By JED MACAPAGAL and RAYMOND AFRICA
The Department of Agriculture (DA) and the Senate may have reached a compromise on the amendments to an executive order (EO) governing pork imports, but the National Economic Development Authority (NEDA) has the authority to endorse the changes to President Duterte for his approval.
EO 128 issued April 7, 2021 calls for the lowering of tariff rates and increasing MAV of imported pork products to address the shortage of pork in the local market due to the impact of the African swine fever (ASF). But this was opposed by senators who said this will kill the local hog industry.
The numbers being quoted by the DA and the Senate on the compromise tariff rates on imported pork do not match. Both, however, cited the same figures on the adjusted minimum access volume (MAV) of 254,210 metric tons (MT), much lower than the earlier proposal of 404,000 MT. MAV is now at 54,210 MT.
DA Secretary William Dar late Tuesday said he, alongside economic team members in discussions with the Senate, recommended tariff rates in EO 128 be adjusted to 10 percent for MAV in-quota and 20 percent for out-quota for the first three months and 15 percent MAV in-quota and 25 percent for out-quota for the remaining nine months.
The original EO 128 lowers to 5 percent the in-quota tariff and to 15 percent the out-quota duty in the first three months of its effectivity. The rates will be increased to 10 percent and 20 percent, respectively on the fourth to the 12th month of its implementation.
But Senate President Vicente Sotto III yesterday said the agreed compromise tariff for MAV in-quota is 15 percent for the first three months of the order and 20 percent on the fourth to the 12th month.
Dar said the recommended revision “is necessary to arrest the inflationary impact on millions of Filipino consumers due to the dwindling pork supply” while other steps to help the domestic hog industry recover from ASF are being done.
Da said he will submit the revised pork import tariffs to the NEDA Board through Secretary Karl Chua who in turn will make the final recommendation to the Office of the President.
At present, pork shipments under MAV are charged with 30 percent tariff while those outside the program are slapped with 40 percent.
Sotto said there was nothing in the amended version of EO 128 which states that the President will revert to the original tariff rates and MAV although the chief executive earlier indicated willingness to recall the EO once prices of pork stabilize.
Sotto said the executive branch is not obliged to submit its amended version of the EO to the Senate which will come up with a Committee of the Whole report on the hearings conducted on the matter.
Meanwhile, the Philippine Association of Meat Processors Inc. (PAMPI) and the Samahang Industriya ng Agrikultura (SINAG) welcomed the compromise.
PAMPI urged the President to issue the amendatory EO as soon as possible while SINAG asked the DA to revoke all the sanitary and phytosanitary import clearances granted to importers using the EO 128.
