PHILIPPINES

SUBMITTED BY:
LAKSHAY KHOSLA – 240/2017
• With a population of more than 100 million, the Philippines is the second
largest market in ASEAN (after Indonesia). Given that private consumption
accounts for about 70% of the country’s GDP, the growth in consumer demand,
in line with rising disposable incomes, is considerable.
• The Philippines imported US$85.9 billion worth of goods from around the globe
in 2016, up by 87.3% since 2009 and up by 22.5% from 2015 to 2016.
• The Philippines’ top 10 imports accounted for well over two-thirds (70.7%) of
the overall value of its product purchases from other countries.
• In particular, the country’s expanding middle-income class has a growing
appetite for quality consumer goods, including consumer electronics, packaged
foods, clothing and other premium items that are generally not produced
domestically
 PARAMETERS

• IMPORT BASKET
• AVERAGE TARIFF FACED BY THE PRODUCT
• NON TARIFF MEASURES
• AVERAGE ANNUAL GROWTH IN VALUE BETWEEN 2012-
2016
IMPORT BASKET
• Around 5348 products are imported by Philippines .
• Out of which 25 products have been filtered out based on the highest import value in us dollars.
• Mostly the products are related to electronics , fuel , machinery , vehicles
• The contribute approx. 70% of the total imports of Philippines.
• The top products which are imported maximum in value (US thousand dollars) are:
1. Parts of electronic integrated circuit - 7693696
2. Petroleum oils – 5485598
3. Parts of automated data processing machines - 2451338
4. Motor cars - 1387571
5. Transmission apparatus – 608338.4

5348 products 25 products

 TARIFF
• Now out of 25 products , top 10 products with low tariff faced has been
filtered out.
• imposing tariffs on a trading partner's main exports is a way to exert
economic leverage.
Value imported in 2016 (USD Average tariff (estimated)
CODE PRODUCT DESCRIPTION
thousand) applied by Philippines (%)
Medium oils and preparations, of petroleum or bituminous
'271019 minerals, not containing biodiesel, ... 2245166 0
Parts and accessories of automatic data-processing machines
'847330 or for other machines of heading ... 1018429 0
Gaseous hydrocarbons, liquefied, n.e.s. (excluding natural gas,
'271119 propane, butane, ethylene, ... 242107 0
Oilcake and other solid residues, whether or not ground or in
'230400 the form of pellets, resulting ... 936637 0.9

'847990 Parts of machines and mechanical appliances, n.e.s. 421117 0.9

Milk and cream in solid forms, of a fat content by weight of <=
'040210 1,5% 349709 0.9
Electrical apparatus for switching electrical circuits, or for
'853690 making connections to or in ... 504151 2.6
Aero planes and other powered aircraft of an of an unladen
'880240 weight > 15000 kg (excluding helicopters ... 937171 2.8
Parts of aero planes or helicopters, n.e.s. (excluding those for
'880330 gliders) 629727 2.8
'260300 Copper ores and concentrates 210422 2.8
 NON TARIFF BARRIERS

• Out of 10 countries , top 5 countries with less Non tariff

measures has been filtered out based on the following
measures:
1. Export related measures
2. Other measures
3. Pre shipment inspection
4. Price control measures
5. Quality control measures
6. Technical barriers to trade
CODE PRODUCT DESCRIPTION NON TARIFF MEASURES
Parts of aeroplanes or helicopters, n.e.s. (excluding those for
'880330 gliders) 15
Aero planes and other powered aircraft of an of an unladen
'880240 weight > 15000 kg (excluding helicopters ... 17
'260300 Copper ores and concentrates 23

Parts and accessories of automatic data-processing machines

'847330 or for other machines of heading ... 31

'847990 Parts of machines and mechanical appliances, n.e.s. 31

Electrical apparatus for switching electrical circuits, or for
'853690 making connections to or in ... 37
Gaseous hydrocarbons, liquefied, n.e.s. (excluding natural
'271119 gas, propane, butane, ethylene, ... 38
Milk and cream in solid forms, of a fat content by weight of
'040210 <= 1,5% 42
Medium oils and preparations, of petroleum or bituminous
'271019 minerals, not containing biodiesel, ... 52
Oilcake and other solid residues, whether or not ground or in
'230400 the form of pellets, resulting ... 54
 ANNUAL GROWTH
• Out of top 5 countries based on less non tariff measures , top 2 countries
with higher annual growth rate between 2012-2016 were filtered out .

CODE PRODUCT DESCRIPTION annual growth in value between 2012-2016 (% p.a)

Parts of aero planes or helicopters,
'880330 n.e.s. (excluding those for gliders) 21
Parts of machines and mechanical
'847990 appliances, n.e.s. 19

Parts and accessories of automatic

data-processing machines or for
'847330 other machines of heading ... 0
Aero planes and other powered
aircraft of an of an unladen weight
> 15000 kg (excluding helicopters
'880240 ... -15
'260300 Copper ores and concentrates -36
The top 2 products which has a greater potential for trade in Philippines are:
1. 21% - 880330 - Parts of aero planes or helicopters, n.e.s. (excluding those for gliders
2. 17 % - 847990 - Parts of machines and mechanical appliances, n.e.s

Top 3 countries which can export these products are:

For product code – 880330 ( Parts of aero planes or helicopters, n.e.s. (excluding those for
gliders ):

1. USA
2. SINGAPORE
3. FRANCE

For product code – 847990 ( Parts of machines and mechanical appliances, n.e.s ):

1. JAPAN
2. SOUTH KOREA
3. CHINA