ChanRobles Virtual law Library

a. Dynamite, gunpowder, ammunitions and other explosives, firearm and weapons of war, and detached parts thereof, except when authorized by law. 
.chan robles virtual law libraryb. Written or printed article in any form containing any matter advocating or inciting treason, rebellion, insurrection or sedition against the Government of the Philippines, of forcible resistance to any law of the Philippines, or containing any threat to take the life of or inflict bodily harm upon any person in the Philippines. 
.chan robles virtual law libraryc. Written or printed articles, photographs, engravings, lithographs, objects, paintings, drawings or other representation of an obscene or immoral character. 
.chan robles virtual law libraryd. Articles, instruments, drugs and substances designed, intended or adapted for preventing human conception or producing unlawful abortion, or any printed matter which advertises or describes or gives directly or indirectly information where, how or by whom human conception is prevented or unlawful abortion produced. 
chanrobles virtual law librarye. Roulette wheels, gambling outfits, loaded dice, marked cards, machines, apparatus or mechanical devices used in gambling, or in the distribution of money, cigars, cigarettes or other articles when such distribution is dependent upon chance, including jackpot and pinball machines or similar contrivances. .chan robles virtual law library
f. Lottery and sweepstakes tickets except those authorized by the Philippine Government, advertisements thereof and lists of drawings therein. 
.chan robles virtual law libraryg. Any article manufactured in whole or in part of gold silver or other precious metal, or alloys thereof, the stamps brands or marks of which do not indicate the actual fineness or quality of said metals or alloys. 
h. Any adulterated or misbranded article of food or any adulterated or misbranded drug in violation of the provisions of the "Food and Drugs Act."
i. Marihuana, opium poppies, coca leaves, or any other narcotics or synthetic drugs which are or may hereafter be declared habit forming by the President of the Philippines, any compound, manufactured salt, derivative, or preparation thereof, except when imported by the Government of the Philippines or any person duly authorized by the Collector of Internal Revenue, for medicinal purposes only. 
j. Opium pipes and parts thereof, of whatever material. 
k. All other articles the importation of which is prohibited by law. chanrobles virtual law library

ad. val. For ad valorem
.chan robles virtual law library.e.g. For exempli gratia, meaning "for example"
.chan robles virtual law libraryi.e. For id est, meaning "that is" .chan robles virtual law libraryhd. For head chan robles virtual law library.chan robles virtual law librarykgs. For kilograms .chan robles virtual law library
l. For liter .chan robles virtual law library
g.w. For gross weight .chan robles virtual law libraryl.w. For legal weightchanrobles virtual law libraryn.w. For net weight 

