REVENUE loss due to lower tariff rates on pork imports reached an estimated P1.356 billion from early April to early June, the Bureau of Customs (BOC) said.
Customs Commissioner Rey Leonardo Guerrero said they saw a spike in pork imports to 76 million kilograms (kg) from April 9 to June 11 after President Duterte signed the Executive orders (EOs) cutting tariff rates on incoming pork imports and hiking the minimum access volume (MAV) for a temporary period to help stabilize the domestic supply and prices of pork.
Pork imports during this period for both in-quota and out-quota shipments have already accounted for 69 percent of the total 110 million kg of swine meat brought into the country from January to June 11.
“For the period April 9 to June 11, 2021, the BOC posted a total collection of P846.96 million. We estimated the revenue losses from EOs 128 and 134 to have reached P1.356 billion for this period,” Guerrero reported to Finance Secretary Carlos G. Dominguez III in a recent Department of Finance (DOF) Executive Committee meeting.
Dominguez earlier said they expect revenue losses from lower pork import tariffs to reach P11.2 billion this year. He also said the revenue losses will be far outweighed by the P50.1-billion projected savings to be gained by consumers from lower pork prices and from the easing of inflationary pressures.
Pork imports in April this year jumped by 500 percent to 24.45 million kg from 4.07 million kg in the same period last year, Guerrero said.
In May, pork imports also surged by 506 percent year-on-year to 36.5 million kg from 6.02 million kg.
From June 1 to 11 this year, 15.14 million kg of pork shipments entered the country. The DOF did not state the volume of pork imports from June 1 to 11 last year.
In-quota pork imports amounted to 10.46 million kg in April, 10.47 million kg in May, and 2.78 million kg from June 1 to 11 this year.
On the other hand, out-quota imports reached 14 million kg in April, 26.03 million kg in May and 12.36 million kg from June 1 to 11.
Under EO 128, pork tariffs were temporarily cut to 5 percent for in-quota imports and to 15 percent for out-quota imports for the first three months of the measure, and to 10 percent (in-quota) and to 20 percent (out-quota) in the next nine months.
Prior to EO 128, tariff rates for pork imports were at 30 percent (in-quota) and 40 percent (out-quota). However, this was only in effect from April 7 to May 14 after President Duterte issued EO 134, repealing the previous issuance. This, after lawmakers expressed concern that the too-low pork tariff rates will flood the market with imported pork and deepen the misery of local hog raisers already reeling from the impact of African Swine Fever.
The signing of EO 134 paved the way for the slight increase in pork tariff rates to 10 percent (in-quota) and to 20 percent (out-quota) for the first three months, and to 15 percent (in-quota) and to 25 percent (out-quota) in the next nine months. The one-year effectivity of EO 134 began on May 15, 2021.
Duterte also issued EO 133, hiking the MAV for pork imports this year to 254,210 metric tons (MT) from the current 54,210 MT. Any unavailable balance at the end of 2021 shall not be carried over to 2022.