This paper shows that the implementation of the EVSL program has a positive impact on the Philippine civil aircraft industry. The country has already unilaterally liberalized the industry in 1996. The current tariff rates range from 3 percent to 30 percent, with the bulk falling under the 3 percent tariff level. In the light of the industry's strength and weaknesses, its liberalization could lead to the development of local technological capability in aircraft parts manufacturing, aircraft maintenance. As there are no local manufacturers of civil aircraft and parts, we can accelerate the elimination of customs duties in the sector. This would, however, entail revenue losses representing 1 percent total import duties and 0.3 percent of total revenue collections. On the overall, this appears to be a small amount to pay in exchange for the benefits that we could gain.