a. Animals and plants for scientific, experimental, propagation, botanical, breeding, zoological and national defense purposes: Provided, That no live trees, shoots, plants and moss, and bulbs, tubers and seeds for propagation purposes may be imported under this section, except by order of the Government of the Philippines or other duly authorized institutions: Provided, further, That the free entry of animals for breeding purposes shall be restricted to animals of a recognized breed, duly registered in the book of record established for that breed: And Provided, finally, That certificate of such record, and pedigree of such animal duly authenticated by the proper custodian of such book of record, shall be produced and submitted to the Collector of Customs, together with affidavit of the owner or importer, that such animal is the identical animal described in said certificate of record and pedigree.
.chan robles virtual law libraryb. Aquatic products (e.g., fish, crustaceans, mollusks, marine animals, seaweed, fish oil, roe), including preparations or manufactures thereof, caught or gathered by vessels of Philippine registry: Provided, That they are imported in such vessels or in crafts attached thereto: And Provided, further, That they have not been landed in any foreign territory or, if so landed, they have been landed solely for transshipment without having been advanced in condition. 
.chan robles virtual law libraryc. Samples of the kind, in such quantity and of such dimensions or construction as to render them unsalable or of no appreciable commercial value, models not adapted for practical use and samples of medicine properly marked "physicians' samples not for sale". 
chanrobles virtual law libraryCommercial samples, except those that are not readily and easily identifiable (e.g., precious and semi-precious stones, cut or uncut, and jewelry set with precious or semi-precious stones), the value of any single importation of which does not exceed ten thousand pesos, upon the giving of a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for the exportation of said samples within six months from the date of the acceptance of the import entry, or in default thereof, the payment of the corresponding duties, taxes and other charges. If the value of any single consignment of such commercial samples exceeds ten thousand pesos, the importer thereof may select any portion of same not exceeding in value ten thousand pesos for entry under the provisions of this subsection, and the excess of the consignment may be entered in bond, or for consumption, as the importer may elect.  .chan robles virtual law library
d. Articles, including binnacles, propellers, and the like, the character of which, as imported, prevents their use for other purposes than the construction, equipment, or repair of vessels and aircraft, and life-preservers and life buoys, related equipment and parts and accessories thereof, which are necessary for the take-off and landing and for the safe navigation of vessels and aircraft. chanrobles virtual law librarye. Equipment for use in the salvage of vessels or aircraft, upon identification and the giving of a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for the exportation thereof or payment of the corresponding duties, taxes and other charges within six months from the date of acceptance of the import entry: Provided, That the Collector of Customs may extend the time for exportation or payment of duties, taxes and other charges for a term not exceeding six months from the expiration of the original period. 
chanrobles virtual law libraryf Cost of repairs made in foreign countries upon vessels or aircraft documented, registered or licensed in the Philippines, upon proof satisfactory to the Collector of Customs (1) that adequate facilities for such repairs are not afforded in the Philippines, or (2) that such vessels or aircraft, while in the regular course of her voyage or flight was compelled by stress of weather or other casualty to put into a foreign port to make such repairs in order to secure the safety seaworthiness or airworthiness of the vessel or aircraft to enable her to reach her port of destination.  .chan robles virtual law library
g. Articles brought into the Philippines for repair, processing or reconditioning to be re-exported upon completion of the repair, processing or reconditioning: Provided, That the Collector of Customs may, in his discretion, require the giving of a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for the exportation thereof or payment of the corresponding duties, taxes and other charges within six months from the date of acceptance of the import entry. .chan robles virtual law libraryh. Medals, badges, cups and other small articles bestowed as trophies or prizes, or those received or accepted as honorary distinctions. 
i. Wearing apparel and household effects, including those articles provided for under subsections "j" and "k", and belonging to residents of the Philippines returning from abroad, which were exported from the Philippines by such returning residents upon their departure therefrom or during their absence abroad, upon the identity of such articles being established to the satisfaction of the Collector of Customs; personal and household effects brought into the Philippines by returning residents, the export value of which does not exceed five hundred pesos, solely for personal or household use but not imported for the account of any other person nor intended for barter, sale or hire: Provided, That such returning residents have not received the benefit of any exemption hereunder within one hundred and eighty days from and after the date of the last exemption granted: And Provided, further, That in the event the total export value of the imported article or articles exceeds the amount of five hundred pesos, such article or articles shall be subject to duty only on the amount in excess of five hundred pesos; articles of the same kind and class purchased in foreign countries by residents of the Philippines during their absence abroad and accompanying them upon their return to the Philippines, or arriving within a reasonable time which in no case shall exceed ninety (90) days before or after the owner's return, upon proof satisfactory to the Collector of Customs that same have been in their use abroad for more than one year; articles in any single shipment consigned to any single person when the total export value of such shipment does not exceed one hundred pesos: Provided, finally, That when the export value exceeds the amount of one hundred pesos, only the amount in excess of one hundred pesos shall be subject to duty. 
j. Wearing apparel, articles of personal adornment, toilet articles, portable tolls and instruments, theatrical costumes, and similar personal effects, accompanying travelers or tourists in their baggage or arriving within a reasonable time, in the discretion of the Collector of Customs, before or after the owners, in use of and necessary and appropriate for the wear or use of such persons according to their profession or position for the immediate purposes of their journey and their present comfort and convenience: Provided, That this exemption shall not be held to apply to articles intended for other persons or for barter, sale or hire: Provided, further, That the Collector of Customs may, in his discretion, require a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges upon articles classified under this subsection, conditioned for the exportation thereof or payment of the corresponding duties, taxes and other charges, within six months from the date of acceptance of the import entry: And Provided, finally, That the Collector of Customs may extend the time for exportation or payment of duties, taxes and other charges for a term not exceeding six months from the expiration of the original period.

