Question & AnswerQ&A (EXECUTIVE ORDER NO. 171)
The purpose of EO No. 171 is to temporarily modify the rates of import duty on various products, in response to the economic and trade implications brought by the Russia-Ukraine conflict, aiming to stabilize prices, ensure food security, and mitigate inflationary pressures in the Philippines.
EO No. 171 modifies the rates of import duty under Section 1611 of Republic Act No. 10863, otherwise known as the "Customs Modernization and Tariff Act."
The commodities targeted include coal, corn, rice, and meat of swine, which are essential for power generation, animal feeds, food products, and overall food security.
The ongoing conflict between Russia and Ukraine, which led to sharp increases in the prices of wheat, corn, mineral fertilizers, natural gas, oil, and other commodities, prompting inflationary pressures in the Philippines.
EO No. 171 takes effect fifteen (15) days after its complete publication and remains effective until December 31, 2022.
The President of the Philippines has the authority under Section 1608 of RA No. 10863 to temporarily increase, reduce, or remove existing rates of import duty in the interest of general welfare and national security, upon recommendation of the National Economic and Development Authority (NEDA).
NEDA recommends to the President the temporary modification of Most Favored Nation (MFN) tariff rates on key commodities like coal and corn, which the President may approve through an Executive Order.
EO No. 171 extends the effectivity of EO No. 134 (s. 2021), which temporarily reduced tariff rates on imported meat of swine, and EO No. 135 (s. 2021), which did the same for imported rice.
MFN tariff rate refers to the lowest tariff rate granted to imports from countries that are treaty partners or under WTO agreements, which EO No. 171 temporarily modifies for specific commodities.
If any provision is declared invalid or unconstitutional, the other provisions of the Order not affected shall remain valid and subsisting as per the separability clause.