SOME electric vehicles (EV) will soon be made tariff-free under a new executive order signed by President Ferdinand R. Marcos, Jr. last week.
In his Executive Order (EO) No. 12, Marcos finally approved the recommendation of the National Economic and Development Authority (NEDA) Board in November to bring down to zero percent the most-favored nation (MFN) tariff rate of certain electric vehicles and their spare parts, except for hybrid-type EVs.
The President is allowed to make adjustments in import duties under Republic Act No. 10863 or the Customs Modernization and Tariff Act.
Hybrid EVs are those which make use of an electric motor and a traditional combustion engine and protect the well-being of Filipinos.
The issuance aims to “help boost the electronic vehicle market in the country, support the transition to emerging technologies and encourage consumers to consider electric vehicles as a cleaner and greener transportation option.”
It is also expected to bring down the country’s greenhouse emissions.
The adjusted tariff for EVs will remain in effect for five years from the effectivity EO 12.
The new issuance was signed on January 13, 2023, but was only released to the media on Thursday.
It will take effect 30 days after its complete publication in the Official Gazette or in a newspaper of general circulation.
NEDA is mandated to review the implementation of EO 12 a year after its implementation then submit its findings and recommendations to the President, through the Office of the Executive Secretary.