k. Vehicles, horses, harness, bed and table linen, table service, furniture, musical instruments and personal effects of like character, owned and imported by travelers or tourists for their convenience and comfort, upon identification and the giving of a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for the exportation thereof or payment of the corresponding duties, taxes and other charges within six months from the date of acceptance of the import entry: Provided, That the Collector of Customs may extend the time for exportation or payment of duties, taxes and other charges for a term not exceeding six months from the expiration of the original period. 
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l. Professional instruments and implements, tools of trade, occupation or employment, wearing apparel, domestic animals, and personal and household effects, including those of the kind and class provided for under subsections "j" and "k" and belonging to persons coming to settle in the Philippines, in quantities and of the class suitable to the profession, rank or position of the person importing them, for their own use and not for barter or sale, accompanying such persons, or arriving within a reasonable time, in the discretion of the Collector of Customs, before or after the arrival of their owners, upon the production of evidence satisfactory to the Collector of Customs that such persons are actually coming to settle in the Philippines, that the articles are brought from their former place of abode, that change of residence is bona fide, and that the privilege of free entry under this subsection has never been previously granted to them: Provided, That neither merchandise of any kind, nor machinery or other articles for use in manufacture, shall be classified under this subsection. 
m. Animals, vehicles, portable theaters, circus and theatrical equipment, including musical instruments, sceneries, panoramas, properties, saddlery, wax figures and similar objects for public entertainment, and other articles for display in public expositions, or for exhibition or competition for prizes, and devices for projecting pictures and parts and appurtenances therefor, upon identification and the giving of a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for exportation thereof or payment of the corresponding duties, taxes and other charges within six months from the date of acceptance of the import entry: Provided, That the Collector of Customs may extend the time for exportation or payment of duties, taxes and other charges for a term not exceeding six months from the expiration of the original period; and technical and scientific films when imported by technical, cultural and scientific institutions, and not to be exhibited for profit: Provided, That if any of the said films is exhibited for profit, the proceeds therefrom shall be subject to confiscation, in addition to the penalty provided under section three thousand six hundred and ten of this Code.
n. Articles (e.g., photographic, sound recording, electrical and other equipment, vehicles, animals, costumes, apparel, properties, supplies, unexposed motion picture films) brought by foreign producers for making or recording motion pictures on location in the Philippines, upon identification and the giving of a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for exportation thereof or payment of the corresponding duties, taxes and charges within six months from the date of acceptance of the import entry. Unexposed motion picture films allowed free entry under bond for exportation falling within this subsection and subsequently exposed, whether or not developed, may be reexported free of import duties, taxes and other charges. 
.chan robles virtual law libraryNegative films, undeveloped, exposed outside the Philippines by resident Filipino citizens or by producing companies of Philippine registry where the principal actors and artists employed for the production are Filipinos, upon affidavit by the importer that such exposed films are the same films previously exported from the Philippines. As used in this paragraph, the terms "actors" and "artists" include the persons working the photographic camera or other photographic and sound recording apparatus by means of which the film is made. 
.chan robles virtual law libraryo. Costumes, regalia and other articles, including office supplies and equipment, imported for the official use of members and attaches of foreign embassies, legations, consular officers and other representatives of foreign government: Provided, That the country which any such person represents accords like privileges to corresponding officials of the Philippines. 
.chan robles virtual law libraryArticles imported for the personal or family use of the members and attaches of foreign embassies, legations, consular officers and other representatives of foreign governments: Provided, That such privilege shall be accorded under special agreements between the Philippines and the countries which they represent: And Provided, further, That the privilege may be granted only upon specific instructions of the Department of Finance in each instance which will be issued only upon request of the Department of Foreign Affairs.
p. Regalia, gems, statuary, specimens or casts of sculptures imported for the bona fide use and by the order of any society incorporated or established solely for religious, philosophical, educational, scientific or literary purposes, or for the encouragement of the fine arts, or for the use and by the order of any institution of learning, public library, museum, orphan asylum or hospital, and not for barter, sale or hire: Provided, That the term "regalia" shall be held to embrace only such insignia of rank or office or emblems as may be worn upon the person or borne in the hand during public exercises or ceremonies of the society or institution, and shall not include articles of furniture or fixtures, or ordinary wearing apparel, nor personal property of individuals. 
q. Musical organs imported for the bona fide use and by the owner of any society incorporated or established for religious or educational purposes, or, expressly for presentation thereto. 
r. Scientific apparatus, instruments and utensils specially imported for the bona fide use and by the order of any society or institution incorporated or established solely for educational, scientific, or charitable purposes, or for the encouragement of the fine arts, or for the bona fide use and by the order of any institution of learning in the Philippines, and not for barter, sale or hire. 
s. Philosophical, historical, economic, scientific, technical and vocational books specially imported for the bona fide use and by the order of any society or institution, incorporated or established solely for philosophical, educational, scientific, charitable or literary purposes, or for the encouragement of the fine arts, or for the bona fide use of and by the order of any institution of learning in the Philippines: Provided, That the provisions of this subsection shall apply to books not exceeding two copies of any one work when imported by any individual for his own use, and not for barter, sale or hire. 
Bibles, missals, prayerbooks, koran, ahadith and other religious books of similar nature and extracts therefrom, hymnal and hymns for religious uses, specially prepared books, music and other instrumental aids for the deaf, mute or blind, and textbooks prescribed for use in any school in the Philippines: Provided, That complete books published in parts in periodical form shall not be classified herein.
t. Newsprint, whenever imported by or for publishers for the exclusive use in the publication of newspapers. 
u. Articles donated to public or private institutions established solely for educational, scientific, cultural, charitable, health, relief, philanthropic or religious purposes, for free distribution among, or exclusive use of, the needy. 
v. Food, clothing, house-building and sanitary-construction materials, and medical, surgical and other supplies for use in emergency relief work, when imported by or directly for the account of any victim, sufferer, refugee, survivor or any other person affected thereby, or by or for the account of any relief organization, not operated for profit, for distribution among the distressed individuals, whenever the President shall, by proclamation, declare an emergency to exist by reason of a state of war, pestilence, cholera, plague, famine, drought, typhoon, earthquake, fire, flood and similar conditions: Provided, That the importation free of duty of articles described in this herein subsection shall continue only during the existence of such emergency, or within such limits and subject to such conditions as the President may, by his proclamation, deem necessary to meet the emergency. 
w. Philippine articles previously exported from the Philippines and returned without having been advanced in value or improved in condition by any process of manufacture or other means, and upon which no drawback or bounty has been allowed, and foreign articles when returned after having been loaned and exported for use temporarily abroad solely for exhibition, examination or experimentation, for scientific or educational purposes, and foreign containers packed with exported Philippine articles and returned empty if imported by or for the account of the person or institution who exported them from the Philippines and not for sale, subject to identification: Provided, That any Philippine article falling under this subsection upon which drawback or bounty has been allowed shall, upon re-importation thereof, be subject to a duty under this subsection equal to the amount of such drawback or bounty. 
x. Large containers (e.g., demijohns, cylinders, drums, casks and other similar receptacles of metal, glass or other material) which are, in the opinion of the Collector of Customs, of such a character as to be readily identifiable may be delivered to the importer thereof upon identification and the giving of a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for the exportation thereof on payment of the corresponding duties, taxes and other charges within one year from the date of acceptance of the import entry. 
y. Supplies or ship stores listed as such for the use of the vessel; supplies which are intended for the reasonable requirements of the vessel in her voyage outside the Philippines, including such articles transferred from a bonded warehouse in any collection district to any vessel engaged in foreign trade, for use or consumption of the passengers or its crew on board such vessel as sea stores; or articles purchased abroad for sale on board a vessel as saloon stores or supplies: Provided, That any surplus or excess of such ship, sea or saloon stores arriving from foreign ports shall be dutiable according to the corresponding heading or subheading.
z. Articles and salvage from vessels recovered after the period of two years from the date of filing the marine protest or the time when the vessel was wrecked or abandoned as determined by the Collector of Customs, or such part of Philippine vessel or her equipment, wrecked or abandoned in Philippine waters or elsewhere: Provided, That articles and salvage recovered within the said period of two years shall be dutiable according to the corresponding heading or subheading. 
chanrobles virtual law libraryaa. Articles of easy identification exported from the Philippines for repairs abroad and subsequently reimported: Provided, That the cost of the repairs made to any such article shall pay a rate of duty of twenty-five per cent ad valorem. bb. Coffins or urns containing human remains, bones or ashes, and all articles for ornamenting said coffins or urns and accompanying same; used personal and household effects, not merchandise, of deceased persons, upon identification as such, satisfactory to the Collector of Customs.

