The Philippine has released the schedule of tariff commitments has under the Philippines-Korea Free Trade Agreement (PH-KR FTA) and the modified rates of import duty on certain imported articles under the trade deal.
The Bureau of Customs (BOC) Memorandum Circular (CMC) No. 208-2024, dated December 30, 2024, refers to Executive Order (EO) No. 80, which implements the said schedule of tariff commitments under the PH-KR FTA and modifies the rates of import duty on select imports.
The list of articles subject to the PH-KR FTA and their corresponding import rates may be accessed on the Bureau of Customs website at www.customs.gov.ph under “Issuances.”
“There is a need to modify the rates of import duty on certain imported articles to faithfully comply with the Philippine Schedule of Tariff Commitments under the PH-KR FTA,” based on the EO.
EO 80, signed last December 23, states that 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.
“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listed in the aforementioned Philippine Schedule of Tariff Commitments under Section 1 hereof, that are entered into or withdrawn from warehouses or free zones in the Philippines for consumption or introduction to the customs territory, shall be levied the rates of duty as prescribed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.
The Tariff Commission may be requested to issue advance rulings on the tariff classification of goods to confirm the applicable rates of duty of particular goods subject to EO 80.
The EO further states that the Philippine government may invoke its right of recourse to all trade remedy measures provided for in its laws, the PH-KR FTA, and other relevant international agreements in order to ensure the prevention of import surges or unfair trade practices.
The Philippines and South Korea signed the PH-KR FTA at the 43rd ASEAN Summit held in Indonesia on September 7, 2023. President Ferdinand Marcos Jr. ratified the FTA on May 13, 2024 and the Senate concurred on September 23 last year.
The PH-KR FTA aims to further strengthen economic partnership and bilateral trade between the two countries by reducing and eliminating tariff restrictions, encouraging more foreign direct investments, and securing more preferential concessions.
EO 80 shall have taken effect on December 31, 2024 following its complete publication in the Official Gazette or a national newspaper.
