A review on the continued low tariff on pork imports is premature at this point, according to the Tariff Commission (TC) hearing the issue on Wednesday.
Executive Order 10 signed by President Ferdinand Marcos Jr. in December extended the most favored nation (MFN) tariff on pork, corn, rice and coal.
Under the MFN, duty rates on pork will stay at 15 percent for in quota and 25 percent for out quota shipments until the end of the present year.
Ernesto Albano, TC commissioner, said the tariffs are “temporary” and may be reviewed or automatically reverted to their original rates.
Prior to the government lowering the tariff on pork, the in quota rates were at 30 percent while out quota rates were at 40 percent.
“A review would be premature at this time because the EO was just extended so how can we know if the EO was effective in terms of the objectives mentioned there? So, I think at this time, it would be premature to do that. I suggest you coordinate with the Department of Agriculture,” Marilou Mendoza, TC chairperson, told stakeholders at the hearing.
As this develops, local stakeholders ask the commission for a definitive plan on the tariffs, arguing it is necessary for adjustments to happen to avoid losses.
Chester Warren Tan, National Federation of Hog Farmers Inc. president, said the lowered pork tariffs have already been extended twice and stakeholders fear it could become permanent and impact local producer plans to expand and grow their hogs inventory.
“What we are afraid of is another extension. It (lower pork tariff) is also our plea if it could be reviewed or if it can be studied or cancelled and not extended again. We cannot answer our stakeholders. We may just wait for the decision before we decide as our (expansion) program may again be affected like last year,” Tan said.
Local producers also urged the commission the importation of offals must be allowed only for end-users and meat processors but not the traders who are the top buyers of the commodity.
Nicanor Briones, AGAP partylist representative, said the offal tariff must be returned to 40 percent for buyers who are not registered meat processors to avoid the practice of misdeclaration of meat products.
Briones said smugglers misdeclare meat types as offal shipments enjoy lower tariff rates.
Meanwhile, Jayson Cainglet, executive director at the Samahang Industriya ng Agrikultura, clarified the group does not oppose the importation of offals and only call for the meat importers to pay the correct tariff.
“For us, end-users must import. We are not opposing the importation (of offals) even if it reaches millions. They just have to pay the right tariff to help the local producers,” Cainglet said.
David Kapweng of the Meat Importers and Traders Association (MITA), said it is “extremely difficult” to bring smuggled meat unless “we are all of the opinion that there’s collusion within government.”
“The issue in smuggling, we felt, is a matter of enforcement. We believe there are more than enough policies and regulations in place to safeguard” commodities, Kapweng added.
In a separate statement, MITA said the most favored nation (MFN) tariff on pork offal has been in place since 1996 and it needs no extension.
MITA said they support reducing the rate on beef meat and beef offal to 5 percent and maintain the current pork meat tariff for the next five years while also reducing pork offal to 5 percent.
Under the 2022 tariff book, MFN tariff on frozen, fresh and chilled meat of bovine animals is 10 percent.
The MFN tariff on fresh, chilled and frozen meat of swine is 15 percent for in-quota and 25 percent for out-quota.
On sheep, horse, ass, mule and hinnies, the MFN rate is 5 percent while the in quota rate for goat meat is 30 percent and out-quota, 35 percent.
For fresh, chilled and frozen edible offal and tongues of bovine animals, the MFN rate is 7 percent while on liver it is 5 percent. All other remaining parts are also slapped a 7 percent duty.
For fresh, chilled and frozen edible offal of swine, the MFN rate is 7 percent with liver at 5 percent. All other parts are levied 10 percent.
