TARIFF LAW REVIEW

The
HISTORY OF THE
TC performs both governmental and quasi-
judicial functions. Under the CMTA, which TARIFF COMMISSION
updated and expanded TC's prescribed
mandate under Presidential Decree No.
1464 (s. 1978), also known as the Tariff and
Customs Code of the Philippines, TC has the
following functions: Philippine Tariff Act of 1909 (ED: 1909)

 The first tariff legislation of the

 adjudicate cases on the application of
Philippines was passed by the
trade remedies against imports;
 study the impact of tariff policies and United States (US) Congress.
programs on national competitiveness  This law laid the legal foundation for
and consumer welfare in line with the the imposition of tariffs on goods
economic objectives of the coming from foreign countries and
government; entering the Philippines.
 administer the Philippine tariff  Being a colony of the United States
schedules and tariff nomenclatures;
then, Philippine laws were passed
 issue advance rulings on the tariff
classification of imported goods and by the US Congress.
render rulings on disputes over tariff
Republic Act 911-An Act Creating the
classification of goods;
 provide the President and Congress Tariff Commission, Defining Its Powers
with independent analysis, and for Other Purposes (ED: 20 June
information, and technical support on 1953)
matters related to tariff and non-tariff
measures affecting Philippine  The TC as created under this law is
industries and exports for policy an independent government agency
guidance; not attached or subsumed,
 analyze the nature and composition, administratively or otherwise, to any
and the classification of goods other government agency. Its
according to tariff commodity powers and functions are spelled out
classification and heading number for
in Sections 5 and 6 of the law.
customs and other related purposes,
which information shall be furnished to
certain government agencies; Section. 5 of RA 911 states that:
 review the trade agreements for
negotiation and trade agreements It shall be the duty of the Commission:
entered into by the Philippines and
make recommendations, if necessary, investigate the administration, fiscal
on the consistency of the terms of the and industrial effects of the tariff laws
agreements with the national policy of this country now in force or which
objectives; and may be hereafter enacted, the
 conduct public consultations and  relations between the rates of
public hearings pursuant to its duty on raw materials and
functions. finished or partly finished
products,
TC is an attached agency of the National  the effects of ad valorem and
Economic and Development Authority specific duties and of
(NEDA).
 compound specific and ad Sec. 2. No person shall be eligible for
valorem duties, appointment for Commissioner, unless he
 all questions relative to the
arrangement of schedules and is a natural-born citizen of the Philippines
classification of articles in the and
several schedules of the tariff
law, and, in the judgment of the President is
 to investigate the operation of possessed of qualifications requisite for
customs and tariff laws, developing knowledge of tariff problems.
including their relation to the
national revenues, their effect  The agency was under the
upon the industries and labor supervision of the Office of the
of the country, President.
 to submit reports of its
investigations as hereafter On 17 August 1953, TC officials and
provided. employees took their oaths of office. Hence,
the TC Foundation Day is celebrated every
Sec. 6. The Commission shall have power 17th day of August
to investigate the tariff relations between
the Philippines and foreign countries, General Appropriations Act of 1956 (ED:
1956)
 commercial treaties,
 preferential provisions, Under the special provisions of this Act, the
 economic alliances, TC was re- organized and became a
 the effect of export bounties and division of the Department of Finance.
preferential transportation rates,
 the volume of importations compared Republic Act No. 1937- Tariff and
with domestic production and Customs Code of the Philippines (ED:01
consumption, and July 1957)
 conditions, causes, and effects
relating to competition of foreign This law was passed by the Philippine
industries with those of the Congress as the first Tariff and Customs
Philippines, including dumping and Code of the Philippines (TCCP). Said law
cost of production. superseded the 48-year colonial regime
era of the Philippine Tariff Act of 1909.
 The TC was headed by a Collegial
Body consisting of a Chairman and  Under the TCCP, the TC was re-
two (2) Commissioners. established as an independent body.
 The TC was headed by a
Section 1 of RA 911
Commissioner and Assistant
Tariff Commission (hereinafter referred to Commissioner.
as the "Commission")  The agency remained under the
supervision of the Office of the
 composed of three (3) members President.
appointed by the President with the
consent of the Commission on Presidential Decree No. 1, series of 1972-
Appointments. Reorganizing the Executive Branch of
 The members of the Commission the National Government (ED: 24
shall hold office during good September 1972)
behavior unless sooner removed in
accordance with law.
  Under this law, TC was re-  Machinery and Transportation
converted to a Collegial Body Division;
composed of a Chairman and two  Chemicals Division;
(2) Member- Commissioners.  Textile and Paper Division; and
 The agency was placed under the Metals and Non-Metals Division.
supervision of the National
Under this law, the TC was made an
Economic and Development
attached agency of the NEDA.
Authority (NEDA).
Executive Order No. 230, series of 1987-
Presidential Decree No. 34, series of
Reorganizing the National Economic and
1972-Amending the Tariff and Customs
Development Authority (ED: 22 July
Code of the Philippines (ED: 26
1987)
November 1972)
Pursuant to this law, the TC Chairman was
This law is a consolidation of all
made a permanent member of the
amendments made to the TCCP.
Committee on Tariff and Related Matters.
Directive from President Ferdinand E.
This Committee has the following functions:
Marcos to Dr. Manuel Alba (ED: 1975)
 Advise the President and the NEDA
 Dr. Manuel Alba was NEDA Deputy
Board on tariff and related matters
Director General and concurrent TC
and on the effects on the country of
Chairman.
various international developments
 Under his watch and pursuant to the
 Coordinate agency positions and
Presidential directive,
recommend national positions for
 TC was reorganized into a functional
international economic negotiations;
set-up. and
RN: Ack Marcos era 1975 >:T  Recommend to the President a
continuous rationalization program
Presidential Decree No. 1464-A Decree to
for the country's tariff structure.
Consolidate and Codify All the Tariff and
Customs Laws of the Philippines (ED: 11 Executive Order No. 143, series of 2000-
June 1978) Instituting Effective Operational
Mechanisms and Strategies in the Tariff
This law became the primary tariff and
Commission (ED: 01 April 2000)
customs code of the Philippines for 38 years
until the enactment by the Philippine This law allowed TC, as the agency
Congress of the Customs Modernization responsible for undertaking a thorough
and Tariff Act in 2016. study of the
Executive Order No. 292, series of 1987- Philippine Trade and Tariff System, for
Administrative Code of 1987 (ED: 25 July adopting operational strategies and
1987) activities to make it effective in encouraging
the development and growth of efficient,
TC was re-organized from a functional set-
self-reliant, innovative, progressive, and
up to a sectoral set-up with the following five
globally competitive Philippine industries.
(5) divisions:
 In particular, the law provided for
 Agricultural and Food Division;
organizational and operational
streamlining by prescribing that TC
 shall study/review its existing existing trade agreements with
operational processes, systems, and respect to their consistency with
set-up and determine appropriate national policy objectives.
mechanisms and strategies to
achieve efficiency and effectiveness
in fulfilling its mandated functions.
 Under this law, TC shifted from a
sectoral to a functional setup.
Executive Order No. 366, series of 2004-
Directing a Strategic Review of the
Operations and Organizations of the
Executive Branch and Providing Options
and Incentives for Government
Employees Who May Be Affected by the
Rationalization of the Functions and
Agencies of the Executive Branch (ED:
23 September 2008, effectivity date of TC
Rationalization Plan
Under the TC Rationalization Plan, two (2)
Services were created:

 Finance, Management and

Administrative Services (headed be
a Director III); and
 Research, Investigation, and
International Trade Analysis Service
(headed by Director III and Director
II).
Republic Act No. 10863 - Customs
Modernization and Tariff Act (ED:16 June
2016)
Pursuant to this law, the TC mandate was
significantly broadened to include, among
others, the following:

 providing the President and

Congress with independent analysis,
information, and technical support
on non-tariff measures for policy
guidance on Philippine industries
and exports;
 rendering rulings on disputes over
the tariff classification of goods; and
 reviewing the terms of trade
agreements for negotiation and
 service through changing
circumstances.
RN: TIRE acronym :D Teamwork, Integrity,
Resilience, Excellence

STRATEGIC GOALS
• A comprehensive and strategic tariff
structure and efficient tariff
administration • Delivery of timely and
TARIFF COMMISSION
quality advance rulings and dispute
rulings on tariff

VISION classification

A competitive Philippines through a • Delivery of comprehensive, evidence-

balanced international trade policy. based, and just findings on trade
remedy cases
MISSION
• Provision of industry studies and
The Tariff Commission is the principal analyses on tariffs, non-tariff measures,
and independent authority on tariff and and trade
trade remedies, and a key adviser on
non-tariff measures and international • Entrenched involvement in
trade issues. international trade negotiations

CORE VALUES • Stronger collaboration with the private

sector and other government agencies
INTEGRITY - We deliver our service
with uprightness, impartiality and utmost • Maximized use of Information and
transparency, adhering to the highest Communications Technology to
ethical standards as Philippine public enhance the Tariff Commission's public
servants. service in the New Normal environment

EXCELLENCE - We are professionals • An ingrained and innovative Quality

who work hard and efficiently and strive Management System that will enable the
to exceed expectations. Tariff Commission to continuously
provide responsive public service
TEAMWORK - We work with unity of
purpose and find concrete ways to • A competent and cohesive workforce
support each other in delivering high- in an environment where there is a
quality outputs. We accord due respect work-life balance
and unselfishly share our knowledge, • A new organizational structure aligned
skills and talents so that each of us may with the Tariff Commission's expanded
reach our full potential. mandate under the Customs
(RN: Ha-HA-ha UniTY jk forgive me nutribun) Modernization and Tariff Act.

