PBBM issues EO for tariff schedule under PH-SoKor FTA

By Ruth Abbey Gita-Carlos, Philippine News Agency

Under EO 80 signed on Dec. 23, Marcos emphasized the need to modify the rates of import duty on certain imported articles for the country to comply with the Philippine Schedule of Tariff Commitments under the FTA. (Pexels Photo)

MANILA – President Ferdinand R. Marcos Jr. has issued Executive Order (EO) 80, implementing the schedule of tariff commitment under the Philippines’ Free Trade Agreement (FTA) with South Korea.

Under EO 80 signed on Dec. 23, Marcos emphasized the need to modify the rates of import duty on certain imported articles for the country to comply with the Philippine Schedule of Tariff Commitments under the FTA.

All articles listed in the Philippine Schedule of Tariff Commitments shall be subject to the rates of import duties at the time of importation, according to the new EO.

“All originating goods from Republic of Korea listed in the aforementioned Philippine Schedule of Tariff Commitments under Section 1 hereof, that are entered into or withdrawn from warehouses or free zones in the Philippines for consumption or introduction to the customs territory, shall be levied the rates of duty as prescribed therein, subject to the submission of a Proof of Origin, in compliance with all applicable requirements under the PH-KR FTA,” EO 80 read.

The Philippines and South Korea signed the FTA on the sidelines of the 43rd Association of Southeast Asian Nations (ASEAN) Summit in Jakarta, Indonesia on Sept. 7, 2023.

Under the FTA, South Korea will grant preferential duty-free entry on 11,164 Philippine products accounting for USD3.18 billion or 87.4 percent of total Korean imports from the Philippines.

The FTA will officially take effect on Dec. 31, the Korean Embassy in Manila earlier announced.

This year, the Philippine Senate ratified the FTA on Sept. 23, while the Korean National Assembly ratified the deal on Nov. 14.

The FTA was signed to further strengthen economic partnership and bilateral trade by reducing and eliminating tariff restrictions in support of government efforts to manage competitive exclusion, encourage more foreign direct investments, and secure more preferential concessions than those currently available under existing agreements.

Under the deal, the Philippines bats for zero tariff on tropical fruits, such as banana and pineapple, which are the country’s major exports to the East Asian trade partner.