TL DAY 02 2023 - TC, Sec. 1608, 1609 HANDOUT PDF

C U S TO M S AN D LO G I S TI CS AD V O C ATE S O F TH E PHI LS. I N C. ( CL aP) Room 404, 4th Floor, Calvo Bldg., Escolta st., Binondo, Manila Tel. Nos.: 0917-874-6373 (Bert) or 0977-787-0499 (Art) email: [email protected]...

C U S TO M S AN D LO G I S TI CS AD V O C ATE S O F TH E PHI LS. I N C. ( CL aP) Room 404, 4th Floor, Calvo Bldg., Escolta st., Binondo, Manila Tel. Nos.: 0917-874-6373 (Bert) or 0977-787-0499 (Art) email: [email protected] CUSTOMS AND LOGISTICS AD V O C A T E S O F T H E P H I L S. I N C. Rm 404 Calvo bldg., Escolta st., Binondo, Manila 2023 TUTORIAL CLASS ON TARIFF LAWS AND CLASSIFICATION SESSION 02  THE TARIFF COMMISSION (TC)  FLEXIBLE CLAUSE  PROMOTION OF FOREIGN TRADE CLaP By: ENG’R ARTEMIO D. BERNARDINO Former Director, Tariff Commission Chairman of the Board, CLaP The Philippine Tariff Commission https://tariffcommission.gov.ph/  Performs both governmental and quasi-judicial functions;  Adjudicates cases on the application of trade remedies against imports (dumping, countervailing and safeguards);  Studies the impact of tariff policies and programs on national competitiveness and consumer welfare;  Administers the Philippine tariff schedules and tariff nomenclature;  Issues advance rulings on tariff classification of imported goods and render rulings on disputes over tariff classification of goods;  Provides the President and Congress with independent analysis, information and technical support on matters related to tariff and non-tariff measures; CLaP ESCOLTA TUTORIAL AND REVIEW MATERIALS ARE PROTECTED UNDER THE INTELLECTUAL PROPERTY LAW AND THE LAW OF KARMA. THE MATERIALS ARE DISTRIBUTED TO THOSE ENROLLED IN THE CBLE TUTORIAL AND REVIEW COURSES FOR THEIR EXCLUSIVE USE ONLY. ENROLLEES ARE NOT ALLOWED TO REPRODUCE, DISTRIBUTE, OR SHARE UNDER THE PAIN OF CRIMINAL PROSECUTION AND THE HARSH PUNISHMENT OF KARMA OF DIFFICULTY IN PASSING THE CBLE AND DIFFICULTY IN DEALING WITH CUSTOMS AND TARIFF MATTERS FOR LIFE. UNAUTHORIZED RECIPIENTS ARE LIKEWISE FOREWARNED! LAW OF KARMA IS MORE PAINFUL THAN LAW OF MEN! Page 1 of 11  C U S TO M S AN D LO G I S TI CS AD V O C ATE S O F TH E PHI LS. I N C. ( CL aP) Room 404, 4th Floor, Calvo Bldg., Escolta st., Binondo, Manila Tel. Nos.: 0917-874-6373 (Bert) or 0977-787-0499 (Art) email: [email protected] The Philippine Tariff Commission https://tariffcommission.gov.ph/  Analyzes the nature and composition, and the classification of goods according to tariff commodity classification and heading number for customs and other related purposes, which information shall be furnished certain government agencies;  Reviews the trade agreements for negotiation and trade agreements entered into by the Philippines and make recommendations, if necessary, on the consistency of the terms of the agreements with the national policy objectives; CLaP  Conducts