The Philippines is all set to implement the Regional Economic Cooperation Partnership (RCEP) starting today following the issuance of the customs memorandum order (CMO) setting the tariffs under the deal, according to DTI Assistant Secretary Allan Gepty.
The Bureau of Customs (BOC) in CMO 12-2023 and signed May 26 by Commissioner Bienvenido Rubio sets the guidelines on the issuance of proof of origin, granting of preferential tariff treatment, and verification procedures under RCEP.
Rubio said the CMO takes effect today, 60 days after the government deposited the instrument of ratification of RCEP with the Asean Secretary General on April 3.
The BOC’s CMO becomes the basis of all ports in implementing preferential tariffs on imports from RCEP member-countries
The CMO follows the issuance by President Marcos Jr. of an executive order modifying import duties, including necessary changes in classification and other import restrictions as required or appropriate to carry out RCEP.
Gepty in previous interviews had said upon effectivity of the RCEP, stakeholders can benefit from the improved market access the Philippines has secured in the agreement including the simplified rules agreed upon.
But Gepty noted the need to intensify its trade education and advocacy campaign to ensure stakeholders optimize the utilization of the RCEP agreement.
Under RCEP, the Philippines maintained the current preferential tariffs of 98.1 percent of the 1,718 agricultural tariff lines and 82.7 percent of the 8,102 industrial tariff lines.
Of the 1,685 agricultural tariff lines that are retained at current rates, 1,426 are maintained at zero, while 154 would remain in their respective most favored nation rates and excluded in any form of tariff concessions.
