Business planners are currently relying on 2005 tariff rates, at least for the first quarter or the first half of 2006, as the technical committee of the Cabinet-level TRM has not yet finished its own review of the earlier submitted comprehensive overhaul done by the Tariff Commission.
Industry sources said the delay in using the 2006 tariff rates could result in unexpected higher cost especially if there is an increase in tariff rates of imported raw materials.
The technical committee of the TRM is still conducting its line-by-line review.
Industries had thought that the delay in the announcement of the 2006 tariff program was part of the strategy of the Philippine trade negotiating panel in the December meeting of the World Trade Organization (WTO) in Hong Kong.
However, industries are now pressing the TRM to hurry up their work.
The Tariff Commission has been pushing for an early publication of the tariff schedule covering the period 2006 to 2010 to allow industry and business better planning tools.
However, the TRM technical committee wants to leave up to the CTRM the crucial decision to publish the country’s tariff schedule for 2006-2010.
The Tariff Commission which had completed its review of the country’ tariff program middle of last year had recommended that about 30 percent of the rates to be reduced, 50 percent would be maintained and about 20 percent would be raised.
The TRM technical committee, however, may or may not follow the Tariff Commission’s recommendations.
Normally the tariff schedule is published on an annual basis.
This time around it was suggested that publishing the rates for 2006 to 2010 would be a big help for planning purposes of industries and business because it would establish predictability.
An annual or bi-annual publication, for trade negotiating purposes, however, would be more favorable in negotiations so that the Philippines’ position is not exposed.