Philippines. Gov’t issues rules for importation of 805,000 MT of rice under MAV

30.05.2018

Private traders can soon import as much as 805,000 metric tons (MT) of rice via the Minimum Access Volume (MAV) scheme of the World Trade Organization (WTO) after the Philippine government released the general guidelines for this particular MAV importation.

Slapped with a lower tariff, MAV refers to the volume of commodities that are allowed to be imported by a member country as a commitment to WTO.

Rice importation under this new program is pursuant to Republic Act No. 8178, or an act replacing quantitative import restrictions (QR) on agriculture products, except rice, with tariffs.

To compensate for the expiration of QR, the Philippine government unilaterally extended the MAV commitments of 805,200 metric tons (MT) and corresponding tariff concessions to maintain special treatment through Executive Order No. 23 (EO 23).

The MAV and tariff concessions will remain in place until December 31, 202,0 or until an amendment to the Agricultural Tariffication Act (which exempts rice from tariffication) is passed.

All rice to be imported under this MAV importation shall be levied with 35 percent tariff to be paid in advance with the Land Bank of the Philippines.

The NFA has also divided the shipment of rice imports into two phases. In particular, the first shipment should arrive in the country from July 1, 2018, until August 31, 2018, while the last shipment should be here by December 20, 2018, until February 28, 2019.

Under the guidelines, rice traders are only allowed to source from countries with a specific quota and from omnibus origin or other rice-producing countries.

For the MAV Country Specific Quota (MAV-CSQ), traders may import from these countries: China (50,000 MT), India (50,000 MT), Pakistan (50,000 MT), Australia (15,000 MT), El Salvador (4,000 MT), Thailand (293,100 MT), and Vietnam (293,100).

Then another 50,000 MT can be obtained from any country under MAV Omnibus Origins (MAV-OMB).

Importers must import well-milled rice with quality of 25% brokens or better.

The MAV importation is on top of the importation of 500,000 MT of rice through a government-to-government and government-to-private bidding that just recently took place.


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