RESILIENCE - We commit to
continuous learning and innovativeness
to enable the Tariff Commission to
consistently provide responsive public
 developing expert knowledge of
tariff and trade related matters.
During their terms of office, the
Chairperson and the Commissioners
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
TARIFF ADMINISTRATION AND anyway, be affected by the functions of
ADMINISTRATION AND POLICY their office. They shall not be, directly or
(Chapter I, Title XVI) indirectly, financially interested in any
contract with the government, or any
subdivision or instrumentality thereof.
RN: bawal part timer, bawal na may-ari ng
TARIFF COMMISSION company or enterprise? (kahit siya bawal mo
gawing pagmamay-ari awts)

(NOTE: same section 1 of RA 911, except sa

SEC. 1600. Chief Officials of the Tariff appointment of commissioners, dina need ni
President ng consent Commission on
Commission and Qualifications. Appointments)
 The officials of the Tariff
Commission shall consist of a
Chairperson and two (2) PURSUANT TO EXECUTIVE ORDER
Commissioners to be appointed NO. 386 s. 2008, AS AMMENDED BY
by the President of the RA 10863 (CMTA)
Philippines. OFFICE OF THE CHAIRPERSON AND
(NOTE: three (3) officials yan jusko wag ka malito COMMISSIONER (OCC)
gurl)
 RIITAS (Research, Investigation,
and International Trade Analysis
Service)
The Chairperson and the Commissioners
 FMAS (Finance, Management,
shall be
and Administrative Service)
 natural-born citizens of the
RIITAS (Research, Investigation, and
Philippines,
International Trade Analysis Service)
RN: BAWAL kineso, char
 Commodities Studies Division (CSD)
 of good moral character and  Economics, Trade and Industry
proven integrity, and Studies Division (ETISD)
RN: bawal may record sa NBI? :o np> “im  Financial Studies Division (FSD)
not that innocent” - Britney Spears  International Trade Studies Division
(ITSD)
 by experience and academic
training possess the necessary FMAS (Finance, Management, and
qualifications requisite for Administrative Service)

 Administrative Division (AdmD)

  Financial Management Division
(FMD)
 Planning, Management, and
Information Systems Division
(PMISD)

SEC. 1601. Appointment and

Compensation of Officials and
Employees.
All employees of the Commission shall be RN: Bakit lion why not Seal as in SeaLion para pak sa
appointed by the Chairperson in title na official SEAL :D “Seals are an emblem of
abundance and providence” - google
accordance with, the Civil Service Law
except as the private secretaries to the
offices of the Chairperson, Commissioners
SEC. 1603. Functions of the
and Executive Director.
Commission. – The Commission shall
REPUBLIC ACT No. 2260, also known as have the following functions:
the "Civil Service Act of 1959"
(a) Adjudicate cases on the application of
The general purpose of this Act is to insure trade remedies against imports pursuant to
and promote the constitutional mandate Sections 711, 712 and 713 of this Act;
regarding appointments only according to
(b) Study the impact of tariff policies and
merit and fitness, and to provide within the
programs on national competitiveness
public service a progressive system of
and consumer welfare in line with the
personnel administration to insure the
economic objectives of the government;
maintenance of an honest, efficient,
progressive and courteous civil service in (c) Administer the Philippine tariff
the Philippines. schedules and tariff nomenclatures;
(d) Issue advance rulings on tariff
classification of imported goods and
SEC. 1602. Official Seal. – The
render rulings on disputes over tariff
Commission is authorized to adopt an
classification of goods pursuant to Section
official seal.
1100 of this Act, except in cases involving
goods on which the Commission has
provided advance ruling on tariff
classification;
(e) Provide the President and Congress
with independent analysis, information
and technical support on matters related to
tariff and nontariff measures affecting
Philippine industries and exports for policy
guidance;
(f) Analyze the nature and composition, • Promulgates rules and
and the classification of goods regulations necessary to
according to tariff commodity classification carry out the Commission's
and heading number for customs and other mandate, functions, and
related purposes, which information shall be programs;
furnished the NEDA, DTI, DA, DOF, DENR, • Formulates policies and
and BSP; guidelines for the preparation
of the Commission's budget;
(g) Review the trade agreements for
negotiation and trade agreements entered
into by the Philippines and make Functions of the Finance, Management
recommendations, if necessary, on the and Administrative Service (FMAS)
consistency of the terms of the agreements
with the national policy objectives;  Plans, directs, coordinates, and
supervises all matters pertaining to
(h) Conduct public consultations and fiscal management and budgetary
public hearings pursuant to its functions; appropriations;
and  Develops, plans, and programs
objectives relative to management,
(i) Deputize or delegate, to appropriate
improvement, and utilization of
government agency its function of
information technology in the
rendering rulings on disputes over tariff
Commission;
classification of goods, until the plantilla
 Develops, plans, and administers
positions necessary for undertaking such
function have been approved and filled-up: human resource development
Provided, That such delegation of function programs that include hiring and
shall not extend beyond three (3) years placement, position classification
from the effectivity of this Act. and compensation, performance
evaluation, employee relations, and
welfare services;
 Coordinates and collaborates with
Functions of the Office of the
other directorates in the
Chairperson and Commissioners (OCC)
implementation and execution of
• Advises the President in the Program Thrust of the
the promulgation of Commission;
executive orders,  Undertakes such re-programming as
regulations and decrees necessary in accordance with actual
relative to tariff and resources and availability of funds;
international trade matters  Integrates program implementation
falling within the for aggregate planning and
Commission's area of budgeting;
responsibility;  Produces and/or disseminates
• Establishes the policies and media materials in aid to the
standards for the efficient implementation of the advocacy
operation of the Commission programs of the Commission;
pursuant to the President's  Provides policy guidelines on the
program of government and procurement and storage of supplies
existing laws; in accordance with government-
 prescribed standards and provides export incentives, and other factors
general and preventive maintenance such as comparative prices of
and other general administrative domestic and imported articles and
support. related government policy.
 Issues advance rulings on tariff
classification and rulings on declared
Functions of the Research Investigation
tariff classification that is in dispute;
and International Trade Analysis Studies
 Conducts researches, studies and
(RIITAS)
monitors the effects of
Conducts research and investigation globalization/import liberalization of
under: trade; formulates policy measures to
provide relief to domestic industries;
 Section 1608 (Flexible Clause), and analyzes economic conditions
 Section 1609 (Promotion of and trends in industry profiles, trade
Foreign Trade), Section 711 laws, agreements and practices on
(Anti-Dumping Duty), trade and tariff reforms;
 Section 712 (Safeguard Duty),
 Participates in
 Section 713 (Countervailing
multilateral/plurilateral/regional/
Duty), and
bilateral tariff negotiations;
 Section 1100 (Classification
 Conducts consultations on proposed
Ruling) of the Customs
modification of duties as required to
Modernization and Tariff Act (RA
carry out and promote foreign trade
10863);
with other countries;
Conducts public hearings, investigations  Conducts investigations and
(including ocular inspection of the interested consultations to determine whether a
parties' plant facilities) and interviews with domestic industry has suffered injury
people knowledgeable of the article subject or is likely to be injured as a result of
of investigation. The process includes: a trade agreement concluded with or
entered into with another country or
 Examination and verification, other countries;
evaluation and analysis of financial  Conducts studies relating to
statements and other related tariff/non-tariff, negotiations among
documents; ASEAN countries held under the
 Proper identification of commodities, aegis of the ASEAN Economic
manufacturing process, plant-rated Cooperation and its Committee on
capacity, quality of local products Trade and Tourism;
compared with imported similar  Monitors discriminatory practices
products and identification of the against the commerce of the
level of production; and Philippines enumerated in sub-
 Studies and forecasts of the sections "a" and "b" of Section 714
economic implication of a change in of the CMTA;
the rate of duty and imposition of  Conducts studies and research on
import quotas; dispute settlement arising from the
 studies on the volume and value of implementation of international trade
imports, apparent domestic agreements;
consumption requirements, level of
unemployment, investment and
  Reinforces research activities that papers, or documents relating to the matter
study levels of competition and under investigation.
contestability in the economy;
The Commission may also request the
monitors trade practices and
views, recommendations, and assistance
activities of other countries,
of any government office, agency, or
economies, and institutions in the
instrumentality who shall be expected to
international community; and
cooperate fully with the Commission.
 Conducts continuing programs of
advocacy to promote new
developments in international trade
and tariff policy. SEC. 1606. Sworn and Verified
Statements. – The Commission may order
the taking of sworn statements at any
stage of any proceeding or investigation
SEC. 1604. Reports of the Commission. –
before it. The sworn statements must be
The Commission shall place at the
made before a person duly authorized to
disposal of the President and any
administer oaths.
Member of the Congress of the
Philippines all information at its command. The Commission is authorized to require
any importer, grower, producer,
It shall conduct such investigation and
manufacturer or seller to file with the
submit reports as may be required by the
Commission a statement, under oath, giving
President and the Congress of the
the selling prices in the Philippines of goods
Philippines.
imported, grown, produced, fabricated or
It shall likewise report to the President manufactured by such person.
and Congress on the first Monday of
December of each year and hereafter, a
statement of methods adopted and a SEC. 1607. Implementing Rules and
summary of all reports made during the Regulations. – The Commission shall
year. promulgate and adopt such rules and
regulations as may be necessary to carry
out the provisions of this Act.
SEC. 1605. Access to Documents and
Assistance to the Commission. –
RN: Key takeaway???
The Commission or its duly authorized
representative shall have access to any Section acronym para di makalimutan: 1600-1606
CApOFRAcSI xD
document, paper or record pertinent to
the subject matter under investigation, in OCC promulgation of rules and regulations chuchu,
the possession of any person, firm, co- FMAS sa financial kineme and budgeting, RIITAS
research, inv, public hearing on trade remedies and
partnership, corporation, or association advance rulings
engaged in the production, importation, or
distribution of goods under investigation, SEC. 1604. Laging first Monday of December and
report kasi nakakatamad daw magwork pag malapit
and shall have power to summon
na Christmas JK
witnesses, take testimony, administer
oaths, and to issue subpoena duces Subpoena Duces Tecum - meaning 'subpoena for
production of evidence’
tecum requiring the production of books,
 Act, including those subsequently
granted pursuant to this section.
(b) Before any recommendation is
submitted to the President by the NEDA
pursuant to the provisions of this section,
except in the imposition of an additional
duty not exceeding ten percent (10%) ad
valorem, the Commission shall conduct
an investigation and shall hold public
hearings wherein interested parties shall
be afforded reasonable opportunity to be
present, to produce evidence and to be
heard. The Commission shall also hear the
views and recommendations of any
FLEXIBLE CLAUSE government office, agency, or
instrumentality. The Commission shall
submit its findings and recommendations to
the NEDA within thirty (30) days after the
SEC. 1608. Flexible Clause. –
termination of the public hearings.
(a) In the interest of the general welfare and
(c) The power of the President to increase
national security, and, subject to the
or decrease rates of import duty within the
limitations prescribed under this Act, the
limits fixed in subsection (a) hereof shall
President, upon the recommendation of
include the authority to modify the form
the NEDA, is hereby empowered to:
of duty. In modifying the form of duty, the
1) Increase, reduce, or remove corresponding ad valorem or specific
existing rates of import duty equivalents of the duly with respect to
including any necessary change in imports from the principal competing foreign
classification. The existing rates may country for the most recent representative
be increased or decreased to any period shall be used as basis.
level, in one or several stages, but in
(d) Any order issued by the President
no case shall the increased rate of
pursuant to the provisions of this section
import duty be higher than a
shall take effect thirty (30) days after
maximum of one hundred percent
promulgation, except in the imposition of
(100%) ad valorem;
additional duty not exceeding ten percent
2) Establish import quotas or ban
(10%) ad valorem which shall take effect at
imports of any commodity, as may
the discretion of the President.
be necessary; and
3) Impose an additional duty on all (e) The power delegated to the President
imports not exceeding ten percent as provided for in this section shall be
(10%) ad valorem whenever exercised only when Congress is not in
necessary: Provided, that upon session.
periodic investigations by the
Commission and recommendation of (f) The power herein delegated may be
the NEDA, the President may cause withdrawn or terminated by Congress
a gradual reduction of rates of import through a joint resolution.
duty granted in Section 1611 of this
The NEDA shall promulgate rules and 3. What is the procedure for filing a
regulations necessary to carry out the Section 1608 petition for tariff
provisions of this section. modification?
A petitioner is required to accomplish TC
Form 3 (Request for Tariff Modification),
1. What is Section 1608 of the Customs
which is available in TC and downloadable
Modernization and Tariff Act (CMTA)?
from TC's website:
Section 1608 (Flexible Clause) of Republic
www.tariffcommission.gov.ph.
Act (R.A.) No. 10863, otherwise known as
the CMTA provides the legal basis by which
the President may:

