TITLE II
ADMINISTRATIVE PROVISIONS
PART I
BASES OF ASSESSMENT OF DUTY
Section 201
Basis of Dutiable Value
The dutiable value of an imported article subject to an ad valorem rate
of duty shall be based on the cost (fair market value) of same, like or similar
articles, as bought and sold or offered for sale freely in the usual wholesale
quantities in the ordinary course of trade in the principal markets of the
exporting country on the date of exportation to the Philippines (excluding
internal excise taxes to be remitted or rebated) or where there is none on such
date, then on the cost (fair market value) nearest to the date of exportation,
including the value of all container, covering and/or packings of any kind and
all other expenses, costs and charges incident to placing the article in a
condition ready for shipment to the Philippines, and freight as well as
insurance premium covering the transportation of such articles to the port of
entry in the Philippines.
Where the fair market value or price of the article cannot be
ascertained thereat or where there exists a reasonable doubt as to the fairness
of such value or price, then the fair market value or price in the principal
market in the country of manufacture or origin, if it is not the country of
exportation, or in a third country with the same stage of economic development
as the country of exportation shall be used.
When the dutiable value of the article cannot be ascertained in
accordance with the preceding paragraphs or where there exists a reasonable
doubt as to the cost (fair market value) of the imported article declared in
the entry, the correct dutiable value of the article shall be ascertained by
the Commissioner Of Customs from the reports of the Revenue or Commercial
Attache (Foreign Trade Promotion Attache), pursuant to Republic Act Numbered
Fifty-four Hundred and Sixty-six or other Philippine diplomatic officers or
Customs Attaches and from such other information that may be available to the
Bureau of Customs. Such values shall be published by the Commissioner of
Customs from time to time.
When the dutiable value cannot be ascertained as provided in the
preceding paragraphs, or where there exists a reasonable doubt as to the
dutiable value of the imported article declared in the entry, it shall be
domestic wholesale selling price of such or similar article in Manila or other
principal markets in the Philippines or on the date the duty become payable on
the article under appraisement, on the usual wholesale quantities and in the
ordinary course of trade, minus:
(a)
Not more than twenty-five (25) per cent thereof for
expenses and profits; and
(b)
Duties and taxes paid thereon. (as amended by E.O. 156)
Section 202
Bases of Dutiable Weight
On articles that are subject to the specific rate of duty, based on
weight, the duty shall be ascertained as follows:
(a)
When articles are dutiable by the gross weight, the
dutiable weight thereof shall be the weight of same, together with the weight
of all containers, packages, holders and packing, of any kind, in which said
articles are contained, held or packed at the time of importation.
(b)
When articles are dutiable by the legal weight
thereof shall be the weight of same, together with the weight of the immediate
containers, holders and/or packing in which such articles are usually
contained, held or packed at the time of importation and/or, when imported in
retail packages, at the time of their sale to the public in usual retail
quantities: Provided, That when articles are packed in single container, the
weight of the latter shall be included in the legal weight.
(c)
When articles are dutiable by the net weight, the
dutiable weight thereof shall be only the actual weight of the articles at the
time of importation, excluding the weight of the immediate and all other
containers, holders or packing in which such articles are contained, held or
packed.
(d)
Articles affixed to cardboard, cards, paper, wood or
similar common material shall be dutiable together with the weight of such
holders.
(e)
When a single package contains imported articles
dutiable according to different weights, or to weight and value, the common
exterior receptacles shall be prorated and the different proportions thereof
treated in accordance with the provisions of this Code as to the dutiability or
non-dutiability of such packing.
Section 203
Rate of Exchange
For the assessment and collection of import duty upon imported articles
and for other purposes, the value and prices thereof quoted in foreign currency
shall be converted into the currency of the Philippines at the current rate of
exchange or value specified or published, from time to time, by the Central
Bank of the Philippines.
Section 204
Effective Date of Rates of
Import Duty
Imported articles shall be subject to the rate or rates of import duty
existing at the time of entry, or withdrawal from warehouse, in the
Philippines, for consumption.
On and after the day when this Code shall go into effect, all articles
previously imported, for which no entry has been made, and all articles
previously entered without payment of duty and under bond for warehousing,
transportation, or any other purpose, for which no permit of delivery to the
importer or his agent has been issued, shall be subject to the rates of any
duty imposed by this Code and to any other duty, upon the entry, or withdrawal
thereof from warehouse, for consumption.
On article abandoned or forfeited to, or seized by, the government, and
then sold at public auction, the rates of duty and the tariff in force on the
date of the auction shall apply: Provided, That duty based on the weight,
volume and quantity of articles shall be levied and collected on the weight,
volume and quantity at the time of their entry into the warehouse or the date
of abandonment, forfeiture and/or seizure.
