Extension, expansion of EO 12 backed

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The Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) yesterday  said granting preferential tariffs to hybrid electric vehicles (HEV) will accelerate the electrified mobility in the Philippines.

In a statement, Campi president Rommel Gutierrez noted the need to extend and expand Executive Order (EO) 12 which temporarily reduced the rates of import duty on certain electric vehicles (EVs) and their parts and components for five years starting February 2023.

The National Economic and Development Authority (NEDA) on Tuesday said government has started the official review of the potential expansion of EO 12 to cover e-motorcycles and hybrid vehicles “pursuant to Section 2 thereof, which provides for the review of the EO after one year of implementation.”

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“We welcome the review of EO 12.  (We have to) adopt a multiple pathway approach to achieve the desired volume target of electrified vehicles on the road,” Gutierrez said.

He added inclusion of HEVs in the coverage will greatly boost the usage of electrified vehicles as it becomes more affordable and more models will be available in the market.

“Since their introduction in the country, HEVs have been gaining market acceptance as motor vehicle users start to embrace hybrid technology and the benefits it offer to the motorists and the environment,” Gutierrez said.

According to NEDA, the Tariff Commission will conduct a public hearing on the proposed extension and expansion of EO.

The review shall follow the tariff modification process under Section 1608 of the Customs Modernization and Tariff Act, and shall be presented to the Committee on Tariff and Related Matters and the NEDA Board.

“The review shall carefully consider all the views and comments of stakeholders, taking into account the current market conditions. The review aims to ensure that we meet the policy objectives of EO 12 by further encouraging the adoption of EVs and fostering the growth of the domestic EV market,” NEDA said.

NEDA also called on interested parties to participate in the public hearing and share their insights on the implementation of this crucial policy, which aims to enhance the country’s energy security as we strive for social and economic transformation in the coming years.

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