THE Bureau of Customs (BOC) finally issued a memorandum formalizing its collection of higher tariff on imported mechanically-deboned meat (MDM) of chicken and turkey at 40 percent since January 1 following the expiration of a previous executive order (EO) from President Duterte.
Without a new EO from Duterte, the BOC has since said they have no legal basis to collect only 5-percent tariff on imports of chicken and turkey MDM after the expiration of EO 82.
“In view of the expiration of the reduction of the rates of duty on mechanically deboned meat as provided under EO 82, the tariff rate for AHTN Code Heading ‘02.07’ corresponding to the commodities covered therein is restored to 40 percent effective January 1, 2021,” read the January 4 memorandum signed by Customs Deputy Commissioner Atty. Edward James A. Dy Buco.
Duterte issued EO 82 last June 2019 to reduce the tariff for MDM “a key component for hotdogs and canned luncheon meat” to 5 percent to ease inflationary pressures.
EO 82 was effective only until December 31, 2020, unless the President signs another order extending its effectivity.
Malacañang confirmed earlier this month that the Cabinet has already agreed to retain the tariff at 5 percent.
Earlier, Trade Secretary Ramon M. Lopez said the Cabinet-level Committee on Tariff and Related Matters voted in favor of retaining the 5-percent tariff on MDM because there are no local producers to protect in the first place. As such, he argued that raising the tariff to 40 percent will only jack up the prices of processed meat and canned products.
The President is allowed to increase, reduce or remove existing rates of import duty upon the recommendation of the National Economic and Development Authority if Congress is not in session. Congress was on recess until January 17.
According to EO 23 issued in 2017, concessionary rates on certain agricultural products should go back to 2012 levels once the quantitative restriction (QR) on rice is removed and converted into ordinary customs duties.
The rice trade liberalization law, which removed the QR on rice, took effect on March 5, 2019.
Should the President release an EO mandating the extension of a 5-percent tariff on MDM, Customs Assistant Commissioner and spokesman Vincent Philip Maronilla earlier told the BusinessMirror that importers may ask for a refund but only if the EO contains a provision mandating the retroactive application of the tariff rate.
Without the retroactive provision, Maronilla said the BOC would not grant their request for a refund.