Section 205
Entry, or Withdrawal from
Warehouse, for Consumption
Imported articles shall be deemed "entered" in the
Philippines for consumption when the specified entry form is properly filed and
accepted, together with any related documents required by the provisions of
this Code and/or regulations to be filed with such form at the time of entry,
at the port or station by the customs official designated to receive such entry
papers and any duties, taxes, fees and/or other lawful charges required to be
paid at the time of making such entry have been paid or secured to be paid with
the customs official designated to receive such monies, provided that the
article has previously arrived within the limits of the port of entry.
Imported articles shall be deemed "withdrawn" from warehouse
in the Philippines for consumption when the specified form is properly filed
and accepted, together with any related documents required by any provisions of
this Code and/or regulations to be filed with such form at the time of
withdrawal, by the customs official designated to receive the withdrawal entry
and any duties, taxes, fees and/or other lawful charges required to be paid at
the time of withdrawal have been deposited with the customs official designated
to receive such payment.
PART 2
SPECIAL DUTIES
Section 301
Dumping Duty
a. Whenever the Secretary of Finance (hereinafter
called the "Secretary") has reason to believe, from invoices or other
documents or newspapers, magazines or information made available by any
government agency or interested party, that a specific kind or class of foreign
article, is being imported into, or sold or is likely to be sold in the
Philippines, at a price less than its fair value, the importation and sale of
which might injure, or retard the establishment of, or is likely to injure, an
industry producing like goods in the Philippines, he shall so advise the Tariff
Commission (hereinafter called the "Commission"), and shall instruct the
Collector of Customs to require an anti-dumping bond of twice the dutiable
value of the imported article coming from the specific country.
b. The Commission, upon receipt of the advice from the
Secretary shall conduct an investigation to:
1. Verify if the kind or class of article in question
is being imported into, or sold or is likely to be sold in the Philippines at a
price less than its fair value;
The fair value of an article
shall be its home consumption price, excluding internal excise tax. If the fair
value of an article cannot be determined, the following rules shall apply:
i. If the home consumption price is unreliable because
of association or a compensatory arrangement between the exporter and the
importer or a third party, or if the quality of like to similar articles sold
by the producers for home consumption is negligible in relation to the quality
sold for exportation to countries other than the Philippines as to be an
inadequate basis for comparison, then the fair value of the articles shall be
based from the export price of like articles sold to countries other than the
Philippines, or
ii. If the country of export is a state-controlled
economy, then the fair value of like articles shall be the home consumption
price of like articles in a proxy country at the same stage of economic
development which is a proven or established competitive producer of the
article under consideration.
iii. In the case where products are not imported directly
from the country of origin but are exported to the country of importation from
an intermediate country, the fair value shall be the home consumption in the
country of origin or the country of export whichever is higher.
iv. If the fair value of such or like articles cannot be
determined in accordance with the preceding paragraphs then, the fair value of
the article under consideration shall be its cost of production as determined
of calculated from reasonably available data.
2. Determine if, as a result thereof, an industry
producing like goods in the Philippines, is being injured or is likely to be
injured or is retarded from being established by reason of the importation or
sale of that kind or class of article into the Philippines: Provided, That a
finding that an article is being imported into the Philippines at a price less
than its fair market value shall be deemed prima facie proof of injury, or
retarding the establishment of an industry producing like goods in the
Philippines: And provided, further, That in determining whether the domestic
industry has suffered is being threatened with injury, the Commission shall
determine whether the wholesale prices at which the domestic products are sold
are reasonable, taking into account the cost of raw materials, labor, overhead,
a fair return on investment and the overall efficiency of the industry; and
3. Ascertain the difference, if any, between the
purchase price and the fair market value of the article. The Commission shall
submit its findings to the Secretary within sixty (60) days after the
submission of the memoranda of the parties which shall not be later than
fifteen (15) days after the termination of the public hearing.
c. The Secretary shall, within sixty (60) days after
receipt of the report of the Commission, decide whether the article in question
is being imported in violation of this section and shall give due notice of
such decision and shall direct the Commissioner of Customs to cause the dumping
duty, to be levied, collected and paid, as prescribed in this section, in
addition to any other duties, taxes and charges as prescribed in this section,
addition to any other duties, taxes and charges imposed by law on such article,
and on the articles of the same specific kind or class subsequently imported
under similar circumstances coming from the specific country.
d. The "Dumping Duty" as provided for in
sub-section "c" hereof shall be equal to the difference between the
actual purchase price and the fair value of the article as determined in the
dumping decision. All importations of like articles within sixty (60)days
immediately preceding the filing of the protest are covered by the
investigation. However, in cases of subsequent importations of the same kind or
class of article from the specific country named in the protest, the dumping
duty shall be equal to the difference between the actual purchase price and the
fair value actually existing at the time of importation as determined by the
Tariff Commission from the supporting documents submitted or from other
reliable sources.
e. Pending investigation and final decision of the
case, the article in question, and articles of the same specific kind or class
subsequently imported under similar circumstances, shall be released to the
owner, importer, consignee or agent upon the giving of a bond in an amount
equal to twice the estimated dutiable value thereof.
f. Any aggrieved party may appeal only the amount of
the dumping duty to the Court of Tax Appeals in the same manner and within the
same period provided for by law in the case of appeal from decision of the
Commissioner of Customs.
g.
