THE National Economic and Development Authority (Neda) aims to put in place lower tariffs for a number of key commodities in the soonest time possible to prevent a surge in prices.
The Tariff Commission, an attached agency of the Neda, has already issued a notice for public hearing for lower tariffs and extended the effectiveness of low tariffs for a number of commodities.
Based on the Neda’s proposal, tariffs can be maintained or lowered for coal, rice, pork, and corn in light of the war in Eastern Europe which involved countries supplying oil and wheat.
“(We) hope we get them (lower tariffs) in place before they expire. For corn, (we want lower tariffs to be put in place) soonest public hearing done,” Neda Undersecretary for Regional Development Mercedita A. Sombilla told BusinessMirror over the weekend.
In a recent presentation to the Cabinet, Socioeconomic Planning Secretary Karl Kendrick T. Chua said his recommendations to keep inflation at bay includes reducing the Most Favored Nation (MFN) tariff rate for coal to zero, from the current 7 percent, until December 2022.
For corn, the Neda recommended that a 5-percent MFN tariff in-quota rate and 15 percent out-quota rate be imposed along with a Minimum Access Volume (MAV) of 4 million metric tons until December 2022.
Chua said rice MFN tariffs can also be kept at 35 percent until the end of the year. The MFN rate of 35 percent is set to expire on May 30 this year.
For pork, Neda’s recommendation is to extend the lower tariffs until December 2022 as it would lapse on May 17. Currently, pork in-quota tariff is set at 15 percent while out-quota is at 25 percent with a MAV of 200,000 metric tons.
The Neda also recommended that all non-tariff barriers for fish imports be removed. Last year, the government issued certificates of necessity to import to cover the supply gap with the closing of the fishing season.
Merits
The TC is conducting public hearings to determine the merits of maintaining lower tariff rates on imported pork and rice as well as reducing tariffs on corn imports to mitigate the impact of the Ukraine-Russia war on local food prices.
The TC issued a notice for public hearings on proposed tariff adjustments for 4 commodities: pork, rice, corn and coal. The TC has scheduled the investigation for pork and rice tariffs on March 17 while corn and coal are slated on March 18.
“Interested parties shall be afforded the opportunity to be present and present evidence in support of their position/s on the matter. Parties who intend to make presentations during the PHV [Public hearing via Videoconferencing] are also required to submit their presentation slides to the Commission on or before 16 March 2022,” the TC’s notice read.
The TC has set a deadline of March 24 for the submission of position papers for pork and rice tariffs while the position papers for corn and coal tariffs must be submitted on March 25.
Powerpoint presentation
A document obtained by the BusinessMirror indicated that the public hearings that the TC will conduct did not “emanate” from any petition for tariff modifications under Section 1608 of Republic Act 10863 or the Customs Modernization and Tariff Act (CMTA).
The document showed the TC’s basis for conducting its public hearings was a powerpoint presentation submitted to the body by the government’s economic development cluster (EDC).
The presentation, titled “Mitigating the impact of the Russia-Ukraine crisis on the people,” was presented by Socioeconomic Planning Secretary Karl Kendrick T. Chua to the public.
Under section 1608 or the flexible clause, the TC is mandated to conduct investigations before the National Economic and Development Authority (Neda) recommends to the President any tariff adjustments. The President could adjust or modify tariff rates when Congress is not in session upon the recommendation of the Neda.
“The Commission shall conduct an investigation and shall hold public hearings wherein interested parties shall be afforded reasonable opportunity to be present, to produce evidence and to be heard,” the law’s provision read.
“The Commission shall also hear the views and recommendations of any government office, agency, or instrumentality,.”
Under the law, the TC must submit its findings and recommendation to the Neda within 30 days after the termination of the public hearings.