MANILA, Philippines — President Ferdinand Marcos Jr. issued an executive order implementing the schedule of tariff commitment under the Free Trade Agreement with South Korea (PH-KR FTA), Malacañang said Saturday.
In issuing Executive Order (EO) 80 signed by Executive Secretary Lucas Bersamin on December 23, the President said there was a need to modify the rates of import duty on certain articles for the country to comply with the Philippine Schedule of Tariff Commitments under the PH-KR FTA.
Under the EO, 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 the 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listed in the aforementioned Philippine Schedule of Tariff Commitments under Section 1 hereof, that are entered into or withdrawn from warehouses or free zones in the Philippines for consumption or introduction to the customs territory, shall be levied the rates of duty as prescribed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,” EO 80 read.
The Philippines and South Korea signed the PH-KR FTA during the 43rd Association of Southeast Asian Nations Summit in Indonesia in September 2023.
The trade agreement aims to strengthen the economic partnership and bilateral trade between the two countries by reducing and eliminating tariff restrictions.
Marcos ratified the PH-KR FTA on May 13, 2024, and the Senate concurred in its ratification through Senate Resolution 1188 on Sept. 23, 2024.
“The FTA will strengthen our bilateral trade and investment relations with the Republic of Korea especially as it generates jobs and contributes to the Philippines’ value proposition as an ideal regional hub for smart and sustainable investments,” Marcos said.
Bilateral trade between the Philippines and South Korea amounted to $15.44 billion in 2022, making South Korea the Philippines’ 4th largest trading partner, according to data from the Department of Trade and Industry.
Among the Philippines’ top exports to South Korea are integrated circuits, semiconductors, and bananas.
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