(1)
The article, if it has not been previously released
under bond as provided for in subsection "e" hereof, shall be
released after payment by the party concerned of the corresponding dumping duty
in addition to any ordinary duties, taxes, and charges, if any, or re-exported
by the owner, importer, consignee or agent, at his option and expense, upon the
filing of a bond in an amount equal to twice the estimated dutiable value of
the article, conditioned upon presentation of landing certificate issued by a
consular officer of the Philippines at the country of destination; or
(2)
If the article has been previously released under
bond, as provided in subsection "e" hereof, the party concerned shall
be required to pay the corresponding dumping duty in addition to any ordinary
duties, taxes and charges, if any.
h. Any investigation to be conducted by the Commission
under this section shall include a public hearing or hearings where the
importer, consignee or agent, of the imported article, the local producers of a
like article, other parties directly affected, and such other parties as in the
judgment of the Commission are entitled to appear, shall be given an
opportunity to be heard and to present evidence bearing on the subject matter.
i. The established dumping duty shall be subject to
adjustment based on the prevailing home consumption price or the exporter's
sales price to third country or the home consumption price of a proxy country
or in the absence thereof, the cost of production. The Commission shall conduct
quarterly examination and/or verification of the fair value to determine the
necessity of adjustment. Should the Secretary, upon receipt of the report of
the Commission, find that there is a need for an adjustment he shall direct the
commissioner of Customs to effect the necessary adjustment in dumping duty.
The Philippines Finance
Attache or, in the absence thereof, the Commercial Attache or, in the absence
thereof, the diplomatic officer and/or consular officer abroad shall be advised
by the Secretary of any article covered by dumping decision. The concerned
Attache or the Officer shall submit quarterly report on home consumption
prices, or in the absence thereof, the cost of production, of said articles to
the Secretary and the Commission, thru the department head.
j. Whenever the Commission, on its own motion or upon
the application of any interested party, finds that any of the conditions which
necessitated the imposition of the dumping duty has ceased to exist, it shall
submit the necessary recommendation to the Secretary for the discontinuance or
modification of such dumping duty. Any decision or order made under this
section by the Secretary shall be published in the Official Gazette and/or in a
newspaper of general circulation.
k. Any dumping decision promulgated by the Secretary
shall be effective for a period of five years from the time of its promulgation
except upon the representation of the interested party of the necessity to
continues the implementation of said decision, in which case the Secretary
shall advice the Commission to conduct an investigation to determine whether
the conditions in paragraphs b-1 and b-2 still exist. The action for extension
shall be brought before the Secretary at least six (6) months before the
expiration of the period.
The findings of the
Commission shall be submitted to the Secretary at least three (3) months before
the expiration of the period.
[All industries protected by
any dumping decision for five years or more from the time of its promulgation
may apply for extension to the Secretary within six (6) months from effectivity
of this Decree. The decision shall be deemed terminated upon failure to file
the application within the period so provided.]
l. The Secretary and the Commission shall promulgate
all rules and regulations necessary to carry out their respective functions
under this Section.
Section 302
Countervailing Duty
a. Whenever any article is directly or indirectly
granted any bounty, subsidy or subvention upon its production, manufacture or
exportation in the country of origin and/or exportation, and the importation of
which has been determined by the Secretary, after investigation and report of
the Commission, as likely to injure an established industry, or prevent or
considerably retard the establishment of an industry in the Philippines, there
shall be levied a countervailing duty equal to the ascertained or estimated
amount of such bounty, countervailing duty equal to the ascertained or
estimated amount of such bounty, subsidy or subvention: Provided, That the injury
criterion to a domestic industry shall be applied only in case of imports from
countries which adhere to the GATT Code on Subsidies and Countervailing Duties;
Provided further, That the exemption of any exported article from duty or tax
imposed on like articles when destined for consumption in the country of origin
and/or exportation or the refunding of such duty or tax, shall not be deemed to
constitute a grant of a bounty, subsidy or subvention within the meaning of
this subsection: Provided, furthermore, That should an article be allowed
drawback by the country of origin and/or exportation, only the ascertained or
estimated excess of the amount of the drawback over the total amount of the
duties and/or internal taxes, if any, shall constitute a bounty, subsidy or
subvention: Provided, finally, That petitions for imposition of countervailing
duty shall be filed with the Secretary of Finance. Upon finding of a prima
facie case of bounty, subsidy or subvention enjoyed by the imported article and
injury to, or likelihood of injury to a domestic industry, the Secretary shall
refer the case to the Tariff Commission for investigation for investigation and
shall instruct the Commissioner of Customs to require the filing of
countervailing bonds for importations entered during the pendency of
countervailing proceedings;
b. The Secretary shall, after receipt of the reports of
the Commission, decide whether the article in question is granted any bounty,
subsidy or subvention and if so, fix the countervailing duty equal to the
