BSP tariff collection hits P8 billion in 5 months

MANILA, Philippines — The Bureau of Customs (BOC) has collected almost P8 billion in rice import tariffs in the first five months of the year, even as trade volume declined due to the effects of the coronavirus disease 2019 (COVID-19) pandemic.

In a statement, BOC said revenues generated by the agency from rice import tariffs under the Rice Tariffication Law reached P7.955 billion from January to May 2020.

This is almost 80 percent of the BOC’s annual  rice tariff collection target of P10 billion, which will be remitted to the Rice Competitiveness Enhancement Fund (RCEF).

Data obtained by The STAR showed the May collection figure is 0.48 percent higher than the P7.917 billion collected by the BOC during the same five-month period last year. The Rice Tariffication Law only took effect in March 2019.

BOC data also indicated that the volume of rice imports in the first five months of 2020 dropped by 32.16 percent to 1.25 million metric tons from 1.85 million in the same period last year.

Sought for comment, BOC assistant commissioner Vincent Philip Maronilla said the drop in importation volume was due to the “effect of COVID-19 on the trade environment.”

Republic Act 11203 or the Rice Tariffication Law liberalized the importation of rice by imposing tariff in lieu of quantitative restrictions.

Proceeds from rice tariff collections are earmarked for the P10-billion Rice Competitiveness Enhancement Fund (RCEF), which will be used to provide cheap credit, high quality seeds, agricultural machinery and skills training to rice farmers.