Garments Made In Philippines Are Tax-Free Access To The US Market.

It is possible to allow us textiles, yarns and fabrics to be tax-free to enter the country. In exchange, Philippines's dresses can be tax-free into the US market.

This is the Philippines trade and Industry Department's intention to reintroduce Philippines's proposal to "save our industrial law", which has been ignored by the US Congress for the three time.

The Philippines

"We have prepared the proposal again to make it more in line with the taste of industry," Vice Minister Chris said.

Pam Ali Leo explained that, as a rule, an export-oriented industry will allow 70% of the raw materials to be imported tax-free, and the remaining 30% should be expropriated.

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Pam Ali Leo said that the United States textile association proposed that the remaining 30% of the raw materials of an export enterprise import American made textiles, yarns and fabrics, which should be duty-free. In exchange, the garments made in Philippines can be imported into the US market tax-free.

It is agreed that the remaining 30% of the raw materials tax free industry will make the finished garments made in Philippines more competitive in the Philippines market.

Export-oriented enterprises allow 30% of the products sold in the local market, but they need to pay appropriate taxes, such as tariffs and VAT.

This is, if the United States abolished tariffs, it would bring about 2-2.2 billion foreign exchange revenue per year to Philippines.

Pam Ali Leo said that the existence of huge foreign exchange earnings by the US side is the main reason for Philippines to "save our industrial law", but it is ignored by the US Congress.

Pam Ali Leo said that the tax exemption for the remaining raw materials will generate additional employment.