TITLE 1 (k) All other articles and parts thereof, the importation of

IMPORT TARIFF which prohibited by law or rules and regulations issued by

competent authority. (As amended by Presidential Decree
Section 100. Imported Articles Subject to Duty. — All No. 34)
articles, when imported from any foreign country into the
Philippines, shall be subject to duty upon each importation, Sec. 102. Abbreviations. — The following abbreviations
even though previously exported from the Philippines, used in this Code shall represent the terms indicated: c hanr obl es virtuall awlibrar y

except as otherwise specifically provided for in this Code in ad val. For ad valorem.
other laws. .
Sec. 101. Prohibited Importations. — The importation into e.g. For 'exempli gratia' meaning 'for example'.
the Philippines of the following articles is prohibited:
c hanr obl es virtuall awlibrar y

(a) Dynamite, gunpowder, ammunitions and other i.e. For 'id est' meaning 'that is'
explosives, firearms and weapons of war, and parts thereof, hd. For head.
except when authorized by law.
(b) Written or printed articles in any form containing any kg For kilogramme.
matter advocating or inciting treason, or rebellion, or
insurrection, sedition or subversion against the Government kgs. For kilogrammes.
of the Philippines, or forcible resistance to any law of the
Philippines, or containing any threat to take the life of, or l For litre.
inflict bodily harm upon any person in the Philippines.
(c) Written or printed articles, negatives or cinematographic g.w. For gross weight.
film, photographs, engravings, lithographs, objects,
paintings, drawings or other representation of an obscene l.w. For legal weight.
or immoral character.
(d) Articles, instruments, drugs and substances designed,
intended or adapted for producing unlawful abortion, or any n.w. For net weight.
printed matter which advertises or describes or gives
directly or indirectly information where, how, or by whom Sec. 103. General Rules for the Interpretation of the
unlawful abortion is produced. Harmonized System. — Classification of goods in the
Nomenclature shall be governed by the following
(e) Roulette wheels, gambling outfits, loaded dice, marked principles: c hanr obl es virtuall awlibrar y

cards, machines, apparatus or mechanical devices used in 1. The titles of Sections, Chapters and Sub-Chapters are
gambling or the distribution of money, cigars, cigarettes or provided for ease of reference only; for legal purposes,
other articles when such distribution is dependent on classifications shall be determined according to the terms of
chance, including jackpot and pinball machines or similar the headings and any relative Section or Chapter Notes
contrivances, or parts thereof. and, provided such headings or Notes do not otherwise
require, according to the following provisions.
.
(f) Lottery and sweepstakes tickets except those authorized 2. (a) Any reference in a heading to an article shall be taken
by the Philippine Government, advertisements thereof, and to include a reference to that article incomplete or
lists of drawings therein.
unfinished, provided that, as presented, the incomplete or
unfinished article has the essential character of the
(g) Any article manufactured in whole or in part of gold, complete or finished article.It shall also be taken to include
silver or other precious metals or alloys thereof, the stamps, a reference to that article complete or finished (or falling to
brands or marks or which do not indicate the actual fineness be classified as complete or finished by virtue of this Rule),
of quality of said metals or alloys. presented unassembled or disassembled.

(b) Any reference in a heading to a material or substance

(h) Any adulterated or misbranded articles of food or any shall be taken to include a reference to mixtures or
adulterated or misbranded drug in violation of the provisions combinations of that material or substance with other
of the "Food and Drugs Act." materials or substances.Any reference to goods of a given
material or substance shall be taken to include a reference
(i) Marijuana, opium, pipes, coca leaves, heroin or any other to goods consisting wholly or partly of such material or
narcotics or synthetic drugs which are or may hereafter be substance.The classification of goods consisting or more
declared habit forming by the President of the Philippines, than one material or substance shall be according to the
or any compound, manufactured salt, derivative, or principles of Rule 3.
preparation thereof, except when imported by the 3. When by application of Rule 2 (b) or for any other reason,
Government of the Philippines or any person duly goods are, prima facie, classifiable under two or more
authorized by the Dangerous Drugs Board, for medicinal headings, classification shall be effected as follows: c hanrobles virtuallawli brar y

purposes only. (a) The heading which provides the most specific
(j) Opium pipes and parts thereof, of whatever material. description shall be preferred to headings providing a more
general description. However, when two or more headings The rates of duty herein provided or subsequently fixed
each refer to part only of the materials or substances pursuant to Section four hundred one of this Code shall be
contained in mixed or composite goods or to part only of the subject to periodic investigation by the Tariff Commission
items in a set put for retail sale, those headings are to be and may be revised by the President upon recommendation
regarded as equally specific in relation to those goods, even of the National Economic and Development Authority.
if one of them gives a more complete or precise description The rates of duty herein provided shall apply to all products
of the goods. whether imported directly or indirectly of all foreign
. countries, which do not discriminate against Philippine
(b) Mixtures, composite goods consisting of different export products. An additional 100% across-the-board duty
materials or made up of different components, and goods shall be levied on the products of any foreign country which
put up in sets for retail sale, which cannot be classified by discriminates against Philippine export products.
reference to 3(a), shall be classified as if they consisted of
the material or component which gives them their essential The tariff Sections, Chapters, headings and subheadings
character insofar as this criterion is applicable. and the rate of import duty under Section one hundred four
(c) When goods cannot be classified by reference to 3 (a) of this Code shall be as follows: chanr o bles virtuallawlibr ar y

or 3 (b), they shall be classified under the heading which .

occurs last in numerical order among those which equally
merit consideration. (This portion containing the voluminous description of
rates of import duties, has been deleted for the
4. Goods which cannot be classified in accordance with the
convenience of readers who are more interested on the
above Rules shall be classified under the heading
substantive provisions of the Code)
appropriate to the goods to which they are most akin.
.
.
5. In addition to the foregoing provisions, the following
Rules shall apply in respect to the goods referred to Sec. 105. Conditionally-Free Importations. — The following
therein:c hanrobl es virtuallawli brar y
articles shall be exempt from the payment of import duties
(a) Camera cases, musical instrument cases, gun cases, upon compliance with the formalities prescribed in, or with,
drawing instrument cases, necklace cases and similar the regulations which shall be promulgated by the
containers, specifically shaped or fitted to contain a specific Commissioner of Customs with the approval of the
article or set of articles, suitable for long-term use and Secretary of Finance; Provided, That any article sold,
presented with the articles for which they are intended, shall bartered, hired or used for purposes other than that they
be classified with such articles when of a kind normally sold were intended for without prior payment of the duty, tax or
therewith.The Rule does not, however, apply to containers other charges which would have been due and payable at
which give the whole its essential character; the time of entry if the article had been entered without the
. benefit of this section, shall be subject to forfeiture and the
(b) Subject to the provisions of Rule 5(a) above, packing importation shall constitute a fraudulent practice against
materials and packing containers presented with the goods customs revenue punishable under Section Thirty-six
therein shall be classified with the goods if they are of a kind hundred and two, as amended of this Code: Provided,
normally used for packing such goods.However, this further, That a sale pursuant to a judicial order or in
provision does not apply when such packing materials or liquidation of the estate of a deceased person shall be
packing containers are clearly suitable for repetitive use. subject to the preceding proviso, without prejudice to the
payment of duties, taxes and other charges: Provided,
6. For legal purposes, the classification of goods in the finally, That the President may upon recommendation of the
subheadings of a heading shall be determined according to Secretary of Finance, suspend, disallow or completely
the terms of those subheadings and any related withdraw, in whole or in part, any of the conditionally-free
Subheading Notes and, mutatis mutandis, to the above importation under this section: c hanrobles virtuallawli brar y