ascertained or estimated bounty, subsidy or subvention. He shall give due
notice of his decision and shall direct the Commissioner of Customs to cause
the countervailing duty to be levied, collected and paid in addition to any
ordinary duties, taxes and charges imposed by law on such articles and on
articles of the same specific kind or class subsequently imported under similar
circumstances;
c. Pending investigation and final decision of the
case, the article in question shall not be released from customs custody to the
owner except upon the filing of a bond equal to the ascertained or estimated
amount of bounty, subsidy or subvention as provisionally determined by the
Secretary of Finance;
d. The article, if not previously released under bond
as provided for in this section, shall be released after payment by the party
concerned of the corresponding countervailing duty in addition to any ordinary
duties, taxes and charges, if any, or re-exported upon the filing of a bond in
an amount twice the estimated dutiable value of the article, conditioned upon
the presentation of a landing certificate issued by a consular officer of the
Philippines at the country of destination. If the article has been previously
released under bond, the party concerned shall be required to pay the
corresponding countervailing duty in addition to ordinary duties, taxes and
other charges, if any;
e. Whenever the Commission, on its motion or upon
application of any interested party, finds that the condition which
necessitated the imposition of the countervailing duty has ceased to exist, it
shall submit the necessary recommendations to the Secretary for the
discontinuance of the imposition of that duty. Any order made under this
section by the Secretary shall be published in the Official Gazette and/or in a
newspaper of general circulation;
f. Any countervailing decision promulgated by the
Secretary shall be effective for a period of five (5) years from the time of
its promulgation except upon the representation of the interested party of the
necessity to continue the implementation of said decision, in which case the
Secretary shall advise the Commission to conduct an investigation to determine
whether the conditions in paragraph "a" still exist. The action for
extension shall be brought before the Secretary at least six (6) months before
the expiration of the period.
The findings of the
Commission shall be submitted to the Secretary at least three (3) months before
the expiration of the period.
g. The Secretary and the Commission shall promulgate
all rules and regulations necessary to carry out their respective functions
under this section.
Section 303
Marking of Imported Articles
and Containers
a. Marking of Articles
Except as hereinafter
provided, every article of foreign origin (or its container, as provided in
subsection "b" hereof) imported into the Philippines shall be marked
in any official language of the Philippines and in a conspicuous place as
legibly, indelibly and permanently as the nature of the article (or container)
will permit in such manner as to indicate to an ultimate purchaser in the
Philippines the name of the country of origin of the article. The Commissioner
of Customs shall, with the approval of the department head, issue rules and
regulations to
1. Determine the character of words and phrases or
abbreviation thereof which shall be acceptable as indicating the country of
origin and prescribe any reasonable method of marking, whether by printing,
stenciling, stamping, branding, labelling or by any other reasonable method,
and a conspicuous place on the article or container where the marking shall
appear.
2. Require the addition of any other words or symbols
which may be appropriate to prevent deception or mistake as to the origin of
the article or as to the origin of any other article with which such imported
article is usually combined subsequent to importation but before delivery to an
ultimate purchaser; and
3. Authorize the exception of any article from the
requirements of marking if –
a. Such article is incapable of being marked;
b. Such article cannot be marked prior to shipment to
the Philippines without injury;
c. Such article cannot be marked prior to shipment to
the Philippines, except at an expense economically prohibitive of its
importation;
d. The marking of a container of such article will
reasonably indicate the origin of such article;
e. Such article is a crude substance;
f. Such article is imported for use by the importer and
not intended for sale in its imported or any other form;
g. Such article is to be processed in the Philippines
by the importer or for his account otherwise than for the purpose of concealing
the origin of such article and in such manner that any mark contemplated by
this section would necessarily be obliterated, destroyed or permanently
concealed;
h. An ultimate purchaser, by reason of the character of
such article or by reason of the circumstances of its importation must
necessarily know the country of origin of such article even though it is not
marked to indicate its origin;
i. Such article was produced more than twenty years
prior to its importation into the Philippines; or
j. Such article cannot be marked after importation
except at an expense which is economically prohibitive, and the failure to mark
the article before importation was not due to any purpose of the importer,
producer, seller or shipper to avoid compliance with this section.
b. Marking of Containers
Whenever an article is exempted
under subdivision (3) of subsection "a" of this section from the
requirements of marking, the immediate container, if any, of such article, or
such other container or containers of such article as may be prescribed by the
Commissioner of Customs with the approval of the department head, shall be
marked in such manner as to indicate to an ultimate purchaser in the
Philippines the name of the country of origin of such article in any official
language of the Philippines, subject to all provisions of this section,
including the same exceptions as are applicable to articles under subdivision
(3) of subsection "a".