Sec. 202. Bases of Dutiable Weight. — On articles that are subject to specific rate of duty, based on weight, the duty shall be ascertained as follows: 

a. When articles are dutiable by the gross weight, the dutiable weight thereof shall be the weight of same, together with the weight of all containers, packages, holders and packings, of any kind, in which said articles are contained, held or packed at the time of importation. 
chanrobles virtual law libraryb. When articles are dutiable by the legal weight, the dutiable weight thereof shall be the weight of same, together with the weight of the immediate containers, holders and/or packing in which such articles are usually contained, held or packed at the time of importation and/or, when imported in retail packages, at the time of their sale to the public in usual retail quantities: Provided, That when articles are packed in single container, the weight of the latter shall be included in the legal weight. 
.chan robles virtual law library.c. When articles are dutiable by the net weight, the dutiable weight thereof shall be only the actual weight of the articles at the time of importation, excluding the weight of the immediate and all other containers, holders or packing in which such articles are contained, held or packed. 
chanrobles virtual law libraryd. Articles affixed to cardboard, cards, paper, wood or similar common material shall be dutiable together with the weight of such holders. 
.chan robles virtual law librarye. When a single package contains imported articles dutiable according to different weights, or to weight and value, the common exterior receptacles shall be prorated and the different proportions thereof treated in accordance with the provisions of this Code as to the dutiability or non-dutiability of such packing. 

