Malacañang issues EO to modify tariff on some environmental goods

Malacañang has issued an executive order modifying tariff rates on certain environmental goods in line with its commitment to the Asia Pacific Economic Cooperation (APEC).

Executive Order (EO) 185 approved on June 26 by President Aquino stated certain environmental goods would be subject to the Most Favored Nation (MFN) rate of five percent.

The items to be subject to the MFN rate include condensers for steam or other vapor power units, waste incinerators, and filtering machinery and apparatus for liquids or gases.

The order was issued in line with the country’s tariff commitments on products included in the environmental goods list of the APEC.

Under the 2012 Vladivostok Declaration, APEC leaders endorsed the APEC List of Environmental Goods covering 54 items that “directly and positively contribute to green growth and sustainable development objectives.”

As part of the Vladivostok Declaration, APEC leaders committed to reduce applied rates on the environmental goods to five percent or less by the end of this year.

In May, the National Economic and Development Authority (NEDA) recommended the reduction of the MFN rates of duty on certain tariff lines under the APEC List of Environmental Goods within the year.

Under the Section 401 of Presidential Decree No. 1464 or the Tariff and Customs Code of the Philippines, the President, upon recommendation of the NEDA, can increase, reduce, or remove existing import duties.

The MFN rate of five percent on environmental goods will take effect immediately.

The 21-member APEC seeks to achieve sustainable economic growth and prosperity in the region.

The members are working together to promote free and open trade and investments, economic integration, economic and technical cooperation as well as sustainable business environment.