President Duterte has signed an executive order (EO) modifying the rates of import duties on certain imported articles and pave the way for the implementation of the country’s tariff commitments pursuant to the free-trade agreement (FTA) between the European Free Trade Association (Efta) states and the Philippines.
EO 61, which was signed on August 2, listed in the Philippine Schedule of Tariff Commitments subject to the rates of import duties specified in the order.
“All goods originating from the Efta states, in accordance with the aforementioned Philippine Schedule of Tariff Commitments, entered into or withdrawn from warehouses or free zones in the Philippines for consumption or introduction to the Customs territory, shall be levied the rates of duties prescribed therein, subject to the submission of an origin declaration, in compliance with the Rules of Origin under the PH-Efta FTA,” a copy of the executive order released on Wednesday read.
The Philippine Schedule of Tariff Commitments under the Philippines-Efta FTA was also approved by the President.
These includes the agricultural products and non-agricultural products originating from Efta member-states Switzerland/Liechtenstein, Norway and Iceland.
The Tariff Commission may also be requested to issue advance rulings on tariff classification of goods to confirm the applicable rates of duty of the particular goods, which are the subject of the order.
The lower duty between the Most Favored Nation rate and the applicable duty set out in the Philippine Schedule of Tariff Commitments in the order shall prevail according to the provisions of the PH-Efta FTA and its annexes.
Prior to the signing of the order, the National Economic Development Authority approved the Tariffication Schedule on various products covered by the Schedules of Tariff Commitments under the PH-Efta FTA.
According to Section 1609 of Republic Act 10863 or the Customs Modernization and Tariff Act, the President shall modify import duties including any necessary change in classification and other import restrictions as required or appropriate to carry out and promote foreign trade with other countries.
The FTA between Efta and the Philippines was signed on April 2016 in Bern, Switzerland, and was ratified by the President on December 2017.
On March 2018 the Senate also concurred in the ratification of the PH-Efta FTA through Senate Resolution 93.
The PH-Efta FTA covers trade in goods, services, investment, government procurement, intellectual- property rights, competition and sustainable development, and applies to the trade and economic relations between the Philippines and the individual Efta states.
The said FTA also provides that the Philippines shall upon the FTA’s entry into force, eliminate import duties and charges having equivalent effect on import duties on nonagricultural goods originating from an Efta state except as otherwise provided for in the Schedule of Tariff Commitments on Non-Agricultural Products.
Both parties shall also grant tariff concessions for agricultural goods originating from either party as specified in the Schedule of Tariff Commitments on Agricultural Products.
The order shall take immediately following its complete publication in the Official Gazette or in a newspaper of general circulation in the Philippines.