The Republic of the Philippines, 2002
Chapter 1 : Tariffs |
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Objective
APEC economies will achieve free and open trade in the Asia-Pacific region by:
a. progressive reduction of tariffs until the Bogor goals are fully achieved; and
b. ensuring the transparency of APEC economies’ respective tariff regimes.
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Guidelines
Each APEC economy will:
a. take into account, in the process of achieving the above objective, intra-APEC trade trends, economic interests and sectors or products related to industries in which this process may have positive impact on trade and on economic growth in the Asia-Pacific region;
b. ensure that the achievement of the above objective is not undermined by the application of unjustifiable measures; and
c. consider extending, on a voluntary basis, to all APEC economies the benefits of tariff reductions and eliminations derived from sub-regional arrangements.
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Collective Actions
APEC economies will:
a. participate and ensure the expeditious supply and updates of the WTO Integrated Database and any other APEC databases;
b. arrange for seminars and/or workshops on industrial tariffs negotiations in consultation with international organisations, where appropriate, including WTO Secretariat on WTO Integrated Tariff Database; and
c. study lessons from modalities for tariff reduction and elimination in regional arrangements.
The current CAP relating to tariffs can be found in the Tariffs and Non-Tariff Measures Collective Action Plan
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The Philippines' Approach to Tariffs in 2002
The Philippines continues to pursue the Tariff Reform Program, a comprehensive review and rationalization of the country’s tariff structure which started in 1980. The Program calls for the progressive reduction in applied rates of duty. The targeted final rate under the Program is a uniform rate of 5% by year 2004, except for “sensitive” agricultural products. “Sensitive” agricultural products relate to those agricultural products the quantitative restrictions of which were lifted and converted into tariff equivalents under the WTO Agreement on Agriculture (please see Attachment A for the list of “sensitive” agricultural products).
The Philippines continues to reduce bound tariffs in line with WTO commitments. It has eliminated tariffs on substantially all information technology products by the agreed timetable of 2000 under the WTO Information Technology Agreement (ITA).
The Philippines participates in the Common Effective Preferential Tariff Scheme for the ASEAN Free Trade Area (CEPT-AFTA). Under the CEPT Scheme, the Philippines will reduce tariffs to 0-5% by 2002, with some flexibility. Tariffs on 60% of the products included in the CEPT Scheme will be reduced to 0% by 2003; those on “sensitive” agricultural products to a range of 0-5% by 2010.
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The ongoing Tariff Reform Program is considered the most significant tariff liberalization initiative ever undertaken, on a most-favored-nation basis, by the Philippine Government as it would bring down to 5% tariffs across all product sectors, with the exception of “sensitive” agricultural products.* The magnitude of the tariff reductions may be gleaned from the table below which show the simple average applied tariffs by sector prevailing in 1996 and in 2002.
Sector 1996 2002
All goods 13.99 5.27
Agriculture excluding fish** 17.94 6.81
Fish and fish products 19.80 7.06
Petroleum oils 5.40 2.60
Wood, pulp, paper and furniture 17.59 6.02
Textiles and clothing 21.19 9.53
Leather, rubber, footwear and travel goods 17.60 5.63
Metals 13.77 4.49
Chemical and photographic supplies 7.69 3.59
Transport equipment 14.33 7.91
Non-electric machinery 6.25 1.88
Electric machinery 13.13 3.93
Mineral products, precious stones and metals 10.44 4.13
Manufactured articles, n.e.s. 15.65 4.09
* The figures provided for this sector do not include "sensitive" agriculture products.
The Philippines' Approach to Tariffs in 2002 |
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Section |
Improvements Implemented Since Last IAP |
Current Tariff Arrangements |
Further Improvements Planned |
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Bound Tariffs
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Reduced bound tariffs in line with WTO commitments. As a result, the simple average bound tariff fell from 27.53% in 2001 to 26.18% in 2002.
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The Philippines continues to reduce bound tariffs in line with WTO commitments. 65% of the Philippines’ total tariff lines are bound under the WTO. Tariffs on industrial products, except textiles, reached their bound levels in 1999. Tariffs on agricultural and textile products are being reduced and will reach their bound levels in 2003 and 2004, respectively.
