Duterte signs EOs extending incentive on capital equipment, zero-duty on agri products

President Rodrigo Duterte has extended the capital equipment incentive for enterprises registered with the Board of Investments and the reduced most-favored-nation rates of duty on agricultural products, according to executive orders Malacañang released on Monday.

Executive No. 22 or “Reducing the rates of duty on capital equipment, spare parts and accessories imported by Board of Investments-registered new and expanding enterprises,” was signed by the President on April 28.

It replaced EO No. 20 (s. 2012) that provided for zero percent duty on certain items imported by BOI-linked firms for five years. It expired on May 9.

“The grant of duty-free importation of capital equipment will further enhance industry competitiveness in line with the Philippine Development Plan (PDP) 2017-2022,” the EO said.

The EO will take effect for one year after it is published in a newspaper.

Data from the Philippine Statistics Authority showed investment in the fixed capital formation slowed down to 11.8 percent in the first quarter of the year, compared with 28.3 percent a year earlier.

The same data also revealed that government final consumption expenditures grew by 0.2 percent in January to- March, compared with the 11.8 percent in the same comparable period.

"On the demand or expenditure side, the economy remained strong, even with the slowdown in household spending and capital formation," Socioeconomic Planning Secretary Ernesto M. Pernia last week said during a presentation on the first-quarter economic performance.

Duterte also signed EO No. 23 on April 27. The EO is titled “Extending the effectivity of the most-favored-nation rates of duty on certain agricultural products under Republic Act No. 10863, otherwise known as the Customs Modernization and Tariff Act, and the other Philippine commitments under the World Trade Organization Decision on Waiver Relating to Special Treatment for Rice of the Philippines.”

The EO noted that the waiver will expire on July 1. But the National Economic and Development Authority (NEDA) Board approved on February 20 the reduced rates of duty on certain agricultural products for another three years.

Other EOs released on Monday were EO No. 20 or “Modifying the nomenclature and rates of import duty on various products under Section 1611 of Republic Act No. 10863 or the Customs Modernization and Tariff Act,” and EO No. 21 or “Modifying the nomenclature and the rates of import duty on certain information technology products under Section 1611 of the Customs Modernization and Tariff Act, in order to implement the Philippines’ tariff commitments under the World Trade Organization–Information Technology Agreement.” — With Jon Viktor Cabuenas/ VDS, GMA News