Manila, Philippines – The Customs Office (BOC) has recorded levies amounting to £ 3 billion from pigmeat imports under a reduced tariff system, the Department of Finance (DOF) said.
In a statement, the DOF said the BOC reported 197 million kilograms (kg) of pork imports from April 7 to November 12 of this year.
However, the office estimated that it lost some 3.4 billion pesos in revenue in November due to the drop in the tariff regime.
The reduced tariff system was implemented in the second quarter of this year to stimulate the supply of pork and stabilize its retail prices in the domestic market.
As a reminder, President Rodrigo Duterte had issued a series of decrees that came into effect from April 7 to lower pork import tariffs and increase authorized meat import volumes to help stabilize supply. domestic and prices of this staple for the benefit of Filipino consumers.
Executive Decree (EO) No.128, which lowered pork import tariffs to 5% in its minimum access volume (MAV) and to 15% outside of the MAV for the first three months, was in effect. from April 7 to May 14.
EO 134, which replaced EO 128, set tariffs on pork imports under the MAV at 10 percent for the first three months and 15 percent over the next nine months.
For imports outside the MAV, tariffs are 20 percent for the first three months and 25 percent for the next nine months.
The one-year effectiveness of EO 134 began on May 15, 2021.
“To calculate the effect of the two OEs, we multiplied the assessed value of the meat by 25%, minus 5% and 15%, which were already paid for the 128 OE, and multiplied the assessed value by 20% and 15%. % for the OE. 134. The result showed a loss of revenue of 3.4 billion pesos, ”BOC commissioner Rey Leonardo Guerrero said in a recent meeting with the DOF.
Guerrero said the volume of pork imports started to increase in March and increased continuously from April to May, but fell from June.
The volume of pork imports in April, the month in which the two EOs came into effect, increased by 500.46 percent, from 4.07 million kg in the same month last year to 24.45 million kg. kg.
This dramatic increase in pork import volumes continued into May, when a total of 36.5 million kg entered the country, which is a 506% increase from the 6.02 million kg imported during the same period in 2020, “said the BOC.
In June, the bureau said pork imports reached 33.62 million kg, up 531.39% from the 5.32 million kg brought into the country during the same period last year. .
“Pork imports continued to decline steadily in July, when volumes totaled 31.18 million kg, or 370.4% more than the 6.63 million kg recorded in the same month of 2020,” he added.
The agency also noted that in August, pork imports increased 271.59% year-on-year, and fell to 164.55% in September and 78.47% in October.
The import volume of pork was 6.41 million kg in August 2020 and 23.82 million kg in August 2021; 9.73 million kg in September 2020 and 25.73 million kg in September 2021; and 10.85 million kg in October 2020 and 19.36 million kg in October 2021.
From November 1 to 12, pork imports of 7.47 million kg were down 11.64 percent from 8.46 million last year for the same period.