PBBM keeps low food tariff rates

MANILA – Malacañang on Tuesday stated that President Ferdinand Marcos Jr. has issued an executive order maintaining the temporary modification of rates of import duty on rice, corn and meat products.

It said Executive Order 50, signed on December 22, would ensure the affordable prices of basic commodities amid the effects of the El Niño phenomenon and the African swine fever (ASF) on the country.

“The present economic condition warrants the continued application of the reduced tariff rates on rice, corn, and meat of swine [fresh, chilled or frozen] to maintain affordable prices for the purpose of ensuring food security, managing inflationary pressures, help augment the supply of basic agricultural commodities in the country, and diversify the country’s market sources,” a part of the circular read.

Executive Order 50 merely enforces EO 10, which is set to expire by year’s end.

The National Economic and Development Authority (NEDA) board on December 14, endorsed the temporary extension of Marcos’ EO 10 that implements the reduced Most Favored Nation (MFN) rates on rice, corn and meat of swine (fresh, chilled or frozen) until Dec. 31, 2024.

Marcos has warned against the expected impact of the impending dry spell on the price and production of rice and corn, the continuing prevalence of ASF, and the trade restrictions in some exporting countries that will affect the prices of basic commodities.

Under Section 1608 of the Republic Act 10863, or the “Customs Modernization and Tariff Act,” the Chief Executive is empowered to increase, reduce or remove existing rates of import duty in the interest of general welfare and national security and upon the recommendation of NEDA.

NEDA Secretary Arsenio Balisacan previously said the extension is one of the measures the government is undertaking to help curb high inflation and protect the purchasing power of consumers.

“The proposed extension of the reduced tariffs will help ensure an adequate supply of agricultural commodities and maintain stable and affordable prices, thereby better managing potential inflationary pressures,” Balisacan stated in an earlier Palace briefing.

As stated in the EO, rates on the following commodities are reduced:

– Meat of swine, fresh, chilled or frozen, at 15 percent (in-quota) and 25 percent (out-quota)

– Corn at 5 percent (in-quota) and 15 percent (out-quota)

– Rice at 35 percent (in-quota and out-quota).

Marcos has directed the NEDA Committee on Tariff and Related Matters to submit its findings and recommendations on the semestral and annual review of tariff rates, including analysis and monitoring of the subject commodities.