiés, (vi) promotion, establishment and accreditation of rice farm
schools and cooperatives, (vii) skills and training development on rice crop
production, rice farming techniques and other innovations, (viii) targeted
scholarships on agriculture-related courses, and (ix) expansion of agricultural
credit services. Moreover, this measure mandates the development and
implementation of a rice industry roadmap which will spell out critical
interventions necessary to assist the small rice farmers, especially those
affected by tariffication, and will restructure the government’s delivery of

support services for the rice farming sector.

In sum, this bill seeks to reduce the food expenditure of ordinary
Filipino households while providing well-functioning and sustainable social



safety nets for affected rice farmers to mitigate the adverse effects of the
liberalization of rice trade in the country by protecting their welfare and
ensuring their continued productivity.



SEVENTEENTH CONGRESS OF THE J
REPUBLIC OF THE PHILIPPINES ] 18 MAY 30 P252

Second Regular Session ] a

SENATE

8.B.No. 1839

Introduced by SEN. WIN T. GATCHALIAN

AN ACT
_. REPLACING THE QUANTITATIVE IMPORT RESTRICTIONS ON RICE
~->\ WITH TARIFFS; LIFTING THE QUANTITATIVE EXPORT RESTRICTIONS
ON RICE AND CORN, AND CREATING THE RICE COMPETITIVENESS
ENHANCEMENT FUND, AMENDING FOR THE PURPOSE REPUBLIC ACT

=~ .NO.-8178, AS AMENDED, 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 the “Agricultural Tariffication Act,” is hereby further
amended, to read as follows:

1

2

3

4

5 “SEC. 2. Declaration of Policy - It is the policy of the State to
6 ENSURE FOOD SECURITY AND TO make the country's
7 agricultural sector viable, efficient and globally competitive. The
8 State adopts the use of tarifis in lieu of non-tariff import
9 restrictions to protect local producers of agricultural products
10 Lexcept in the case of rice, which will continue to have
cre quantitative import restrictions].

12

13 XXX”



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SECTION 2. Section 3 of Republic Act No. 8178, as amended, is

hereby further amended to read as follows:

“SEC. 3. Definition of Terms. The following definitions shall
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 OF REPUBLIC ACT
NO. 10863, OTHERWISE KNOWN AS THE CUSTOMS
MODERNIZATION AND TARIFF ACT (CMTA).

(b) “Applied Rate” refers to import duty that is actually used
by Customs authorities in the collection of Customs revenues.

(C). “ATIGA RATE” REFERS TO TARIFF RATE
“COMMITMENTS UNDER THE ASEAN TRADE IN GOODS
AGREEMENT (ATIGA) APPLICABLE TO IMPORTATIONS
ORIGINATING FROM ASEAN MEMBER STATES.

[cl() “Bound rate” refers to THE AGREED maximum
[limits on] tariffs on products [commitment] committed by the
Philippines to the World Trade Organization (WTO) under the
Uruguay Round Final Act, AS LISTED IN ITS SCHEDULE OF
CONCESSIONS (SCHEDULE LXXV), AND TO THE
ASSOCIATION OF SOUTH EAST ASIAN NATIONS (ASEAN)
UNDER THE ATIGA, IN ACCORDANCE WITH ITS TARIFF

“SCHEDULE (ANNEX 2: TARIFFS UNDER THE ASEAN TRADE
IN GOODS AGREEMENT (ATIGA) PHILIPPINES).



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[d](2) “In-Quota Tariff Rate” refers to the tariff rate for
minimum access volumes committed by the Philippines to the
World Trade organization (WTO) under the Uruguay Round Final
Act.

(F) “OUT-QUOTA TARIFF RATE” REFERS TO THE
HIGHER RATE OF CUSTOMS DUTY THAT IS LEVIED ON THE
QUANTITIES OF AN IMPORTED AGRICULTURAL PRODUCT IN
EXCESS OF THE MINIMUM ACCESS VOLUME (MAV) OF THAT
PARTICULAR PRODUCT.

[el(@) “Minimum Access Volume’ refers to the volume of a
specific agricultural product that is allowed to be imported with a
lower tariff as committed by the Philippines to the World Trade
Organization (WTO) under the Uruguay Round Final Act.

