December 29, 2024 | 12:00am
MANILA, Philippines — President Marcos has issued an executive order (EO) for the implementation of tariff commitments under the Philippines-South Korea Free Trade Agreement (FTA).
EO 80, signed by Executive Secretary Lucas Bersamin on Dec. 23, stated that all articles listed in the Philippine Schedule of Tariff Commitments under the FTA with South Korea shall be subject to the new 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listed in the aforementioned Philippine Schedule of Tariff Commitments under Section 1 hereof, that are entered into or withdrawn from warehouses or free zones in the Philippines for consumption or introduction to the customs territory, shall be levied the rates of duty as prescribed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 said.
The FTA will take effect on Dec. 31. Under the agreement, South Korea will remove tariffs on approximately 94.8 percent of Philippine products, while the Philippines will reciprocate by abolishing tariffs on about 96.5 percent of South Korean products.
The FTA will grant preferential duty-free entry on 11,164 tariff lines from the Philippines, accounting for $3.18 billion or 87.4 percent of South Korea’s imports from the Philippines.
The trade agreement is seen to enhance access for key Philippine products such as bananas, processed pineapples, various fruits, industrial goods and a diverse range of services in the Korean market.
Tariffs for Philippine bananas shall decrease by six percent by the end of the year and an additional six percent at the start of 2025, according to the Department of Trade and Industry (DTI).
DTI Undersecretary Allan Gepty earlier said the tariff rate for bananas would be reduced to zero in five years.
The FTA also eliminates tariffs on many automotive units and components from South Korea.
Apart from tariff reductions, the FTA includes provisions for capacity-building and technical cooperation between the two countries.
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