President Ferdinand R. Marcos Jr. has issued Executive Order (EO) No. 105, which extends the current 15 percent import tariff rate on rice and establishes a new mechanism for dynamic tariff adjustments based on global market fluctuations starting in 2026. The move aims to stabilize domestic rice prices while ensuring a steady supply of the staple grain.
Extension of Current Tariff Rate
EO 105 maintains the Most Favored Nation (MFN) rates of duty on imported rice—both in-quota and out-quota—at the current rate of 15 percent until December 31, 2025. This continuation of the policy set under EO No. 62 provides predictability for importers and helps ensure stable prices for consumers during the short term.
Dynamic Tariff Adjustment Mechanism (Effective January 1, 2026)
The Executive Order introduces a flexible tariff structure that will take effect on January 1, 2026. This mechanism ties the import duty directly to movements in international rice prices, with the goal of mitigating the effects of volatility in the global market.
The key features of the dynamic adjustment are:
- Tariff rates will be increased by five (5) percentage points for every five percent (5%) decrease in international rice prices.
- Tariff rates will be decreased by five (5) percentage points for every five percent (5%) increase in international rice prices.
- The MFN tariff rates will be capped, ensuring they remain in no case below 15% or above 35%.
Creation of Inter-Agency Group on Rice Tariff Adjustment (GRTA)
To oversee the implementation and monitoring of this new policy, EO 105 establishes the Inter-Agency Group on Rice Tariff Adjustment (GRTA). The group is composed of high-level representatives from key economic and agricultural agencies, including:
- Department of Economy, Planning, and Development (DEPDev)
- Department of Agriculture (DA)
- Department of Trade and Industry (DTI)
- Department of Finance (DOF)
- Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA)
The GRTA is mandated to formulate the necessary guidelines for implementing the Order, including defining price thresholds, monitoring periods, and certifying when trigger price levels have been reached to authorize tariff adjustments.
The issuance of EO 105 is consistent with the Constitutional mandate for the State to pursue a trade policy that serves the general welfare and is empowered by existing laws, including the Customs Modernization and Tariff Act (RA No. 10863) and the Agricultural Tariffication Act (RA No. 8178).
