The Tariff Commission (TC) has launched an investigation to determine the merits of a proposal seeking to implement a uniform five-percent tariff rate on corn imports to prevent increases in pork and chicken prices.

In a notice dated June 10, the TC said it has started a probe into a petition filed by the Foundation for Economic Freedom (FEF), asking the government to adopt a five-percent most-favored-nation (MFN) tariff rate on corn, replacing the current minimum access volume (MAV) mechanism.

The TC said all interested parties may submit their positions on the petition until June 22, with a public hearing to be announced later.

FEF said in a statement last April that it is seeking a reduction in tariffs on out-of-quota corn imports from the current 15 percent to five percent, thereby unifying the present tariff structure.

Under the MAV system, imported corn can enter the country at a lower five-percent tariff within a quota of 216,940 metric tons (MT), while a 15-percent tariff is imposed on shipments outside the quota.

“By improving access to imported corn through a uniform tariff structure, the market becomes more responsive to fluctuations in demand, ensuring a steadier and more reliable supply of feed inputs,” FEF said.

The group said the proposed tariff reform intends to reduce the cost of producing animal feed, which accounts for up to 70 percent of production costs in poultry and swine production.

Since corn accounts for up to 65 percent of animal feed formulations, FEF said lowering the cost of corn will eventually result in lower pork and chicken prices.

Despite removing the MAV system, the group said the proposed tariff modification would be calibrated in a manner that would prevent harm to local corn farmers.

“By lowering feed costs, the reform strengthens downstream demand for agricultural inputs, supports feed mill operations, and enhances the viability of poultry, livestock, and aquaculture producers,” FEF said.

Sought for comment, Department of Agriculture (DA) Secretary Francisco Tiu Laurel said he is more in favor of keeping the MAV system than reforming the MFN tariff rate on corn imports.

The DA chief said last month that the government would soon release a policy expanding the MAV for imported corn to help stabilize supply and temper price increases.

FEF has said that a wider MAV could entrench discretion-based allocation, which may result in rent-seeking, favoritism, and regulatory capture.

The group argued that the quota system “concentrates the power to determine who may import and in what volume,” a structure it said is prone to unequal access and favoritism in decision-making.