RULE 1. The titles of schedules, chapters and subchapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings or subheadings and any relative schedule or chapter notes and, provided such headings, subheadings or notes do not otherwise require, according to the succeeding rules.
.chan robles virtual law library.RULE 2. Any reference in a heading or subheading to a material or substance shall include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to articles of a given material or substance shall include a reference to articles consisting wholly or partly of such material or substance. The classification of articles consisting of more than one material or substance shall be according to the principles of Rule 3. 
.chan robles virtual law libraryRULE 3. When articles are, prima facie, classifiable under two or more headings or subheadings, classification shall be effected as follows: 

a. The heading or subheading which provides the most specific description shall be preferred to any other heading or subheading providing a more general description. 
.chan robles virtual law libraryb. Mixtures and composite articles which consist of different materials or are made up of different components and which cannot be classified by reference to "a" shall be classified as if they consisted of the material or component which give the articles their essential character, insofar as this criterion is applicable. 
.chan robles virtual law libraryc. When articles cannot be classified by reference to "a" or "b" they shall be classified under the heading or subheading which provides the highest rate of duty. 

RULE 4. Where in a note to a schedule or chapter it is provided that certain articles are not covered by that schedule or chapter a reference being made to another schedule or chapter or to a particular heading or subheading, the note shall, unless the context requires otherwise, refer to all the articles falling within that other schedule or chapter or heading or subheading notwithstanding that only certain of those articles are referred to by description in the note. 
.chan robles virtual law libraryRULE 5. When dutiable and duty-free articles or those dutiable at different rates are packed together or mingled in such manner that the value of each class of such article cannot be readily determined by the officials of the Bureau of Customs, all such articles shall pay duty at the rate applicable to that article in the package which is subject to the highest rate of duty, unless the importer or consignee segregates such article at his own risk and on his account, under the supervision of customs officials, within fifteen days after the acceptance of import entry covering same, and before delivery, in order that the value of each article may be determined. 
.chan robles virtual law libraryRULE 6. In classifying manufactured products, no account shall be taken of the following: 

a. Insignificant parts of composite goods, in particular such as are used solely for mounting or connecting separate parts (e.g., nails, rivets, screws, washers, gaskets, locks, clamps, eyelets, clasps, hinges, bolts, cornerpieces, bands, threads, strings, beltings, straps, ropes); chanrobles virtual law library
.chan robles virtual law libraryb. Negligible processing, refinement and decorations; 
.chan robles virtual law libraryc. Manufacturers' marks or names or trade marks, indications of the country of origin of the types of articles, their sizes or capacities, calibration marks, indications of graduation and the like, not of an ornamental character. 

RULE 7. Unless otherwise provided for, unfinished and incomplete articles shall be classified as the finished and complete articles, provided their intended use is recognizable. 

RULE 8. Unless otherwise provided for, the separate parts and unassembled pieces of articles which normally consist of various component parts, shall be classified as complete articles, when imported together by the same importer, owner or consignee from the same seller or shipper on the same vessel or vehicle. The absence of certain non-essential parts does not affect the application of this provision.chanrobles virtual law library
.chan robles virtual law libraryRULE 9. Accessories and spare parts shall be classified with the articles with which they are imported, when, by their character and quantity, they correspond to such articles and when they are usually sold together with them and are included in the price of such article. 
.chan robles virtual law library.RULE 10. Cases, boxes, caskets, sheaths and the like, of normal type (e.g., such as are used for cutlery, binoculars, microscopes, watches, musical instruments, weapons, sport goods) imported with the corresponding articles, shall be classified as such articles; if imported separately, they shall be classified under the corresponding heading or subheading of this Code. 
chanrobles virtual law libraryRULE 11. No duties shall be assessed on account of the usual coverings or holdings of articles dutiable otherwise than ad valorem, nor those free of duty, except as in this Code expressly provided, but if there be used for covering or holding imported articles, whether dutiable or free, any unusual article, form or material adapted for use otherwise than in the bona fide preservation or transportation of such article to the Philippines, such covering or holding shall be classified under the corresponding heading or subheading of this Code.
.chan robles virtual law libraryRULE 12. When the interior container or packing of any article dutiable by weight is of an unusual character, such container or packing shall be classified under the corresponding heading or subheading of this Code.  .chan robles virtual law libraryRULE 13. When an article falling within a heading or subheading is subject to ad valorem or specific rate of duty, it shall be subject to either the ad valorem or the specific rate of duty whichever is higher. 
RULE 14.Unless otherwise provided for, the term "used" or any provision indicating designation by use, for the purpose of classification and taxation of articles shall mean the chief or predominant use of such articles notwithstanding any fugitive or incidental use to which such articles may be subjected.chanrobles virtual law library
RULE 15. Articles not falling within any heading or subheading of this Code shall be classified under the heading or subheading appropriate to articles to which they are most akin. 

