QuestionsQuestions (EXECUTIVE ORDER NO. 123)
The EO cites Section 1608 of RA No. 10863, which authorizes the President, in the interest of general welfare and national security, upon the recommendation of the NEDA Board, to increase, reduce, or remove existing rates of import duty.
Section 1611 of RA 10863 is referenced for classifying articles in compliance with the EO’s framework (i.e., the relevant tariff headings/AHTN codes used to apply the specified duty rates).
Section 1 provides that articles specifically listed in Annex A shall be subject to the Most Favoured Nation (MFN) rates of import duty based on the schedule opposite each article.
It states that unlisted headings/subheadings and listed entries represented by "X X X" shall remain in force and effect (i.e., the duty rates from existing issuances continue).
Upon effectivity of the EO, all Annex A-listed articles entered into, or withdrawn from warehouses in the Philippines for consumption, shall be levied the MFN duty rates prescribed in Annex A.
The EO takes effect immediately after publication in the Official Gazette or a newspaper of general circulation, and is applicable until 31 December 2022.
Importers are entitled/subject to the MFN duty rates under Annex A during the effectivity period; after 31 December 2022, the duty rates may revert to prior rules or be modified by new issuances.
EO No. 82 (s. 2019) reduced duty rates on mechanically deboned meat of chicken and turkey (among others) to 5% until 31 December 2020.
The EO states that the NEDA Board recommends maintaining the tariff rates under EO No. 82 for mechanically deboned meat of chicken under AHTN 2017 subheading 0207.14.91 and for mechanically deboned meat of turkey under AHTN 2017 subheadings 0207.27.91A and 0207.27.91B.
Annex A shows 2021 duty rate of 5% and a duty rate of 40% starting 01 January 2023 for 0207.14.91.
0207.27.91A (In Quota): 2021 is 5% and 30% starting 01 January 2023. 0207.27.91B (Out Quota): 2021 is 5% and 40% starting 01 January 2023.
They indicate different duty rates depending on whether the import is within the applicable quota allocation or outside it, typically governed by quota rules and tariff-rate quota mechanisms.
It means that any existing issuances, administrative rules, or parts thereof that are inconsistent with this EO are repealed or modified accordingly.
If any provision is declared invalid or unconstitutional, the remaining provisions not affected remain valid and subsisting.
A student can relate the stated welfare/economic stabilization purpose to the statutory authority under RA 10863 (e.g., general welfare and national security) and note that the EO frames duty changes as part of COVID-19 mitigation and economic recovery measures.
Generally, the prior applicable duty rates would govern imports entered or withdrawn for consumption before the EO’s effectivity, because Section 3 applies the new MFN rates only upon effectivity for articles entered into or withdrawn for consumption thereafter.
It indicates that the tariff duty to be applied is the MFN rate from the tariff schedule, as opposed to preferential rates that might apply under certain trade agreements or special regimes (subject to separate rules).