The import duty on natural gypsum and anhydrite has been reduced to zero from the previous 3% for a period of five years
Natural gypsum and anhydrite are materials crucial in making plasterboards and cement used in construction
Executive Order No. 46 said the cut aims to support the housing and infrastructure projects in the Philippines
Currently, there are no active mines for natural gypsum and anhydrite in the country, and no local alternatives for domestic producers of plasterboards and cement
The import duty on natural gypsum and anhydrite, materials crucial in making plasterboards and cement used in construction, have been reduced to zero from the previous 3% for a period of five years.
Executive Order (EO) No. 46, signed by Executive Secretary Lucas Bersamin on November 3, said the cut will support housing and infrastructure projects in the Philippines.
“At present, there are no operating mines of natural gypsum and anhydrite in the country, and there are also no local substitutes for said products that are available for domestic producers of plasterboards and cement,” the EO stated.
According to Republic Act No.10863, known as the Customs Modernization and Tariff Act, the President has the authority to adjust import duty rates in the interest of general welfare and national security. This power is exercised based on recommendations from the National Economic and Development Authority. In September, the NEDA Board endorsed a reduction in the Most-Favored Nation (MFN) tariff rate on natural gypsum and anhydrite.
Once EO 46 takes effect, covered articles imported into or withdrawn from Philippine warehouses for consumption will face the MFN rate of duty specified in the order. The MFN tariff rate will be reviewed annually after December 21, 2024.
The EO becomes effective 30 days after being fully published in the Official Gazette or a widely circulated newspaper. It will remain in full force for five years from the effective date.