Title VII

Import Duty and Tax

Chapter 1
Basis of Valuation

Section 700. Sequential Application of Valuation Methods.

Imported goods shall be valued in accordance with the provisions of Section
701 of this Act whenever the conditions prescribed therein are fulfilled.

Where the customs value cannot be determined under the provisions

of Section 701 of this Act, it is to be determined by proceeding sequentially
through the succeeding sections hereof to the first such section under which
the customs value can be determined. Except as provided in Section 704 of this
Act, it is only when the customs value cannot be determined under the
provisions of a particular section that the provisions of the next section in the
sequence can be used.

If the importer does not request that the order of Sections 704 and 705
of this Act be reversed, the normal order of the sequence is to be followed. If
the importer so requests but it is impossible to determine the customs value
under Section 705 of this Act, the customs value shall be determined under
Section 704.

When the customs value cannot be determined under Sections 701

through 705, it may be determined under Section 706 of this Act. (n)

Section 701. Transaction Value SystemMethod One. The

transaction value shall be the price actually paid or payable for the goods
when sold for export to the Philippines adjusted in accordance with the
provisions of tins section: Provided, That:

(a) There are no restrictions as to the disposition or use of the goods by

the buyer other than restrictions which:

(i) Are imposed or required by law or by Philippine authorities;

(ii) limit the geographical area in which the goods may be resold;
or

(iii) Do not substantially affect the value of the goods:

 (b) The sale or price is not subject to some condition or consideration
for which a value cannot be determined with respect to the goods being
valued; and

(c) The buyer and the seller are not related, or where the buyer and the
seller are related, that the transaction value is acceptable for customs purposes
under the provisions hereof.

For purposes of this Act, persons shall be deemed related only if:

(i) They are officers or directors of one another's business;

(ii) They are legally recognized partners in business;

(iii) There exists an employer-employee relationship between

them;

(iv) Any person directly or indirectly owns, controls or holds

five percent (5%) or more of the outstanding voting stocks or shares of
both seller and buyer;

(v) One of them directly or indirectly controls the other;

(vi) Both of them are directly or indirectly controlled by a third

person;

(vii) Together they directly or indirectly control a third person;

or

(viii) They are members of the same family, including those

related by affinity or consanguinity up to the fourth civil degree.

Persons who are associated in business with one another in that one is
the sole agent, sole distributor or sole concessionaire, however described, of
the other shall be deemed to be related for the purposes of this Act if they fall
within any of the eight (8) cases cited in the preceding paragraph.

In a sale between related persons, the transaction value shall be

accepted as basis for customs valuation whenever the importer demonstrates
that such value closely approximates one of the following occurring at or about
the same time:

(a) The transaction value in sales to unrelated buyers of identical or

similar goods for export to the same country of importation;
 (b) The customs value of identical or similar goods as determined
under the provisions of Section 704 of this Act; or

(c) The customs value of identical or similar goods are determined

under the provisions of Section 705 of this Act.

In determining the transaction value, the following shall be added to

the price actually paid or payable for the imported goods:

(1) To the extent that they are incurred by the buyer but are not
included in the price actually paid or payable for the imported goods:

(a) Commissions and brokerage fees except buying commissions;

(b) Cost of containers;

(c) Cost of packing, whether for labor or materials;

(d) Value, apportioned as appropriate, of the following goods and

services: materials, components, parts and similar items incorporated in the
imported goods; tools; dies; moulds and similar items used in the production
of imported goods; materials consumed in the production of the imported
goods; and engineering, development, artwork, design work and plans and
sketches undertaken elsewhere than in the Philippines and necessary for the
production of imported goods, where such goods and services are supplied
directly or indirectly by the buyer free of charge or at a reduced cost for use in
connection with the production and sale for export of the imported goods; and

(e) Amount of royalties and license fees related to the goods being
valued that the buyer must pay either directly or indirectly, as a condition of
sale of the goods to the buyer.

(2) Value of any part of the proceeds of any subsequent resale, disposal
or use of the imported goods that accrues directly or indirectly to the seller;

(3) Cost of transport of the imported goods from the port of exportation
to the port of entry in the Philippines;

(4) Loading, unloading and handling charges associated with the

transport of the imported goods from the country of exportation to the port of
entry in the Philippines; and

(5) Cost of insurance.

 All additions to the price actually paid or payable shall be made only
on the basis of objective and quantifiable data. (Sec. 201(A)

Section 702. Transaction Value of Identical GoodsMethod Two.

Where the dutiable value cannot be determined under method one, the
dutiable value shall be the transaction value of identical goods sold for export
to the Philippines and exported at or about the same time as the goods being
valued. For purposes of this section, Identical goods refer to goods which
are the same in all respects, including physical characteristics, quality and
reputation. Minor differences in appearances shall not preclude goods
otherwise conforming to the definition from being regarded as identical.

If, in applying this section, more than one transaction value of identical
goods are found, the lowest value shall be used to determine the customs
value. (Sec. 201(B)

Section 703. Transaction Value of Similar GoodsMethod Three.

Where the dutiable value cannot be determined under the preceding method,
the dutiable value shall be the transaction value of similar goods sold for
export to the Philippines and exported at or about the same time as the goods
being valued. For purposes of this section, Similar goods refer to goods
which, although not alike in all respects, have like characteristics and similar
component materials which enable them to perform the same functions and to
be commercially interchangeable. The quality of the goods, its reputation and
the existence of a trademark shall be among the factors to be considered in
determining whether goods are similar.

If, in applying this section, more than one transaction value of identical
goods are found, the lowest such value shall be used to determine the customs
value. (Sec. 201(C )

Section 704. Deductive ValueMethod Four. Where the dutiable

value cannot be determined under the preceding method, the dutiable value
shall be the deductive value unless otherwise requested by the importer as
provided in Section 700 hereof. The deductive value which shall be based on
the unit price at which the imported goods or identical or similar imported
goods are sold in the Philippines, in the same condition as when imported, in
the greatest aggregate quantity, at or about the time of the importation of the
goods being valued, to persons not related to the persons from whom they buy
such goods, subject to deductions for the following:

(1) Either the commissions usually paid or agreed to be paid or the

additions usually made for profit and general expenses in connection with
sales in such country of imported goods of the same class or kind;
 (2) The usual costs of transport and insurance and associated costs
incurred within the Philippines;

(3) Where appropriate, the costs of: (i) transport of the imported, goods
from the port of exportation to the port of entry in the Philippines; (ii) loading,
unloading and handling charges associated with the transport of the imported
goods from the country of exportation to the port of entry in the Philippines;
and (iii) insurance; and

(4) The customs duties and other national taxes payable in the
Philippines by reason of the importation or sale of the goods.

If neither the imported goods nor identical nor similar imported goods
are sold at or about the time of importation of the goods being valued in the
Philippines in the conditions they were imported, the customs value shall,
subject to the conditions set forth in the preceding paragraph, be based on the
unit price at which the imported goods or identical or similar imported goods
sold in the Philippines in the condition they were imported and at the earliest
date after the importation of the goods being valued, but before the expiration
of ninety (90) days after such importation.

If neither the imported goods nor identical nor similar imported goods
are sold in the Philippines in the condition as imported, then, if the importer
so requests, the dutiable value shall be based on the unit price at which the
imported goods, after further processing, are sold in the greatest aggregate
quantity to persons in the Philippines who are not related to the persons from
whom they buy such goods, subject to allowance for the value added by such
processing and deductions provided under subsections (1), (2), (3) and (4)
hereof. (Sec. 201(D)

Section 705. Computed ValueMethod Five. Where the dutiable value

cannot be determined under the preceding method, the dutiable value shall be
the computed value of the sum of:

(1) The cost or the value of materials and fabrication or other processing
employed in producing the imported goods;

(2) The amount for profit and general expenses equal to that usually
reflected in the sale of goods of the same class or kind as the goods being
valued which are made by producers in the country of exportation for export
to the Philippines;

(3) The freight, insurance fees and other transportation expenses for the
importation of the goods;
 (4) Any assist, if its value is not included under paragraph (1) hereof;
and

(5) The cost of containers and packing, if their values are not included
under paragraph (1) hereof.

The Bureau shall not require or compel any person not residing in the
Philippines to produce for examination, or to allow access to, any account or
other record for the purpose of determining a computed value. However,
information supplied by the producer of the goods for the purposes of
determining the customs value may be verified in another country with the
agreement of the producer and provided that said producer will give sufficient
advance notice to the government of the country in question and that the latter
does not object to the investigation. (Sec. 201E)

Section 706. Fallback ValueMethod Six. If the dutiable value cannot

be determined under the preceding methods described above, it shall be
determined by using other reasonable means and on the basis of data available
in the Philippines. If the importer so requests, the importer shall be informed
in writing of the dutiable value determined under method six and the method
used to determine such value.

No dutiable value shall be determined under method six on the basis

of:

(1) The selling price in the Philippines of goods produced in the

Philippines;

(2) A system that provides for the acceptance for customs purposes of
the higher of two (2) alternative values;

(3) The price of goods in the domestic market of the country of

exportation;

(4) The cost of production, other than computed values, that have been
determined for identical or similar goods in accordance with method five
hereof;

(5) The price of goods for export to a country other than the Philippines;

(6) Minimum customs values; or

(7) Arbitrary or fictitious values. (Sec. 201(F)

 Section 707. Ascertainment of the Accuracy of the Declared Value.
Nothing in this section shall be construed as restricting or calling into question
the right of the Bureau to ascertain the truth or accuracy of any statement,
document or declaration presented for customs valuation purposes. When a
declaration has been presented and when the Bureau has reason to doubt the
truth or accuracy of the particulars or of documents produced in support of
such declaration, it may ask the importer to provide further explanation,
including documents or other evidence, that the declared value represents the
total amount actually paid or payable for the imported goods, adjusted in
accordance with the provisions of Section 701 of this Act.

If in the course of determining the dutiable value of imported goods, it

becomes necessary to delay the final determination of such dutiable value, the
importer shall nevertheless he able to secure the release of the imported goods
upon posting of a sufficient security in an amount equivalent to the duties and
taxes in dispute conditioned on the payment of additional duties and taxes, if
any, as may be determined: Provided, That prohibited goods shall not be
released under any circumstance.

If, after receiving further information, or in the absence of a response,

the Bureau still has reasonable doubts on the truth or accuracy of the declared
value, it may deem that the customs value of the imported goods cannot be
determined under method one, without prejudice to an importer's right to
appeal pursuant to Section 1104 of this Act. Before taking a final decision, the
District Collector shall communicate to the importer, in writing if requested,
the grounds for doubting the truth or accuracy of the particulars or documents
produced and give the importer a reasonable opportunity to respond. When a
final decision is made, the Bureau shall communicate its decision and the
grounds therefor in writing. (Sec. 202)

Section 708. Exchange Rate. For the assessment and collection of

import duty upon imported goods and for other purposes, the value and prices
thereof quoted in foreign currency shall be converted into the currency of the
Philippines at the current rate of exchange or value specified or published,
from time to time, by the Bangko Sentral ng Pilipinas (BSP). (Sec. 203)

Chapter 2
Special Duties and Trade Remedy Measures

Section 709. Government's Right of Compulsory Acquisition. In

order to protect government revenues against undervaluation of goods, the
Commissioner may, motu proprio or upon the recommendation of the District
Collector, acquire imported goods under question for a price equal to their
declared customs value plus any duties already paid on the goods, payment
for which shall be made within ten (10) working days from issuance of a
warrant signed by the Commissioner for the acquisition of such goods.