 change the level and form of import

duties,
 impose an import quota or ban 4. Are there any fees to be paid by
imports, and petitioners?
 levy an additional duty on all
Petitions found to be meritorious under
imports.
Section 1608 are subject to a Filing Fee of
Five Thousand Pesos (P5,000.00) per
2. Who can file a Section 1608 petition tariff heading, per petitioner, which is
for tariff modification? collected prior to the conduct of the public
hearing.
Any interested party, including
domestic manufacturers, importers, A Legal Research Fund Fee of Fifty
exporters, customs brokers, and Pesos (P50.00) per tariff heading is also
government agencies, may file a collected.
Section 1608 petition for tariff
Petitioners also share in the publication
modification
cost of TC's Notice of Public Hearing (which
The Tariff Commission (TC) conducts is published in two newspapers of general
investigations on the petitions it receives circulation). A petitioner's share in the
during which public hearings are held to publication cost is based on the number of
afford interested parties a reasonable products he is petitioning for tariff
opportunity to present their views. modification and is subject of the public
hearing.
TC submits its findings and
recommendations to the National
Economic and Development Authority
(NEDA), which then schedules these for
deliberation by the Tariff and Related
Matters (TRM) Technical and Cabinet
Committees.
Final approval is granted by the NEDA
Board after which, TC prepares the
implementing Executive Order
 WHERE TO SECURE

CHECKLIST OF REQUIREMENTS

TC Form 3 (2 original and signed copies and electronic copy) TC Records Section or TC Website

Audited financial statements (1 certified true copy or electronic Petitioner

copy)

Brochures and technical specifications of subject article (2 Petitioner; Manufacturer of product

copies, 1 original and 1 photocopy and electronic copy)

Proof of payment to the publisher of the cost of publication of Publisher, two (2) newspapers of general
notices (1 certified true copy and electronic copy) circulation

Advance Ruling on Tariff Classification TC Commodities Studies Division

(1 copy of original or electronic copy), as needed

Note: This is required if the subject article is not specifically

provided in the ASEAN Harmonized Tariff Nomenclature

Product description, specifications, sample, use and Petitioner

manufacturing process
(1 original and 1 photocopy or electronic copy)
 AGENCY FEE PROCESSIN PERSON
ACTIONS S TO G TIME RESPONSIBL
CLIENT STEPS
BE E
PAID

1.1 Assess None 1 hour Tariff

the Specialist/s
completenes
Submit to TC Records Unit petition Economics,
s of the form
letter together with the accomplished and Trade and
TC Form 3 in 2 sets or email to sufficiency
TC.Assist@mail.tariffcommission.gov of Industry
.ph supporting Studies
documents Division
(ETISD)
Financial
Studies
Division
(FSD);
Commodities
Studies
Division
(CSD)

Non 15 minutes Administrative

e
None 1.2 Receive Officer V
submission (Records
s and
Officer)
assign a
TCI (TM) Administrative
Reference
Number Division
(AdmD)

1.3 Create Non 1 day Commission

Task Force e
None Chairperson III
to handle
the case
and issue
Office
Order
 AGENCY FEE PROCESSI PERSON
ACTIONS S NG TIME RESPONSIB
CLIENT STEPS
TO LE
BE
PAI
D

None 1.4 Prepare Non 1 day Task Force

and issue e
acknowledgem
ent letter of Commission
petition and
request for Chairperson
submission of III
additional
information
Administrativ
e
Officer V
(Records
Officer)
AdmD

2.1 Receive Non 15 minutes Administrativ

submitted e e
2. Submit to TC Records Unit,
additional
within 10 working days upon receipt Officer V
information
of request, the required additional (Records
information or email to
Officer)
TC.Assist@mail.tariffcommission.g
ov.ph AdmD

2.2 Review and Non 10 days

consolidate e
None Task Force
submitted
information
 AGENCY FEES PROCESSI PERSON
ACTIONS TO BE NG TIME RESPONSIB
CLIENT STEPS
PAID LE

None 2.3 Issue None 1 day Task Force

Notice of
Initiation of
Investigati Director III
on with
attached Finance,
Notice of Management
Billing to and
Petitioner
Administrativ
e
Service

Commission
Chairperson
III

3.1 Collect Filing 10 minutes Administrativ

fees and Fee: e
issue Php
Officer V
3. Pay fees to the TC Cashier Unit or Official 5,000.0
(Cashier)
through Landbank LinkBiz, LBC or Receipt 0 per
Gcash within 5 calendar days from (OR) tariff Financial
receipt of Notice of Billing heading
per Management
Petition Division
er plus (FMD)
Legal
Resear
ch Fund
Fee:
Php50.
00

3.2 None 3 days Task Force

Prepare
None
and issue
 Notice on Commission
the
Chairperson
Conduct of
III
Investigati
on and
Call for
Position Information
Papers, Systems
and post Analyst
to TC
Website PMISD

4.1 None 15 minutes Administrativ

Receive e
4. Interested parties to submit to
initial
TC Records Unit the initial position Officer V
position
papers regarding the petition in 3 (Records
papers
copies or email to
Officer)
TC.Assist@mail.tariffcommission.g
ov.ph AdmD

4.2 None 10 days Task Force

Evaluate
None
submitted
initial
position
papers

4.3 None 3 days Task Force

Prepare
None
and issue
request to Commission
petitioner
and other Chairperson
interested III
parties for
conduct
of ocular Administrativ
inspectio e
n and
Officer V
data
(Records
verificatio
n Officer)
 5.1 Conduct ocular inspection None 10 Task Force
and data verification days
5. Reply to the request
for the conduct of ocular
inspection and data
verification and facilitate
the conduct of ocular
inspection and data
verification

