President Ferdinand R. Marcos Jr. on Thursday ordered the modification of nomenclature and tariff rates on various products to ensure continuous supply of goods and to protect the purchasing power of Filipinos.
In issuing Executive Order No. 62, President Marcos acknowledged the need for a new multi-year and comprehensive tariff schedule that will provide transparent and predictable tariff structure.
The new tariff schedule will also allow businesses to engage in medium to long-term planning to improve productivity and competitiveness, facilitate trade and enhance consumer welfare.
“The implementation of an updated comprehensive tariff schedule aims to augment supply, manage prices, and temper inflationary pressure of various commodities, consistent with the Philippine national interest and the objective of safeguarding the purchasing power of Filipinos,” President Marcos said in the EO signed by Executive Secretary Lucas Bersamin.
Among the salient features of EO 62 include the maintenance of the current Most Favored Nation (MFN) tariff rates, ranging from 0 percent to 65 percent, on various agriculture and industrial products including natural gypsum and anhydrite; frozen potato fries; various agricultural products (onions, shallots, garlic, broccoli, carrots, cabbage, lettuce, sweet potatoes, and cassava); coffee and coffee substitutes, and salt.
Used in trade treaties for hundreds of years, the MFN clause requires a country providing a trade concession to one trading partner to extend the same treatment to all.
Reduced rates of duty on maize at 5 percent in-quota rate and 15 percent out-quota rate; meat of swine at 15 percent in-quota rate and 25 percent out-quota rate; and mechanically deboned meat (MDM) of chicken and turkey at 5 percent will be maintained.
The order also formally reduced the tariff rate on rice to 15 percent in-quota and out-quota rate from 35 percent. There is also reduction of the tariff rates on solid sodium hydroxide, zinc peroxide, and clinical trial kits to 3 percent and coal briquettes to 0 percent.
It also features merging of tariff lines on certain chemical and chemical products, textile, and machinery and transport equipment.
Also, the current reduced rates of duty (0 percent to 1 percent) on products covered under EO No. 12 (s. 2023), will be maintained and there will be expanded coverage to include e-motorcycles, e-bicycles, hybrid and plug-in hybrid electric vehicles, battery, hybrid and plug-in hybrid e-buses and e-jeepneys, completely knocked down e-vehicles of all types, and nickel metal hydride accumulators.
The NEDA Board endorsed last June 3 the modification of the nomenclature and rates of import duty on various products for years 2024 to 2028.
The comprehensive tariff schedule will apply upon effectivity until December 31, 2028.
As may be necessary or directed by the President, the comprehensive or specific MFN tariff rates will be subject to periodic review, except for MFN tariff rates for rice which will be subject to review every four months from effectivity of the EO. PND