Rules, on the understanding that only subheadings at the a. Aquatic products (e.g., fishes, crustaceans, mollusks,
same level are comparable.For the purposes of the Rule the marine animals, seaweeds, fish oil, roe), caught or gathered
relative Section and Chapter Notes also apply, unless the by fishing vessels of Philippine registry: Provided, That they
context otherwise requires. are imported in such vessels or in crafts attached thereto:
Sec. 104. All Tariff Sections, Chapters, headings and And provided, further, That they have not been landed in
subheadings and the rates of import duty under Section 104 any foreign territory or, if so landed, they have been landed
of Presidential Decree No. 34 and all subsequent solely for transshipment without having been advanced in
amendment issues under Executives Orders and condition;
Presidential Decrees are hereby adopted and form part of
this Code. b. Equipment for use in the salvage of vessels or aircrafts,
There shall be levied, collected, and paid upon all imported not available locally, upon identification and the giving of a
articles the rates of duty indicated in the Section under this bond in an amount equal to one and one-half times the
Section except as otherwise specifically provided for in this ascertained duties, taxes and other charges thereon,
Code: provided, that the maximum rate shall not exceed conditioned for the exportation thereof or payment of the
one hundred per cent ad valorem. corresponding duties, taxes and other charges within six (6)
months from the date of acceptance of the import entry:
Provided, That the Collector of Customs may extend the and household effects (except luxury items) of a returning
time for exportation or payment of duties, taxes and other resident who has not stayed abroad for six (6) months shall
charges for a term not exceeding six (6) months from the be subject to fifty (50)per cent ad valorem duty across the
expiration of the original period; board, the total dutiable value of which does not exceed two
thousand pesos (P2,000.00); any excess shall be subject to
c. Cost of repairs, excluding the value of the article used, the corresponding duty provided in this Code;
made in foreign countries upon vessels or aircraft
documented, registered or licensed in the Philippines, upon g. Wearing apparel, articles of personal adornment, toilet
proof satisfactory to the Collector of Customs (1) that articles, portable tools and instruments, theatrical costumes
adequate facilities for such repairs are not afforded in the and similar effects accompanying travelers, or tourists. or
Philippines, or (2) that such vessels or aircrafts, while in the arriving within a reasonable time before and after their
regular course of her voyage or flight was compelled by arrival in the Philippines, which are necessary and
stress of weather or other casualty to put into a foreign port appropriate for the wear and use of such persons according
to make such repairs in order to secure the safety, to the nature of the journey, their comfort and convenience:
seaworthiness or airworthiness of the vessel or aircraft to Provided, That this exemption shall not apply to articles
enable her to reach her port of destination; intended for other persons or for barter, sale or hire:
d. Articles brought into the Philippines for repair, processing Provided, further, That the Collector of Customs may, in his
or reconditioning to be re-exported upon completion of the discretion, require either a written commitment or a bond in
repair, processing or reconditioning: Provided, That the an amount equal to one and one-half times the ascertained
Collector of Customs shall require the giving of a bond in an duties, taxes and other charges conditioned for the
amount equal to one and one-half times the ascertained exportation thereof or payment of the corresponding duties,
duties, taxes and other charges thereon, conditioned for the taxes and other charges within three (3) months from the
exportation thereof or payment of the corresponding duties, date of acceptance of the import entry: And Provided finally,
taxes and other charges within six (6) months from the date That the Collector of Customs may extend the time for
of acceptance of the import entry; exportation or payment of duties, taxes and other charges
for a term not exceeding three (3) months from the
e. Medals, badges, cups and other small articles bestowed expiration of the original period;
as trophies or prizes, or those received or accepted as
honorary distinction; g-1. Personal and household effects and vehicles belonging
to foreign consultants and experts hired by, and/or
f. Personal and household effects belonging to residents of rendering service to, the government, and their staff or
the Philippines returning from abroad including jewelry, personnel and families, accompanying them or arriving
precious stones and other articles of luxury which were within a reasonable time before or after their arrival in the
formally declared and listed before departure and identified Philippines, in quantities and of the kind necessary and
under oath before the Collector of Customs when exported suitable to the profession, rank or position of the person
from the Philippines by such returning residents upon their importing them, for their own use and not for barter, sale or
departure therefrom and during their stay abroad; personal hire provided that, the Collector of Customs may in his
and household effects including wearing apparel, articles of discretion require either a written commitment or a bond in
personal adornment (except luxury items), toilet articles, an amount equal to one and one-half times the ascertained
portable appliances and instruments and similar personal duties, taxes and other charges upon the articles classified
effects, excluding vehicles, watercrafts, aircrafts, and under this subsection; conditioned for the exportation
animals purchased in foreign countries by residents of the thereof or payment of the corresponding duties, taxes and
Philippines which were necessary, appropriate and other charges within six (6) months after the expiration of
normally used for the comfort and convenience in their their term or contract; And Provided, finally, That the
journey and during their stay abroad upon proof satisfactory Collector of Customs may extend the time for exportation or
to the Collector of Customs that same have been in their payment of duties, taxes and other charges for term not
use abroad for more than six (6) months and accompanying exceeding six (6) months from the expiration of the original
them on their return, or arriving within a reasonable time period;
which, barring unforeseen circumstances, in no case shall
exceed ninety (90) days before or after the owners' return:
Provided, That the personal and household effects shall h. Professional instruments and implements, tools of trade,
neither be in commercial quantities nor intended for barter, occupation or employment, wearing apparel, domestic
sale or hire and that the total dutiable value of which shall animals, and personal and household effects belonging to
not exceed two thousand pesos (P2,000.00): Provided persons coming to settle in the Philippines or Filipinos
further, That the returning residents have not previously and/or their families and descendants who are now
received the benefit under this section within one year from residents or citizens of other countries, such parties
and after the last exemption granted: Provided furthermore, hereinafter referred to as Overseas Filipinos, in quantities
That a fifty (50) per cent ad valorem duty across the board and of the class suitable to the profession, rank or
shall be levied and collected on the personal and household position of the persons importing them, for their own use
effects (except luxury items) in excess of two thousand and not for barter or sale, accompanying such persons, or
pesos (P2,000.00): And provided, finally, That the personal arriving within a reasonable time, in the discretion of the
Collector of Customs, before or after the arrival of their Articles imported for the personal or family use of the
owners, which shall not be later than February 28, 1979 members and attaches of foreign embassies, legations,
upon the production of evidence satisfactory to the Collector consular officers and other representatives of foreign
of Customs that such persons are actually coming to settle governments: Provided, That such privilege shall be
in the Philippines, that change of residence was bona fide accorded under special agreements between the
and that the privilege of free entry was never granted to Philippines and the countries which they represent: And
them before or that such person qualifies under the Provided, further, That the privilege may be granted only
provisions of Letters of Instructions 105, 163 and 210, and upon specific instructions of the Secretary of Finance in
that the articles are brought from their former place of each instance which will be issued only upon request of the
abode, shall be exempt from the payment of customs duties Department of Foreign Affairs;
and taxes: Provided, That vehicles, vessels, aircrafts,
machineries and other similar articles for use in l. Imported articles donated to, or for the account of, any
manufacture, shall not be classified hereunder; duly registered relief organization, not operated for profit, for
free distribution among the needy, upon certification by the
i. Articles used exclusively for public entertainment, and for Department of Social Services and Development or the
display in public expositions, or for exhibition or Department of Education, Culture and Sports, as the case
competitionfor prizes, and devices for projecting pictures may be;
and parts and appurtenances thereof, upon identification,
examination, and appraisal and the giving of a bond in an m. Containers, holders and other similar receptacles of any
amount equal to one and one-half times the ascertained material including kraft paper bags for locally manufactured
duties, taxes and other charges thereon, conditioned for cement for export, including corrugated boxes for bananas,
exportation thereof or payment of the corresponding duties, mangoes, pineapples and other fresh fruits for export,
taxes and other charges within six (6) months from the date except other containers made of paper, paperboard and
of acceptance of the import entry; Provided, That the textile fabrics, which are of such character as to be readily
Collector of Customs may extend the time for exportation or identifiable and/or reusable for shipment or transportation of
payment of duties, taxes and other charges for a term not goods shall be delivered to the importer thereof upon
exceeding six (6) months from the expiration of the original identification, examination and appraisal and the giving of a
period; and technical and scientific films when imported by bond in an amount equal to one and one-half times the
technical, cultural and scientific institutions, and not to be ascertained duties, taxes and other charges within six (6)
exhibited for profit: Provided, further, That if any of the said months from the date of acceptance of the import entry;
films is exhibited for profit, the proceeds therefrom shall be
subject to confiscation, in addition to the penalty provided
n. Supplies which are necessary for the reasonable
under Section Thirty-six hundred and ten as amended, of
requirements of the vessel or aircraft in hervoyage or flight
this Code;
outside the Philippines, including articles transferred from a
bonded warehouse in any collection district to any vessel or
j. Articles brought by foreign film producers directly and aircraft engaged in foreign trade, for use or consumption of
exclusively used for making or recording motion picture the passengers or its crew on board such vessel or aircrafts
films on location in the Philippines, upon their identification, as sea or air stores; or articles purchased abroad for sale
examination and appraisal and the giving of a bond in an on board a vessel or aircraft as saloon stores or air store
amount equal to one and one-half times the ascertained supplies: Provided, That any surplus or excess of such
duties, taxes and other charges thereon, conditioned for vessel or aircraft supplies arriving from foreign ports or
exportation thereof or payment of the corresponding duties, airports shall be dutiable;
taxes and other charges within six (6) months from the date
of acceptance of the import entry, unless extended by the
o. Articles and salvage from vessels recovered after a
Collector of Customs for another six (6) months;
period of two (2) years from the date of filing the marine
photographic and cinematographic films, undeveloped,
protest or the time when the vessel was wrecked or
exposed outside the Philippines by resident Filipino citizens
abandoned, or parts of a foreign vessel or her equipment,
or by producing companies of Philippine registry where the
wrecked, abandoned in Philippine waters or elsewhere:
principal actors and artists employed for the production are
Provided, That articles and salvage recovered within the
Filipinos, upon affidavit by the importer and identification
said period oftwo (2) years shall be dutiable;
that such exposed films are the same films previously
exported from the Philippines. As used in this paragraph,
the terms "actors" and "artists" include the persons p. Coffins or urns containing human remains, bones or
operating the photographic cameras or other photographic ashes, used personal and household effects (not
and sound recording apparatus by which the film is made; merchandise) of the deceased person, except vehicles, the
value of which does not exceed ten thousand pesos
(P10,000.00), upon identification as such;
k. Importations for the official use of foreign embassies,
legations, and other agencies of foreign governments:
Provided, That those foreign countries accord like privileges q. Samples of the kind, in such quantity and of such
to corresponding agencies of the Philippines; dimension or construction as to render them unsalable or of
no appreciable commercial value; models not adapted for
practical use; and samples of medicines, properly marked
"sample-sale punishable by law," for the purpose of are for economic, technical, vocational, scientific,
introducing a new article in the Philippine market and philosophical, historical or cultural purposes or that the
imported only once in a quantity sufficient for such purpose same are educational, scientific or cultural materials
by a person duly registered and identified to be engaged in covered by the International Agreement on Importation of
that trade: Provided, That importations under this Educational Scientific and Cultural Materials signed by the
subsection shall be previously authorized by the Secretary President of the Philippines on August 2, 1952, or other
of Finance: Provided, however, That importation of sample agreements binding upon the Philippines.
medicine shall be previously authorized by the Secretary of
Health that such samples are new medicines not available
in the Philippines: Provided, finally, That samples not Educational, scientific and cultural materials covered by
previously authorized and/or properly marked in international agreements or commitments binding upon the
accordance with this section shall be levied the Philippine Government so certified by the Department of
corresponding tariff duty. Education, Culture and Sports.