5.2 Prepare ocular inspection None 5 Task Force

report days
None

5.3a Prepare, issue and None 5 Task Force

publish Notice of Conduct of days
None
Public Hearing/Consultation;
and post to TC website Administrative
Officer V
(Records
5.3b Inform Petitioner to pay
the cost of publication Officer)
AdmD

Commission
Chairperson
III

Supervising
Tariff
Specialist /
Information
Systems
Analyst
PMISD
 6.1 Receive As billed 15 Administrativ
proof of by minute e
6. Pay cost of publication directly to
payment of publisher s
the publisher within 5 days from Officer V
cost of
receipt of notice of billing and (Records
publication
submit to TC Records Unit proof of
Note: Officer)
payment (original or electronic
Cost of
copy) AdmD
publicatio
n is
subject to
the rates
of
newspape
r
companie
s which
are
external
to TC

7.1 Provide None 5 PMISD

registration minute
7a. Register online for the Public
link and s
Hearing via videoconference
meeting
link to
registrants

7.1 None 1 day

Conduct
Task Force
public
7b. Attend public hearing/ consultation hearing/
at the TC Conference Room or via consultatio
n (either in- Presiding
videoconference
person or Officer
online

8.1 Receive None 15 Administrativ

final minute e
8. Submit to TC Records Unit final
position s
position paper in 3 copies within 10 Officer V
papers
days from termination of public (Records
hearing/ consultation or email at
Officer)
TC.Assist@mail.tariffcommission.gov.
ph AdmD
 AGENCY ACTIONS FEES PROCESSING PERSON
TO TIME RESPONSIBLE
CLIENT
BE
STEPS
PAID

None 8.2 Prepare and None 21 days Task Force

approve Final Report
 Draft final report
Director II / III
 Conduct of Collegial
RIITAS
Body deliberation
Board Secretary
 Finalize report
Office of the
Chairperson and
Commissioners
(OCC)
Collegial Body

8.3 Issue TC Final Report to None 1 day Task Force

the NEDA Secretary and
Collegial Body
DTI Secretary copy
None furnished the TCTRM Administrative
Chairperson and the
Committee on Tariff and Officer V (Records
Related Matters (CTRM) Officer),
Secretariat
 None 5 minutes* Task Force
9. Check 9.1 Prepare and post
status of weekly update of status of
Information
application application to TC website
Systems
on the TC
Website Analyst Planning,
Management and
Information
Systems Division
PMISD

PROMOTION OF FOREIGN Provided, that in modifying import duties

or fixing import quota, the requirements
TRADE
prescribed in subsection (a) of Section
1608 of this Act shall be observed:

SEC. 1609. Promotion of Foreign Trade. Provided, however, that any modification
– in import duties and the fixing of import
quotas pursuant to the various trade
(a) For the purpose of expanding foreign agreements the Philippines has entered
markets for Philippine products as a means into, shall not be subject to the
of assisting in the economic development of limitations of aforesaid subsection (a) of
the country, in overcoming domestic Section 1608.
unemployment, in increasing the purchasing
power of the Philippine peso, and in (b) The duties and other import
establishing and maintaining better relations restrictions as modified in subsection (a)
between the Philippines and other of this section, shall apply to goods which
countries, the President, shall, from time to are the growth, produce, or manufacture
time: of the specific country, whether imported
directly or indirectly, with which the
(1) Enter into trade agreements with Philippines has entered into a trade
foreign governments or instrumentalities agreement:
thereof; and
Provided, That the President may
(2) Modify import duties, including any suspend the application of any
necessary change in classification and concession to goods which are the
other import restrictions as are required growth, produce, or manufactured
or appropriate to carry out and promote product of the specific country because
foreign trade with other countries: of acts or policies which tend to defeat
the purposes set in this section, including the rates of import duties, withdraw,
the operations of international cartels; and modify or suspend, in whole or in part,
the duties and other import restrictions as any concession under any trade
negotiated shall be in force and effect from agreement, establish import quota, or
and after such time as specified in the institute such other import restrictions,
order, without prejudice to the Philippine as the NEDA recommends to be
commitments in any ratified international necessary in order to fully protect domestic
agreement or treaty. industry and the consumers, subject to the
condition that the wholesale prices of the
(c) Nothing in this section shall be
domestic products shall be reduced to, or
construed to give any authority to cancel
maintained at, the level recommended by
or reduce in any manner the
the NEDA unless, for good cause shown, an
indebtedness of any foreign country to
increase thereof, as recommended by the
the Philippines or any claim of the
NEDA is authorized by the President.
Philippines against any foreign country.
Should increases be made without such
(d) Before any trade agreement is
authority, the NEDA shall immediately notify
concluded with any foreign government
the President who shall allow the
or instrumentality thereof, reasonable public
importation of competing-products in such
notice of the intention to negotiate an
quantities as to protect the public from the
agreement with such government or
unauthorized increase in wholesale prices.
instrumentality shall be given in order that
interested persons may have an opportunity (f) This section shall not prevent the
to present their views to the Commission. effectivity of any executive agreement or
The Commission shall seek information any future preferential trade agreement with
and advice from the DTI, DA, DOF, DENR, any foreign country.
DFA and BSP, and from such other
(g) The NEDA and the Commission shall
sources as it may deem appropriate.
promulgate such reasonable procedures,
(e) In advising the President, on a trade rules and regulations as they may deem
agreement entered into by the Philippines, necessary to execute their respective
the following shall be observed: functions under this section.
(1) The Commission shall determine
whether or not the domestic industry has
1. What is Section 1609 of the Customs
suffered or is being threatened with
Modernization and Tariff Act (CMTA)?
injury and whether or not the wholesale
prices at which the domestic products are Section 1609 (Promotion of Foreign Trade)
sold are reasonable, taking into account the of Republic Act (R.A.) No. 10863, otherwise
cost of raw materials, labor, overhead, a fair known as the CMTA, provides the legal
return on investment, and the overall basis by which the President may enter
efficiency of the industry. into trade agreements with foreign
governments and modify import duties
(2) The NEDA shall evaluate the report of
and other import restrictions as part of
the Commission and submit
these trade agreements.
recommendations to the President.
2. Who can file and what are the filing
(3) Upon receipt of the report of the findings
procedures under Section 1609 for
and recommendations of the NEDA, the
petitions for tariff modification and
President may prescribe adjustments in
withdrawal/suspension of concessions number of products he is petitioning for
under international trading withdrawal/suspension of tariff
arrangements? concession and is subject of the public
consultation.
Interested parties may file their petitions
under Section 1609 with the Tariff
Commission (TC). A petitioner is required to
4. What is the timetable of a Section 1609
accomplish either TC Form 3 (Request for
investigation?
Tariff Modification) or TC Form 4 (Request
for Withdrawal/Suspension of Tariff Tariff Modification.
Concession) which are available in TC and
downloadable from TC's website: TC completes its investigation and submits
www.tariffcommission.gov.ph. its Report of Findings and
Recommendations to NEDA within thirty
TC conducts investigations on the petitions (30) days after the termination of the
it receives during which public hearings are public consultation.
held to afford interested parties reasonable
opportunity to present their views. Withdrawal or Suspension of Tariff
Concessions.
TC submits its findings and
recommendations to the National Economic Taking into account unforeseen difficulties
and Development Authority (NEDA), that stakeholders may face as the
which then schedules these for deliberation Philippines implements its international tariff
by the Tariff and Related Matters (TRM) commitments, TC investigates and submits
Technical and Cabinet Committees. its Report of Findings and recommendations
to NEDA within sixty (60) days from
Final approval is granted by the NEDA receipt of a properly documented
Board after which, TC prepares the petition.
implementing Executive Order.
Commission Order No. 02-01 provides the
rules and regulations governing the conduct
of TC's formal investigation on the
3. Are there any fees to be paid by
withdrawal and/or suspension of tariff
petitioners?
concessions.
Petitions found to be meritorious under
Section 1609 are subject to a filing fee of
Five Thousand Pesos (P5,000.00) per 5. How does one file a petition for
tariff heading, per petitioner, which is modification, withdrawal, or suspension
collected prior to the conduct of a public of tariff concession under Section 1609?
consultation.
The checklist of requirements and the step-
A Legal Research Fund Fee of Fifty by-step procedure for filing a request for
Pesos (P50.00) per tariff heading is also modification, withdrawal, or suspension of
collected. tariff concession under Section 1609 of the
CMTA can be found in the TC Citizen's
Petitioners also share in the publication
Charter uploaded on the Commission's
cost of TC's Notice of Public Consultation
website.
which is published in two (2) newspapers of
general circulation. A petitioner's share of
the publication cost is based on the
COMMISSION ORDER NO. 02-01 opportunity to be heard, to present
evidence, to respond to the
RULES AND REGULATIONS TO
presentations of other parties and to
GOVERN CONDUCT OF FORMAL
submit their views, inter alia, whether
INVESTIGATION BY THE TARIFF
the application of Section 402 would be
COMMISSION ON THE WITHDRAWAL
in the public interest.
AND/OR SUSPENSION OF
CONCESSIONS UNDER SECTION 402 OF
THE TARIFF AND CUSTOMS CODE OF
Section 6. Procedure of Public
THE PHILIPPINES
Consultation.
All interested parties may appear at the
Section 1. Determination of Prima Facie Public Consultation and present, under
Case. Within ten (10) working days from oath, evidence relevant and material
receipt by the Tariff Commission (the to the subject matter of the
"Commission") of a properly investigation. The order of the
documented petition and a completed TC Consultation shall be as follows:
Form No. 4 together with
catalogs/brochures, technical specifications  Clarificatory questions to be
or chemical composition of the product propounded by the Oppositor;
under consideration including samples and  Petitioner may answer the
the audited financial statements of the clarificatory questions of the
petitioner domestic industry, the Technical Oppositor;
Team shall submit an "issue paper" or  Clarificatory questions to be
preliminary report to the collegial body for propounded by the Petitioner;
decision whether a prima facie case exists  Oppositor may answer the
to merit the initiation of a formal clarificatory questions of the
investigation. Petitioner.