c. Marking Duty for Failure to Mark
If at the time of
importation any article (or its container, as provided in subsection
"b" hereof), is not marked in accordance with the requirements of
this section, there shall be levied, collected and paid upon such article a
marking duty of 5 per cent ad valorem, which shall be deemed to have accrued at
the time of importation, except when such article is exported or destroyed
under customs supervision and prior to the final liquidation of the
corresponding entry.
d. Delivery Withheld Until Marked
No imported article held in
customs custody for inspection, examination or appraisement shall be delivered
until such article and/or its containers, whether released or not from customs
custody, shall have been marked in accordance with the requirements of this
section and until the amount of duty estimated to be payable under subsection
"c" of this section shall have been deposited. Nothing in this
section shall be construed as accepting any article or its container from the
particular requirements of marking provided for in any provision of law.
e. The failure or refusal of the owner or importer to
mark the articles as herein required within a period of thirty days after due
notice shall constitute as an act of abandonment of said articles and their
disposition shall be governed by the provisions of this Code relative to
abandonment of imported articles.
Section 304
Discrimination by Foreign
Countries
a. The President, when he finds that the public
interest will be serves thereby, shall by proclamation specify and declare new
or additional duties in an amount not exceeding one hundred (100) per cent ad
valorem upon articles wholly or in part the growth or product of, or imported
in a vessel of, any foreign country whenever he shall find as a fact that such
country —
1. Imposes, directly or indirectly, upon the
disposition or transportation in transit through or re-exportation from such
country of any article wholly or in part the growth or product of the
Philippines, any unreasonable charge, exaction, regulation or limitation which
is not equally enforced upon the like articles of every foreign country; or
2. Discriminates in fact against the commerce of the
Philippines, directly or indirectly, by law or administrative regulation or
practice, by or in respect to any customs, tonnage, or port duty, fee, charge,
exaction, classification, regulation, condition, restriction or prohibition, in
such manner as to place the commerce of the Philippines at a disadvantage
compared with the commerce of any foreign country.
b. If at any time the President shall find it to be a
fact that any foreign country has not only discriminated against the commerce
of the Philippines, as aforesaid, but has, after the issuance of a proclamation
as authorized in subsection "a" of this section, maintained or increased
its said discrimination against the commerce of the Philippines, the President
is hereby authorized, if he deems it consistent with the interests of the
Philippines, to issue a further proclamation directing that such product of
said country or such article imported in its vessels as he shall deem
consistent with the public interests, shall be excluded from importation into
the Philippines.
c. Any proclamation issued by the President under this
section shall, if he deems it consistent with the interest of the Philippines,
extend to the whole of any foreign country or may be confined to any
subdivision or subdivisions thereof; and the President shall, whenever he deems
the public interests require, suspend, revoke, supplement or amend any such
proclamation.
d. All articles imported contrary to the provisions of
this section shall be forfeited to the Government of the Philippines and shall
be liable to be seized, prosecuted and condemned in like manner and under the
same regulations, restrictions and provisions as may from time to time be
established for the recovery, collection, distribution and remission or
forfeiture to the government by the tariff and customs laws. Whenever the
provision of this section shall be applicable to importations into the Philippines
of articles wholly or in part the growth or product of any foreign country,
they shall be applicable thereto, whether such articles are imported directly
or indirectly.
e. It shall be the duty of the Commission to ascertain
and at all times to be informed whether any of the discrimination against the
commerce of the Philippines enumerated in subsections "a" and
"b" of this section are practiced by any country; and if and when
such discriminatory acts are disclosed, it shall be the duty of the Commission
to bring the matter to the attention of the President, together with
recommendations.
f. The Secretary of finance shall make such rules and
regulations as are necessary for the execution of such proclamation as the
President may issue in accordance with the provisions of this section.
PART 3
FLEXIBLE TARIFF
Section 401
Flexible Clause
a. In the interest of national economy, general welfare
and/or national security, and subject to the limitations herein prescribed, the
President, upon recommendation of the National Economic and Development
Authority (hereinafter referred to as NEDA), is hereby empowered:
(1)
To increase, reduce or remove existing protective
rates of import duty (including any necessary change in classification). The
existing rates may be increased or decreased to any level, in one or several
stages but in no case shall the increased rate of import duty be higher than a
maximum of one hundred (100) per cent ad valorem;
(2)
To establish import quota or to ban imports of any
commodity, as may be necessary; and
(3)
To impose an additional duty on all imports not
exceeding ten (10%) per cent ad valorem whenever necessary; Provided, That upon
periodic investigations by the Tariff Commission and recommendation of the
NEDA, the President may cause a gradual reduction of protection levels granted
in Section One Hundred and Four of this Code, including those subsequently
granted pursuant to this section.
b. Before any recommendation is submitted to the
President by the NEDA pursuant to the provisions of this section, except in the
imposition of an additional duty not exceeding ten (10) per cent ad valorem,
the Commission shall conduct an investigation in the course of which they shall
hold public hearings wherein interested parties shall be afforded reasonable
opportunity to be present, produce evidence and to be heard. The Commission
shall also hear the views and recommendations of any government office, agency
or instrumentality concerned. The Commission shall submit their findings and
recommendations to the NEDA within thirty (30) days after the termination of
the public hearings.
