TARM101 Week 2 PDF - Fundamentals of Customs and Tariff Management

COLLEGE OF GOVERNANCE BACHELOR OF SCIENCE IN CUSTOMS ADMINISTRATION LESSON 1...

COLLEGE OF GOVERNANCE BACHELOR OF SCIENCE IN CUSTOMS ADMINISTRATION LESSON 1 INTRODUCTION TARM 101 PRAYER FUNDAMENTALS OF FUNDAMENTALS OF CUSTOMS AND TARIFF MANAGEMENT CUSTOMS AND TARIFF MANAGEMENT PROF. ABEGAIL P. NUYLAN, LCB (TARM101) DISCUSSION Tariff and Customs PROPER PRESENT AND DISCUSS YOUR ASSIGNMENT History in the Philippines TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES GIVE A BRIEF DESCRIPTION ABOUT THE PHOTO TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES LEARNING OBJECTIVES 1.0 LEARNING OBJECTIVES 1.0 After this lesson, Learners are expected to: After this lesson, Learners are expected to: 1.0 Learning Objectives Understand and grasp the basic concepts of tariffs and customs Understand the role and functions of the Bureau of Customs, 1.1 Introduction duties, including their definitions, types, and functions in trade including its jurisdiction, control measures, and the 1.2 Derivation of word tariff regulation. responsibilities of its officials 1.3 Definition of tariff 1.4 The term tariff as related to Customs Duties Explore the evolution of customs services in the Philippines, Assess how tariffs affect domestic industries, consumer prices, 1.5 Purposes of Tariffs, Importance, Concept, from pre-colonial trade practices to modern customs laws and and international trade relations, including the balance between and Types of Tariffs regulations, highlighting significant historical milestones. protecting local businesses and promoting free trade Analyze the impact of key laws such as the Customs Modernization and Tariff Act (CMTA) and the Revised Kyoto Convention on the Philippines' customs practices and international trade compliance. TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES INTRODUCTION 1.1 INTRODUCTION 1.1 INTRODUCTION 1.1 Over the following decades, the Philippines' customs laws and The history of tariffs and customs in the Philippines dates back After Spain gained control of the country's trade, they introduced regulations underwent various changes and reorganizations, centuries, even before the arrival of Spanish and European explorers. several important changes to the customs system culminating in the enactment of the Tariff and Customs Code of the The country already had a flourishing trade with its Asian neighbors, 1. A Tariff Board was established to draw up a tariff of fixed values Philippines in 1957 (Republic Act No. 1937). This act became the first using a barter system of commodities rather than money as the for all imported articles, with a uniform 10% ad valorem duty official expression of an autonomous Philippine Tariff Policy medium of exchange. collected. 2. A Tariff Law was established, setting specific duties on all imports In the 1970s and 1980s, the Tariff and Customs Code was further During this pre-colonial era, local rulers known as "datus" and amended and revised to align with the country's developmental "rajahs" collected tributes from merchants before allowing them to and certain exports, which remained in effect until the end of Spanish rule. programs and international trade obligations. The most recent major trade with the locals. This practice became part of the early Philippine reorganization of the Bureau of Customs took place in 1986 after the culture and was observed as the "Customs Law of the Land" EDSA Revolution, with the issuance of Executive Order No. 127 TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES INTRODUCTION 1.1 DERIVATION OF WORD “TARIFF” 1.2 DERIVATION OF WORD “TARIFF” 1.2 Today, the Bureau of Customs continues to play a crucial role in The word "tariff" originated in the 16th century from the Italian word The Italian "tariffa" entered the English language in the late 16th regulating trade and collecting revenues for the government. Its "tariffa", meaning "list of prices, scale of charges". The Italian word century, first appearing in 1590. It originally referred to a list or history reflects the evolving nature of the Philippines' economic and was derived from the Arabic word "ta'rifa" meaning "to inform, to schedule of prices or charges, especially for imported goods. Over trade policies over time. make known". time, the meaning narrowed to specifically mean a tax or duty levied on imports or exports. TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES DEFINITION OF TARIFF 1.3 DEFINITION OF TARIFF 1.3 THE TERM TARIFF AS RELATED 1.4 TO CUSTOMS DUTIES Tariff is A tax imposed by the government on imports or exports The term "tariff" is