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The Inter-Agency Group on Rice Tariff Adjustment has released the guidelines for implementing adjustments of rice import duty beginning 2026
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IAGRTA Circular No. 2025-001 is pursuant to Executive Order No. 105 provides for tariff adjustments effective January 1, 2026 based on movements in international rice prices, with rates ranging from 15% to 35%
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Beginning 2026, the most favored nation rates of duty on rice will be increased by five percentage points per 5% decrease in international rice prices, or decreased by five percentage points per 5% increase in international rice price
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The Department of Agriculture is tasked to monitor international rice prices
The Inter-Agency Group on Rice Tariff Adjustment (IAGRTA) has released the guidelines for implementing adjustments of import duty on rice beginning 2026.
IAGRTA Circular No. 2025-001 issued on December 20 is pursuant to Executive Order (EO) No. 105, which extended the 15% tax on imported rice until December 31, 2025, and provides for tariff adjustments effective January 1, 2026.
Adjustments will be based on movements in international rice prices, with rates ranging from 15% to 35%.
EO 105 also created the IAGRTA – 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 Office of the Special Assistant to the President for Investment and Economic Affairs – to formulate the guidelines necessary to implement the EO.
READ: PH rice import ban to be extended to end-2025
Under the EO, beginning January 1, the most favored nation (MFN) rates of duty on rice will be increased by five percentage points per 5% decrease in international rice prices; or decreased by five percentage points per 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%,” the EO states.
Under IAGRTA Circular No. 2025-001, for purposes of uniformity and transparency, the term international rice prices refer to the export price (in US$ Free On Board [FOB]) of Vietnam rice (5% broken) as published by the Food and Agriculture Organization (FAO) of the United Nations.
The thresholds in Section 3 of EO No. 105 should be estimated from the FAO FOB price for March 2025 as the baseline.
Under the guidelines, international rice prices should be monitored on a quarterly basis such that tariff adjustments may be made every quarter, depending on whether the threshold or trigger prices have been breached.
To determine if the trigger prices have been breached, the average monthly international rice prices (in US$ FOB) on the last month of the quarter to be monitored by DA should be compared to the threshold price range provided in IAGRTA Circular No. 2025-001.
The DA, within the first month of the current quarter, should monitor whether the trigger price has been breached based on data from the previous month.
The department will then issue a certification on the average export price of Vietnam rice (5% broken) in FOB during the previous month and the applicable tariff based on the price thresholds cited in IAGRTA Circular No. 2025-001.
A copy of the certification should be furnished to the Bureau of Customs (BOC), DEPDev, DTI, and DOF and posted immediately on the DA website.
In cases where a change in applicable tariff rate is indicated in the DA certification, BOC should issue the corresponding customs memorandum order in accordance with the schedule provided in IAGRTA Circular No. 2025-001.
The IAGRTA will undertake an annual review of the guidelines, including the baseline price, reference period, applicable period, and threshold/trigger levels to determine if there is a need to adjust the same. If changes are needed, the IAGRTA will issue amended guidelines no later than 30 days before the beginning of the year of effectivity.
READ: Philippine rice imports seen falling below 4MT in 2026
Republic Act 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 also 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. — Roumina Pablo