c. The power of the President to increase or decrease
rates of import duty within the limits fixed in subsection "a" shall
include the authority to modify the form of duty. In modifying the form of
duty, the corresponding ad valorem or specific equivalents of the duty with
respect to imports from the principal competing foreign country for the most
recent representative period shall be used as bases.
d. The Commissioner of Customs shall regularly furnish
the Commission a copy of all customs import entries as filed in the Bureau of
Customs. The Commission or its duly authorized representatives shall have
access to, and the right to copy all liquidated customs import entries and
other documents appended thereto as finally filed in the Commission on Audit.
e. The NEDA shall promulgate rules and regulations
necessary to carry out the provisions of this section.
f. Any Order issued by the President pursuant to the
provisions of this section shall take effect thirty (3) days after
promulgation, except in the imposition of additional duty not exceeding ten
(10) per cent ad valorem which shall take effect at the discretion of the
President.
Section 402
Promotion of Foreign Trade
a. For the purpose of expanding foreign markets for
Philippine products as a means of assistance in the economic development of the
country, in overcoming domestic unemployment, in increasing the purchasing
power of the Philippine peso, and in establishing and maintaining better
relations between the Philippines and other countries, the President, is
authorized from time to time:
(1)
To enter into trade agreements with foreign
governments or instrumentalities thereof; and
(2)
To modify import duties (including any necessary
change in classification) and other import restrictions, as are required or
appropriate to carry out and promote foreign trade with other countries:
Provided, however, That in modifying import duties or fixing import quota the
requirements prescribed in subsection "a" of Section 401 shall be
observed: Provided, further, That any modification of import duties and any
fixing of import quotas made pursuant to this agreement on ASEAN Preferential
Trading Arrangements ratified on August 1, 1977 shall not be subject to the
limitations of aforesaid section "a" of Section 401.
b. The duties and other import restrictions as modified
in subsection "a" above, shall apply to articles which are the
growth, produce or manufacture of the specific country, whether imported
directly or indirectly, with which the Philippines has entered into a trade
agreement: Provided, That the President may suspend the application of any
concession to articles which are the growth, produce or manufacture of such
country because of acts (including the operations of international cartels) or
policies which in his opinion tend to defeat the purposes set in this section;
and the duties and other import restrictions as negotiated shall be in force
and effect from and after such time as specified in the Order.
c. Nothing in this section shall be construed to give
any authority to cancel or reduce in any manner any of the indebtedness of any
foreign country to the Philippines or any claim of the Philippines against any
foreign country.
d. Before any trade agreement is concluded with any
foreign government or instrumentality thereof, reasonable public notice of the
intention to negotiate an agreement with such government or instrumentality
shall be given in order than any interested person may have an opportunity to present
his views to the Commission which shall seek information and advice from the
Department of Agriculture, Department of Natural Resources, Department of Trade
and Industry, Department of Tourism, the Central Bank of the Philippines, the
Department of Foreign Affairs, the Board of Investments and from such other
sources as it may deem appropriate.
e.
(1)
In advising the President, as a result of the trade
agreement entered into, the Commission shall determine whether the domestic
industry has suffered or is being threatened with injury and whether the
wholesale prices at which the domestic products are sold are reasonable, taking
into account the cost of raw materials, labor, overhead, a fair return on
investment, and the overall efficiency of the industry.
(2)
The NEDA shall evaluate the report of the Commission
and submit recommendations to the President.
(3)
Upon receipt of the report of the findings and
recommendations of the NEDA, the President may prescribe such adjustments in
the rates of import duties, withdraw, modify or suspend, in whole or in part,
or institute such other import restrictions as the NEDA recommends to be
necessary in order to fully protect domestic industry and the consumers,
subject to the condition that the wholesale prices of the domestic products
concerned shall be reduced to, or maintained at, the level recommended by the
NEDA unless for good cause shown, an increase thereof, as recommended by NEDA,
is authorized by the President. Should increases be made without such
authority, the NEDA shall immediately notify the President, who shall allow the
importation of competing products in such quantities as to protect the public
from the unauthorized increase in wholesale prices.
f. This section shall not prevent the effectivity of
any executive agreement or any future preferential trade agreement with any
foreign country.
g. The NEDA and the Commission are authorized to
promulgate such reasonable procedure, rules and regulations as they may deem
necessary to execute their respective functions under this section.
PART 4
TARIFF COMMISSION
Section 501
Chief Officials of the
Tariff Commission
The Officials of the Tariff Commission shall be the Chairman and two
(2) Member Commissioners to be appointed by the President of the Philippines.
