Question & AnswerQ&A (EXECUTIVE ORDER NO. 25)
Section 13, Article XII of the 1987 Philippine Constitution provides that the Senate shall pursue a trade policy that serves the general welfare and utilizes all forms and arrangements of exchange on the basis of equality and reciprocity.
The signatories include the Association of Southeast Asian Nations (ASEAN), Australia, China, Republic of Korea, Japan, and New Zealand.
The President ratified the RCEP Agreement on November 28, 2022.
The RCEP Agreement aims to: (a) establish a modern, comprehensive, high-quality, and mutually beneficial economic partnership framework; (b) progressively liberalize and facilitate trade in goods and services through elimination of tariff and non-tariff barriers, restrictions, and discriminatory measures; and (c) create a liberal, facilitative, and competitive investment environment.
Republic Act No. 10863, or the Customs Modernization and Tariff Act, specifically Section 1609, provides that the President, upon the recommendation of the National Economic and Development Authority (NEDA), may modify import duties.
An importer must submit a Proof of Origin and comply with all applicable requirements under the RCEP Agreement to avail of the prescribed reduced tariff rates.
Originating goods subject to tariff differentials shall be eligible for preferential tariff treatment applicable to the originating goods of the exporting Party if it is the RCEP country of origin. If not established, the Party contributing the highest value of originating materials used in producing the goods in the exporting Party will be deemed the RCEP country of origin, and the preferential tariff treatment applies accordingly.
Importers may claim preferential tariff treatment at either (a) the highest rate of customs duty that the Philippines applies to the same originating goods from any of the Parties contributing originating materials used in production, provided they prove the claim, or (b) the highest rate of customs duty that the Philippines applies to the same goods from any of the Parties.
No, the Order explicitly states that it does not preclude the Government from invoking all trade remedy measures provided in the laws, the RCEP Agreement, and other relevant international agreements to prevent import surges or unfair trade practices.