By Angela Celis and Irma Isip
A monitoring system to prevent import surge under the newly-implemented Regional Comprehensive Economic Partnership (RCEP) has been put in place to protect local producers.
The Bureau of Customs (BOC), meanwhile, has also released a comprehensive set of guidelines detailing the requirements for availing preferential tariff treatment under the RCEP agreement.
“At the Department of Trade and Industry (DTI), we have established an import monitoring system to detect any unwarranted surge in import so that necessary trade remedies or policy interventions can be made immediately. This tool is available to stakeholders for monitoring import volumes of specific commodities. By ensuring imports remain within amounts that will not hurt or threaten our local industry, this monitoring initiative builds confidence and fosters collaboration among all those involved, said DTI Secretary Alfredo Pascual.
DTI Assistant Secretary Allan Gepty said the Bureau of Import Services launched on May 31 the Import Surge Monitoring System, a dashboard intended to monitor surge in the volume of locally produced industrial commodities being imported in the country.
Among others, the system will help in monitoring the increase in quantity of important locally produced commodities and generate statistical data and trends.
Gepty said, for example, if imports of industrial products that are sensitive suddenly spike, the Department of Trade and Industry motu proprio can initiate an investigation or affected industry can file a petition to request for trade remedy such as safeguard measure.
The system will guide businesses in formulating strategies, business plans, forecasting and projecting market demand to increase their competitiveness.
Pascual said as the country implements RCEP, DTI will further intensify its international trade education and advocacy campaign.
BOC, under Customs Memorandum Order (CMO) No. 12-2023 issued on May 26, 2023, said only imported goods originating from any of the 15 member countries will be eligible to claim the preferential tariff rates stipulated by the RCEP.
The CMO, signed by customs commissioner Bienvenido Rubio, officially took effect on June 2.
It establishes specific procedures that must be followed for obtaining and accepting the “certificate of origin,” which, as part of the RCEP agreement, has been mandated to accompany goods as they are transported between member countries.
The certificate of origin serves as an official record confirming the country from which the goods originate.
Its presence allows customs authorities, importers, and exporters to monitor the movement of goods within the RCEP trading bloc.
To qualify for the RCEP tariff rates, importers must obtain this certification, accompanied by a declaration of origin from exporters authorized by the Philippines, as specified by the BOC.
The BOC has assigned its Export Coordination Division (ECD) with the responsibility of meticulously examining all submitted certificates of origin and applications for Approved Exporter status.
The CMO states “ECD shall carry out verifications of the originating status of the good upon request of the RCEP importing party or based on risk analysis criteria. Verification can be made based on documents requested from the exporter or producer or by inspections at the exporter’s or producer’s premises.”
However, the bureau clarifies that the final determination of the duty rate will be based on the assessment of the documents submitted by importers.
On the other hand, exporters are required to submit an application to the ECD for the issuance of a certification of origin for RCEP. The application must include necessary supporting documents, such as an export declaration, commercial invoice, bill of landing/airway bill, and other relevant permits.
The primary objective of the RCEP is to eliminate tariffs on at least 90 percent of the goods traded among member countries, while simultaneously strengthening regulations for non-tariff measures.
Within the trade agreement, the Philippines has retained its existing preferential tariff rates for 98.1 percent of the 1,718 agricultural tariff lines and 82.7 percent of the 8,102 industrial tariff lines.
Out of the 1,685 agricultural tariff lines currently preserved at their present rates, 1,426 will be maintained at a zero rate, while 154 will continue to be charged at their existing most favored nation rates and will therefore not be included in any form of tariff concessions.
“In cases where the RCEP preferential tariff rate is higher than the applied rate at the time of importation, the importer shall be allowed to apply for a refund of any excess duties and taxes paid for originating goods,” BOC said.
