Late MAV Plus imports to be considered out quota – BOC

MANILA, Philippines —Pork imports under the 2021 minimum access volume (MAV) Plus that arrive beyond Feb.28. will be considered as out quota imports, subject to higher tariffs, the Bureau of Customs (BOC) said.

The BOC, through Customs Memorandum Circular  44-2022, said the MAV Plus certificates issued beyond Feb.28 shall be assessed using the out- MAV Plus.

In a letter to Customs Commissioner Leonardo Guerrero dated Jan. 19, Agriculture Secretary William Dar asked the  BOC to accommodate the MAV import clearances of the MAV Plus imports that will arrive beyond Feb.28, provided that the issued date of the MAV import clearances (MAVIC) must be on or before Jan. 31.

“Steps should also be undertaken to collect additional duties on the difference between in-quota and out-quota rate on affected imports,” Guerrero said in the memorandum.

Under Executive Order 134, which expires in May, in-quota pork imports or those under the MAV are imposed a 10 percent tariff for three months and increased to 15 percent in the remaining months of the year. This is lower than the original rate of 30 percent.

In contrast, out quota pork imports are slapped with a 20 percent tariff for the first three months, which will be raised to 25 percent in the remaining months. This is lower than the original tariff of 40 percent.

President Duterte issued EO 133 in May last year, which expanded the MAV for pork imports  by 200,000 metric tons (MT). This expired on Jan. 31.

In his earlier request, Dar said  importers  reported that the usual import transit time of 45 days during pre-pandemic period may now take up to 120 days due to global shipping problems, which results in some MAV Plus pork imports to arrive  beyond Feb. 28.

“It is important to note that the intent of the MAV Plus 2021 scheme is to augment the supply of pork in the country to stabilize price and temper inflation,”Dar said.

In a letter addressed to Dar dated Feb.15, Guerrero said the BOC understands the need to extend the validity of the MAVIC beyond Feb.28 due to global shipping issues.

Guerrero, however, cited Section 1.K (15) of the Department of Agriculture (DA) Administrative Order No. 1, series 1998, on the rules and regulations of the MAV mechanism, which states that no MAV import clearance issued within MAV year shall be valid beyond February of the following MAV year.

Socioeconomic Planning Secretary Karl Chua earlier proposed the extension of the lower tariffs under EO 134, along with the additional MAV Plus volume,  until December, as part of the government’s measures to cushion the impact of the Ukraine-Russia conflict on domestic food prices.

The  proposal was also backed by the Philippine Association of Meat Processors Inc. (PAMPI) and the Meat Importers and Traders Association (MITA), with the latter proposing to incorporate the lower tariffs until 2025.

Local groups such as the National Federation of Hog Farmers Inc. president Chester Warren Tan and Samahang Industriya ng Agrikultura (SINAG) chair Rosendo So said  the extension of the measures would further discourage local hog raisers from repopulating, which is also critical in lowering pork prices.