(H) “MOST FAVOURED NATION (MFN) RATE” REFERS

TO. PHILIPPINE TARIFF RATES THAT ARE APPLICABLE TO

“IMPORTS FROM ALL JURCES AS PRESCRIBED IN THE
CUSTOMS MODERNIZATION AND TARIFF ACT (CMTA).

{f(1) “Quantitative Import Restrictions” refers 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.

(J) “RICE” REFERS TO ALL PRODUCTS CLASSIFIED
UNDER THE HARMONIZED COMMODITY DESCRIPTION AND
CODING SYSTEM (HS) HEADING 10.06.

{el(&) “Tariff” refers to a tax levied on a commodity imported
from another country. It earns revenues for the government and

is regarded as an instrument to promote local industries by



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taxing their competitors. The benefit is accorded to the local
producers by the maintenance of a domestic price at a level equal

to the world price plus the tariff.

(L) “TARIFF EQUIVALENT” REFERS TO THE RATE OF
TARIFF THAT ALLOWS THE SAME PROTECTION GIVEN BY
EXISTING QUANTITATIVE IMPORT RESTRICTIONS,
REFLECTED BY THE AVERAGE PRICE GAP BETWEEN
DOMESTIC PRICES AND WORLD PRICES; AND

[h](M) “Tariffication” refers to the lifting of all existing
quantitative restrictions such as import quotas or prohibitions,
imposed on agricultural products, and replacing these restrictions
with tariffs.

“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 [except rice,] are hereby
repealed:

XX x”

SECTION 4. SECTION 5 OF REPUBLIC ACT NO. 8178, AS
AMENDED, IS HEREBY REPEALED, AND A NEW SECTION 5 IS HEREBY
INSERTED, TO READ AS FOLLOWS:

“SEC. 5. LIFTING OF THE RICE AND CORN EXPORT
RESTRICTION. ALL LAWS, REGULATIONS, AND ISSUANCES
RESTRICTING OR LIMITING THE EXPORT OF RICE AND
CORN ARE HEREBY REPEALED, INCLUDING, BUT NOT



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LIMITED TO, SECTION 6 (A) (XIII) OF PRESIDENTIAL DECREE
NO. 4 OF 1972, AS AMENDED.”

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. 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, 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 BOUND RATES SHALL BE IMPOSED AS NOTIFIED
BY THE PHILIPPINES TO THE WTO OR TO THE
COORDINATING COUNCIL FOR IMPLEMENTATION OF THE
ATIGA.”

SECTION 6. A new Section 7 is hereby inserted, to read as follows:

“SEC. 7. ISSUANCE OF SANITARY AND PHYTOSANITARY
IMPORT CLEARANCE FOR RICE. ALL IMPORTERS OF RICE



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ARE REQUIRED TO SECURE A_ SANITARY AND
PHYTOSANITARY IMPORT CLEARANCE FROM THE BUREAU
OF PLANT INDUSTRY (BPI) PRIOR TO IMPORTATION IN
ACCORDANCE WITH EXISTING LAWS, RULES AND
REGULATIONS.”

SECTION 7. Section 7 of Republic Act No. 8178, as amended, is

hereby renumbered as Section 8, and a new Section 9 is hereby inserted to

read as follows:

“SEC. 9. MINIMUM ACCESS VOLUME FOR RICE. - UPON
THE EFFECTIVITY OF THIS ACT, THE MINIMUM ACCESS
VOLUME (MAV) WILL REVERT TO ITS 2012 LEVEL AT

...350,000 METRIC TONS (MT) AS INDICATED IN THE

PHILIPPINES’ COMMITMENT TO THE WORLD TRADE
ORGANIZATION (WTO).

(A) THE BOUND RATE FOR RICE IMPORTED INTO
THE PHILIPPINES SHALL BE SET AT:
(1) FORTY PERCENT (40%) MFN RATE FOR
IMPORTATION WITHIN THE 350,000 MT MAV
FROM. NON-ASEAN WTO MEMBER COUNTRIES;
AND
(2) ONE HUNDRED EIGHTY (180%) MFN OUT
QUOTA TARIFF RATE.