public consultations and public hearings pursuant to its functions; and  Is an attached agency to the National Economic and Development Authority. TC ORGANIZATIONAL STRUCTURE Research, OFFICE OF THE Finance, Investigation and CHAIRPERSON AND Management and International Administrative Trade Analysis COMMISSIONERS (OCC) Service (FMAS) Service (RIITAS) Commodities Studies Division Administrative (CSD) Division (AdmD) Economics, Trade and Industry Financial Studies Division Management (ETISD) Division (FMD) Financial Studies Division (FSD) Planning, Management and International Trade Information Studies Division Systems Division (ITSD) (PMISD) CLaP ESCOLTA TUTORIAL AND REVIEW MATERIALS ARE PROTECTED UNDER THE INTELLECTUAL PROPERTY LAW AND THE LAW OF KARMA. THE MATERIALS ARE DISTRIBUTED TO THOSE ENROLLED IN THE CBLE TUTORIAL AND REVIEW COURSES FOR THEIR EXCLUSIVE USE ONLY. ENROLLEES ARE NOT ALLOWED TO REPRODUCE, DISTRIBUTE, OR SHARE UNDER THE PAIN OF CRIMINAL PROSECUTION AND THE HARSH PUNISHMENT OF KARMA OF DIFFICULTY IN PASSING THE CBLE AND DIFFICULTY IN DEALING WITH CUSTOMS AND TARIFF MATTERS FOR LIFE. UNAUTHORIZED RECIPIENTS ARE LIKEWISE FOREWARNED! LAW OF KARMA IS MORE PAINFUL THAN LAW OF MEN! Page 2 of 11  C U S TO M S AN D LO G I S TI CS AD V O C ATE S O F TH E PHI LS. I N C. ( CL aP) Room 404, 4th Floor, Calvo Bldg., Escolta st., Binondo, Manila Tel. Nos.: 0917-874-6373 (Bert) or 0977-787-0499 (Art) email: [email protected] THE TARIFF COMMISSION AND ITS FUNCTIONS UNDER THE CMTA CUSTOMS MODERNIZATION AND TARIFF ACT, R.A. 10863 Title XVI Tariff Administration and Policy Chapter 1 Tariff Commission Sec. 1600 Chief Officials of the TC Sec. 1601 Appointment and Compensation of Officials and Employees Sec. 1602 Official Seal Sec. 1603 Functions of the Commission CLaP Sec. 1604 Reports of the Commission Sec. 1605 Access to Documents and Assistance to the Commission Sec. 1606 Sworn and Verified Statements Sec. 1607 Implementing Rules and Regulations TC CHIEF OFFICIALS (CMTA Sec. 1600) Marilou P. Mendoza Ernesto L. Albano Marissa Maricosa A. Chairperson Commissioner Paderon Commissioner CLaP ESCOLTA TUTORIAL AND REVIEW MATERIALS ARE PROTECTED UNDER THE INTELLECTUAL PROPERTY LAW AND THE LAW OF KARMA. THE MATERIALS ARE DISTRIBUTED TO THOSE ENROLLED IN THE CBLE TUTORIAL AND REVIEW COURSES FOR THEIR EXCLUSIVE USE ONLY. ENROLLEES ARE NOT ALLOWED TO REPRODUCE, DISTRIBUTE, OR SHARE UNDER THE PAIN OF CRIMINAL PROSECUTION AND THE HARSH PUNISHMENT OF KARMA OF DIFFICULTY IN PASSING THE CBLE AND DIFFICULTY IN DEALING WITH CUSTOMS AND TARIFF MATTERS FOR LIFE. UNAUTHORIZED RECIPIENTS ARE LIKEWISE FOREWARNED! LAW OF KARMA IS MORE PAINFUL THAN LAW OF MEN! Page 3 of 11  C U S TO M S AN D LO G I S TI CS AD V O C ATE S O F TH E PHI LS. I N C. ( CL aP) Room 404, 4th Floor, Calvo Bldg., Escolta st., Binondo, Manila Tel. Nos.: 0917-874-6373 (Bert) or 0977-787-0499 (Art) email: [email protected] QUALIFICATIONS OF TC CHIEF OFFICIALS (CMTA Sec. 1600)  Natural-born citizens of the Philippines;  of good moral character and proven integrity; and  possess the necessary qualifications requisite for developing expert knowledge of tariff and trade related matters.  