Philippines meat importers oppose reclassifying pork jowl as tariffs loom: MITA

Philippine meat importers have opposed a proposal to reclassify frozen pork jowl as swine meat instead of edible offal, ahead of a Sept. 21 public hearing by the Tariff Commission on the measure, warning that the move would raise import tariffs and increase costs for the industry.

The Tariff Commission will hold a public hearing Sept. 21 on the Department of Agriculture's petition to reclassify frozen pork jowl from AHTN Chapter 0206, which covers edible offal, to AHTN Chapter 0203, which covers swine meat, according to a notice on the commission's website.

The Meat Importers and Traders Association told Platts, part of S&P Global Energy, on Sept. 15 that a change in classification could create uncertainty for importers, customs authorities and other market participants who have relied on the existing tariff treatment.

Under the reclassification, tariffs on frozen pork jowl imports would increase from 5% to 10% for in-quota volumes and to 25% for volumes outside the minimum access volume.

Frozen pork jowl is legally classified as offal because it is derived from the pig's head. The association said this interpretation aligns with international customs practices, historical domestic standards and previous tariff rulings, which generally classify stand-alone cuts from an animal's head as edible offal.

The association cited Tariff Commission Ruling No. 12-145, issued in 2012, which classified frozen pork jowl under AHTN code 0206.49.00 as edible offal. It said the ruling established an administrative precedent that has guided customs treatment for more than a decade.

The association also expressed concern that the proposed change may affect the classification of other pork, beef and lamb offal products.

An Asia-based trader said the higher tariff would make frozen pork jowl more difficult to sell in the Philippines due to ample inventories and its reduced competitiveness compared with other pork cuts.

A Philippine-based importer said frozen pork jowl has traditionally been a low-cost meat alternative. With less jowl available in the market, prices of other major pork cuts could become less volatile, the importer said.

Platts assessed pork belly (single-ribbed) CFR North Asia at $3,775/metric ton on Sept. 15. Platts assessed pork belly (sheet-ribbed) CFR North Asia at $4,615/mt on Sept. 15.