Download - Tariff 1 Reviewer

8/10/2019 Tariff 1 Reviewer

1/11

Tariff 1

Principles ofTariff


2/11

This law has amended several provisionof 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 CustomsCode of the Philippines (Tariff andCustoms Code of 1978).

This Decree was issued to infuseflexibility.

Keep pace (speed, movement) with thechanging needs and demands of thetrade and commerce.

Strengthen the punitive (corrective)force of the Tariff and Customs Code

against smuggling and other forms ofcustoms fraud (deception, scam, racketor deceit) during that time.

It took effect on April 01, 1978.

Presidential Decree No. 1464


3/11


4/11

During the reign of then Pres. Aquino while shewas exercising both executive & legislativepower under the revolutionary government andby the power vested in her by the Freedom ofConstitution, E.O 127 was issued in January 30,1987.

Ordered the re-organization of the then Ministryof Finance(now Department of Finance) and itsattached agencies (known as the Bureau ofCustoms and the Bureau of Internal Revenue) tobe more capable and responsiveorganizationally and functionally in its primary

mandate of judiciously generating andefficiently managing the financial resources ofthe Government.

By the enactment of this order, the Bureau ofCustoms was strengthen by the addition of Two

(2) assistant commissioners that divided theBureau of Customs into four (4) groups whichare headed by Four (4) Deputy Commissionersof Customs.

Executive Order 127


5/11

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

- Home Consumption Value - HCV is the wholesaleprice in the domestic market of the country of

manufacture or export on the date of exportationof the same.

-Fair Market Value -Probable price at which awilling buyerwill buyfrom a willing sellerwhen

(1) both are unrelated,(2) know the relevantfacts,

(3) neither is under any compulsion to buy or sell,and(4) all rightsand benefit inherent in (or attributable

to) the item must have been included inthe transfer.

Executive Order 156
http://www.businessdictionary.com/definition/buyer.htmlhttp://www.businessdictionary.com/definition/buy.htmlhttp://www.businessdictionary.com/definition/labor-rate-price-variance.htmlhttp://www.businessdictionary.com/definition/seller.htmlhttp://www.businessdictionary.com/definition/buyer.htmlhttp://www.businessdictionary.com/definition/buy.htmlhttp://www.businessdictionary.com/definition/seller.htmlhttp://www.businessdictionary.com/definition/relevant.htmlhttp://www.businessdictionary.com/definition/fact.htmlhttp://www.businessdictionary.com/definition/sell.htmlhttp://www.businessdictionary.com/definition/right.htmlhttp://www.businessdictionary.com/definition/benefit.htmlhttp://www.businessdictionary.com/definition/inherent.htmlhttp://www.businessdictionary.com/definition/transfer.htmlhttp://www.businessdictionary.com/definition/transfer.htmlhttp://www.businessdictionary.com/definition/transfer.htmlhttp://www.businessdictionary.com/definition/inherent.htmlhttp://www.businessdictionary.com/definition/benefit.htmlhttp://www.businessdictionary.com/definition/right.htmlhttp://www.businessdictionary.com/definition/sell.htmlhttp://www.businessdictionary.com/definition/fact.htmlhttp://www.businessdictionary.com/definition/relevant.htmlhttp://www.businessdictionary.com/definition/seller.htmlhttp://www.businessdictionary.com/definition/buy.htmlhttp://www.businessdictionary.com/definition/buyer.htmlhttp://www.businessdictionary.com/definition/labor-rate-price-variance.html


6/11

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

Abolished the office of a CustomsAppraiser but incorporated the separate

functions of a Customs Appraiser and theCustoms Examiner into one CustomsOfficer tasked to inspect and appraiseimported articles, now the present Section1403.

Also amended Section 1401 of P.D. 1464 on

conditions for Examination of Importedarticles.

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

Republic Act 7650


7/11

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 ofCustoms in its fight against technicalsmuggling and other customs fraud.

Defined clearly those imported articlesdeemed abandoned in favor of thegovernment and its manner of disposition.

Rules on undervaluation, misclassificationand misdeclaration.

Issuance of warrant of seizure and itsappeal process

The provision on the issuance andsuspension/revocation of license forcustoms brokers.

Signed into law on June 04, 1993 by thenPres. Ramos.

Republic Act 7651


8/11

Enacted by the Tenth Congress of the

Philippines on March 27, 1996 in compliancewith the Philippines accession to the WorldTrade Organization.

Introduce a change in the basis of dutiablevalue of imported articles subject to an ad

valorem rate of duty from FMV totransaction value (TV) consistent with theprinciples and general provisions of theGATT of 1994, Uruguay Round Final Actwhich the Phils. is a signatory.

The applicationof the Transaction Value wasdeferred by Congress authorizes its shiftbefore Jan. 01, 2000.

The dutiable value of an imported articlesubject to an ad valorem rate of duty shall

be based on the export value as interimvalue before the full implementation of thetransaction value.

Republic Act 8181


9/11

New tariff measure was passed by the eleventhcongress and signed into law by Pres. Gloria

Macapagal Aroyo on April 27, 2001, and took effecton June 02, 2001.

Relative to the principles incorporated by thecreation of R.A. 8181, the legislature now authorizesthe shift from the interim valuation of Export Valueto the us of Transaction Value as mandated by the

WTO valuation agreement where the Philippines wascommitted to implement way back January 01, 2000.

The legislature clarified and carefully structured theTransaction Value, which is the price actually PAID ORPAYABLE for the goods when sold for export to thePhilippines plus adjustments as provided for under

the law. Applies additional safety measures against

undervaluation and other fraud by the introductionof force acquisition by the Bureau of Customs againstgross undervalued goods.

Introduces the dual mandatory requirements of

RecordKeeping,and the PostEntry Audit Systemwhich objective is to determine whether or not theimporter declared the correct Transaction Value ofhis imported articles.

Republic Act 9135


10/11

Known as the Customs Brokers Act of 2004 It professionalizes the practice of customs

broker profession and corporations fromengaging in the practice of customs broker

profession. It expressly repealed Section 3401 to 3409

of P.D. 1464 as amended (Tariff andCustoms Code of the Philippines

Republic Act No. 9280


11/11

SEC. 3401. Qualifications of Applicants for CustomsBroker's Certificate. - All applicants forcustomsbroker's certificates shall pass a written examinationfor the purpose.Applicants for admission to the saidexamination shall have the followingqualifications:(a) At least 21 years of age;(b) A citizenof the Philippines;(c) Of good moral character; and(d) Has completed at least four -year -

collegiate course, where he has creditably takenatleast eighteen (18) academic units in tariff andcustoms and/or taxation, and applicantmay beallowed to take the examination provided that forevery deficiency of three (3)academic units in tariffand customs and/or taxation shall be substituted by

at least three (3)months of actual experience incustoms brokerage and/or customs and tariffmatters:Provided, That said experience shall be dutycertified by the employer or employers oftheapplicantNo corporation, association or

partnership shall engage in the customs brokeragebusinessunless at least two (2) of the officers of suchcorporation or association, or at least two (2) ofthemembers of such partnership have suchcertificate.No certificate as customs broker shall begranted to any person who has been convicted ofa

crime involving moral turpitude

Download - Tariff 1 Reviewer

Top Related