Ethanol group seeks tariff protection from imports

Local ethanol producers have urged the Philippine government to raise tariffs on ethanol imports to 20% from the current one percent, to protect and boost investments in the industry. The Ethanol Producers Association of the Philippines (EPAP) pointed out that unless there was a strong government support and protection for the industry, investors would remain reluctant to invest billions of pesos in the Philippine ethanol industry. In a letter sent to Edgardo Abon, chair of the Tariff Commission, EPAP Executive Director Tetchi Cruz-Capellan said the Philippines had to be aggressive in attracting foreign capital to sustain initial efforts on biofuels and reach the mandated E10 blend by 2011. To do this, Capellan said an increase in import duties, not further reduction of tariff, would give foreign investors confidence in the Philippines. The tariff protection, she added, would accelerate construction of more ethanol plants in the country. (November 8, 2009)