Lower corn import tariff pushed

MANILA, Philippines — The Foundation for Economic Freedom (FEF) is pushing for the reduction in corn import tariff  from 15 percent to five percent to cushion a potential spike in animal feed costs.

FEF said yesterday that it had asked the Tariff Commission to keep the in-quota and out-quota tariff rates at five percent to reduce input costs for feed producers.

“By improving access to imported corn through a uniform tariff structure, the market becomes more responsive to fluctuations in demand, ensuring a steadier and more reliable supply of feed inputs,” the group said in a statement.

It added that this would also lead to more affordable prices for pork, chicken and eggs.

The group said implementing uniform tariffs can reduce input costs for feed producers, promote efficiency in the livestock and poultry industry, and improve competition within the value chain.

Imported corn has a minimum access volume (MAV) of 216,940 metric tons and is imposed a tariff of five percent for imports within the quota, while a 15 percent tariff is charged for shipments outside of the quota.

The FEF said that the Department of Agriculture’s (DA) proposal to increase the MAV for corn could entrench discretion-driven allocation, opening the door to rent-seeking, favoritism and regulatory capture.

The DA is proposing to increase the MAV for imported corn to help stabilize domestic prices.

“A quota system concentrates the power to determine who may import and in what volume, an approach that is inherently vulnerable to unequal access and even favoritism in decision-making,” it added.

The group said the proposed tariff scheme is scaled to avoid placing undue harm on local corn farmers, noting that revenues from tariffs can be used as support to increase local corn production .

The Philippine Maize Federation earlier said further easing tariffs on corn would result in the “collapse of farmgate prices, destroy livelihoods, and destabilize rural communities.”