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Duterte extends cut in rice, meat import duties until December 31, 2022
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Executive Order No. 171 also reduced tariffs on imported corn and coal until December 31
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The duties were reduced to stabilize the impact of the Russia-Ukraine war and to augment supply of the commodities in the local market
President Rodrigo Duterte extended until December 31, 2022 the temporary cut in rice and meat import duties. At the same time, tariffs on imported corn and coal were reduced until December 31.
Executive Order No. 171, series of 2022, signed on May 21 and released on May 26, covers articles entered into or withdrawn from warehouses in the Philippines for consumption.
EO 171 said there is a need to reduce tariffs on imported coal and corn to mitigate and stabilize the impact of inflationary pressures brought about by the Russia-Ukraine war by expanding supply sources and reduce the prices of key commodities.
It noted the Russia-Ukraine crisis has economic and trade implications for the country, as both countries account for 30% of global exports of wheat, 20% of corn, mineral fertilizers, and natural gas; and 11% for oil.
The increase in global prices of corn, fertilizers, and oil products generated a corresponding sharp increase in domestic prices of basic commodities and energy.
Coal is an important raw material in the power generation while corn is used as a raw material for producing animal feeds, food products, and other industrial products.
The extension of the reduced import duties on pork and rice, meanwhile, aims “to capitalize on the gains already achieved” by EOs 134 and 135, all for the purpose of augmenting the supply of these commodities in the country and maintain lower prices.
READ: Duterte cuts rice import duty, modifies pork tariffs
EO 134, issued in May 2021 and was effective until May 17, 2022, temporarily modified the most-favored nation (MFN) tariff on imported fresh, chilled, or frozen swine meat. EO 134 was issued to address the African Swine Fever outbreak’s impact on pork meat supply and prices in the Philippines.
EO 135, also issued in May last year to augment rice supply, temporarily reduced the MFN tariff on imported rice until June 1, 2022.
EO 171 noted that the National Economic and Development Authority Board last May 6 endorsed the temporary modification of the MFN rates on corn and coal, as well as the extension of rates under EOs 134 and 135.
For pork meat, in-quota MFN rate of duty is 15% while out-quota is 25%. For rice, in-quota and out-quota MFN duties are both 35%.
For corn, the in-quota MFN rate of duty is 5% and, for out-quota, 15%. For coal, the MFN rate is 0%.
Starting January 2023, the rates of duty will return to 30% (in-quota) and 40% (out-quota) for pork, 40% (in quota) and 50% (out-quota) for rice; 35% (in-quota) and 50% (out-quota) for corn; and 1% and 7%for coal, depending on the type.
EO 171 takes effect 15 days after its publcation on the Official Gazette or a newspaper of general circulation. – Roumina Pablo
