The Philippine Association of Meat Processors Inc. (PAMPI) is seeking the retention of the 5 percent most favored nation (MFN) tariff rates on imported mechanically deboned meat (MDM) of chicken and turkey, a key ingredient of processed meats.
In a notice posted on its website, the Tariff Commission said it will conduct an investigation on the petition of PAMPI for an extension of the existing tariff rates beyond the end of the year.
Otherwise the tariff would revert to 40 percent by 2023.
Jerome Ong, vice president of PAMPI, declined to further comment on the proposal and said the group will wait for the outcome of the request.
PAMPI’s request was made a month after the Department of Trade and Industry (DTI) announced an increase in the suggested retail prices of 67 basic necessities and prime commodities.
Under the new bulletin, SRP of canned meat increased by 6 percent.
DTI said then that such products were allowed for an increase in SRPs due to the rising prices of raw materials and packaging and other costs globally.
The Commission added in its notice that interested parties may send their comments and positions on PAMPI’s proposal on or before the end of the month as a public hearing for the issue will be announced at a later date.
In January 2021, former president Rodrigo Duterte, signed Executive Order (EO) 123 that modified the rates of import duty on certain agricultural products under section 1611 of the Customs Modernization and Tariff Act.
Under EO 123, tariff rates of MDM of chicken and turkey were reduced to 5 percent until Dec. 31, 2022 from the previous 40 percent.
The order was issued to ensure the continued supply of essential food products at stable prices in the wake of the pandemic.
Data from the Bureau of Animal Industry showed as of July 31, as much as 130,422,964 kilograms (kg) of imported MDM chicken and 221,340 kg of MDM turkey, entered the country.
For the similar period, Brazil provided most of the MDM chicken at 83,602,159 kg equivalent to 64 percent while Canada was the only source of MDM turkey to the Philippines.
