Sec.1600-Sec.1611 & Sec.800 (Outlined)

TITLE XVI
TARIFF ADMINISTRATION AMD POLICY
CHAPTER I
TARIFF COMMISSION
SEC. 1600:
 Officials of the Tariff Commission consist of a Chairperson and two
Commissioners.
 Appointed by the President of the Philippines.
 Chairperson and Commissioners must be natural-born citizens of the Philippines,
of good moral character and proven integrity, and possess necessary
qualifications for expert knowledge of tariff and trade related matters.
 Chairperson and Commissioners are prohibited from engaging in any profession
or directly or indirectly controlling private enterprises affected by their office, and
not financially interested in government contracts.
SEC. 1601:
 Employees of the Commission are appointed by the Chairperson in accordance
with the Civil Service Law, except for private secretaries to the offices of the
Chairperson, Commissioners, and Executive Director.
 Compensation of officials and employees is not specified.
SEC. 1602:
 The Commission is authorized to adopt an official seal.
SEC. 1603:
 Functions of the Commission include:
 Adjudicating cases on the application of trade remedies against imports.

 Studying the impact of tariff policies and programs on national
competitiveness and consumer welfare.
 Administering the Philippine tariff schedules and tariff nomenclatures.
 Issuing advance rulings on tariff classification of imported goods and
rendering rulings on disputes over tariff classification of goods, except in
cases involving goods on which the Commission has provided advance
ruling on tariff classification.
 Providing the President and Congress with independent analysis,
information, and technical support on matters related to tariff and non-tariff
measures affecting Philippine industries and exports for policy guidance.
 Analyzing the nature and composition, and classification of goods
according to tariff commodity classification and heading number for
customs and other related purposes, and furnishing this information to
NEDA, DTI, DA, DOF, DENR, and BSP.
 Reviewing trade agreements for negotiation and those entered into by the
Philippines, and making recommendations, if necessary, on the
consistency of the terms of the agreements with national policy objectives.
 Conducting public consultations and public hearings pursuant to its
functions.
 Deputizing or delegating to appropriate government agencies its function
of rendering rulings on disputes over tariff classification of goods, until the
plantilla positions necessary for undertaking such function have been
approved and filled-up. This delegation of function cannot extend beyond
three years from the effectivity of this Act.
SEC. 1604:
 The Commission is required to provide the President and any member of
Congress in the Philippines with all information it has.
 The Commission must conduct investigations and submit reports as requested
by the President and Congress.
 The Commission is also required to submit an annual report to the President and
Congress on the first Monday of December each year, including a statement of
methods adopted and a summary of all reports made during the year.
SEC. 1605:
 The Commission or its authorized representative is granted access to any
document, paper or record related to the subject matter being investigated.
 The Commission has the power to summon witnesses, take testimony,
administer oaths, and issue subpoenas duces tecum, requiring the production of
books, papers, or documents relating to the matter under investigation.
 The Commission can request the views, recommendations, and assistance of
any government office, agency, or instrumentality that is expected to cooperate
fully with the Commission.
SEC. 1606:
 The Commission is authorized to order the taking of sworn statements at any
stage of any proceeding or investigation before it.
 The sworn statements must be made before a person duly authorized to
administer oaths.
 The Commission is also authorized to require any importer, grower, producer,
manufacturer or seller to file with the Commission a statement, under oath, giving
the selling prices in the Philippines of goods imported, grown, produced,
fabricated or manufactured by such person.
SEC. 1607:
 The Commission is authorized to promulgate and adopt rules and regulations as
necessary to carry out the provisions of this Act.
CHAPTER 2
FLEXIBLE TARIFF
SEC. 1608 - Flexible Clause
 The President, with the recommendation of NEDA, can do the following:
 Increase, reduce, or remove existing import duty rates, including changes
in classification
 Establish import quotas or ban imports of any commodity
 Impose an additional duty on all imports not exceeding 10% ad valorem
 The Commission shall conduct an investigation and hold public hearings before
any recommendation is submitted to the President.
 The President can modify the form of duty and can exercise the power only when
Congress is not in session.
 Any order issued by the President pursuant to this section shall take effect 30
days after promulgation, except for the imposition of additional duty not
exceeding 10% ad valorem.
 The power delegated to the President can be withdrawn or terminated by
Congress through a joint resolution.
 NEDA shall promulgate rules and regulations to carry out the provisions of this
section.
SEC. 1609 - Promotion of Foreign Trade
 The President can enter into trade agreements with foreign governments or
instrumentalities thereof and modify import duties, including any necessary
change in classification, and other import restrictions as are required or
appropriate to promote foreign trade.
 The requirements prescribed in subsection (a) of Section 1608 of this Act shall
be observed when modifying import duties or fixing import quotas.
 Duties and other import restrictions as modified in this section shall apply to
goods which are the growth, produce, or manufacture of the specific country with
which the Philippines has entered into a trade agreement.
 The President may suspend the application of any concession to goods that tend
to defeat the purposes set in this section, including the operations of international
cartels.
 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.
 The Commission shall seek information and advice from DTI, DA, DOF, DENR,
DFA, and BSP, and from other sources deemed appropriate.
 The President can prescribe adjustments in the rates of import duties, withdraw,
modify, or suspend in whole or in part any concession under any trade
agreement, establish import quota, or institute other import restrictions as
recommended by NEDA.
CHAPTER 3
TARIFF NOMENCLATURE AND RATE OF DUTY
SEC. 1610. General Rules for the Interpretation (GRI):

