March 5, 2004

Philippines Lowers Pork Import Duty To 10%

The Philippine Department of Agriculture said Friday it has temporarily lowered the import tariff on pork to 10% from 30% to address tight domestic supply.
 
In a press briefing, Agriculture Secretary Luis Lorenzo said the initial import volume for the lower tariff has been set at 5,000 metric tons for arrival before June this year. Additional imports at the lower tariff may be allowed if needed, he said.
 
The volume will form part of the country's minimum access volume, or MAV, for pork, set for this year at 50,000 tons, Lorenzo said.
 
The department has already asked the Tariff Commission for the necessary tariff revisions, he said.
 
Importing pork products at the preferential tariff is expected to help ease domestic pork prices, which have surged to 150-160 pesos ($1=PHP55.23) from PHP120-PHP130/kg at the start of the year due to limited supply.
 
The tight supply has been attributed mainly to a shift in consumer demand due to bird flu scare, Lorenzo said.
 
Lorenzo said importers are eyeing South Korea and Europe as possible sources of the imports.
 
The MAV is the least volume of sensitive agriculture products that the country has committed to import at preferential tariffs. The MAV duty for pork has been set at 30% while imports out of the volume are given a higher duty of 40%.