An importer who is dissatisfied with a decision of the Commissioner

pertaining to this section may, within twenty (20) working days after the date
on which notice of the decision is given, appeal to the Secretary of Finance, and
thereafter if still dissatisfied, to the CTA as provided for in Section 1136 of this
Act.

Where no appeal is made by the importer, or upon reaffirmation of the

Commissioner's decision during the appeals process, the Bureau or its agents
shall sell the acquired goods pursuant to existing laws and regulations.

Nothing in this section limits or affects any other powers of the Bureau
with respect to the disposition of the goods or any liability of the importer or
any other person with respect to an offense committed in the importation of
the goods. (Sec. 2317)

Section 710. Marking of Imported Goods and Containers.

(A) Marking of Goods. Except as hereinafter provided, all goods of

foreign origin imported into the Philippines or their containers, as provided in
subsection (B) hereof shall be conspicuously marked in any official language
of the Philippines as legibly, indelibly and permanently as the nature of the
goods or container will permit and in such manner as to indicate to an ultimate
purchaser in the Philippines the name of the country of origin of the goods.
Pursuant thereto, the Commissioner shall, with the approval of the Secretary
of Finance:

(1) Determine the character of words and phrases or abbreviation

thereof which shall be acceptable as indicating the country of origin and
prescribe any reasonable method of marking, whether by printing, stenciling,
stamping, branding, labeling or by any other reasonable method, and in a
conspicuous place on the goods or container where the marking shall appear;

(2) Require the addition of other words or symbols which may be

appropriate to prevent deception or mistake as to the origin of the goods or as
to the origin of any other goods with which such imported goods is usually
combined subsequent to importation but before delivery to an ultimate
purchaser; and

(3) Authorize the exception of any goods from the requirements of

marking if:
 (i) Such goods are incapable of being marked;

(ii) Such goods cannot be marked prior to shipment to the Philippines

without injury;

(iii) Such, goods cannot be marked prior to shipment to the Philippines,

except at an expense economically prohibitive of their importation;

(iv) The marking of a container of such goods will reasonably indicate

the origin of such goods;

(v) Such goods are crude substances;

(vi) Such goods are imported for use by the importer and not intended
for sale in their imported or any other form;

(vii) Such goods are to be processed in the Philippines by the importer

or for the importer's account other than for the purpose of concealing the origin
of such goods and in such manner that any mark contemplated by this section
would necessarily be obliterated, destroyed, or permanently concealed;

(viii) An ultimate purchaser, by reason of the character of such goods

or by reason of the circumstances of their importation, must necessarily know
the country of origin of such goods even though they are not marked to
indicate their origin;

(ix) Such goods were produced more than twenty (20) years prior to
their importation into the Philippines; or

(x) Such goods cannot be marked after importation except at an

expense which is economically prohibitive, and the failure to mark the goods
before importation was not due to any purpose of the importer, producer,
seller or shipper to avoid compliance with this section.

(B) Marking of Containers. Whenever goods are exempt under

paragraph (3) of subsection (A) of this section from the requirements of
marking, the immediate container, if any, of such goods, or such other
container or containers of such goods, shall be marked in such manner as to
indicate to an ultimate purchaser in the Philippines the name of the country of
origin of such goods in any official language of the Philippines, subject to all
provisions of this section, including the same exceptions as are applicable to
goods under paragraph (3) of subsection (A).
 (C) Fine for Failure to Mark. If, at the time of importation any good or
its container, as provided in subsection (B) hereof, is not marked in accordance
with the requirements of this section, there shall be levied, collected, and paid
upon such good a marking duty of five percent (5%) of dutiable value, which
shall be deemed to have accrued at the time of importation.

(D) Release Withheld Until Marked. No imported goods held in

customs custody for inspection, examination, or assessment shall be released
until such goods or their containers shall have been marked in accordance with
the requirements of this section and until the amount of duty estimated to be
payable under subsection (C) of this section shall have been deposited.

(E) The failure or refusal of the owner or importer to mark the goods as
herein required within a period of thirty (30) days after due notice shall
constitute as an act of abandonment of said goods and their disposition shall
be governed by the provisions of this Act relative to abandonment of imported
goods. (Sec. 303)

Section 711. Dumping Duty. The provisions of Republic Act No.

8752, otherwise known as the Anti-Dumping Act of 1999, are hereby
adopted.1 (Sec. 301)