Sec. 206. Entry, Withdrawal from Warehouse, for Consumption. — Imported articles shall be deemed "entered" in the Philippines for consumption when the specified entry form is properly filed and accepted, together with any related documents required by the provisions of this Code and/or regulations to be filed with such form at the time of entry, at the port or station by the customs official designated to receive such entry papers and any duties, taxes, fees and/or other lawful charges required to be paid at the time of making such entry have been paid or secured to be paid with the customs official designated to receive such monies, provided that the article has previously arrived within the limits of the port of entry. chanrobles virtual law library
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Sec. 207. Revised Trade Agreement not Affected. — Nothing in this Code shall be construed to abrogate or in any manner impair or affect the provisions of the Revised Agreement concluded between the Philippines and the United States on September 6, 1955. 
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1. Verify if the kind or class of articles in question is being sold or is likely to be sold for exportation to, or in, the Philippines at a price less than its fair value;chan robles virtual law lib.chan robles virtual law libraryrary2. Determine if, as a result thereof, an industry in the Philippines is being injured or is likely to be injured or is prevented from being established by reason of the importation or sale of such kind or class of article into the Philippines; and 
.chan robles virtual law library3. Ascertain the difference, if any, between the purchase price or, in the absence thereof, the exporter's sales price, and the fair value of the article. The Commission shall submit its findings to the Secretary within one month after receipt of the aforesaid advice. 

1. The "fair value" of an article shall be its foreign market value, or, in the absence of such value, its cost of production. 
.chan robles virtual law library2. The "purchase price" of an imported article shall be the price at which such article has been purchased or agreed to be purchased, prior to the time of exportation, by the person by whom or for whose account the article is imported, plus, when not included in such price — 

(a) The cost of all containers and coverings and all other costs, charges and expenses incident to placing the article in condition, packed ready for shipment to the Philippines; chan robles virtual law libra.chan robles virtual law libraryry(b) The amount of any export tax paid in the country of exportation on the exportation of the article to the Philippines;  .chan robles virtual law library(c) The amount of any import duties imposed by the country of exportation which have been rebated, or which have not been collected, by reason of the exportation of the article to the Philippines; and  .chan robles virtual law library(d) The amount of any taxes imposed in the country of exportation upon the manufacturer, producer or seller, in respect to the manufacture, production or sale of the article, which have been rebated, or which have not been collected, be reason of the exportation of the article of the Philippines. .chan robles virtual law library.Any additional costs, charges and expenses incident to bringing the article from the place of shipment in the country of exportation to the place of delivery in the Philippines and Philippine customs duties imposed thereon shall not be included.chanrobles virtual law library

3. The "exporter's sale price" of an imported article shall be the price at which such article is sold or agreed to be sold in the Philippines, before or after the time of exportation, by or for the account of the exporter, including —

(a) The cost of all containers and coverings and all other costs, charges and expenses incident to placing the article in condition, packed ready for shipment to the Philippines; chan robles virtual law library..chan robles virtual law library(b) The amount of any import duties imposed by the country of exportation which have been rebated, or which have not been collected, by reason of the exportation of the article to the Philippines; and  .chan robles virtual law library(c) The amount of any taxes imposed in the country of exportation upon the manufacturer, producer or seller in respect to the manufacture, production or sale of the article, which have been rebated, or which have not been collected, by reason of its exportation to the Philippines. The following amount, if included, shall be deducted — 

(1) The amount of costs, charges and expenses, and Philippine customs duties, incident to bringing the article from the place of shipment in the country of exportation to the place of delivery in the Philippines; 
.chan robles virtual law library(2) The amount of commissions, if any, for selling in the Philippines the particular article under consideration;  .chan robles virtual law library(3)An amount equal to the expenses, if any, generally incurred by or for the account of the exporter in the Philippines in selling identical or substantially identical article; and  .chan robles virtual law library(4) The amount of any export tax paid in the country of exportation on the exportation of the article to the Philippines. 

4. The "foreign market value" of an imported article shall be the price, at the time of exportation of such article to the Philippines, at which such or similar article is sold or freely offered for sale to all purchasers in the principal markets of the country from which exported, in the usual wholesale quantities and in the ordinary course of trade for home consumption (or, if not sold or offered for sale for home consumption, then for exportation to countries other than the Philippines), including the cost of all containers and coverings and all other costs, charges and expenses incident to placing the article in condition packed ready for shipment to the Philippines, except that in the case of articles purchased or agreed to be purchased by the person by whom or for whose account the article is imported, prior to the time of exportation, the foreign market value shall be ascertained as of the date of such purchase or agreement to purchase. In the ascertainment of foreign market value for the purpose of this section, no pretended sale or offer for sale, and no sale or offer for sale intended to establish a fictitious market, shall be taken into account. 
.chan robles virtual law library5. The "cost of production" of an imported article shall be the sum of — 

