President Ferdinand Marcos Jr. has recently issued an executive order, Executive Order 50, to maintain the temporary modification of rates of import duty on rice, corn, and meat products in the Philippines. The purpose of this order is to ensure the affordability of basic commodities, particularly in light of the challenges posed by the El Niño phenomenon and the African swine fever (ASF) in the country.
The economic conditions at present necessitate the continuation of reduced tariff rates on rice, corn, and meat products, including swine (fresh, chilled, or frozen). This measure aims to secure food security, manage inflationary pressures, augment the supply of basic agricultural commodities, and diversify the country’s market sources. By maintaining affordable prices, the government aims to alleviate the impact of these challenges on the Filipino population.
Executive Order 50 is an enforcement of EO 10, which is set to expire by the end of the year. However, the National Economic and Development Authority (NEDA) board has endorsed the temporary extension of EO 10 until December 31, 2024. This extension is a response to President Marcos’ concerns regarding the anticipated effects of the impending dry spell on the price and production of rice and corn, the ongoing prevalence of ASF, and the trade restrictions imposed by some exporting countries that may affect the prices of basic commodities.
The authority to adjust import duty rates is granted to the Chief Executive under Section 1608 of the Republic Act 10863, also known as the “Customs Modernization and Tariff Act.” This power is exercised in the interest of general welfare and national security, based on the recommendations of NEDA. By utilizing this authority, the government aims to address high inflation and protect the purchasing power of consumers.
NEDA Secretary Arsenio Balisacan has emphasized that the extension of reduced tariffs is one of the measures being implemented by the government to ensure an adequate supply of agricultural commodities and maintain stable and affordable prices. This approach is crucial in managing potential inflationary pressures and safeguarding the welfare of consumers.
According to the provisions of the executive order, the following commodities will have reduced rates:
– 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).
To ensure effective monitoring and analysis of these measures, President Marcos has directed the NEDA Committee on Tariff and Related Matters to conduct semestral and annual reviews of tariff rates. This committee will provide findings and recommendations regarding the subject commodities.
By maintaining affordable prices for rice, corn, and meat products, the government aims to address the challenges posed by the El Niño phenomenon and ASF, while also promoting food security and managing inflationary pressures. These measures, coupled with the continuous monitoring and analysis of tariff rates, demonstrate the government’s commitment to ensuring the welfare of its citizens and the stability of the agricultural sector.
(Note: The content has been revised to incorporate insights, commentary, and contextualization for an international audience. The sentences have been shortened and the active voice has been used for enhanced readability.)
Source: The Manila Times
