Executive order on EV import duties signed into law

The Philippines moves another step closer to adopting electric vehicles (EV) on a larger scale as an executive order cutting down EV import duties is now formally a law. 

Executive Order 12 is now law with President Ferdinand Marcos, Jr.'s signature

President Ferdinand Marcos, Jr. recently signed Executive Order 12 that temporarily amends the Customs Modernization Act by removing tariffs on EVs imported into the country. Taxes levied on imported charging and distribution parts for such vehicles, as well as other equipment related to their production, have likewise been suspended. 

The law effectively waives the 30 percent import duties on EVs intended for personal or commercial use. Certain electric motorcycles are also exempted from import duties. By removing the tariffs, the law supplements the current Electric Vehicle Industry Development Act or EVIDA Law in making EVs more affordable to a wider market.

Tariffs for EVs and charging equipment will be suspended for a period of five years 

These tariff suspensions on qualified EVs will be in effect up to five years from when EO 12 became law. By the end of that time, the import duties and corresponding prices for such vehicles and related equipment will return to the original 30 percent rate. 

EVs are seen as the way forward where sustainable mobility is concerned, especially in light of rising fuel prices and the environmental impact of reliance on fossil fuels. However, despite aggressive efforts on the part of automakers to push their electric offerings, reception of EVs in developing markets such as the Philippines has been extremely limited so far because of prohibitive costs, among other factors. 

With the signing of EO 12 into law, the government hopes to give the local automotive industry ample time in preparing for local EV production as provided for under the EVIDA Law. 

The law aims to buy time for the local auto industry to put a proper EV ecosystem in place

As the cost of both buying an EV and having charging equipment installed are expected to go down (albeit temporarily), this is seen to incentivize EV ownership and use among potential customers who are in the market for personal transportation.  

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