Marcos Administration Acts to Remove Non-Tariff Barriers on Agricultural Imports

janimonow

April 21

In an effort to combat rising domestic prices and ensure a steady supply of agricultural products, Philippine President Ferdinand "Bongbong" Marcos Jr. has mandated the removal of non-tariff barriers to agricultural imports. This directive, encapsulated in Administrative Order 20, was signed by Executive Secretary Lucas Bersamin on April 18, 2024.

The order instructs the Department of Agriculture (DA), in collaboration with the Departments of Trade and Industry (DTI) and Finance (DOF), to simplify administrative processes and remove unnecessary regulations affecting the importation of agricultural goods. The aim is to enhance transparency, predictability in import policies, and ultimately, bolster food security and local agricultural production.

Significantly, the order includes provisions to expedite the licensing of importers, reduce the processing time for applications, and exempt certain traders from cumbersome registration requirements. It also allows for the importation of specified agricultural products beyond the minimum access volume (MAV), which refers to the quota of imported agricultural goods that can enter the country at a reduced tariff rate. Additionally, the order seeks to decrease or eliminate administrative fees associated with these imports.

To facilitate the quick handling of these imported goods, the Bureau of Customs (BOC) is directed to prioritize the unloading and release of agricultural products, in accordance with the Customs Modernization and Tariff Act (CMTA).

Another critical aspect of the order is the reconstitution of a surveillance team, led by the DA and including the DTI, BOC, the Philippine Competition Commission (PCC), and other relevant agencies. This team is tasked with monitoring the importation and distribution of agricultural products to prevent price manipulation and other unfair trade practices.

The departments involved are also required to develop guidelines for implementing the order and to report quarterly to the President on the progress of these initiatives.

This move comes as inflation in the Philippines recorded a rise to 3.7% in March, marking a consecutive monthly increase, driven largely by a significant hike in food and non-alcoholic beverage prices. The government's proactive stance aims to alleviate inflationary pressures and ensure that the population has access to affordable food supplies.