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COMMONWEALTH ACT NO. 733COMMONWEALTH ACT NO. 733 - AN ACT
TO ACCEPT THE EXECUTIVE AGREEMENT TO BE ENTERED INTO BETWEEN THE
PRESIDENT OF THE PHILIPPINES AND THE PRESIDENT OF THE UNITED STATES
PURSUANT TO TITLE IV OF PUBLIC 371 — 79TH CONGRESS APPROVED ON APRIL
30, 1946, ENTITLED "AN ACT TO PROVIDE FOR THE TRADE RELATIONS BETWEEN
THE UNITED STATES AND THE PHILIPPINES, AND FOR OTHER PURPOSES" AND TO
AUTHORIZE THE PRESIDENT OF THE PHILIPPINES TO FORMALLY EXECUTE THE SAME
ON OR AFTER JULY 4, 1946; TO ENACT THE PROVISIONS OF PARTS 2, 3, 4, AND
5 OF TITLE III OF THE SAID ACT OF CONGRESS AS LAWS OF THE PHILIPPINES
DURING THE EFFECTIVENESS OF THE SAID EXECUTIVE AGREEMENT; AND TO
IMPLEMENT THE PENAL CLAUSES OF SAID AGREEMENT IN ORDER TO CARRY OUT
TITLE I OF THE PHILIPPINE REHABILITATION ACT OF 1946
WHEREAS,
pursuant to Title IV of Public Law 371 — 79th Congress, approved on
April thirty, nineteen hundred forty-six, entitled "An Act to Provide
for the Trade Relations Between the United States and the Philippines,
and for other purposes," the President of the United States and the
President of the Philippines have agreed to enter into an executive
agreement which reads as follows:
"AGREEMENT BETWEEN THE UNITED
STATES OF AMERICA AND THE REPUBLIC OF THE PHILIPPINES CONCERNING TRADE
AND RELATED MATTERS DURING A TRANSITIONAL PERIOD FOLLOWING THE
INSTITUTIONAL PERIOD FOLLOWING THE INSTITUTION OF PHILIPPINE
INDEPENDENCE.
"The President of the United States of America and the President of the
Philippines, recalling the close economic ties between the people of
the United States and the people of the Philippines during many years
of intimate political relations, mindful of the great physical
destruction and social disturbances suffered by the Philippines as a
result of their valiant support of the cause of the United Nations in
the war against Japan, and desiring to enter into an Agreement
accepting on the part of each country the provisions of Title II and
Title III (except Part 1) of the Philippine Trade Act of 1946 of the
United States of America, have agreed to the following Articles:
"ARTICLE I
"1.
During the period from the date of the entry into
force of this Agreement to July 3, 1954, both dates inclusive, United
States articles as defined in Subparagraph (e) of Paragraph 1 of the
Protocol to this Agreement entered, or withdrawn from warehouse, in the
Philippines for consumption, and Philippine articles as defined in
Subparagraph (f) of Paragraph 1 of the Protocol entered, or withdrawn
from warehouse, in the United States for consumption, shall be admitted
into the Philippines and the United States, respectively, free of
ordinary customs duty.
"2.
The
ordinary customs duty to be collected on United States articles as
defined in Subparagraph (e) of Paragraph 1 of the Protocol, which
during the following portions of the period from July 4, 1954, to July
3, 1974, both dates inclusive, are entered, or withdrawn from
warehouse, in the Philippines for consumption, and on Philippine
articles as defined in Sub-paragraph (f) of Paragraph 1 of the Protocol
,other than those specified in Items D to G, both inclusive, of the
Schedule to Article II, which during such portions of such period are
entered, or withdrawn from warehouse, in the United States for
consumption, shall be determined by applying the following percentages
of the Philippine duty as defined in Subparagraph (h) of Paragraph 1 of
the Protocol, and of the United States duty as defined in Subparagraph
(g) of Paragraph 1 of the Protocol, respectively:
"(a)
During the
period from July 4, 1954, to December 31, 1954, both dates inclusive,
five per centum.
"(b)
During the calendar year 1955, ten per centum.
"(c)
During each calendar year after the calendar
year 1955, until and including the calendar year 1972, a percentage
equal to the percentage for the preceding calendar year increased for
the preceding calendar year increased by five per centum of the
Philippine duty and the United States duty, respectively, as so defined.
"(d)
During the
period from January 1, 1973, to July 3, 1974, both dates inclusive, one
hundred per centum.
"3.
Customs duties on United States articles and on
Philippine articles, other than ordinary customs duties, shall be
determined without regard to the provisions of Paragraphs 1 and 2 of
this Article, but shall be subject to the provisions of Paragraph 4 of
this Article.
"4.
With respect to United States, articles imported
into the Philippines, and with respect to Philippine articles imported
into the United States, non duty on or in connection with importation
shall be collected or paid in an amount in excess of the duty imposed
with respect to like articles which are the product of any other
foreign country, or collected or paid in any amount if the duty is not
imposed with Paragraph the term 'duty' includes taxes, fees, charges,
or exactions, imposed on or in connection with importation; but does
not include internal taxes or ordinary customs duties.
"5.
With
respect to products of the United States which do not come within the
definition of United States articles, imported into the Philippines, no
duty on or in connection with importation shall be collected or paid in
an amount in excess of the duty imposed with respect to like articles
which are the product of any other foreign country, or collected or
paid in any amount if the duty is not imposed with respect to such like
articles which are the product of any other foreign country. As used in
this Paragraph the term 'duty' include taxes, fees charges, or
exactions, imposed on or in connection with importation; but does not
include internal taxes.
"6.
With respect to products of the Philippines,
which do not come within the definition of Philippine articles,
imported into the United States, no duty on or in connection with
importation shall be collected or paid in an amount in excess of the
duty imposed with respect to like articles which are the product of any
other foreign country (except Cuba), or collected or paid in any amount
if the duty is not imposed with any other foreign country (except
Cuba). As used in this Paragraph the term 'duty' included taxes, fees,
charges, or exactions, imposed on or in connection with importation;
but does not include internal taxes.
"ARTICLE II
"1.
During the period from January 1, 1946, to
December 31, 1973, both dates inclusive, the total amount of the
articles falling within one of the classes specified in Items A and
A-1, and C to G, both inclusive, of the Schedule to this Article which
are Philippine articles as defined in Subparagraph (f) of Paragraph 1
of the Protocol, and which, in any calendar year, may be entered, or
withdrawn from warehouse, in the United States for consumption shall
not exceed the amounts specified in such Schedule as to each class of
articles. During the period from January 1, 1946, to December 31, 1973,
both dates inclusive, the total amount of the articles falling within
the class specified in Item B the schedule to this Article which are
the product of the Philippines, and which, in any calendar year, may be
entered or withdrawn from warehouse, in the United States for
consumption, shall not exceed the amounts specified in such Schedule as
to such class of articles. During the period from January 1, 1974, to
July 3, 1974, both dates inclusive, the total amounts referred to in
the preceding sentences of this Paragraph shall not exceed one-half of
the amount specified in such Schedule with respect to each class of
articles, respectively.
"2.
