The Philippines, however, is hoping to show enough documentation to the Singapore government that out of the total $8 million due to Singapore, about 70 percent can be offset by duty-free importation of certain petrochemical products imported by some companies located in special economic zones.
The Philippines, so far, has paid about $2.1 million to Singapore through an offsetting arrangement, leaving an outstanding balance of close to $6 million.
A team from Singapore that will also be attending the May 15 to 16 ASEAN Economic Ministers’ Retreat in Boracay is supposed to meet with the Bureau of Customs (BoC) to verify documentation for the duty-free importation of certain petrochemical products.
Malacañang has issued EO 316 way back in 2004 that would temporarily grant zero tariff rates on certain imported articles from Singapore as part of a compensation agreement with the island state over the delay in the Philippines’ lifting of tariff on petrochemical products under the CEPT scheme.
The Philippines had signed an agreement with Singapore last Aug. 31, 2003 that would compensate the island state for its decision not to block the Philippines’ request to maintain tariff protection for its ailing petrochemical industry.
The tariff offsetting arrangement would result in no cash out between the two countries.
The Philippines had maintained tariff cover for 11 petrochemical products locally produced by local petrochem firms up to last year.