Reduced tariff on chicken, turkey stays

President Ferdinand “Bongbong” Marcos Jr. has signed Executive Order No. 13, retaining the temporary modification of the import duty rates on mechanically deboned meat of chicken and turkey.

In a statement early Friday morning, Presidential Communications Office Secretary Cheloy Garafil said the President signed the EO on 13 January 2023 to retain the temporary five-percent tariff rate on MDM poultry until 31 December 2024.

The EO aims “to ensure the continued supply of essential food products at affordable prices, diversify the country’s market sources, and help businesses recover and sustain their operations.”

The order noted that the Covid-19 crisis “as well as other factors affecting the country’s traditional sources of mechanically deboned meat of chicken and turkey cause uncertainty in the steady supply of said commodities.”

“The high inflation prompted by supply constraints, expected shortage in the global supply, and rise in international commodity prices present economic and trade implications for the country and the Filipino people,” the EO read.

Executive Order 82, signed by former President Rodrigo Duterte, temporarily modified the Most Favored Nation import duty rates on mechanically deboned chicken and turkey meat until 31 December 2020.

Later, Duterte signed Executive Order No. 123 to retain the tariff on mechanically deboned chicken and turkey meat at five percent until 31 December 2022.

Processed meat products are popular with low-income households, particularly since mechanically deboned meat is a vital component in the manufacture of hot dogs and canned luncheon meat.

The MFN rates shall be subject to review after one year of implementation of the order.

The new EO takes effect immediately after its publication in the Official Gazette or a newspaper of general circulation.

Tariff cuts on imported EVs, spare parts
Meanwhile, to expand the number of electric cars and vehicles in the country, Marcos also allowed the temporary change of tariff rates on imported EVs, parts, and components through EO No. 12.

The chief executive signed EO 12 on 13 January after the National Economic and Development Authority board approved the temporary lowering of the Most Favored Nation tariff rates on selected EVs and their parts and components for five years on 24 November 2022.

For five years, EO 12 will temporarily cut the MFN tariff rates on fully built-up units of some EVs, including passenger cars, buses, minibuses, vans, trucks, motorbikes, tricycles, scooters, and bicycles.

Hybrid-type EVs are, however, exempted from EO 12.

The EO said the tariff rates on a few EV parts and components would also be reduced from five percent to one percent for five years.

The EO intends to help in the adoption of new technologies and to persuade people to use electric vehicles as a more environmentally friendly mode of transportation.

“The state has the paramount obligation to protect the health and well-being of the people from hazards of pollution and greenhouse gases,” the EO read.

“Under RA No. 11697, the State shall provide an enabling environment that permits the development of electric vehicles, including options for micro-mobility as an attractive and feasible mode of transportation,” it added.

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