DTI seeks review of EO lowering tariff on e-vehicles

MANILA, Philippines — The Department of Trade and Industry (DTI) said the inclusion of two-wheeled vehicles such as motorcycles under the executive order imposing zero tariffs on electric vehicles (EVs) would have to be reviewed a year after the EO’s implementation.

In a virtual briefing with reporters, Trade Secretary Alfredo Pascual explained that the zero tariff for EVs under EO 12 applies to four-wheeled vehicles, which is good for five years.

Section 2 of EO 12, which was issued in January, states that the most favored nation tariff rates under the issuance is subject to review after one year from the implementation of the order.

“For this purpose, the National Economic and Development Authority (NEDA) shall submit to the President, through the Office of the Executive Secretary, its findings and recommendations on the matter,” the EO read.

In a statement earlier this week, Electric Vehicle Association of the Philippines (EVaP) said that it has been pushing for all EVs to be zero tariff, including two-wheel vehicles, except for e-Jeeps and e-Trikes which have local manufacturing and assembly in the country.

The group made the statement yesterday to clarify recent reports that it does not support the DTI’s position of scrapping import tariffs for two-wheel electric-motorcycles.

EVaP president Edmund Araga said this move would not only benefit consumers by making EVs more affordable, but would also help the country achieve its goals of reducing greenhouse gas emissions and improving air quality.

“EVaP has been working closely with the government and other stakeholders to create a more favorable environment for EVs in the country. They have been advocating for the implementation of supportive policies, such as tax incentives and charging infrastructure development, to encourage the adoption of EVs,”the group said.

Meanwhile, Pascual said the DTI is selling the country as a hub for manufacturing goods, emphasizing its wider reach especially with the Regional Comprehensive Economic Partnership (RCEP) set to enter force in the country soon.

“I emphasize that we’re selling the Philippines as an excellent hub for manufacturing goods that will target sales in our region . and when we say region not just the ASEAN region because we already have the RCEP, so also included now are China, Japan, Korea, New Zealand and Australia,” Pascual said.

Signed in November 2020 by the Association of Southeast Asian Nations including the Philippines together with their trade partners China, Japan, South Korea, Australia and New Zealand, RCEP accounts for 30 percent of the world’s population, trade and gross domestic product.