Beruflich Dokumente
Kultur Dokumente
1937)
CONCEPT
What is a tariff?
Under the Tariff & Customs Code, a Tariff may refer to two things:
1. As a book of rates which lists down the different kinds of articles or merchandise along with the
duties imposed on the same;
Section 601. Chief Officials of Bureau of Customs. The Bureau of Customs shall have one chief
and one assistant chief, to be known respectively at the Commissioner (hereinafter known as
the "Commissioner") and Assistant Commissioner of Customs, who shall each receive an annual
compensation in accordance with the rates prescribed by existing laws. The Assistant
Commissioner of Customs shall be appointed by the proper department head.
Sec. 602. Functions of the Bureau. The general duties, powers and jurisdiction of the bureau
shall include:
a. The assessment and collection of the lawful revenues from imported articles and all other
dues, fees, charges, fines and penalties accruing under the tariff and customs laws.
b. The prevention and suppression of smuggling and other frauds upon the customs.
c. The supervision and control over the entrance and clearance of vessels and aircraft engaged in
foreign commerce.
d. The general supervision, control and regulation of vessels engaged in the carrying of
passengers and freight or in towage in coastwise trade and in the bays and rivers of the
Philippines.
f. The exclusion, if the conditions of traffic should at any time so require, of vessels of more than
one hundred and fifty tons from entering, berthing or mooring in the Pasig River.
g. The admeasurement, registration, documenting and licensing of vessels built or owned in the
Philippines, the recording of sales, transfers and encumbrances of such vessels, and the
performance of all the duties pertaining to marine registry.
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h. The inspection of Philippine vessels, and supervision over the safety and sanitation of such
vessels.
i. The enforcement of the lawful quarantine regulations for vessels entering Philippine ports.
j. The enforcement of the tariff and customs laws and all other laws, rules and regulations relating
to the tariff and customs administration.
k. The licensing of marine officers who have qualified in the examination required by law to be
carried on Philippine vessels, the determination of the qualifications of pilots, the regulation of
this service, and the fixing of the fees which they may charge.
l. The supervision and control over the handling of foreign mails arriving in the Philippines, for
the purpose of the collection of the lawful duty on dutiable articles thus imported and the
prevention of smuggling through the medium of such mails.
Sec. 603. Territorial Jurisdiction. For the due and effective exercise of the powers conferred by law
and to the extent requisite therefor, said bureau shall have the right of supervision and police authority
over all seas within the jurisdiction of the Philippines and over all coasts, ports, airports, harbors, bays,
rivers and inland waters navigable from the sea.
When a vessel becomes subject to seizure by reason of an act done in Philippine waters in violation of
the tariff and customs laws, a pursuit of such vessel begun within the jurisdictional waters may continue
beyond the maritime zone, and the vessel may be seized on the high sea. Imported articles which may be
subject to seizure for violation of the tariff and customs laws may be pursued in their transportation in the
Philippines by land, water or air and such jurisdiction exerted over it at any place therein as may be
necessary for the due enforcement of the law.
Sec. 604. Jurisdiction over Premises Used for Customs Purposes. The Bureau of Customs shall,
for customs purposes, have exclusive control, direction and management of custom-houses, warehouses,
offices, wharves, and other premises in the respective ports of entry, in all cases without prejudice to the
general police powers of the city or municipality wherein such premises are situated.
Sec. 605. Enforcement of Port Regulation of Bureau of Quarantine. Customs officials and
employees shall cooperate with the quarantine authorities in the enforcement of the port quarantine
regulations promulgated by the Bureau of Quarantine and shall give effect to the same in so far as they
are connected with matters of shipping and navigation.
Sec. 606. Power of the President to Subject Premises to Jurisdiction of Bureau of Customs.
When any public wharf, landing place, street or land, not previously under the jurisdiction of the Bureau of
Customs, in any port of entry, is necessary or desirable for any proper customs purpose, the President of
the Philippines may, by executive order, declare such premises to be under the jurisdiction of the Bureau
of Customs, and thereafter the authority of such Bureau in respect thereto shall be fully effective.
Sec. 607. Annual Report of Commissioner. The annual report of the Commissioner shall, among
other things, contain a compilation of the (a) volume and value of articles imported into the Philippines
and the corresponding customs duties assessed and collected thereon itemized in accordance with the
tariff classification provided in this Code and (b) volume and value of articles exported from the
Philippines for the preceding year.
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Sec. 608. Commissioner to Make Rules and Regulations. The Commissioner shall, subject to the
approval of the department head, make all rules and regulations necessary to enforce the provisions of
this Code.
Section 1201. Articles to Be Imported Only Through Customhouse. All articles imported into the
Philippines, whether subject to duty or not, shall be entered through a customhouse at a port of entry.
It begins when the vessel or aircraft ENTERS the jurisdiction of the Philippines with the intention to
UNLOAD.
It is terminated when:
Importation begins when the carrying vessel or aircraft enters the jurisdiction of the Philippines with
intention to unlade therein.
Importation is deemed terminated upon payment of the duties, taxes and other charges due upon the
articles, or secured to be paid, at a port of entry and the legal permit for withdrawal shall have been
granted, or in case said articles are free of duties, taxes and other charges, until they have legally left the
jurisdiction of the customs.
Classes of Importation:
Dutiable Importation
All articles, when imported from any foreign country into the Philippines, shall be subject to duty upon
each importation, even though previously exported from the Philippines, except as otherwise specifically
provided for in this Code in other laws.
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Prohibited Importations
(a) Dynamite, gunpowder, ammunitions and other explosives, firearms and weapons of war, and parts
thereof, except when authorized by law.
3) or containing any threat to take the life of, or inflict bodily harm upon any person in the
Philippines.
(c) Written or printed articles, negatives or cinematographic film, photographs, engravings, lithographs,
objects, paintings, drawings or other representation of an obscene or immoral character.
(d) Articles, instruments, drugs and substances designed, intended or adapted for producing unlawful
abortion, or any printed matter which advertises or describes or gives directly or indirectly information
where, how, or by whom unlawful abortion is produced.
(e) Roulette wheels, gambling outfits, loaded dice, marked cards, machines, apparatus or mechanical
devices used in gambling or the distribution of money, cigars, cigarettes or other articles when such
distribution is dependent on chance, including jackpot and pinball machines or similar contrivances, or
parts thereof.
(f) Lottery and sweepstakes tickets except those authorized by the Philippine Government,
advertisements thereof, and lists of drawings therein.
(g) Any article manufactured in whole or in part of gold, silver or other precious metals or alloys thereof,
the stamps, brands or marks or which do not indicate the actual fineness of quality of said metals or
alloys.
(h) Any adulterated or misbranded articles of food or any adulterated or misbranded drug in violation of
the provisions of the "Food and Drugs Act".
(I) Marijuana, opium, pipes, coca leaves, heroin or any other narcotics or synthetic drugs which are or
may hereafter be declared habit forming by the President of the Philippines, or any compound,
manufactured salt, derivative, or preparation thereof, except when imported by the Government of the
Philippines or any person duly authorized by the Dangerous Drugs Board, for medicinal purposes only.
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(k) All other articles and parts thereof, the importation of which prohibited by law or rules and regulations
issued by competent authority. (As amended by Presidential Decree No. 34)
Sec. 1207. Jurisdiction of Collector Over Articles of Prohibited Importation. Where articles are
of prohibited importation or subject to importation only upon conditions prescribed by law, it shall
be the duty of the Collector to exercise such jurisdiction in respect thereto as will prevent
importation or otherwise secure compliance with all legal requirements.
2) SECURE compliance with LEGAL requirements (articles that may be subject to conditions)
Sec. 105. Conditionally Free Importations. The following articles shall be exempt from the
payment of import duties upon compliance with the formalities prescribed in, or with the
regulations which shall be promulgated by the Commissioner of Customs with the approval of the
department head: Par. (a) to (aa)
Conditionally-free importations are exempt from payment of import duties provided they comply with
formalities and regulations promulgated by the Commisioner of Customs (with approval of the
Secretary of Finance.)
- If the article imported for free was used, sold, bartered or hired for purposes
other than that which they were intended for without prior payment of the duty,
tax, or other charges which would have been due and payable at time of entry,
then the article will be forfeited for the Government, and the importation shall
- The President may suspend, disallow or completely withdraw, in whole or in part, any of the
conditionally-free imporation.