Commercial samples, except those that are not readily and Bibles, missals, prayer books, Koran, Ahadith and other
easily identifiable (e.g., precious and semi-precious stones, religious books of similar nature and extracts therefrom,
cut or uncut, and jewelry set with precious stones), the value hymnal and hymns for religious uses;
of any single importation of which does not exceed ten
thousand pesos (P10,000.00) upon the giving of a bond in
an amount equal to twice the ascertained duties, taxes and t. Philippine articles previously exported from the
other charges thereon, conditioned for the exportation of Philippines and returned without having been advanced in
said samples within six (6) months from the date of the value or improved in condition by any process of
acceptance of the import entry or in default thereof, the manufacture or other means, and upon which no drawback
payment of the corresponding duties, taxes and other or bounty has been allowed, including instruments and
charges. If the value of any single consignment of such implements, tools of trade, machinery and equipment, used
commercial samples exceeds ten thousand pesos abroad by Filipino citizens in the pursuit of their business,
(P10,000.00),the importer thereof may select any portion of occupation or profession; and foreign articles previously
same not exceeding in value of ten thousand pesos imported when returned after having been exported and
(P10,000.00) for entry under the provision of this loaned for use temporarily abroad solely for exhibition,
subsection, and the excess of the consignment may be testing and experimentation, for scientific or educational
entered in bond, or for consumption, as the importer may purposes; and foreign containers previously imported which
elect; have been used in packing exported Philippine articles and
returned empty if imported by or for the account of the
person or institution who exported them from the Philippines
r. Animals (except race horses), and plants for scientific, and not for sale, barter or hire subject to identification:
experimental, propagation, botanical, breeding, zoological Provided, That any Philippine article falling under this
and national defense purposes: Provided, That no live subsection upon which drawback or bounty has been
trees, shoots, plants, moss, and bulbs, tubers and seeds for allowed shall, upon re-importation thereof, be subject to a
propagation purposes may be imported under this section, duty under this subsection equal to the amount of such
except by order of the Government or other duly authorized drawback or bounty.
institutions: Provided, further, That the free entry of animals u. Aircraft, equipment and machinery, spare parts
for breeding purposes shall be restricted to animals of commissary and catering supplies, aviation gas, fuel and oil,
recognized breed, duly registered in the book of record whether crude or refined, and such other articles or supplies
established for that breed, certified as such by the Bureau imported by and for the use of scheduled airlines operating
of Animal Industry: Provided, furthermore, That certificate of under Congressional franchise: Provided, That such articles
such record, and pedigree of such animal duly or supplies are not locally available in reasonable quantity,
authenticated by the proper custodian of such book of quality and price and are necessary or incidental for the
record, shall be produced and submitted to the Collector of proper operation of the scheduled airline importing the
Customs, together with affidavit of the owner or importer, same;
that such animal is the animal described in said certificate
of record and pedigree: And Provided, finally, That the
animals and plants are certified by the National Economic v. Machineries, equipment, tools for production, plants to
and Development Authority as necessary for economic convert mineral ores into saleable form, spare parts,
development; supplies, materials, accessories, explosives, chemicals,
and transportation and communication facilities imported by
and for the use of new mines and old mines which resume
s. Economic, technical, vocational, scientific, philosophical, operations, when certified to as such by the Secretary of
historical, and cultural books and/or publications: Provided, Agriculture and Natural Resources upon the
That those which may have already been imported but recommendation of the Director of Mines, for a period
pending release by the Bureau of Customs at the effectivity ending five (5) years from the first date of actual commercial
of this Decree may still enjoy the privilege herein provided production of saleable mineral products: Provided, That
upon certification by the Department of Education, Culture such articles are not locally available in reasonable quantity,
and Sports that such imported books and/or publications quality and price and are necessary or incidental in the
proper operation of the mine; and aircrafts imported by receipt by the mission or consulate of his order of recall, and
agro-industrial companies to be used by them in their which must be registered in his name: Provided, however,
agriculture and industrial operations or activities, spare That this exemption shall apply only to the value of the
parts and accessories thereof; motor car and to aggregate assessed value of said personal
and household effects the latter not to exceed thirty per
w. Spare parts of vessels or aircraft of foreign registry centum (30%) of the total amount received by such officer
engaged in foreign trade when brought into the Philippine or employee in salary and allowances during his latest
exclusively as replacements or for the emergency repair assignment abroad but not to exceed four years; And
thereof, upon proof satisfactory to the Collector of Customs Provided, finally, That the officer or employee concerned
that such spare parts shall be utilized to secure the safety, must have served abroad for not less than two years.
seaworthiness or airworthiness of the vessel or aircraft, to The provisions of general and special laws, including those
enable it to continue its voyage or flight; granting franchises, to the contrary notwithstanding, there
shall be no exemptions whatsoever from the payment of
x. Articles of easy identification exported from the customs duties except those provided for in this Code;
Philippines for repair and subsequently reimported upon those granted to government agencies, instrumentalities or
government-owned or controlled corporations with existing
proof satisfactory to the Collector of Customs that such
contracts, commitments, agreements, or obligations
articles are not capable of being repaired locally: Provided,
(requiring such exemption) with foreign countries;
That the cost of the repairs made to any such article shall
international institutions, associations or organizations
pay a rate of duty of thirty per cent ad valorem;
entitled to exemption pursuant to agreements or special
laws; and those that may be granted by the President upon
y. Trailer chassis when imported by shipping companies for prior recommendation of the National Economic and
their exclusive use inhandling containerized cargo, upon Development Authority in the interest of national economic
posting a bond in an amount equal to one and one-half development.
times the ascertained duties, taxes and other charges due Sec. 106. Drawbacks. — a. On Fuel Used for Propulsion of
thereon to cover a period of one year from the date of Vessels. — On all fuel imported into the Philippines used for
acceptance of the entry, which period for meritorious propulsion of vessels engaged in trade with foreign
reasons may be extended by the Commissioner of Customs countries, or in the coastwise trade, a refund or tax credit
from year to year, subject to the following conditions: chanr obl es virtuallawlibrar y

shall be allowed not exceeding ninety-nine (99) per cent of

the duty imposed by law upon such fuel, which shall be paid
1. That they shall be properly identified and registered with or credited under such rules and regulations as may be
the Land Transportation Commission; prescribed by the Commissioner of Customs with the
approval of the Secretary of Finance.