 The preliminary report shall contain
findings on the following elements: Section 8. Determination of Increased
 product comparability (whether like Volume of Imports.
product or directly competitive The Commission shall, in determining if the
product); product (under investigation) is being
 increase in the volume of imports of imported into the Philippines in increased
the like or directly competitive quantities due to unforeseen developments
product; and the effect of the grant of tariff
 serious injury or threat thereof to the concessions, take into account the
domestic industry; and recentness, suddenness, sharpness and
 causal link between the increased magnitude of the increase which can be
imports and the serious injury or considered significant.
threat thereof.
Section 4. Public Consultation. The
Commission, after due notice to the Section 9. Determination of Serious
parties, shall conduct a one (1) day Injury or Threat Thereof.
consultation to give all interested
parties affected a reasonable
The Commission shall, in determining that (2) Inability of a significant number of firms
the increase in importation of the product to carry out domestic production at a
under consideration is causing serious profit;
injury or threat to a domestic industry
(3) Significant idling of productive
producing like products or directly
facilities including the closure of plants
competitive products, evaluate the following
or underutilization of production capacity
relevant factors:
and increase in domestic inventory;
(1) The rate and amount of the increase
(4) Significant unemployment or
in imports of the products concerned in
underemployment within the domestic
absolute and relative terms;
industry;
(2) The share of the domestic market
(5) Significant reduction in the market
taken by the increased imports;
share as a proportion of estimated market
(3) Changes in the level of sales, demand;
production, productivity, capacity
(6) Growing inventories of the product
utilization, employment, profits and
being investigated whether maintained by
losses.
Philippine producers, importers, wholesalers
The Commission shall evaluate information or retailers.
on injury and increased imports covering the
While a determination of threat of serious
previous three (3) year period prior to the
injury shall include the following:
submission of the application. If the
submission was made in the second (1) Significant increase in imports into
semester of the current year, the the Philippines evidenced, among others,
information shall cover the previous three by the existence of letters of credit, supply
(3) years and the period of the current or sales contract, award of a tender, an
year for which statistical information is irrevocable offer or other similar contracts;
available. However, the period may be
adjusted to cover a shorter period in order (2) Decline in sales or market share and
to take into account other considerations downward trend in production, profits,
that will ensure the appropriateness of the wages, productivity or employment in the
chosen period, e.g. seasonality of the domestic industry and its inability to
product, availability of data. generate capital for modernization or
maintain existing levels of expenditures to
In the determination of serious injury, the research and development;
Commission shall take into account all
relevant economics factors, including but (3) Sufficient freely disposable or an
not limited to the following: imminent substantial increase in
production capacity of the foreign
(1) Decline in sales or market share and exporters including access conditions they
downward trend in production, profits, face in third country markets indicating the
wages, productivity or employment in the likelihood of substantially increased exports
domestic industry and its inability to to the Philippines; and
generate capital for modernization or
maintain existing levels of expenditures to (4) Growing inventories of the product
research and development; being investigated whether maintained by
Philippine producers, importers, wholesalers
or retailers.
Section 10. Determination of Causal Link
Between Increased Imports and Serious
Section 12. Submission of Draft Report
Injury or Threat Thereof.
of Findings for Collegial Deliberation.
In making determination with respect to
Within twenty (20) working days after the
substantial cause, the Commission shall
public consultation, a draft report of
take into account the effects of the
findings shall be submitted for Collegial
increased imports on the economic
Deliberation.
factors and indices relating to the
serious injury or threat thereof as supplied
by the domestic industry.
Section 13. Report of the Commission.
The extent of injury on the domestic industry
caused by the importation of the products The Commission shall submit its report of
shall be determined by the Commission findings and recommendation within
upon examination of all relevant evidence. thirty (30) days after the termination of
Such determination shall not be made the public consultation to the National
unless the investigation demonstrates, Economic and Development Authority
on the basis of objective evidence, the ("NEDA") for consideration of the
existence of causal link between the Committee on Tariff and Related Matters
increased import of the product under ("CTRM").
consideration and serious injury or The report shall include a description of
threat thereof to the domestic industry. Any the short- and long-term effects of the
known factors, other than increased recommendation on the petitioner, the
importation of the products under domestic industries, the consumers, the
consideration which at the same time injure workers, and the communities where
the domestic industry, shall also be production facilities of such industry are
examined and the injuries caused by these located.
factors must not be attributed to the
increased importation of the said product.
The effects of the increased imports of the
product under consideration shall be
assessed in relation to the domestic
production of the like product or directly
competitive product by separate
identification of that production based
on such criteria as production
processes, sales and profits. If such is not
possible, the effects of the increased
imports of the product under consideration
shall be assessed by the examination of the
product of the narrowest group or range
of products which includes the like or
directly competitive product for which the
necessary information is available.
 WHERE TO SECURE
CHECKLIST OF REQUIREMENTS FOR TARIFF
MODIFICATION OF TARIFF CONCESSION

TC Form 3 (2 original signed copies and electronic copy) TC Public Assistance Officer or
TC Website

Petition Letter (1 original signed copy and electronic copy) Petitioner

Audited financial statements (1 certified true copy and Petitioner

electronic copy)

Brochures and technical specifications of subject article (1 Petitioner; Manufacturer of

original and 1 photocopy or electronic copy) product

Proof of payment to the publisher of the cost Publisher, two (2) newspapers
of general circulation
of publication of notices (1 certified true copy and
electronic copy)

TC Commodities Studies
Division
Advance Ruling on Tariff Classification (1 copy of original
or electronic copy), as needed*
*Note: This is required if the subject article is not
specifically provided in the ASEAN
Harmonized Tariff Nomenclature

Product description, specifications, sample, Petitioner

use, and manufacturing process (1 original and 1
photocopy or electronic copy)

WHERE TO SECURE
CHECKLIST OF REQUIREMENTS FOR WITHDRAWAL
OR SUSPENSION OF TARIFF CONCESSION

TC Form 4 (2 original signed copies and electronic copy) TC Public Assistance Officer
or TC Website

Petition Letter (1 original signed copy and electronic copy) Petitioner

Audited financial statements (1 certified true copy and Petitioner

electronic copy)

Brochures and technical specifications of subject article (1 Petitioner; Manufacturer of

original and 1 photocopy or electronic copy) product

Proof of payment to the publisher of the cost of publication Publisher, two (2) newspapers
of notices (1 certified true copy and electronic copy) of general circulation

TC Commodities Studies
Advance Ruling on Tariff Classification (1 copy of original or Division
electronic copy), as needed*

*Note: This is required if the subject article is not specifically

provided in the ASEAN
Harmonized Tariff Nomenclature

Product description, specifications, sample, Petitioner

use, and manufacturing process (1 original and 1 photocopy
or electronic copy)

AGENCY FEE PROCESSIN PERSON

ACTIONS S TO G TIME RESPONSIBL
CLIENT STEPS
BE E
PAID

1. Submit to TC Records Unit petition 1.1 Assess None 1 hour Tariff

letter together with the accomplished the Specialist/s
TC Form 3 (for Modification of Tariff completenes
International
Concession) or TC Form 4 (for s of the form
Trade
Withdrawal or Suspension of Tariff and
Concession) and supporting sufficiency Studies
documents in 2 sets or email to of Division
TC.Assist@mail.tariffcommission.gov supporting
.ph documents (ITSD);
Financial
Studies
Division
(FSD);
 Commodities
Studies
Division
(CSD)

1.2 Receive None 15 minutes Administrative

submissions
None Officer V
and assign a
(Records
TCI (TM)
Reference Officer)
Number
Administrative
Division
(AdmD)

1.3 Create Task Force to None 1 day Commission

handle the case and
None Chairperson III
issue Office Order

None 1.4 Prepare and issue None 1 day Task Force

acknowledgement letter
of petition and request
for submission of Commission
additional information
Chairperson III

Administrative
Officer V (Records
Officer)
AdmD

2.1 Receive submitted None 15 Administrative

additional information minu
2. Submit to TC Records Officer V (Records
and; tes
Unit required additional
Officer)
information or email to
TC.Assist@mail.tariffcom AdmD
mission.gov.ph within 10
working days upon receipt
of the request
 2.2 Review and None 10 Task Force
consolidate submitted days
None
information

None 2.3 Issue Notice of None 1 day Task Force

Initiation of Investigation
with attached Notice of
Billing to Petitioner Director III
Finance,
Management and
Administrative
Service

Commission
Chairperson III

AGENCY FEES TO PROCESSI PERSON

ACTIONS BE PAID NG TIME RESPONSIB
CLIENT STEPS
LE

3.1 Collect Filing Fee: 10 minutes Administrativ

fees and Php5,000. e
3. Pay fees to the TC Cashier Unit
issue 00 per
or through Landbank LinBiz, LBC Officer V
Official tariff
or Gcash, within 5 calendar days (Cashier)
Receipt heading
from receipt of Notice of Billing
(OR) per Financial
Petitioner,
Management
plus
Division
Legal (FMD)
Research
Fund Fee:
Php50.00
 3.2 Task Force
Prepare
None None 3 days
and issue
Notice on Commission
the
Conduct of Chairperson
Investigati III
on and
Call for
Position Information
Papers,
Systems
and post
Analyst
to TC
Website PMISD