Section 502
Qualifications
No person shall be eligible for appointment as Chairman and Tariff
Commissioners unless they are natural-born citizens of the Philippines, of good
moral character and proven integrity, and who by experience and academic training
are possessed of qualifications requisite for developing expert knowledge of
tariff problems. They shall not, during their tenure in office, engage in the
practice of any profession, or intervene directly or indirectly in the
management or control of any private enterprise which may, in any way, be
affected by the functions of their office nor shall be, directly or indirectly,
financially interested in any contract with the Government, or any subdivision
or instrumentality thereof.
Section 503
Appointment and Compensation
of Officials and Employees
All employees of the Commission shall be appointed by the Chairman in
accordance with the Civil Service Law except the private secretaries to the
Chairman, Commissioners and Executive Director.
The Tariff Commission shall be reorganized in accordance with the
requirements of its reorganized functions and responsibilities. The Chairman of
the Commission, subject to the approval of the Director-General of the National
Economic and Development Authority, shall determine the new
positions-designations and salary scales of the officials and employees of the
Commission by taking into account the degree of responsibilities of each
position: Provided, That the Office of Compensation and Position Classification
shall be furnished a copy of the new plantilla of positions incorporating the
new designations to be automatically included in its manual of positions:
Provided, further, That the reorganization shall not in any way affect whatever
benefits the officials and employees of the Commission are allowed under
existing law and/or authority.
Section 504
Official Seal
The Commission is authorized to adopt an official seal.
Section 505
Functions of the Commission
The Commission shall investigate
(a)
The administration of, and the fiscal and industrial
effects of, the tariff and customs laws of this country now in force or which
may hereafter be enacted;
(b)
The relation between the rates of duty on raw
materials and the finished or partly finished products;
(c)
The effects of ad valorem and specific duties and of
compounds specific and ad valorem duties;
(d)
All questions relative to the arrangement of
schedules and classification of articles in the several sections of the tariff
law;
(e)
The tariff relations between the Philippines and
foreign countries, commercial treaties, preferential provisions, economic
alliances, the effect of export bounties and preferential transportation rates;
(f)
The volume of importations compared with domestic
production and consumption;
(g)
Conditions, causes and effects relating to
competition of foreign industries with those of the Philippines, including
dumping and cost of production;
(h)
In general, to investigate the operation of customs
and tariff laws, including their relation to the national revenues, their
effect upon the industries and labor of the country, and to submit reports of
its investigation as hereinafter provided; and
(i)
The nature and composition of, and the
classification of, articles according to tariff commodity classification and
heading number for customs revenue and other related purposes which shall be
furnished to NEDA, Board of Investments, Central Bank of the Philippines, and
Secretary of Finance.
Section 506
Assistance to the President
and Congress of the Philippines
In order that the President and the Congress may secure information and
assistance, it shall be the duty of the Commission to
(a)
Ascertain conversion costs and costs of production
in the principal growing, producing or manufacturing centers of the Philippines,
whenever practicable;
(b)
Ascertain conversion costs and costs of production
in the principal growing, producing or manufacturing centers of foreign
countries of articles imported into the Philippines whenever such conversion
costs or costs of production are necessary for comparison with those in the
Philippines;
(c)
Select and describe representative articles imported
into the Philippines similar to, or comparable with, those locally produced;
select and describe articles of the Philippines similar to, or comparable with,
such imported article; obtain and file samples of articles so selected whenever
advisable;
(d)
Ascertain import costs of such representative
articles so selected;
(e)
Ascertain the grower's, producer's or manufacture's
selling prices in the principal growing, producing, or manufacturing centers in
the Philippines, of the articles of the Philippines, so selected;
(f)
Ascertain all other facts which will show the
difference in, or which affect competition between, articles of the Philippines
and those imported in the principal markets of the Philippines;
(g)
Ascertain conversion costs and costs of production
including effects of tariff modifications or import restrictions on prices in
the principal growing, producing or manufacturing centers in the Philippines,
whenever practicable; and
(h)
Submit annual reports of these to the President of
the Philippines, copy of which shall be furnished to the NEDA, Central Bank of
the Philippines, Department of Finance and the Board of Investments.
Section 507
Reports of the Commission
The Commission shall place at the disposal of the President and any
member of the Congress of the Philippines or its member thereof all information
at its command; shall make such investigation and report as may be required by
the President and the Congress of the Philippines and shall report to the
President and Congress on the first Monday of December of each year hereafter a
statement of methods adopted and a summary of all reports made during the year.
Section 508
Access to Documents and
Assistance to the Commission
The Commission or its duly authorized representative shall have access
to any document, paper or record, pertinent to the subject matter under
investigation, in the possession of any person, firm, co-partnership,
corporation or association engaged in the production, importation or
distribution of any article under investigation, and shall have the power to
summon witnesses, take testimony, administer oaths, and to issue subpoena duces
tecum requiring the production of books, papers or documents relating to the
matter under investigation. The Commission may also request the views,
recommendations and/or assistance of any government office, agency or
instrumentality, and such office, agency or instrumentality shall cooperate
fully with the Commission.