(a) The cost of materials of, and of fabrication, manipulation or other process employed in manufacturing or producing, identical or substantially identical article, at a time preceding the date of shipment of the particular article under consideration which would ordinarily permit the manufacture or production of the particular article under consideration in the usual course of business; chan robles virtual law library(b) The usual general expenses not less than 10 per cent of such cost, in the case of identical or substantially identical articles;  .chan robles virtual law library.(c) The cost of all containers and coverings, and all other costs, charges and expenses incident to placing the particular article under consideration in condition, packed ready for shipment to the Philippines; and  .chan robles virtual law library(d) An addition for profit not less than 8 per cent of the sum of the amounts determined under subparagraphs (a) and (b) hereof, equal to the profit which is originally added, in the case of articles of the same general character as the particular article under consideration, by manufacturers or producers in the country of manufacture or production who are engaged in the same general trade as the manufacturer or producer of the particular article under consideration.  .chan robles virtual law libraryf. For the purposes of this section the "exporter" of an imported article shall be the person by whom or for whose account the article is imported into the Philippines — 

1. If such person is the agent or principal of the exporter, manufacturer or producer; or 

2. If such person owns or controls, directly or indirectly, through stock ownership or control or otherwise, any interest in the business of the exporter, manufacturer or producer; or 
.chan robles virtual law library3. If the exporter, manufacturer or producer owns or controls, directly or indirectly, through stock ownership or control or otherwise, any interest in any business conducted by such persons; or  chan robles virtual law library.4. If any person or persons, jointly or severally, directly or indirectly, through stock ownership or control or otherwise, own or control in the aggregate 20 per cent or more of the voting power or control in the business carried on by the person by whom or for whose account the article is imported into the Philippines, and also 20 per cent or more of such power or control in the business of the exporter, manufacturer or producer. 

g. Pending investigation and final decision of the case, the article in question, and articles of the same specific kind or class subsequently imported under similar circumstances, shall be released to the owner, importer, consignee or agent upon the giving of a bond in an amount equal to the double the estimated value thereof. Articles which may have been delivered under the provision of section fifteen hundred and three of this Code prior to the institution of the investigation provided in this section shall, pending final decision, be ordered returned to the custody of the collectors of customs unless released under bond in accordance with this section. 

h. Any aggrieved party may only appeal the amount of dumping duty that is levied and collected by the Commissioner of Customs to the Court of Tax Appeals in the same manner and within the same period provided for by law in the case of appeals from decisions of the Commissioner of Customs. 
.chan robles virtual law libraryi. (1) The article, if it has not been previously released under bond as provided in subsection "g" hereof, shall be released after payment by the party concerned of the corresponding dumping duty in addition to any other duties, taxes and charges, if any, or re-exported by the owner, importer, consignee or agent, at his option and expense, upon the filing of a bond in an amount equal to double the estimated value of the article, conditioned upon the presentation of a landing certificate issued by a consular officer of the Philippines at the country of destination; or 

(2) If the article has been previously released under bond, as provided in subsection "g" hereof, the party concerned shall be required to pay the corresponding dumping done in addition to any other duties, taxes and charges, if any. chanrobles virtual law library

j. Any investigation to be conducted by the Commission under this section shall include a hearing or hearings where the owner, importer, consignee or agent of the imported article, the local producers of a like article, other parties directly affected, and such other parties as in the judgment of the Commission are entitled to appear, shall be given an opportunity to be heard and to present evidence bearing on the subject matter. 
.chan robles virtual law libraryk. It shall be the duty of collectors of customs at all ports of entry to levy and collect the dumping duty in accordance with subsection "d" hereof on the specific kind or class of article as to which the Secretary has made a decision of dumping. 
.chan robles virtual law libraryIt shall also be their duty to bring to the attention of the Secretary, thru the Commissioner of Customs, any case coming within their notice which may, in their opinion, require action as provided in this section.
.chan robles virtual law libraryl. The Secretary shall promulgate all rules and regulations necessary to carry out the provisions of this section. 

(1) Determine the character of words and phrases or abbreviations 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 a conspicuous place on the article or container where the marking shall appear; 
.chan robles virtual law library(2) Require the addition of any other words or symbols which may be appropriate to prevent deception or mistake as to the origin of the article or as to the origin of any other article with which such imported article is usually combined subsequent to importation but before delivery to an ultimate purchaser; and  .chan robles virtual law library.(3) Authorize the exception of any article from the requirements of marking if — 

(a) Such article is incapable of being marked; 

(b) Such article cannot be marked prior to shipment to the Philippines without injury; 

(c) Such article cannot be marked prior to shipment to the Philippines, except at an expense economically prohibitive of its importation; 
.chan robles virtual law library(d) The marking of a container of such article will reasonably indicate the origin of such article;  .chan robles virtual law library.(e) Such article is a crude substance;  .chan robles virtual law library.(f) Such article is imported for use by the importer and not intended for sale in its imported or any other form;  .chan robles virtual law library.(g) Such article is to be processed in the Philippines by the importer or for his account otherwise than for the purpose of concealing the origin of such article and in such manner that any mark contemplated by this section would necessarily be obliterated, destroyed or permanently concealed;  .chan robles virtual law library(h) An ultimate purchaser, by reason of the character of such article or by reason of the circumstance of its importation, must necessarily know the country of origin of such article even though it is not marked to indicate its origin;  .chan robles virtual law library(i) Such article was produced more than twenty years prior to its importation into the Philippines; or .chan robles virtual law library(j) Such article cannot be marked after importation except at an expense which is economically prohibitive, and the failure to mark the article before importation was not due to any purpose of the importer, producer, seller or shipper to avoid compliance with this section. 