(B) THE BOUND RATE FOR IMPORTED RICE
ORIGINATING FROM ASEAN MEMBER STATES SHALL
BE BASED ON THE IMPORT DUTY RATE
COMMITMENTS OF THE PHILIPPINES IN THE ASEAN
‘TRADE IN GOODS AGREEMENT (ATIGA).

SECTION 8. A new Section 10 is hereby inserted, to read as follows:



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“SEC. 10. DELEGATED AUTHORITY TO THE

PRESIDENT. TO ATTAIN THE OBJECTIVES OF THIS ACT,
THE PRESIDENT IS HEREBY VESTED WITH THE FOLLOWING
AUTHORITY:

(A) ADJUSTMENT OF APPLIED RATE ON IMPORTED RICE
UNDER CERTAIN CIRCUMSTANCES. - IN THE
INTEREST OF THE GENERAL WELFARE AND
NATIONAL SECURITY, THE PRESIDENT, UPON THE
RECOMMENDATION OF THE NEDA BOARD, MAY
INCREASE, REDUCE, REVISE OR ADJUST EXISTING
RATES OF IMPORT DUTY ON RICE, WHICH IN NO
CASE SHALL EXCEED THE BOUND TARIFF SET
UNDER THIS ACT, AND/OR MAKE ANY NECESSARY
‘CHANGE/S IN THE CLASSIFICATION APPLICABLE
TO THE IMPORTATION OF RICE.

EXCEPT AS OTHERWISE PROVIDED UNDER THIS
ACT, ANY ORDER ISSUED BY THE PRESIDENT
ADJUSTING THE APPLIED TARIFF RATES SHALL
-TAKE._EFFECT FIFTEEN (15) DAYS AFTER
PUBLICATION. IN THE EVENT OF ANY IMMINENT
OR FORECASTED SHORTAGE, OR SUCH OTHER
SITUATION REQUIRING IMMEDIATE GOVERNMENT
INTERVENTION, THE ORDER ISSUED BY THE
PRESIDENT ALLOWING THE IMPORTATION OF RICE
AT A LOWER APPLIED TARIFF RATE FOR A
LIMITED PERIOD OF TIME AND/OR A SPECIFIED
‘VOLUME, SHALL TAKE EFFECT IMMEDIATELY;

(B)REGULATION OF RICE EXPORTS - WHENEVER
THERE IS A CRITICAL SHORTAGE IN THE SUPPLY



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OF RICE AS CERTIFIED BY THE NFA COUNCIL, THE
PRESIDENT MAY TEMPORARILY REGULATE THE
EXPORT OF RICE FOR A LIMITED PERIOD OF TIME,
WHICH IN NO CASE SHALL EXCEED SIX (6)
MONTHS.

(C) IMPOSITION OF A SPECIAL RICE SAFEGUARD. IN
EXTREME PRICE FLUCTUATIONS AND/OR
UNEXPECTED SURGES IN THE VOLUME OF
IMPORTED RICE, THE PRESIDENT MAY,
FOLLOWING A RECOMMENDATION FROM THE
DEPARTMENT OF AGRICULTURE, IN
CONSULTATION WITH THE NFA COUNCIL, IMPOSE

— --TEMPORARY REGULATIONS OR RESTRICTIONS ON
THE VOLUME OF IMPORTED RICE FOR A
TEMPORARY PERIOD THROUGH THE IMPOSITION
OF A RICE SAFEGUARD TARIFF SUFFICIENT IN
LEVEL TO ADDRESS THE SITUATION.

WITHIN NINETY (90) DAYS UPON THE EFFECTIVITY
OF THIS ACT, THE DEPARTMENT OF AGRICULTURE

-- SHALL ISSUE SUCH RULES AND REGULATIONS AS

MAY BE NECESSARY TO IMPLEMENT THIS SPECIAL
RICE SAFEGUARD PROVISION.”

SECTION 9. Section 8 of Republic Act No. 8178, as amended by RA
10848 of 2016, is the new Section 11, and is hereby amended, to read as

follows:

“SEC. 11. 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



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duties collected from the importation of agricultural products,
EXCEPT RICE, under the 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 release shall not be
subject to any ceiling by the Department of Budget and
Management (DBM).

