November 9, 2025
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Malacañang issued Executive Order No. 105, extending the 15 percent tax on imported rice until December 31, 2025, and establishing the Inter-Agency Group on Rice Tariff Adjustment to monitor and adjust rice import taxes in response to changes in world market prices.
President Ferdinand R. Marcos Jr.’s EO 105 also provides for tariff adjustments, effective January 1, 2026, based on movements in international rice prices, with rates ranging from 15 to 35 percent.
“Section 2 provides that the MFN (Most Favored Nation) rates of duty on rice, both in-quota and out-quota, under EO No. 62 (modifying the nomenclature and rates of import duty on various products) shall be maintained until 31 December 2025,” EO 105 added.
The order provides that “beginning 01 January 2026, the MFN rates of duty on rice shall be: increased by five (5) percentage points per five percent (5%) decrease in international rice prices; or decreased by five (5) percentage points per five percent (5%) increase in international rice prices.”
“However, the MFN rates of duty on rice, both in-quota and out-quota, shall in no case be below 15% or above 35%,” EO 105 stated.
The directive also added that Inter-Agency GRTA shall be composed of representatives from the Department of Economy, Planning, and Development (DEPDev), the Department of Agriculture (DA), the Department of Trade and Industry, the Department of Finance, and the Office of the Special Assistant to the President for Investment and Economic Affairs.
The Inter-Agency Group was directed to formulate the guidelines necessary to implement this Order, including the determination of the thresholds, certification by the DA that said thresholds or trigger price levels have been reached, monitoring period, and other relevant details regarding the adjustment of the MFN rates of duty on rice.
The Constitution provides that the State shall pursue a trade policy that serves the general welfare and Republic Act (RA) No. 10863 or the “Customs Modernization and Tariff Act” empowers the President, in the interest of general welfare and national security…to increase or reduce at any level and/or remove existing rates of import duty, in one or several stages.
RA No. 8178 or the “Agricultural Tariffication Act,” authorizes the President to increase, reduce, revise, or adjust existing rates of import duty up to the bound rate committed by the Philippines under the World Trade Agreement on Agriculture and the ASEAN Trade in Goods Agreement, including any necessary change in classification applicable to the importation of rice.
EO 62 set forth the MFN tariff rates on rice at 15% for both in-quota and out-quota, subject to review every four months.
The Economy and Development (ED) Council resolved to maintain the MFN tariff rate on rice at 15% until 31 December 2025, both for in-quota and out-quota, and to implement a mechanism for adjusting the MFN tariff rate on rice in accordance with international market conditions starting 1 January 2026.- PND
