NARRATIVE REPORT

TARRIF AND TAXES ON IMPORTED GOODS

______________________________

Presented to

Dr. Eden Babasa

University of Batangas

______________________________

In partial fulfillment

of the requirements for the subject

MBBA510- INTERNATIONAL BUSINESS

Presented by:

ABUTAR, REY DEXTER

BAGSIT, ALYSSA MARIE

DELA ROSA, ALLYSSA ASHLEY

GARCIA, DARLENE JANICA F.

MARASIGAN, LAIDEN L.

Masters in Business Management

Major in Business Administration

December 15, 2018

INTRODUCTION

Taxation is the inherent power of the sovereign, exercised through the

legislature, to impose burdens upon subjects and objects within its jurisdiction for
the purpose of raising revenues to carry out the legitimate objects of government
on the other hand tariffs is a form of dues on imports. Money collected under a
tariff is called a duty or customs duty. Tariffs are used by a government in able to
generate revenue and at the same time protect domestic industries from
competition brought by the imported goods. Neither projects nor government
activities would be done without funds. Simply the government itself won’t
function without any finances hence it is a common knowledge that tax is the life
blood of the state.

Looking back we would notice that even in the colonization era tax
imposition exist and from the very beginning up to now the government hold on
to it. As the time pass by from generation to generation of leaders included
taxation as one of their priority. Every set of leaders are keep on looking for
alternative ways to increase taxes collection, it includes imposition of dues from
different kind of goods that have a large market share but is not considered as
necessity such as cosmetic products and sweetened beverages but it would
collection within our country is not enough to fund the increasing demand of the
public hence as the market goes global this products imported goods are not
exempted though as the time passed by it changes depending on the
circumstances and bilateral agreements.

In the Philippine Government system the two important department or

agencies when it comes to taxation is the Bureau of Internal Revenue and
Bureau of Custom they are considered as the premier revenue collecting bodies.
BIR is responsible for tax collection within the country while the BOC is
responsible for the tax collection from imported goods known as tariffs.

DISCUSSION

The Bureau of Customs (abbreviated BoC or BOC; Filipino: Kawanihan ng

Adwana) is a Philippine government agency under the Department of Finance. It
has the following duties and functions under the RA 10863 or “Customs
Modernization and Tariff Act (CMTA)”:

(a) Assessment and collection of customs revenues from imported goods and
other dues, fees, charges, fines and penalties accruing under the CMTA;

(b) Simplification and harmonization of customs procedures to facilitate

movement of goods in international trade;

(c) Border control to prevent entry of smuggled goods;

(d) Prevention and suppression of smuggling and other customs fraud;

(e) Facilitation and security of international trade and commerce through an

informed compliance program;

(f) Supervision and control over the entrance and clearance of vessels and
aircraft engaged in foreign commerce;

(g) Supervision and control over the handling of foreign mails arriving in the
Philippines for the purpose of collecting revenues and preventing the entry of
contraband;
(h) Supervision and control on all import and export cargoes, landed or stored in
piers, airports, terminal facilities, including container yards and freight stations for
the protection of government revenue and prevention of entry of contraband;

(i) Conduct a compensation study with the end view of developing and
recommending to the President a competitive compensation and remuneration
system to attract and retain highly qualified personnel, while ensuring that the
Bureau remains financially sound and sustainable;

(j) Exercise of exclusive original jurisdiction over forfeiture cases under the
CMTA; and

(k) Enforcement of the CMTA and all other laws, rules and regulations related to
customs administration.

Customs Districts

The Bureau of Customs has 17 Customs Districts (as enumerated below). Each
Customs District is headed and supervised by a District Collector, assisted by as
many Deputy District Collectors as may be necessary. A Customs District has a
designated “principal port of entry”. Generally, a principal port of entry has its
“sub-port(s) of entry”.

Customs District Principal Port of Entry

Customs District I Port of San Fernando in San Fernando, La Union

Customs District II-A Port of Manila (POM) in Port Area, Manila

Manila International Container Port (MICP) in Tondo,

Customs District II-B
Manila
Customs District III Ninoy Aquino International Airport (NAIA) in Pasay City

Customs District IV Port of Batangas in Batangas City

Customs District V Port of Legazpi in Legazpi City

Customs District VI Port of Iloilo in Iloilo City

Customs District VII Port of Cebu in Cebu City

Customs District VIII Port of Tacloban in Tacloban City

Customs District IX Port Surigao in Surigao City

Customs District X Port of Cagayan De Oro in Cagayan De Oro City

Customs District XI Port of Zamboanga in Zamboanga City

Customs District XII Port of Davao in Davao City

Customs District XIII Port of Subic in Subic, Zambales

Customs District XIV Port of Clark in Clark, Pampanga

Customs District XV Port of Aparri in Aparri, Cagayan

Customs District XVI Port of Limay in Limay, Bataan

Among the ports mentioned above, Batangas port have been considered as the
second largest port in the entire nation holding at almost 75% of tax collection
among imports of goods from international vessel.

Bureau of Customs- Batangas has a 25% share or roughly ¼ of the

overall tariff collection with in the country. It is noted that almost that majority of
tariff payer belongs to motor vehicles and petroleum products. Toyota is the
number one payer which pays around 23 billion for the cars they import in the
country.

Learning Insight

A short visit of our group in the Bureau of Customs-Batangas is a fun yet

learning full experience, we discover a lot and we almost got dizzy on the amount
of money we are talking to. It was very elating to know that the province where
we are living has a vital role in Philippine Economy and Finances, knowing that
the Bureau has a 25 % share in the collection of the whole BOC. Though we
can’t help but wonder because according to Mr. Ryan Piol their collection this
year and probably in the succeeding year would decrease due to the bilateral
agreements that our country is joining. As of this moment majority of the ASEAN
countries has a Zero rated tariff when it comes to the importation of their product
which is associated in the globalization of markets. Foreign barriers when it
comes to market and economic integration are slowly desolated.
 We all know that our government is always at the best interest of the
public; they won’t enter or sign any agreement unless it would benefit the
nation.The billions of peso that BOC-Batangas are collecting are enough proof
that Philippine market has a lot of potentials when it comes to the eye of foreign
investors but we have to be cautious in embracing globalization. Market without
border may project a lot of benefits but we should not forget our very own local
economy and the local business industry.