XXX”

SECTION 10. A new Section 12 is hereby inserted, to read as follows:

“SEC._12.. RICE COMPETITIVENESS ENHANCEMENT
FUND. THE RICE COMPETITIVENESS ENHANCEMENT FUND,
HEREIN REFERRED TO AS THE ‘RICE FUND,’ IS HEREBY
‘CREATED FOR THE PURPOSE PROVIDED HEREIN. THE RICE
FUND SHALL CONSIST OF ALL DUTIES COLLECTED FROM
THE IMPORTATION OF RICE UNDER THIS ACT AND SHALL
BE AUTOMATICALLY CREDITED TO A SPECIAL ACCOUNT IN
THE GENERAL FUND OF THE NATIONAL TREASURY WHICH
SHALL BE IN PLACE WITHIN NINETY (90) DAYS UPON THE
EFFECTIVITY OF THIS ACT.

UNLESS OTHERWISE EXTENDED BY LAW, THE RICE
FUND SHALL BE IN PLACE FOR THE FIRST TEN (10) YEARS
UPON THE IMPLEMENTATION OF THIS ACT, AFTER WHICH
THE EARMARKING OF THE AMOUNT COLLECTED FOR THE
PURPO! OF WHICH IT IS INTENDED SHALL TERMINATE.
HOWEVER, ANY REMAINING BALANCES AT THE DATE OF
THE EXPIRATION OF THE EARMARKING FOR THE FUND
SHALL NOT REVERT TO THE GENERAL FUND BUT SHALL



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CONTINUE TO BE USED FOR THE PURPOSE FOR WHICH IT
WAS EARMARKED AND SET ASIDE.

THE AMOUNT COLLECTED SHALL BE ALLOCATED AND
DIVIDED AMONG THE PROVINCES PRODUCING PALAY IN
ACCORDANCE WITH THE VOLUME OF PALAY PRODUCTION.
THE DEPARTMENT OF BUDGET AND MANAGEMENT, IN
CONSULTATION WITH THE DEPARTMENT OF AGRICULTURE,
SHALL ISSUE RULES AND REGULATIONS GOVERNING THE
ALLOCATION AND DISBURSEMENT OF THIS FUND, NOT
LATER THAN ONE HUNDRED TWENTY (120) DAYS FROM THE
EFFECTIVITY OF THIS ACT.

THE. SECRETARY OF THE DEPARTMENT OF
AGRICULTURE SHALL BE THE ADMINISTRATOR OF THE
RICE FUND. THE DEPARTMENT OF AGRICULTURE, IN

