Tuesday, June 18, 2024

PH gov’t extends duty-free importation of electric vehicles to 2028

The National Economic and Development Authority (NEDA) board has extended the duty-free importation of electric vehicles (EVs) including parts and components until 2028 following the recent recommendation by the Committee on Tariff and Related Matters (CTRM).

NEDA secretary Arsenio Balisacan said the NEDA board chaired by President Ferdinand R. Marcos Jr., has agreed to maintain the Most Favored Nation (MFN) rate at zero until 2028 on 34 tariff lines of battery electric vehicles currently covered under Executive Order (EO) 12.

The NEDA board also decided to expand the list of articles with reduced duty to include e-motorcycles and e-bicycles, and nickel metal hydride accumulators, and reduce the duty on these articles to zero until 2028.

The expansion in the coverage of EO 12 also includes other types of EVs, particularly battery e-tricycles and quadricycles; battery, hybrid EV (HEV) and plug-in hybrid EV (PHEV) jeepneys and buses; HEV and PHEV cars and trucks as well as completely knocked down (CKD) EVs for all types of vehicles. The tariffs on these articles shall be reduced to zero until 2028.

“Executive Order No. 12 is designed to stimulate the electric vehicle (EV) market in the country, support the transition to emerging technologies, reduce our transport system’s reliance on fossil fuels, and reduce greenhouse gas emissions attributed to road transport,” said Balisacan.

“By encouraging consumers to adopt EVs, we are promoting a cleaner, more resilient, and more environmentally friendly transportation alternative,” said Balisacan, who also serves as the vice chairperson of the NEDA Board. 

He added that Marcos Jr. has further instructed the CTRM to conduct an annual review of the rates to ensure timeliness, applicability, and impact on the sectors concerned due to the modification in duties of EVs. 

The CTRM recommendation was based on the review of Executive Order (EO) No. 12 (s. 2023), which temporarily modified the rates of import duty on electric vehicles (EVs), their parts, and components under the purview of the Customs Modernization and Tariff Act.

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