Philippine President Rodrigo Duterte has signed an administrative order (AO) removing non-tariff barriers and streamlining administrative procedure in the importation of agricultural products.
In AO No. 13 series of 2018 (AO 13-2018) signed on September 21, Duterte directs the National Food Authority (NFA), Sugar Regulatory Administration (SRA), and Department of Agriculture (DA) to coordinate with the Department of Trade and Industry (DTI) and undertake “immediate measures to remove administrative constraints and other non-tariff barriers on the importation of the agricultural products.”
The order notes the “urgent need to tame price spikes of basic agricultural commodities by adopting measures that remove non-tariff barriers and streamline administrative procedures to allow importation that will address shortfall on supply and ensure stable prices of agricultural products in the domestic market.”
AO 13-2018 states that non-tariff barriers and certain administrative constraints, procedures, and fees unduly add to the costs of importation and limit supply, which in turn pushes up the prices of agricultural commodities “to the detriment of Filipino consumers, especially the poor.”
A non-tariff barrier is a way to restrict trade using trade barriers in a form other than a tariff, such as quotas, levies, and sanctions.
The order is subject to conditions imposed by applicable laws and consistent with the involved agencies’ respective legal mandates.
Immediate measures include streamlining procedures and requirements in the accreditation of importers, and minimizing the processing time of application for importation, and exempting accredited traders from registration requirements.
It also orders facilitating the importation of certain agricultural products beyond their authorized minimum access volume (MAV) and, where applicable, reducing or removing related fees to ensure efficient supply of these goods in the domestic market at more affordable prices.
Moreover, it orders liberalizing the issuance of permits and accreditation of traders who want to import rice so as to break monopoly.
Lastly, and as may be necessary, the AO stipulates temporarily allowing direct importation by sugar-using industries to lower their input cost, subject to reasonable regulations.
On rice importation, AO 13-2018 authorizes the NFA Council to approve additional rice importation beyond the MAV commitment specified under Executive Order No. 23 series of 2017 for allocation to the private sector, subject to conditions imposed by Republic Act (R.A.) No. 8178 (Agricultural Tariffication Act), as amended, as well as other applicable laws.
The order also authorizes DA, in accordance with Section 61(c) of R.A. 8550 (The Philippine Fisheries Code of 1998), as amended, to issue the appropriate Certificate of Necessity to allow importation of adequate volumes of fish to augment the 17,000 metric tons of fish imports already being distributed in the market.
The Bureau of Customs (BOC), meanwhile, is instructed to prioritize the unloading and release of agricultural products imported under AO 13-2018, subject to Section 419 (Examination of Goods) of R.A. 10863, or the Customs Modernization and Tariff Act.
DA and DTI shall also take concrete steps to improve logistics, transport, distribution and storage of agricultural products to reduce input costs.
A surveillance team composed of DTI, NFA, National Bureau of Investigation, and Philippine National Police, assisted by the private sector, will monitor importation and distribution of agricultural products to ensure they arrive at warehouses and retail outlets, to prevent price manipulation as defined under R.A. 7581 (The Price Act), as well as to stop other forms of unfair commercial practices.
DA, DTI, NFA, SRA, and BOC are also directed to submit a monthly report to the office of the Executive Secretary on the status of implementation of AO 13-2018.
AO 13-2018 has been issued after the inflation rate hit 6.4% in August, the highest in the past nine years.
Meanwhile, the Philippine Ports Authority assured that the country’s ports “will remain healthy and clog-free” despite the possible increase in volumes of imports due to the effect of AO 13-2018, as “ports have enough room to handle holiday cargoes including the needs of the DA.”