During their terms of office, Chief Officials shall not engage in the practice of any profession, or intervene directly or indirectly in the management or control of any private enterprise which may, in anyway, be CLaP affected by the functions of their office; and  they shall not be, directly or indirectly, financially interested in any contract with the government, or any subdivision or instrumentality thereof. APPOINTMENT AND COMPENSATION OF OFFICIALS AND EMPLOYEES (CMTA Sec. 1601)  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. CLaP ESCOLTA TUTORIAL AND REVIEW MATERIALS ARE PROTECTED UNDER THE INTELLECTUAL PROPERTY LAW AND THE LAW OF KARMA. THE MATERIALS ARE DISTRIBUTED TO THOSE ENROLLED IN THE CBLE TUTORIAL AND REVIEW COURSES FOR THEIR EXCLUSIVE USE ONLY. ENROLLEES ARE NOT ALLOWED TO REPRODUCE, DISTRIBUTE, OR SHARE UNDER THE PAIN OF CRIMINAL PROSECUTION AND THE HARSH PUNISHMENT OF KARMA OF DIFFICULTY IN PASSING THE CBLE AND DIFFICULTY IN DEALING WITH CUSTOMS AND TARIFF MATTERS FOR LIFE. UNAUTHORIZED RECIPIENTS ARE LIKEWISE FOREWARNED! LAW OF KARMA IS MORE PAINFUL THAN LAW OF MEN! Page 4 of 11  C U S TO M S AN D LO G I S TI CS AD V O C ATE S O F TH E PHI LS. I N C. ( CL aP) Room 404, 4th Floor, Calvo Bldg., Escolta st., Binondo, Manila Tel. Nos.: 0917-874-6373 (Bert) or 0977-787-0499 (Art) email: [email protected] TC OFFICIAL SEAL (CMTA Sec. 1602) Wheel of Progress Trade and Agricultural Industry Sector Sector CLaP Hopes and Aspirations of the Nation for Continued Economic Growth 9 FUNCTIONS OF TC (CMTA Sec. 1603)  Make formal judgment or decision on cases on the application of trade remedies against imports: CMTA Sec. 711 (Dumping Duty, RA 8752) CMTA Sec. 712 (Safeguard Duty, RA 8800) CMTA Sec. 713 (Countervailing Duty, RA 8751)  Administer Philippine tariff schedules and nomenclature.  Issue advance rulings on tariff classification pursuant to CMTA Sec. 1100.  Other functions relating to tariff policies and programs on national competitiveness. CLaP ESCOLTA TUTORIAL AND REVIEW MATERIALS ARE PROTECTED UNDER THE INTELLECTUAL PROPERTY LAW AND THE LAW OF KARMA. THE MATERIALS ARE DISTRIBUTED TO THOSE ENROLLED IN THE CBLE TUTORIAL AND REVIEW COURSES FOR THEIR EXCLUSIVE USE ONLY. ENROLLEES ARE NOT ALLOWED TO REPRODUCE, DISTRIBUTE, OR SHARE UNDER THE PAIN OF CRIMINAL PROSECUTION AND THE HARSH PUNISHMENT OF KARMA OF DIFFICULTY IN PASSING THE CBLE AND DIFFICULTY IN DEALING WITH CUSTOMS AND TARIFF MATTERS FOR LIFE. UNAUTHORIZED RECIPIENTS ARE LIKEWISE FOREWARNED! LAW OF KARMA IS MORE PAINFUL THAN LAW OF MEN! Page 5 of 11  C U S TO M S AN D LO G I S TI CS AD V O C ATE S O F TH E