Philippine
articles as defined in Subparagraph (f) of Paragraph 1 of the Protocol
falling within one of the classes specified in Items D to G, both
inclusive, of the Schedule to this Article, which during the following
portions of the period from January 1, 1946, to December 31, 1973, both
dates inclusive, are entered, or withdrawn from warehouse, in the
United States for consumption, shall be free of ordinary customs duty,
in quantities determined by applying the following percentages of the
amounts specified in such Schedule as to each such class of articles:
"(a)
During each of the calendar years 1946 to 1954,
one hundred per centum.
"(b)
During the calendar 1955, ninety-five per centum
"(c)
During each calendar year after the calendar
year 1955 until and including the calendar year 1973, a percentage
equal to the percentage for the preceding calendar year decreased by
five per centum of such specified amounts.
Any such Philippine article so
entered or withdrawn from warehouse in excess of the duty-free quota
provided in this Paragraph shall be subject to one hundred per centum
of the United States duty as defined in Subparagraph (g) of Paragraph 1
of the Protocol.
"3.
Each of the quotas provided for in Paragraphs 1
and 2 of this article for articles falling within one of the classes
specified in Items A-1 and B, and D to G, each inclusive, of the
Schedule to this Article shall be allocated annually by the Philippines
to the manufacturers in the Philippines in the calendar year 1940 of
products of a class for which such quota is established, and whose
products of such class were exported to the United States during such
calendar year, or their successors in interest, proportionately on the
basis of the amount of the products of such class produced by each such
manufacturer (or in the case of such successor in interest, the amount
of the products of such class produced by his predecessor in interest)
which was exported to the United States during the following period:
(a) In the case of Item A-1 and D to G, each inclusive, the calendar
year 1940, and (b) In the case of Item B, the twelve months immediately
preceding the inauguration of the Commonwealth of the Philippines. The
quota provided for in Paragraph 1 of such Schedule, including that
required to manufacture the refined sugar specified in Item A-1 of the
Schedule, shall be allotted annually by the Philippines to the
sugar-producing mills and plantation owners in the Philippines in the
calendar year 1940 whose sugars were exported to the United States
during such calendar year, or their successors in interest, the average
annual production (or in the case of such a successor in interest, the
average annual production of his predecessor in interest) for the
calendar years 1931, 1932, and 1933, and the allocated in each year
between each mill and the plantation owners on the basis of the
proportion of sugars to which each mill and the plantation owners are
respectively entitled, in accordance with any milling agreements
between them, or any extension, modification, or renewal thereof.
"4.
The holder
of any allotment under law existing on April 29, 1946, including his
successor in interest, and the holder of any allotment under any of the
quotas which are provided for in Paragraphs 1 and 2 of this Article the
allocation of which is provided for in Paragraph 3 of this Article, may
transfer or assign all or any amount of such allotment on such terms as
may be nine months of any calendar year, the holder of any allotment,
for that year, under any of the quotas referred to in the preceding
sentence, is or will be unable for any reason to export to the United
States all of his allotment, in time to fulfill the quota for that
year, that amount of such allotment which it is established by
sufficient evidence cannot be so exported during the remainder of the
calendar year may be apportioned by the Philippine Government to other
holders of allotments under the same quota, or in such other manner as
will insure the fulfillment of the quota for that year: Provided, That
no transfer or assignment or reallocation under the provisions of this
Paragraph shall diminish the allotment to which the holder may be
entitled in any subsequent calendar year.
"The following Schedule to Article II shall constitute an integral part
thereof:
"I
II
III
Numerical
Commodity Description
All
Quantities
Item
"A
Sugars.
952,000 short
tons
"A-1
May be refined sugars, meaning
'direct-
Not to exceed
consumption sugar' as defined in
Section
56,000 short
101 of the Sugar Act of 1937 of
the
tons
United States which it set forth in part
as Annex I to this Agreement.
"B
Cordage,
including yarns, twines
6,000,000 lbs.
(including binding twines described in
Paragraph 1622 of the Tariff Act of 1930
of the United States, as amended, which
is set forth as Annex II to this Agreement),
cords, cordage, rope, and cable,
tarred or untarred, wholly or in chief
value of Manila (abaca) or other hard fiber.
"C
Rice, including rice meal, flour, polish,
and bran,
1,040,000 lbs.
"D
Cigars
(exclusive of cigarettes, cheroots
200,000,000 cigars
of all kinds, and paper cigars and
cigarettes, including wrappers).
"E
Scrap tobacco, and stemmed and
unstemmed filler tobacco described in
Paragraph 602 of the Tariff Act of 1930
of the United States, as amended, which is
set forth as Annex III to this
Agreement.
6,500,000 lbs.
"F
Coconut oil
200,000 long tons
"G
Buttons of pearl or shell.
850,000 gross
"ARTICLE III
"1.
With
respect to quotas on Philippine articles as defined in Subparagraph (f)
of Paragraph 1 of the Protocol (other than the quotas provided for in
Paragraphs 1 and 2 of Article II, and other than quotas established in
conjunctions with quantitative limitations, applicable to products of
all foreign countries, on imports of like articles), the United States
will not establish any such quota for any period before January 1,
1948, and for any part of the period from January 1, 1948, to July 3,
1974, both dates inclusive, it will establish such a quota only if —
"(a)
The President of the United States, after
investigation, finds and proclaims that such Philippine articles are
coming, or are likely to come, into substantial competition with like
articles the product of the United States;
"(b)
The quota for any Philippine article as so
defined for any twelve-month period is not less than the amount
determined by the President as the total amount of Philippine articles
of such class which (during the twelve months ended on the last day of
the month preceding the month in which occurred the date proclaimed by
the President as the date of the beginning of the investigation) was
entered, or withdrawn from warehouse, in the United States for
consumption; or, if the quota is established for any period other than
a twelve-month period, is not less than a proportionate amount.
Any quota established pursuant to
this Paragraph shall not continue in effect after the President,
following investigation, finds and proclaims that the conditions which
gave rise to the establishment of such quota no longer exist.
"2.
If the President of the United States finds that
the allocation of any quota established pursuant to Paragraph 1 of this
Article is necessary to make the application of the quota just and
reasonable between the United States and the Philippines, he shall, in
such proclamation or a subsequent proclamation, provide the basis for
such allocation, and if he exercises such right, the Philippines will
promptly put and keep in effect, on the basis proclaimed by the
President of the United States, the allocation of such quota.
"ARTICLE IV
"1.
With respect to articles which are products of
the United States coming into the Philippines, or with respect to
articles manufactured in the Philippines wholly or in part from such
articles, no internal tax shall be —
"(a)
Collected or paid in an amount in excess of the
internal tax imposed with respect to like articles which are the
product of the Philippines, or collected or paid in any amount if the
internal tax is not imposed with respect to such like articles:
"(b)
Collected
or paid in an amount in excess of the internal tax imposed with respect
to like articles which are the product of any other foreign country, or
collected or paid in any amount if the internal tax is not imposed with
respect to such like articles.
Where and internal tax is imposed with respect to an article which is
the product of a foreign country to compensate for an internal tax
imposed (1) with respect to a like article which is the product of the
Philippines, or (2) with respect to materials used in the production of
a like article which is the product of the Philippines, if the amount
of the internal tax which is collected and paid with respect to the
article which is the product of the Unites States is not in excess of
that permitted by Paragraph 1 (b) of Article IV such collection and
payment shall not be regarded as in violation of the first sentence of
this Paragraph.
"2.
