THE Philippine Association of Meat Processors Inc. (Pampi) has filed a petition at the Tariff Commission (TC) to maintain the tariff slapped on imported mechanically deboned meat of (MDM) chicken and turkey at 5 percent.
The TC on August 11 issued a notice of conduct of investigation on Pampi’s petition to maintain the most favoured nation rates of duty on MDM of chicken and MDM of turkey at 5 percent.
The notice, signed by TC Chairman Marilou P. Mendoza, asked interested parties to submit their comments, inputs and positions on the petition for tariff modification on or before August 25.
Likewise, the TC said the public hearing on the matter will be announced at a later date.
Pampi told the BusinessMirror that they filed the petition on one of the grounds of preventing a hike in retail prices of certain processed meat products that use chicken and turkey MDM as raw material.
For years, Pampi has cautioned that reverting the tariff on chicken and turkey MDM to 40 percent may push prices of products like hot dogs to increase by 10 percent to 15 percent.
In June last year, President Duterte signed Executive Order 82 that retained the tariff on chicken and turkey MDM at 5 percent to avert increases in the prices of processed meat products, which are popular among most low-income households.
This is because chicken MDM is a key component for the manufacture of hot dogs and canned luncheon meat.
Duterte’s EO is only effective until the end of this year. After December 31, 2020, depending on the economic conditions at the time, the government may choose to gradually increase the tariff on MDM. (https://businessmirror.com.ph/2019/06/18/duterte-retains-tariff-on-chicken-mdm-at-5/)
Pampi claimed that maintaining the tariff rate on the imported MDM products at 5 percent would offset the foregone tariff collections of the government if it was at 40 percent.
Pampi explained that maintaining the tariff at 5 percent would avert price spikes that may lead to lower sales and may affect operations of certain meat processors that may result in layoffs, which would be more damaging to the economy.
United Broiler Raisers Association (Ubra) President Elias Jose Inciong said they will not participate during the TC’s public hearing and won’t even submit a position paper on the proposed tariff modification.
“It is their right to file a petition and it is up to the Executive branch if they want to forego additional tariff revenues,” Inciong told the BusinessMirror.
“Our view is that the government has decided the broiler industry can die. The government has apparently decided to leave the broiler industry, and those who can survive may survive and they will just let us be,” Inciong added. Ubra has been on the forefront in pushing for the reversion of the 40-percent tariff on MDM even before the quantitative restriction (QR) on rice was lifted.
The lowering of the 40 percent tariff on MDM to 5 percent was part of the country’s concessions in extending the rice QR in previous years.
“Our main concern right now is our survival. Even the big companies who should be the one leading this effort have not done anything through the years. So, why should Ubra do that?” Inciong said.
Image credits: Nonoy Lacza