4.1 None 15 minutes Administrativ

Receive e
initial
Officer V
4. Interested parties to submit to position
(Records
TC Records Unit initial position papers
papers on the petition in 3 copies Officer)
or email to
AdmD
TC.Assist@mail.tariffcommission.g
ov.ph

AGENCY ACTIONS FEES PROCESSING PERSON

TO BE TIME RESPONSIBLE
CLIENT STEPS
PAID

None 4.2 Evaluate None 10 days Task Force

submitted initial
position papers
 None 3 days Task Force
None 4.3 Prepare and issue
request to petitioner
Commission
and other interested
parties for conduct of Chairperson III
ocular inspection and
data verification
Administrative
Officer V
(Records
Officer)
AdmD

5.1 Conduct ocular None 10 days Task Force

inspection and data
5. Reply to the
verification
request for the
conduct of ocular
inspection and data
verification and
facilitate the conduct
of ocular inspection
and data verification

5.2 Prepare ocular None 5 days Task Force

inspection report
None

AGENCY FEES TO BE PROCESSING PERSON

ACTIONS PAID TIME RESPONSIBLE
CLIENT STEPS

None 5.3a Prepare, 5 days Task Force

issue, and publish
None
Notice of Conduct
of Public Hearing Administrative
/Consultation; and Officer V
post to TC website (Records
Officer)
 5.3b Inform AdmD
Petitioner to pay
the cost of
publication of the Commission
Notice of Conduct
of PH in two (2) Chairperson III
newspapers of Supervising
general circulation Tariff
Specialist /
Information
Systems
Analyst
PMISD

6.1 Receive proof As billed by 15 minutes

of payment of cost publisher
6. Pay cost of Administrative
of publication
publication
Officer V
directly to the
Note: Cost of (Records
publisher within 5
publication is
days from receipt Officer)
subject to the
of Notice of Billing
rates of AdmD
and submit to TC
newspaper
Records Unit
companies
proof of payment
which are
(original or
external to TC
electronic copy)

7.1 Provide Non 5 PMISD

registration link e minutes
7a. Register online for the Public
and meeting link
Hearing via videoconference
to registrants

7.1 Conduct Non 1 day Task Force

public hearing/ e
7b. Attend public hearing/ consultation consultation Presiding
at the TC Conference Room or via (either in-person Officer
videoconference ing or online

8.1 Receive final Non 15

position papers e minute
8. Submit to TC Records Unit final Administrative
s
position paper in 3 copies or email at
Officer V
TC.Assist@mail.tariffcommission.gov.
(Records
ph within 10 days from termination of
public hearing/consultation Officer)
AdmD

8.2 Prepare and Non 21 days Task Force

approve Final e
None
Report
Director II / III
RIITAS
 Draft Final
Report
Board
 Conduct Secretary
of
Collegial Office of the
Body Chairperson
deliberatio and
n
Commissioner
 Finalize s
Report
(OCC)

Collegial Body

AGENCY ACTIONS FEES PROCESSING PERSON

TO BE TIME RESPONSIBLE
CLIENT
PAID
STEPS
None 8.3 Issue TC Final Report to None 1 day Task Force
the NEDA Secretary and
DTI Secretary, copy
furnished the Technical Collegial Body
Committee on Tariff and
Related Matters (TCTRM)
Chairperson and the TRM Administrative
Secretariat
Officer V
(Records
Officer),
AdmD

9.1 Update status of None 1 day* Task Force

investigation on the TC
9. Check status
Website
of investigation
Information
on the TC
Systems
Website
Analyst
PMISD

TARIFF NOMENCLATURE AND

RATE OF DUTY
SEC. 1610. General Rules for the headings, classification shall be effected as
Interpretation (GRI). follows:
–The classification of goods and its tariff (a) The heading which provides the most
nomenclature as provided pursuant to this specific description shall be preferred to
Act shall be governed by the following headings providing a more general
principles: description. However, when two (2) or more
headings each refer to part only of the
(1) The titles of sections, chapters
materials or substances contained in mixed
and subchapters are provided for
or composite goods or to part only of the
easy reference only. For legal
items in a set put up for retail sale, those
purposes, classification shall be
headings are to be regarded as equally
determined according to the terms
specific in relation to those goods, even
of the headings and any relative
if one of them gives a more complete or
section or chapter notes and,
precise description of the goods.
provided such headings or notes do
not otherwise require, according to (b) Mixtures, composite goods
the following1 provisions: consisting of different materials or made
up of different components, and goods
Rule(2)(a) Any reference in a heading to
put up in sets for retail sale, which cannot
the goods shall be taken to include a
be classified by reference to 3(a), shall be
reference to the same in their incomplete
classified as if they consisted of their
or unfinished form or state: Provided,
essential character, insofar as this criterion
That the incomplete or unfinished goods
is applicable.
have the essential character, as presented,
of the complete or finished goods. It shall (c) When goods cannot be classified by
also be taken to include a reference to the reference to 3(a) or 3(b), they shall be
same, in their complete or finished form or classified under the heading which occurs
state (or falling- to be classified as complete last in numerical order among those which
or finished by virtue of this Rule), presented equally merit consideration;
unassembled or disassembled.
Rule (4) Goods which cannot be classified
(b) Any reference in a heading to a material in accordance with the above Rules shall be
or substance shall be taken to include a classified under the heading appropriate
reference to mixtures or combinations of to the goods to which they are most
that material or substance with other akin.
materials or substances. Any reference to
Rule (5) In addition to the foregoing
goods of a given material or substance shall
provisions, the following Rules shall apply
be taken to include a reference to goods
with respect to the goods referred to therein:
consisting wholly or partly of such material
or substance. The classification of goods (a) Camera cases, musical instrument
consisting of more than one material or cases, gun cases, drawing instrument
substance shall be according to the cases, necklace cases and similar
principles of Rule 3. containers, specially shaped or fitted to
contain specific goods or set of goods,
suitable for long-term use and presented
Rule (3) When by application of Rule 2(b) or with the goods for which they are
for any other reason, goods are, prima intended, shall be classified with such
facie, classifiable under two (2) or more goods when of a kind normally sold
therewith. The Rule does not, however, The provisions of Section 104 on Rates of
apply to containers which give the whole its Import Duty of Presidential Decree No.
essential character; and 1464, otherwise known as the Tariff and
Customs Code of the Philippines of 1978,
(b) Subject to the provisions of Rule 5(a),
as amended, specifically providing for the
packing materials and packing
tariff sections, chapters, headings and
containers presented with the goods
subheadings and the rates of import duty,
therein shall be classified with the goods
shall still apply and shall supplement this
if they are of a kind normally used for
Act. There shall be levied, collected and
packing such goods. However, this
paid upon all imported goods the rates of
provision does not apply when such
duty indicated thereon except as otherwise
packing materials or packing containers
specifically provided for in this Act:
are clearly suitable for repetitive use.
Provided, That the maximum rate shall
Rule (6) For legal purposes, the not exceed one hundred percent (100%)
classification of goods in the subheadings ad valorem.
of a heading shall be determined
The rates of duty provided or subsequently
according to the terms of those
fixed pursuant to Sections 1608 and 1609 of
subheadings and any related
this Act shall be subject to periodic
subheading notes and, mutatis mutandis,
investigation by the Tariff Commission
to the above Rules, on the understanding
and may be revised by the President,
that only subheadings at the same level are
upon the recommendation of the NEDA.
comparable. For the purposes of the Rule,
the relative section and Chapter Notes also It shall also apply to all products, whether
apply, unless the context otherwise imported directly or indirectly, of all foreign
requires. countries, which do not discriminate against
Philippine export products. An additional
one hundred percent (100%) across-the-
RN: Key takeaways?> eme board duty shall be levied on the
products of any foreign country which
1. Heading notes
discriminates against Philippine export
2. Incomplete / un finished, un assembled / products.
Disassembled / automobile, Mixtures / combinations

3. Most specific -essential character - mixture,

composite, set SEC. 1612. Tariff Nomenclature and
Ruie 1 is not classifiable / Last in numerical order Rates of Export Duty. –
4. Most Akin The provisions of Section 514 on Export
5. Packaging - Special containers - depends on Products Subject to Duty and Rates of
essential character, for not repetitive use/ packing Presidential Decree No. 1464, otherwise
materials known as the Tariff and Customs Code of
Rule 1-5 are comparable kasi heading gamit, Rule 6
1978, as amended, specifically providing for
not comparable kasi subheading the export products subject to duty and
rates, shall still apply and shall supplement
this Act.
SEC. 1611. Tariff Nomenclature and
Rates of Import Duty. –
 ADMINISTRATIVE AND receipt of a properly documented
application.
JUDICIAL PROCEDURES
When a declared tariff classification of
(Chapter 1, Title XI) goods, not subject of a pending application
for advance ruling, is in dispute, the
importer, exporter, or the Bureau shall
Advance Ruling submit the matter to the Commission for
a ruling, without prejudice to the application
 binding decisions by Customs at the of Section 1106 of this Act on "protest":
request of the person concerned on Provided, That such rulings of the
specific particulars in relation to the Commission on commodity
intended importation or exportation classification shall be binding upon the
of goods. Bureau, unless the Secretary of Finance
 can be requested with regard to shall rule otherwise.
either the classification, the origin or
the Customs value of the goods in
preparation for importation or SEC. 1101. Valuation Ruling. – An
exportation. importer or exporter may file a written
Under the provisions of Article 3 of the application for an advance valuation ruling
WTO Agreement on Trade Facilitation, on the proper application of a specific
Members are required to issue advance method on customs valuation of specific
rulings regarding the tariff classification and goods as prescribed in Title VII, Chapter 1
the origin of goods in accordance with the of this Act.
provisions of that article. The application for a valuation ruling shall
Members are also encouraged to issue be filed with the Commissioner who shall
advance rulings for other areas such as issue a ruling within thirty (30) days from
Customs valuation and requirements for submission of the application form and
relief or exemption from Customs duties. supporting documents as may be
required by rules and regulations.
The key objective of advance ruling
programs is to provide decisions on the When the valuation method of goods not
classification, origin, and valuation of subject of an application for advance
commodities prior to their importation or valuation ruling or the declared customs
exportation, thus adding certainty and value is in dispute, the matter shall be
predictability to international trade and resolved in accordance with Section 1106 of
helping traders to make informed business this Act on "protest".
decisions based on legally binding rulings.

