Legal basis and policy intent
- Section 1611 of Republic Act No. 10863 authorizes the President, upon the recommendation of NEDA, to increase, reduce, or remove existing rates of import duty in the interest of general welfare and national security.
- The policy is to mitigate adverse impacts of the COVID-19 pandemic by stabilizing the supply of essential food products at stable prices.
- The policy is to support economic recovery by helping businesses recover and sustain operations and by preserving and creating employment opportunities.
Prior tariff action and continuing need
- Executive Order No. 82 (s. 2019) reduced duty rates on mechanically deboned meat of chicken and turkey to 5% until 31 December 2020.
- The NEDA Board recommends maintaining tariff rates under EO No. 82 for mechanically deboned meat of chicken under AHTN 2017 subheading 0207.14.91.
- The NEDA Board recommends maintaining tariff rates under EO No. 82 for mechanically deboned meat of turkey under AHTN 2017 subheadings 0207.27.91A and 0207.27.91B.
Coverage, classification, and MFN duty rules
- Section 1 applies to articles specifically listed in Annex A, as classified in compliance with Section 1611 of Republic Act No. 10863.
- Section 1 subjects the listed articles to Most Favoured Nation (MFN) rates of import duty based on the schedule in Annex A.
- Section 3 applies to all listed articles that are entered into, or withdrawn from warehouses in the Philippines for consumption, upon the effectivity of the Order.
- Section 2 keeps in force tariff headings and subheadings not listed in Annex A, and those listed but represented by the symbol "X X X".
Levy timing and application
- Upon the Order’s effectivity, Section 3 requires the levy of MFN duty rates prescribed in Annex A on:
- articles specifically listed in Annex A; and
- articles that are entered into, or withdrawn from warehouses in the Philippines for consumption.
- The MFN rates apply during the period from the Order’s effectivity until 31 December 2022.
Specific import duty rates in Annex A
- Annex A covers “Meat and edible offal, of the poultry of heading 01.05, fresh, chilled or frozen” under Hdg. No. 02.07 and related poultry categories.
- For Gallus domesticus (chicken), Annex A lists mechanically deboned or separated meat under AHTN 2017 subheading 0207.14.91 with:
- 2021 rate: 5%
- starting 01 January 2023 rate: 40%
- For turkeys, Annex A lists mechanically deboned or separated meat under AHTN 2017 subheadings 0207.27.91A and 0207.27.91B with:
- 0207.27.91A (In Quota): 2021 rate 5%; starting 01 January 2023 rate 30%
- 0207.27.91B (Out Quota): 2021 rate 5%; starting 01 January 2023 rate 40%
- Annex A uses the symbol "X X X" to represent tariff headings/subheadings whose existing rates are preserved under Section 2.
Repeal, separability, and duration
- Section 4 repeals or modifies all issuances, administrative rules and regulations, or parts thereof, that are inconsistent with Executive Order No. 123.
- Section 5 provides separability: if any provision is declared invalid or unconstitutional, the remaining provisions remain valid and subsisting.
- Section 6 limits the Order’s application to the period ending 31 December 2022.