QuestionsQuestions (EXECUTIVE ORDER NO. 171)
EO No. 171 is anchored on the authority of the President under Section 1608 of Republic Act No. 10863 (Customs Modernization and Tariff Act), which allows the President to increase, reduce, or remove existing import duty rates in the interest of general welfare and national security, upon recommendation of the NEDA.
To temporarily stabilize inflationary pressures caused by the Russia-Ukraine crisis, augment supply, diversify sources of supply for rice and pork products, maintain affordable prices, and ensure food security by reducing tariffs on key commodities.
EO No. 134 (s. 2021) temporarily reduced MFN tariff rates on imported fresh, chilled, or frozen meat of swine until 17 May 2022; EO No. 135 (s. 2021) temporarily reduced MFN tariff rates on imported rice until 01 June 2022. EO No. 171 extends/reduces tariff rates for those products and also introduces reductions for corn and coal.
It shows that the recommendation required by Section 1608 of RA 10863 was endorsed by the NEDA Board on ad referendum on 06 May 2022 for the temporary modification of MFN tariff rates on coal and corn and the extension of reduced MFN rates for swine meat and rice.
MFN refers to the Most Favored Nation tariff rates. EO No. 171 states that the listed articles in Annex A will be charged using those MFN rates as scheduled in the annex (i.e., temporarily reduced/modified compared to the default tariff rates).
The goods are those specifically listed in Annex A, classified in accordance with Section 1611 of RA 10863, and entered into or withdrawn from warehouses for consumption in the Philippines.
It requires classification of the articles in compliance with Section 1611 of RA 10863 and then applies the MFN tariff rates of duty indicated opposite the article in Annex A.
They apply upon the effectivity of the Order to all articles in Annex A that are entered into or withdrawn from warehouses in the Philippines for consumption.
It takes effect fifteen (15) days after complete publication in the Official Gazette or in a newspaper of general circulation, and it is effective until 31 December 2022.
It is explicitly temporary, effective until 31 December 2022.
It repeals or modifies any other issuances, administrative rules and regulations, or parts thereof that are inconsistent with EO No. 171.
It ensures that if any provision of EO No. 171 is declared invalid or unconstitutional, the remaining provisions not affected will remain valid and subsisting.
To establish the factual basis for the exercise of the President’s authority under Section 1608 of RA 10863—i.e., to protect general welfare/national security and address economic and trade impacts of the Russia-Ukraine conflict.
Coal and corn are to have temporarily modified MFN tariff rates, and the reduced MFN rates under EO Nos. 134 and 135 are to be extended for imported rice and pork products (meat of swine).
It cites the President’s powers vested by the Constitution and existing laws generally, and more specifically relies on Section 1608 of RA 10863 as the statutory authority to adjust import duty rates upon NEDA recommendation.
EO No. 171 extends/maintains reduced tariffs only for its own period of effectivity. It would not revive tariff reductions already expired before its effectivity, but it can apply anew to covered articles during the effective dates specified in EO No. 171.