1
SEC. 301. Anti-Dumping Duty.1 -

(a) Whenever any product, commodity or article of commerce imported into the Philippines at an export
price less than its normal value in the ordinary course of trade for the like product, commodity or article destined for
consumption in the exporting country is causing or is threatening to cause material injury to a domestic industry, or
materially retarding the establishment of a domestic industry producing the like product, the Secretary of Trade and
Industry, in the case of non-agricultural product, commodity or article, or the Secretary of Agriculture, in the case of
agricultural product, commodity or article (both of whom are hereinafter referred to as the "Secretary", as the case may
be), after formal investigation and affirmative finding of the Tariff Commission (hereinafter referred to as the
"Commission"), shall cause the imposition of an anti-dumping duty equal to the margin of dumping on such product,
commodity or article and on like product, commodity or article thereafter imported to the Philippines under similar
circumstances, in addition to ordinary duties, taxes and charges imposed by law on the imported product, commodity
or article. However, the anti-dumping duty may be less than the margin if such lesser duty will be adequate to remove
the injury to the domestic industry. Even when all the requirements for the imposition have been fulfilled, the decision
whether or not to impose a definitive anti-dumping duty remains the prerogative of the Commission. It may consider,
among others, the effect of imposing an anti-dumping duty on the welfare of consumers and/or the general public, and
other related local industries.
In the case where products are not imported directly from the country of origin but are exported to the
Philippines from an intermediate country, the price at which the products are sold from the country of export to the
Philippines shall normally be compared with the comparable price in the country of export. However, comparison may
be made with the price in the country of origin, if for example, the products are merely transshipped through the country
of export, or such products are not produced in the country of export, or there is no comparable price for them in the
country of export.
(b) Initiation of Action. - An anti-dumping investigation may be initiated upon receipt of a written
application from any person, whether natural or juridical, representing a domestic industry, which shall include
evidence of (a) dumping, (b) injury, and (c) causal link between the dumped imports and the alIeged injury. Simple
assertions, unsubstantiated by relevant evidence, cannot be considered sufficient to meet the requirements of this
paragraph. The application shall contain such information as is reasonably, available to the applicant on the following:
(1) the identity of the applicant and a description of the volume and the value of the domestic production of the like
product of the applicant; (2) a complete description of the alleged dumped product, the name of the country of origin
or export under consideration, the identity of each known exporter or foreign producer, and a list of known persons
importing the product under consideration; (3) information on the normal value of the product under consideration in
the country of origin or export, and (4) information on the evolution of the volume of the alleged dumped imports, the
effect of these imports on the price of the like product in domestic market, and the consequent impact of the imports
on the domestic industry.
Philippine Trade, Agriculture or Finance Attachs and other Consular Officials or Attachs in the concerned
exporting member countries are mandated to furnish the applicant pertinent information or documents to support his
complaint within a period not exceeding thirty (30) days from receipt of a request.
The application shall be filed with the Secretary of Trade and Industry in the case of non-agricultural
product, commodity or article, or with the Secretary of Agriculture in the case of agricultural product, commodity or
article. The Secretary shall require the petitioner to post a surety bond in such reasonable amount as to answer for any
and all damages which the importer may sustain by reason of the filing of a frivolous petition. He shall immediately
release the surety bond upon making an affirmative preliminary determination.
The application shall be considered to have been made "'by or on behalf of the domestic industry" if it is
supported by those domestic producers whose collective output constitutes more than fifty percent (50%) of the total
production of the like product produced by that portion of the domestic industry expressing either support for or
opposition to the application. In cases involving an exceptionally large number of producers the degree of support and
opposition may be determined by using a statistically valid sampling technique or by consulting their representative
organizations. However, no investigation shall be initiated when domestic producers expressly supporting the
application account for less than twenty -five percent (25%) total production of the like product produced by the
domestic industry.
In exceptional circumstances, the Philippines may be divided into two or more competitive markets and the
producers within each market may be regarded as a separate industry if (a) the producers within such market have the
dominant market share; and (b) the demand in that market is not substantially supplied by other producers elsewhere
in the Philippines.
If in special circumstances, the Secretary decides to initiate an investigation without having received a
written application by or on behalf of a domestic industry for the initiation of such investigation, he shall proceed only
if he has sufficient evidence of dumping, injury and a causal link, to justify the initiation of an investigation.
Within five (5) working days from receipt of a properly documented application, the Secretary shall examine
the accuracy and adequacy of the petition to determine whether there is sufficient evidence to justify the initiation of
investigation. If there is no sufficient evidence to justify initiation, the Secretary shall dismiss the petition and properly
notify the Secretary of Finance, the Commissioner of Customs, and other parties concerned regarding such dismissal.
The Secretary shall extend legal, technical, and other assistance to the concerned domestic producers and their
organizations at all stages of the anti-dumping action.
(c) Notice to the Secretary of Finance. - Upon receipt of the application, the Secretary shall, without delay,
notify the Secretary of Finance and furnish him with a complete copy of the application, or information in case the
initiation is made on his own motion including its annexes, if any. The Secretary of Finance shall immediately inform
the Commissioner of Customs regarding the filing and pendency of the application or information and instruct him to
gather and to furnish the Secretary within five (5) days from receipt of the instructions of the Secretary of Finance
copies of all import entries and relevant documents covering such allegedly dumped product, commodity or article
which entered the Philippines during the last twelve (12) months preceding the date of application. The Commissioner
of Customs shall also make such similar additional reports on the number, volume, and value of the importation of the
allegedly dumped product, commodity or article to the Secretary every ten (10) days thereafter.
(d) Notice to Exporting Member-Country. - Upon receipt of a properly documented application and before
proceeding to initiate an investigation, the Secretary shall notify the government of the exporting country about the
impending anti-dumping investigation. However, the Secretary shall refrain from publicizing the application for the
initiation of the investigation before a decision has been made to initiate an investigation.
(e) Notice to Concerned Parties and Submission of Evidences. - Within two (2) days from initiation of the
investigation and after having notified the exporting country, the Secretary shall identify all interested parties, i.e.,
protestee-importer, exporter and/or foreign producer, notify and require them to submit within thirty (30) days from
receipt of such notice evidences and information or reply to the questionnaire to dispute the allegations contained in
the application. At this point, the respondent is given the opportunity to present evidences to prove that he is not
involved in dumping. He shall furnish them with a copy of the application and its annexes subject to the requirement
to protect confidential information. The notice shall be deemed to have been received five (5) days from the date on
which it was sent to the respondent or transmitted to the appropriate diplomatic representative of the exporting member,
or an official representative of the exporting territory. If the respondent fails to submit his answer, he shall be declared
in default, in which case, the Secretary shall make such preliminary determination of the case on the basis of the
information available, among others, the facts alleged in the petition and the supporting information and documents
supplied by the petitioner.
(f) Preliminary Determination. - Not later than thirty (30) working days from receipt of the answer of the
respondent importer, exporter, foreign producer, exporting member-country and other interested parties, the Secretary
shall, on the basis of the application of the aggrieved party and the answer of the respondent/s and their respective
supporting documents or information, make a preliminary determination of the application for the imposition of an
antidumping duty.
In the preliminary determination, the Secretary shall essentially determine the following:
(1) Price difference between the export price and the normal value of the article in question in the country
of export of origin;
 (2) The presence and extent of material injury or threat of injury to the domestic industry producing like
product or the material retardation of the establishment of a domestic industry; and
(3) The causal relationship between the allegedly dumped product, commodity or article and the material
injury or threat of material injury to the affected domestic industry or material retardation of the establishment of the
domestic industry.
The preliminary finding of the Secretary, together with the records of the case shall, within three (3) days,
be transmitted by the Secretary to the Commission for its immediate formal investigations. In case his preliminary
finding is affirmative, the burden of proof is shifted to the respondent to rebut the preIiminary finding. The Secretary
shall immediately issue, through the Secretary of Finance, written instructions to the Commissioner of Customs to
impose within three (3) days from receipt of instructions a cash bond equal to the provisionally estimated anti-dumping
duty but not greater than the provisionally estimated margin of dumping in addition to any other duties, taxes and
charges imposed by law on like articles. The cash bond shall be deposited with the government depository bank and
shall be held in trust for the respondent. Moreover, the posting of the cash bond shall only be required no sooner than
sixty (60) days from the date of initiation of the investigation. The date of initiation of the investigation is deemed to
be the date the Secretary publishes such notice in two (2) newspapers of general circulation. The Secretary shall cause
such publication immediately after a decision to initiate the investigation has been made. The provisional anti-dumping
duty may only be imposed for a four (4) month period which may be extended to six (6) months upon request by the
exporter/s representing a significant percentage of the trade involved. However, a provisional anti-dumping duty lower
than the provisionally estimated margin of dumping can be imposed for a period of six (6) to nine (9) months, if it is
deemed sufficient to remove or prevent the material injury.
(g) Termination of Investigation. - The Secretary or the Commission, as the case may be, shall motu
proprio terminate the investigation at any stage of the proceedings if the provisionally estimated margin of dumping is
less than two percent (2%) of export price or the volume of dumped imports or injury is negligible. The volume of
dumped imports from a particular country shall normally be regarded as negligible if it accounts for less than three
percent (3%) of the imports of the like article in the Philippines unless countries which individually account for less
than three percent (3%) of the imports of the like article in the Philippines collectively account for more than seven
percent ( 7%) of the total imports of that article.
(h) Investigation of the Commission. - Within three (3) working days upon its receipt of the records of the
case from the Secretary, the Commission shall start the formal investigation and shall accordingly notify in writing all
parties on record and, in addition, give public notice of the exact initial date, time and place of the formal investigation
through the publication of such particulars and a concise summary of the petition in two (2) newspapers of general
circulation.
In the formal investigation, the Commission shall essentially determine the following:
(1) If the article in question is being imported into, or sold in the Philippines at a price less than its normal
value; and the difference, if any, between the export price and the normal value of the article.
(2) The presence and extent of material injury or the threat thereof to the domestic industry, or the material
retardation of the establishment of a domestic industry;
(3) The existence of a causal relationship between the allegedly dumped product, commodity or article and
the material injury or threat of material injury to the affected domestic injury, or material retardation of the
establishment of a domestic industry;
(4) The anti-dumping duty to be imposed; and
(5) The duration of the imposition of the anti-dumping duty.
The Commission is hereby authorized to require any interested party to allow its access to or otherwise
provide necessary information to enable the Commission to expedite the investigation.
The formal investigation shall be conducted in a summary manner. No dilatory tactics or unnecessary or
