AN ACT AMENDING REPUBLIC ACT NO. 8178 OR THE "AGRICULTURAL TARIFFICATION ACT", AS AMENDED BY REPUBLIC ACT NO. 11203

Nineteeth Congress
Third Regular Session

[ REPUBLIC ACT NO. 12078, December 06, 2024 ]

AN ACT AMENDING REPUBLIC ACT NO. 8178 OR THE "AGRICULTURAL TARIFFICATION ACT", AS AMENDED BY REPUBLIC ACT NO. 11203

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Section 3(e) of Republic Act No. 8178 or the "Agricultural Tariffication Act", as amended by Republic Act No. 11203, is hereby further amended to read as follows:

"Section 3. Definition of Terms. - The following definitions apply to the terms used in this Act:

Section 2. New Sections 5 and 6 are hereby inserted after Section 4 of Republic Act No. 8178, as amended by Republic Act No. 11203, to read as follows:

"Section 5. Strengthening the Regulatory Function of the Department of Agriculture (DA). - The DA, through the Bureau of Plant Industry (BPI), is hereby authorized to:

The DA-BPI shall exercise the aforementioned powers in addition to its existing powers related to sanitary and phytosanitary and food safety standards.

Upon request of the DA-BPI, the local government units (LGUs), the Philippine National Police, the National Bureau of Investigation, or other law enforcement agencies shall provide prompt response and assistance in the implementation of this section.

Section 6. Powers of the DA on Rice Price Stabilization and Supply Regulation. - The DA Secretary, upon recommendation of the National Price Coordinating Council (NPCC), shall declarer a food security emergency on rice due to supply shortage or extraordinary increase in prices.

The NPCC shall devise a formula for determining the existence of a rice supply shortage or an extraordinary increase in rice prices. When such conditions occur, the DA may:

The DA shall maintain a buffer fund for food security emergencies on rice. For this purpose, the amount of Five billion pesos (P5,000,000,000.00) from any current unutilized portion of the DA budget shall not revert to the National Treasury but shall instead be credited to the buffer fund: Provided, That any excess in the annual tariff collection from the importation of rice not exceeding Two billion pesos (P2,000,000,000.00) shall be credited to the buffer fund: Provided, further, That the proceeds of the sale under paragraph (a) of this section shall revert to the DA buffer fund."

Section 3. Section 7 of Republic Act No. 8178, as amended by Republic Act No. 11203, is hereby further amended as follows:

Section 4. Section 8 of Republic Act No. 8178, as amended by Republic Act No. 11203, is hereby further amended as follows:

"Section 11. Maintenance and Disposal of Rice Buffer Stock. - The NFA shall, in accordance with rules, regulations, and procedures, maintain an optimal rice buffer stock to be sourced exclusively from local farmers.

The NFA shall dispose of its rice buffer stock one (1) month before the aging period starts, following the first in, first out method.

The aging process begins three (3) months from storage for rice and six (6) months from storage form palay.

In both cases, disposal through sale shall be through public auction."

Section 5. Section 13 of Republic Act No. 8178, as amended by Republic Act No. 11203, is hereby further amended as follows:

Section 6. Section 14 of Republic Act No. 8178, as amended by Republic Act No. 11203, is hereby further amended as follows:

"Section 17. Beneficiaries of the RCEF. - The beneficiaries of the RCEF shall be those farmers and farmworkers listed in the RSBSA and rice cooperatives and associations accredited by the DA. Within one hundred eighty (180) days from the effectivity of this Act and every year thereafter, the DA, in consultation with farmers' cooperatives and organizations and LGUs, shall validate and update the master list of eligible beneficiaries to ensure that those listed are legitimate farmers, farmworkers, and rice cooperatives and associations.

x x x."

Section 7. Separability Clause. - If any provision of this Act is declared unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

Section 8. Repealing Clause. - All laws, presidential decrees, executive orders, letters of instruction, proclamations, or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Section 9. Effectivity. - This Act shall take effect after fifteen (15) days following its publication in the Official Gazette or in a national newspaper of general circulation.

Approved,

This Act, which is a consolidation of Senate Bill No. 2779 and House Bill No. 10381, was passed by the Senate of the Philippines and the House of Representatives on September 25, 2024.

Approved: DEC 06 2024

(SGD.) FERDINAND ROMUALDEZ MARCOS JR.
President of the Philippines

x x x

(e) 'Buffer Stock' refers to the optimal level of rice inventory to sustain the disaster relief programs of the government during natural or man-made calamities and to address food security emergency situations on rice.

x x x."

"Section 9. Powers of the President. - x x x

"Section 16. Rice Competitiveness Enhancement Fund (RCEF). - There is hereby created a Rice Competitiveness Enhancement Fund, which shall be sourced from all tariffs collected from the importation of rice. The RCEF shall consist of an annual appropriation of Thirty billion pesos (P30,000,000,000.00) until the year 2031, following the approval of this Act, and shall be automatically credited to a Special Account in the General Fund of the National Treasury which shall be established within ninety (90) days from the effectivity of this Act.

x x x

The amount allocated shall be released directly to the implementing agencies as provided in this Act based on the objectives and plans of the rice industry roadmap: Provided, That the unutilized portion of the RCEF allocated to the implementing agencies and collections from repayments by loan beneficiaries including interests, if any, shall not revert to the General Fund: Provided, further, That any excess in the annual tariff collection of Thirty billion pesos (P30,000,000,000.00) shall be added to the RCED and allocated and disbursed to the implementing agencies following the allocation provided in this section: Provided, finally, That if the annual tariff collection from imported rice falls below Thirty billion pesos from imported rice falls below Thirty billion pesos (P30,000,000,000.00), the deficiency shall be sourced from the DA budget as provided in the General Appropriations Act, subject to the guidelines issued by the Department of Finance (DOF). Fund releases charged against the RCEF shall not be subject to any ceiling by the Department of Budget and Management (DBM).

Subject to the usual accounting and auditing rules and regulations, the RCEF shall be allocated and disbursed to rice-producing areas, as follows: