UNIVERSITY OF THE VISAYAS GULLAS LAW SCHOOL TAXATION TARIFF AND CUSTOMS CODE (PD NO.

. 1464, AS AMENDED) A. Scope of the laws on Tariff and Custom The laws on Tariff and Customs applies only after importation has begun but before importation is terminated. Importation begins when the conveying vessel or aircraft enters the jurisdiction of the Philippines with intention to unload therein. Intent being a state of mind! is rarely susceptible of direct proof but can be inferred from the facts and circumstances "#eeder Int. $ine! et al.! v. Court of Appeals! %&' SC(A )*+ "%&&%,, Importation is deemed terminated upon payment of the duties! ta-es and other charges due upon the articles! or secured to be paid! at the port of entry and the legal permits for withdrawal shall have been granted.

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The Agency of /overnment tas0ed to enforce Tariff and Custom laws .ureau of Customs is charge with the implementation of Tariff and Customs laws. It is the function of the said office to %. 1a0e assessment and collection of the lawful revenues from imported articles and all other due! fees! charges! fines and penalties accruing under the tariff and customs laws. +. 3. *. 4. Prevent and suppress smuggling and other frauds upon the customs2 Supervise and control over the entrance and clearance of vessels and aircraft engaged in foreign commerce2 Enforce tariff and customs laws and all other laws! rules and regulations relating to the tariff and customs administration2 Supervise and control the handling of foreign mails arriving in the Philippines! for the purpose of the collection of the lawful duty on the dutiable articles thus imported and the prevention of smuggling through the medium of such mails2 Supervise and control all import and export cargoes ! landed or stored in piers! airports! terminal facilities! including container yards and freight stations for the protection of government revenue2 6-ercise exclusive original jurisdiction over seizure and forfeiture cases under the tariff and customs laws "Section 57+,

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'. C. Tariff and Customs 8uties -

Tariff is defined as Customs duties! toll or tribute payable upon merchandise to the general government or rate of customs or list of articles liable to duties Customs duties is defined as the tax on the importation and exportation of commodities. It is also defined as the tariff or ta- assessed upon merchandise from! or e-ported to! a foreign country "/arcia vs. 6-ecutive Secretary! et al.! +%% SC(A ++',

.oth terms a synonymous with one another because they refer to the ta-es imposed on imported or e-ported products or articles and merchandise

8. 6-emptions from Tariff and Customs duties 9nder Section %74 of the Customs Code! the provisions of general and special laws, including those granting franchises, to the contrary notwithstanding, there shall be no exemptions; whatsoever from the payment of customs duties All importations by the government for its own use or that of its subordinate branches or instrumentalities or owned or controlled by the government shall be subject to the duties! ta-es! fees and other charges provided for in the Tariff and Customs Code as e-pressly stated in Section %+74 of the Customs Code 6-emption is available if e-pressly e-empted under a special law including those granted to international institutions! associations or organi:ation entitled to e-emption pursuant to agreement or special laws If the e-emptions is e-pressly provided under the Tariff and Customs Code as e-pressly provided under Section %74 in relation to Section %+74 of the Customs Code 6-emptions granted to government agencies! instrumentalities or government;owned or controlled corporation with e-isting contracts! commitments! agreements! or obligations "re<uiring such e-emptions, with foreign countries Those that may be granted by the President of the Philippines upon recommendation of the =ational 6conomic 8evelopment Authority in the interest of national economic development as provided under in the last paragraph of Section %74 of the Customs Code

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The presumption of law with respect to who is to be made liable of the duties for importations All articles imported into the Philippines shall be held to be the property of %. +. 3. *. The person to whom the same are consigned The holder of the bill of lading duly endorsed by the consignee therein named or if consigned to order! by the consignor! shall be deemed the consignee thereof The underwriters of the abandoned articles saved from a wrec0 at sea! along a cost or in any area of the Philippines maybe regarded as the consignees "Section %+73,

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Authority of the .ureau to hold release of imported articles of consignees with unpaid accounts 6-cept the government! any importer who has an outstanding and demandable account with the .ureau! the latter can hold the delivery of any article imported or consigned to such importer u !" "!#$%& !' (&$)u*& +$,&" #! #-& %!"($+"&& ."/ 0.1 (&22 (u%- $0 !*#.#$!" !* ."1 !' $#( !*#$!" #! %!,&* #-& !u#(#."/$"+ .%%!u"# !' (u%- $0 !*#&*! unless subse<uently authori:ed by the Commissioner of Customs "Section %47) of the Customs Code, The release of sei:ed goods can be obtained by the parties concerned by paying or settling the consignee account with the .ureau provided that it be done prior to the sale.

/. Contraband >. Smuggling This is the act of any person who shall fraudulently import any article contrary to law or assist in so doing or receive! conceal! buy! sell! facilitates! transportation! concealment or sale of such article 0nowing its illegal importation "Section 357%,. This also includes e-portation made in a manner contrary to law "Section 34%*,. These are the articles of prohibited importation or e-portation "Section 3%4* of the Customs Code,

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?inds of Special Customs 8uties Du0 $"+ Du#1 are duties imposed on foreign articles being imported into! or sold or is li0ely to be sold in the Philippines at a price less than it normal value " is the comparable price in the ordinary course for the like article when destined for domestic consumption in the exporting country of production or manufacture @Section + "e, 8epartment of #inance Arder =o. %47;&4,, the importation or sale of which might injure an industry producing li0e goods in the Philippines C!u"#&*,.$2$"+ Du#1 are additional customs duties imposed on foreign articles directly or indirectly granted any bounty " Cash award paid to an exporter or manufacturer ,! subsidy "Fiscal incentives not in the form of direct cash award to encourage manufacturers or exporters, or subvention "Any assistance other than a bounty or subsidy given by the government for the manufacturer and/or exportation of an article, upon its production! manufacture or e-portation! in the country of origin andBor e-portation as li0ely to injure an established industry or prevent or considerably retard the establishment or industry in the Philippines. Provided! the injury criterion to a domestic industry shall be applied only in the case of imports from countries which adhere to the /ATT Code on subsidies and countervailing duties. The duty shall be e<uivalent to the bounty! subsidy or subvention "Section 37+,. This is e-ercised by the Secretary of #inance. M.*3$"+ Du#1 are additional customs duties imposed on foreign articles " or its container if the article itself cannot be mar0ed, not marked in any official language of the Philippines in a conspicuous place as legibly! indelibly and permanently in such manner as to indicate to an ultimate purchaser in the Philippines the name of the country of origin "Section 373,. D$(%*$0$".#!*1 Du#1 are new or additional burdened imposed upon articles wholly or in part of the growth or product of! or imported in a vessel of! any foreign country which imposes directly or indirectly upon the disposition or transportation in transit through or e-portation from such country of any article wholly or in part the growth of product in the Philippines any unreasonable charge, exaction, regulation or limitation which is not equally enforced upon like articles of every foreign country or discriminates against the commerce of the hilippines directly or indirectly by law or administrative regulation or practice! by or in respect to any customs! tonnage! or port duty! fee charge e-action! classification! regulation! condition! restriction or prohibition in such a manner as to place the commerce of the Philippines at a disadvantage compared with the commerce of any foreign country. The duty shall not e-ceed %77C ad valorem of the article "Section 37*,.