With
respect to articles which are products of the Philippines coming into
the United States respect to articles manufactured in the United,
States wholly or in part from such articles, no internal tax shall be —
"(a)
Collected paid in an amount in excess of the
internal tax imposed with respect to like articles which are the
product of the United States, or collected or paid in any amount if the
internal tax is not imposed with respect to such like articles;
"(b)
Collected paid in an amount in excess of the
internal tax imposed with respect to like articles which are the
product of any other foreign country, or collected or paid in any
amount if the internal tax is not imposed with respect to such like
articles.
Where an internal tax is imposed
with respect to an article which is the product of a foreign country to
compensate for an internal tax imposed (1) with respect to a like
article which is the product of the United States, or (2) with respect
to materials used in the production of an article which is the product
of the United States, if the amount of the internal tax which is
collected and paid with respect to the article which is the product of
the Philippines is not in excess of that permitted by Paragraph 2 (b)
of Article IV, such collection and payment shall not be regarded as in
violation of the first sentence of this Paragraph. This Paragraph shall
not apply to the taxes imposed under sections 2306, 2327, or 2356 of
the Internal Revenue Code of the United States which are set forth in
part as Annexes IV, V, and VI to this Agreement.
"3.
No export
tax shall be imposed or collected by the United States on articles
exported to the Philippines, or by the Philippines on articles exported
to the United States.
"4.
No processing tax or other internal tax shall be
imposed or collected in the United States or in the Philippines with
respect to articles coming into such country for the official use of
the Government of the Philippines or of the United states,
respectively, or any Department or agency thereof.
"5.
No
processing tax or other internal tax shall be imposed or collected in
the United States with respect to Manila (abaca) fiber not dressed or
manufactured in any manner.
"6.
The United States will not reduce the preference
of two cents per pound provided in Sec. 2470 of the Internal Revenue
Code if the United States (relating to processing taxes on Coconut oil,
etc.), which is set forth as Annex VII to this Agreement, with respect
to articles 'wholly the production of the Philippine Islands' or
articles produced wholly from materials the growth or production of the
Philippines Islands'; except that is it may suspend the provisions of
Subsection (a) (2) of such section during any period as to which the
President of the United States, after consultation with the President
of the Philippines, finds that adequate supplies of neither copra nor
coconut oil, the product of the Philippines, are readily available for
processing in the United States.
"ARTICLE V
"The value of Philippine currency in relation to the United States
dollar shall not be changed, the convertibility of Philippines pesos
into United States dollars shall not be suspended, and no restrictions
shall be imposed on the transfer of funds from the Philippines to the
United States except by agreement with the President of the United
states.
"ARTICLE VI
"1.
Any citizen
of the United States who actually resided in the Philippines, and any
citizen of the Philippines who actually resided in the United States,
for a continuous period of three years during the period of forty-two
months ending November 30, 1941, if entering the country of such former
residence during the period from July 4, 1946, to July 3, 1951, both
dates inclusive, for the purpose of resuming residence therein, shall
for the purposes of the immigration laws, be considered a non-quota
immigrant. After such admission as a non-quota immigrant he shall, for
the purposes of the immigration and a naturalization laws, be
considered as lawfully admitted to such country for permanent
residence. The benefits of this Paragraph shall also apply to the wife
of any such citizen of the United States, if she is also a citizen
thereof, and to his unmarried children under eighteen years of age, and
to the wife or any such citizen of the Philippines, if she is also a
citizen thereof or is eligible for United States citizenship, and to
his unmarried children under eighteen years of age, if such wife or
children of such citizen of the United States or such citizen of the
Philippines are accompanying or following to join him during such
period. This paragraph shall not apply to a citizen of the Philippines
admitted to the Territory of Hawaii, without an immigration or passport
visa, under the provisions of Paragraph (1) of section 8 (a) of the act
of March 24, 1934, of the United States which is set forth as Annex
VIII to this Agreement.
"2.
There shall
be permitted to enter the Philippines, without regard to any numerical
limitations under the laws of the Philippines, in each of the calendar
years 1946 to 1951, both inclusive, one thousand two hundred citizens
of the United States, each of whom shall be entitled to remain in the
Philippines for five years.
"ARTICLE VII
"1.
The disposition, exploitation, development, and
utilization of all agricultural, timber, and mineral lands of the
public domain, waters, minerals, coal, petroleum, and other mineral
oils, all forces and sources of potential energy, and other natural
resources of the Philippines, and the operation of public utilities,
shall if open to any person, be open to citizens of the United States
and to all forms of business enterprise owned or controlled, directly
or indirectly, by United States citizens, except that (for the period
prior to the amendment of the Constitution of the Philippines referred
to in Paragraph 2 of this Article) the Philippines shall not be
required to comply with such part of the foregoing provisions of this
sentence as are in conflict with such Constitution.
"2.
The Government of the Philippines will promptly
take such steps as are necessary to secure the amendment of the
Constitution of the Philippines so as to permit the taking effect as
laws of the Philippines of such part of the provisions of Paragraph 1
of this Article as is in conflict with such Constitution before a such
amendment.
"ARTICLE VIII
"1.
Upon the taking effect of this Agreement the
provisions thereof placing obligations on the United States: (a) if in
effect as laws of the United States at the time this Agreement takes
effect, shall continue in effect as laws of the United States during
the effectiveness of the Agreement; or (b) if not so in effect at the
time the Agreement takes, shall take effect and continue in effect as
laws of the United States during the effectiveness of the Agreement.
The Philippines will continue in effect as laws of the Philippines,
during the effectiveness of the Agreement, the provisions thereof
placing obligations on the Philippines, except as in otherwise provided
in Paragraph 1 of Article VII.
"2.
The United
States and the Philippines will promptly enact, and shall keep in
effect during the effectiveness of this Agreement, such legislation as
may be necessary to supplement the laws of the United States and the
Philippines, respectively, referred to in Paragraph 1 of this Article,
and to implement the provisions of such laws and the provisions of this
Agreement placing obligations on the United States and the Philippines,
respectively. Moreover, the Philippines will promptly enact, keep in
force and effect during the effectiveness of this Agreement, such
legislation as may be necessary to put and keep in effect during the
effectiveness of this Agreement the allocation, reallocation, transfer,
and assignment of quotas on the basis provided for in Paragraphs 3 and
4 of Article II; and, if the United States exercises the right to
establish quotas pursuant to Paragraph 1 of Article III and to provide
for the allocation thereof pursuant to Paragraph 2 of the same Article,
the Philippines will promptly enact, and keep in force during the
period for which each such quota is established, such legislation as is
necessary to put and keep in effect, on the basis provided by the
United States, the allocation of such quotas.
"3.
The
Philippines agree to assist the United States in carrying out Article I
of the Philippine Rehabilitation Act of 1946 of the United States by
providing that the following acts relative to such title shall be
offenses under the laws of the Philippines, and that, upon conviction
thereof, the penalties attached to such offenses shall be enforced:
"(a)
Whoever,
in the Philippines or elsewhere, makes any statement or representation
knowing it to be false, or whoever willfully and fraudulently
overvalues loss of or damage to property for the purpose of obtaining
for himself or for any claimant any compensation pursuant to such Title
or for the purpose of influencing in any way the action of the
Philippine War Damage Commission of the United States with respect to
any claim for compensation pursuant to such Title, or for the purpose
of obtaining money, property, or anything of value under such Title,
shall be punished by a fine of not more than the equivalent, in the
currency of the Philippines, of five thousand dollars, United States
currency, or by imprisonment for not more than two years, or both, and
shall not receive any payments or other benefits under such Title and,
if any payment or benefit shall have been made or granted, such
Commission shall take such action as may be necessary to recover the
same.