unjustified delays shall be allowed and the technical rules of evidence used in regular court proceedings shall not be
applied.
In case any or all of the parties on record fail to submit their answers to questionnaires/position papers within
the prescribed period, the Commission shall base its findings on the best available information.
The Commission shall complete the formal investigation and submit a report of its findings, whether
favorable or not, to the Secretary within one hundred twenty (120) days from receipt of the records of the case:
Provided, however, That the Commission shall, before a final determination is made, inform all the interested parties
in writing of the essential facts under consideration which form the basis for the decision to apply definitive measures.
Such disclosure should take place in sufficient time for the parties to defend their interests.
(i) Determination of Material Injury or Threat Thereof. - The presence and extent of material injury to the
domestic industry, as a result of the dumped imports shall be determined on the basis of positive evidence and shall
require an objective examination of, but shall not be limited to the following:
(1) The rate of increase and amount of imports, either in absolute terms or relative to production or
consumption in the domestic market;
(2) The effect of the dumped imports on the price in the domestic market for like product, commodity or
article, that is, whether there has been a significant price undercutting by the dumped imports as compared with the
price of like product, commodity or article in the domestic market, or whether the effect of such imports is otherwise
to depress prices to a significant degree or prevent price increases, which otherwise would have occurred, to a
significant degree; and
 (3) The effect of the dumped imports on the domestic producers or the resulting retardation of the
establishment of a domestic industry manufacturing like product, commodity or article, including an evaluation of all
relevant economic factors and indices having a bearing on the state of the domestic industry concerned, such as, but
not limited to, actual or potential decline in output, sales, market share, profits, productivity, return on investments, or
utilization of capacity; factors affecting domestic prices; the magnitude of dumping; actual and potential negative
effects on cash flow, inventories, employment, wages, growth, and ability to raise capital or investments.
The extent of injury of the dumped imports to the domestic industry shall be determined by the Secretary
and the Commission upon examination of all relevant evidence. Any known factors other than the dumped imports
which at the same time are injuring the domestic industry shall also be examined and the injuries caused by these factors
must not be attributed to the dumped imports. The relevant evidence may include, but shall not be limited to, the
following:
(1) The volume and value of imports not sold at dumping prices;
(2) Contraction in demand or changes in consumption pattern;
(3) Trade restrictive practices and competition between foreign and domestic producers;
(4) Developments in technology; and
(5) Export performance and productivity of the domestic industry.
A determination of threat of material injury shall be based on facts and not merely on allegation, conjecture
or remote possibility. The change in circumstances which will create a situation in which the dumping will cause injury
must be clearly foreseen and imminent. In making a determination regarding the existence of a threat of material injury,
the following shall be considered, inter alia, collectively:
(1) A significant rate of increase of the dumped imports in the domestic market indicating the likelihood of
substantially increased importation;
(2) Sufficient freely disposable, or an imminent, substantial increase in capacity of the exporter indicating
the likelihood of substantially increased dumped exports to the domestic market, taking into account the availability of
other export markets to absorb any additional exports;
(3) Whether imports are entering at prices that will have significant depressing or suppressing effect on
domestic prices and will likely increase demand for further imports; and
(4) Inventories of the product being investigated.
(j) Voluntary Price Undertaking. - Anti-dumping investigation may be suspended or terminated without the
imposition of provisional measures or anti-dumping duties upon receipt of the Commission of a satisfactory voluntary
price undertaking executed by the exporter or foreign producer under oath and accepted by the affected industry that
he will increase his price or will cease exporting to the Philippines at a dumped price, thereby eliminating the material
injury to the domestic industry producing like product. Price increases under such undertakings shall not be higher than
necessary to eliminate the margin of dumping.
A price undertaking shall be accepted only after a preliminary affirmative determination of dumping and
injury caused by such dumping has been made. No price undertaking shall take effect unless it is approved by the
Secretary after a recommendation by the Commission.
Even if the price undertaking is acceptable, the investigation shall nevertheless be continued and completed
by the Commission if the exporter or foreign producer so desires or upon advice of the Secretary. The undertaking shall
automatically lapse in case of a negative finding. In case of any affirmative finding, the undertaking shall continue,
consistent with the provisions of Article VI of the GATT 1994.
(k) Cumulation of Imports. - When imports of products, commodities or articles from more than one country
are simultaneously the subject of an anti-dumping investigation, the Secretary or the Commission may cumulatively
assess the effects of such imports only if the Secretary and the Commission are convinced that:
(1) The margin of dumping established in relation to the imports from each country is more than de minimis
as defined in Subsection "g";
(2) The volume of such imports from each country is not negligible, also as defined in Subsection "g"; and
(3) A cumulative assessment of the effects of such imports is warranted in the light of the conditions of
competition between the imported products, commodities or articles, and the conditions of competition between the
imported products and the like domestic products, commodities or articles.
(l) Imposition of the Anti-Dumping Duty. - The Secretary shall, within ten (10) days from receipt of the
affirmative final determination by the Commission, issue a Department Order imposing an anti-dumping duty on the
imported product, commodity, or article, unless he has earlier accepted a price undertaking from the exporter or foreign
producer. He shall furnish the Secretary of Finance with the copy of the order and request the latter to direct the
Commissioner of Customs to collect within three (3) days from receipt thereof the definitive anti-dumping duty.
In case a cash bond has been filed. the same shall be applied to the anti-dumping duty assessed. If the cash
bond is in excess of the anti-dumping duty assessed, the remainder shall be returned to the importer immediately
including interest earned, if any: Provided, That no interest shall be payable by the government on the amount to be
returned. If the assessed anti-dumping duty is higher than the cash bond filed, the difference shall not be collected.
Upon determination of the anti-dumping duty, the Commissioner of Customs shall submit to the Secretary,
through the Secretary of Finance, certified reports on the disposition of the cash bond and the amounts of the anti-
dumping duties collected.
In case of a negative finding by the Commission, the Secretary shall issue, after the lapse of the period for
the petitioner to appeal to the Court of Tax Appeals, through the Secretary of Finance, an order for the Commissioner
of Customs for the immediate release of the cash bond to the importer. In addition, all the parties concerned shall also
be properly notified of the dismissal of the case.
(m) Period Subject to Anti-Dumping Duty. - An anti-dumping duty may be levied retroactively from the
date the cash bond has been imposed and onwards, where a final determination of injury is made, or in the absence of
provisional measures, a threat of injury has led to actual injury. Where a determination of threat of injury or material
retardation is made, anti-dumping duties may be imposed only from the date of determination thereof and any cash
bond posted shall be released in an expeditious manner. However, an anti-dumping duty may be levied on product
which were imported into the country not more than ninety (90) days prior to the date of application of the cash bond,
when the authorities determine for the dumped product in question that:
(1) There is a history of dumping which caused injury or that the importer was, or should have been, aware
that the exporter practices dumping and that such dumping would cause injury; and
(2) The injury is caused by massive dumped imports of a product in a relatively short time which in light of
the timing and the volume of the dumped imports and other circumstances (such as a rapid build-up of inventories of
the imported product) is likely to seriously undermine the remedial effect of the definitive anti-dumping duty to be
applied: Provided, That the importers concerned have been given an opportunity to comment.
No duties shall be levied retroactively pursuant to herein subsection on products entered for consumption
prior to the date of initiation of the investigation.
(n) Computation of Anti-Dumping Duty. - If the normal value of an article cannot be determined, the
provisions for choosing alternative normal value under Article VI of GATT 1994 shall apply.
If possible, an individual margin of dumping shall be determined for each known exporter or producer of
the article under investigation. In cases where the number of exporters, producers, importers or types of products
involved is so large as to make such determination impracticable, the Secretary and the Commission may limit their
examination either to a reasonable number of interested parties or products by using samples which are statistically
valid on the basis of information available to them at the time of the selection, or to the largest percentage of volume
of exports from the country in question which can reasonably be investigated.
However, if a non-selected exporter or producer submits information, the investigation must extend to that
exporter or producer unless this will prevent the timely completion of the investigation.
New exporters or producers who have not exported to the Philippines during the period of investigation will
be subject to an accelerated review. No anti-dumping duties shall be imposed during the review. Cash bonds may be
requested to ensure that in case of affirmative findings, anti-dumping duties can be levied retroactively to the date of
initiation of the review.
(o) Duration and Review of the Anti-Dumping Duty. - As a general rule, the imposition of an anti-dumping
duty shall remain in force only as long as and to the extent necessary to counteract dumping which is causing or
threatening to cause material injury to the domestic industry or material retardation of the establishment of such
industry.
However, the need for the continued imposition of the anti-dumping duty may be reviewed by the
Commission when warranted motu proprio, or upon the direction of the Secretary, taking into consideration the need
to protect the existing domestic industry against dumping.
Any interested party with substantial positive information may also petition the Secretary for a review of
the continued imposition of the anti-dumping duty: Provided, That a reasonable period of time has elapsed since the
imposition of the anti-dumping duty. Interested parties shall have the right to request the Secretary to examine: (1)
whether the continued imposition of the anti-dumping duty is necessary to offset dumping; and (2) whether the injury
would likely continue or recur if the anti-dumping duty were removed or modified, or both.
If the Commission determines that the anti-dumping duty is no longer necessary or warranted, the Secretary
shall, upon its recommendation, issue a department order immediately terminating the imposition of the anti-dumping
duty. All parties concerned shall be notified accordingly of such termination, including the Secretary of Finance and
the Commissioner of Customs.
The duration of the definitive anti-dumping duty shall not exceed five (5) years from the date of its
imposition (or from the date of the most recent review if that review has covered both dumping and injury) unless the
Commission has determined in a review initiated before that date on their own initiative or upon a duly substantiated
request made by or on behalf of the domestic industry within a reasonable time period prior to the termination date that
the termination of the anti-dumping duty will likely lead to the continuation or recurrence of dumping and injury.
The provisions of this Section regarding evidence and procedures shall apply to any review carried out under
this Subsection and any such review should be carried out expeditiously and shouId be conducted not later than one
hundred fifty (150) days from the date of initiation of such review.
(p) Judicial Review. - Any interested party in an anti-dumping investigation who is adversely affected by a
final ruling in connection with the imposition of an anti-dumping duty may file with the Court of Tax Appeals, a petition
for the review of such ruling within thirty (30) days from his receipt of notice of the final ruling: Provided, however,
That the filing of such petition for review shall not in any way stop, suspend, or otherwise hold the imposition or
collection, as the case may be, of the anti-dumping duty on the imported product, commodity or article. The rules of
procedure of the court on the petition for review filed with the Court of Tax Appeals shall be applied.
(q) Public Notices. - The Secretary or the Commission shall inform in writing all interested parties on record
and, in addition, give public notices by publishing in two (2) newspapers of general circulation when:
(1) Initiating an investigation;
(2) Concluding or suspending investigation;
 Section 712. Safeguard Duty. The provisions of Republic Act No. 8800,
otherwise known as the Safeguard Measures Act,2 are hereby adopted.

