EXECUTIVE ORDER NO. 558 September 6, 1979
MODIFYING THE APPLICATION OF EXECUTIVE ORDER NO. 434, SERIES OF 1974, BY IMPOSING A 20% AD VALOREM DUTY ON LOG EXPORTS
WHEREAS, Presidential Decree No. 230, was promulgated in order to induce the processing of traditional export products and encourage the exports of manufactured and semi-processed goods;
WHEREAS, in view of the foreseen balance of trade deficit and the lead time to set-up the required wood processing facilities, it is prudent to maintain a limited volume of log exports, particularly at this time of favorable world market prices;
WHEREAS, for the effective implementation of the log export phase-out, it is necessary to prescribe not only quantitative restrictions but also fiscal disincentives as well;
NOW, THEREFORE, pursuant to the powers vested in me by Section 515 of Republic Act No. 1937, as amended by Presidential Decree No. 230 and No. 1416, I, FERDINAND E. MARCOS, President of the Philippines, do hereby direct and order that:
Sec. 1. Executive Order No. 434 which temporarily...
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Executive Orders
Modifying the Application of Executive Order No. 434, Series of 1974, By Imposing a 20% Ad Valorem Duty on Log Exports
Executive Order No. 558
Summary of Executive Order No. 558
Imposition of 20% Ad Valorem Duty on Log Exports
- Pursuant to Section 515 of Republic Act No. 1937, as amended by Presidential Decree No. 230 and No. 1416, the following provisions are ordered:
• Executive Order No. 434, which temporarily lifted the levying, assessing, and collecting of export tax and premium duty on wood products, is revised and modified. (Section 1)
• Logs, including poles, are now subject to the payment of 20% ad valorem export duty. (Section 1)
• The order takes effect immediately. (Section 2)
Background and Rationale
- Presidential Decree No. 230 was promulgated to induce the processing of traditional export products and encourage exports of manufactured and semi-processed goods.
- Maintaining a limited volume of log exports, particularly during favorable world market prices, is prudent in view of the foreseen balance of trade deficit and the lead time required to set up wood processing facilities.
- Prescribing fiscal disincentives, in addition to quantitative restrictions, is necessary for the effective implementation of the log export phase-out.
Imposition of 20% Ad Valorem Duty on Log Exports
- Pursuant to Section 515 of Republic Act No. 1937, as amended by Presidential Decree No. 230 and No. 1416, the following provisions are ordered:
• Executive Order No. 434, which temporarily lifted the levying, assessing, and collecting of export tax and premium duty on wood products, is revised and modified. (Section 1)
• Logs, including poles, are now subject to the payment of 20% ad valorem export duty. (Section 1)
• The order takes effect immediately. (Section 2)
Background and Rationale
- Presidential Decree No. 230 was promulgated to induce the processing of traditional export products and encourage exports of manufactured and semi-processed goods.
- Maintaining a limited volume of log exports, particularly during favorable world market prices, is prudent in view of the foreseen balance of trade deficit and the lead time required to set up wood processing facilities.
- Prescribing fiscal disincentives, in addition to quantitative restrictions, is necessary for the effective implementation of the log export phase-out.