AN executive order that grants lower tariff rates for electric vehicles as well as their parts and components will be undergoing a mandatory review on February 21, Wednesday, after one year of its implementation.

It will be recalled that President Ferdinand R. Marcos Jr., issued Executive Order 12, which mandated the lower tariff rates for electric vehicles and their components — now at 0% import duty.

The said rates are in line with the imposed to Most Favored Nations (MFN), and compared to the previous 5% to 30% import duties, but exempts e-motorcycles which are still subject to 30% tariffs.

Meanwhile, the order only exempts two-wheeled electric vehicles up to 250 watts with a maximum speed of 25 kilometers per hour from import duties.

“The MFN tariff rates shall be subjected to review after one year from the implementation of this Order,” the Executive Order, which was signed on January 13, 2023 and took effect on February 20, 2023, read.

“For this purpose, the NEDA (National Economic and Development Authority) shall submit to the President, through the Office of the Executive Secretary, its findings and recommendations on the matter,” it added.

Earlier, NEDA Secretary Arsenio Balisacan said the mandatory review is aimed at focusing on the inclusion of electric motorcycles in the import tariff exemption.

“The inclusion of e-motorcycles in the import tariff incentives will take center stage once the mandatory review of Executive Order No. 12 Series of 2023 takes effect nine months from now,” he said last May.