"(b)
Whoever,
in the Philippines or elsewhere, pays or offers to pay, or promises to
pay, or receives, on account of services rendered or to be rendered in
connection with any claim for compensation under such Title, any
remuneration in excess of five per centum of the compensation paid by
the Philippines War Damage Commission of the United States on account
of such claim, shall be deemed guilty of a misdemeanor and shall be
fined not more than the equivalent, in the currency of the Philippines,
of five thousand dollars, United States currency, or imprisonment for
not more than twelve months, or both, and, if any such payments or
benefit shall have been made or granted, such Commission shall take
such action as may be necessary to recover the same, and, in addition
thereto, any such claimant shall forfeit all rights under such Title.
"ARTICLE IX
"The United states and the Philippines agree to consult with each other
with respect to any questions as to the interpretation or the
application of this Agreement, concerning which either Government may
make representation to the other.
"ARTICLE X
"1.
The Philippine Trade Act of 1946 of the United
States having authorized the President of the United States to enter
into this Agreement, and the Congress of the United States having
enacted such legislation as may be necessary to make the provisions
thereof placing obligations on the United States take effect as laws of
the United States, this Agreement shall not take effect unless and
until the Congress of the Philippines accepts it by laws and has
enacted such legislation as may be necessary to make all provisions
hereof placing obligations on the Philippines take effect as laws of
the Philippines except as is otherwise provided in Paragraph 1 of
Article VII. This Agreement shall then be proclaimed by the President
of the United States and by the President of the Philippines, and shall
enter into force on the day following the date of such proclamations,
or, if they are issued on different dates, on the day following the
later in date.
"2.
This
Agreement shall have no effect after July 3, 1974. It may be terminated
by either the United States or the Philippines at any time, upon not
less than five years written notice. If the President of the United
States or the President of the Philippines determines and proclaims
that the other country has adopted or applied measures or practices
which would operate to nullify or impair any right or obligation
provided for in this Agreement, then the Agreement may be terminated
upon not less than six months' written notice.
"3.
If the President of the United States determines
that a reasonable time for the making of the amendment to the
Constitution of the Philippines referred to in Paragraph 2 of Article
VII has elapsed, but that such amendment has not been made, he shall so
proclaim and this Agreement shall have no effect after the date of such
proclamation.
"4.
If the
President of the United States determines and proclaims, after
consultation with the President of the Philippines, that the
Philippines or any of its political subdivision or the Philippine
Government is in any manner discriminating against citizens of the
United States or any form of United States business enterprise, then
the President of the United States shall have the right to suspend the
effectiveness of the whole or any portion of this Agreement. If the
President of the United States subsequently determines and proclaims,
after consultation with the President of the Philippines, that the
discrimination which was the basis for such suspension (a) has ceased,
such suspension shall end; or (b) has not ceased after the lapse of a
time determined by the President of the United States to be reasonable,
then the President of the United States shall have the right to
terminate this Agreement upon not less than six months' written notice.
"In witness whereof the President
of the Philippines and the Plenipotentiary of the President of the
United States have signed this Agreement and have affixed hereunto
their seals.
"Done in duplicate in the English language at Manila this day ____ of
July one thousand nine hundred and forty-six.
"PROTOCOL TO ACCOMPANY THE
AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE REPUBLIC OF THE
PHILIPPINES CONCERNING TRADE AND RELATED MATTERS DURING A TRANSITIONAL
PERIOD FOLLOWING THE INSTITUTION OF PHILIPPINE INDEPENDENCE.
"The undersigned duly empowered Plenipotentiaries have agreed to the
following-Protocol to this Agreement between the United States of
America and the Republic of the Philippines concerning Trade and
Related Matters during a Transitional Period following the Institution
of Philippine Independence, signed this day, which shall constitute an
integral part of the Agreement:
"1.
For the purpose of the Agreement —
(a)
The term 'person' includes partnerships,
corporations, and associations.
"(b)
The term 'United States' means the United States
of America and, when used in a geographical sense, means the State, the
District of Columbia, the Territories of Alaska and Hawaii and Puerto
Rico.
"(c)
The term
'Philippines' means the Republic of the Philippines and, when used in a
geographical sense, means the territories of the Republic of the
Philippines, whether a particular act in question took place, or a
particular situation in question existed, within such territories
before or after the institution of the Republic of the Philippines. As
used herein the territories of the Republic of the Philippines comprise
all the territories specified in Section 1 of Article I of the
Constitution of the Philippines which is set forth as Annex XI to this
Agreement.
"(d)
The term 'ordinary customs duty' means a customs
duty based on the article as such (whether or not such duty is also
based in any manner on the use, value, or method of production of the
article, or on the amount of like articles imported, or on any other
factor); but does not include —
"(1)
A customs duty based on an act or omission of
any person with respect to the importation of the article, or of the
country from which the article is exported, or from which comes; or
"(2)
A countervailing duty imposed to offset a
subsidy, bounty, or grant of
"(3)
An
anti-dumping duty imposed to offset the selling of merchandise for
exportation at a price less than the prevailing price in the country to
export; or
"(4)
Any tax, fee, charge, or exaction, imposed on or
in connection with importation unless the law of the country imposing
it designates or imposes it as a customs duty or contains a provision
to the effect that it shall be treated as a duty imposed under the
customs laws; or
"(5)
The tax imposed by Sec. 2491 (c) of the
Internal Revenue Code of the United States, which is set forth as Annex
IX to this Agreement, with respect to an article merchandise, or
combination, ten per centum or more of the quantity by weight of which
consists of, or is derived directly or indirectly from, one or more of
the oils, fatty acids or salts specified in Sec. 2470 of such Code
which is set forth as Annex VII to this Agreement; or the tax imposed
by Sec. 3500 of such Code which is set forth as Annex X to this
Agreement.
"(e)
The term
'United States article' means an article which is the product of the
United State, unless, in the case of an article produced with the sue
of materials imported into the United States from any foreign country
(except the Philippines) the aggregate value of such imported materials
at the time of importation into the United States was more then twenty
per centum of the value of the article imported into the Philippines,
the value of such article to be determined in accordance with, and as
of the time provided by, the customs laws of the Philippines in effect
at the time of importation of such article. As used in this
Subparagraph the term 'value' when used in reference to a material
imported into the United States, includes the value of the material
ascertained under the customs laws of the United States in effect
at the time of importation into the United States, and, if not included
in such value, the cost of bringing the material to the United States,
but does not include the cost of landing it at the port of importation,
or customs duties collected in the United States. For the purposes of
this Subparagraph any imported material, used in the production of an
article in the United States, shall be considered as having been used
in the production of an article subsequently produced in the United
States, which is the product of a chain of production in the United
States in the course of which an article, which is the product of one
stage of the chain, issued by its producer or another person, in a
subsequently stage of the chain, as a material in the production of
another article.
