Government sources said a mistake was committed in EO 334 which inadvertently raised tariff rates on completely knocked down (CKD) units of trucks and commercial vehicles from three percent to 10 percent.
The 10-percent tariff rate will be effective up to 2004 at which time it will be reduced to five percent.
Sources said the increase was "an honest mistake" that the government will try to rectify through an amending EO.
They said the increase is contrary to the intent of the government to eventually bring down its tariff wall as part of the country’s commitment to various international trade agreements.
Sources, however, said the amending EO cannot be issued until after the Congress goes into recess on Feb. 12.
Since the higher tariff rate in EO 334 is retroactive to January this year, sources said, truck and commercial vehicle manufacturers who are expecting CKD imports will have to pay the higher tariff rate or postpone their importations to Feb. 13 or later. The amending EO will also be retroactive.
Sources said importers who paid the higher tariff dues will be entitled to a tax refund. – Marianne Go