spot_img
29 C
Philippines
Thursday, March 28, 2024

Duterte signs four new EOs

- Advertisement -

President Rodrigo Duterte signed four new executive orders modifying the rates of import duty for various imported products under the Customs Modernization and Tariff Act, including information technology products; capital equipment, spare parts and accessories and and certain agricultural products.

Duterte’s Executive Order No. 20, signed on April 27 but was made available to the media on Monday, modified the multi-year tarriff schedule, including nomenclature and rates of import duty on various products under Section 1611 of the Customs Modernization and Tariff Act.

“There is a need to ensure that the high economic growth currently being enjoyed by the country is sustainable and inclusive, and will benefit future generations of Filipinos,” Duterte said in the EO.

“It is the policy of government to create an enabling environment for the growth and international competitiveness of Philippine industries that will create and preserve employment opportunities and increase incomes,” he added.

The new EO stated that a new multi-year tariff schedule will promote transparency and stability, facilitate trade and enhance consumer welfare.

- Advertisement -

“The articles specifically listed… shall be subject to MFN [Most Favored Nation] rates of import duty in accordance with the schedule indicated opposite each article,” the EO said.

Among the imported products covered under the EO were meat, dairy products, furniture, and minerals.

Executive Order No. 21, meanwhile, modified the nomenclature and rates of import duty on certain information technology products to comply with the country’s tariff commitments under the World Trade Organization-Information Technology Agreement (WTO-ITA).

The Philippines signed the ITA in 1997 and was ratified by the Senate a year after.

The ITA provided for the elimination/binding of MFN tariffs on certain IT products beginning July 1997 and ending on January 2000, with extended staging of tariff reductions for developing countries up to 2005.

“The rates of import duty on tariff headings and subheadings which are not enumerated…shall remain in force and effect,” the EO read.

Duterte also signed Executive Order No. 22, which extended the zero percent duty of capital

 equipment, spare parts and accessories imported by companies registered with the Board of Investments (BOI).

The grant of duty-free importation of capital equipment “remains to be an important fiscal incentive in promoting investments into the Philippines considering the global competition for foreign direct investments,” the EO said.

“Considering that importation of capital equipment is one of the major cost burdens of business enterprises in their start-up operations and expansion, there is a need to extend the zero duty on importation on capital equipment, spare parts, and accessories currently being enjoyed by BOI-registered enterprises,” the EO read.

Importations under BOI-registered new and expanding enterprises of capital equipment, spare parts, and accessories that are not manufactured domestically in sufficient quantity, of comparable quality, and at reasonable prices, the EO said.

“The BOI-registered enterprise cannot sell, transfer or dispose of the aforementioned equipment, machinery, spare parts and accessories, without prior BOI approval, within five years from the date of importati1on; otherwise, the BOI-registered enterprise will be solidarily liable to pay twice the amount of the duty foregone or P500,000, whichever is higher, without prejudice to other applicable penalties,” the EO said.

Executive Order No. 23 meanwhile, extended the effectivity of the MFN rates of duty on certain agricultural products to comply with the WTO decision on waiver relating to special treatment for rice of the Philippines.

During the Neda Board meeting last February, reduced rates of duty for agricultural products will be extended for three more years.

- Advertisement -

LATEST NEWS

Popular Articles