Question & AnswerQ&A (EXECUTIVE ORDER NO. 23)
The main purpose of Executive Order No. 23 is to extend the effectivity of the Most-Favoured-Nation (MFN) rates of duty on certain agricultural products under Republic Act No. 10863 and to continue the Philippine commitments under the WTO Decision on Waiver relating to Special Treatment for Rice until June 30, 2020.
The MFN rates of duty are preferential tariff rates applied to agricultural products listed in Annexes A and B of EO No. 23, as classified under Section 1611 of RA No. 10863.
The MFN rates of duty are implemented under Republic Act No. 10863, also known as the Customs Modernization and Tariff Act (CMTA).
The MAV commitment represents the volume of rice importation allowed by the Philippines in exchange for the WTO waiver, and this volume remains in effect as stipulated in EO No. 23.
The MFN rates of duty will apply until June 30, 2020, or until a law amending rice tariffication provisions in RA No. 8178 is enacted, whichever occurs first.
Section 1608 authorizes the President, upon the recommendation of the National Economic and Development Authority (NEDA), to increase, reduce, or remove existing protective rates of import duty.
Tariff headings marked with 'XXX' or those not enumerated remain subject to the previously existing rates of import duty; they are not changed by EO No. 23.
The NEDA Board approved the extension of the reduced rates of duty on the agricultural products listed in EO No. 190 for an additional three years, which prompted the issuance of EO No. 23.
If any provision is declared invalid or unconstitutional, the remaining provisions not affected shall remain valid and in effect, ensuring the separability of the order.
All other issuances, administrative rules, and regulations or parts thereof inconsistent with EO No. 23 are revoked or modified accordingly.