Tariff Commission (TC) History and Laws

• The Tariff Commission (TC) aims to foster a competitive Philippines through balanced international trade policies.
• The TC is the primary authority on tariff and trade remedies and advises on non-tariff measures and international trade issues

History

• "Tarifa" refers to a place in the Gibraltar Iberian Peninsula.
• "Tarif Ibn Malik" refers to a town.
• "Tariff Iban Malik" refers to a Berber general
• "Almojarifazgo" was a 3% rate
• The Junta de Valoraciones was abolished in 1782
• The Junta de Aranceles was a new tariff board established in 1828.

Tariff Laws

• The PH Tariff Act of 1909 was passed by the US Congress
• RA 911 established an independent government agency led by a Chairman and two Commissioners under Presidential supervision, from June 20, 1953
• The General Appropriations Act of 1956 reorganized the TC, placing it under the Department of Finance (DOF) as a division.
• RA 1937-TCCP re-established the TC as an independent body under the President in 1957.
• PD no. 1 s. 1972 formed the TC by a Chairman and two commissioners and placed it under NEDA
• PD no. 34 s. 1972 amended and consolidated the TCC.
• PD no. 1464 s., 1978 codified all tariff & customs laws, serving as the primary tariff code until 2016
• EO no. 292 S. 1987 reorganized the TC into five sectoral divisions and designated it as an attached agency of NEDA
• EO no. 230 S. 1987 integrated the TC Chairman as a permanent member of the committee on tariff & related matters

Structure

• Executive Order No. 366 S. 2004 is the TC Rationalization Plan
• The Finance Management and Administrative Service (FMAS) is headed by Gerry P. Gebela
• The Research, Investigation, and International Trade Analysis Services (RITAS) is headed by Elvira C. Ignacio and Ma. Lourdes M. Saluta.
• Current Chief Officials: Chairperson Marilou P. Mendoza, Commissioners Ernesto L. Albano and Marissa Maricosa A. Paderon.
• EO no. 143 S. 2000 shifted the TC back to its functional set-up.
• EO no. 143 S. 2004 rationalized TC Operations, creating two services: Finance/Management and Research/Investigation

Forms of Duty

• Ad Valorem: according to value
• Specific Duty: based on units/measurements
• Combined Duty: ad valorem and specific

Codes

• 1608-NEDA is related to TARIFF-1608
• 1609-NEDA & TC is related to ITA-1609.

Trade

• The TC handles trade disputes within the WTO and customs matters with the WCO.
• Key ports include: Cebu (1842), Zamboanga (1883), Iloilo and Sual (1855), Legazpi and Tacloban (1874).

Memberships

• WTO: 164 members
• WCO: 183 members
• HS: 160 members
• UNCTAD: 196 members
• APEC: varying between 12 (1989) and 21 (1998) members

Leadership

• ASEAN Secretary-General: H.E. Dr. Kao Kim Hourn.
• UNCTAD Secretary-General: Rebeca Grynspan
• WCO Secretary-General: Ian Saunders
• WTO Director-General: Ngozi Okonjo-Iweala

Dates

• WTO established: January 1, 1995
• GATT established: 197
• ATIGA: Implemented on May 17, 2010, from February 26, 2009
• UNCTAD: Compromise of 195 members on July 26, 2019
• ASEAN Summit: Held twice a year

ASEAN

• ASEAN Charter = foundation.
• ASEAN Economic Community is a single market production base
• ASEAN Trade Facilitation Framework is a driver.
• AFTA established at the 4th ASEAN Summit in Singapore in 1992
• CEPT leads to AFTA then to ATIGA

Curriencies

• Vietnam: Vietnamese Dong
• Malaysia: Malaysian Ringgit
• Myanmar: Burmese Kyat
• Philippines: Philippine Peso
• Brunei: Brunei Dollar
• Cambodia: Cambodian Riel
• Indonesia: Indonesian Rupiya
• Thailand: Thai Baht
• Singapore: Singaporean Dollar.
• Lao PDR: Lao Kip

Trade Details

• 6 Powers in 1608
• Additional of 10% only after discussion with the President
• No public hearing, no public consultation.

Trade Agreements

• Liberalize Trade by duties and taxes
• Preferntial Tariff Treatment is used

Originating Goods

• Fully Obtain
• Substantial Transformation requires RVC of 40%
• CTC and Process Rule apply.