 Classification of goods and tariff nomenclature governed by principles outlined in
this section.
 Titles of sections, chapters, and subchapters for easy reference only.
 Classification determined according to terms of headings and relative
section/chapter notes.
 Incomplete or unfinished goods with essential character of complete or finished
goods included in heading reference.
 Reference to material or substance includes mixtures or combinations with other
materials or substances.
 Prima facie classifiable goods under two or more headings classified by most
specific description.
 Mixtures, composite goods, and sets classified by essential character if not
classifiable by most specific description.
 Goods not classifiable by above rules classified under heading appropriate to
goods most akin.
 Camera cases, musical instrument cases, etc., suitable for long-term use and
presented with goods classified with those goods.
 Packing materials and containers presented with goods classified with goods if
normally used for packing, not suitable for repetitive use.
 Classification of goods in subheadings determined according to terms of
subheadings and related notes.
 Tariff nomenclature and rates of import duty provided in Tariff and Customs Code
of the Philippines of 1978 still apply and supplement this Act.
 Maximum rate of duty shall not exceed 100% ad valorem.
 Rates of duty subject to periodic investigation by Tariff Commission and may be
revised by President upon NEDA recommendation.
 Applies to all products of foreign countries not discriminating against Philippine
export products.
 Additional 100% duty levied on products of foreign countries discriminating
against Philippine export products.
SEC. 1611. Tariff Nomenclature and Rates of Import Duty:

 Tariff nomenclature and rates of import duty provided in Tariff and Customs Code
of the Philippines of 1978 still apply and supplement this Act.
 Maximum rate of duty shall not exceed 100% ad valorem.
 Rates of duty subject to periodic investigation by Tariff Commission and may be
revised by President upon NEDA recommendation.
 Applies to all products of foreign countries not discriminating against Philippine
export products.
 Additional 100% duty levied on products of foreign countries discriminating
against Philippine export products.
TITLE VIII
TAX AND DUTY DEFERMENT, PREFERENCE AND EXEMPTION
CHAPTER 1
CONDITIONALLY TAX AND/OR DUTY-EXEMPT IMPORTATION
SEC. 800: Conditionally Tax and/or Duty-Exempt Importation

 Section 800 of the Customs Modernization and Tariff Act (CMTA) prescribes the
conditions under which certain goods are exempted from payment of import duties.
 Compliance with the regulations set by the Commissioner, with the approval of the
Secretary of Finance, is necessary for exemption.
 Goods used for purposes other than intended or not previously paid with the applicable
duty, tax, or charge will be subject to forfeiture and deemed fraudulent practice against
customs laws.
 The President may suspend, disallow, or withdraw the conditionally free importation
under this section based on the recommendation of the Secretary of Finance.
 Goods exempted from import duties are:
a) Aquatic products caught or gathered by Philippine registered fishing vessels and

imported in such vessels or attached crafts, provided they were not landed in foreign
territory, or if landed, only for transshipment without advancement in condition.
b) Equipment for use in the salvage of vessels or aircraft not available locally, upon
identification and security of 100% of the duties, taxes, and other charges, conditioned
for the exportation or payment of corresponding duties, taxes, and other charges within
six months. The Bureau may extend the time for a maximum of another six months.
c) Cost of repairs, excluding the value of the goods used, made in foreign countries upon
vessels or aircraft documented, registered, or licensed in the Philippines with satisfactory
proof that adequate facilities for such repairs are not provided in the country, or that the
vessels or aircraft were compelled to put into a foreign port to make repairs because of
stress of weather or other casualty.
d) Goods brought into the Philippines for repair, processing, or reconditioning to be re-
exported, provided with a security of 100% of the duties, taxes, and other charges,
conditioned for the exportation or payment of the corresponding duties, taxes, and other
charges within six months from the date of acceptance of the goods declaration.
e) Medals, badges, cups, and other small goods bestowed as trophies or prizes, or those
received or accepted as an honorary distinction.
f) Personal and household effects belonging to returning residents, including household
appliances, jewelry, precious stones, and other goods of luxury formally declared and
listed before departure and identified under oath before the District Collector when
exported from the Philippines by such residents upon their departure or during their stay
abroad. Personal and household effects, including wearing apparel, goods of personal
adornment, toilet goods, instruments related to one's profession, and similar items,
excluding luxury items, vehicles, watercraft, aircraft, and animals purchased in foreign
countries by Philippine residents, necessary, appropriate, and normally used for their
comfort and convenience during their stay abroad, accompanying them on their return or
arriving within 60 days after their return, will be exempted from tax and duty.
 Returning residents refer to nationals who stayed abroad for at least six months.
 Personal and household effects must not be in commercial quantities, intended for sale
or hire, and limited to the FCA or FOB value.
 The threshold value for tax and duty exemption shall be adjusted every three years
using the Consumer Price Index published by the Secretary of Finance.

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Sec.1600-Sec.1611 & Sec.800 (Outlined)

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TITLE XVI

TARIFF ADMINISTRATION AMD POLICY

 Adjudicating cases on the application of trade remedies against imports.

TARIFF NOMENCLATURE AND RATE OF DUTY

SEC. 1610. General Rules for the Interpretation (GRI):

SEC. 1611. Tariff Nomenclature and Rates of Import Duty:

TAX AND DUTY DEFERMENT, PREFERENCE AND EXEMPTION

CONDITIONALLY TAX AND/OR DUTY-EXEMPT IMPORTATION

SEC. 800: Conditionally Tax and/or Duty-Exempt Importation

 Goods exempted from import duties are:

a) Aquatic products caught or gathered by Philippine registered fishing vessels and

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