International Economics

International Economics

 

The Common Effective Preferential Tariff (CEPT) Agreement for the ASEAN Free Trade Area (AFTA) requires that tariff rates among ASEAN members on a broad range of products be reduced to between zero and five percent, while quantitative restrictions and other non-tariff barriers are to be eliminated.

Philippines used quantitative restrictions to protect the domestic industry from an import surge. The National Food Authority (NFA) for instance, administers quantitative restrictions on rice imports.  Both in-and-out-quota tariffs are 50 percent. As a result to this restriction, rice is commonly illegally imported or smuggled into the country from other countries. However in 2003, the Philippine Department of Agriculture opened up the importation of rice to the private sector. Prior to this, the NFA could legally import rice; however the U.S. Government has raised concerns.

            This kind of restriction has made the Philippine government progress during the last several years toward bringing its customs regime into compliance with its WTO obligations. It enacted legislation, R.A. 8181 (1996) and R.A. 9135 (2001) and a series of supporting regulations. The supporting regulations also provided the Bureau of Customs with the authority to create a post-entry audit unit, a risk management unit and a border control unit charged with IPR enforcement.

The 2001 law restricted private sector involvement in the valuation process and clarified that reference values may be used as a risk management tool, but not as a substitute value for valuation purposes.

 

References:

Pernia, Ernest M. (2002). The rural road to poverty reduction: some lessons from the Philippine experience. Journal of Asian and African Studies.

Zoellick, Robert B. (2004). 2003 National Trade Estimate Report on Foreign Trade Affairs. The Office of the United States Trade Representative (USTR). Retrieved November 25, 2004 from (http://www.ustr.gov/assets/Document_Library/Reports_Publications/2004/2004_National_Trade_Estimate/2004_NTE_Report/asset_upload_file231_4191.pdf)

 

 

Credit:ivythesis.typepad.com