Injuries

• Material Injury: Antidumping/Countervailing
• Serious Injury:Safeguard
• Present status is now
• Future is a threat
• TC does review
• Governed by ATIGA - CO FORM D

CMTA

• CMTA Sections 1600 - 1609 relate to Trade
• Quadrennial Conference is UNCTAD's highest decision body.
• RKC is a blueprint that is updated and revised for WCO.
• RTA involves many participants geographically close to each other
• MTA involves two or more participating countries
• BTA involves two participating countries only
• ASEAN founding fathers established: 1967
• BISMPT countries

Important sectors of AISP

• Logistics
• Agro based products
• Automotive
• e-ASEAN
• Healthcare

CMTA Chiefs

• Natural-born citizen of the Philippines, of good moral character and proven integrity & possess the necessary qualifications requisite for developing expert knowledge of tariff and trade related matters
• Chairperson and Commissioners shall not engage in any private practice relating directly to trade

Appointment

• All employees of the Commission shall be appointed by the Chairperson in accordance with the Civil Service Law except as the private secretaries to the offices of the Chairperson, Commissioners and Executive Director.

Seal

• The official seal of the Tariff Commission includes the Wheel of Progress, Agricultural Sector, Trade and Industry Sector, and Hopes and Aspirations of the Nation for Continued Economic Growth with the logo of a dragon.

Reports

• Annual and technical reports are due to the President and Members of Congress on the first Monday of December each Year.
• The TC must share document pertaining to business relating to production, import and distribution for investigation
• If the matter relates to an investigation, the TC can issue testimony, administer oaths, and issue subpoena duces tecum requiring the production of books, papers, or documents relating to the matter under investigation
• The TC can request the views, recommendations, and assistance of any government office, agency, or instrumentality who shall be expected to cooperate fully with the Commission.

Sworn Statements

• The TC may order the taking of sworn statements & is authorized to require any importer, grower, producer, manufacturer or seller to file with the Commission a statement, under oath, giving the selling prices in the Philippines of goods imported

Implementing Rules (CMTA Sec. 1607)

• The Commission shall promulgate and adopt such rules and regulations as may be necessary to carry out the provisions of this Act.
• Examples:
  • Commission Order No. 2017-01 (Procedures for an Advance Ruling System on Tariff Classification)
  • Commission Order No. 00-01 (Revised Rules and Regulations to govern the conduct of investigation of dumping cases)

Flexible Clause (CMTA Sec. 1608)

• Refers to the power of the President upon recommendation of the NEDA:
  • To increase tariff rates
  • Reduce tariff rates
  • Remove existing protective tariff rates
  • Change commodity classification
  • Establish import quota on certain commodities
  • Ban importation of any commodity
  • Impose additional duty
  • Purpose of which is for the general welfare and national security.
• A commission must conduct an investigation, hold public hearings to interested parties and hear the views and recommendations of any government office before it is sent to the President by the NEDA
• The Commission shall submit its findings and recommendations to the NEDA within 30 days after the termination of the public hearings
• Power of the President to increase or decrease rates of import duty & shall include the authority to modify the form of duty, the corresponding or specific equivalents of the duty with respect to imports from the principle competing foreign country for the most recent representative period shall be used as basis
• Any order issued by the President under this section shall take effect 30 days after the promulgation and except in the imposition of additional duty
• The power delegated to the President shall be exercised only when Congress is not in session, the power herein delegated may be withdrawn or terminated by Congress through a joint resolution, the NEDA shall promulgate rules and regulations necessary to carry out the provisions of this section

Promotion of Foreign Trade (CMTA Sec. 1609)

• To expand foreign markets for Philippine products by:
  • Entering into trade agreements with foreign governments; and
  • Modifying import duties, changes in classification and other import restrictions as are required or appropriate to carry out and promote foreign trace with other countries
• Nothing in this section shall:be construed to give any authority to cancel or reduce in any manner indebtedness of any foreign country to the Philippines or give any rights
• A comission shall seek information and advice from DTI, DA, DOF, DENR, DFA, BSP
• The NEDA and commission shall formulate how to execute respectable fuctions through procedures and rules
• President can:
  • Prescribe adjustments
  • Withdraw modify or suspend
  • To fully protect domestic and consumers, the whole prices of domestic product be reduced