Section 509
Sworn Statements
The Commission may order the taking of sworn statements at any stage of
any proceeding or investigation before it. Such sworn statements may be taken
before any person having power to administer oaths.
Section 510
Verified Statements
The Commission is authorized to require any importer, grower, producer,
manufacturer or seller to file with the Commission a statement, under oath,
giving his selling prices in the Philippines of any article imported, grown,
produced, fabricated or manufactured by him.
Section 511
Rules and Regulations of the
Commission
The Commission shall adopt and promulgate such rules and regulations as
may be necessary to carry out the provisions of this Code.
Section 512
Appropriation
In addition to its current appropriation the amount of Six Hundred
Thousand is hereby appropriated to carry out the purpose of sections five
hundred one and five hundred three of this Code.
TITLE III
EXPORT TARIFF AND PREMIUM DUTY
Section 514
Export Products subject to
Duty and Rates
There shall be levied, assessed and collected an export duty on the
gross F.O.B. value at the time of shipment based on the prevailing rate of
exchange, of the following products in accordance with the schedule specified
in the column Export Duty.
In addition to the export duties, herein referred to as basic rate,
there shall be levied, assessed and collected a premium duty on the difference
between the current price as established by the Bureau of Customs and the base
price of the products in accordance with the schedule specified under the
column Premium Duty; Provided, That should the current price of any export
product be below the established base price, then only the basic rate shall be
applied: Provided, further, That, initially, the base price upon which the
premium duty shall be levied eighty per centum (80%) of the F.O.B. value of
exports established by the Bureau of Customs for February 1974. The National
Economic and Development Authority shall, from time to time, review and
establish such base prices taking into account, among others, the cost
conditions in various industries.
EXPORT PRODUCTS EXPORT DUTY
1
Wood Products
1.
Logs 20%
2.
Lumber
3.
Veneer
4.
Plywood
Mineral Products
1.
Metallic ores and concentrates
a)
Copper
b)
Iron
c)
Chromite
2.
Gold
3.
Non-Metallic
a)
Clinker, cement
b)
Portland cement
4.
Mineral fuel
a)
Bunker fuel oil
b)
Petroleum pitch
5.
Silver
Plant and Vegetable Products
1.
Abaca (stripped hemp, manufactured)
2.
Banana
3.
Coconut
a)
Copra
b)
Coconut oil
c)
Copra meal/cake
d)
Dessicated coconut
4.
Pineapple
a)
Pineapple sliced or crushed
b)
Pineapple juice or juice concentrate
5.
Sugar and Sugar Products
a)
Centrifugal sugar
b)
Molasses
6.
Tobacco
a)
Tobacco leaf
b)
Scrap tobacco
Animal Products
1.
Shrimp and Prawns
For purposes of computing the duty, the cost of packaging and crating
materials shall be deductible from the export value, provided such materials
are domestically manufactured using a substantial portion of local raw
materials, as determined by the Board of Investments.
Section 515
Flexible Clause
The President, upon recommendation of the National Economic and
Development Authority, may subject any of the above products to higher or lower
rates of duty provided in this Title, include additional products, exclude or
exempt any product from this Title, or additionally subject any product to an
export quota. In the exercise of this authority the President shall take into
account:
(1)
The policy of encouraging domestic processing;
(2)
The prevailing prices of export products in the
world market;
(3)
The advantages obtained by export products from
international agreements to which the Philippines is a signatory;
(4)
The preferential treatment granted to our export
products by foreign governments; and
(5)
The need to meet domestic consumption requirements.
Section 516
Assessment and Collection of
the Duty
The duty shall be assessed by the Bureau of Customs and collected by
the Bureau thru authorized agent banks of the Central Bank not later than 30
days from the date of shipment.
Section 517
Deficiency and Surcharges
In case the duty is not fully paid at the time specified hereof, the
deficiency shall be increased by an amount equivalent to twenty-five per centum
(25%) thereof, the total to be collected in the same manner as the duty. Where
the deficiency is the result of false or fraudulent statements or
representations attributable to the exporter, the surcharge shall be fifty per
centum (50%).
Section 518
Allotment and Disposition of
the Proceeds
The proceeds of this duty shall accrue to the General Fund and shall be
allotted for development projects; except that one per centum (1%) annually
shall be set aside for the Export Assistance Fund to be administered by the
Board of Investments and expended in accordance with the General Appropriations
Act to finance export promotion projects; however, thirty per cent of this 1%
shall accrue to the Bureau of Customs which shall constitute as its
intelligence fund to be disbursed by the Commissioner of Customs in the
implementation of this Title, such as but not limited to the purchase of
equipment, hiring of personnel if necessary and for such other operational
expenses in the promotion of the export industry.
Section 519
Rules and Regulations
The Commissioner of Customs shall promulgate the rules and regulations
necessary for the implementation of this Title, subject to the approval of the
Secretary of Finance.
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