b. On Petroleum Oils and Oils Obtained from Bituminous

Minerals, Crude Eventually Used for Generation of Electric
Power and for the Manufacture of City Gas. — On
2. That they shall be subject to customs supervision fee to
petroleum oils and oils obtained from bituminous materials,
be fixed by the Collector of Customs and subject to the
crude oils imported by non-electric utilities, sold directly or
approval of the Commissioner of Customs;
indirectly, in the same form or after processing, to electric
utilities for the generation of electric power and for the
3. That they shall be deposited in the Customs zone when manufacture of city gas, a refund or tax credit shall be
not in use; and allowed not exceeding fifty per cent (50%) of the duty
4. That upon the expiration of the period prescribed above, imposed by law upon such oils, which shall be paid or
duties and taxes shall be paid, unless otherwise re- credited under such rules and regulations as may be
exported. prescribed by the Commissioner of Customs with the
The provisions of Sec. 105 of Presidential Decree No. 34, approval of the Secretary of Finance.
dated October 27, 1972, to the contrary notwithstanding any
officer or employee of the Department of Foreign Affairs, c. On Articles Made from Imported Materials. — Upon
including any attache, civil or military, or member of his staff exportation of articles manufactured or produced in the
assigned to a Philippine diplomatic mission abroad by his Philippines, including the packing, covering, putting up,
Department or any similar officer or employee assigned to marking or labeling thereof either in whole or in part of
a Philippine consular office abroad, or any personnel of the imported materials for which duties have been paid, refund
Reparations Mission in Tokyo or AFP military personnel or tax credit shall be allowed for the duties paid on the
detailed with SEATO or any AFP military personnel imported materials do used including the packing, covering,
accorded assimilated diplomatic rank on duty abroad who is putting up, marking or labeling thereof, subject to the
returning from a regular assignment abroad, for following conditions:c hanrobles virtuallawli brar y

reassignment to his Home office, or who dies, resigns, or is

retired from the service, after the approval of this Decree, 1. The actual use of the imported materials in the production
shall be exempt from the payment of all duties and taxes on or manufacture of the article exported with their quantity,
his personal and household effects, including one motor car
which must have been ordered or purchased prior to the
value, and amount of duties paid thereon, having been TITLE II
established; ADMINISTRATIVE PROVISIONS

2. The duties refunded or credited shall not exceed one PART I

hundred (100) per cent of duties paid on imported materials BASES OF ASSESSMENT OF DUTY
used;
3. There is no determination by the National Economic and
Development Authority of the requirement for certification Sec. 201. — Basis of Dutiable Value. — The dutiable value
on non-availability of locally-produced or manufactured of an imported article subject to an ad valorem rate of duty
competitive substitutes for the imported materials used at shall be based on the cost (fair market value) of same, like
the time of importation; or similar articles, as bought and sold or offered for sale
freely in the usual wholesale quantities in the ordinary
4. The exportation shall be made within one (1) year after course of trade in the principal markets of the exporting
the importation of materials used and claim of refund or tax country on the date of exportation to the Philippines
credit shall be filed within six (6) months from the date of (excluding internal excise taxes to be remitted or rebated)
exportation; or where there is none on such date, then on the cost (fair
market value) nearest to the date of exportation, including
5. When two or more products result from the use of the the value of all container, covering and/or packings of any
same imported materials, an apportionment shall be made kind and all other expenses, costs and charges incident to
on its equitable basis. placing the article in a condition ready for shipment to the
Philippines, and freight as well as insurance premium
For every application of a drawback, there shall be paid to covering the transportation of such articles to the port of
and collected by the Bureau of Customs as filing, entry in the Philippines.
processing and supervision fees the sum of Five Hundred
Pesos (P500.00) which amount may be increased or Where the fair market value or price of the article cannot be
decreased when the need arises by the Secretary of ascertained thereat or where there exists a reasonable
Finance upon the recommendation of the Commissioner of doubt as to the fairness of such value or price, then the fair
Customs. market value or price in the principal market in the country
of manufacture or origin, if it is not the country of
d. Payment of Partial Drawbacks. — The Secretary of exportation, or in a third country with the same stage of
Finance may, upon recommendation of the Commissioner economic development as the country of exportation shall
of Customs, promulgate rules and regulations allowing be used.
partial payments of drawbacks under this section.
e. Payment of the Drawbacks. — Claims for refund or tax When the dutiable value of the article cannot be ascertained
credit eligible for such benefits shall be paid or granted by in accordance with the preceding paragraphs or where
the Bureau of Customs to claimants within sixty (60) days there exists a reasonable doubt as to the cost (fair market
after receipt of properly accomplished claims: Provided, value) of the imported article declared in the entry, the
That a registered enterprise under Republic Act Numbered correct dutiable value of the article shall be ascertained by
Fifty-one hundred and eighty-six or Republic Act Numbered the Commissioner Of Customs from the reports of the
Sixty-one hundred and thirty-five which has previously Revenue or Commercial Attache (Foreign Trade Promotion
enjoyed tax credit based on customs duties paid on Attache), pursuant to Republic Act Numbered Fifty-four
imported raw materials and supplies, shall not be entitled to Hundred and Sixty-six or other Philippine diplomatic officers
drawback under this section, with respect to the same or Customs Attaches and from such other information that
importation subsequently processed and re-exported; may be available to the Bureau of Customs. Such values
Provided, further, That is as a result of the refund or tax shall be published by the Commissioner of Customs from
credit by way of drawback of customs duties, there would time to time.
necessarily result a corresponding refund or credit of
internal revenue taxes on the same importation, the
Collector of Customs shall likewise certify the same to the When the dutiable value cannot be ascertained as provided
Commissioner of Customs who shall cause the said refund in the preceding paragraphs, or where there exists a
or tax credit of internal revenue taxes to be paid, refunded reasonable doubt as to the dutiable value of the imported
or credited in favor of the importer, with advice to the article declared in the entry, it shall be domestic wholesale
Commissioner of Internal Revenue. 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:c hanrobles virtuallawli brar y

(a) not more than twenty-five (25) per cent thereof for
expenses and profits; and
 duty, upon the entry, or withdrawal thereof from warehouse,
(b) duties and taxes paid thereon. (as amended by E.O. for consumption.
156)
On article abandoned or forfeited to, or seized by, the
government, and then sold at public auction, the rates of
Sec. 202. Bases of Dutiable Weight. — On articles that are duty and the tariff in force on the date of the auction shall
subject to the specific rate of duty, based on weight, the duty apply: Provided, That duty based on the weight, volume and
shall be ascertained as follows: chanr obl es virtuallawlibr ar y

quantity of articles shall be levied and collected on the

weight, volume and quantity at the time of their entry into
(a) When articles are dutiable by the gross weight, the the warehouse or the date of abandonment, forfeiture
dutiable weight thereof shall be the weight of same, together and/or seizure.
with the weight of all containers, packages, holders and
packing, of any kind, in which said articles are contained, Sec. 205. Entry, or Withdrawal from Warehouse, for
held or packed at the time of importation. Consumption. — Imported articles shall be deemed
"entered" in the Philippines for consumption when the
(b) When articles are dutiable by the legal weight thereof specified entry form is properly filed and accepted, together
shall be the weight of same, together with the weight of the with any related documents required by the provisions of
immediate containers, holders and/or packing in which such this Code and/or regulations to be filed with such form at the
articles are usually contained, held or packed at the time of time of entry, at the port or station by the customs official
importation and/or, when imported in retail packages, at the designated to receive such entry papers and any duties,
time of their sale to the public in usual retail quantities: c hanrobles virtuallawlibr ar y

