What is a comprehensive

tariff program ?
 A comprehensive tariff program
• Undertaken to lay down the most favored nation tariff structure of all products falling under chapters 1 to 97 of
section 104 of tccp ( 1611 of cmta );
• Periodic review aims to provide transparency and predictability for industries to undertake strategic business
planning over period of 5 years.
• Was carried out in 2005 to set the tariff structure from 2006 to 2010
– The result of this program took effect in 2007 with the issuance of eo 574 which provided a dynamic
landscape leading to the recalibration of the Philippine tariff structure consistent with the promotion of the
Philippine industries.
• The 2nd comprehensive tariff program was undertaken to put place the mfn structure from 2011 to 2015. The 2nd
ctp was intended to assist the business community plan their trade strategies, enhance certainty in trade
facilitation, and create opportunities for growth and greater employment
– The 2nd ctp was concluded with the issuance of eo 61 on oct 17 2011 which took effect on jan 14 2012
• The 3rd ctp was conducted to lay down the mnf structure for 2016 to 2020
– Completed upon the issuance of and effectivity of eo 20 on april 27 2017 and june 17 of 2017
– Provide for the mnf tariff schedule from 2017 to 2020
– Promote industry competitiveness
– Ensure compliance by the Philippines with its international tariff commitments, and preserves policy
flexibility for international trade negotiations
 What is the current tariff structure ?
• The figure in the next slide shows that from
TRO 1 to the current tariff structure, staggered
cuts were implemented beginning 2002 when
government adopted the policy to decelerate
the speed of tariff reduction program to
support critical industries. The average
nominal tariff has been reduced by 83% from
41% in 1980 to the current average of 7% in
2017
• the EO 20 maintained the tariff rates for 85% or 8460 lines, of total tariff
lines rates were reduced for 722 tariff lines referring to,
1. Among others
2. Live breeding animals
3. Seeds for sowing
4. Food preparations for infants
5. Steel billets
6. Liquid dielectric transformer
7. Lithium-ion batteries
8. Life jackets and betls
9. Cables and other insulated electrical conductors
10. Various capital equipment and
11. Spare parts and accessories
The duties on 2 tariff lines referring to high impact polystyrene (HIPS) were
increased from 3% to 10% to align with the rates of duty of other
polystyrene. An additional tariff line, mandatory under the ASEAN
harmonized tariff nomenclature (AHTN), was created for electrical energy
(ATHN Code 2716.00.00) with a tariff rate of 0%
What is the total number of tariff lines
for each tariff level ?
• Ranges from 0% to 65% ( from table 2 )
The result of the CTP under EO 20 increased the number of tariff lines by 2%,
from 9 822 tariff lines to 10 004 tariff lines.
– These 10 004 tariff lines include the 742 tariff lines created under EO 21 which
to the Philippines’ world trade organization (WTO) – information and
technology agreement (ITA) expansion schedule
• Adoption and implementation of the 2017 version of ahtn
– Increased the number of tariff lines by 11% = 1054
– Futher subdivision of certain tariff lines beyond 8 digit quota rates for commodities like
• Rice
• Sugar
• Meat
• Coffee
What is the total number of tariff lines
for each tariff level ?
• Under 2017 tariff structure, almost 13% of
total tariff lines are at 0; 42% are dutiable at
1% to 5%; 36% have rates of duty of 7% to
15%; and 9% remain as high tariff items which
import duties of 20% to 65%
• Mnf tariff rates (%)
• Rice and sugar have the highest tariff rates at 50% to
65% respectively
• About 170 sensitive agricultural products are subject
to in quota rates of 30% to 50% and out quota rates
– Rice
– Sugar
– Coffee and coffee extracts
– Potatoes
– Certain live animals and animal products
– Certain meat and edible meat offal
• Rates of 20% to 30% are generally levied on automobiles and parts, chemical
wastes, made up textile articles, high value crops, the aforementioned in quota
agricultural products and other strategic merchandise; rates of duty at 5% to 15
are applied to garments, plastics, footwear, wood and wood products, steel
products and other semi manufactured goods
• Rates of duty 3% and below are levied on crude oil, petroleum products and
asphalts, input to manufactured goods, not locally produced products, and those
that are committed for tariff elimination under wto-ita and united nation
education, scientific and cultural organization(unesco) florense agreement