Amendment of Tariff Rates on Food Imports

Purpose and policy objectives

The decree directs tariff modification because prices of imported essential raw materials and intermediate inputs used in food processing are projected to increase due to higher oil and energy prices.
The decree aims to keep prices of essential consumer goods at a minimum level to make them available to the general mass of consumers.
The decree recognizes Philippine food export promotion as important to developing the food processing industry for domestic and international markets.
The decree authorizes immediate modification of rates and/or classification for certain food-processing articles to meet contingencies from oil-price increases.

Legal basis and amended tariff rule

Section 1 amends the second paragraph of Section 104 of the Tariff and Customs Code of 1978 (also covered by Presidential Decree No. 1464).
Section 104 requires that imported articles be assessed at the rates of duty indicated in the Schedule under Section 104, except as otherwise specifically provided in the Code.
Section 104, as amended, imposes a cap: the maximum rate shall not exceed one hundred per cent ad valorem.

Scope: covered goods and tariff coverage

Section 2 applies to “articles classified in the headings and subheadings under Section 104” of Presidential Decree No. 1464 that are specifically listed in Annex ‘A’.
Annex A covers tariff items categorized under I. FOOD PROCESSING INDUSTRY.
The operative tariff rates apply upon importation of the listed articles in their respective tariff headings/subheadings.
The decree prescribes “present” and “recommended” duty rates, with “recommended” used as the operative rates to be paid after effectivity.

Duty-rate reductions and schedule (Annex A)

02.01 Meat and edible offals of the animals falling within heading 01.01, 01.02, 01.03, or 01.04, fresh chilled or frozen: tariff rate reduces from 10% to 5%.
02.02 Dead poultry (fowls, ducks, geese, turkeys and guinea fowls) and edible offals (except liver), fresh chilled or frozen:
- General rate reduces from 70% to 30% for items not included in subheading B.
- A. Articles not included in subheading B: reduces from 30% to 30% (as stated in the schedule).
- B. Chicken and ducks: reduces from 50% to 50% (as stated in the schedule).
02.03 Poultry liver, fresh/chilled/frozen, salted or in brine: reduces from 70% to 50%.
02.04 Other meat and edible meat offals, fresh/chilled or frozen: reduces from 70% to 50%.
02.06 Meat and edible meat offals (except poultry liver), salted in brine, dried or smoked: reduces from 100% to 50%.
04.01 Milk and cream, fresh, not concentrated or sweetened: reduces from 30% to 20%.
05.04 Guts, bladders and stomachs of animals (other than fish), whole and pieces thereof: reduces from 50% to 30%.
07.04 Dried/dehydrated/evaporated vegetables, whole/cut/sliced/broken/in powder, but not further prepared: reduces from 70% to 50%.
07.05 Dried leguminous vegetables, shelled (including if skinned or split):
- A. White beans, GREEN PEAS and chick peas in bulk container exceeding 45 kgs. gross weight: reduces from 20% to 5%.
- B. Other: reduces from 50% to 30%.
09.02 Tea: reduces from 70% to 50%.
09.04 Pepper (Piper), pimento (Capsicum/Pimenta):
- A. White pepper: reduces from 20% to 20% (as stated in the schedule).
- B. Other: reduces from 40% to 40% (as stated in the schedule).
11.08 Starches; Inulin: unified rate is AD VAL. 20%; sub-categories:
- A. Inulin: reduces from 30% to 30% (as stated in the schedule).
- B. Other: reduces from 70% to 15.07 (as shown in the schedule line presentation).
15.07 Fixed vegetable oils, fluid or solid, crude/refined/purified:
- A. Linseed, soya bean, palm, tung and oiticica: reduces from 20% to 10%.
- B. Other: reduces from 50% to 40%.
15.12 Animal or vegetable oils and fats, wholly/partly hydrogenated or solidified/hardened by other process, whether or not refined, not further prepared: reduces from 70% to 50%.
16.04 Prepared or preserved fish (including caviar and caviar substitutes):
- B. Other: reduces from 70% to 50%.
16.05 Crustaceans and mollusks, prepared or preserved:
- B. Other: reduces from 70% to 50%.
18.01 Cocoa beans, whole or broken, raw or roasted: reduces from 50% to 30%.
19.01 Malt extract: remains 30%.
19.02 Preparations of flour/meal/starch/malt extract of a kind used as infant food or for dietetic or culinary purposes, containing less than 50% by weight of cocoa: reduces from 30% to 20%.
20.01 Vegetables and fruit prepared or reserved by vinegar/acetic acid, with or without sugar, whether or not containing salt/spices/mustard: reduces from 100% to 50%.
20.02 Vegetable prepared or preserved otherwise than by vinegar/acetic acid:
- A. Tomato paste: reduces from 20% to 10%.
- B. Other: reduces from 100% to 50%.
20.07 Fruit juices (including grape must) and vegetable juices, unfermented and not containing spirit, with or without added sugar:
- A. Concentrates: reduces from 30% to 20%.
- B. Other: reduces from 100% to 50%.
21.02 Extracts, essences or concentrates of coffee/tea/mate; preparations with those extracts/essences/concentrates as a basis: reduces from 100% to 50%.
21.03 Mustard flour and prepared mustard: reduces from 100% to 50%.
21.04 Sauces; mixed condiments and mixed seasonings: reduces from 100% to 50%.
21.07 Food preparations not elsewhere specified or included:
- A. Non-alcoholic composite concentrates for making beverages; cheese flavoring powder: reduces from 30% to 20%.
- B. Other: reduces from 100% to 50%.
70.10 Carboys, bottles, jars, pots, tubular containers and similar glass containers for conveyance/packing; stoppers and other closures of glass:
- B. Glass jars for baby food: reduces from 50% to 40%.
- C. Other: reduces to 40% (from 50%, as shown).
73.13 Sheets and plates, of iron or steel, hot-rolled or cold-rolled:
- B. Coated or plated includes 2. Tinplates; chromeplated sheets; galvanized sheets with gauges from 16 to 36 USSG with ad val. 50% stated, and sub-item:
  - a. Tinplates when imported directly by food processors upon prior authorization of the Iron and Steel Authority: AD VAL. FREE.
  - b. Other: AD VAL. 40%.
76.04 Aluminum foil (thickness excluding any backing not exceeding 0.20 mm):
- Base reduces from 30% to 30% (as shown).
- A. Aluminum reinforced paper packing material: reduces from ? to 10% (as shown).
- B. Other: reduces to 20% (as shown).

Implementation mechanics and administrative effects

Section 1 keeps the core assessment rule of Section 104: customs authorities levy, collect, and pay the duty rates indicated in the Schedule under Section 104, subject to specific exceptions in the Code.
Section 2 directs that the listed articles in Annex ‘A’ pay the rates of import duty indicated opposite each listed article.
Section 2 governs tariff application through headings and subheadings under Section 104, using the Annex listing as the operative enumeration.

Exemptions and conditional duty relief

Annex A, 73.13(B)(2)(a) provides that tinplates imported directly by food processors are charged at AD VAL. FREE when imported upon prior authorization of the Iron and Steel Authority.
Annex A otherwise prescribes reduced ad valorem rates for the listed food-processing articles, subject to the maximum-rate cap in Section 104 as amended.

Transitory, separability, and repealing

Section 3 provides the effectivity rule only: the decree takes effect 30 days after publication.
No separate repealing or separability clause is provided in the decree’s operative sections.