Lower tariff rate for mechanically deboned chicken extended until end-2024

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Image by Eko Anug from Pixabay
  • The 5% tariff rate for mechanically deboned chicken and turkey meat will be extended until December 31, 2024
  • The policy is contained in Executive Order 13 signed on January 13
  • EO 13 noted the need to for continued lower tariff “to ensure continued supply of essential food products at affordable prices, diversity the country’s market sources”
  • It added the COVID-19 pandemic “as well as other factors affecting the country’s traditional sources of mechanically deboned meat of chicken and turkey cause uncertainty in the steady supply of said commodities”

President Ferdinand Marcos Jr. has approved a two-year extension of reduced import duty rates on mechanically deboned meat of chicken and turkey until December 31, 2024.

Executive Order No. 13, signed on January 13, said there “is a need to maintain the reduced tariff rates on mechanically deboned meat of chicken and turkey to ensure the continued supply of essential food products at affordable prices, diversity the country’s market sources, and help businesses recover and sustain their operations.”

It added the COVID-19 pandemic “as well as other factors affecting the country’s traditional sources of mechanically deboned meat of chicken and turkey cause uncertainty in the steady supply of said commodities.”

When EO 13 takes effect, all covered articles that are taken into or withdrawn from warehouses in the Philippines for consumption will be levied the prescribed most-favored nation (MFN) rate of duty of 5%.

EO 13 extends the effectivity of EO 123, which maintained the temporary rates provided under EO 82.

Processed meat products are popular among most low-income households, particularly since mechanically deboned meat is a vital component in manufacturing hot dogs and canned luncheon meat.

The MFN rates will be subject to a review after one year of implementation of the EO.

By 2025, the MFN rate of duty will return to 40% for chicken, and 30% for in quota and 40% for out quota for turkey.