taxes, fees and/or other lawful charges required to be paid

Provided, That when articles are packed in single container, at the time of making such entry have been paid or secured
the weight of the latter shall be included in the legal weight. to be paid with the customs official designated to receive
such monies, provided that the article has previously arrived
(c) When articles are dutiable by the net weight, the dutiable within the limits of the port of entry.
weight thereof shall be only the actual weight of the articles
at the time of importation, excluding the weight of the Imported articles shall be deemed "withdrawn" from
immediate and all other containers, holders or packing in warehouse in the Philippines for consumption when the
which such articles are contained, held or packed. specified form is properly filed and accepted, together with
any related documents required by any provisions of this
(d) Articles affixed to cardboard, cards, paper, wood or Code and/or regulations to be filed with such form at the
similar common material shall be dutiable together with the time of withdrawal, by the customs official designated to
weight of such holders. receive the withdrawal entry and any duties, taxes, fees
(e) When a single package contains imported articles and/or other lawful charges required to be paid at the time
dutiable according to different weights, or to weight and of withdrawal have been deposited with the customs official
value, the common exterior receptacles shall be prorated designated to receive such payment.
and the different proportions thereof treated in accordance
with the provisions of this Code as to the dutiability or non-
dutiability of such packing.
PART 2
SPECIAL DUTIES
Sec. 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 Sec. 301. Dumping Duty. —
currency shall be converted into the currency of the
Philippines at the current rate of exchange or value a. Whenever the Secretary of Finance (hereinafter called
specified or published, from time to time, by the Central the "Secretary") has reason to believe, from invoices or
Bank of the Philippines. other documents or newspapers, magazines or information
made available by any government agency or interested
Sec. 204. Effective Date of Rates of Import Duty. — party, that a specific kind or class of foreign article, is being
Imported articles shall be subject to the rate or rates of imported into, or sold or is likely to be sold in the Philippines,
import duty existing at the time of entry, or withdrawal from at a price less than its fair value, the importation and sale of
warehouse, in the Philippines, for consumption. which might injure, or retard the establishment of, or is likely
to injure, an industry producing like goods in the Philippines,
On and after the day when this Code shall go into effect, all he shall so advise the Tariff Commission (hereinafter called
articles previously imported, for which no entry has been the "Commission"), and shall instruct the Collector of
made, and all articles previously entered without payment Customs to require an anti-dumping bond of twice the
of duty and under bond for warehousing, transportation, or dutiable value of the imported article coming from the
any other purpose, for which no permit of delivery to the specific country.
importer or his agent has been issued, shall be subject to
the rates of any duty imposed by this Code and to any other
b. The Commission, upon receipt of the advice from the question is being imported in violation of this section and
Secretary shall conduct an investigation to: c hanr obl es virtuall awlibrar y shall give due notice of such decision and shall direct the
1. Verify if the kind or class of article in question is being Commissioner of Customs to cause the dumping duty, to be
imported into, or sold or is likely to be sold in the Philippines levied, collected and paid, as prescribed in this section, in
at a price less than its fair value; addition to any other duties, taxes and charges as
prescribed in this section, addition to any other duties, taxes
The fair value of an article shall be its home consumption and charges imposed by law on such article, and on the
price, excluding internal excise tax. articles of the same specific kind or class subsequently
If the fair value of an article cannot be determined, the imported under similar circumstances coming from the
following rules shall apply:c hanr obl es virtuall awlibrar y
specific country.
i. If the home consumption price is unreliable because of
association or a compensatory arrangement between the d. The "Dumping Duty" as provided for in sub-section "c"
exporter and the importer or a third party, or if the quality of hereof shall be equal to the difference between the actual
like to similar articles sold by the producers for home purchase price and the fair value of the article as
consumption is negligible in relation to the quality sold for determined in the dumping decision. All importations of like
exportation to countries other than the Philippines as to be articles within sixty (60)days immediately preceding the
an inadequate basis for comparison, then the fair value of filing of the protest are covered by the investigation.
the articles shall be based from the export price of like However, in cases of subsequent importations of the same
articles sold to countries other than the Philippines, or kind or class of article from the specific country named in
the protest, the dumping duty shall be equal to the
ii. If the country of export is a state-controlled economy, difference between the actual purchase price and the fair
then the fair value of like articles shall be the home value actually existing at the time of importation as
consumption price of like articles in a proxy country at the determined by the Tariff Commission from the supporting
same stage of economic development which is a proven or documents submitted or from other reliable sources.
established competitive producer of the article under
consideration. e. Pending investigation and final decision of the case, the
article in question, and articles of the same specific kind or
iii. In the case where products are not imported directly from class subsequently imported under similar circumstances,
the country of origin but are exported to the country of shall be released to the owner, importer, consignee or agent
importation from an intermediate country, the fair value shall upon the giving of a bond in an amount equal to twice the
be the home consumption in the country of origin or the estimated dutiable value thereof.
country of export whichever is higher. f. Any aggrieved party may appeal only the amount of the
iv. If the fair value of such or like articles cannot be dumping duty to the Court of Tax Appeals in the same
determined in accordance with the preceding paragraphs manner and within the same period provided for by law in
then, the fair value of the article under consideration shall the case of appeal from decision of the Commissioner of
be its cost of production as determined of calculated from Customs.
reasonably available data.
2. Determine if, as a result thereof, an industry producing g. (1) The article, if it has not been previously released
like goods in the Philippines, is being injured or is likely to under bond as provided for in subsection "e" hereof, shall
be injured or is retarded from being established by reason be released after payment by the party concerned of the
of the importation or sale of that kind or class of article into corresponding dumping duty in addition to any ordinary
the Philippines: Provided, That a finding that an article is duties, taxes, and charges, if any, or re-exported by the
being imported into the Philippines at a price less than its owner, importer, consignee or agent, at his option and
fair market value shall be deemed prima facie proof expense, upon the filing of a bond in an amount equal to
of injury, or retarding the establishment of an industry twice the estimated dutiable value of the article, conditioned
producing like goods in the Philippines: And provided, upon presentation of landing certificate issued by a consular
further, That in determining whether the domestic industry officer of the Philippines at the country of destination; or
