MANILA -- President Ferdinand Marcos Jr. has ordered the creation of an inter-agency body tasked to implement a rice import tariff mechanism that will adjust rice import duties based on international market conditions beginning next year.
Marcos Jr. signed Executive Order No. 105 on November 7. It mandates the formation of the Inter-Agency Group on Rice Tariff Adjustment and effectively amended Executive Order number 62 that set the Most Favored Nation (MFN) tariff rates on rice at 15% for both in-quota and out-quota and is subject to review every four months.
The group will be composed of representatives from the Department of Economy, Planning, and Development (DEPDev), Department of Agriculture, Department of Trade and Industry, Department of Finance and Office of the Special Assistant to the President for Investment and Economic Affairs.
The inter-agency body is directed to formulate the guidelines in implementing the tariff rate adjustment including the "determination of the thresholds, certification by the agriculture department that said thresholds or trigger price levels have been reached, monitoring period, and other relevant details regarding the adjustment."
Citing the Economy and Development Council, Marcos Jr. said it is necessary to amend earlier executive order and implement a tariff mechanism specifically for rice "to ensure that government efforts and interventions will stabilize the retail prices of rice, help Filipino farmers sell their palay at a fair and reasonable price, and ensure food security in the country."
Under the newly signed EO, the MFN rates of duty on rice, both in-quota and out-quota, shall be maintained until December 31, 2025.
Beginning January 2026, the rates of rice duties will be increased by five (5) percentage points per five percent (5%) decrease in international rice prices; or decreased by five (5) percentage points per five percent (5%) increase in international rice prices.
"However, the MN rates of duty on rice, both in-quota and out-quota, shall in no case be below 15% or above 35%," it added.
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