Philippines may allow 100% duty free import of US textiles

The Philippine government is expected to allow all US-made textiles, yarns, and fabrics to be tax-exempted to exchange the conditions for Filipino apparel duty-free access to the market.

This news was revealed by the Philippine Ministry of Trade and Industry, and it amended the “Saving our Industry Law” bill again, which has been refuted by the US Congress three times.

Cristino L.Panlilio, deputy minister of the Ministry of Trade and Industry of the Philippines, said that they are redrafting the bill to increase industry acceptance.

According to the Manila Bulletin, Mr. Panlilio said that currently Philippine garment makers can duty-free 70% of the raw materials imported from the United States. Producing products means re-exporting to the market, and the remaining 30% of imports are subject to tax at the current interest rate.

However, Mr. Panlilio said that looking ahead, in order to open up the emerging Filipino market, the American Textile Association is seeking the Philippine government to remove this restriction and allow all raw material imports, including tax-free textiles, yarns and fabrics from the United States to be tax-free, as Exchange conditions to allow Philippines-made garments to be exported duty-free to the United States.

Such a change will also help the United States to resolve 200 million to 220 million U.S. dollars, allowing the taxation of Filipino clothing and clothing to enter taxation after the annual loss.

Mr. Panlilio said that the major tax loss was the reason why the bill was shelved by the US Congress three times.

Accepting the request of the American Textile Association, the Philippine government will need to give up some of the income, so they have discussed with the Finance Department on this point, he said.

He said that the remaining 30% of raw materials imported from the United States will be tax-free and will promote the production of domestic clothing, thus creating job opportunities. He added that this will also promote the export of clothing from the Philippines to the United States.