BOC, Tariff Commission list articles under PH-Korea free trade agreement
PortCalls - 03 January 2025
BOC, Tariff Commission list articles under PH-Korea free trade agreement
By Roumina Pablo
The Bureau of Customs (BOC) and Tariff Commission (TC) have listed the articles covered by the Philippines-Korea Free Trade Agreement (PH-KR FTA), which took effect on December 31, 2024.
The articles and their corresponding import rates are contained in BOC Customs Memorandum Circular No. 208-2024 dated December 30, 2024.
The Tariff Commission Philippine Tariff Finder (PTF), on the other hand, has been updated to reflect the country’s schedule of tariff commitments under the new FTA. The PTF is an online frontline service developed and maintained by the TC to provide quick and accurate information on Philippine tariff rates. The PTF enables users to find Philippine tariff rates on specific products by typing in keywords or Association of Southeast Asian Nations (ASEAN) Harmonized Tariff Nomenclature (AHTN) Codes. Users can also now search for applicable Philippine tariff rates per country.
The release of CMC 208-2024 and the updating of the PTRF is in keeping with the issuance of Executive Order (EO) No. 80, which implements the Philippines’ schedule of tariff commitments under the PH-KR FTA, and modifies the rates of import duty on certain imported articles.
The EO, signed last December 23 and took effect on December 31, stated all articles listed in the Philippine Schedule of Tariff Commitments under the PH-KR FTA shall be subject to the rates of import duties at the time of importation.
“All originating goods from Republic of Korea listed in the aforementioned Philippine Schedule of Tariff Commitments under Section 1 hereof, that are entered into or withdrawn from warehouses or free zones in the Philippines for consumption or introduction to the customs territory, shall be levied the rates of duty as prescribed therein, subject to the submission of a Proof of Origin, in compliance with all applicable requirements under the PH-KR FTA,” the EO said.
Under the FTA, South Korea will remove tariff on 94.8% of all items and the Philippines will lift tariff on 96.5% of all products traded, according to South Korea’s Ministry of Trade, Industry and Energy.
“With a detailed framework that covers 97 percent of imports, this agreement is anticipated to open doors to significant trade and investment opportunities in diverse sectors like agriculture, industry, infrastructure and energy,” the Korean embassy in the Philippines said in a statement on December 23.
The FTA is also seen to foster collaboration in areas such as health care, carbon reduction, innovative technologies and electric vehicles.
“Moreover, Korean companies will contribute to the Philippines’ economic development by creating quality jobs through expanded investments in advanced manufacturing, including automobiles, electronics, and energy,” the embassy added.
Korea Trade Minister Cheong In-kyo, in a business briefing on December 26, said the FTA will also support South Korea in expanding automobile exports, as the 5% tariff on cargo trucks and passenger vehicles will be eliminated immediately, while tariffs on eco-friendly vehicles will be phased out within five years. –
