Tuesday, January 25, 2022
HomeCustoms & TradeBOC collects P17.9B in duties from P51.4B rice imports

BOC collects P17.9B in duties from P51.4B rice imports

  • The Bureau of Customs collected P17.9 billion in duties from 2.8 million metric tons of rice shipments worth P51.37 billion that entered the country from January 1 to December 10, 2021
  • Import duties increased 21.9% while the volume of rice imports grew by 487.9% and revenues by 475.8%
  • From January 1 to December 10, 2021, the volume of rice imports totaled 2.797 million MT, up from 2.266 million MT during the same period last year

The Bureau of Customs (BOC) collected P17.9 billion in duties from 2.8 million metric tons (MT) of rice shipments worth P51.37 billion that entered the country from January 1 to December 10, 2021.

In his report to Finance Secretary Carlos Dominguez III, Customs Commissioner Rey Leonardo Guerrero said that based on preliminary data, import duties collected from January 1 to December 10 rose by 21.9% from P14.72 billion during the same period in 2020.

The volume of rice imports also grew by 487.9% during the period, while revenue increased by 475.8%.

“Cumulatively, it grew by 23.4% in volume and 21.9% in revenue,” Guerrero said.

For the same period in review, the volume of rice imports totaled 2.797 million MT, up from 2.266 million MT year-on-year.

Rice import volumes reached 118,656 MT from 20,181 MT in 2020.

Guerrero said that with the price of rice in the world market on a decline since May 2021, the average value of rice per MT dropped by 1.7% to P18,532 per MT for the period January 1-December 10, 2021 compared to the P18,854 per MT during the same period last year.

Import duties collected from rice imports beginning March 5, 2019 go to the annual P10-billion Rice Competitiveness Enhancement Fund (RCEF) as provided under Republic Act (RA) No. 11203 or the Rice Tariffication Law. The law has led to a shifting of the country from quantitative restrictions to tariffs, resulting in a surge in importation of the staple.

The RCEF is used to finance programs designed to improve the competitiveness of palay (rice) growers by providing them easy access to fertilizer, farm machinery and equipment, high-yield seeds and cheap credit; and offering skills training programs on farm mechanization and modern farming techniques.

Annual tariff revenues from rice imports in excess of P10 billion will be earmarked by Congress—and included in the national budget of the following year—for financial assistance to palay farmers, titling of agricultural lands, an expanded crop insurance program for rice, and crop diversification.

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