Question & AnswerQ&A (EXECUTIVE ORDER NO. 890)
Republic Act 8479 imposes a single and uniform tariff duty of three percent (3%) on imported crude oil and imported refined petroleum products.
Yes, the President can reduce the tariff rate when in his judgment such reduction is warranted, pursuant to Republic Act 1937 (Tariff and Customs Code), despite the 3% tariff imposed by RA 8479.
Executive Order No. 268 reduced the preferential tariff rate for asphalt to zero.
E.O. No. 850 modified rates of duty on certain imported articles to implement the Philippines' commitment to eliminate tariff rates on products under the Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area/ASEAN Trade in Goods Agreement (ATIGA), leading to zero tariff rates on crude oil and refined petroleum products imported from ASEAN Member States.
EO 890 eliminates the 3% tariff rate on crude oil and refined petroleum products imported from non-ASEAN countries, imposing a zero MFN (Most-Favoured-Nation) tariff rate to address tariff distortion and ensure a level playing field.
The elimination was approved to address tariff distortion caused by zero tariffs on imports from ASEAN under CEPT, ensure competition for local refiners, encourage production of environmentally-compliant fuels, and provide fuel supply security in the Philippines.
The Executive Order applies to articles specifically listed in Annex 'A' of the order; these articles will be subject to the Most-Favoured-Nation rate of import duty as specified. Tariff headings not listed or represented by 'xx' remain unchanged.
Executive Order No. 890 took effect fifteen (15) days following its complete publication in the Official Gazette or a newspaper of general circulation in the Philippines.
All other Presidential issuances, administrative rules, and regulations or parts thereof which are inconsistent or contrary to Executive Order No. 890 are revoked or modified accordingly.