Section 105 is quite long, so we decided to discuss those important paragraphs of the said section:
Paragraph (f)
- Personal and household effects are duty free to the extent of P2000.
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Paragraph (l)
Imported articles donated to, or for the account of, any duly registered relief organization, not
operated for
profit, for free distribution among the needy, upon certification by the Department of Social
Services and
Development or the Department of Education, Culture and Sports, as the case may be;
-This is the section which prevented most of the Ondoy relief goods from getting to the needy folk.
-Former Pres. GMA however relaxed the rules using an executive order, under the Flexible Tariffs
Clause.
Paragraph (q)
- Take note that the sample medicines brought in the Philippines must not be sold or available
commercially in the Philippines.
Paragraph (s)
- The books must be: economic, technical, vocational, scientific, philosophical, historical, religious or
cultural.
Paragraph (t)
- Articles which were previously exported and returned without having been advanced in value or
improved are exempt, provided they comply with the conditions set by the Code.
- The importations of the Government and its agencies, instrumentalities and its GOCCs which have
contracts with foreign countries are exempt from duties.
SEC. 1205. Importations by the Government. - Except those provided for in Section One
Hundred and Five of this Code, all importations by the Government for its own use or that of
its subordinate branches or instrumentalities, or corporations, agencies or instrumentalities
owned or controlled by the government shall be subject to the duties, taxes, fees and other
charges provided for in this code.
- This section requires a certificate that the importations were used for government purposes to
enable the government to get a refund.
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RATES OF DUTY
A. GENERAL RULES
Sec. 104
There shall be levied, collected and paid upon all imported articles the rates of duty indicated.
Rates of duty shall apply to ALL products whether imported directly or indirectly of all foreign products
which do not discriminate against Philippine products
Rates of duty shall be subject to periodic investigation by Tariff Commission and may be revised by
President upon recommendation of NEDA.
Sec 106
a) Fuel used for Propulsion of Vessels engaged in trade with foreign countries or coastwide trade
-refund or credit not exceeding 99% of duty imposed by law on such fuel
b) Petroleum oils and oils from bituminous minerals, crude oils imported by non electric utilities and then
sold to electric utilities for generation of electric power
-refund or credit not exceeding 50% of duty imposed by law
B. BASIS OF DUTY
METHOD ONE
Transaction value of the price actually paid or payable for the goods when sold for export
to the Philippines.
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METHOD TWO
The DV shall be the transaction value of identical goods sold for export to the Phil and
exported at or about the same time as the goods being valued. Identical goods must be
same commercial level and substantially same quantity as the goods being valued.
METHOD THREE
The DV shall be the transaction value of similar goods sold for export to the Phil and
exported at or about the same time as the goods being valued.
Similar goods must be same commercial level and substantially same quantity as the
goods being valued.
METHOD FOUR
Deductive value.
DV is determined on the basis of sales in the Phil of goods being valued of identical or
similar imported goods less certain expenses resulting from importation and sale of
goods.
Deductive Value is determined by making a deduction from the established price per unit
for the aggregate of the following elements:
a. Commissions OR
b. additions made in connection with profit and general expenses AND
c. transport, insurance and associated costs
d. customs duties and other national taxes
METHOD FIVE
Computed value.
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METHOD SIX
Fallback value.
C. SPECIAL DUTIES
Dumping duties this is a duty imposed on a specific kind or class of foreign article which
is being imported into or sold or is likely to be sold for exportation to or in the Philippines at a
PRICE LESS THAN THE FAIR VALUE the importation or sale of which might injure or retard the
establishment of an industry producing goods in the Philippines.
Marking this is a duty imposed on imported articles or containers which have NOT
BEEN PROPERLY MARKED in any official language of the Philippines as to indicate the name of
the country, planet or origin of the article.
The President may do this in the interest of national economy, general welfare and/or
national security, and upon recommendation of the NEDA.
IMPOSITION OF DUTIES
A. Persons liable
1. consignee
2. holder of bill of lading
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3. if consigned to order, the consignor
4. underwriters of abandoned articles and salvors of articles saved at a wreck
The liability of importer for the duties, taxes, fees and other charges constitute a personal
debt due to the government which may be discharged only upon full payment. It also constitutes a
lien upon the articles imported while articles are in custody or subject to control of government.
