Marcos extends lower import duties on pork, rice, corn, coal

BEIJING  —Through an executive order, President Ferdinand "Bongbong" Marcos Jr. has extended the temporary modification of rates of import duty on various products to maintain affordable prices and ensure supply of agricultural products.

Signed on December 29, 2022, Executive Order (EO) No. 10 states that meat of swine, fresh, chilled or frozen, maize, rice, and coal shall be subject to the Most Favored Nation (MFN) rates of duty.

“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 stated.

“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 added.

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.

In his order, Marcos said 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."

The EO said all articles specifically listed, which are entered into or withdrawn from warehouses in the Philippines for consumption, shall be levied the MFN rates of duty as prescribed therein.

Meanwhile, the tariff rates on coal shall be subjected to a semestral review after December 31, 2023.

The EO also mandates the National Economic and Development Authority (NEDA) Committee on Tariff and Related Matters to 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.

Executive Order Nos. 134 and 135 temporarily modified the MFN rates of import duty on meat of swine (fresh chilled or frozen) until May 17, 2022 and rice until June 1, 2022.

EO No. 171 extended the effectivity of the reduced tariff rates under EO Nos. 134 and 135, and reduced the tariff rates on maize and coal until December 21, 2022.—LDF, GMA Integrated News