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A temporary reduction in import duties on pork, corn, rice, and coal has been extended for another year by President Ferdinand Marcos, Jr.
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Marcos issued Executive Order No. 10 reducing the most favored nation rates of fresh, chilled or frozen swine meat, corn, rice, and coal until December 31, 2023
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EO 10 says there is a need to extend effectivity of the reduced tariff to maintain affordable prices
President Ferdinand Marcos Jr. extended for another year a temporary reduction in import duties on pork, corn, rice, and coal.
Executive Order No. 10, signed on December 29, 2022 and released on January 3, reduced the most favored nation (MFN) rates of fresh, chilled or frozen swine meat (pork), corn, rice, and coal until December 31, 2023. The EO covers articles stored in or withdrawn from warehouses in the Philippines for consumption.
For pork, the in-quota MFN duty is 15% while out-quota is 25%. For rice, in-quota and out-quota MFN rates are both 35%.
For corn, the in-quota MFN rate of duty is 5% and out-quota, 15%. For coal, the MFN rate is 0%.
From January 2024, the rates of duty will revert 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 its type.
EO 10 said there is a need to extend the effectivity of the reduced tariff rates on rice, corn, coal, and pork “to maintain affordable prices … [ensure] food security, help augment the supply of basic agricultural commodities, and diversify the country’s market sources, among others.”
The order noted that 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 pork, cause uncertainty in the steady supply of these commodities.
“The high inflation caused by supply constraints, expected shortage in the global supply and rise in international commodity prices present economic and trade implications [for] the country and the Filipino people,” the EO said.
From its effectivity date, all articles covered by EO 10 that will be stored or withdrawn from warehouses in the Philippines for consumption will be levied the reduced MFN rates of duty.
The tariff rates for coal will be subject to a semestral review after December 31, 2023. For this purpose, EO 10 mandates the National Economic and Development Authority (NEDA) Committee on Tariff and Related Matters to submit to the President its findings and recommendations on the matter, including analysis and monitoring of the coal market.
Except as expressly modified, all other provisions of EO 171, which temporarily reduced duties for pork, corn, rice, and corn until December 31, 2022, will remain in effect.
EO 10 takes effect 15 days after its publication in the Official Gazette or a newspaper of general circulation.