PHI LS. I N C. ( CL aP) Room 404, 4th Floor, Calvo Bldg., Escolta st., Binondo, Manila Tel. Nos.: 0917-874-6373 (Bert) or 0977-787-0499 (Art) email: [email protected] REPORTS OF TC (CMTA Sec. 1604)  Make Annual and technical reports available to the President and Members of Congress. CLaP ACCESS TO DOCUMENTS AND ASSISTANCE TO TC (CMTA Sec. 1605)  The TC have access to any document pertinent to the subject matter under investigation, in the possession of any person or entity engaged in the production, importation, or distribution of goods under investigation;  The TC shall have power to summon witnesses, take testimony, administer oaths, and to 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. CLaP ESCOLTA TUTORIAL AND REVIEW MATERIALS ARE PROTECTED UNDER THE INTELLECTUAL PROPERTY LAW AND THE LAW OF KARMA. THE MATERIALS ARE DISTRIBUTED TO THOSE ENROLLED IN THE CBLE TUTORIAL AND REVIEW COURSES FOR THEIR EXCLUSIVE USE ONLY. ENROLLEES ARE NOT ALLOWED TO REPRODUCE, DISTRIBUTE, OR SHARE UNDER THE PAIN OF CRIMINAL PROSECUTION AND THE HARSH PUNISHMENT OF KARMA OF DIFFICULTY IN PASSING THE CBLE AND DIFFICULTY IN DEALING WITH CUSTOMS AND TARIFF MATTERS FOR LIFE. UNAUTHORIZED RECIPIENTS ARE LIKEWISE FOREWARNED! LAW OF KARMA IS MORE PAINFUL THAN LAW OF MEN! Page 6 of 11  C U S TO M S AN D LO G I S TI CS AD V O C ATE S O F TH E PHI LS. I N C. ( CL aP) Room 404, 4th Floor, Calvo Bldg., Escolta st., Binondo, Manila Tel. Nos.: 0917-874-6373 (Bert) or 0977-787-0499 (Art) email: [email protected] SWORN AND VERIFIED STATEMENTS (CMTA Sec. 1606)  The TC may order the taking of sworn statements;  The TC 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 CLaP Philippines of goods imported, grown, produced, fabricated or manufactured by such person. IMPLEMENTING RULES AND REGULATIONS (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) CLaP ESCOLTA TUTORIAL AND REVIEW MATERIALS ARE PROTECTED UNDER THE INTELLECTUAL PROPERTY LAW AND THE LAW OF KARMA. THE MATERIALS ARE DISTRIBUTED TO THOSE ENROLLED IN THE CBLE TUTORIAL AND REVIEW COURSES FOR THEIR EXCLUSIVE USE ONLY. ENROLLEES ARE NOT ALLOWED TO REPRODUCE, DISTRIBUTE, OR SHARE UNDER THE PAIN OF CRIMINAL PROSECUTION AND THE HARSH PUNISHMENT OF KARMA OF DIFFICULTY IN PASSING THE CBLE AND DIFFICULTY IN DEALING WITH CUSTOMS AND TARIFF MATTERS FOR LIFE. UNAUTHORIZED RECIPIENTS ARE LIKEWISE FOREWARNED! LAW OF KARMA IS MORE PAINFUL THAN LAW OF MEN! Page 7 of 11  C U S TO M S AN D LO G I S TI CS AD V O C ATE S O F TH E PHI LS. I N C. ( CL aP) Room 404, 4th Floor, Calvo Bldg., Escolta st., Binondo, Manila Tel. Nos.: 0917-874-6373 (Bert) or 0977-787-0499 (Art) email: [email protected] THE TARIFF COMMISSION AND ITS FUNCTIONS UNDER THE CMTA CUSTOMS MODERNIZATION AND TARIFF ACT, R.A. 10863 Title XVI Tariff Administration and Policy Chapter 2 Flexible Tariff Sec. 1608 Flexible Clause CLaP Sec. 1609 Promotion of Foreign Trade FLEXIBLE