WHEREAS,
there is a need to improve the provisions of subsection (b) of Section
183 of the National Internal Revenue Code, as amended.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree:cralaw:red
Section 1. Subsection (b) of Section 183 of the
National Internal Revenue Code is hereby amended to read as follows:cralaw:red
"(b) Sales tax on imported articles. — When the
articles are imported, the percentage taxes established in section one
hundred eighty-four, one hundred eighty-four-A, one hundred
eighty-five, one hundred eighty-five-A, one hundred eighty-five-B, one
hundred eighty-six and one-hundred eighty-six-B of this Code shall be
paid in advance by the imported, in accordance with the regulations
promulgated by the Secretary of Finance and prior to the release of
such articles from customs' custody, based on the import invoice value
thereof, certified to as correct under penalties of perjury by the
Philippine Consul at the port of origin if there is any, including
freight, postage, insurance, commission, customs duty and all similar
charges, plus one hundred per centum of such total value in the case of
articles enumerated in Section one hundred eighty-four; and one hundred
eighty-four-A, fifty per centum of such total value in the case of
articles enumerated in sections one hundred eighty-five, one hundred
eighty-five-A and one hundred eighty-five-B; and twenty-five per centum
in the case of articles enumerated in section one hundred eighty-six
and one hundred eighty-six-B. The tax imposed in this section shall not
apply to articles to be used by the importer himself in the manufacture
or preparation of articles subject to specific tax: Provided, however,
That where the National Economic Development Authority certifies to the
availability of local raw material of sufficient quantity, comparable
quality and price to meet the needs of manufacturers subject to
specific tax, the importation of such raw materials by said
manufacturers for use in their manufacture shall be subject to the tax
herein imposed. chanroblesvirtualawlibrary
"The tax herein imposed shall be collected in all cases where the
original imported sold, transferred, or negotiated the imported article
to third persons before release thereof from customs custody,
regardless of the tax status of the original importer and the indorsee
or transferee, the same to be paid by the transferee and/or indorsee.
"The provisions of this Act shall not be construed as nullifying
whatever interpretation the government has given to the word "importer"
heretofore.
"In the case of tax-free articles brought or imported into the
Philippines by persons, entities or agencies exempt from the tax which
subsequently sold, transferred, or exchanged in the Philippines to
non-exempt private persons or entities, the purchasers shall be
considered the importers thereof. The tax due on such articles shall
constitute a lien on the articles itself superior to all other charges
or liens, irrespective of the possessor thereof.
"Any percentage tax paid under Section 184, 184-A, 185-A, 185-B and
186-B on domestically manufactured or on imported raw materials used in
the manufacture of finished products exported shall be allowed to be
credited against other liabilities of the manufacturer-exporter:
Provided, however, That said percentage taxes paid are indicated as a
separate item in the invoices."
Section 2. All taxes payable or paid under Section
183(b) of the National Internal Revenue Code as amended by Presidential
Decree No. 750 shall be recomputed and redetermined in accordance with
the provisions of this Decree.
Section 3. This Decree shall take effect immediately.
Done in the City of Manila,
this 19th day of March, in the year of Our Lord, nineteen hundred and
seventy-six.
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