Modifying Import Duty Rates under RA 10863

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EXECUTIVE ORDER NO. 20: Modifying Import Duty Rates under RA 10863

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Title Supreme Court: Modifying Import Duty Rates under RA 10863

Law: Executive Order No. 20

Decision Date: Apr 27, 2017

Rodrigo Roa Duterte's Executive Order No. 20 modifies the import duty rates and nomenclature for various products to promote sustainable economic growth, enhance trade transparency, and improve consumer welfare from 2017 to 2020.

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Background on Tariff Schedules

Executive Order No. 61 (2011) set the Most-Favoured-Nation (MFN) tariff schedule covering 2011 to 2015.
The 2015 tariff rates were applied in 2016 due to the absence of amendments to EO No. 61.

Justification for New Tariff Schedule

A new multi-year tariff schedule is intended to promote transparency and stability in tariff rates.
It seeks to facilitate international trade and enhance consumer welfare in the Philippines.

Legal Authority and Approval Process

Section 1608 of the Customs Modernization and Tariff Act (CMTA), Republic Act No. 10863, empowers the President to adjust import duty rates and classifications based on NEDA's recommendations.
On February 20, 2017, the NEDA Board approved the MFN tariff schedule for 2017-2020.

Section 1: Rates of Import Duty

Specifies that articles listed in Annex A, under Section 161 of the CMTA, will be subject to the MFN import duty rates.
The schedule indicated opposite each article in Annex A prescribes the applicable tariff rates.

Section 2: Levy of Import Duty

Upon the Order’s effectivity, MFN rates shall be levied on articles listed in Annex A when entered into or withdrawn from warehouses in the Philippines for consumption.

Section 3: Repeal of Inconsistent Issuances

Any prior issuances, orders, rules, or regulations inconsistent with this Order are repealed or modified accordingly.

Section 4: Separability Clause

If any provision of the Order is declared invalid or unconstitutional, other unaffected provisions will continue to be valid and enforceable.

Section 5: Effectivity

The Order becomes effective thirty (30) days after its publication in the Official Gazette or a newspaper of general circulation.

Additional Legal Concepts

Emphasis on maintaining a stable and predictable tariff regime to support economic planning and trade.
Presidential power exercised within the framework of existing laws, specifically the CMTA.
Integration of tariff policy with national economic development goals as represented by NEDA’s role.
The MFN tariff schedule ensures compliance with international trade principles by applying uniform tariffs to member countries.

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