MANILA — President Ferdinand R. Marcos Jr. has issued Executive Order No. 105 extending the 15 percent tariff rate on imported rice until December 31, 2025, and establishing an inter-agency group tasked to monitor and adjust rice import taxes based on global price movements.

Under EO 105, the Inter-Agency Group on Rice Tariff Adjustment (GRTA) will be formed to oversee and recommend tariff changes in response to international rice price fluctuations.

“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,” the order stated.

The executive order further provides that, starting January 1, 2026, the MFN tariff rates on rice will be adjusted depending on changes in world rice prices—“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 added.

The Inter-Agency GRTA will be composed of representatives from the Department of Economy, Planning, and Development (DEPDev), Department of Agriculture (DA), Department of Trade and Industry (DTI), Department of Finance (DOF), and the Office of the Special Assistant to the President for Investment and Economic Affairs.

The 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 Palace noted that the Constitution mandates the State to pursue a trade policy that serves the general welfare. It also cited Republic Act No. 10863 or the Customs Modernization and Tariff Act, which allows the President, in the interest of national welfare and security, to adjust import duties.

EO 105 likewise draws authority from Republic Act No. 8178 or the Agricultural Tariffication Act, which authorizes the President to modify import duty rates on agricultural products, including rice, under commitments made by the Philippines in international trade agreements.

EO 62, issued earlier, had set the MFN tariff rates on rice at 15 percent for both in-quota and out-quota imports, subject to review every four months.

The Economy and Development (ED) Council previously resolved to maintain the 15 percent MFN tariff rate on rice until the end of 2025 and to implement a flexible adjustment mechanism based on global market conditions starting January 2026.