has suffered is being threatened with injury, the
Commission shall determine whether the wholesale prices (2) If the article has been previously released under bond,
at which the domestic products are sold are reasonable, as provided in subsection "e" hereof, the party concerned
taking into account the cost of raw materials, labor, shall be required to pay the corresponding dumping duty in
overhead, a fair return on investment and the overall addition to any ordinary duties, taxes and charges, if any.
efficiency of the industry; and
3. Ascertain the difference, if any, between the purchase h. Any investigation to be conducted by the Commission
price and the fair market value of the article. The under this section shall include a public hearing or hearings
Commission shall submit its findings to the Secretary within where the importer, consignee or agent, of the imported
sixty (60) days after the submission of the memoranda of article, the local producers of a like article, other parties
the parties which shall not be later than fifteen (15) days directly affected, and such other parties as in the judgment
after the termination of the public hearing. of the Commission are entitled to appear, shall be given an
c. The Secretary shall, within sixty (60) days after receipt of opportunity to be heard and to present evidence bearing on
the report of the Commission, decide whether the article in the subject matter.
i. The established dumping duty shall be subject to a. Whenever any article is directly or indirectly granted any
adjustment based on the prevailing home consumption bounty, subsidy or subvention upon its production,
price or the exporter's sales price to third country or the manufacture or exportation in the country of origin and/or
home consumption price of a proxy country or in the exportation, and the importation of which has been
absence thereof, the cost of production. The Commission determined by the Secretary, after investigation and report
shall conduct quarterly examination and/or verification of of the Commission, as likely to injure an established
the fair value to determine the necessity of adjustment. industry, or prevent or considerably retard the
Should the Secretary, upon receipt of the report of the establishment of an industry in the Philippines, there shall
Commission, find that there is a need for an adjustment he be levied a countervailing duty equal to the ascertained or
shall direct the commissioner of Customs to effect the estimated amount of such bounty, countervailing duty equal
necessary adjustment in dumping duty. to the ascertained or estimated amount of such bounty,
subsidy or subvention: Provided, That the injury criterion to
The Philippines Finance Attache or, in the absence thereof, a domestic industry shall be applied only in case of imports
the Commercial Attache or, in the absence thereof, the from countries which adhere to the GATT Code on
diplomatic officer and/or consular officer abroad shall be Subsidies and Countervailing Duties; Provided further, That
advised by the Secretary of any article covered by dumping the exemption of any exported article from duty or tax
decision. The concerned Attache or the Officer shall submit imposed on like articles when destined for consumption in
quarterly report on home consumption prices, or in the the country of origin and/or exportation or the refunding of
absence thereof, the cost of production, of said articles to such duty or tax, shall not be deemed to constitute a grant
the Secretary and the Commission, thru the department of a bounty, subsidy or subvention within the meaning of this
head. 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
j. Whenever the Commission, on its own motion or upon the
amount of the drawback over the total amount of the duties
application of any interested party, finds that any of the
conditions which necessitated the imposition of the dumping and/or internal taxes, if any, shall constitute a bounty,
duty has ceased to exist, it shall submit the necessary subsidy or subvention: Provided, finally, That petitions for
imposition of countervailing duty shall be filed with the
recommendation to the Secretary for the discontinuance or
Secretary of Finance. Upon finding of a prima facie case of
modification of such dumping duty. Any decision or order
bounty, subsidy or subvention enjoyed by the imported
made under this section by the Secretary shall be published
article and injury to, or likelihood of injury to a domestic
in the Official Gazette and/or in a newspaper of general
circulation. 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
k. Any dumping decision promulgated by the Secretary shall of countervailing bonds for importations entered during the
be effective for a period of five years from the time of its pendency of countervailingproceedings;
promulgation except upon the representation of the
interested party of the necessity to continues the
b. The Secretary shall, after receipt of the reports of the
implementation of said decision, in which case the
Commission, decide whether the article in question is
Secretary shall advice the Commission to conduct an
granted any bounty, subsidy or subvention and if so, fix the
investigation to determine whether the conditions in
countervailing duty equal to the ascertained or estimated
paragraphs b-1 and b-2 still exist. The action for extension
bounty, subsidy or subvention.He shall give due notice of
shall be brought before the Secretary at least six (6) months
his decision and shall direct the Commissioner of Customs
before the expiration of the period.
to cause the countervailing duty to be levied, collected and
paid in addition to any ordinary duties, taxes and charges
The findings of the Commission shall be submitted to the imposed by law on such articles and on articles of the same
Secretary at least three (3) months before the expiration of specific kind or class subsequently imported under similar
the period. circumstances;
c. Pending investigation and final decision of the case, the
[All industries protected by any dumping decision for five article in question shall not be released from customs
years or more from the time of its promulgation may apply custody to the owner except upon the filing of a bond equal
for extension to the Secretary within six (6) months from to the ascertained or estimated amount of bounty, subsidy
effectivity of this Decree. The decision shall be deemed or subvention as provisionally determined by the Secretary
terminated upon failure to file the application within the of Finance;
period so provided.]
d. The article, if not previously released under bond as
provided for in this section, shall be released after payment
l. The Secretary and the Commission shall promulgate all by the party concerned of the corresponding countervailing
rules and regulations necessary to carry out their respective duty in addition to any ordinary duties, taxes and charges, if
functions under this Section. 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
Sec. 302. Countervailing Duty. — consular officer of the Philippines at the country of
destination. If the article has been previously released 3. Authorize the exception of any article from the
under bond, the party concerned shall be required to pay requirements of marking if -
the corresponding countervailing duty in addition to ordinary a. Such article is incapable of being marked;
duties, taxes and other charges, if any;
b. Such article cannot be marked prior to shipment to the
Philippines without injury;
e. Whenever the Commission, on its motion or upon
application of any interested party, finds that the condition c. Such article cannot be marked prior to shipment to the
which necessitated the imposition of the countervailing duty Philippines, except at an expense economically prohibitive
has ceased to exist, it shall submit the necessary of its importation;
recommendations to the Secretary for the discontinuance of d. The marking of a container of such article will reasonably
the imposition of that duty. Any order made under this indicate the origin of such article;
section by the Secretary shall be published in the Official
Gazette and/or in a newspaper of general circulation; e. Such article is a crude substance;

