Rate of Duty

• Tariffs


  Taxes levied on goods entering (import tariffs) or exiting (export tariffs) a country
• Tariffs


  • Imposed to protect domestic producers (protective tariffs)
  • Imposed to raise revenue for the government (revenue tariffs)
• Types of tariffs

  • Specific tariffs (fixed duty on a good)
  • Ad-valorem tariffs (percentage of the good's value)
  • Compound tariffs (combination of specific and ad valorem)
• Tariff-rate quota


  A two-tier quota system that combines characteristics of both tariffs and quotas
• Tariff-rate quota system

  1. Initial quota of good allowed to enter at lower duty rate

  2. Once quota reached, more good can be imported but at higher tariff rate
• Tariff distortion

  When the level of tariff assigned to a good is not proportionate to the good's degree of processing
• With tariff liberalization, the tariff gap between types of goods will be negligible to none
• Export duty


  Tax levied on goods exiting a country
• Export duties on all export products (except for logs) were abolished under E.O. 26 (s. of 1986)
• Logs have a 20% export duty
• MFN (Most-Favored-Nation) tariff


  Non-discrimination principle of the WTO where Members apply equal treatment to all WTO Members
• Exceptions to MFN treatment

  • Reciprocal preferential tariffs (FTA/EP agreements)
  • Non-reciprocal preferential tariffs (GSP)
• Column 9 of TAP-AHTN 2017

  Specifies which AMSs and/or goods are eligible for Phil. ATIGA preferential rates
• Products in Schedule H of ATIGA shall not be subject to import duties reduction or elimination
• To avail of preferential FTA/EP tariffs


  1. Product must be originating and comply with ROO

  2. Product must be in the inclusion list

  3. Proof of Origin must be provided
• Reciprocal Tariff Rate Treatment


  Provision in ACFTA and AKFTA that enables a good placed in the Sensitive Track (ST) List of the exporting Partner to have an applied rate lower than the MFN rate of the importing Partner
• Tariffs


  Taxes levied on goods entering (import tariffs) or exiting (export tariffs) a country
• Tariffs


  • Imposed to protect domestic producers (protective tariffs)
  • Imposed to raise revenue for the government (revenue tariffs)
• Types of tariffs

  • Specific tariffs (fixed duty on a good)
  • Ad-valorem tariffs (percentage of the good's value)
  • Compound tariffs (combination of specific and ad valorem)
• Tariff-rate quota


  A two-tier quota system that combines characteristics of both tariffs and quotas
• Tariff-rate quota system

  1. Initial quota allowed at lower duty rate

  2. Imports above quota levied higher tariff rate
• Tariff distortion

  When the level of tariff assigned to a good is not proportionate to the good's degree of processing
• With tariff liberalization, the tariff gap between types of goods will be negligible to none
• Export duty


  Tax levied on goods exiting a country
• Export duties on all export products (except for logs) were abolished under E.O. 26 (s. of 1986)
• Logs have a 20% export duty
• MFN tariff


  Most-Favored-Nation tariff applied to imported goods not eligible for preferential tariff treatment
• MFN treatment

  Non-discrimination principle of the WTO where Members must impose equal treatment to all WTO Members
• Exceptions to MFN treatment

  • Reciprocal preferential tariffs (FTA/EP agreements)
  • Non-reciprocal preferential tariffs (GSP)
• Column 9 of TAP-AHTN 2017

  Specifies which AMSs and/or goods are eligible for Phil. ATIGA preferential rates
• Products in Schedule H of the ATIGA shall not be subject to import duties reduction or elimination
• To avail of preferential FTA/EP tariffs


  1. Product must originate and comply with ROO

  2. Product must be in the inclusion list

  3. Proof of Origin must be provided
• Reciprocal Tariff Rate Treatment


  Provision in ACFTA and AKFTA enabling goods in the Sensitive Track list to have a lower applied rate than the MFN rate
• Special laws granting tariff preference

  • Jewelry Act
  • Automotive Export Program and Natural Gas Vehicle Program for Public Transport
• Philippine legal enactments on import duty rates

  • MFN rate
  • ATIGA rate
  • AANZFTA rate
  • ACFTA rate
  • AHKFTA rate
  • AIFTA rate
  • AJCEP rate
  • AKFTA rate
  • PH-EFTA rate
  • PJEPA rate