Palace extends 15% rice import tariff

Palace extends 15% rice import tariff | Daily Tribune

Malacañang on Sunday issued Executive Order 105, extending the 15 percent tax on imported rice until 31 December 2025, while creating an inter-agency body to monitor and adjust rice tariffs in response to international market changes.

Under EO 105, President Ferdinand “Bongbong” R. Marcos Jr. also set provisions for tariff adjustments starting 1 January 2026, linking duty rates to fluctuations in global rice prices.

Tariffs may range from 15 to 35 percent, increasing or decreasing by five percentage points for every five-percent change in international rice prices. The order clarifies that rates cannot fall below 15 percent or exceed 35 percent.

“Section 2 provides that the MFN (Most Favored Nation) rates of duty on rice, both in-quota and out-quota, under EO 62 (modifying the nomenclature and rates of import duty on various products) shall be maintained until 31 December 2025,” EO 105 states.

The executive order also establishes the Inter-Agency Group on Rice Tariff Adjustment (GRTA), composed of representatives from the Department of Economy, Planning, and Development (DEPDev), Department of Agriculture (DA), Department of Trade and Industry (DTI), Department of Finance (DOF), and the Office of the Special Assistant to the President for Investment and Economic Affairs.

The group is tasked with formulating guidelines to implement EO 105, including determining price thresholds, certification of trigger levels by the DA, monitoring periods, and other operational details for tariff adjustments.

The legal basis for the move includes the Philippine Constitution, which mandates trade policies that serve the general welfare, as well as Republic Act 10863 (Customs Modernization and Tariff Act) and Republic Act 8178 (Agricultural Tariffication Act).

These laws empower the President to adjust import duties, including those on rice, within limits set by the World Trade Organization and the ASEAN Trade in Goods Agreement.

Previously, EO 62 set the MFN rice tariff at 15 percent for both in-quota and out-quota imports, with reviews every four months.

The Economy and Development Council has now resolved to maintain this rate until the end of 2025 and implement a mechanism for adjusting MFN tariffs based on global price movements starting 1 January 2026.