Law Summary
Prior Import Duty Rates and Changes
- Prior to this order, import duty rates for Portland cement and cement clinker were reduced by Executive Orders No. 94 and No. 116 to 5% and 3%, respectively, until June 30, 1994.
- After June 30, 1994, due to the expiration of these orders, higher import duty rates of 20% on Portland cement and 10% on cement clinker took effect as per Executive Order No. 470, series of 1992.
Rationale for Duty Reduction
- There was a significant increase in domestic demand for cement creating pressure on supply.
- Maintaining importation of cement and clinker was necessary to prevent shortages and avoid price increases.
- Reducing import duties was deemed necessary to sustain the import flow and stabilize the domestic market supply and pricing.
Import Duty Schedule and Specific Rates
- Cement and cement clinker import duties were set as follows under the Harmonized System Codes indicated:
- Cement clinker (other than for white cement) – 3% from 1995 and 1996.
- Portland cement – 3%.
- Pozzolan cement and blended pozzolan cement – 10%.
- The law distinguishes types of hydraulic cements and assigns appropriate corresponding rates.
Application and Enforcement
- The prescribed duty rates apply to all cement and clinker articles entered or withdrawn from any warehouse in the Philippines for domestic consumption.
- These rates are effective immediately upon publication in two national newspapers.
Supersession of Inconsistent Regulations
- Any prior executive orders, regulations, or issuances inconsistent with this Executive Order are repealed or modified accordingly to avoid conflicting provisions.
Effectivity
- The Executive Order was signed on March 4, 1995, and took effect immediately upon its publication to regulate import duties effectively and timely.
This executive order balances tariff policy with market considerations to ensure adequate supply and stable pricing of essential building materials through regulated import duties.