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European Chamber calls for EV tariff exemptions covering all countries of origin

REUTERS

THE European Chamber of Commerce of the Philippines (ECCP) urged the Philippines to eliminate tariffs on imports of all electric vehicles (EVs) regardless of country of origin.

In a statement, the ECCP sought tariff exemptions “for EVs imported from all countries — not only those coming from select economies.”

It is unclear whether the actual tariff reductions will be limited to certain supplier countries, as the proposed executive order (EO) on the tariff exemptions has not yet been released.

The National Economic and Development Authority (NEDA) Board has said only that it endorsed an EO cutting tariffs on EV imports.

In a letter to the Department of Energy (DoE), the ECCP said broad adoption of EVs will help the Philippines reduce its dependence on imported fuel.

“Import duties on all EVs should be lifted to accelerate the Philippines’ shift to EVs, and to spur demand for these vehicles amid high fuel costs,” the ECCP said.

The ECCP also declared its support for an EV tariff exemption on vehicles for household use until 2035.

The ECCP Automotive Committee called for the complete removal of tariffs on EV imports.

“Any types of EVs used for testing, research, marketing, and training must not be subjected to duties coming from any country,” the ECCP said in its letter to DoE.

Last week, the NEDA Board endorsed tariff reductions on EVs, including passenger cars, buses, minibuses, vans, trucks, motorcycles, tricycles, scooters, and bicycles. Tariff rates for EV parts will also be cut to 1% from 5%.

Separately, Trade Secretary Alfredo E. Pascual said during the 2022 Philippine-German Business Forum on Tuesday that the department will help promote EV adoption in the transition away from internal combustion engines.

“The Electric Vehicle Industry Development Act or EVIDA…. can offer targeted incentives to EV model and parts manufacturers in the country,” Mr. Pascual said.

“I opened a potential engagement between our two countries in the sunrise industry of EVs. The German government and the German private sector can tap the Philippines’ significant green metal reserves of nickel and copper,” Mr. Pascual said.

Separately, Mr. Pascual also solicited more partnerships with German companies in the information technology-business process management industry.

He said the initial targets are German firms that are already in the Philippines which are seeking to expand.

“Our government has made significant strides in creating an enabling environment for foreign businesses in support of our country’s recovery and growth,” Mr. Pascual added. — Ashley Erika O. Jose and Revin Mikhael D. Ochave

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