MANILA - President Ferdinand Marcos, Jr has issued an executive order temporarily modifying the import duty rates on electric vehicles and its components, Malacañang said on Thursday.

Marcos issued Executive Order No. 12, signed on Jan. 13, in a bid to "boost the electronic vehicle market in the country, support the transition to emerging technologies and encourage consumers to consider electric vehicles as a cleaner and greener transportation option."

In signing the order, Marcos said this would “ensure the country’s energy security and independence by reducing reliance on imported fuel for the transportation sector," citing the Electric Vehicle Industry Development Act.

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Socioeconomic Planning Secretary Arsenio Balisacan earlier said the EO would temporarily reduce to 0 percent the tariff rates from the previous range of 5 to 7 percent.

Parts and components of e-vehicles will be covered by the tariff adjustments, but hybrid cars will be exempted for now, noted the official. Electric vehicles covered by the EO include passenger cars, buses, vans, trucks, motorcycles, and scooters.

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Under the EO, boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 85.35 or 85.36, for electric control or the distribution of electricity will not be subject to Most Favored Nation (MFN) tariff rates for the next 5 years or so.

Other vehicles and parts temporarily exempted from the MFN tariff duty rates are the following:

• Motor cars
• Other motor vehicles principally designed for the transport of persons (other than those of heading 87.02)
• Station wagons
• Racing cars
• Vehicles specially designed for travelling on snow
• Golf cars and similar vehicles.

Electric vehicles, meanwhile, will be subject to 30 percent MFN rates "after the 5th year," the document showed.

The following vehicles will be subject to 20 percent MFN rates after the 5th year.

• Motor cars (including stretch limousines but not including coaches, buses, minibuses or vans)
• Other, for the transport of 30 persons or more and specially designed for use in airports

During the recommendation of the EO late last year, Balisacan told Palace reporters that the move would help in the growth of the sector and make these vehicles more accessible to Filipinos.

It also seeks to improve energy security by reducing the country's dependence on imported fuel and promote the sector's growth.

The Land Transportation Office (LTO) said almost 20,000 e-vehicles have been registered as of 2021, based on their record.