The rice tariff cut was formalized through Executive Order No. 62 which also ordered the modification of nomenclature and tariff rates on various products to ensure continuous supply of goods and to protect the purchasing power of Filipinos.
By issuing the order, Marcos acknowledged the need for a new multi-year and comprehensive tariff schedule that will provide transparent and predictable tariff structure.
The new tariff schedule, he said, will also allow businesses to engage in medium to long-term planning to improve productivity and competitiveness, facilitate trade and enhance consumer welfare.
“The implementation of an updated comprehensive tariff schedule aims to augment supply, manage prices, and temper inflationary pressure of various commodities, consistent with the Philippine national interest and the objective of safeguarding the purchasing power of Filipinos,” Marcos said in the EO signed by Executive Secretary Lucas Bersamin.
Among the salient features of EO 62 include the maintenance of the current Most Favored Nation (MFN) tariff rates, ranging from zero percent to 65 percent, on various agriculture and industrial products including natural gypsum and anhydrite; frozen potato fries; various agricultural products (onions, shallots, garlic, broccoli, carrots, cabbage, lettuce, sweet potatoes, and cassava); coffee and coffee substitutes, and salt.
Used in trade treaties for hundreds of years, the MFN clause requires a country providing a trade concession to one trading partner to extend the same treatment to all.
Reduced rates of duty on maize at five percent in-quota rate and 15 percent out-quota rate; meat of swine at 15 percent in-quota rate and 25 percent out-quota rate; and mechanically deboned meat (MDM) of chicken and turkey at five percent will be maintained.
There is also a reduction of the tariff rates on solid sodium hydroxide, zinc peroxide, and clinical trial kits to three percent and coal briquettes to zero percent.
The order also features merging of tariff lines on certain chemical and chemical products, textile, and machinery and transport equipment.
The current reduced rates of duty (zero percent to one percent) on products covered under EO No. 12 (s. 2023), will be maintained and there will be expanded coverage to include e-motorcycles, e-bicycles, hybrid and plug-in hybrid electric vehicles, battery, hybrid and plug-in hybrid e-buses and e-jeepneys, completely knocked down e-vehicles of all types, and nickel metal hydride accumulators.
Under the order, the comprehensive tariff schedule will apply upon effectivity until Dec. 31, 2028.
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