closely related to customs duties, and the two of goods. Tariff term also refers to the list or schedule of such taxes, as well terms are often used interchangeably. However, there are some key Tariffs can protect domestic industries from foreign competition as the rates at which they are levied on different categories of differences: by making imported goods more expensive. goods. Tariffs are typically expressed as a percentage of the value A tariff is a specific type of duty levied on certain imports, Tariffs generate revenue for the government, similar to other of the goods (ad valorem duty) or as a fixed amount per quantity typically to protect domestic industries from foreign competition taxes. (specific duty). by making imported goods more expensive Tariffs can be used as bargaining chips in trade negotiations Countries may impose tariffs on imports from other countries in A duty, on the other hand, is a charge placed on most (if not all) between countries. retaliation for tariffs those countries have placed on their goods being imported, even though the specific duty rates may exports. vary depending on the goods TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES THE TERM TARIFF AS RELATED 1.4 PURPOSES OF TARIFF 1.5 PURPOSES OF TARIFF 1.5 TO CUSTOMS DUTIES Duties are indirect taxes imposed on the consumer of imported Revenue Generation goods, while tariffs are direct taxes applied to the goods Protection of Domestic Industries Revenue Generation - Tariffs provide a source of themselves. Regulation of Foreign Trade revenue for the government, similar to other taxes Both tariffs and duties help protect domestic industries by making Retaliation Against Unfair Trade Practices imports more expensive, and they contribute to the total import and export costs of a product Bargaining Chips in Trade Negotiations TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES PURPOSES OF TARIFF 1.5 PURPOSES OF TARIFF 1.5 PURPOSES OF TARIFF 1.5 Protection of Domestic Industries - Tariffs can protect Regulation of Foreign Trade - Tariffs allow Retaliation Against Unfair Trade Practices - Tariffs can domestic industries from foreign competition by governments to regulate the flow of certain goods into be used to penalize foreign countries or firms engaged making imported goods more expensive, encouraging or out of the country in unfair trading practices like dumping or subsidies consumers to buy local products instead TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES PURPOSES OF TARIFF 1.5 IMPORTANCE OF TARIFF 1.5 CONCEPT OF TARIFF 1.5 Tariffs are an important policy tool for governments to A tariff is a tax or duty levied by a government on Bargaining Chips in Trade Negotiations - Tariffs can be shape international trade and protect domestic goods imported into or exported from the country. It used as leverage in trade negotiations between economic interests. However, economists generally increases the price of imported goods, making them countries agree that while tariffs may benefit certain industries, less competitive compared to domestic products they tend to have a negative impact on overall economic growth and consumer welfare TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES CONCEPT OF TARIFF 1.5 TYPES OF TARIFF 1.5 TYPES OF TARIFF 1.5 Tariffs are typically expressed as a percentage of the Ad Valorem Tariff: A percentage tax based on the value Tariff-Rate Quota (TRQ): A two-tier tariff system where value of the goods (ad valorem duty) or as a fixed of the imported goods. imports below a certain quota are charged a lower amount per quantity (specific duty). They can be fixed Specific Tariff: A fixed amount of tax per unit of the tariff rate, while imports above the quota are charged a or variable in nature imported good. higher rate. Compound Tariff: A combination of ad valorem and Anti-dumping Duties: Tariffs imposed to counteract specific tariffs. artificially low prices charged by foreign firms to drive out domestic competition. Countervailing Duties: Tariffs used to offset foreign government subsidies that allow exporters to sell at unfairly low prices TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES COLLEGE OF GOVERNANCE GIVE AT LEAST ONE (1) BACHELOR OF SCIENCE IN CUSTOMS ADMINISTRATION LET US DEFINITION OF TERMS TARM 101 CHECK YOUR UNDER CMTA AND FUNDAMENTALS OF CUSTOMS AND TARIFF MANAGEMENT EXPLAIN. PROGRESS PROF. ABEGAIL P. NUYLAN, LCB “YOUR SMILE IS YOUR LOGO, YOUR PERSONALITY IS YOUR BUSINESS CARD AND THE WAY YOU MAKE OTHERS FEEL IS YOUR TRADEMARK” - UNKNOWN TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES TARIFF AND CUSTOMS HISTORY IN THE PHILIPPINES