(3) Making any preliminary or final determination whether affirmative or negative;

(4) Making a decision to accept or to terminate an undertaking;
(5) Terminating a definitive anti-dumping duty.
(r) Report to be Submitted by the Bureau of Customs. - The Secretary shall regularly submit to the
Commissioner of Customs a list of imported products susceptible to unfair trade practices. The Commissioner of
Customs is hereby mandated to submit to the Secretary monthly reports covering importations of said products,
including but not limited to the following:
(1) Commercial invoice;
(2) Bill of lading;
(3) Import entries; and
(4) Pre-shipment reports.
Failure to comply with the submission of such report as provided herein shall hold the concerned officials
liable and shall be punished with a fine not exceeding the equivalent of six (6) months salary or suspension not
exceeding one (1) year.
(s) Definition of Terms. For purposes of this Act, the following definitions shall apply:
(1) Anti-dumping duty refers to a special duty imposed on the importation of a product, commodity or article
of commerce into the Philippines at less than its normal value when destined for domestic consumption in the exporting
country, which is the difference between the export price and the normal value of such product, commodity or article.
(2) Export price refers to (1) the ex-factory price at the point of sale for export; or (2) the F.O.B. price at the
point of shipment. In cases where (1) or (2) cannot be used, then the export price may be constructed based on such
reasonable basis as the Secretary or the Commission may determine.
(3) Normal value refers to a comparable price at the date of sale of the like product, commodity or article in
the ordinary course of trade when destined for consumption in the country of export.
(4) Domestic industry refers to the domestic producers as a whole of the like product or to those of them
whose collective output of the product constitutes a major proportion of the total domestic production of that product,
except when producers are related to the exporters or importers or are themselves importers of the allegedly dumped
product. The term "domestic industry" may be interpreted as referring to the rest of the producers.
(5) Dumped import/product refers to any product, commodity or article of commerce introduced into the
Philippines at an export price less than its normal value in the ordinary course of trade, for the like product, commodity
or article destined for consumption in the exporting country, which is causing or is threatening to cause material injury
to a domestic industry, or materially retarding the establishment of a domestic industry producing the like product.
(6) Like product refers to a product which is identical or alike in all respects to the product under
consideration, or in the absence of such a product, another product which although not alike in all respects, has
characteristics closely resembling those of the product under consideration.
(7) Non-selected exporter or producer refers to an exporter or producer who has not been initially chosen
as among the selected exporters or producers of the product under investigation.
(t) Administrative Support. - Upon the effectivity of this Act, the Department of Trade and Industry,
Agriculture and the Tariff Commission shall ensure the efficient and effective implementation of this Act by creating
a special unit within their agencies that will undertake the functions relative to the disposition of anti-dumping cases.
All anti-dumping duties collected shall be earmarked for the strengthening of the capabilities of these agencies to
undertake their responsibilities under this Act.
2

REPUBLIC ACT NO. 8800

AN ACT PROTECTING LOCAL INDUSTRIES BY PROVIDING SAFEGUARD MEASURES TO
BE UNDERTAKEN IN RESPONSE TO INCREASED IMPORTS AND PROVIDING PENALTIES FOR
VIOLATION THEREOF
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
CHAPTER I
GENERAL PROVISIONS
SECTION 1. Short Title. - This Act shall be known as the "Safeguard Measures Act".
SEC. 2. Declaration of Policy. - The State shall promote the competitiveness of domestic industries and
producers based on sound industrial and agricultural development policies, and the efficient use of human, natural and
technical resources. In pursuit of this goal and in the public interest, the State shall provide safeguard measures to
protect domestic industries and producers from increased imports which cause or threaten to cause serious injury to
those domestic industries and producers.
SEC. 3. Scope of Application. - This Act shall apply to products being imported into the country irrespective
of source.
SEC. 4. Definitions. - For the purposes of this Act, the following terms are defined as follows:
 (a) "Agricultural product" refers to a specific commodity under Chapters 1 to 24 of the Harmonized
System (HS) of Commodity Classification as used in the Tariff and Customs Code of the Philippines;
(b) "Commission" shall refer to the Tariff Commission;
(c) "Consumers" shall refer to natural persons or organized consumer groups who are purchasers,
lessees, recipients, or prospective purchasers, lessees, recipients of consumer products, services or credit;
(d) "Critical circumstances" shall mean circumstances where there is prima facie evidence that
increased imports, whether absolute or relative to domestic production, are a substantial cause of serious injury or threat
thereof to the domestic industry and that delay in taking action under this Act would cause damage to the industry that
would be difficult to repair;
(e) "Directly competitive products" shall mean domestically-produced substitutable products;
(f) "Domestic industry" shall refer to the domestic producers, as a whole, of like or directly
competitive products manufactured or produced in the Philippines or those whose collective output of like or directly
competitive products constitutes a major proportion of the total domestic production of those products;
(g) "Interested parties" shall include domestic producers, consumers, importers and exporters of the
products under consideration;
(h) "Like product" shall mean a domestic product which is identical, i.e., alike in all respects to the
imported product under consideration, or in the absence of such a product, another domestic product which, although
not alike in all respects, has characteristics closely resembling those of the imported product under consideration;
(i) "Market access opportunity" shall mean the percentage of the total annual volume of imports of an
agricultural product to the corresponding total volume of domestic consumption of the said product in the country in
the three (3) immediately preceding years for which data are available;
(j) "Minimum Access Volume (MAV)" is the amount of imports of an agricultural product allowed to
be imported into the country at a customs duty lower than the out-quota customs duty;
(k) "Positive adjustment to import competition" shall refer to the ability of the domestic industry to
compete successfully with imports after the termination of any safeguard measure, or to the orderly transfer of resources
to other productive pursuits; and to the orderly transition of dislocated workers in the industry to other productive
pursuits;
(l) "Price difference" is the amount obtained after subtracting the c.i.f. import price from the trigger
price;
(m) "Product" refers to articles, commodities or goods;
(n) "Secretary" shall refer to either the Secretary of the Department of Trade and Industry in the case
of non-agricultural products or the Secretary of the Department of Agriculture in the case of agricultural products;
(o) "Serious injury" shall mean a significant impairment in the position of a domestic industry after
evaluation by competent authorities of all relevant factors of an objective and quantifiable nature having a bearing on
the situation of the industry concerned, in particular, the rate and amount of the increase in imports of the product
concerned in absolute and relative terms, the share of the domestic market taken by increased imports, changes in levels
of sales, production, productivity, capacity utilization, profit and losses, and employment;
(p) "Substantial cause" means a cause which is important but not less than any other cause;
(q) "Threat of serious injury" shall be understood to mean serious injury that is imminent;
(r) "Trigger price" is the price benchmark for applying the special safeguard measure; and
(s) "Trigger volume" is the volume benchmark for applying the special safeguard measure.
CHAPTER II
GENERAL SAFEGUARD MEASURE
SEC. 5. Conditions for the Application of General Safeguard Measures. The Secretary shall apply a
general safeguard measure upon a positive final determination of the Commission that a product is being imported into
the country in increased quantities, whether absolute or relative to the domestic production, as to be a substantial cause
of serious injury or threat thereof to the domestic industry; however, in the case of non-agricultural products, the
Secretary shall first establish that the application of such safeguard measures will be in the public interest.
SEC. 6. Initiation of Action Involving General Safeguard Measure. - Any person, whether natural or
juridical, belonging to or representing a domestic industry may file with the Secretary a verified petition requesting that
action be taken to remedy the serious injury or prevent the threat thereof to the domestic industry caused by increased
imports of the product under consideration.
The petition shall include documentary evidence supporting the facts that are essential to establish:
(1) an increase in imports of like or directly competitive products;
(2) the existence of serious injury or threat thereof to the domestic
industry; and
(3) the causal link between the increased imports of the product under consideration and the serious injury
or threat thereof.
The Secretary shall review the accuracy and adequacy of the evidence adduced in the petition to determine
the existence of a prima facie case that will justify the initiation of a preliminary investigation within five (5) days from
receipt of the petition.
The Secretary may also initiate action upon the request of the President; or a resolution of the House or
Senate Committee on Agriculture, or House or Senate Committee on Trade and Commerce.
 In the absence of such a petition, the Secretary may, motu proprio, initiate a preliminary safeguard
investigation if there is evidence that increased imports of the product under consideration are a substantial cause of,
or are threatening to substantially cause, serious injury to the domestic industry.
The Secretary may extend legal, technical and other assistance to the concerned domestic producers and
their organizations at all stages of the safeguard action.
SEC. 7. Preliminary Determination - Not later than thirty (30) days from receipt of the petition or a motu
proprio initiation of the preliminary safeguard investigation, the Secretary shall, on the basis of the evidence and
submission of the interested parties, make a preliminary determination that increased imports of the product under
consideration are a substantial cause of, or threaten to substantially cause, serious injury to the domestic industry. In
the process of conducting a preliminary determination, the Secretary shall notify the interested parties and shall require
them to submit their answers within five (5) working days from receipt of such notice. The notice shall be deemed
received five (5) working days from the date of transmittal to the respondent or appropriate diplomatic representative
of the country of exportation or origin of the imported product under consideration.
When information is not applied within the above time limit set by the Secretary or if the investigation is
significantly impeded, decision will be based on the facts derived from the evidence at hand.
Upon a positive preliminary determination that increased importation of the product under consideration is
a substantial cause of, or threatens to substantially cause, serious injury to the domestic industry, the Secretary shall,
without delay, transmit its records to the Commission for immediate formal investigation.
SEC. 8. Provisional Measures. - In critical circumstances where a delay would cause damage which would
be difficult to repair, and pursuant to a preliminary determination that increased imports are a substantial cause of, or
threaten to substantially cause, serious injury to the domestic industry, the Secretary shall immediately issue, through
the Secretary of Finance, a written instruction to the Commissioner of Customs authorizing the imposition of a
provisional general safeguard measure.
Such measure shall take the form of a tariff increase, either ad valorem or specific, or both, to be paid
through a cash bond set at a level sufficient to redress or prevent injury to the domestic industry: Provided, however,
That in the case of agricultural products where the tariff increase may not be sufficient to redress or to prevent serious
injury to the domestic producer or producers, a quantitative restriction may be set. The cash bond shall be deposited
with a government depository bank and shall be held in trust for the importer who posted the bond. The duration of the
provisional measure shall not exceed two hundred (200) days from the date of imposition during which period the
requirements of the subsequent sections of this Act on the initiation of a formal investigation, notification and
consultation shall have been met: Provided, That the duration of any provisional measure shall be counted as part of
the initial period and any extension, of the imposition of the definitive final safeguard measure.
When the provisional safeguard measure is in the form of a tariff increase, such increase shall not be subject
or limited to the maximum levels of tariff as set forth in Section 401 (a) of the Tariff and Customs Code of the
Philippines.
SEC. 9. Formal Investigation. Within five (5) working days from receipt of the request from the Secretary,
the Commission shall publish the notice of the commencement of the investigation, and public hearings which shall
afford interested parties and consumers an opportunity to be present, or to present evidence, to respond to the
presentation of other parties and consumers and otherwise be heard. Evidence and positions with respect to the
importation of the subject article shall be submitted to the Commission within fifteen (15) days after the initiation of
the investigation by the Commission.
The Commission shall complete its investigation and submit its report to the Secretary within one hundred
twenty (120) calendar days from receipt of the referral by the Secretary, except when the Secretary certifies that the
same is urgent, in which case the Commission shall complete the investigation and submit the report to the Secretary
within sixty (60) days.
SEC. 10. Inspection of Evidence. - The Commission shall make available for inspection by interested parties,
copies of all evidence submitted on or before the relevant due date: Provided, however, That any information which is
by nature confidential or which is provided on a confidential basis, shall, upon cause being shown, not be disclosed
without permission of the party submitting it. Parties providing confidential information may be requested to furnish
non-confidential summaries thereof or if such parties indicate that such information cannot be summarized, the reasons
why a summary cannot be provided: Provided, further, That if the Commission finds that a request for confidentiality
is not warranted and if that party concerned is either unwilling to make the information public or to authorize its
disclosure in generalized or summary form, the Commission may disregard such information unless it can be
demonstrated to its satisfaction from appropriate sources that the information is correct.
SEC. 11. Adjustment Plan. - In the course of its investigation, the Commission shall issue appropriate notice
to representatives of the concerned domestic industry or other parties, to submit an adjustment plan to import
competition, within forty-five (45) days upon receipt of the notice, except when the Secretary certifies that the same is
urgent, in which case the adjustment plan must be submitted within thirty (30) days.
If the Commission makes an affirmative determination of injury or threat thereof, individual commitments
regarding actions such persons and entities intend to take to facilitate positive adjustment to import competition shall
be submitted to the Commission by any (a) firm in the domestic industry, (b) certified or recognized union or group of
workers in the domestic industry, (c) local community, (d) trade association representing the domestic industry, or (e)
other person or group of persons.
SEC. 12. Determination of Serious Injury or Threat Thereof. - In reaching a positive determination that the
increase in the importation of the product under consideration is causing serious injury or threat thereof to a domestic
industry producing like products or directly competitive products, all relevant factors having a bearing on the situation
of the domestic industry shall be evaluated. These shall include, in particular, the rate and amount of the increase in
imports of the products concerned in absolute and relative terms, the share of the domestic market taken by the increased
imports, and changes in the level of sales, production, productivity, capacity utilization, profits and losses, and
employment.
Such positive determination shall not be made unless the investigation demonstrates, on the basis of
objective evidence, the existence of the causal link between the increased imports of the product under consideration
and serious injury or threat thereof to the domestic industry. When factors other than increased imports are causing
injury, such injury shall not be attributed to increased imports.
SEC. 13. Adoption of Definitive Measures. - Upon its positive determination, the Commission shall
recommend to the Secretary an appropriate definitive measure, in the form of:
(a) An increase in, or imposition of, any duty on the imported product;

