Question & AnswerQ&A (EXECUTIVE ORDER NO. 61)
The main purpose of Executive Order No. 61 is to modify the rates of import duty on certain imported articles to implement the Philippine tariff commitments under the Free Trade Agreement between the European Free Trade Association States and the Philippines.
The FTA between the EFTA and the Philippines was signed on 28 April 2016 in Bern, Switzerland.
Under Section 1609 of RA No. 10863, the President, upon recommendation of the National Economic and Development Authority (NEDA), may modify import duties, including necessary changes in classification and other import restrictions to promote foreign trade with other countries.
The four annexes are: Annex A - Philippine Schedule of Tariff Commitments on Agricultural Products from Switzerland/Liechtenstein; Annex B - from Norway; Annex C - from Iceland; Annex D - Philippine Schedule of Tariff Commitments on Non-Agricultural Products from all EFTA states.
An Origin Declaration must be submitted to comply with the Rules of Origin under the PH-EFTA FTA to qualify for the tariff commitments and the rates of import duties prescribed in the order.
It provides that the lower duty between the MFN rate and the applicable duty under the Philippine Schedule of Tariff Commitments shall prevail at the time of importation of relevant goods.
The government retains the right to invoke all trade remedy measures provided by its laws, the PH-EFTA FTA, and other international agreements to prevent import surges or unfair trade practices.
The separability clause ensures that the provisions not affected by such declaration shall remain in full force and effect.
It took effect immediately following its complete publication in the Official Gazette or in a newspaper of general circulation in the Philippines.
The NEDA Board approved the Tariff Reduction Schedule during its meeting on 25 April 2018.