CLAUSE (CMTA Sec. 1608) Refers to the power of the President upon recommendation of the NEDA:  to increase (not higher than 100% ad valorem) tariff rates;  to reduce tariff rates;  to remove existing protective tariff rates;  to change commodity classification;  to establish import quota on certain commodities;  to ban importation of any commodity; and  to impose additional duty on all import not exceeding 10% ad valorem. CLaP ESCOLTA TUTORIAL AND REVIEW MATERIALS ARE PROTECTED UNDER THE INTELLECTUAL PROPERTY LAW AND THE LAW OF KARMA. THE MATERIALS ARE DISTRIBUTED TO THOSE ENROLLED IN THE CBLE TUTORIAL AND REVIEW COURSES FOR THEIR EXCLUSIVE USE ONLY. ENROLLEES ARE NOT ALLOWED TO REPRODUCE, DISTRIBUTE, OR SHARE UNDER THE PAIN OF CRIMINAL PROSECUTION AND THE HARSH PUNISHMENT OF KARMA OF DIFFICULTY IN PASSING THE CBLE AND DIFFICULTY IN DEALING WITH CUSTOMS AND TARIFF MATTERS FOR LIFE. UNAUTHORIZED RECIPIENTS ARE LIKEWISE FOREWARNED! LAW OF KARMA IS MORE PAINFUL THAN LAW OF MEN! Page 8 of 11  C U S TO M S AN D LO G I S TI CS AD V O C ATE S O F TH E PHI LS. I N C. ( CL aP) Room 404, 4th Floor, Calvo Bldg., Escolta st., Binondo, Manila Tel. Nos.: 0917-874-6373 (Bert) or 0977-787-0499 (Art) email: [email protected] TARIFF COMMISSION FUNCTIONS ON FLEXIBLE TARIFFS Conducts investigations on the petitions it receives or government initiatives on tariffs pursuant to CMTA Sec. 1608 (Flexible Clause) Modification of Change MFN rates of duty Goods Classification Create/modify Philippine tariff lines Increase Decrease CLaP Delete Philippine tariff lines Eliminate (zero duty) Incorporate HS/AHTN Amendments PROMOTION OF FOREIGN TRADE (CMTA SEC. 1609)  To expand foreign markets for Philippine products by: (1) Entering into trade agreements with foreign governments; and (2) Modifying import duties, changes in classification and other import restrictions as are required or appropriate to carry out and promote foreign trade with other countries. CLaP ESCOLTA TUTORIAL AND REVIEW MATERIALS ARE PROTECTED UNDER THE INTELLECTUAL PROPERTY LAW AND THE LAW OF KARMA. THE MATERIALS ARE DISTRIBUTED TO THOSE ENROLLED IN THE CBLE TUTORIAL AND REVIEW COURSES FOR THEIR EXCLUSIVE USE ONLY. ENROLLEES ARE NOT ALLOWED TO REPRODUCE, DISTRIBUTE, OR SHARE UNDER THE PAIN OF CRIMINAL PROSECUTION AND THE HARSH PUNISHMENT OF KARMA OF DIFFICULTY IN PASSING THE CBLE AND DIFFICULTY IN DEALING WITH CUSTOMS AND TARIFF MATTERS FOR LIFE. UNAUTHORIZED RECIPIENTS ARE LIKEWISE FOREWARNED! LAW OF KARMA IS MORE PAINFUL THAN LAW OF MEN! Page 9 of 11  C U S TO M S AN D LO G I S TI CS AD V O C ATE S O F TH E PHI LS. I N C. ( CL aP) Room 404, 4th Floor, Calvo Bldg., Escolta st., Binondo, Manila Tel. Nos.: 0917-874-6373 (Bert) or 0977-787-0499 (Art) email: [email protected] TARIFF COMMISSION FUNCTIONS ON FLEXIBLE TARIFFS Conducts investigations on the petitions it receives or government initiatives on tariffs pursuant