The Tariff Commission has announced the conduct of public hearing on the temporary removal of the most-favored-nation (MFN) rates on certain imported electric vehicles, and parts and components.
This is in line with the passage of the Electric Vehicle Industry Development Act (EVIDA), which seeks to develop the EV industry in the country. The hearing is set on Thursday, May 12.
In its notice, the TC said the tariff rates to be brought down to zero involve six AHTN (ASEAN Harmonized Tariff Nomenclature) 2017 Subheadings. Most of these items carry a 30 percent tariff rate.
AHTN 2017 subheadings 87.02 includes motor vehicles for the transport of ten or more persons, including the driver, while 87.03 are motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars, and subheading 87.04 motor vehicles for the transport of goods.
The remaining subheadings are 87.11 for motorcycles (including mopeds) and cycles with an auxiliary motor, with or without side-cars; 8507.60.90 lithium-ion accumulators; and subheadings 8537.10.99A/8537.10.99C for motor controllers and AC charging stations, excluding static converters.
The TC has asked interested parties to register for the public hearing via videoconferencing on or before May 11. Parties are also allowed to present evidence in support of their positions.
The Department of Trade and Industry (DTI) said the enactment of EVIDA or Republic Act No. 11697, which provides for a national policy framework to develop the electric vehicle industry in the Philippines, will make the Philippines more attractive for hi-tech investments.
“With EVIDA, the Philippines is now in a stronger position to further attract hi-tech investments and create high-value jobs in the country by taking advantage of the ongoing global shift to EVs through strong national policy support,” said Trade and Industry Secretary Ramon Lopez.
Lopez also considers the measure a move towards lessening direct usage of oil products in transport, thus, signifying reducing air and noise pollution in urban areas. This will also reduce the transportation sector’s direct dependence on oil, especially amidst rising fuel prices affecting both businesses and consumers
EVIDA aims to promote innovation in the field of clean energy and sustainable transportation while developing a sunrise industry in the country and generating more employment. It sets clear policy directions for the government to raise EV awareness, streamline regulations, boost local demand that should attract EV production, and build a robust EV charging infrastructure. The law also mandates the crafting of a Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), which will be a national development plan for the EV industry to accelerate the development, commercialization, and utilization of EVs.
EVIDA will also serve as a blueprint for a comprehensive and coordinated policy direction among national government agencies in terms of promoting EV to ensure investors’ confidence and attract EV-related investments.
As provided by the law, the Board of Investments (BOI) is tasked to craft an Electric Vehicle Incentive Strategy (EVIS) similar to the Comprehensive Automotive Resurgence Strategy Program (CARS Program) which shall provide fiscal and non-fiscal incentives to narrow the production cost gap between EVs and traditional vehicles and achieve local EV production targets by 2030.
EVIDA is among DTI’s priority legislative agenda for the 18th Congress. This, together with the passage of other economic bills supported by DTI, will strengthen the Philippine government’s efforts to accelerate industrial recovery and enhance the country’s national competitiveness.