f. Any countervailing decision promulgated by the Secretary f. Such article is imported for use by the importer and not
shall be effective for a period of five (5) years from the time intended for sale in its imported or any other form;
of its promulgation except upon the representation of the
interested party of the necessity to continue the
g. Such article is to be processed in the Philippines by the
implementation of said decision, in which case the
importer or for his account otherwise than for the purpose
Secretary shall advise the Commission to conduct an of concealing the origin of such article and in such manner
investigation to determine whether the conditions in that any mark contemplated by this section would
paragraph "a" still exist. The action for extension shall be
necessarily be obliterated, destroyed or permanently
brought before the Secretary at least six (6) months before
concealed;
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 h. An ultimate purchaser, by reason of the character of such
the period. 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;
g. The Secretary and the Commission shall promulgate all
rules and regulations necessary to carry out their respective
functions under this section. i. Such article was produced more than twenty years prior
to its importation into the Philippines; or
Sec. 303. Marking of Imported Articles and Containers. —
j. Such article cannot be marked after importation except at
an expense which is economically prohibitive, and the
a. Marking of Articles. — Except as hereinafter provided,
failure to mark the article before importation was not due to
every article of foreign origin (or its container, as provided
any purpose of the importer, producer, seller or shipper to
in subsection "b" hereof) imported into the Philippines shall
avoid compliance with this section.
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 b. Marking of Containers. — Whenever an article is
manner as to indicate to an ultimate purchaser in the excepted under subdivision (3) of subsection "a" of this
Philippines the name of the country of origin of the section from the requirements of marking, the immediate
article. The Commissioner of Customs shall, with the container, if any, of such article, or such other container or
approval of the department head, issue rules and containers of such article as may be prescribed by the
regulations to — Commissioner of Customs with the approval of the
1. Determine the character of words and phrases or department head, shall be marked in such manner as to
abbreviation thereof which shall be acceptable as indicating indicate to an ultimate purchaser in the Philippines the
the country of origin and prescribe any reasonable method name of the country of origin of such article in any official
of marking, whether by printing, stenciling, stamping, language of the Philippines, subject to all provisions of this
branding, labelling or by any other reasonable method, and section, including the same exceptions as are applicable to
a conspicuous place on the article or container where the articles under subdivision (3) of subsection "a".
marking shall appear.
c. Marking Duty for Failure to Mark. — If at the time of
2. Require the addition of any other words or symbols which importation any article (or its container, as provided in
may be appropriate to prevent deception or mistake as to subsection "b" hereof), is not marked in accordance with the
the origin of the article or as to the origin of any other article requirements of this section, there shall be levied, collected
with which such imported article is usually combined and paid upon such article a marking duty of 5 per cent ad
subsequent to importation but before delivery to an ultimate valorem, which shall be deemed to have accrued at the time
purchaser; and of importation, except when such article is exported or
destroyed under customs supervision and prior to the final c. Any proclamation issued by the President under this
liquidation of the corresponding entry. section shall, if he deems it consistent with the interest of
the Philippines, extend to the whole of any foreign country
d. Delivery Withheld Until Marked. — No imported article or may be confined to any subdivision or subdivisions
held in customs custody for inspection, examination or thereof; and the President shall, whenever he deems the
appraisement shall be delivered until such article and/or its public interests require, suspend, revoke, supplement or
containers, whether released or not from customs custody, amend any such proclamation.
shall have been marked in accordance with the d. All articles imported contrary to the provisions of this
requirements of this section and until the amount of duty section shall be forfeited to the Government of the
estimated to be payable under subsection "c" of this section Philippines and shall be liable to be seized, prosecuted and
shall have been deposited. Nothing in this section shall be condemned in like manner and under the same regulations,
construed as excepting any article or its container from the restrictions and provisions as may from time to time be
particular requirements of marking provided for in any established for the recovery, collection, distribution and
provision of law. remission or forfeiture to the government by the tariff and
customs laws. Whenever the provision of this section shall
e. The failure or refusal of the owner or importer to mark the be applicable to importations into the Philippines of articles
articles as herein required within a period of thirty days after wholly or in part the growth or product of any foreign
due notice shall constitute as an act of abandonment of said country, they shall be applicable thereto, whether such
articles and their disposition shall be governed by the articles are imported directly or indirectly.
provisions of this Code relative to abandonment of imported
articles. 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
Sec. 304. Discrimination by Foreign Countries. — subsections "a" and "b" of this section are practiced by any
country; and if and when such discriminatory acts are
a. The President, when he finds that the public interest will disclosed, it shall be the duty of the Commission to bring the
be serves thereby, shall by proclamation specify and matter to the attention of the President, together with
declare new or additional duties in an amount not exceeding recommendations.
one hundred (100) per cent ad valorem upon articles wholly
or in part the growth or product of, or imported in a vessel f. The Secretary of finance shall make such rules and
of, any foreign country whenever he shall find as a fact that regulations as are necessary for the execution of such
such country — proclamation as the President may issue in accordance with
1. Imposes, directly or indirectly, upon the disposition or the provisions of this section.
transportation in transit through or re-exportation from such
country of any article wholly or in part the growth or product PART 3
of the Philippines, any unreasonable charge, exaction, FLEXIBLE TARIFF
regulation or limitation which is not equally enforced upon
the like articles of every foreign country; or
Sec. 401. Flexible Clause. —
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, a. In the interest of national economy, general welfare
tonnage, or port duty, fee, charge, exaction, classification, and/or national security, and subject to the limitations herein
regulation, condition, restriction or prohibition, in such prescribed, the President, upon recommendation of the
manner as to place the commerce of the Philippines at a National Economic and Development Authority (hereinafter
disadvantage compared with the commerce of any foreign referred to as NEDA), is hereby empowered: (1) to increase,
country. reduce or remove existing protective rates of import duty
(including any necessary change in classification). The
b. If at any time the President shall find it to be a fact that existing rates may be increased or decreased to any level,
any foreign country has not only discriminated against the in one or several stages but in no case shall the increased
commerce of the Philippines, as aforesaid, but has, after the rate of import duty be higher than a maximum of one
issuance of a proclamation as authorized in subsection "a" hundred (100) per cent ad valorem; (2) to establish import
of this section, maintained or increased its said quota or to ban imports of any commodity, as may be
discrimination against the commerce of the Philippines, the necessary; and (3) to impose an additional duty on all
President is hereby authorized, if he deems it consistent imports not exceeding ten (10%) per cent ad valorem
with the interests of the Philippines, to issue a further whenever necessary; Provided, That upon periodic
proclamation directing that such product of said country or investigations by the Tariff Commission and
such article imported in its vessels as he shall deem recommendation of the NEDA, the President may cause a
consistent with the public interests, shall be excluded from gradual reduction of protection levels granted in Section
importation into the Philippines. One Hundred and Four of this Code, including those
subsequently granted pursuant to this section.
b. Before any recommendation is submitted to the President subject to the limitations of aforesaid section "a" of Section
by the NEDA pursuant to the provisions of this section, 401.
except in the imposition of an additional duty not exceeding b. The duties and other import restrictions as modified in
ten (10) per cent ad valorem, the Commission shall conduct
subsection "a" above, shall apply to articles which are the
an investigation in the course of which they shall hold public
growth, produce or manufacture of the specific country,
hearings wherein interested parties shall be afforded
whether imported directly or indirectly, with which the
reasonable opportunity to be present, produce evidence
Philippines has entered into a trade agreement: Provided,
and to be heard. The Commission shall also hear the views That the President may suspend the application of any
and recommendations of any government office, agency or concession to articles which are the growth, produce or
instrumentality concerned. The Commission shall submit
manufacture of such country because of acts (including the
their findings and recommendations to the NEDA within
operations of international cartels) or policies which in his
thirty (30) days after the termination of the public hearings.
opinion tend to defeat the purposes set in this section; and
the duties and other import restrictions as negotiated shall
c. The power of the President to increase or decrease rates be in force and effect from and after such time as specified
of import duty within the limits fixed in subsection "a" shall in the Order.
include the authority to modify the form of duty. In modifying
the form of duty, the corresponding ad valorem or specific
c. Nothing in this section shall be construed to give any
equivalents of the duty with respect to imports from the
authority to cancel or reduce in any manner any of the
principal competing foreign country for the most recent
indebtedness of any foreign country to the Philippines or
representative period shall be used as bases.
any claim of the Philippines against any foreign country.
d. The Commissioner of Customs shall regularly furnish the d. Before any trade agreement is concluded with any
Commission a copy of all customs import entries as filed in
foreign government or instrumentality thereof, reasonable
the Bureau of Customs. The Commission or its duly
public notice of the intention to negotiate an agreement with
authorized representatives shall have access to, and the
such government or instrumentality shall be given in order
right to copy all liquidated customs import entries and other
than any interested person may have an opportunity to
documents appended thereto as finally filed in the present his views to the Commission which shall seek
Commission on Audit. information and advice from the Department of Agriculture,
Department of Natural Resources, Department of Trade
e. The NEDA shall promulgate rules and regulations and Industry, Department of Tourism, the Central Bank of
necessary to carry out the provisions of this section. the Philippines, the Department of Foreign Affairs, the
Board of Investments and from such other sources as it may
f. Any Order issued by the President pursuant to the deem appropriate.
provisions of this section shall take effect thirty (3) days after
promulgation, except in the imposition of additional duty not e. (1) In advising the President, as a result of the trade
exceeding ten (10) per cent ad valorem which shall take agreement entered into, the Commission shall determine
effect at the discretion of the President. 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
Sec. 402. Promotion of Foreign Trade. — into account the cost of raw materials, labor, overhead, a
fair return on investment, and the overall efficiency of the
a. For the purpose of expanding foreign markets for industry.
Philippine products as a means of assistance in the
economic development of the country, in overcoming (2) The NEDA shall evaluate the report of the Commission
domestic unemployment, in increasing the purchasing and submit recommendations to the President.
power of the Philippine peso, and in establishing and
maintaining better relations between the Philippines and (3) Upon receipt of the report of the findings and
other countries, the President, is authorized from time to recommendations of the NEDA, the President may
time:chanrobles virtuallawlibr ar y prescribe such adjustments in the rates of import duties,
(1) To enter into trade agreements with foreign withdraw, modify or suspend, in whole or in part, or institute
governments or instrumentalities thereof; and such other import restrictions as the NEDA recommends to
be necessary in order to fully protect domestic industry and
(2) To modify import duties (including any necessary the consumers, subject to the condition that the wholesale
change in classification) and other import restrictions, as are prices of the domestic products concerned shall be reduced
required or appropriate to carry out and promote foreign to, or maintained at, the level recommended by the NEDA
trade with other countries: Provided, however, That in unless for good cause shown, an increase thereof, as
modifying import duties or fixing import quota the recommended by NEDA, is authorized by the
requirements prescribed in subsection "a" of Section 401 President. Should increases be made without such
shall be observed: Provided, further, That any modification authority, the NEDA shall immediately notify the President,
of import duties and any fixing of import quotas made who shall allow the importation of competing products in
pursuant to this agreement on ASEAN Preferential Trading such quantities as to protect the public from the
Arrangements ratified on August 1, 1977 shall not be unauthorized increase in wholesale prices.
f. This section shall not prevent the effectivity of any (a) the administration of, and the fiscal and industrial effects
executive agreement or any future preferential trade of, the tariff and customs laws of this country now in force
agreement with any foreign country. or which may hereafter be enacted;

