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President Ferdinand R. Marcos Jr. approved the temporary modification of import duty rates on electric vehicles, parts and components
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Executive Order No.12 temporarily reduces the tariff rates on completely built up units of certain electric vehicles, except for hybrid-type EVs to zero percent for five years
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The EO said the reduction will boost the EV market, support transition to emerging technologies and encourage consumers to consider electric vehicles as a cleaner and greener transportation option
President Ferdinand R. Marcos Jr. has approved zero tariff on electric vehicles (EVs), parts and components for five years.
Marcos signed Executive Order (EO) No.12 on January 13 temporarily cutting the most-favored nation (MFN) tariff rates on completely built up (CBU) units of certain electric vehicles, except for hybrid-type EVs under Republic Act (RA) No. 10863 or the Customs Modernization and Tariff Act (CMTA).
The EO said the temporary tariff modification “will help boost the electric vehicle market in the country, support the transition to emerging technologies and encourage consumers to consider electric vehicles as a cleaner and greener transportation option.”
It noted that under Republic Act No. 11697 or the “Electric Vehicle Industry Development Act,” the state shall “ensure the country’s energy security and independence by reducing reliance on imported fuel for the transportation sector.”
It added: “The state has the paramount obligation to protect the health and well-being of the people from hazards of pollution and greenhouse gases.”
The transportation sector, EO 12 said, “is one of the country’s largest sources of air pollution and energy-related greenhouse gas emissions at 34%, with road transportation accounting for 80% of those emissions.”
Section 1618 of the CMTA empowers the President, in the interest of general welfare and national security and upon recommendation of the National Economic and Development Authority (NEDA), to increase, reduce, or remove existing rates of import duty.
On Nov. 24, 2022, the NEDA Board endorsed the temporary reduction of the MFN tariff rates on certain e-vehicles and their parts and components for a period of five years.
EO 12 also “aims to expand market sources and encourage consumers to consider acquiring EVs, improve energy security by reducing dependence on imported fuel, and promote the growth of the domestic EV industry ecosystem.”
The MFN tariff rates is subject to review after one year from implementation of the order.