"(f)
The term
'Philippine article' means an article which is the product of the
Philippines, unless in the case of an article produced with the use of
materials imported into the Philippines from any foreign country
(except the United States) the aggregate value of such imported
materials at the time of importation into the Philippines was more than
twenty per centum of the value of the article imported into the United
States, the value of such article to be determined in accordance with,
and as of the time provided by, the customs laws of the United States
in effect at the time of importation of such article. As used in this
Subparagraph the term 'value', when used in reference to a material
imported into the Philippines, includes the value of the material
ascertained under the customs laws of the Philippines in effect at the
time of importation into the Philippines, and, if not included in such
value, the cost of bringing the material to the Philippines, but does
not include the cost of landing it at the port of importation, or
customs duties collected in the Philippines. For the purposes of this
Subparagraph any imported material, used in the production of an
article in the Philippines, shall be considered as having been used in
the production of an article subsequently produced in the Philippines,
which is the product in the Philippines in the course of which an
article, which is the product of one stage of the chain, is used by its
producer or another person, in a subsequent stage of the chain, as
material in the production of another article.
"(g)
The term
'United States duty' means the rate or rated of ordinary customs duty
which (at the time and place of entry, or withdrawal form warehouse, in
the United States for consumption, of the Philippine article) would be
applicable to a like article) would be applicable to a like article if
imported from that foreign country which is entitled to the lowest
rate, or the lower aggregate of rates, of ordinary customs duty with
respect to such like article.
"(h)
The term 'Philippine duty' means the rate or
rates of ordinary customs duty which (at the time and place of entry,
or withdrawal from warehouse, in the Philippines for consumption, of
the United States article) would be applicable to a like article if
imported from that foreign country which is entitled to the lowest
rate, or the lowest aggregate of rates, of ordinary customs duty with
respect to such like article.
"(i)
The term
'internal tax' includes an internal fee, charge, or exaction, and
includes —
"(1)
The tax imposed by Sec. 2491(c) of the
Internal Revenue Code of the United States which is set forth as Annex
IX to this Agreement, with respect to an article, merchandise, or
combination, ten per centum or more of the quantity by weight of which
consists of, or is derived directly or indirectly from, one or more of
the oils, fatty acids, or salts specified in Sec. 2470 of such Code
which is set forth as Annex VII to this Agreement; and the tax imposed
by Sec. 3500 of such Code which is set forth as Annex X to this
Agreement; and
"(2)
Any other tax, fee, charge, or exaction, imposed
on or in connection with importation unless the law of the country
imposing it designates or imposes it as a customs duty or contains a
provision to the effect that it shall be treated as a duty imposed
under the customs laws.
"2.
For the
purposes of Subparagraphs (g) and (h) of Paragraph 1 of this Protocol —
"(a)
If an article is entitle to be imported from a
foreign country free of ordinary customs duty, that country shall be
considered as the country entitled to the lowest rate of ordinary
customs duty with respect to such article; and
"(b)
A reduction in ordinary customs duty granted any
country, by law treaty, trade agreement, or otherwise, with respect to
any article, shall be converted into the equivalent reductions in the
rate of ordinary customs duty otherwise applicable to such article.
"3.
For the purposes of Paragraph 1 and 2 of Article
IV, any material, used in the production of an article, shall be
considered as having been used in the production of an article
subsequently produced, which is the product of a chain of production in
the course of which an article, which is the product of one stage of
the chain, is used by its producer or another person in a subsequently
stage of the chain, as a material in the production of another article.
"4.
The terms
'includes' and 'including' when used in a definition contained in this
Agreement shall not be deemed to exclude other things otherwise within
the meaning of the term defined.
In witness whereof the President of the Philippines and the
Plenipotentiary of the President of the United States have signed this
Protocol and have affixed here unto their seals.
Done in duplicate in the English language at Manila this ____ day of
July, one thousand nine hundred forty-six.
"ANNEXES OF STATUTORY PROVISIONS REFERRED TO IN THE AGREEMENT BETWEEN
THE UNITED STATES OF AMERICA AND THE REPUBLIC OF THE PHILIPPINES
CONCERNING TRADE AND RELATED MATTERS DURING A TRANSITIONAL PERIOD
FOLLOWING THE INSTITUTION OF PHILIPPINE INDEPENDENCE.
"ANNEX I
"Sugar Act of 1937 of the United States, as amended to May 1, 1946.
"Section 101.
For the purposes of this Act, except
Title IV —
"'(e)
The term 'direct-consumption sugar' means any
sugars which are principally of crystalline structure and which are not
to be further refined or otherwise improved in quality' (50 Stat.) Pt.
1 (903, Ch. 898)
"ANNEX II
"Tariff Act of 1930 of the United States, as amended to May 1, 1946.
"'PARAGRAPH
1622.
All binding twine manufactured from New Zealand
hemp, henequen, Manila, istle the or Tampico fibre sisalgrass, or sunn,
or a mixture or any two or more of them, of single ply and measuring
not exceeding seven hundred and fifty feet to the pound.' (46 Stat.)
Pt. (675, Ch. 497)
"'PARAGRAPH 602.
The term "wrapper tobacco" as used
in this title means that quality of leaf tobacco which has the
requisite color, texture, and burn, and is of sufficient size for cigar
wrapper, and the term "filler tobacco" means all other leaf tobacco . .'(46 Stat.) Pt. 1 (631, Ch. 497)
"ANNEX IV
"Internal Revenue code of the United States, as amended to May 1, 1946.
"'CHAPTER 16
Oleomargarine, adulterated
butter, and a processed or revocated butter.
"'Section 2300.
Oleomargarine defined.
"'For the purpose of this
chapter, and of sections 3200 and 3201, certain manufactured
substances, certain extracts, and certain mixtures and compounds,
including such mixtures and compounds with butter, shall be known and
designated as "oleomargarine," namely: All substances known prior to
August 2, 1886, as oleomargarine oil, butterine, lardine, suine, and
neutral; all mixtures and compounds of oleomargarine, oleo,
oleomargarine oil, butterine, lardine, suine, and neutral; all lard
extracts and tallow extracts; and all mixtures and compounds of tallow,
beef fat, suet, lard, lard oil, fish oil or fish fat, vegetable oil,
annato, and other coloring matter, in testinal fat, and offal fat; — if
(1) made in imitation or semblance of butter, or (2) calculated or
intended to be sold as butter or for butter, or (3) churned, emulsified
or mixed in cream, milk, water or other liquid, and containing moisture
in excess of one per centum or common salt. This section shall not
apply to puffpastry shortening not churned or emulsified in milk, or
cream, and having a melting point of one hundred and eighteen degrees
Fahrenheit or more , nor to any of the following containing condiments
and spices: salad dressings, mayonnaise dressing or mayonnaise products
nor to liquid emulsion, pharmaceutical preparations, oil meals, liquid
preservatives, illuminating oils, cleansing compounds, or flavoring
compounds, (53 Stat.) 247 and 248."
"ANNEX V
"Internal Revenue Code of the United States, as amended to May 1, 1946.
"'Section 2306.
Importation
"'All oleomargarine imported from foreign countries shall, in addition
to any important duty imposed on the same, pay in external revenue tax
of fifteen cents per pound, such tax to be represented by coupon stamps
as in the case of oleomargarine manufactured in the United States. . .'
"'Section 2320.