(b) A decrease in or the imposition of a tariff-rate quota (MAV) on the product;

(c) A modification or imposition of any quantitative restriction on the importation of the product into the
Philippines;
(d) One or more appropriate adjustment measures, including the provision of trade adjustment
assistance;
(e) Any combination of actions described in subparagraphs (a) to (d).
The Commission may also recommend other actions, including the initiation of international negotiations
to address the underlying cause of the increase of imports of the product, to alleviate the injury or threat thereof to the
domestic industry, and to facilitate positive adjustment to import competition.
The general safeguard measure shall be limited to the extent of redressing or preventing the injury and to
facilitate adjustment by the domestic industry from the adverse effects directly attributed to the increased imports:
Provided, however, That when quantitative import restrictions are used, such measures shall not reduce the quantity of
imports below the average imports for the three (3) preceding representative years, unless clear justification is given
that a different level is necessary to prevent or remedy a serious injury.
A general safeguard measure shall not be applied to a product originating from a developing country if its
share of total imports of the product is less than three percent (3%): Provided, however, That developing countries with
less than three percent (3%) share collectively account for not more than nine percent (9%) of the total imports.
The decision imposing a general safeguard measure, the duration of which is more than one (1) year, shall
be reviewed at regular intervals for purposes of liberalizing or reducing its intensity. The industry benefiting from the
application of a general safeguard measure shall be required to show positive adjustment within the allowable period.
A general safeguard measure shall be terminated where the benefiting industry fails to show any improvement, as may
be determined by the Secretary.
The Secretary shall issue a written instruction to the heads of the concerned government agencies to
implement the appropriate general safeguard measure as determined by the Secretary within fifteen (15) days from
receipt of the report.
In the event of a negative final determination, or if the cash bond is in excess of the definitive safeguard
duty assessed, the Secretary shall immediately issue, through the Secretary of Finance, a written instruction to the
Commissioner of Customs, authorizing the return of the cash bond or the remainder thereof, as the case may be,
previously collected as provisional general safeguard measure within ten (10) days from the date a final decision has
been made: Provided, That the government shall not be liable for any interest on the amount to be returned. The
Secretary shall not accept for consideration another petition from the same industry, with respect to the same imports
of the product under consideration within one (1) year after the date of rendering such a decision.
When the definitive safeguard measure is in the form of a tariff increase, such increase shall not be subject
or limited to the maximum levels of tariff as set forth in Section 401 (a) of the Tariff and Customs Code of the
Philippines.
SEC. 14. Contents of the Report by the Commission. - Based on its findings, the Commission shall submit
to the Secretary: (a) the investigation report; (b) the proposed recommendations; (c) a copy of the submitted adjustment
plan; and (d) the commitments made by the domestic industry to facilitate positive adjustment to import competition.
The report shall also include a description of the short and long-term effects of the affirmative or negative
recommendation, as the case may be, on the petitioner, the domestic industries, the consumers, the workers, and the
communities where production facilities of such industry are located.
The Commission, after submitting the report to the Secretary, shall make it available to the public except
confidential information obtained under Section 10 and publish a summary in two (2) newspapers of general circulation.
SEC. 15. Limitations on Actions. - The duration of the period of an action taken under the General Safeguard
Provisions of this Act shall not exceed four (4) years. Such period shall include the period, if any, in which provisional
safeguard relief under Section 8 was in effect.
The effective period of any safeguard measure, including any extensions thereof under Section 19 may not,
in the aggregate, exceed ten (10) years.
(1) Any additional duty, or any duty imposed under this Section may be specific and/or ad valorem. It shall
be in the amount necessary to prevent or redress or remedy the injury to the domestic industry;
 (2) If a quantitative restriction is used, such measure shall not reduce the quantity of imports below the level
of a recent period which shall be the average of imports in the last three (3) representative years for which statistics are
available, unless clear justification is given that a different level is necessary to prevent or remedy serious injury;
(3) An action described in Section 13 (a), (b), or (c) that has an effective period of more than one (1) year
shall be phased down at regular intervals within the period in which the action is in effect;
(4) Within two (2) years after the expiration of the action, the Secretary shall not accept any further petition
for the same article: Provided, however, That a safeguard measure with a duration of one hundred eighty (180) days or
less may be applied again to the same product if:
(i) At least one (1) year has elapsed since the date of introduction of the safeguard measure; and
(ii) Such measure has not been applied on the same product more than twice in the five (5) year period
immediately preceding the date of introduction of the measure.
SEC. 16. Monitoring. - So long as any action taken under Section 13 remains in effect, the Commission
shall monitor developments with respect to the domestic industry, including the progress and specific efforts made by
workers and firms in the domestic industry to make a positive adjustment to import competition.
(1) If the initial application of action taken under Section 13 exceeds three (3) years, or if an extension of
such action exceeds three (3) years, the Commission shall submit to the Secretary a report on the results of the
monitoring, not later than the date which is the midpoint of the initial period, and of each such extension, during which
the action is in effect.
(2) The Commission, in the preparation of each monitoring report, shall conduct a hearing at which
interested parties shall be given reasonable opportunity to be present, to present evidence, and to be heard.
SEC. 17. Notice of General Safeguard Measure. - The Secretary shall notify the concerned Committee on
Safeguards of the World Trade Organization:
(a) When initiating an action relating to serious injury or threat thereof and the reasons for it;
(b) When adopting a provisional general safeguard measure following a positive preliminary determination;
and
(c) When applying or extending a definitive general safeguard measure following a positive final
determination.
SEC. 18. Reduction, Modification, and Termination of Action. Action taken under Section 13 may be
reduced, modified, or terminated by the Secretary only after:
(a) Taking into account the results of the monitoring indicated in the report submitted by the Commission
under Section 16, he determines that:
(i) No adequate efforts to make a positive adjustment to import competition have been undertaken by
the domestic industry; and
(ii) Changed economic circumstances have impaired the effectiveness of action taken under Section 13.
(b) A majority of the representatives of the domestic industry submits to the Secretary, at least one (1) year
before the expiration, a petition requesting such reduction, modification, or termination on the basis that the domestic
industry has made a positive adjustment to import competition.
If reduction, modification, or termination of action is being requested for an action that has been in effect
for three (3) years or less, the petitioning industry shall submit its request to the Secretary. The Secretary shall refer the
request to the Commission which shall conduct an investigation following the procedures under Section 9, to be
completed within sixty (60) days from receipt of the request. The Commission shall submit a report to the Secretary
who shall then take action after taking into consideration conditions under Section 16 (1) and (2), not later than thirty
(30) days after receipt of the Commission's report.
SEC. 19. Extension and Re-application of Safeguard Measure .
(1) Subject to the review under Section 16, an extension of the measure may be requested by the petitioner
if the action continues to be necessary to prevent or remedy the serious injury and there is evidence that die domestic
industry is making positive adjustment to import competition.
(2) The petitioner may appeal to the Secretary at least ninety (90) days before the expiration of the measure
for an extension of the period by stating concrete reasons for the need thereof and a description of the industry's
adjustment performance and future plan. The Secretary shall immediately refer the request to the Commission.
Following the procedures required under Section 9, the Commission shall then submit a report to the Secretary not later
than sixty (60) days from its receipt of the request. Within seven (7) days from receipt of the report, the Secretary shall
issue an order granting or denying the petition. In case an extension is granted, the same shall be more liberal than the
initial application.
SEC. 20. Evaluation of Effectiveness of Action. - After termination of any action under Section 13, the
Commission shall evaluate the effectiveness of the actions taken by the domestic industry in Facilitating positive
adjustment to import competition.
The Commission shall hold a public hearing on the effectiveness of the action at which all interested parties
shall be afforded opportunity to present evidence or testimony.
CHAPTER III
SPECIAL SAFEGUARD MEASURE
FOR AGRICULTURAL PRODUCTS
SEC. 21. Authority to Impose the Special Safeguard Measure. - The Secretary of Agriculture shall issue a
department order requesting the Commissioner of Customs, through the Secretary of Finance, to impose an additional
special safeguard duty on an agricultural product, consistent with Philippine international treaty obligations, if:
 (a) Its cumulative import volume in a given year exceeds its trigger volume, subject to the conditions stated
in this Act, in Section 23 below; or but not concurrently; and
(b) Its actual c.i.f. import price is less than its trigger price subject to the conditions stated in this Act, in
Section 24 below.
SEC. 22. Initiation of Action Involving Special Safeguard Measure. - Any person, whether natural or
juridical, may request the Secretary to verify if a particular product can be imposed a special safeguard duty subject to
the conditions set in Section 21 of this Act. The request shall include data which would show that the volume of imports
of a particular product has exceeded its trigger volume or that the c.i.f. import price of a particular product has gone
below its trigger price. The Secretary shall come up with a finding within five (5) working days from the receipt of a
request.
The Secretary may, motu proprio, initiate the imposition of a special safeguard measure following the
satisfaction of the conditions for imposing the measure set in this Chapter.
SEC. 23. Determination of Special Duty Based on the Volume Test. - The special safeguard duty allowed to
be imposed on the basis of the volume test pursuant to Section 21 (a) of this Act shall be determined as follows:
(a) The trigger volume referred to in Section 21 (a) of this Act is the amount obtained, after adding the
change in the annual domestic consumption of the agricultural product under consideration, for the two (2) preceding
years for which data are available, to:
(i) One hundred twenty-five percent (125%) of the average annual volume of imports of the agricultural
product under consideration in the three (3) immediately preceding years for which data are available, hereinafter
referred to as the average import volume, if the market access opportunity is at most ten percent (10%); or
(ii) One hundred ten percent (110%) of the average annual import volume, if the market access opportunity
exceeds ten percent (10%) but is not more than thirty percent (30%); or
(iii) One hundred five percent (105%) of the average annual import volume, if the market access opportunity
exceeds thirty percent (30%):
Provided, That if the change in the volume of domestic consumption mentioned above is not taken into
account in computing the trigger volume, the trigger volume shall be equal to one hundred twenty-five percent (125%)
of the average import volume for the immediate three (3) preceding years for which data are available, unless a clear
justification is given that a different level is necessary to prevent or remedy serious injury: Provided, further, That the
trigger volume shall at least be one hundred five percent (105%) of the average imports of the agricultural product
under consideration.
(b) The special safeguard duty to be imposed subject to the conditions stated under the volume test shall be
appropriately set to a level not exceeding one-third of the applicable out-quota customs duty on the agricultural product
under consideration in the year when it is imposed: Provided, That this duty shall only be maintained until the end of
the year in which it is imposed: Provided, further, That this duty may be reduced or terminated in special cases such as
when a shortage of a particular agricultural product exists, as determined by the Secretary.
(c) In transitu volumes of imports of the agricultural product under consideration at the time the special
safeguard duty is imposed shall be exempted from the additional duty. However, such volumes shall be counted in the
computation of the cumulative volume of imports of the said agricultural product for the following year.
SEC. 24. Determination of Special Safeguard Duty Based on the Price Test. - The additional duty allowed
to be imposed on the basis of the price test pursuant to Section 21 (b) of this Act shall be determined as follows:
(a) The trigger price referred to in Section 21 (b) of this Act is the average actual c.i.f. import price or
relevant reference price of the agricultural product under consideration from 1986 to 1988, unless clear justification is
given that a different reference price is necessary to prevent or remedy serious injury. The Secretary shall publish the
list of trigger prices corresponding to each of the agricultural products covered by this Act, after the conduct of public
hearings on the subject; and
(b) The special safeguard duty to be imposed subject to the conditions stated under Section 21(b) of this Act
shall be computed as follows:
(i ) Zero, if the price difference is at most ten percent (10%) of the trigger price; or
(ii) Thirty percent (30%) of the amount by which the price difference exceeds ten percent (10%) of the
trigger price, if the said difference exceeds ten percent (10%) but is at most forty percent (40%) of the trigger price; or
(iii) Fifty percent (50%) of the amount by which the price difference exceeds forty percent (40%) of the
trigger price, plus the additional duty imposed under Section 24 (b)(ii), if the said difference exceeds forty percent
(40%) but is at most sixty percent (60%) of the trigger price; or
(iv) Seventy percent (70%) of the amount by which the price difference exceeds sixty percent (60%) of the
trigger price, plus the additional duties imposed under Section 24 (b)(ii) and (b)(iii), if the said difference exceeds sixty
percent (60%) and is at most seventy-five percent (75%) of the trigger price; or
(v) Ninety percent (90%) of the amount by which the price difference exceeds seventy-five percent (75%)
of the trigger price; plus the additional duties imposed under Section 24 (b)(ii), (b)(iii), and (b)(iv), if the said difference
exceeds seventy-five percent (75%) of the trigger price.
As far as practicable, a special safeguard measure determined under the provisions of this Section shall not
be resorted to when the volume of the imported agricultural product under consideration is declining.
SEC. 25. Agricultural Products Subject to Minimum Access Volume Commitments. - The special safeguard
duty shall not apply to the volumes of the imported agricultural product under consideration that are brought into the
country under the minimum access volume mechanism: Provided, however, That these volumes shall be included in
computing the cumulative volume of imports of the said agricultural product pursuant to Section 21 (a) of this Act.
 SEC. 26. Perishable and Seasonal Agricultural Products. Shorter time periods and different reference
prices may be used in determining the applicable special safeguard measure taking into account the special
characteristics of perishable and seasonal agricultural imports.
SEC. 27. Notice of Special Safeguard Measure. - The Secretary shall make the administration of the
safeguard measure transparent by giving notice in writing to the WTO Committee on Agriculture, in advance to the
extent practicable, but in any event within ten (10) days from the implementation of such measure: Provided, however,
That for perishable and seasonal agricultural products, notification shall be made from the first action in any period.
The notice shall include relevant data or as may be deemed necessary, information and methods used in
cases where changes in consumption volumes must be allocated to individual tariff lines subject to action under Chapter
III of this Act.
Where a special safeguard measure action is taken under the provisions of this Act, the Secretary shall
consult with interested WTO members and provide all relevant information on the conditions of the application of such
action.
SEC. 28. Duration of Special Safeguard Measures.- The special safeguard measures for agricultural
products shall lapse with the duration of the reform process in agriculture as determined in the WTO. Thereafter,
recourse to safeguard measures shall be subject to the provisions on general safeguard measures as provided in Chapter
II of this Act.
CHAPTER IV
SPECIAL PROVISIONS
SEC. 29. Judicial Review. - Any interested party who is adversely affected by the ruling of the Secretary in
connection with the imposition of a safeguard measure may file with the Court of Tax Appeals, a petition for review
of such ruling within thirty (30) days from receipt thereof: Provided, however, That the filing of such petition for review
shall not in any way stop, suspend or otherwise toll the imposition or collection of the appropriate tariff duties or the
adoption of other appropriate safeguard measures, as the case may be.
The petition for review shall comply with the same requirements and shall follow the same rules of
procedure and shall be subject to the same disposition as in appeals in connection with adverse rulings on tax matters
to the Court of Appeals.
SEC. 30. Penalty Clause. - Any government official or employee who shall fail to initiate, investigate, and
implement the necessary actions as provided in this Act and the rules and regulations to be issued pursuant hereto, shall
be guilty of gross neglect of duty and shall suffer the penalty of dismissal from public service and absolute
disqualification from holding public office.
SEC. 31. Prohibition of Concurrent Recourse to Safeguard Measures. - There shall be no recourse to the
use of the general safeguard measure under Chapter II of this Act concurrently with the special safeguard measure as
provided for under Chapter III of this Act and vice-versa.
SEC. 32. Issuance of Implementing Rules and Regulations. - Within sixty (60) days after the effectivity of
this Act, the Department of Agriculture and the Department of Trade and Industry in consultation with the Department
of Finance, the Bureau of Customs, the National Economic and Development Authority, and the Tariff Commission,
after consultations with domestic industries and with the approval of the Congressional Oversight Committee which is
hereby created under this Act, shall promulgate the necessary rules and regulations to implement this Act.
SEC. 33. Oversight. - There shall be a Congressional Oversight Committee composed of the Chairmen of
the Committee on Trade and Industry, the Committee on Ways and Means, and the Committee on Agriculture of both
the Senate and the House of Representatives to oversee the implementation of this Act.
SEC. 34. Administrative System Support. - Upon the effectivity of this Act, any sum as may be necessary
for the Department of Agriculture, the Department of Trade and Industry, and the Tariff Commission to undertake their
functions efficiently and effectively shall be included in the General Appropriations Act.
The aforementioned government agencies are hereby authorized to collect such fees, charges, and safeguard
duties that are deemed necessary. Fifty percent (50%) of the revenue collected from such fees, charges, and safeguard
duties shall be set aside in a Remedies Fund which shall be earmarked for the use of these agencies in the
implementation of remedies, including the safeguard measures. The remaining fifty percent (50%) shall be deposited
under a special account to be created in the National Treasury and shall be earmarked for competitiveness enhancement
measures for the industries affected by the increased imports. The disposition thereof shall be determined through the
General Appropriations Act.
SEC. 35. Assistance to Farmers and Fisherfolk. - To safeguard and enhance the interest of farmers and
fisherfolk, nothing in this Act shall in any manner affect the provisions of Republic Act No. 8435, otherwise known as
the Agriculture and Fisheries Modernization Act.
SEC. 36. Conditions for Application of Safeguard Measures. - In the application of any safeguard measure
under this Act, the following conditions must be observed:
All actions must be transparent and shall not allow any anti-competitive, monopolistic or manipulative
business devise; and
Pursuant to the non-impairment clause of the Constitution, nothing in this Act shall impair the obligation
of existing supply contracts.
SEC. 37. Separability Clause. - If any provision of this Act is held invalid, the other provisions of this Act
not affected shall remain in force and effect.
 Section 713. Countervailing Duty. The provisions of Republic Act No.
8751, otherwise known as An Act Strengthening the Mechanisms for the
Imposition of Countervailing Duties on Imported Subsidized Products,
Commodities or Articles of Commerce in Order to Protect Domestic Industries
from Unfair Trade Competition, Amending for the Purpose Section 302, Part
2, Title II, Book I of Presidential Decree No. 1464, otherwise known as the
Tariff and Customs Code of the Philippines, as Amended, are hereby
adopted.3 (Sec. 302)

