MANILA, Philippines – The Department of Finance (DOF) on Monday ordered the Bureau of Customs (BOC) to keep a tighter watch on incoming rice imports to ensure the proper collection of taxes following the implementation of tariff rate cuts.
In a statement, the DOF said Finance Secretary Carlos Dominguez III issued the directive pursuant to President Rodrigo Duterte’s Executive Order 135, which mandates the temporary adjustment of tariff rates on rice imports to offset the effect on consumers of the continuous increase in the price of rice from other countries, particularly those coming from ASEAN countries, and thereby reduce inflationary pressures.
The DOF said the EO 135 would enable the country to diversify its market sources for rice and maintain the stable supply and affordable price of the cereal for Filipino consumers.
Dominguez cited India as a possible source of cheap rice imports.
“I think there will be a shift in the imports of Thai and Vietnamese rice, and Burmese (Myanmar) rice, to rice from other countries where the value is much lower. Just keep an eye on that,” Dominguez told Customs Commissioner Rey Leonardo Guerrero during a recent executive committee meeting.
During the meeting, Guerrero said the BOC is currently reviewing the valuation of rice shipments from Vietnam, noting that most of the imports from there were “declared with values lower than the published prevailing prices for such exports from that country.”
“We discovered that many of these importations are under a tentative assessment so we are reviewing the payments,” Guerrero said.
He said the average value of rice imports, coming mostly from Vietnam, dropped 12.7 percent to P19,312 per metric ton (MT) in May 2021, compared to P22,119 per MT in the same month last year.
The average value of rice in May was also lower than the P21,066 per MT recorded in April and P22,119 per MT in March.
Guerrero previously reported increasing tariff collections despite lower import volumes because of a steady improvement in the BOC’s valuation system.
Preliminary data showed that from January 1 to April 30, a total of 804,360MT of rice shipments worth P17 billion entered the country, representing a 9.2-percent decline from the 885,645MT valued at P16.4 billion that were imported during the same period last year.