American exporters are seeking the reduction in the duties of dairy products to the Philippines as part of the government’s ongoing comprehensive review of the most ravored nation tariff (MFN) rates on imports.
The review, which will set the rates from 2024 to 2028 of all products/tariff lines falling under Chapters 1 to 97 of Section 1611 of the Customs Modernization and Tariff Act, kicked off yesterday with a hearing of the Tariff Commission.
Mac Macatangay, representative of the US Dairy Export Council, told the hearing the reduction of duties will help ensure an adequate supply of healthy, safe and affordable dairy products that meet the demands of consumers.
Macatangay said most of the products for which the US group is seeking tariff reduction are used as inputs by food processing and food service sectors. For example, skimmed milk powder is used in the production of infant formula products, dairy beverages, confectionery and bakery goods and ice cream.
The group is seeking to maintain to 1 percent percent duty on certain milk products; reduce to 3 percent on yogurt from the current 3 to 7 percent and cut to 2 percent tariff on cheese from the current 3 to 7 percent.
Macatangay said despite the strong production capacities for the vast majority of dairy products, the United States is not the primary market share holder in the Philippines.
He said two of the primary suppliers, Australia and New Zealand, have duty free access for most dairy products entering the Philippines a free trade agreement of Asean.
