LOCAL meat processors urged President Marcos Jr. to issue the new executive order (EO) that would extend the lower tariff rate on mechanically deboned meat (MDM) of poultry to prevent the possible “aggravation” of port congestion in the country.
The United Broiler Raisers Association’s President Elias Jose Inciong argued, however, that the tariff rate on poultry MDM should now revert to 40 percent since the Executive branch has not issued a new EO extending the lower tariff rate.
“We are eagerly awaiting issuance by the President of the EO retaining MDM tariff at 5 percent,” the Philippine Association of Meat Processors Inc. (Pampi) told the BusinessMirror on Tuesday.
“We understand that the EO will be issued as part of anti-inflation measures along with that of pork, rice and corn,” Pampi added.
EO 123, which imposed a nearly two-year 5-percent tariff rate on poultry MDM, lapsed last January 1.
Under the said EO, which was issued by former President Rodrigo Duterte, the tariff rate on poultry MDM should revert to 40 percent beginning January 1, 2023 unless the lower tariff rate has been extended.
Pampi earlier petitioned before the Tariff Commission (TC) for the retention and extension of the lower tariff rate on poultry MDM for three years or until 2025.
The TC held a public hearing on Pampi’s petition last October 27, 2022.
TC documents showed that the government body submitted its report to the Department of Trade and Industry and the National Economic and Development Authority only last December 19, 2022.
The group argued that the immediate issuance of a new EO would prevent an “aggravation” of port congestion in the country since it would avert shipments from being held at ports due to lack of proper guidance on tariff rates.
“We hope the EO is issued immediately as MDM shipments are coming in. MDM arrivals are programmed to ensure there is no disruption in production and supply of finished goods,” it said.
“Also, the early issuance of the EO will prevent aggravation of port congestion as shipments will be released immediately instead of being held at port while waiting for EO,” it added.
Poultry MDM is a vital raw material used by local meat processors in manufacturing processed meat products such as hot dogs, luncheon meat, among others.
UBRA: Rate should revert to 40%
UBRA’S Inciong said the tariff rate on poultry MDM should go back to 40 percent in the absence of a new Executive order extending the lower tariff rate.
“The government should give it a try. They have been following the arguments of the processors all these years. Give the government a break in terms of revenues,” Inciong told the BusinessMirror.
Pampi earlier argued that keeping the lower tariff rate on poultry MDM would help temper the increase in food prices and keep the national economy afloat. (Related story: https://businessmirror.com.ph/2022/10/28/food-prices-stable-with-tariffs-on-mdm/)
“Pampi’s petition is intended primarily to support the administration’s determined efforts to keep the national economy stable and help control inflation, especially food inflation,” Ong said during a public hearing before the TC last October.