Question & AnswerQ&A (EXECUTIVE ORDER NO. 491)
The main purpose of Executive Order No. 491 is to certify that the production of phthalic anhydride as a preferred pioneer industry in the Philippines shall be entitled to post-operative tariff protection in the form of increased customs duty to support domestic production against competing imported items.
The Board of Investments registered Resins, Inc. as a preferred pioneer industry for the manufacture of phthalic anhydride.
The legal basis is Section 8(c) of Republic Act No. 5186, also known as the Investment Incentives Act.
- Polycarboxylic acids and their derivatives: 10% ad valorem duty - Phthalate plasticizers and esters of phthalic anhydrides: 50% ad valorem duty - Phthalic anhydrides: 30% ad valorem duty
The tariff rate may be modified in accordance with Section 401 of the Tariff and Customs Code whenever industry conditions warrant such modifications.
It takes effect thirty (30) days after the issuance of the Executive Order.
The increased customs duty aims to protect the local industry by making imported phthalic anhydride more expensive, thus encouraging local production and conserving foreign exchange resources.
Articles classified under Tariff Heading No. 29.15 of the Tariff and Customs Code, specifically: polycarboxylic acids and their anhydrides, halides, peroxides and peracids and their halogenated, sulphonated, nitrated or nitrosated derivatives; phthalate plasticizers and esters of phthalic anhydrides; and phthalic anhydrides.
Juan C. Tuvera signed the Executive Order as the Presidential Assistant.