SEC. 1102. Ruling on the Rules of Origin.

An importer or exporter may file a written
SEC. 1100. Classification Ruling. – application for a ruling on whether the
An importer or exporter may file a written goods qualify as originating under the rules
application for an advance ruling on the of origin of the applicable preferential trade
tariff classification of goods with the agreement. The application for an advance
Commission. The Commission shall render ruling on origin shall be filed with the
a ruling within thirty (30) days from, Commissioner who shall act on the
application within thirty (30) days from
receipt of the application and supporting
documents as may be required by rules
and regulations.
When the declared origin of the goods, not
subject of a request for advance ruling on
origin, is in dispute, the matter shall be
resolved in accordance with Section 1106 of
this Act on "protest".

SEC. 1103. Conditions for Application

and Effect of Advance Ruling. –
An application for an advance ruling shall
cover only one (1) product or item. The
application for advance ruling shall be filed
at least ninety (90) days before the
importation or exportation of the product
or item, as the case may be.

SEC. 1104. Administrative and Judicial

Appeals. –
An aggrieved party may, within thirty (30)
days from receipt of an adverse ruling or
decision, appeal the same to the CTA
without prejudice to the authority of the
Secretary of Finance to review decisions
adverse to the government in accordance
with Sections 1127 and 1128 of this Act, as
the case may be.

SEC, 1105. Implementing Rules and

Regulations. –
The Secretary of Finance, upon the
recommendation of the Bureau and the
Commission, shall promulgate rules and
regulations to implement the preceding
provisions on advance ruling.
 COMMISSION ORDER 2017-01 supporting documents before payment of
appropriate fees and assignment of a
PROCEDURE ON APPLICATION unique application reference number
FOR AN ADVANCE RULING ON
TARIFF CLASSIFICATION
4.5. Grounds for Non-Acceptance of
RELATED TO IMPORTATION OR an Application for an Advance Ruling on
EXPORTATION OF GOODS Tariff Classification.
An application for an Advance Ruling may
not be accepted in any of the following
4.1. Who May Apply for an Advance cases:
Ruling on Tariff Classification.
a. the application is not in the
An Applicant or his/her Authorized prescribed application form;
Representative may apply for an Advance b. it is not possible to determine
Ruling. tariff classification based on the
presented information/documents;
c. the request pertains to multiple
4.2. Conditions for Application of an goods under different subheadings
Advance Ruling on Tariff Classification. as ascertained by the Commission;
d. the application is filed less than
An application for an Advance Ruling shall ninety (90) days before
cover only one product or good, as importation or exportation; or,
determined by the Commission. non-payment of filing fee.
e.

4.3. Period for Filing an Application 4.6. Submission of Additional

for an Advance Ruling on Tariff Information and On-site Verification.
Classification. Within ten (10) calendar days, the
Applications for an Advance Ruling should Commission shall acknowledge receipt
be filed at least ninety (90) days before of the application and notify the Applicant
the date of the importation or of the need for additional information and
exportation, on-site verification. However, should the
Commission deem that more
information/verification is required, it may
request information/verification from the
4.4. Procedure for Filing an
Applicant anytime during the prescribed
Application for an Advance Ruling on
period to issue a ruling.
Tariff Classification.
The Applicant should submit additional
Applicants shall submit three (3) copies of
information or allow on-site verification
the filled-out application form prescribed
within ten (10) calendar days from the
by the Commission together with supporting
receipt of notice.
documents and samples of the good, if
required. Pending submission of the additional
information or on-site verification, the
The Commission shall assess the
sufficiency of the filled-out form and its
running of the 30-day period to issue a
ruling shall stay.
Applicant, the BOC Commissioner, and
4.7. Grounds for Non-Issuance of the Secretary of Finance (Secretary).
Advance Ruling on Tariff Classification.
In the instance that the BOC deems the
The Commission -may not issue an
ruling to be adverse to the govemment, it
Advance Ruling in any of the following
shall, within five (5) days from receipt of
cases:
a copy of the Advance Ruling, elevate the
when the Applicant fails to provide any same to the Secretary of Finance for review
additional information requested within the pursuant to Section 1128 of the CMTA.
reasonable period required by the
The Secretary of Finance shall
Commission, without prejudice to the filing
automatically review the Ruling within 15
of a new application;
days from receipt of the BOC notice.
a. the goods involved are subject of a When no ruling is rendered within the
pending court litigation or of an period, the decision of the Commission is
administrative review or of an appeal deemed confirmed.
involving tariff classification;
The Commission shall be furnished a copy
b. the Applicant did not allow the
of the BOC notice of elevation and the
Commission to conduct on-site
decision of the Secretary of Finance.
verification,
c. misrepresentation; or
d. other similar cases.
4.10. Effectivity of an Advance Ruling on
In all cases, the Commission shall promptly Tariff Classification.
notify the Applicant in writing, setting out the
reasons therefor. The Advance Ruling shall be effective from
the date it is issued.

4.8. Withdrawal of Application for an

Advance Ruling on Tariff Classification. 4.11. Validity of an Advance Ruling on
Tariff Classification.
An Applicant may withdraw, in writing, its
application at any time before the issuance The Advance Ruling shall be valid for a
of an Advance Ruling. period of five (5) years from the date of its
issuance unless it is earlier revoked or
modified due to changes in facts or
circumstances on which the Advance Ruling
4.9. Issuance of an Advance Ruling on
is based
Tariff Classification.
The Commission shall issue the Advance
Ruling within thirty (30) days from 4.12. Modification or Revocation of an
receipt of the application, sufficient in Advance Ruling on Tariff Classification.
form and substance, or upon the
submission of all additional documents The Advance Ruling may be modified
required, as the case may be. whenever there is an error, change in
material facts/circumstances, change in
Original copies of the Commission's the law or judicial decision, or change in
Advance Ruling shall be furnished to the
policy, as the case may be. Modification of decision of the Secretary of Finance
Advance Ruling is of prospective pursuant to the last
application.
paragraph of Sec. 4.9 hereof, as the case
The Advance Ruling may be revoked by the may be.
Commission upon discovery of any false
or misleading material information
provided in the application, without Section 10. Periodic Review.
prejudice to the filing of criminal, civil and/or
administrative cases against the Applicant. Unless otherwise provided, this Order shall
be reviewed every three (3) years and be
In case a Ruling is revoked or modified, the amended or revised, if necessary.
Commission shall give a written notice
to the Applicant or issue a public notice
setting out the relevant facts and the basis
for the revocation or modification.
The Secretary and the BOC
Commissioner shall be furnished copy of
the issued notices at all times.

Section 5. Motion for Reconsideration.

5.1. The Applicant in an Advance Ruling
may file a motion for reconsideration with
the Commission, in writing, within ten (10)
days from receipt thereof, on the ground of
mistake of fact and excusable
negligence or newly discovered
evidence or information not discovered
during the application that if presented
may alter the result of the Advance Ruling.
The Commission shall resolve the
Applicant's motion within ten (10) days from
receipt thereof.
5.2. Only one (1) motion for
reconsideration is allowed.