(1) Imposes, directly or indirectly, upon the disposition in, or transportation in transit through or re-exportation from such country of any article 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 articles of every foreign country; or chanrobles virtual law library  (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, 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. 

Sec. 401. Flexible Clause. —  a. The President, upon investigation by the Commission and recommendation of the National Economic Council, is hereby empowered to reduce by not more than fifty per cent or to increase by not more than five times the rates of import duty expressly fixed by statute (including any necessary change in classification) when in his judgment such modification in the rates of import duty is necessary in the interest of national economy, general welfare and/or national defense. chanrobles virtual law library
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Sec. 402. Promotion of Foreign Trade. —   a. For the purpose of expanding foreign markets for Philippine products as a means of assisting in the economic development of the country, in overcoming domestic unemployment, in increasing the purchasing power of the Philippine peso, and in establishing and maintaining better relationship between the Philippines and other countries, the President, upon investigation by the Commission and recommendation of the National Economic Council, is authorized from time to time: 

(1) To enter into trade agreements with foreign governments or instrumentalities thereof; and 
.chan robles virtual law library(2) To modify import duties (including any necessary change in classification) and other import restrictions, as are required or appropriate to carry out and promote foreign trade with other countries: Provided, however, That in modifying import duties no increase shall exceed by five times or the decrease be more than fifty per cent of the rate of duty expressly fixed by this Code. 

Sec. 501. Chief Officials of the Tariff Commission. — The Tariff Commission shall be under a chief and assistant chief to be known as Commissioner and Assistant Commissioner, and who shall be appointed by the President with the consent of the Commission on Appointments. They shall hold office during good behavior unless sooner removed in accordance with law. 

Sec. 502. Qualifications. — No person shall be eligible for appointment as Commissioner and as Assistant Commissioner unless he is a natural-born citizen of the Philippines and who by experience and academic training is possessed of qualifications requisite for developing expert knowledge of tariff problems. They shall not, during their tenure in office, engage in the practice of any profession, or intervene directly or indirectly in the management or control of any private enterprise which may, in any way, be affected by the functions of his office; nor shall he, directly or indirectly, be financially interested in any contract with the Government, or any subdivision or instrumentality thereof. 
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Sec. 503. Appointment and Compensation of Officials and Employees. — All employees of the Commission shall be appointed by the Commissioner in accordance with the civil service law except a private secretary each to the Commissioner and the Assistant Commissioner. 
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1. Executive director P8,400.00 chan robles virtual law li.chan robles virtual law librarybrary2. Technical assistants 7,200.00 
.chan robles virtual law library3. Chiefs of division 7,200.00 
.chan robles virtual law library4. Commodity specialists 6,600.00 
.chan robles virtual law library5. Research economists, tariff researchers, cost accountants, and statisticians 6,000.00 
6. Librarian-researcher 4,800.00 chanrobles virtual law library
7. Junior commodity specialists, junior research economists, junior tariff researchers, junior cost accountants, and junior statisticians 3,600.00 

Sec. 506. Assistance to the President and Congress. — In order that the President and the Congress may secure information and assistance, it shall be the duty of the Commission to — 

(a) Ascertain conversion costs and costs of production in the principal growing, producing or manufacturing centers of the Philippines, whenever practicable;chan robles virtual law lib.chan robles virtual law libraryrary(b) Ascertain conversion costs and costs of production in the principal growing, producing or manufacturing centers of foreign countries of articles imported into the Philippines whenever such conversion costs or costs of production are necessary for comparison with those in the Philippines; chanrobles virtual law library chan robles virtual law library.chan robles virtual law library(c) Select and describe representative articles imported into the Philippines similar to or comparable with those locally produced; select and describe articles of the Philippines similar to or comparable with such imported articles; and obtain and the samples of articles so selected, whenever advisable; 
.chan robles virtual law library(d) Ascertain import costs of such representative articles so selected;  .chan robles virtual law library(e) Ascertain the grower's, producer's or manufacturer's selling prices in the principal growing, producing or manufacturing centers of the Philippines of the articles of the Philippines so selected; and 
(f) Ascertain all other facts which will show the differences in or which affect competition between articles of the Philippines and those imported in the principal markets of the Philippines. 

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