February 9, 2010

Philippine government okays duty-free wheat imports

Philippine president Gloria Macapagal Arroyo has approved a proposal to extend the duty-free importation of wheat which is seen to help stabilise domestic prices.

Trade Secretary Peter B. Favila said the government has also approved the recommendation of the CTRM (Committee on Tariffs and Related Matters) for a six-month extension of zero tariff [on wheat and cement].

Without the exemption, importers are required to pay a 3% tariff if they are purchasing from member-countries of the Association of Southeast Asian Nations (ASEAN) and 5% if they buy elsewhere.

The extension of zero tariffs will be implemented retroactively.

In December 2008, President Arroyo issued Executive Orders (EOs) 765 and 766 which lifted duties on wheat, along with cement, for six months.

After the directives lapsed, a six-month extension was ordered with the issuance of EOs 818 and 819 in July 2009. Both orders expired last Jan. 12.

Favila did not say when new EOs would be issued.