EO 105: Modifying Import Duty Rates on Rice
Legal question
How is the rice import duty rate set after Executive Order No. 105?
Applicable laws and rules to discuss
- Executive Order No. 105, modifying rice import duty rates
- Republic Act No. 11203, the Rice Tariffication Law
- Republic Act No. 10863, the Customs Modernization and Tariff Act
Why this matters
Since the Rice Tariffication Law replaced import quotas with tariffs, the tariff rate is the main lever government has to balance cheap rice for consumers against fair prices for local farmers. EO 105 stops setting that rate by hand and ties it to a formula instead.
The rate now moves with world prices
EO 62's rates were maintained until 31 December 2025. Beginning 01 January 2026, the MFN rates of duty on rice move inversely to international rice prices: increased by five percentage points for every five percent decrease in international prices, and decreased by five percentage points for every five percent increase. The rate is banded — in no case below 15% or above 35%, for both in-quota and out-quota rice.
Who pulls the trigger
An Inter-Agency Group on Rice Tariff Adjustment is created to formulate implementing guidelines, composed of representatives from the Department of Economy, Planning, and Development, the DA, the DTI, the DOF, and the Office of the Special Assistant to the President for Investment and Economic Affairs. The guidelines must fix the thresholds and the monitoring period, with the DA certifying when trigger price levels have been reached. Note that OSAPIEA was subsequently abolished by Executive Order No. 108 in January 2026, so this membership has been overtaken by events.
Who this affects
Licensed rice importers and retailers should track the certified trigger levels rather than watching for a new executive order each time, since adjustments now follow automatically once the DA certifies a threshold has been crossed.
Ask PHLaw.AI
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