The contact person for further information is:
The Chairman Tariff Commission Philippine Heart Center Building East Avenue, Diliman Quezon City
Tel: (632) 926-2805 Fax: (632) 921-7960 E-mail: tarcm@pworld.net.ph
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The Philippines will continue to reduce bound tariffs on agricultural and textile products as per WTO commitments. |
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Applied Tariffs
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Reduced the simple average applied tariff from 6.70% in 2001 to 5.27% in 2002.
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The Philippines is implementing the Tariff Reform Program that calls for the progressive reduction of applied tariffs. The targeted final rate is a uniform rate of 5%, except “sensitive” agricultural products.
Tariffs for products covered under the Early Voluntary Sectoral Liberalization (EVSL) initiative are being reduced in line with the Tariff Reform Program.
Detailed information on
the Philippines’ applied tariffs may be obtained from http://www.apectariff.org/tdb.
The contact person for further information is:
The Chairman Tariff Commission Philippine Heart Center Building East Avenue, Diliman Quezon City
Tel: (632) 926-2805 Fax: (632) 921-7960 E-mail: tarcm@pworld.net.ph
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The Philippines will progressively reduce applied tariffs in line with the Tariff Reform Program. |
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Tariff Quotas
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Increased tariff quotas in line with WTO commitments.
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The Philippines maintains tariff quotas for “sensitive” agricultural products, the quantitative restrictions of which were lifted and converted into tariff equivalents under the WTO Agreement on Agriculture. These products include live animals (except live bovine animals), pork, sheep or goat meat, poultry meat, potatoes, coffee, maize and sugar.
The contact person for further information is:
The Chairman Tariff Commission Philippine Heart Center Building East Avenue, Diliman Quezon City, Philippines
Tel: (632) 926-2805 Fax: (632) 921-7960 E-mail: tarcm@pworld.net.ph
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The Philippines will gradually expand tariff quotas according to WTO commitments. |
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Tariff Preferences
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Reduced the simple average preferential tariff from 3.87% in 2001 to 3.39% in 2002.
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The Philippines participates in the Common Effective Preferential Tariff Scheme for the ASEAN Free Trade Area (CEPT-AFTA). As of 2000, the Philippines has phased in 100% of all manufactured products in the CEPT Scheme (except those in the General Exception List), with preferential tariffs of 20% and below. 97% of products in the Philippines’ Inclusion List are now dutiable at 0-5%.
The contact point for further information is:
The National AFTA Unit Bureau of International Trade Relations Department of Trade and Industry 361 Senator Gil J. Puyat Avenue Makati City 1200 Philippines
Tel: (632) 890-5149 Fax: (632) 890-4812 E-mail: bitr_mon@dti.dti.gov.ph
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Under the CEPT Scheme, the Philippines will:
- reduce tariffs to 0-5% by 2002, with some flexibility;
- reduce tariffs on 60% of the products included in the CEPT Scheme to 0% by 2003; and
- reduce tariffs on “sensitive” agricultural products to a range of 0% - 5% by 2010
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The Philippines conducts public hearings/consultations on petitions for tariff modification as well as Philippine participation in tariff schemes, e.g., WTO, CEPT-AFTA and EVSL. Tariff changes are published in two newspapers of general circulation before they take effect. Any new issuances are reflected in the Tariff and Customs Code of the Philippines. The Philippines also provides updates on tariff changes to the APEC Tariff Database and the WTO Integrated Database.
The contact person for further information is:
The Chairman Tariff Commission Philippine Heart Center Building East Avenue, Diliman Quezon City
Tel: (632) 926-2805 Fax: (632) 921-7960 E-mail: tarcm@pworld.net.ph
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Improvements in The Philippines' Approach to Tariff Measures since 1996 |
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Section |
Position at Base Year (1996) |
Cumulative Improvements Implemented to Date |
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Bound Tariffs
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In 1996, the Philippines’ simple average bound tariff stood at 31.56%. |
Reduced the simple average bound tariff to 26.1853% (1997-2001). |
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Applied Tariffs
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In 1996, the Tariff Reform Program was already being implemented, including the progressive reduction of tariffs on products covered under EVSL. The simple average tariff was 13.99%; those on EVSL sectors were as follows:
> environmental goods – 6.14% > fish and fish products – 19.12% > toys - 25.45% > gems and jewelry – 9.11% > medical equipment and instruments - 3.58% > forest products – 17.89% > oilseeds and oilseed products – 18.09% > chemicals – 6.39% > natural and synthetic rubber - 4.84% > fertilizers – 3.47% > food sector – 28.02% > energy sector – 9.15% > automotive – 14.80% > civil aircraft - 11.46%
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Reduced the simple average applied tariff to 5.27% (1997-2002).