Definitions.
"'(a)
Butter. — For the purpose of this chapter and
sections 3206 and 3207, the word "butter" shall be understood to mean
the food product usually known as butter, and which is made exclusively
from milk or cream, or both with or without common salt and with or
without additional coloring matter.
"'(b)
Adulterated butter. — "Adulterated butter" is
defined to mean grade of butter produced by mixing, reworking,
returning in milk or cream, refining, or in any way producing a
uniform, purified, or improved product from different lots or parcels
of melted or unmelted butter or butter fat, in which any acid, alkali,
chemical, or any substance whatever is introduced or used for the
purpose with the effect of deodorizing or removing therefrom rancidity,
or any butter or butter fat with which there is mixed any substance
foreign to butter as defined in subsection (a), with intent or effect
of cheapening in cost the product, or and butter in the manufacture or
manipulation of which any process or material is used with intent or
effect of causing the absorption abnormal quantities of water, milk, or
cream. 53 Stat. 252 and 253.'
"'Section 2327.
Other laws applicable.
"'(a)
Oleomargarine. — The provisions of sections
2301 (c) (2), 2305 to 2311, inclusive (except subsections (a), (b) and
(h) of section 2308), and section 3791 (a) (1), shall apply to the
manufacturers of adulterated butter to an extent necessary to enforce
the marking, branding, identification, and regulation of the
exportation and importation of adulterated butter. 53 Stat. 255.' (53
Stat,) Pt. 1 (247, 250, 252, 253, and 255, Ch. 2)
"ANNEX VI
"Internal revenue Code of the United States, as amended to May 1, 1946.
"'Section 2350.
Definitions.
"'For the purpose of this Chapter and sections 3210 and 3211 —
"'(a)
Cheese. — The word "cheese" shall be understood
to mean the food product known as cheese, and which is made from milk
or cream and without the addition of butter, or any animal, vegetable,
or other oils or fats foreign to such milk or cream, with or without
additional coloring matter.
"'(b)
Filled
cheese. — Certain substances and compounds shall be known and
designated as "filed cheese," namely: all substances made of milk or
skimmed milk, with the admixture of butter, animal oils or fats,
vegetable or any other oils, or compounds foreign to such milk, and
made initiation or semblance of cheese. Substances and compounds,
consisting principally of cheese with added edible oils, which are not
sold as cheese or as substitutes and compounds, consisting principally
of cheese with added edible oils, which are not sold as cheese or as
substitutes for cheese but are primarily useful for imparting a natural
cheese flavor to other foods shall not be considered "filed cheese"
within the meaning of this chapter. 53 Stat. 256.'
"'Sec. 2356.
Importation.
"'All filled cheese as defined in section 2350 (b) imported from
foreign countries shall, in addition to any import duty imposed on the
same, pay an internal revenue tax of 8 cents per pound, such tax to be
represented by coupon stamps, and such imported filled cheese and the
packages containing the same shall be stamped, marked, and branched, as
in the case of filled cheese manufactured in the United States. 53
Stat. 258.' (53 Stat.) Pt. (256 and 258, Ch. 2)
"ANNEX VII
"Internal Revenue Code of the United States, as amended to May 1, 1946.
"'Sec. 2470.
Tax.
"'(a)
Rate.
"'(1)
In general. — Three shall be imposed upon the
first domestic processing of coconut oil, palm oil, palmkernel oil,
fatty acids derived from any of the foregoing oils, salts or any of the
foregoing (whether or not such oils, fatty acids, or salts have been
refined, sulfonated, sulfated, hydrogenated, or otherwise processed),
or any one or more of such oils, fatty acids, or salts, a tax of tree
cents per ground to be paid by the processor.
"'(2)
Additional rate on coconut oil. — There shall be imposed (in addition
to the tax imposed by the preceding paragraph) a tax of two cents per
pound, to be paid by the processor, upon the first domestic processing
of coconut oil or of any combination or mixture containing a
substantial quantity of coconut oil with respect to which oil there has
been no previous first domestic processing, except that the tax imposed
by this sentence shall not apply when it is established, in accordance
with regulations prescribed by the Commissioner with the approval of
the Secretary, that such coconut oil (whether or not contained in such
a combination or mixture, (A) is wholly the production of the
Philippine Island or any possession of the United States or (B) was
produced wholly from materials the growth production of the Philippine
Island or any possession of the United States, or (C) was brought into
the United States on or before June 9, 1934, or produced from materials
brought into the United States on or before June 9, 1934, or (D) was
purchased under a bona fide contract entered into prior to April 26,
1934, or produced from materials purchased under a bona fide contract
entered into prior to April 26, 1934. The tax imposed by this paragraph
by this paragraph shall not apply to any domestic processing after July
3, 1974.
"'(b)
Exemption. — The tax under subsection (a) shall not apply from a
previous to any fatty acid or salt resulting from a previous first
domestic processing taxed under this section or upon which an import
tax have been paid under chapter 22, or (2) with respect to any
combination or mixture by reason of its containing an oil, fatty acid
or salt with respect to which there has been a previous first domestic
processing or upon which an import tax has been paid under Chapter 22.
"'(c)
Importation prior to August 21, 1936. —
Notwithstanding the provisions of subsections (a) and (b) of this
section, the first domestic processing of sunflower oil or sesame oil
(or any combination or mixture containing a substantial quantity
of sunflower oil or sesame oil), if such oil or such combination or
mixture or such oil contained therein was imported prior to August 21,
1936, shall be taxed in accordance with the provisions of section
602½ of the Revenue Act of 1934, 48 Stat. 763, in force on June
22, 1936. 53 Stat. 264,' (53 Stat.) Pt. 1 (264 and 265, Ch. 2; Public
Law 371 — 79th Cong.)
"An Act of the United States to
suspend in part the processing tax on coconut oil, as amended to May 1,
1946.
"'Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That section 2470 (a)
(2) of the Internal Revenue Code is hereby suspended: Provided, That if
the President after receipt by him of a request from the Government of
the Commonwealth of the Philippine Island that the suspension of
section 2470 (a) (2) be terminated, shall find that adequate supplies
of copra, coconut oil, or both, the product of the Philippine Island,
are readily available for processing in the United States he shall so
proclaim; and thirty days after such proclamation, the suspension of
section 2470 (a) (2) of the Internal Revenue Code, shall terminate.
"'Section 2.
This Act shall become effective the day following its enactment, and
shall terminate on May 30, 1946.' (56 Stat.) Pt. (752 and 753, Ch.
560); (58 Stat.) Pt. 1 (647 Ch. 332).
"ANNEX VIII
"Act of March 24, 1934 of the
United States, as amended to May 1, 1946.
"'Section 8. (a)
Effective upon the acceptance of this
Act by concurrent a resolution of the Philippines Legislature or by a
convention called for that purpose, as provided in section 17 —
"'(1)
For the purpose of the Immigration Act of 1917,
the Immigration Act of 1924 (except section 13[c]), this section, and
all other laws of the United States relating to the immigration,
exclusion, or explosion of aliens, citizens of the Philippines Island
who are not citizens of the United States shall be considered as if
they were alien. For such purposes the Philippine Island shall be
considered as a separate country and shall have for each fiscal year a
quota of fifty. This paragraph shall not apply to a person coming or
seeking to come to the Territory of Hawaii who does not apply for and
secure an immigration or passport visa, but such immigration shall be
determined by the Department of the interior on the basis of the needs
of industries in the Territory of Hawaii. 48 Stat. 462.' (48 Stat.) Pt.