to CMTA Sec. 1609 (Promotion of Foreign Trade) Preferential Trade Agreements:  Philippine participation in various  AANZFTA Preferential Trade Agreements in line  ACFTA  AHKFTA with the government’s efforts to  AIFTA expand the foreign market for  AJCEP CLaP  AKFTA Philippine exports  ATIGA  Modification of FTA/EP tariff rates  PH-EFTA  PJEPA and classification of goods  RCEP TARIFF COMMISSION FUNCTIONS ON TRADE REMEDY MEASURES Conducts Formal Determines whether Investigation on imported goods should Trade Remedy be imposed trade remedy measures Cases RA 8751 Anti-Dumping Duty Countervailing Act of 1999 CMTA Sec. 711 RA 8752 Safeguard Duty Anti-Dumping Act of 1999 CMTA Sec. 712 RA 8800 Countervailing Safeguard Measures Act Duty CMTA Sec. 713 CLaP ESCOLTA TUTORIAL AND REVIEW MATERIALS ARE PROTECTED UNDER THE INTELLECTUAL PROPERTY LAW AND THE LAW OF KARMA. THE MATERIALS ARE DISTRIBUTED TO THOSE ENROLLED IN THE CBLE TUTORIAL AND REVIEW COURSES FOR THEIR EXCLUSIVE USE ONLY. ENROLLEES ARE NOT ALLOWED TO REPRODUCE, DISTRIBUTE, OR SHARE UNDER THE PAIN OF CRIMINAL PROSECUTION AND THE HARSH PUNISHMENT OF KARMA OF DIFFICULTY IN PASSING THE CBLE AND DIFFICULTY IN DEALING WITH CUSTOMS AND TARIFF MATTERS FOR LIFE. UNAUTHORIZED RECIPIENTS ARE LIKEWISE FOREWARNED! LAW OF KARMA IS MORE PAINFUL THAN LAW OF MEN! Page 10 of 11  C U S TO M S AN D LO G I S TI CS AD V O C ATE S O F TH E PHI LS. I N C. ( CL aP) Room 404, 4th Floor, Calvo Bldg., Escolta st., Binondo, Manila Tel. Nos.: 0917-874-6373 (Bert) or 0977-787-0499 (Art) email: [email protected] TARIFF COMMISSION FUNCTIONS ON THE ISSUANCE OF ADVANCE CLASSIFICATION RULINGS AND TARIFF CLASSIFICATION DISPUTE RULINGS Issues Rulings on: Imported Goods 1) Advance Classification; and 2) Classification Dispute Exported Pursuant to CMTA Sec 1100 Goods CLaP  AHTN Code classification  Applicable Duty Rate TARIFF COMMISSION FUNCTIONS ON THE ADMINISTRATION OF PHILIPPINE TARIFF SCHEDULES AND NOMENCLATURE Manages the Philippine Tariff Nomenclature and Schedules of Tariffs Updates the  Comprehensive Tariff Updates the Review TAP-AHTN with TAP-AHTN* to  Tariff and the latest the latest HS classification Import, Export modifications under and AHTN and Special Secs. 1608, 1609 Amendments Duties  Other tariff measures *Tariff Administration and Policy including the AHTN CLaP ESCOLTA TUTORIAL AND REVIEW MATERIALS ARE PROTECTED UNDER THE INTELLECTUAL PROPERTY LAW AND THE LAW OF KARMA. THE MATERIALS ARE DISTRIBUTED TO THOSE ENROLLED IN THE CBLE TUTORIAL AND REVIEW COURSES FOR THEIR EXCLUSIVE USE ONLY. ENROLLEES ARE NOT ALLOWED TO REPRODUCE, DISTRIBUTE, OR SHARE UNDER THE PAIN OF CRIMINAL PROSECUTION AND THE HARSH PUNISHMENT OF KARMA OF DIFFICULTY IN PASSING THE CBLE AND DIFFICULTY IN DEALING WITH CUSTOMS AND TARIFF MATTERS FOR LIFE. UNAUTHORIZED RECIPIENTS ARE LIKEWISE FOREWARNED! LAW OF KARMA IS MORE PAINFUL THAN LAW OF MEN! Page 11 of 11