Question & AnswerQ&A (EXECUTIVE ORDER NO. 20)
The main purpose is to modify the nomenclature and rates of import duty on various products under Section 161 of the Customs Modernization and Tariff Act (RA No. 10863) to promote sustainable economic growth, increase international competitiveness, and ensure consumer welfare.
The President's power to modify import duty rates is under Section 1608 of Republic Act No. 10863, also known as the Customs Modernization and Tariff Act (CMTA).
The Executive Order takes effect thirty (30) days following its publication in the Official Gazette or in a newspaper of general circulation.
MFN tariff schedules are multi-year tariff rates applied to imports from countries that are granted most-favored-nation status. This EO refers to the MFN tariff schedule for the years 2017 to 2020 approved by the NEDA Board.
The National Economic and Development Authority (NEDA) recommends the changes in import duties to the President.
All articles specifically listed in Annex A of the EO shall be subject to the MFN rates of import duty according to the schedule indicated, replacing previous rates and classifications.
Yes, EO No. 20 repeals or modifies all issuances, orders, rules, and regulations or parts thereof that are inconsistent with its provisions.
The separability clause states that if any provision of the EO is declared invalid or unconstitutional, the other provisions unaffected shall remain valid and subsisting.
By adjusting import duty rates to promote transparency, stability, and trade facilitation, EO No. 20 aims to create an enabling environment for Philippine industries to grow and compete internationally, thus preserving employment and increasing incomes.