"CONSULTATION WITH THE PHILIPPINE COUNCIL FOR
AGRICULTURE. AND FISHERIES AND THE NATIONAL

~~~ECONOMIC ~ DEVELOPMENT AUTHORITY, SHALL

PROMULGATE THE POLICIES AND GUIDELINES NECESSARY
FOR THE PLANNING, ADMINISTRATION, COORDINATION AND
-—._ MONITORING OF THE UTILIZATION OF THE RICE FUND.”

FUND RELEASES SHALL NOT BE SUBJECT TO ANY
CEILING BY THE DEPARTMENT OF BUDGET AND
MANAGEMENT.

ANY PROGRAM UNDERTAKEN IN ACCORDANCE WITH
THIS ACT SHALL ONLY BE DEEMED COMPLEMENTARY TO
AND SHALL NOT BE A REPLACEMENT FOR ALL AND
EXISTING PROGRAMS FOR RICE AND RICE FARMERS
ALREADY IMPLEMENTED BY THE DEPARTMENT OF
AGRICULTURE.

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SUBJECT TO THE USUAL ACCOUNTING AND AUDITING

RULES AND REGULATIONS AND THE AVAILABILITY OF
FUNDS, THE RICE FUND SHALL BE ALLOCATED AND
DISBURSED AS FOLLOWS:

A. UP TO FIFTEEN PERCENT (15%) OF THE RICE FUND
SHALL BE UTILIZED FOR PROGRAMS THAT WILL
PROVIDE HIGH-YIELDING RICE SEED VARIETIES
THRU INNOVATIVE MECHANISMS SUCH AS ROLL
OVER SCHEMES TO INCREASE PRODUCTIVITY;

B. UP TO TEN PERCENT (10%) OF THE RICE FUND
SHALL..BE USED FOR RESEARCH, DEVELOPMENT
AND EXTENSION SERVICES TO RICE FARMERS;

C. UP TO FIFTEEN PERCENT (15%) OF THE RICE FUND
SHALL BE MADE AVAILABLE AS CREDIT SUBSIDY
AND/OR GRANTS IN KIND TO SERVICE INDIVIDUAL
ELIGIBLE SMALL-SCALE RICE FARMERS AND
REGISTERED RICE COOPERATIVES IN THE FORM
OF SMALL FARM EQUIPMENT, SUCH AS
HARVESTERS, IRRIGATION PUMPS, HAND-HELD
‘TRACTORS, MILLERS, REAPERS, AND THE LIKE AS
IDENTIFIED BY DA OR OTHER RELEVANT AGENCIES
FOR PURPOSES OF IMPROVING MECHANIZATION
AND COMPETITIVENESS;

D. UP TO FIFTEEN PERCENT (15%) OF THE RICE FUND
SHALL BE USED FOR RICE CROP INSURANCE TO
PROTECT FARMERS AGAINST LOSSES ARISING
FROM PEST AND DISEASES AND CLIMATE AND
DISASTER RISKS, TO BE PROVIDED BY THE



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DEPARTMENT OF AGRICULTURE THRU THE
PHILIPPINE CROP INSURANCE CORPORATION
(PCIC);

E. UP TO FIFTEEN PERCENT (15%) OF THE RICE FUND
SHALL BE USED FOR A SPECIAL PROGRAM
EXPANDING CREDIT SERVICES TO COVER
POSTHARVEST FACILITIES AND EQUIPMENT,
LOGISTICS, STORAGE, TRANSPORTATION
VEHICLES FOR HAULING, AND TO INCLUDE
FINANCING MODERNIZATION PROJECTS FOR THE
RICE MARKETING SYSTEM AND FOR THE
STRENGTHENING OF THE RICE VALUE CHAIN.

THE LAND BANK SHALL MANAGE THE CREDIT
FACILITY FUNDED OUT OF THE FUND AND SHALL
DETERMINE THE ELIGIBILITY REQUIREMENTS AND
SET THE REQUIRED LOAN SECURITY OR
COLLATERAL AND REASONABLE INTEREST FOR
THE LOAN. FOR THIS PURPOSE, THE LAND BANK IS
HEREBY AUTHORIZED TO CHARGE A MANAGEMENT

_._ FEE FROM THE FUND, WHICH IN NO CASE BE MORE
THAN A REASONABLE AMOUNT CHARGED UNDER
SIMILAR CIRCUMSTANCES;

F. UP TO TEN PERCENT (10%) OF THE RICE FUND
SHALL BE SET ASIDE FOR PROGRAMS PROVIDING
ASSISTANCE TO RICE FARMERS WHO WANT TO
DIVERSIFY TO OTHER HIGH VALUE COMMODITIES
AND ALTERNATIVE LIVELIHOOD;

G. UP TO FIVE PERCENT (5%) OF THE RICE FUND
SHALL BE USED FOR THE PROMOTION,

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REGISTRATION AND ACCREDITATION OF RICE
FARM SCHOOLS AND RICE COMMUNITY
COOPERATIVES;

H. UP TO FIVE PERCENT (5%) OF THE RICE FUND
SHALL BE USED FOR SKILLS AND TRAINING
DEVELOPMENT ON RICE CROP PRODUCTION, RICE
