PRINCIPLES OF TARIFF

Tariff 1

Laws relating to Tariff

Presidential Decree No. 1464 This law has amended several

provision of Presidential Decree No. 34.

Codified all Tariff and Customs Code into one single code.

Presented an amendment thereto which is now the present Tariff and Customs Code of the Philippines (Tariff and Customs Code of 1978).

Presidential Decree No. 1464 This Decree was issued to infuse

flexibility. Keep pace with the changing needs and

demands of the trade and commerce. Strengthen the punitive force of the Tariff

and Customs Code against smuggling and other forms of customs fraud

It took effect on April 01, 1978.

Executive Order No. 688

Another revision of the tariff system took place when the Philippines joined the Customs Cooperation Council (CCC) prompted by then President Marcos.

Issued on May 9, 1981 In accordance to the Flexible Tariff

powers under Section 401 of P.D. 1464, which ordered the alignment of the Philippine Tariff Nomenclature and the General Rules of Classification with that of

Executive Order No. 688

Customs Cooperation Council Nomenclature. CCCN have been the tariff structure of the Philippines ever since but presently by the GATT – General Agreement on Tariffs and Trade.

The creation of EO 688 is to order the Tariff Commission to draft the “RULES of Classification and to align the Philippine Tariff Nomenclature in accordance with the CCCN”. Did not provide for any amendment to PD 1464 known as the Tariff and Customs Code of the Philippines.

Executive Order 127

During the reign of then Pres. Aquino while she was exercising both executive & legislative power under the revolutionary government and by the power vested in her by the Freedom of Constitution, E.O 127 was issued in January 30, 1987.

• Ordered the re-organization of the then Ministry of Finance(now Department of Finance) and its attached agencies (known as the Bureau of Customs and the Bureau of Internal Revenue) to be more capable and

Executive Order 127

responsive organizationally and functionally in its primary mandate of judiciously generating and efficiently managing the financial resources of the Government.

By the enactment of this order, the Bureau of Customs was strengthen by the addition of Two (2) assistant commissioners that divided the Bureau of Customs into four (4) groups which are headed by Four (4) Deputy Commissioners of Customs.

Executive Order 156

Issued as an amendment to Sec. 201 of P.D. 1464 changing the basis of the dutiable value from Home Consumption Value (HCV) to Fair Market Value

- Home Consumption Value - HCV is the wholesale price in the domestic market of the country of manufacture or export on the date of exportation of the same.

Executive Order 156

-Fair Market Value -Probable price at which a willing buyer will buy from a willing seller when

(1) both are unrelated, (2) know the relevant facts, (3) neither is under any compulsion to buy

or sell, and (4) all rights and benefit inherent in (or

attributable to) the item must have been included in the transfer.

Republic Act 7650

This act repealed Section 1404 of the P.D. 1464.

Abolished the office of a Customs Appraiser but incorporated the separate functions of a Customs Appraiser and the Customs Examiner into one Customs Officer tasked to inspect and appraise imported articles, now the present Section 1403.

Republic Act 7650

Also amended Section 1401 of P.D. 1464 on conditions for Examination of Imported articles.

Approved into law on April 6, 1993 during the time of former Pres. Fidel Ramos.

Republic Act 7651

It was passed into law two (2) months after the enactment of R.A. 7650.

Introduced amendments to P.D. 1464, which revitalized and strengthened the Bureau of Customs in its fight against technical smuggling and other customs fraud.

Defined clearly those imported articles deemed abandoned in favor of the government and its manner of disposition.

Republic Act 7651

Rules on undervaluation, misclassification and misdeclaration.

Issuance of warrant of seizure and its appeal process

The provision on the issuance and suspension/revocation of license for customs brokers.

Signed into law on June 04, 1993 by then Pres. Ramos.

Republic Act 9135

New tariff measure was passed by the eleventh congress and signed into law by Pres. Gloria Macapagal Aroyo on April 27, 2001, and took effect on June 02, 2001.

Relative to the principles incorporated by the creation of R.A. 8181, the legislature now authorizes the shift from the interim valuation of

Republic Act 9135

Export Value to the us of Transaction Value as mandated by the WTO valuation agreement where the Philippines was committed to implement way back January 01, 2000.

The legislature clarified and carefully structured the Transaction Value, which is the price actually PAID OR PAYABLE for the goods when sold for export to the Philippines plus adjustments as provided for under the law.

Republic Act 9135

Applies additional “safety measures” against undervaluation and other fraud by the introduction of force acquisition by the Bureau of Customs against gross undervalued goods.

Introduces the dual mandatory requirements of “Record Keeping”, and the “Post Entry Audit System” which objective is to determine whether or not the importer declared the correct Transaction Value of his imported articles.

Republic Act No. 9280

Known as the Customs Brokers Act of 2004

It professionalizes the practice of customs broker profession and corporations from engaging in the practice of customs broker profession.

It expressly repealed Section 3401 to 3409 of P.D. 1464 as amended (Tariff and Customs Code of the Philippines

Republic Act No. 9280

SEC. 3401. Qualifications of Applicants for Customs Broker's Certificate. - All applicants for customs broker's certificates shall pass a written examination for the purpose. Applicants for admission to the said examination shall have the following qualifications:

(a) At least 21 years of age;(b) A citizen of the Philippines;

Republic Act No. 9280

(c) Of good moral character and;(d)Has completed at least four -

year collegiate course, where he has creditably taken at least eighteen (18) academic units in tariff and customs and/or taxation, and applicant may be allowed to take the examination provided that for every deficiency of three (3)academic units in tariff and customs and/or taxation shall be substituted by at least three (3)months

Republic Act No. 9280

of actual experience in customs brokerage and/or customs and tariff matters: Provided, That said experience shall be duty certified by the employer or employers of the applicant. No corporation, association or partnership shall engage in the customs brokerage business unless at least two (2) of the officers of such corporation

Republic Act No. 9280

or association, or at least two (2) ofthe members of such partnership have such certificate.No certificate as customs broker shall be granted to any person who has been convicted ofa crime involving moral turpitude