(642, Ch. 84.
"ANNEX IX
"Internal Revenue Code of the United States, as amended to May 1, 1946.
"'Section 2490.
Imposition of Tax.
"'Addition to any other tax or duty imposed by law, there shall be
imposed upon the following articles imported into the United States,
unless treaty provisions of the United States otherwise provide, a tax
at the rates set forth in section 2491, to be paid by the importer. 53
Stat. 267.'
"'Section 2491.
Rate of Tax.
"'(c)
Any article, merchandise, or combination
(except oils specified in section 2470), 10 per centum or more of the
quantity by weight of which consists of, or is derived directly or
indirectly from, one or more of the products specified above in this
paragraph or of the oils, fatty acids, or salts specified in section
2470, a tax at the rate or rates per pound equal to that proportion of
the rate or rates prescribed in this paragraph or section 2470 in
respect of such product or products which the quantity by weight of the
imported article, merchandise, or combination, consisting of or derived
from such product or products, bears to the total weight of the
imported article, merchandise, or combination; but there shall not be
taxable under this subparagraph any article, merchandiser, or
combination (other than an oil, fat, grease, and other than products
resulting from processing seeds without full commercial extraction of
the oil content), by reason of the presence there of an oil, fat, or
grease which is a natural component of such article, merchandise, or
combination and has never had a separate existence as an oil, fat, or
grease. 53 Stat. 267 and 268.' (53 Stat.) Pt. 1 (267 and 268, Ch. 2)
"ANNEX X
"Internal Revenue Code of the United States, as amended to May 1, 1946.
"'CHAPTER 32 —Sugar.
"'Sec. 3500.
Rate of Tax.
"'In addition to any other tax or duty imposed by law, there shall be
imposed, under such regulations as the Commissioner of Customs shall
prescribe, with the approval of the secretary, a tax upon articles
imported or brought into the United States as follows:
"'(1)
On all manufactured sugar testing by the
polariscope ninety-two sugar degrees, 0.465 cent per pound, and for
each additional sugar degree shown by the polariscopic test, 0.00875
cent per pound additional, and fractions of a degree in proportion;
"'(2)
On all manufactured sugar testing by the
polariscope less than ninety-two sugar degrees 0.5144 cent per pound of
the total sugars therein;
"'(3)
On all articles composed in chief value of
manufactured sugar 0.5144 cent per pound of the total sugar therein. 53
Stat. 428.'
"Section 3507.
Definitions.
"'(b)
Manufactured sugar. — The term "manufactured
sugar" means any sugar derived from sugar beets or sugar-cane, which is
not to be, and which shall not be further refined or otherwise improved
in quality; except sugar in liquid form which contains nonsugar solids
(excluding any foreign substance that may have been added) equal to
more than 6 per centum of the total soluble solids, and except also
sirup of cane juice produced from sugar cane grown in continental
United States.
"'The grades or types of sugar within the meaning of this definition
shall include, but shall not be limited to, granulated sugar lump
sugar, cube sugar, provided, sugar in the form of blocks, cones, or
molded shapes, confectioners' sugar, washed sugar, centrifugal sugar,
clarified sugar, turbinado sugar, plantation white sugar, muscovado
sugar, refiners' soft sugar, invert sugar mush, raw sugar, sirups,
molasses, and sugar mixtures.
"'(c)
Total
sugars. — The term "total sugars" means the total amount of the sucrose
(Clerget) and of the reducing or invert sugars. The total sugars
contained in any grade or type of manufactured sugars contained in any
grade or type of manufactured sugar shall be ascertained in the manner
prescribed in paragraphs 758, 759, 762 and 763 of the United States
Customs Regulations (1931 edition). 53 Stat. 428 and 429.' (53 Stat.)
Pt. 1 (426, 428, and 429 Ch. 2)"
"ANNEX XI
"Constitution of the Philippines
as amended to May 1, 1946.
"ARTICLE I. — THE NATIONAL TERRITORY
"Section 1.
The Philippines comprises all the
territory ceded to the United States by the Treaty of Paris concluded
between the United States and Spain on the concluded between the United
States and Spain on the tent day of December, eighteen hundred and
ninety-eight, the limits of which are set forth in Article III of said
treaty, together with all the island embraced in the treaty concluded
at Washington, between the United States and Spain on the seventh day
November, nineteen hundred, and in the treaty concluded between the
United States and Great Britain on the second day of January, nineteen
hundred and thirty, and all territory over which the present Government
of the Philippines Island exercises jurisdiction.'
WHEREAS, under the terms thereof, the said Executive Agreement shall
not take effect unless and until the Congress of the Philippines
accepts it by law, until the Congress of the Philippines (in the act of
acceptance, or separately) has enacted such legislation as may be
necessary to make all the enacted such legislation as many be necessary
to make all the provisions of Parts 2, 3, 4, and 5 of Title III of the
said Act of Congress take effect as laws of the Philippines, except
(during the period prior to the amendment to the Constitution of the
Philippines referred to in subsection [b] of section 402) such
provisions of section 341 are in conflict with such constitution; and
WHEREAS, in accordance with said Agreement it is necessary for the
Philippines to provide that certain acts, herein after specified, shall
be offenses under the laws of the Philippines:
NOW THEREFORE, Be it enacted by the Senate and the House of
Representatives of the Philippines in Congress assembled:
Section 1.
Acceptance of, and authority to formally
execute, the Executive Agreement. — The Executive Agreement which the
President of the United States and the President of the Philippines
have agreed to enter into pursuant to Title IV of Public Law 371 — 79th
Congress, approved April thirty, nineteen hundred forty-six, entitled
"An Act to Provide for the Trade Relations Between the United States
and the Philippines, and for Other Purposes," as hereinbefore set
forth, is hereby accepted and approved, and the President of the
Philippines is authorized to formally execute the same on or after July
4, 1946.
Section 2.
Enactment of certain portions of Public Law
371 — 79th Congress. — Parts 2, 3, 4, and 5 of Title III of Public Law
371 — 79th Congress, otherwise known as the "Philippines Trade Act of
1946," which read as follows:
"PART 2. — Customs Duties
"Section 311.
Free Entry of United State Articles.
"During the period from the day after the date of the enactment of this
Act to July 3, 1954, both dates inclusive, United States articles
entered, or withdrawn from warehouse, in the Philippines free of
ordinary customs duty.
"Section 312.
Ordinary Customs on United States Articles.
"(a)
July 4, 1954-July 3, 1974. — The ordinary
customs duty to be collected on United states articles, which during
the following portions of the period from July 4, 1954, to July 3,
1974, both dates inclusive, are entered, or withdrawn from warehouse,
in the Philippines for consumption, shall be determined by applying the
following percentages of the Philippine duty:
"(1)
July 4 to December 31, 1954. — During the period
from July 4, 1954, to December 31, 1954 both dates inclusive, 5 per
centum.
"(2)
Calendar Year 1955. — During the calendar year
1955, 10 per centum.
"(3)
Calendar Years 1956-1872. — During each calendar
year after the calendar year 1955 until and including the calendar year
1972, a percentage equal to the percentage for the preceding calendar
year increased by 5 per centum of the Philippine duty.