B. Declaration
Imported articles must be entered in customhouse at the port of entry within 30 days from date of
discharge by:
Import entries:
Informal entry
- articles of commercial nature intended for sale, barter or hire the Deductible Value is P2,000 or
less
- personal and household effects, not in commercial quantity, for personal use
Formal entry
- may be for immediate consumption, or under irrevocable domestic letter of credit, bank
guarantee or bond for:
Procedure:
1. appraisers shall ascertain, estimate, determine the value or price of articles
-file action within 1 year
2. examiners shall render a report
3. appraisers shall describe all articles on the face of entry in tariff
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-15 days
An appraisal, fully passed upon and approved by Collector, may not be altered or modified except:
1. statement of error
2. request for reappraisal and/or classification if duty assessed amount is lower than the entered
value
D. Assessment of Taxes
Daily record of entries liquidated shall be posted ion the public corridor of customs house
Tentative Liquidation
If to determine the exact amount due some future action is required, liquidation is
deemed tentative as to items affected and shall be subject to future and final adjustment and
settlement within 6 months
Finality of Liquidation
After expiration of 1 year from date of final payment of duties. In the absence of protest,
final and conclusive between the parties unless liquidation was tentative.
A. Extrajudicial
Sec. 1508
When an importer has an outstanding and demandable account with the Bureau of Customs,
Sec 2205
-to make seizure of any vessel, aircraft, cargo, animal or any movable property when the same is
subject to forfeiture or liable for any fine under the tariff and customs law
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ADMINISTRATIVE PROCEEDINGS
(Secs 2301 2316)
1. Collector shall issue a warrant for the detention of the property Cash bond
4. Collector shall make a list and particular description and classification of the seized
property, appraisal based on local wholesale values by
- at least 2 appraising officials
- absent such, 2 competent disinterested citizens
If within 15 days from notification, no owner or agent is found or appears before Collector the property
forfeited to Government and sold at auction
SETTLEMENT
While case is pending, Collector may accept settlement of any seizure case
- upon approval of Commissioner
- payment of fine ( 25% - 80% of the landed cost of the article)
In case of forfeiture, should pay the domestic market value of the seized article
PROTEST
- written protest
- payment before protest is necessary (amount due + docket fee)
WHEN: at the time payment of the amount claimed to be due is made within 15 days thereafter
FORM: filed according to RR; point out the particular decision or ruling grounds used as basis for
the protest
SCOPE: limited to the subject matter of a single adjustment (refers to the entire content of one
liquidation including duties, fees, surcharges and fines) or other independent transaction
-failure to protest will render the action of the Collector final and conclusive except for manifest error
-upon demand of Collector, the importer shall furnish samples of the articles which are the subject of the
protest
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HEARING: 15 days after filing of protest
COMPROMISE
1. Refund (1707-1708)
2. Protest (2308-2312)
3. Abandonment (1801-1803)
A. Refund (1707-08)
When:
Conditions
1. Errors discovered before payment OR discovered within 1 year after the final liquidation
2. Written request and notice from importer OR statement of error certified by the Collector
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How:
If the result of the refund would result to a corresponding refund of the internal revenue taxes on the
same importation, Collector shall certify to Commissioner who shall cause the said excess to be paid,
refunded or credited in favor of the importer.
- written protest
When: at the time payment of the amount claimed to be due is made within 15 days thereafter
Form: filed according to Rules and Regulations point out the particular decision or ruling ground used as
basis for the protest
Scope: limited to the subject matter of a single adjustment (refers to the entire content of one liquidation
including duties, fees, surcharges and fines) or other independent transaction
failure to protest will render the action of the Collector final and conclusive except for manifest error
upon demand of Collector, the importer shall furnish samples of the articles which are the subject of
the protest.
C. Abandonment (1801-03)
1. Owner, importer or consignee expressly signifies in writing to Collector his intention to abandon
2. After due notice, fails to file an entry within 30 days from date of discharge of last package from vessel
or aircraft
3. After filing entry, fails to claim his importation 15 days from date of posting of the notice to claim such
importation
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Effect:
- Custody or charge of such article fails to report within 24 hours from time article deemed abandoned
shall be punished:
According to sec. 3604 (fine: P5000 P50,000 imprisonment: 1 yr 10 yrs perpetual disqualification to
hold public office, vote and participate in election)
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