Flexible Tariff Clause

Flexible Tariff Clause

1. (1) Increase, reduce or remove existing PROTECTIVE RATES OF IMPORT DUTY

   • Purpose: to protect domestic industry from foreign competition (protectionism)
   • Provided: upon recommendation of NEDA

2. (2) Establish IMPORT QUOTA/ BAN IMPORTS of any commodity as may be necessary

   • The President has the power to import quota or ban imports when necessary, provided: upon recommendation of NEDA

3. (3) Impose additional duty on imports not exceeding 10% of AD VALOREM when necessary

   • Which shall take effect upon discretion of the President. Reason: to keep up with foreign exchange rates.