"(4)
Percentage
After 1972. — During the period from January 1, 1973, to July 3, 1974,
both dates inclusive, 100 per centum.
"(b)
Period After July 3, 1974. — The ordinary
customs duty to be collected on United States articles which after July
3, 1974, are entered, or withdrawn from warehouse, in the Philippines
for consumption, shall be determined without regard to the provisions
of subsection (a) of this section.
"Section 313.
Customs Duties other than Ordinary.
"Customs duties on United States articles, other than ordinary customs
duties shall be determined without regard to the provisions of sections
311 and 312 (a), but shall be subject to the provisions of section 314.
"Section 314.
Equality in Special Import Duties, Etc.
"(a)
With
respect to United States articles imported into the Philippines, no
duty on or in connection with importation shall be collected or paid in
an amount in excess of the duty imposed with respect to like articles
which are the product of any other foreign country, or collected or
paid in any amount if the duty is not imposed with respect to such like
articles.
"(b)
As used in this section the term 'duty' includes
taxes, fees, charges, or exactions, imposed on or in connection with
importation; but does not include internal taxes or ordinary customs
duties.
"Section 315.
Equality in Duties on Products of United
States.
"(a)
With respect to products of the United States,
which do not come within the definition of United States articles,
imported into the Philippines, no duty on or in connection with
importation shall be collected or paid in an amount in excess of the
duty imposed with respect to like articles which are the product of any
other foreign country or collected or paid in any amount if the duty is
not imposed with respect to such like articles which are the product of
any other foreign country.
"(b)
as used in
this section the term 'duty' includes taxes, fees, charges, or
exactions, imposed on or in connections with importations; but does not
include internal taxes.
"PART 3. — Internal Taxes.
"Section 321.
Equality in Internal Taxes.
"(a)
With respect to articles which are products of
the United States coming into the Philippines, or with respect to
articles manufactures in the Philippines wholly or in part from such
articles, no internal tax shall be —
"(1)
collected
or paid in an amount in excess of the internal tax imposed with respect
to like articles which are the product of the Philippines, or collected
or paid in any amount if the internal tax is not imposed with respect
to such like articles;
"(2)
collected or paid in an amount in excess of the
internal tax imposed with respect to like articles which are the
product of any other foreign country, or collected or paid in any
amount if the internal tax is not imposed with respect to such like
articles.
"(b)
Where an internal tax is imposed with respect to
an article which is the product of a foreign country to compensate for
an internal tax imposed (1) with respect to a like article which is the
product of the Philippines, or (2) with respect to materials used in
the production of a like article which is the product of the
Philippines, if the amount of the internal tax which is collected and
paid with respect to the article which is the product of the United
States is not in excess of that permitted by paragraph (2) of
subsection (a) such collection and payment shall not be regarded as in
violation of subsection (a).
"Section 322.
Prohibition on Export Taxes.
"No export tax shall be imposed or collected by the Philippines on
articles exported to the United States.
"Section 323.
Exemption from Taxes of Articles for
Official Use.
"No processing tax or other internal tax shall be imposed or collected
in the Philippines with respect to articles coming into the Philippines
for the official use of the United States Government or any department
or agency thereof.
"PART 4. — Immigration
"Section 331.
Certain United States Citizens given
Non-Quota Status.
"Any citizen of the United State who actually resided in the
Philippines for a continuous period of three years during the period of
forty-two months ending November 30, 1941, if entering the Philippines
during the period from July 4, 1946, to July 3, 1951, both dates
inclusive, for the purpose of resuming residence in the Philippines,
shall, for the purposes of the immigration laws, be considered a
non-quota immigrant. After such admission as a non-quota immigrant he
shall, for the purposes of the immigration and naturalization laws, be
considered as lawfully admitted to the Philippines for permanent
residence. The benefits of this section shall also apply to his wife,
if a citizen of the United States, and to his unmarried children under
18 years of age, if such wife or children are accompanying of following
to join him during such period.
"Section 332.
Immigration of United States Citizens into the Philippines.
"Citizens of the United States, admissible to the Philippines under the
provisions required by section 402 (e) to be included as a part of the
executive agreement made under Title IV, shall be entitled to enter the
Philippines, in the numbers and during the periods of years, and to
remain therein for the time, specified in that part of the agreement
which embodies the provisions of section 402 (e).
"PART 5. — Miscellaneous
"Section 341.
Rights of United States Citizens and
Business Enterprises in Natural Resources.
"The disposition, exploitation, development, and utilization of all
agricultural, timber, and mineral lands of the public domain, waters,
minerals, coal, petroleum, and other mineral oils, all forces and
sources of potential energy, and other natural resources of potential
energy, and other natural resources of the Philippines, and the
operation of public utilities, shall, if open to any person, be open to
citizens of the United States and to all forms of business enterprise
owned or controlled, directly or indirectly, by United States citizens.
"Section 342.
Currency Stabilization.
"The value of Philippines currency in relation to the United States
dollar shall not be changed, the convertibility of pesos into dollars
shall not be suspend, and no restrictions shall be imposed on the
transfer of funds from the Philippines to the United States, except by
agreement with the President of the United States.
"Section 343.
Allocation of Quotas.
"The allocation, reallocation transfer, and assignment of quotas
established by sections 211, 212, and 214, respectively, of Part 2 of
Title II, shall be on the basis provided for in such Part."
are hereby enacted and shall continue in effect as laws of the
Philippines during the effectiveness of the executive agreement
mentioned in the proceeding section: Provided, however, That so much of
section 341, Part 5, Title III, above quoted as is in conflict with the
Constitution of the Philippines shall take effect only after such
conflict shall have been removed by a amendment of the said
Constitution.
Section 3.
Whoever, in the Philippines or elsewhere,
makes any statement or representation knowing it to be false, or
whenever willfully and fraudulently, overvalues loss of or damage to
property for the purpose of obtaining for himself or for any claimant
any compensation pursuant to Title I of the Philippines Rehabilitation
Act of 1946 of the United States, or for the purpose of influencing in
any way the action of the Philippine War Damage Commission of the
United States with respect to any claim for compensation pursuant to
such Title, or for the purpose of obtaining money, property, or
anything of value under such Title, shall be punished by a fine of not
more than ten thousand pesos, Philippines currency, or by imprisonment
for not more than two years, or both, and shall not receive any
payments or other benefits under such Title and, if any payment or
benefit shall have been made or granted, such Commission shall take
such actions as may be necessary to recover the same.
Section 4.
Whoever, in the Philippines or elsewhere,
pays or offers to pay, or promises to pay, or receives, on account of
services rendered or to be rendered in connection with any claim for
compensation under Title I of the Philippine Rehabilitation Act of 1946
of the United States, any remuneration in excess of five per centum of
the compensation paid by the Philippine War Damage Commission of the
United States on account of such claim, shall be deemed guilty of an
offense and shall be fined not more than ten thousand pesos,
Philippines currency, or imprisoned for not more than twelve months, or
both, and, if any such payment or benefit shall have been made or
granted, such Commission shall take such action as may be necessary to
recover the same, and, in addition thereto any such claimant shall
forfeit all rights under such Title.
Section 5.
This Act shall take effect on its approval.
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