Government extends zero-duty food wheat imports

MANILA, Philippines - The government has approved the six-month extension of the duty-free importation of food wheat and cement.

Trade Secretary Peter Favila said that executive orders would be issued to put this into effect and would come out as soon as possible.

Just like in Executive Orders 765 and 766, the zero tariff would be enjoyed by importers of food wheat and cement and cement clinkers.

Favila said that the zero tariff privilege could be reviewed at any time.

He said the affected sectors, specifically the bakers, should reflect the effects of the zero tariff on the price of their products.

Favila said that the consumers should enjoy lower prices of pan de sal and other bread products as a result of the executive order.

President Arroyo issued E.O.s 765 and 766 in November last year which gave imports of food wheat, cement and cement clinkers a most favored nation rate of duty of zero percent ad valorem for six months.

Feed wheat or wheat used for breeders of livestock would not enjoy duty free privileges.

Favila pointed out that feed wheat was excluded in the E.O. based on the projection of the Department of Agriculture that this year would see a very high corn harvest.

“So that would take care of the needs of the food processors,” Favila said.

The flour manufacturers and bakers have been calling for the extension of the zero tariff on wheat imports because of the rising cost of wheat in the world market.

Press Secretary Cerge Remonde said that the government expects the construction sector, including the socialized housing of the administration to benefit from the expected reduction in the cost of cement.