The Bureau of Customs (BoC) said it has issued a memorandum of understanding on the application of tariffs favored by the Philippines due to its free trade agreement (FTA) with South Korea.
In a statement on Monday, Commissioner Bienvenido Y. Rubio said the issuance of clear directives aims to promote “smooth transition and effective implementation” of the FTA between the two countries.
The Customs Memorandum Order (CMO), signed by Mr. Rubio, took office on Dec. 31 also defines “relevant provisions such as pre-export inspection or product inspection, procedures for the issuance of Certificates of Origin.”
In addition, the CMO provides sets of guidelines governing the application process for obtaining Authorized Exporter status, the obligations of the Authorized Exporter, procedures for completing Declarations of Origin, and verification agreements.
On December 23, President Ferdinand R. Marcos, Jr. released Executive Order (EO) 80, which called for the review of import duty rates on products covered by the FTA.
Under EO 80, goods from South Korea listed in the Philippine Tariff Obligation will be subject to reduced or zero tariff rates as long as these goods comply with specified rules of origin, including proof of origin.
“The issuance of this Customs Memorandum Order emphasizes the BoC’s commitment to facilitating trade and promoting economic relations with our global partners,” added Mr. Rubio.
“These broad guidelines are designed to ensure compliance with the agreement and maximize the benefits of preferential trade terms,” the BoC said.
In a separate statement on Monday, Customs also announced its Five-Point Priority Plan, which is a digital system for tax procedures, exceeding revenue targets, simplifying procedures and facilitating safe trade, curbing smuggling, and improving the welfare and development of workers.
Mr. Rubio also said he hopes the BoC will reach its P1.06-trillion revenue target for 2024. – Aubrey Rose A. Inosante
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