Executive Order (EO) 80 which lists the country’s schedule of tariff commitments under the free trade agreement (FTA) between the Philippines and South Korea was signed yesterday putting the landmark trade deal into effect.

The EO was signed by Executive Secretary Lucas Bersamin under the authority of President Ferdinand Marcos Jr. on 28 December to take effect on 31 December.

A 443-page document was attached to the EO listing thousands of products that will be exempted from tariffs for the next 15 years.

A tariff is a tax imposed on import or export products. It is one of the government’s revenue sources and protects local goods against the influx of imports.

In applying the tariff rates, all originating goods from the Republic of Korea listed in the Philippine Schedule of Tariff Commitments shall be levied prescribed duty rates subject to the submission of a proof of origin in compliance with the FTA, according to the EO.

TC may issue rules

“The Tariff Commission (TC) may be requested to issue advance rulings on the tariff classification of goods to confirm the applicable rates of duty of particular goods,” the TC said.

The trade agreement between the two countries was signed on 7 September 2023 during the 43rd Asean Summit in Indonesia.

Eight months later, Marcos ratified the document on 13 May 2024, which was concurred in by the Senate through Senate Resolution 1188 on 23 September 2024.

In 2023, bilateral trade between the Philippines and South Korea was valued at $12 billion.

This made Korea the Philippines’ fifth largest trading partner.