SEC. 38. Repealing Clause. - All laws, decrees, rules and regulations, executive or administrative orders
and such other presidential issuances as are inconsistent with any of the provisions of this Act are hereby repealed,
amended or otherwise modified accordingly.
SEC. 39. Effectivity Clause. - This Act shall take effect fifteen (15) days following its complete publication
in two (2) newspapers of general circulation or in the Official Gazette, whichever comes earlier.
APPROVED: July 19, 2000
3
SEC. 302. Countervailing Duty.3
Whenever any product, commodity or article of commerce is granted directly or indirectly by the
government in the country of origin or exportation, any kind or form of specific subsidy upon the production,
manufacture or exportation of such product, commodity or article, and the importation of such subsidized product,
commodity or article has caused or threatens to cause material injury to a domestic industry or has materially retarded
the growth or prevents the establishment of a domestic industry as determined by the Tariff Commission (hereinafter
referred to as the 'Commission') the Secretary of Trade and Industry, in the case of non-agricultural product, commodity
or article, or the Secretary of Agriculture, in the case of agricultural product, commodity or article (both of whom are
hereinafter simply referred to as the Secretary,' as the case may be) shall issue a department order imposing a
countervailing duty equal to the ascertained amount of the subsidy. The same levy shall be imposed on the like product,
commodity or article thereafter imported to the Philippines under similar circumstances. The countervailing duty shall
be in addition to any ordinary duties, taxes and charges imposed by law on such imported product, commodity or article.
(A) Initiation of Action. - A countervailing action may be initiated by the following:
(1) Any person, whether natural or juridical who has an interest to protect, by filing a verified petition for
the imposition of a countervailing duty by or on behalf of the domestic industry;
(2) The Secretary of Trade and Industry or the Secretary of Agriculture, as the case may be, in special
circumstances where there is sufficient evidence of existence of a subsidy, injury and causal link.
(B) Requirements. - A petition shall be filed with the Secretary and shall be accompanied by documents, if
any, which are reasonably available to the petitioner and which contain information supporting the facts that are
essential to establish the presence of the elements for the imposition of countervailing duty and shall further state,
among others;
(1) The domestic industry to which the petitioner belongs and the particular domestic product, commodity
or article or class of domestic product, commodity or article being prejudiced;
(2) The number of persons employed, the total capital invested, the production and sales volume, and the
aggregate production capacity of the domestic industry that has been materially injured or is threatened to be materially
injured or whose growth or establishment has been materially retarded or prevented;
(3) The name and address of the known importer, exporter, or foreign producer, the country of origin or
export, the estimated aggregate or cumulative quantity, the port and the date of arrival, the import entry declaration of
the imported product, commodity or article, as well as the nature, the extent and the estimated amount of the subsidy
thereon; and
(4) Such other particulars, facts or allegations as are necessary to justify the imposition of countervailing
duty on the imported product, commodity or article.
A petition for the imposition of a countervailing duty shall be considered to have been made 'by or on behalf
of the domestic industry' if it is supported by those domestic producers whose collective output constitutes more than
fifty percent (50%) of the total production of the like product produced by that portion of the domestic industry
expressing either support for or opposition to the application. However, an investigation shall be initiated only when
domestic producers supporting the application account for at least twenty-five percent (25%) of the total production of
the like product produced by the domestic industry. In cases involving an exceptionally large number of producers,
degree of support or opposition may be determined by using statistically valid sampling techniques or by consulting
their representative organizations.
Within ten (10) days from his receipt of the petition or information, the Secretary shall review the accuracy
and adequacy of the information or evidence provided in the petition to determine whether there is sufficient basis to
justify the initiation of an investigation. If there is no sufficient basis to justify the initiation of an investigation, the
Secretary shall dismiss the petition and shall properly notify the Secretary of Finance, the Commissioner of Customs
and other parties concerned regarding such dismissal. The Secretary shall extend legal, technical and other assistance
to the concerned domestic producers and their organizations at all stages of the countervailing action.
(C) Notice to the Secretary of Finance. - Upon his receipt of the petition, the Secretary shall, without delay,
furnish the Secretary of Finance with a summary of the essential facts of the petition, and request the latter to
immediately inform the Commissioner of Customs regarding such petition and to instruct him to gather and secure all
import entries covering such allegedly subsidized product, commodity or article without liquidation. The Commissioner
of Customs shall submit to the Secretary a complete report on the number, volume, and value of the importation of the
allegedly subsidized product, commodity or article within ten (10) days from his receipt of the instruction from the
Secretary of Finance, and to make similar additional reports every ten (10) days thereafter.
(D) Notice to and Answer of Interested Parties. Within five (5) days from finding of the basis to initiate
an investigation, the Secretary shall notify all interested parties, and shall furnish them with a copy of the petition and
its annexes, if any. The interested parties shall, not later than thirty (30) days from their receipt of the notice, submit
their answer, including such relevant evidence or information as is reasonably available to them to controvert the
allegations of the petition. If they fail to submit their answer, the Secretary shall make such preliminary determination
of the case on the basis of the facts and/or information available.
The Secretary shall avoid, unless a decision has been made to initiate an investigation, any publicizing of
the petition. However, after receipt of a properly documented petition and before proceeding to initiate an investigation,
he shall notify the government of the exporting country about the impending investigation.
(E) Preliminary Determination. - Within twenty (20) days from his receipt of the answer of the interested
parties, the Secretary shall, on the basis of the petition of the aggrieved party and the answer of such interested parties
and their respective supporting documents or information, make a preliminary determination on whether or not a prima
facie case exists for the imposition of a provisional countervailing duty in the form of a cash bond equal to the
provisionally estimated amount of subsidy. Upon finding of a prima facie case, the Secretary shall immediately issue,
through the Secretary of Finance, a written instruction to the Commissioner of Customs to collect the cash bond, in
addition to the corresponding ordinary duties, taxes and other charges imposed by law on such product, commodity or
article. The posting of a cash bond shall be required not earlier than sixty (60) days from the date of initiation of the
investigation. The cash bond shall be deposited with a government depository bank and shall be held in trust for the
respondent importer. The application of the cash bond shall not exceed four (4) months.
The Secretary shall immediately transmit his preliminary findings together with the records of the case to
the Commission for its formal investigation.
(F) Termination of Investigation by the Secretary or the Commission. - The Secretary or the Commission,
as the case may be, shall motu proprio terminate the investigation at any stage of the proceedings if the amount of
subsidy is de minimis as defined in existing international trade agreements of which the Republic of the Philippines is
a party; or where the volume of the subsidized imported product, commodity or article, actual or potential, or the injury
is negligible.
(G) Formal Investigation by the Commission. - Immediately upon its receipt of the records of the case from
the Secretary, the Commission shall commence the formal investigation and shall accordingly notify in writing all
interested parties and, in addition, give public notice of such investigation in two (2) newspapers of general circulation.
In the formal investigation, the Commission shall essentially determine:
(1) The nature and amount of the specific subsidy being enjoyed by the imported product, commodity or
article in question;
(2) The presence and extent of the material injury or the threat thereof to, or the material retardation of the
growth, or the prevention of the establishment of, the affected domestic industry; and
(3) The existence of a causal relationship between the allegedly subsidized imported product, commodity
or article and the material injury or threat thereof to, or the material retardation of the growth, or the prevention of the
establishment of, the affected domestic industry.
The Commission is hereby authorized to require any interested party to allow it access to, or otherwise
provide necessary information to enable the Commission to expedite the investigation. In case any interested party
refuses access to, or otherwise does not provide, necessary information within a reasonable period of time or
significantly impedes the investigation, a final determination shall be made on the basis of the facts available.
The formal investigation shall be conducted in a summary manner. No dilatory tactics nor unnecessary or
unjustified delays shall be allowed, and the technical rules of evidence shall not be applied strictly.
(H) Determination of the Existence of Subsidy. A subsidy is deemed to exist:
(1) When the government or any public body in the country of origin or export of the imported product,
commodity or article extends financial contribution to the producer, manufacturer or exporter of such product,
commodity or article in the form of:
(a) Direct transfer of funds such as grants, loans or equity infusion; or
(b) Potential direct transfer of funds or assumption of liabilities such as loan guarantees; or
(c) Foregone or uncollected government revenue that is otherwise due from the producer, manufacturer or
exporter of the product, commodity or article: Provided, That the exemption of any exported product, commodity or
article from duty or tax imposed on like product, commodity or article when destined for consumption in the country
of origin and/or export or the refunding of such duty or tax, shall not be deemed to constitute a grant of a subsidy:
Provided, further, That should a product, commodity or article be allowed drawback by the country of origin or export,
only the ascertained or estimated amount by which the total amount of duties and/or internal revenue taxes was
discounted or reduced, if any, shall constitute a subsidy; or
 (d) Provision of goods or services other than general infrastructure; or
(e) Purchases of goods from the producer, manufacturer or exporter, or
(f) Payments to a funding mechanism; or
(g) Other financial contributions to a private body to carry out one or more of the activities mentioned in
subparagraphs (a) to (f) above; or
(h) Direct or indirect income or price support, and
(2) When there is a benefit conferred.
(I) Determination of Specific Subsidy. - In the determination of whether or not a subsidy is specific, the
following principles shall apply:
(1) Where the government or any public body in the country of origin or export of the imported product,
commodity or article explicitly limits access to a subsidy to certain enterprises, such subsidy shall be specific;
(2) Where such government or public body through a law or regulation establishes objective criteria and
conditions governing the eligibility for, and the amount of, a subsidy, specificity shall not exist: Provided, That the
eligibilitv is automatic and that such criteria or conditions are strictly adhered to. Objective criteria shall mean those
which are neutral, do not favor certain enterprises over others, and are economic in nature and horizontal in application,
such as number of employees or size of enterprise;
(3) In case a subsidy appears to be non-specific according to subparagraphs (1) and (2) above, but there are
reasons to believe that the subsidy may in fact be specific, factors that may be considered are: use of a subsidy program
by a limited number of certain enterprises for a relatively longer period; granting of disproportionately large amounts
of subsidy to certain enterprises; and exercise of wide and unwarranted discretion for granting a subsidy; and
(4) A subsidy which is limited to certain enterprises located within a designated geographical region within
the territory of the government or public body in the country of origin or export shall be specific.
(J) Determination of lnjury. -- The presence and extent of material injury or threat thereof to a domestic
industry, or the material retardation of the growth, or the prevention of the establishment of a nascent enterprise because
of the subsidized imports, shall be determined by the Secretary or the Commission, as the case may be, on the basis of
positive evidence and shall require an objective examination of:
(1) The volume of the subsidized imports, that is, whether there has been a significant increase either
absolute or relative to production or consumption in the domestic market;
(2) The effect of the subsidized imports on prices in the domestic market for the like product, commodity
or article, that is, whether there has been a significant price undercutting, or whether the effect of such imports is
otherwise to depress prices to a significant degree or to prevent price increases, which otherwise would have occurred
to a significant degree;
(3) The effect of the subsidized imports on the domestic producers of the like product, commodity or article,
including an evaluation of all relevant economic factors and indices having a bearing on the state of the domestic
industry concerned, such as, but not limited to, actual and potential decline in output, sales, market share, profits,
productivity, return on investments, or utilization of capacity; factors affecting domestic prices: actual or potential
negative effects on the cash flow, inventories, employment, wages, growth, ability to raise capital or investments and,
in the case of agriculture, whether there has been an increased burden on the support programs of the national
government; and
(4) Factors other than the subsidized imports which at the same time are injuring the domestic industry such
as: volumes and prices of non-subsidized imports of the product, commodity or article in question; contraction in
demand or changes in the patterns of consumption, trade restrictive practices of and competition between the foreign
and domestic producers; developments in technology and the export performance and productivity of the domestic
industry.
In determining threat of material injury, the Secretary or the Commission, as the case may be, shall decide
on the basis of facts and not merely allegation, conjecture or remote possibility. The change in circumstances which
would create a situation in which the subsidized imports would cause injury should be clearly foreseen and imminent
considering such relevant factors as:
(1) Nature of the subsidy in question and the trade effects likely to arise therefrom;
(2) Significant rate of increase of subsidized imports into the domestic market indicating the likelihood of
substantially increased importations;
(3) Sufficient freely disposable, or an imminent substantial increase in, capacity of the exporter of such
subsidized imported product, commodity or article indicating the likelihood of substantially increased subsidized
imports to the domestic market, taking into account the availability of other markets to absorb the additional exports;
(4) Whether these subsidized imports are entering at prices that will have a significant depressing or
suppressing effect on domestic prices, and will likely increase demand for further imports; and
(5) Inventories of the product, commodity, or article being investigated.
In the case where the effect of the subsidized import will materially retard the growth or prevent the
establishment of a domestic industry, information on employment, capital investments, production and sales, and
production capacity of said domestic industry can be augmented or substituted by showing through a factual study,
report or other data that an industry which has potential to grow domestically is adversely affected by the subsidized
import. For this purpose, the Department of Trade and Industry for non-agricultural products, and the Department of
Agriculture for agricultural products, shall conduct continuing studies to identify and determine the specific industries,
whether locally existing or not, which have the potential to grow or to be established domestically and whose growth
or establishment will be retarded or prevented by a subsidized import.
 (K) Cumulation of Imports. - When imports of products, commodities or articles from more than one (1)
country are simultaneously the subject of an investigation for the imposition of a countervailing duty, the Secretary or
the Commission, as the case may be, may cumulatively assess the effects of such imports only if:
(1) The amount of subsidization established in relation to the imports from each country is more than de
minimis as defined in existing international trade agreements of which the Republic of the Philippines is a party, and
(2) The volume of such imports from each country is not negligible; and
(3) A cumulative assessment of the effects of such imports is warranted in the light of the conditions of
competition between the imported products, commodities or articles, and the conditions of competition between the
imported products, commodities or articles and the like domestic products, commodities or articles.
(L) Public Notices and Consultation Proceedings. The Secretary or the Commission, as the case may be,
shall make public notices and conduct consultation with the government of the exporting country when:
(1) Initiating an investigation;
(2) Concluding or suspending an investigation;
(3) Making a preliminary or final determination;
(4) Making a decision to accept an undertaking or the termination of an undertaking; and
(5) Terminating a definitive countervailing duty.
(M) Voluntary Undertaking. -- When there is an offer from any exporter of subsidized imports to revise its
price, or where the government of the exporting country agrees to eliminate or limit the subsidy or take other measures
to that effect, the Commission shall determine if the offer is acceptable and make the necessary recommendation to the
Secretary. If the undertaking is accepted, the Secretary may advise the Commission to terminate, suspend or continue
the investigation. The Secretary may also advise the Commission to continue its investigation upon the request of the
government of the exporting country. The voluntary undertaking shall lapse if there is a negative finding of the presence
of a subsidy or material injury. In the event of a positive finding of subsidization and material injury, the undertaking
will continue, consistent with its terms and the provisions of this section.
(N) Final Determination and Submission of Report by the Commission - The Commission shall complete
the formal investigation and submit a report of its findings to the Secretary within one hundred twenty (120) days from
receipt of the records of the case: Provided, however, That it shall, before a final determination is made, inform all the
interested parties of the essential facts under consideration which form the basis for the decision to impose a
countervailing duty. Such disclosure should take place in sufficient time for the parties to defend their interests.
(O) Imposition of Countervailing Duty. - The Secretary shall, within ten (10) days from his receipt of an
affirmative final determination by the Commission, issue a department order imposing the countervailing duty on the
subsidized imported product, commodity or article. He shall furnish the Secretary of Finance with the copy of the order
and request the latter to direct the Commissioner of Customs to cause the countervailing duty to be levied, collected
and paid, in addition to any other duties, taxes and charges imposed by law on such product, commodity or article.
In case of an affirmative final determination by the Commission, the cash bond shall be applied to the
countervailing duty assessed. If the cash bond is in excess of the countervailing duty assessed, the remainder shall be
returned to the importer immediately: Provided, That no interest shall be payable by the government on the amount to
be returned. If the cash bond is less than the countervailing duty assessed, the difference shall not be collected.
If the order of the Secretary is unfavorable to the petitioner, the Secretary shall, after the lapse of the period
for appeal to the Court of Tax Appeals, issue through the Secretary of Finance a department order for the immediate
release of the cash bond to the importer.
(P) Duration and Review of Countervailing Duty. - As a general rule, any imposition of countervailing duty
shall remain in force only as long as and to the extent necessary to counteract a subsidization which is causing or
threatening to cause material injury. However, the need for the continued imposition of the countervailing duty may be
reviewed by the Commission when warranted, motu proprio or upon direction of the Secretary.
Any interested party may also petition the Secretary for a review of the continued imposition of the
countervailing duty: Provided, That at least six (6) months have elapsed since the imposition of the countervailing duty,
and upon submission of positive information substantiating the need for a review. Interested parties may request the
Secretary to examine: (1) whether the continued imposition of the countervailing duty is necessary to offset the
subsidization; and/or (2) whether the injury will likely continue or recur if the countervailing duty is removed or
modified.
If the Commission determines that the countervailing duty is no longer necessary or warranted, the Secretary
shall, upon its recommendation, immediately issue a department order terminating the imposition of the countervailing
duty and shall notify all parties concerned, including the Commissioner of Customs through the Secretary of Finance,
of such termination.
Notwithstanding the provisions of the preceding paragraphs of this subsection, any countervailing duty shall
be terminated on a date not later than five (5) years from the date of its imposition (or from the date of the most recent
review if that review has covered both subsidization and material injury), unless the Commission has determined, in a
review initiated at least six (6) months prior to the termination date upon the direction of the Secretary or upon a duly
substantiated request by or on behalf of the domestic industry, that the termination of the countervailing duty will likely
lead to the continuation or recurrence of the subsidization and material injury.
The procedure and evidence governing the disposition of the petition for the imposition of countervailing
duty shall equally apply to any review carried out under this subsection. Such review shall be carried out expeditiously
and shall be concluded not later than ninety (90) days from the date of the initiation of such a review.
 Section 714. Discrimination by Foreign Countries. Without
prejudice to the Philippine commitment in any ratified international
agreements or treaty, the following recourse shall be applicable in case of
discrimination by foreign countries:

