Marcos OKs lowering import duty on key materials for canned goods

President Ferdinand R. Marcos Jr. approved temporarily reducing the import duty on tin-mill blackplate (TMBP), a key material used in producing tin plates and tin-free steel for canned goods, to help stabilize supply chains and reduce production costs in the country’s food manufacturing sector.

Executive Secretary Lucas Bersamin signed Executive Order No. 104, by authority of the President, following the endorsement of the Economy and Development Council (ED Council). 

The measure seeks to revitalize the local tin plate and tin-free steel industries, which play a crucial role in food packaging, amid the absence of domestic production of TMBP.

“At present, there is no local production of TMBP, and there is also no local product that can substitute for said commodity,” the EO stated.

The new tariff rates will take effect immediately and remain in force for three years, subject to review after the first year.

TMBP serves as the main material in the production of Tin Plate (TP) and Tin-Free Steel (TFS), which are primarily used in the canned food industry.

According to the ED Council, temporarily reducing the Most Favored Nation (MFN) tariff rate on TMBP will help stabilize the supply chain, lower production costs, and promote consumer welfare. 

It is also expected to generate employment and foster a more favorable investment climate in the domestic canning and packaging industries.

The Palace emphasized that the move supports the administration’s efforts to strengthen food security and ensure the steady supply of affordable canned products in the market.

“All other issuances, administrative rules and regulations, or parts thereof, which are inconsistent with EO 104 are hereby repealed or modified accordingly,” the order stated.

The issuance is anchored on Section 13, Article XI of the Constitution, which mandates the State to pursue a trade policy that serves the general welfare, and Republic Act No. 10863, or the Customs Modernization and Tariff Act, which authorizes the President, upon the recommendation of the Department of Economy, Planning and Development (DEPDev)—to adjust import duties in the interest of national welfare and security.

The ED Council endorsed the tariff reduction on 20 August, following consultations with key industry stakeholders and economic planners.