THE supply constraints, expected global food supply shortage and rise in price of commodity prices prompted President Ferdinand R. Marcos, Jr. to extend once again the temporary tariff reduction for pork, corn, rice and coal.
“The high inflation caused by supply constraints, expected shortage in the global supply and rise in international commodity prices present economic and trade implications to the country and the Filipino people,” Marcos said in his Executive Order (EO) No. 10 signed and Dec. 29, 2022, but only released to the media Tuesday evening.
“There is a need to extend the effectivity of the reduced tariff rates on rice, maize (corn), coal, and meat of swine (fresh, chilled, frozen) to maintain affordable prices for the purposes of ensuring food security, help augment the supply of basic agricultural commodities in the country, reduce the cost of electricity, and diversify the country’s market sources,” he added.
Under the new issuance, Marcos said the Most Favoured Nation (MFN) rates for fresh, chilled, or frozen pork this year will range from 4 percent to 25 percent.
For corn, it will be from 5 to 15 percent.
The tariff rates for rice will be reduced to 35 percent, while for coal it will be at zero percent.
The said rates took effect last Tuesday and will apply for the said commodities, which are entered into or withdrawn from warehouses,
The adjusted MFNs for pork, corn and rice will last until the end. By next year, the MFNs for pork will be 5 to 40 percent; for corn, it will be from 5 to 50 percent; and for rice it will be 40 to 50 percent.
For coal, its zero tariff will be subjected to a semestral review after December 31.
“The NEDA (National Economic and Development Authority) Committee on Tariff and Related Matters shall submit to the President, through the Office of the Executive Secretary, its findings and recommendations on the matter, including analysis and monitoring of the coal market,” according to EO 10.
The tariffs for the pork and rice commodities were first lowered in 2021, while for corn and coal, it was last year,
The effectivity of the said rates were extended until the of end of 2022 through EO 171 series of 171.
Image credits: Nonoy Lacza