Zero tariffs on EVs, spare parts to widen choices for consumers

MANILA, Philippines — The issuance of an executive order that modified the  tariff on certain electric vehicles (EV) and their parts and components to zero for a period of five years is expected to widen the EV offerings to consumers in the country, according to an industry group.

In a statement, Electric Vehicle Association of the Philippines (EVAP) president Edmund Araga welcomed the issuance of EO 12.

“Finally our EV industry will totally roll out in line with EO 12   as it opens a very good opportunity for those   EV enthusiasts and advocates to own one,” Araga said.
“Consumers will experience a wide array of models to choose from depending on their preferences. As we all know, we now rely on importation of EVs, specifically

EV cars for personal mobility, which is far better than owning an internal combustion engine or even a hybrid,” he said.
Araga said the EO would support Republic Act 11697 or the Electric Vehicle Industry Development Act, which makes the EV industry promising.

According to the Presidential Communications Office, EO   12, signed by Executive Secretary Lucas Bersamin for the President on Jan. 13,  temporarily cuts the Most-Favored Nation (MFN) tariff rates to zero percent on completely built-up units of certain electric vehicles, except for hybrid-type EVs.

“The move will help boost the electric vehicle market in the country, support the transition to emerging technologies and encourage consumers to consider electric vehicles as a cleaner and greener transportation option,” the PCO said.

In November, the National Economic and Development Authority (NEDA) board endorsed the temporary reduction of the MFN tariff rates on certain e-vehicles and their parts and com-ponents for a period of five years.

Under the EO, the MFN tariff rates shall be subject to review after one year from the implementation of the order.

The NEDA is directed to submit to the President, through the Office of the Executive Secretary, its findings and recommendations on the matter.

Trade Undersecretary and Board of Investments   managing head Ceferino Rodolfo said the coverage of only pure EVs is in line with the goal of developing the EV infrastructure in the country.

“We want to develop the infrastructure, such as the charging stations. The problem with hybrid is most of them will not need any charging station,” Rodolfo said.
He explained earlier that if hybrid is included in the EO, this may not lead to the development of charging stations.  

 Several foreign chambers have earlier expressed support for calls to include hybrid vehicles in the proposed executive order granting zero tariffs on the importation of EVs.

Korean Chamber of Commerce of the Philippines president Hyunchong Um earlier expressed support for the imposition of zero tariffs on EV imports.

He also supports calls of including hybrid vehicles under the planned zero tariffs.

“I think hybrid or a combination will be a good start, with changing the combustion engine to electric cars,” he said as he emphasized the need for setting up the EV infrastructure, partic-ularly charging stations.

The European Chamber of Commerce of the Philippines (ECCP) earlier submitted a position paper to the Department of Energy   arguing that the planned zero tariffs on EVs should also cover hybrids.