President Ferdinand "Bongbong" Marcos Jr. has ordered to extend the temporary modification of rates of import duty on various food products to maintain affordable prices and help augment the supply of basic agricultural commodities.
Through Executive Order (EO) No. 10, signed by the President on Dec. 29, meat of swine, fresh, chilled or frozen, maize, rice, and coal shall be subject to the most favoured nation (MFN) rates of duty until Dec. 31, 2023, except for coal which shall be applied zero duty beyond Dec. 31, 2023.
“The current global economic situation brought about by the Covid-19 pandemic, as well as other factors affecting the country’s traditional sources of rice, corn, coal, and fresh, chilled or frozen meat of swine, cause uncertainty in the steady supply of said commodities,” the EO read.
“The high inflation caused by supply constraints, expected shortage in the global supply and rise in international commodity prices present economic and trade implications to the country and the Filipino people,” it further stated.
The order extends the reduced rates of duty on the following commodities: meat of swine, fresh, chilled, or frozen at 15 percent (in-quota) and 25 percent (out-quota); corn at 5 percent (in-quota) and 15 percent (out-quota); rice at 35 percent (in-quota and out-quota); and coal at zero duty.
According to the EO, there is a need to extend the effectivity of the reduced tariff rates on rice, maize, coal, and meat of swine (fresh, chilled, or frozen) to maintain affordable prices for the purpose of ensuring food security, help augment the supply of basic agricultural commodities in the country, and diversify the country’s market sources, among others.
Upon effectivity of the EO, all articles specifically listed, which are entered into or withdrawn from warehouses in the Philippines for consumption, shall be levied the MFN rates of duty as prescribed therein.
The tariff rates on coal shall be subject to a semestral review after Dec. 31, 2023.
Under the EO, the National Economic and Development Authority (NEDA) Committee on Tariff and Related Matters shall submit to the President, through the Office of the Executive Secretary, its findings and recommendations on the matter, including analysis and monitoring of the coal market.