QuestionsQuestions (EXECUTIVE ORDER NO. 213)
EO 213 amends the definition of “bulk containers” for milk imports under EO 49, thereby adjusting when milk qualifies for the lower tariff rate intended for bulk shipments.
EO 49’s intent (as cited by EO 213) is to grant a lower tariff of 10% ad valorem to milk imported in bulk containers as compared to 20% ad valorem for milk imported in retail containers.
EO 213 changes the minimum gross weight requirement for milk in bulk containers from at least 25 kgs. (under EO 49, as stated in the text) to 20 kgs. or more.
It states that Philippine standards on radioactive contamination require the industry to seek alternative milk sources; e.g., the U.S. standard packing is 50 lbs. (~22.7 kgs.), which previously fell short of a 25 kg bulk threshold.
EO 213 references “04.02” for “Milk and cream, preserved, concentrated or sweetened.” It further specifies the subheading for “Milk (other than whey), in powder or granules containing not more than 1.5% by weight of fat.”
10% ad valorem, for milk in bulk containers of gross weight 20 kgs. or more.
It applies to a specific form/product description under heading 04.02: “Milk (other than whey), in powder or granules containing not more than 1.5% by weight of fat,” when in bulk containers meeting the gross weight threshold.
Section 2 provides that upon effectivity, the article entered or withdrawn from warehouses in the Philippines for consumption shall be subject to the rate of import duty prescribed in EO 213.
It states that all rates of import duty and classifications of other articles under EO 49 not affected by Section 1 remain in full force and effect.
It repeals and modifies laws, orders, issuances, rules, and regulations, or parts thereof, that are inconsistent with EO 213.
It takes effect immediately (as stated in Section 5).
Whether the milk was imported “in bulk containers” meeting the gross weight criterion of “20 kgs. or more,” for the covered product description under the referenced tariff heading.
Yes, because 22.7 kgs. is 20 kgs. or more, the shipment would meet the gross weight threshold for bulk containers under EO 213 for the specified product category.
It shows that compliance requirements (e.g., radioactive contamination standards) can shift sourcing patterns, which can then prompt amendments to tariff definitions to maintain the intended tariff incentives for bulk imports.
For articles entered or withdrawn from warehouses for consumption after effectivity, customs duty should be computed using the rate and classification amended by EO 213 for the affected milk in bulk containers.