(a) When the President finds that the public interest will be served
thereby, the President shall, by proclamation, specify and declare new or
additional duties in an amount not exceeding one hundred percent (100%) ad
valorem upon goods wholly or in part the growth or product of, or imported in
a vessel of any foreign country whenever the President shall find as a fact that
such country:

(1) Imposes, directly or indirectly, up on the disposition or

transportation in transit or through re-exportation from such country of any
goods wholly or in part the growth or product of the Philippines, any
unreasonable charge, exaction, regulation or limitation which is not equally
enforced upon the like goods of every foreign country; or

(2) Discriminates in fact against the commerce of the Philippines,

directly or indirectly, by law or administrative regulation or practice, by or in
respect to any customs, tonnage, or port duty, fee, charge, exaction,

(Q) Judicial Review. - Any interested party who is adversely affected by the department order of the
Secretary on the imposition of the countervailing duty may file with the Court of Tax Appeals a petition for review of
such order within thirty (30) days from his receipt of notice thereof: Provided, however, That the filing of such petition
for review shall not in any way stop, suspend or otherwise toll the imposition and collection of the countervailing duty
on the imported product, commodity or article.
The petition for review shall comply with the same requirements, follow the same rules of procedure, and
be subject to the same disposition as in appeals in connection with adverse rulings on tax matters to the Court of Tax
Appeals.
(R) Definition of Terms. For purposes of this subsection, the term:
(1) Domestic industry' shall refer to the domestic producers as a whole of the like product, commodity or
article or to those of them whose collective output of the product, commodity or article constitutes a major proportion
of the total domestic production of those products except that when producers are related to the exporters or importers
or are themselves importers of the allegedly subsidized product or a like product from other countries, the term
'domestic industry' may be interpreted as referring to the rest of the producers. In case the market in the Philippines is
divided into two or more competitive markets, the term 'domestic industry' shall refer to the producers within each
market although their production does not constitute a significant portion of the total domestic industry: Provided, That
there is a concentration of subsidized imports into such a separate market: and Provided, further, That the subsidized
imports are causing injury to the producers of all or almost all of the production within such market.
(2) 'Interested parties' shall include:
(a) An exporter or foreign producer or the importer of a product subject to investigation, or the government
of the exporting country or a trade or business association a majority of the members of which are producers, exporters
or importers of such product;
(b) A producer of the like product in the Philippines or a trade and business association a majority of the
members of which produce the like product in the Philippines; and
(c) Labor unions that are representative of the industry or coalitions of producers and/or labor unions.
(3) 'Like product' shall mean a product, commodity or article which is identical, i.e., alike in all respects to
the product, commodity or article or in the absence of such product, commodity or article, another product, commodity
article which although not alike in all respects, has characteristics closely resembling those of the imported product,
commodity or article under consideration.
(S) An inter-agency committee composed of the Secretaries of Trade and Industry, Agriculture, and Finance,
Chairman of the Tariff Commission, and the Commissioner of Customs shall promulgate all rules and regulations
necessary for the effective implementation of this section.
classification, regulation, condition, restriction or prohibition, in such manner
as to place the commerce of the Philippines at a disadvantage compared with
the commerce of any foreign country.

(b) If at any time the President shall find it to be a fact that any foreign
country has not only discriminated against the commerce of the Philippines,
as aforesaid, but has, after the issuance of a proclamation as authorized in
subsection (a) of this section, maintained or increased its said discrimination
against the commerce of the Philippines, the President is hereby authorized, if
deemed consistent with the interests of the Philippines and of public interest,
to issue a further proclamation directing that such product of said country or
such goods imported in their vessels be excluded from importation into the
Philippines.

(c) Any proclamation issued by the President under this section shall,
if the President deems it consistent with the interest of the Philippines, extend
to the whole of any foreign country or may be confined to any subdivision or
subdivisions thereof; Provided, That the President may, whenever the public
interest requires, suspend, revoke, supplement or amend any such
proclamation.

(d) All goods imported contrary to the provisions of this section shall
be forfeited to the government of the Philippines and shall be liable to be
seized, prosecuted and condemned in like manner and under the same
regulations, restrictions, and provisions as may from time to time he
established for the recovery, collection, distribution, and remission or
forfeiture to the government by the tariff and customs laws. Whenever the
provision of this section shall be applicable to importations into the Philippines
of goods wholly or in part the growth or product of any foreign country, it
shall be applicable thereto, whether such goods are imported directly or
indirectly.

(e) It shall be the duty of the Commission to ascertain and at all times
be informed whether any of the discriminations against the commerce of the
Philippines enumerated in subsections (a) and (b) of this section are practiced
by any country; and if and when such discriminatory acts are disclosed, it shall
be the duty of the Commission to bring the matter to the attention of the
President, and to recommend measures to address such discriminatory acts.

(f) The Secretary of Finance shall make such rules and regulations as
are necessary for the execution of a proclamation that the President may issue
in accordance with the provisions of this section. (Sec. 304)