Wednesday, May 29, 2024

DTI proposes removal of tariff for electric vehicles for 5 years

To encourage the widespread adoption of electric vehicles (EVs) in the country, the Department of Trade and Industry (DTI) has put forth a proposal to temporarily remove tariffs on EVs for a period of five years.

Recognizing the potential of EVs in reducing the country’s reliance on oil and promote greener transportation system, the DTI said it aims to reduce the purchase price of EVs by eliminating tariffs.

“This move is expected to create a surge in demand for EVs, foster investments in EV charging infrastructure, and stimulate the growth of the local EV industry,” DTI secretary Fred Pascual said.

To initiate the process, the DTI has requested the Tariff Commission (TC) to conduct an investigation on EVs, as mandated by Section 1608 of the Customs Modernization and Tariff Act (CMTA). With this, the TC held a public hearing on May 12.

Based on its findings, the tariffs on e-jeepneys and e-tricycles will be retained at 20% or 30% to provide support for local producers and allow for a smooth transition.

The National Economic Development Authority (NEDA) Board approved an Executive Order (EO) on Nov. 24, 2022, which will implement the tariff modification for certain EVs and their parts and components.

EO No. 12, issued on Jan. 12, 2022 outlines the implementation of the tariff modification. It was officially published in the Official Gazette on Jan. 19, 2023 and became effective on Feb. 20, 2023, allowing for the review process to commence on 21 February 2023.

Under Section 2 of EO, a review of the tariff measure and its coverage is scheduled to take place one year after the implementation of the order.

The NEDA will subsequently submit its findings and recommendations to the Office of the President (OP).

Meanwhile, the DTI through its Digital Philippines Supply Chain and Logistics Management Division (DigitalPH-SCLMD), conducted a public consultation on May 23 regarding the proposed Joint Memorandum Circular (JMC) on Harmonized Online Freight Forwarder Accreditation (HOFFA).

Photo shows (from left) DTI Business Licensing and Accreditation Division (BLAD) chief Lucila C. Salili, DigitalPH assistant secretary Mary Jean T. Pacheco, DTI Consumer Policy Division (CPD) chief Emma A. Panopio; Civil Aeronautics Board (CAB) Air Carriers Account and Field Audit Division chief Maria Cecilia C. Paguirigan

DigitalPH assistant secretary Mary Jean T. Pacheco emphasized that the JMC aims to streamline the process of accreditation of sea and air freight forwarders by creating a unified application form and establishing a single system which will improve the process and promote ease of doing business for freight forwarders.

Further, Civil Aeronautics Board (CAB) Air Carriers Account and Field Audit Division chief Maria Cecilia C. Paguirigan, who was also in the meeting, reaffirmed CAB’s support to harmonize accreditation procedures with DTI’s Fair Trade Enforcement Bureau (FTEB).

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