g. The NEDA and the Commission are authorized to (b) the relation between the rates of duty on raw materials
promulgate such reasonable procedure, rules and and the finished or partly finished products;
regulations as they may deem necessary to execute their
respective functions under this section. (c) the effects of ad valorem and specific duties and of
PART 4 compounds specific and ad valorem duties;
TARIFF COMMISSION (d) all questions relative to the arrangement of schedules
and classification of articles in the several sections of the
tariff law;
Sec. 501. Chief Officials of the Tariff Commission. — The
Officials of the Tariff Commission shall be the Chairman and (e) the tariff relations between the Philippines and foreign
two (2) Member Commissioners to be appointed by the countries, commercial treaties, preferential provisions,
President of the Philippines. economic alliances, the effect of export bounties and
preferential transportation rates;

(f) the volume of importations compared with domestic

production and consumption;
Sec. 502. Qualifications. — No person shall be eligible for
appointment as Chairman and Tariff Commissioners unless (g) conditions, causes and effects relating to competition of
they are natural-born citizens of the Philippines, of good foreign industries with those of the Philippines, including
moral character and proven integrity, and who by dumping and cost of production;
experience and academic training are possessed of
qualifications requisite for developing expert knowledge of
tariff problems. They shall not, during their tenure in office, (h) in general, to investigate the operation of customs and
engage in the practice of any profession, or intervene tariff laws, including their relation to the national revenues,
directly or indirectly in the management or control of any their effect upon the industries and labor of the country, and
private enterprise which may, in any way, be affected by the to submit reports of its investigation as hereinafter provided;
functions of their office nor shall be, directly or indirectly, and
financially interested in any contract with the Government,
or any subdivision or instrumentality thereof. (i) the nature and composition of, and the classification of,
articles according to tariff commodity classification and
Sec. 503. Appointment and Compensation of Officials and heading number for customs revenue and other related
Employees. — All employees of the Commission shall be purposes which shall be furnished to NEDA, Board of
appointed by the Chairman in accordance with the Civil Investments, Central Bank of the Philippines, and Secretary
Service Law except the private secretaries to the Chairman, of Finance.
Commissioners and Executive Director.

The Tariff Commission shall be reorganized in accordance Sec. 506. Assistance to the President and Congress of the
with the requirements of its reorganized functions and Philippines. — In order that the President and the Congress
responsibilities. The Chairman of the Commission, subject may secure information and assistance, it shall be the duty
to the approval of the Director-General of the National of the Commission to —
Economic and Development Authority, shall determine the
new positions-designations and salary scales of the officials (a) Ascertain conversion costs and costs of production in
and employees of the Commission by taking into account the principal growing, producing or manufacturing centers
the degree of responsibilities of each position: Provided, of the Philippines, whenever practicable;
That the Office of Compensation and Position Classification
shall be furnished a copy of the new plantilla of positions (b) Ascertain conversion costs and costs of production in
incorporating the new designations to be automatically the principal growing, producing or manufacturing centers
included in its manual of positions: Provided, further, That of foreign countries of articles imported into the Philippines
the reorganization shall not in any way affect whatever whenever such conversion costs or costs of production are
benefits the officials and employees of the Commission are necessary for comparison with those in the Philippines;
allowed under existing law and/or authority.
(c) Select and describe representative articles imported into
Sec. 504. Official Seal. — The Commission is authorized the Philippines similar to, or comparable with, those locally
to adopt an official seal. produced; select and describearticles of the Philippines
similar to, or comparable with, such imported article; obtain
Sec. 505. Functions of the Commission. — The and file samples of articles so selected whenever advisable;
Commission shall investigate —
(d) Ascertain import costs of such representative articles so Sec. 510. Verified Statements. — The Commission is
selected; authorized to require any importer, grower, producer,
manufacturer or seller to file with the Commission a
(e) Ascertain the grower's, producer's or manufacture's statement, under oath, giving his selling prices in the
selling prices in the principal growing, producing, or Philippines of any article imported, grown, produced,
manufacturing centers in the Philippines, of the articles of fabricated or manufactured by him.
the Philippines, so selected;
Sec. 511. Rules and Regulations of the Commission.
(f) Ascertain all other facts which will show the difference in, — The Commission shall adopt and promulgate such rules
or which affect competition between, articles of the and regulations as may be necessary to carry out the
Philippines and those imported in the principal markets of provisions of this Code.
the Philippines;

(g) Ascertain conversion costs and costs of production Sec. 512. Appropriation. — In addition to its current
including effects of tariff modifications or import restrictions appropriation the amount of Six Hundred Thousand is
on prices in the principal growing, producing or hereby appropriated to carry out the purpose of sections
manufacturing centers in the Philippines, whenever five hundred one and five hundred three of this Code.
practicable; and

(h) Submit annual reports of these to the President of the

Philippines, copy of which shall be furnished to the NEDA, TITLE III
Central Bank of thePhilippines, Department of Finance and EXPORT TARIFF AND PREMIUM DUTY
the Board of Investments.

Sec. 514. Export Products subject to Duty and Rates.

Sec. 507. Reports of the Commission. — The Commission — There shall be levied, assessed and collected an export
shall place at the disposal of the President and any member duty on the gross F.O.B. value at the time of shipment
of the Congress of the Philippines or its member thereof all based on the prevailing rate of exchange, of the following
information at its command; shall make such investigation products in accordance with the schedule specified in the
and report as may be required by the President and the column Export Duty.
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 In addition to the export duties, herein referred to as basic
of all reports made during the year. 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
Sec. 508. Access to Documents and Assistance to the current price of any export product be below the established
Commission. — The Commission or its duly authorized base price, then only the basic rate shall be applied:
representative shall have access to any document, paper or Provided, further, That, initially, the base price upon which
record, pertinent to the subject matter under investigation, the premium duty shall be levied eighty per centum (80%)
in the possession of any person, firm, co-partnership, of the F.O.B. value of exports established by the Bureau of
corporation or association engaged in the production, Customs for February 1974. The National Economic and
importation or distribution of any article under investigation, Development Authority shall, from time to time, review and
and shall have the power to summon witnesses, take establish such base prices taking into account, among
testimony, administer oaths, and to issue subpoena duces others, the cost conditions in various industries.
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 EXPORT PRODUCTS EXPORT DUTY 1
shall cooperate fully with the Commission.

Sec. 509. Sworn Statements. — The Commission may

order the taking of sworn statements at any stage of any Wood Products
proceeding or investigation before it. Such sworn 1. Logs 20%
statements may be taken before any person having power 2. Lumber
to administer oaths. 3. Veneer
4. Plywood
Mineral Products to which the Philippines is a signatory; (4) the preferential
1. Metallic ores and concentrates treatment granted to our export products by foreign
a) Copper governments; and (5) the need to meet domestic
b) Iron consumption requirements.
c) Chromite
2. Gold

3. Non-Metallic Sec. 516. Assessment and Collection of the Duty. — The

a) Clinker, cement duty shall be assessed by the Bureau of Customs and
b) Portland cement collected by the Bureau thru authorized agent banks of the
Central Bank not later than 30 days from the date of
shipment.
4. Mineral fuel
a) Bunker fuel oil
b) Petroleum pitch
5. Silver

Sec. 517. Deficiency and Surcharges. — In case the duty

Plant and Vegetable Products
is not fully paid at the time specified hereof, the deficiency
1. Abaca (stripped hemp, manufactured)
shall be increased by an amount equivalent to twenty-five
2. Banana
per centum (25%) thereof, the total to be collected in the
3. Coconut
same manner as the duty. Where the deficiency is the result
of false or fraudulent statements or representations
a) Copra attributable to the exporter, the surcharge shall be fifty per
b) Coconut oil centum (50%).
c) Copra meal/cake
d) Dessicated coconut

4. Pineapple
a) Pineapple sliced or crushed
b) Pineapple juice or juice concentrate Sec. 518. Allotment and Disposition of the Proceeds.
— The proceeds of this duty shall accrue to the General
5. Sugar and Sugar Products
Fund and shall be allotted for development projects; except
a) Centrifugal sugar
that one per centum (1%) annually shall be set aside for the
b) Molasses
Export Assistance Fund to be administered by the Board of
6. Tobacco Investments and expended in accordance with the General
a) Tobacco leaf Appropriations Act to finance export promotion projects;
b) Scrap tobacco however, thirty per cent of this 1% shall accrue to the
Bureau of Customs which shall constitute as its intelligence
Animal Products fund to be disbursed by the Commissioner of Customs in
1. Shrimp and Prawns the implementation of this Title, such as but not limited to
For purposes of computing the duty, the cost of packaging the purchase of equipment, hiring of personnel if necessary
and crating materials shall be deductible from the export and for such other operational expenses in the promotion of
value, provided such materials are domestically the export industry.
manufactured using a substantial portion of local raw
materials, as determined by the Board of Investments.

Sec. 519. Rules and Regulations. — The Commissioner of

Customs shall promulgate the rules and regulations
Sec. 515. Flexible Clause. — The President, upon necessary for the implementation of this Title, subject to the
recommendation of the National Economic and approval of the Secretary of Finance.
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