Title
Temporary Modification of Import Duty Rates 2022
Law
Executive Order No. 171
Decision Date
Jun 21, 2022
Rodrigo Roa Duterte's Executive Order No. 171 temporarily modifies import duty rates on key commodities like rice, pork, corn, and coal to mitigate inflation and ensure food security amid the economic impacts of the Russia-Ukraine conflict.

Policy, purpose, and economic justification

  • The Order is issued to temporarily modify import duty rates to address economic and trade implications arising from the conflict between Russia and Ukraine (WHEREAS clauses).
  • The Order is designed to mitigate inflationary pressures caused by worldwide price increases in commodities used in domestic supply chains (WHEREAS clauses).
  • The Order aims to maintain reduced tariff levels previously established for rice and pork products to augment supply, diversify market sources, and maintain affordable prices for food security (WHEREAS clauses).
  • The Order is also intended to reduce tariffs on corn and coal to stabilize the impact of inflation (WHEREAS clauses).

Authority and statutory basis

  • Section 1608 of Republic Act No. 10863 empowers the President to increase, reduce, or remove existing import duty rates in the interest of general welfare and national security upon recommendation of NEDA (WHEREAS clauses).
  • The temporary modification of tariff rates in this Order is anchored on Section 1611 of Republic Act No. 10863 for compliance with classification and the MFN tariff framework (Section 1).

Coverage: affected articles and tariff rule

  • The MFN duty rates apply to the articles specifically listed in Annex A (Section 1).
  • The articles in Annex A are treated according to their classification made in compliance with Section 1611 of Republic Act No. 10863 (Section 1).
  • The MFN rates of duty for each covered article follow the schedule indicated opposite the article in Annex A (Section 1).
  • Upon the effectivity of the Order, articles in Annex A that are entered into or withdrawn from warehouses in the Philippines for consumption are levied the MFN rates stated in Annex A (Section 1).

Relation to prior tariff issuances

  • Executive Order No. 134 (s. 2021) temporarily modified and reduced the MFN tariff rates on imported fresh, chilled, or frozen meat of swine until 17 May 2022 (WHEREAS clause).
  • Executive Order No. 135 (s. 2021) temporarily modified and reduced the MFN tariff rates on imported rice until 01 June 2022 (WHEREAS clause).
  • Executive Order No. 171 maintains the reduced tariffs on imported rice and pork products to carry forward the objectives of EO Nos. 134 and 135, including food security and price stabilization (WHEREAS clauses).
  • The NEDA Board endorsed ad referendum on 06 May 2022 the temporary modification of MFN tariff rates on coal and corn, and the extension of the effectivity of reduced MFN rates under EO Nos. 134 and 135 (WHEREAS clause).

Implementation mechanics and entry/withdrawal for consumption

  • Covered articles become subject to the MFN duty rates in Annex A upon the Order’s effectivity (Section 1).
  • Articles that are entered into or withdrawn from warehouses in the Philippines for consumption are specifically covered by the MFN levy rule (Section 1).
  • The applicable rate is determined by the article’s presence in Annex A and its corresponding schedule entry (Section 1).

Repeal and compliance limitations

  • All issuances, administrative rules and regulations, or parts thereof that are inconsistent with Executive Order No. 171 are repealed or modified accordingly (Section 2).

Separability and survival of remaining provisions

  • If any provision of Executive Order No. 171 is declared invalid or unconstitutional, the remaining provisions not affected remain valid and subsisting (Section 3).

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