Executive Secretary Lucas Bersamin (PPA POOL)
MANILA, Philippines — To boost housing and infrastructure projects, Malacañang has slashed the import duty on natural gypsum and anhydrite to zero for five years. These two are raw materials for plasterboards and cement.
This was contained in Executive Order No. 46 signed by Executive Secretary Lucas Bersamin on Nov. 3, which was published 10 days later, on Nov. 13, in the Official Gazette.
The directive stated the modified rates of import duty on the two raw materials would take effect 30 days after publication and would be reviewed yearly starting in 2025.
EO 46 came after the National Economic and Development Authority (Neda) endorsed a reduction in the most-favored-nation (MFN) tariff rates on the two raw materials from three percent to zero last Sept.
The MFN, as explained in the website of the Corporate Finance Institute, is “a stipulation that requires a country to provide concessions, privileges, or immunities that are to be granted to one nation in a trade agreement or to be granted to all other countries that are members of the World Trade Organization (WTO).”
It added MFN is a “principle of international law that requires the treatment of foreigners and local to be equal. The most-favored-nation clause is a foundation of the WTO’s trade law.”
Republic Act No. 10863 or the “Customs Modernization and Tariff Act” authorized the president to increase, reduce or remove existing rates of import duty upon Neda’s recommendation and “in the interest of general welfare and national security.”