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President Ferdinand R. Marcos, Jr. issued Executive Order No. 80 implementing the Philippine schedule of tariff commitment under the Free Trade Agreement with South Korea
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Under the FTA, South Korea will remove tariff on 94.8% of all items and the Philippines will lift tariff on 96.5% of all products traded
President Ferdinand R. Marcos, Jr. has issued Executive Order No. 80 implementing the Philippine schedule of tariff commitment under the Free Trade Agreement with South Korea (PH-KR FTA).
In issuing EO 80 signed by Executive Secretary Lucas Bersamin, the President said there is a need to modify rates of import duty on certain imported articles for the country to comply with the Philippine Schedule of Tariff Commitments under the PH-KR FTA.
The EO, signed last December 23 but took effect on December 31, stated all articles listed in the Philippine Schedule of Tariff Commitments under the PH-KR FTA shall be subject to the rates of import duties at the time of importation.
READ: Philippines-Korea FTA to take effect Dec 31
“All originating goods from Republic of Korea listed in the aforementioned Philippine Schedule of Tariff Commitments under Section 1 hereof, that are entered into or withdrawn from warehouses or free zones in the Philippines for consumption or introduction to the customs territory, shall be levied the rates of duty as prescribed therein, subject to the submission of a Proof of Origin, in compliance with all applicable requirements under the PH-KR FTA,” it added.
Under the FTA, South Korea will remove tariff on 94.8% of all items and the Philippines will lift tariff on 96.5% of all products traded, according to South Korea’s Ministry of Trade, Industry and Energy.
“With a detailed framework that covers 97 percent of imports, this agreement is anticipated to open doors to significant trade and investment opportunities in diverse sectors like agriculture, industry, infrastructure and energy,” the Korean embassy in the Philippines said in a statement on December 23.
The FTA is also seen to foster collaboration in areas such as health care, carbon reduction, innovative technologies and electric vehicles.
“Moreover, Korean companies will contribute to the Philippines’ economic development by creating quality jobs through expanded investments in advanced manufacturing, including automobiles, electronics, and energy,” the embassy added.
Korea Trade Minister Cheong In-kyo, in a business briefing on December 26, said the FTA will also support South Korea in expanding automobile exports, as the 5% tariff on cargo trucks and passenger vehicles will be eliminated immediately, while tariffs on eco-friendly vehicles will be phased out within five years.
The Philippines and the Republic of Korea signed the PH-KR FTA during the 43rd Association of Southeast Asian Nations (ASEAN) Summit held in Indonesia in September 2023.
The PH-KR FTA was signed to further strengthen economic partnership and bilateral trade between the Philippines and Republic of Korea by reducing and eliminating tariff restrictions in support of government efforts to manage competitive exclusion, encourage more foreign direct investments, and secure more preferential concessions than those currently available under existing agreements.
President Marcos ratified the PH-KR FTA on May 13, 2024, with the Senate concurring in its ratification through Senate Resolution No. 1188 dated September 23, 2024.