FARMING TECHNIQUES AND OTHER INNOVATIONS,
RICE AGRI-ENTREPRENEURSHIP, RICE FARM
TOURISM AND ALTERNATIVE LIVELIHOOD; AND

I. UP TO TEN PERCENT (10%) OF THE RICE FUND
SHALL BE USED FOR SCHOLARSHIP GRANTS TO
RICE FARMERS AND THEIR DEPENDENTS FOR
EDUCATION, TECHNICAL AND VOCATIONAL

___TRAINING ON AGRICULTURE, AGRIBUSINESS,
AGRICULTURAL ENGINEERING, AGRICULTURAL
ECONOMICS, FORESTRY, HORTICULTURE, SOIL
SCIENCE, AGRICULTURAL RESEARCH AND OTHER
AGRICULTURAL-RELATED COURSES”.

PROVIDED, THAT 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 AND THE PHILIPPINE
DEVELOPMENT PLAN (PDP).

THE CONGRESSIONAL OVERSIGHT COMMITTEE ON
AGRICULTURAL AND FISHERIES MODERNIZATION
(COCAFM) SHALL CONDUCT A PERIODIC REVIEW OF THE
USE OF THE RICE FUND.

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SECTION 11. A new section 13 is hereby inserted, to read as follows:

SEC. 13. BENEFICIARIES AND RELEASE OF FUNDS.
THE BENEFICIARIES OF THE RICE FUND SHALL BE THOSE
FARMERS AND FARMWORKERS AND THEIR DEPENDENTS
LISTED IN THE REGISTRY SYSTEM FOR BASIC SECTORS IN
AGRICULTURE (RSBSA). WITHIN ONE HUNDRED EIGHTY
(180) DAYS FROM THE EFFECTIVITY OF THIS ACT, THE
DEPARTMENT OF AGRICULTURE, IN CONSULTATION WITH
FARMERS’ COOPERATIVES AND ORGANIZATIONS AND
LOCAL GOVERNMENT UNIT’s SHALL VALIDATE AND UPDATE
THE EXISTING RSBSA TO ENSURE THAT THOSE LISTED ARE
LEGITIMATE FARMERS AND FARMWORKERS.

SECTION 12. A new Section 14 is hereby inserted, to read as

follows:

SEC. 14. RICE INDUSTRY ROADMAP. UPON THE
‘ENACTMENT. OF THIS ACT, THE DEPARTMENT OF
AGRICULTURE, TOGETHER WITH NATIONAL ECONOMIC
DEVELOPMENT AUTHORITY, DEPARTMENT OF TRADE &
INDUSTRY, DEPARTMENT OF SCIENCE AND TECHNOLOGY,
NATIONAL IRRIGATION ADMINISTRATION, LAND BANK OF
THE PHILIPPINES, DEPARTMENT OF EDUCATION,
COMMISSION ON HIGHER EDUCATION, AND OTHER
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.

THE FOLLOWING PRINCIPLES SHALL GOVERN THE
DEVELOPMENT AND IMPLEMENTATION OF THE ROADMAP
FOR THE RICE INDUSTRY: 1) ENHANCE SUSTAINABLE
INVESTMENTS IN THE RICE INDUSTRY AND IN SUPPORT

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INFRASTRUCTURE AND POST-HARVEST FACILITIES; 2)
IMPROVE THE FARMERS’ PRODUCTIVITY, EFFICIENCY AND
PROFITABILITY, ESPECIALLY FOR SMALL FARMERS AND
LANDLESS FARMWORKERS; 3) STRENGTHEN RESEARCH
AND DEVELOPMENT PROGRAMS THAT WILL ENHANCE
RESILIENCY OF THE RICE INDUSTRY; 4) PRESERVE AND
ENHANCE THE CAPACITY OF THE FUTURE GENERATION IN
RICE PRODUCTION; 5) PROVIDE TECHNOLOGY-ORIENTED,
ACCESSIBLE AND FARMER SPECIFIC SUPPORT SERVICES
THAT COVER THE WHOLE VALUE CHAIN; AND 6) SET UP
RESPONSIBLE AND EFFECTIVE GOVERNANCE MECHANISMS.

SEC. 13. The succeeding sections of Republic Act No. 8178, as
amended, otherwise known as the “Agricultural Tariffication Act” are hereby

renumbered accordingly.

SEC. 14. 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.

SEC. 15. Repealing Clause. - All laws, decrees, executive issuances,
rules and regulations inconsistent with this Act are hereby repealed or
modified accordingly.

SEC. 16. Effectivity. - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general

circulation.

Approved,

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