Customs Issues Guidelines for PH-Korea Free Trade Agreement Implementation

The Bureau of Customs (BOC) has released guidelines to implement the Philippines-South Korea Free Trade Agreement (FTA), enabling reduced or zero tariffs on goods imported from South Korea.

Guidelines Overview

Outlined in Customs Memorandum Order (CMO) 11-2024, the guidelines set clear requirements for businesses importing goods under the FTA, including:

• Submission of detailed product evaluations such as company profiles, manufacturing flowcharts, cost analyses, and sales invoices.
• Certificates of Origin (CO): Exporters must secure these to ensure compliance with rules of origin requirements.
• Approved Exporter Status: Exporters with this status may issue Origin Declarations for their goods if compliance criteria are met.

“This Customs Memorandum Order reflects the BOC’s commitment to facilitating trade and enhancing partnerships,” said Customs Commissioner Bienvenido Rubio.

Effective Date and Legal Basis

The guidelines came into effect on December 31, 2024, following the issuance of Executive Order No. 80 by President Ferdinand “Bongbong” Marcos Jr. earlier in December.

• The EO adjusts import duty rates to align with the Philippine Schedule of Tariff Commitments under the FTA.
• President Marcos signed the agreement on May 13, 2024, which was ratified by the Senate on September 23, 2024, through Resolution No. 1188.

Trade Benefits

The agreement is expected to bolster trade between the Philippines and South Korea by streamlining processes and reducing costs for businesses.

“By laying out clear and actionable guidelines, we aim to ensure a seamless transition into the PH-Korea Free Trade Agreement,” Rubio added.

This marks a significant step in strengthening economic ties and creating a more competitive trade environment for both nations.