Reducing the Rate of Import Duty on Crude Oil as Provided Under Presidential Decree No. 1464, Otherwise Known as the Tariff and Customs Code of 1978, as Amended

EXECUTIVE ORDER NO. 306 October 20, 1987

REDUCING THE RATE OF IMPORT DUTY ON CRUDE OIL AS PROVIDED UNDER PRESIDENTIAL DECREE NO. 1464, OTHERWISE KNOWN AS THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED

WHEREAS, there is need to keep the prices of electricity and other basic commodities within the reach of the consuming public and to sustain the economic recovery efforts;

WHEREAS, the import duty on crude oil, a basic raw material of fuel oil and related products, has an impact on the prices of such commodities;

WHEREAS, further reduction in the rate of the customs duty on crude oil is consistent with government policy to subject raw materials to lower tariff rates than intermediate and finished goods.

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by Section 401 of Presidential Decree No. 1464, as amended, do hereby order.

Sec. 1. The rate import duty on crude oil falling under section 104 of the Tariff and...

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Summary of Executive Order No. 306

Reducing the Rate of Import Duty on Crude Oil
- Reduces the import duty rate on crude oil from 15% to 10% ad valorem (Section 1)
- Applies to crude oil falling under Tariff Heading No. 27.09 of the Tariff and Customs Code (Section 1)
- The reduced duty rate applies to crude oil entered or withdrawn from warehouses in the Philippines for consumption after the effectivity of the Executive Order (Section 2)
- Repeals or modifies all orders, issuances, rules, and regulations inconsistent with the Executive Order (Section 3)
- Takes effect thirty (30) days after the date of issuance (Section 4)

Reasons for Reducing Import Duty on Crude Oil
- To keep the prices of electricity and other basic commodities within the reach of the consuming public (Whereas Clause)
- To sustain the economic recovery efforts (Whereas Clause)
- The import duty on crude oil, a basic raw material of fuel oil and related products, has an impact on the prices of such commodities (Whereas Clause)
- Consistent with government policy to subject raw materials to lower tariff rates than intermediate and finished goods (Whereas Clause)