The government has slashed the tariff for fresh and chilled potatoes for chipping to 3 percent from 40 percent, according to a report from the Foreign Agricultural Service (FAS) of the United States Department of Agriculture.
In a report, the FAS in Manila said the new tariff rate for in-quota chipping potatoes would take effect on June 17. Out-quota tariffs for fresh potatoes, however, will remain at 40 percent.
“The Philippines maintains an annual tariff-rate quota for fresh potatoes at 1,550 metric tons [MT],” the report read.
Last year the report noted that the US exported nearly $6.6 million of fresh or chilled potatoes to the Philippines, making it the largest exporter of potatoes to the country, followed by Germany and China.
In 2013 the Philippines formally opened its market to US fresh table-stock potatoes for consumption. The report noted that prior to granting market access, almost all fresh potatoes that entered were exclusively for chipping.
FAS noted that US potato exports to the Philippines have grown to 13,000 MT in 2016, from 5,300 MT in 2013.
FAS said the reduction in the tariff for chipping potatoes was contained in Executive Order (EO) 20 issued last month. EO 20 modified import duties on various products under the Customs Modernization and Tariff Act from 2017 to 2020.
A study released by the Philippine Institute for Development Studies (PIDS) in 2012 indicated that national potato production jumped to 124,600 MT in 2010, from 66,000 MT in 2001.
“However, importation also increased during the decade [2001-2010]. From a 2.2-percent share in the gross supply of potato in 2001, it became 13 percent in 2005 but decreased to 5.2 percent in 2010,” the study read.
The PIDS study also noted that more than 70 percent of potatoes produced locally are consumed directly, 23.5 percent are used for processing, while 4.7 percent are used as feed and waste.