The simple average applied tariffs on EVSL sectors have been reduced significantly:
> environmental goods – 2.56% > fish and fish products – 6.02% > toys - 5.50% > gems and jewelry – 4.59% > medical equipment and instruments – 2.57% > forest products – 5.77% > oilseeds and oilseed products – 5.29% > chemicals – 2.67% > natural and synthetic rubber - 2.26% > fertilizers - 1.10% > food sector – 8.21% > energy sector – 4.27% > automotive – 7.21% > civil aircraft - 3.82%
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Tariff Quotas
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In 1996, the Philippines had already promulgated the administrative order providing for the gradual expansion of tariff quotas according to WTO commitments.
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Gradually increased tariff quotas according to WTO commitments (1997-2002). |
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Tariff Preferences
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In 1996, the Philippines had already signed on to the CEPT-AFTA Scheme. The simple average preferential tariff was at 10.56%.
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Reduced the simple average preferential tariff to 3.39% (1997-2002). |
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Transparency of Tariff Regime
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In 1996, the Philippines was already conducting public hearings/consultations on petitions for tariff modifications. Any new issuances are reflected in the Tariff and Customs Code of the Philippines. Updates were being provided to the APEC Tariff Database and the WTO Integrated Database.
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(PLEASE COMPLETE BOXES) |
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All Goods |
Agriculture excluding Fish |
Fish and Fish Products |
Petroleum Oils |
Wood, Pulp, Paper and Furniture |
Textiles and Clothing |
Leather, Rubber, Footwear and Travel Goods |
Metals |
Chemical & Photographic Supplies |
Transport Equipment |
Non-Electric Machinery |
Electric Machinery |
Mineral Products, Precious Stones & Metals |
Manufactured Articles, n.e.s |
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Bound tariff lines as a percentage of all lines |
64.58 |
12.18 |
0.11 |
* |
2.02 |
14.51 |
1.12 |
3.61 |
11.68 |
0.96 |
7.68 |
4.17 |
2.42 |
4.10 |
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Duty-free tariff lines as a percentage of all lines |
5.87 |
0.80 |
0.07 |
0.00 |
0.14 |
0.04 |
0.07 |
0.14 |
0.36 |
0.23 |
1.63 |
1.55 |
0.33 |
0.51 |
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Preferential tariff lines as a percentage of all lines |
99.75 |
12.33 |
1.97 |
0.18 |
5.35 |
14.73 |
3.11 |
11.69 |
16.41 |
2.91 |
10.23 |
6.99 |
5.66 |
8.19 |
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Ratio of tariff lines with quotas to all lines |
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- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
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Simple average bound tariff rate |
26.18 |
36.24 |
33.50 |
* |
24.48 |
30.67 |
32.84 |
25.97 |
20.20 |
20.00 |
18.04 |
19.76 |
22.29 |
22.73 |
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Simple average applied tariff rate |
5.27 |
6.81 |
7.06 |
2.60 |
6.02 |
9.53 |
5.63 |
4.49 |
3.59 |
7.91 |
1.88 |
3.93 |
4.13 |
4.09 |
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Simple average applied preferential tariff rate, where applicable |
3.39 |
4.18 |
4.36 |
2.60 |
3.42 |
4.50 |
4.02 |
3.15 |
2.82 |
5.90 |
1.57 |
2.52 |
3.40 |
3.34 |
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Average applied tariff rate for all lines subject to duty |
5.60 |
7.28 |
7.33 |
2.60 |
6.18 |
9.55 |
5.77 |
4.54 |
3.67 |
8.61 |
2.24 |
5.06 |
4.38 |
4.35 |
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Import-weighted average applied tariff rate (CIF 2001) |
3.05 |
4.64 |
2.95 |
2.98 |
4.97 |
6.33 |
6.01 |
3.89 |
4.86 |
8.73 |
1.71 |
1.17 |
3.78 |
2.26 |
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Import-weighted average bound tariff rate (CIF 2001) |
19.95 |
31.81 |
11.49 |
* |
22.66 |
27.75 |
30.33 |
25.97 |
22.05 |
14.51 |
23.90 |
5.77 |
13.93 |
8.79 |
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