-
Imported rice tariff collections rose 14% to P8.35 billion in the first five months of 2022
-
The increase came from a 37% jump in imported rice volume to 1.43 million metric tons
-
The increased volume kept BOC’s rice import duty collections on track despite a steady drop rice prices on the world market
Rice import duties collected by the Bureau of Customs (BOC) rose 14% to P8.35 billion in the first five months of 2022 from P7.32 billion during the same period last year as the country increased its rice imports by more than a third.
The duties came from 1.43 million metric tons (MT) of the grain imported from January 1 to May 31, up 36.9% from the 1.04-million MT import volume during the same period last year, BOC said in a report to Finance Secretary Carlos Dominguez III.
Customs Deputy Commissioner Edward James Dy Buco said increased rice import volumes kept BOC’s rice import duty collection on track despite a steady drop in the grain’s average price on the world market to P16,712 per MT in January-May this year, down 16.3% from P19,977 per MT for the same period last year.
Dy Buco told a recent meeting of the Department of Finance Executive Committee (Execom) that “for the period May 1-31, 2022, the volume of rice imports increased by 18.8% to 290,979 MT from 245,033 MT last year, and revenue grew by 3.2% to P1.7 billion from P1.65 billion last year.”
Under Republic Act No. 11203, or the Rice Tariffication Law, rice import duty collection go to the Rice Competitiveness Enhancement Fund (RCEF). The law took effect on March 5, 2019.
Collections in excess of the P10 billion fund go to the Rice Farmer Financial Assistance.
Dy Buco said that, for pork, presidential orders cutting tariff and increasing the allowable import volume of this commodity are issued from time to time.
From April 1 last year to May 31 this year, BOC had collected P5.8 billion in duties from a total volume of 353 million kilograms (kg) of imported pork, he said.
Out of this volume, 125 million kg was processed from January 1 to May 31. This volume was 32% higher than the 94.93 million kg reported in the same period last year, he said.
From April 9, 2021 to May 31, 2022, BOC estimates that it had lost P5.2 billion in expected import duties from pork shipments during this period.
President Duterte has issued executive orders effective April 7, 2021 lowering pork import tariffs and increasing the allowable import volumes of the meat.
These directives were meant to help check inflation by boosting the supply of pork and stabilizing its retail price in the domestic market after the outbreak of the African Swine Fever hurt domestic hog production.
EO 128, which lowered pork import tariffs to 5% within its minimum access volume (MAV) and 15% outside MAV for the first three months, took effect from April 7 to May 14, 2021.
EO 134, which superseded EO 128 and took effect on May 17 last year, set tariffs on pork imports within the MAV to 10% for the first three months, and 15% in the next nine months.
President Rodrigo Duterte extended until December 31, 2022 the temporary cut in rice and meat import duties under Executive Order No. 171. At the same time, tariffs on imported corn and coal were reduced until December 31.