Section 6. Appeal.
An appeal may be filed by the Applicant
before the Court of Tax Appeals within
thirty (30) days from receipt of the
decision of the Commission denying its
motion for reconsideration, or of the
 Section 5. Fees.
COMMISSION ORDER 2018-01
Pursuant to the Commission's relevant
RULES OF PROCEDURE ON Administrative Orders, the importer or
DISPUTES INVOLVING TARIFF exporter, upon filing of the case, shall pay
the following:
CLASSIFICATION
a. filing fee;
b. Legal Research Fund fee; and
c. other fees, as may be prescribed by
Section 4. Initiation of Tariff
the Commission
Classification Dispute.
Failure to pay the fees shall cause the non-
A dispute on tariff classification, not subject
acceptance of the case.
of a pending application for advance ruling,
can be initiated through the following: Section 6. Evaluation of Cases Endorsed
by BOC.
a. endorsement from BOC in the case
of difficult or highly technical 6.1 Within seven (7) working days from
questions on tariff classification, as receipt of the case, the Commission shall
determined by BOC; or notify the importer or exporter and, if it
b. filing of case by the importer or deems appropriate, require him/her to
exporter when BOC has a different submit additional information and/or allow
tariff classification. on-site verification to determine the proper
tariff classification of the subject goods.
In either case, the importer or exporter or
the BOC shall submit the following 6.2 Within ten (10) working days from
documentary requirements: receipt of notice, the importer or exporter
shall submit additional information
a. letter-endorsement, or ruling or
and/or allow on-site verification.
assessment reflecting the tariff
classification made by the BOC; Section 7. Evaluation of Cases Filed by
b. filled-out form prescribed by the an Importer or Exporter.
Commission (for importer or exporter
only); 7.1 Within seven (7) working days from
c. product description, brochures, receipt of the case, the Commission shall,
technical specifications; if it deems appropriate, require the importer
d. pictures of products and/or samples, or exporter to submit additional information
as may be appropriate; BOC SAD; and/or allow on-site verification to determine
and the proper tariff classification of the subject
e. affidavit or certification under oath goods.
that the goods are not subject of a 7.2 Within ten (10) working days from
pending application for advance receipt of notice, the importer or exporter
ruling (for importer or exporter only). shall submit additional information and/or
allow on-site verification.
7.3 Within five (5) working days from
receipt of the case, or receipt of additional
Section 10. Grounds for Dismissal for
information, or conduct of on-site
Cases Filed by an Importer or Exporter.
verification, the Commission shall notify
the BOC that a tariff classification dispute is The Commission may dismiss cases in any
filed before it and request comments. of the following circumstances:
7.4 Within ten (10) working days from a. when the importer or exporter fails to
receipt of the notice and the records of the provide any additional information
case, the BOC may file a comment or requested within the reasonable
submit any additional explanation or period required by the Commission;
documents to justify its findings. b. the importer or exporter did not allow
the Commission to conduct on-site
Section 8. Conduct of Hearing.
verification;
The Commission, if it deems necessary, c. misrepresentation; or
shall conduct a hearing to clarify facts d. noncompliance with these Rules or
necessary to resolve the pending any Order of the Commission.
dispute on tariff classification. The
Section 11. Motion for Reconsideration.
Commission shall accordingly notify the
Parties of the time and date of the The importer or exporter aggrieved by the
scheduled hearing. ruling of the Commission may file a motion
for reconsideration within fifteen (15) days
The hearing shell be summary and fact-
from receipt of the ruling on the ground
finding in nature and shall be presided by a
of mistake of fact and excusable
hearing officer designated by the
negligence or newly discovered
Commission.
evidence or information not discovered
Section 9. Issuance of Tariff during the proceedings that if presented
Classification Dispute Ruling. may alter the result of the Dispute Ruling.
Within twenty (20) working days from Only one (1) motion for reconsideration is
receipt of all required information or allowed.
documents or the termination of the
Section 12. Appeal.
hearing, the Commission shall issue the
appropriate ruling on the dispute furnishing Within fifteen (15) days from receipt of
the importer or exporter, BOC, and the the Order denying the motion for
Secretary of Finance their respective copy reconsideration, an appeal may be filed by
thereof. Depending on the complexity of the the importer/exporter before the Secretary
case, said period may be extended for of Finance.
another twenty (20) working days upon
prior notice to the importer/exporter and Section 13. Finality of the Ruling.
BOC. Unless a motion for reconsideration or
Pursuant to Paragraph 2, Section 1100 of an appeal is made in the manner and
the CMTA, tariff classification rulings of period prescribed herein, the ruling of the
the Commission shall be binding upon Commission shall be final and
the BOC, unless the Secretary shall rule executory.
otherwise. In accordance with Section 1100 of the
CMTA, rulings of the Commission on
commodity classification shall be binding
upon the Bureau, unless the Secretary of
Finance shall rule otherwise.

CHECKLIST OF REQUIREMENTS FOR ADVANCE RULING WHERE TO SECURE

ON TARIFF CLASSIFICATION

TC Form 1 (2 copies: 1 original and signed, 1 photocopy) TC Public Assistance

Officer or TC Website
Technical catalogue/brochure (2 copies, Manufacturer of the good
original or photocopy)
Duly certified complete product Manufacturer of the good
composition and use (2 copies, original or photocopy) and/or third-party
laboratory
Picture of product (2 copies, original or photocopy) and actual Manufacturer of the good
sample
Technical specifications (2 copies, original or photocopy) Manufacturer of the good

Manufacturing process (2 copies, original or photocopy) Manufacturer of the good

Authorization letter for the representative of importer/exporter (2 Applicant importer/exporter

copies, 1 original and 1 photocopy, with signatures and
government-issued IDs of importer/exporter and authorized
representative)
 AGENCY ACTIONS FEES TO BE PROCESSING PERSON
PAID TIME RESPONSIBLE
CLIENT STEPS

1. Accomplish TC 1.1 Assess the Shipping cost 1 hour

Form 1 in 2 sets completeness of the of sample as
with 2 sets of filled-up TC Form 1 billed by Tariff
supporting and the sufficiency third-party Specialist/s
documents and of the supporting service Commodities
present to the documents and provider. Studies Division
Tariff Specialist at sample product (as (CSD)
TC together with applicable), and
the sample endorse to the
product (as Cashier for
1
applicable ) for collection of fees
assessment.

1
Samples of large
products such as
machinery are not
accepted. Instead, ocular
inspection is conducted

2.1 Collect fees Php 510 10 minutes Administrative

from Applicant and Officer V
2. Pay fees at the TC issue Official
Cashier Unit or through Receipt then (Cashier)
Landbank Link.Biz Portal, (Php500.00
endorse to the Filing Fee Financial
LBC or GCash Records Unit for plus Management
acceptance of
application Php10.00 Division (FMD)
Legal
Research
Fund Fee)
 3.1 Receive the None 2 hours Administrative
application, assign a Officer V
3. Submit to TC Records TCC (AR) Number,
Unit 2 sets of TC Form 1 and give back 1 (Records
(with endorsement from copy of the received Officer)
the Cashier Unit), TC Form 1, together
including the complete Administrative
with attachments, to Division (AdmD)
supporting documents the Applicant

Scan received file

and endorse
application to CSD

AGENCY ACTIONS FEES PROCESSING PERSON

CLIENT STEPS TO BE TIME RESPONSIBLE
PAID
None 3.2 Assign Tariff None 4 hours Chief Tariff
Specialists to Specialist
handle the CSD
application

4.1 Prepare and None 1 day* Tariff

4. Check post weekly Specialist
status of update of status CSD
application on of application to
TC website TC website Information
Systems
Analyst
Planning,
Management
and
Information
Systems
Division
(PMISD)
CHECKLIST OF REQUIREMENTS FOR TARIFF WHERE TO SECURE
CLASSIFICATION IN DISPUTE RULING

TC Form 2 (2 copies, original and signed) TC Public Assistance

Officer or TC Website

Letter-endorsement/ ruling/ assessment from BOC (2 copies, BOC

original or photocopy)

Affidavit or certification under oath that the goods are not subject Applicant
of a pending application for advance ruling (2 copies: 1 original
and signed, 1 photocopy)

Copy of BOC Single Administrative Document (SAD) (2 copies, BOC

original or photocopy)

Technical catalogue/brochure (2 copies, original or photocopy) Manufacturer of the good

Manufacturer of the good

and/or third-party
Duly certified complete product composition and use (2 copies,
laboratory
original or photocopy)
Picture of product (2 copies, original or photocopy) and actual Manufacturer of the good
sample

Technical specifications (2 copies, original or photocopy) Manufacturer of the good

Manufacturing process (2 copies, original or photocopy) Manufacturer of the good

Authorization letter for the representative of importer/exporter (2 Applicant

copies,1 original and 1 photocopy, with signatures and importer/exporter
government-issued IDs of importer/exporter and authorized
representative)

AGENCY FEES TO PROCESSING PERSON

ACTIONS BE PAID TIME RESPONSIBLE
CLIENT STEPS

1. Accomplish TC 1.1 Assess the Shipping 1 hour Tariff

Form 2 in 2 completeness of cost of Specialist/s
copies, with 2 the filled-up TC sample as
Commodities
sets of Form 2 and the billed by
Studies Division
supporting sufficiency of the third-party
(CSD)
documents, and supporting service
present to the documents and provider
Tariff Specialist sample product
at TC, together (as applicable1),
with the sample and endorse to
products (as the Cashier for
1
applicable ) for payment of fees
assessment

1
Samples of large
products such as
machinery are not
accepted. Instead,
ocular inspection is
conducted.
 2.1 Collect fees Php 10 minutes Administrative
from Applicant 1,010.00 Officer V
2. Pay fees at the
and issue Official
TC Cashier Unit (Cashier)
Receipt then
or through
endorse to the (Php 1000 Financial
Landbank
Records Unit for Filing Fee Management
Link.Biz Portal,
acceptance of plus Php Division (FMD)
LBC or GCash
application 10.00
Legal
Research
Fund Fee)

3.1 Receive the application, None 2 Administrative

assign a TCC (DR) number, hours Officer V
3. Submit to TC
and give back 1 copy of the
Records Unit 2 copies (Records
received TC Form 2, together
of TC Form 2, including Officer)
with attachments, to the
the complete supporting
Applicant; endorse application Administrative
documents, with
to the CSD Division
endorsement from the
Cashier Unit. (AdmD)

3.2 Assign action officers to None 4

handle the request hours
None Chief Tariff
Specialist
CSD