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This page features the full text of
Republic Act No. 8181
AN
ACT CHANGING THE BASIS OF DUTIABLE VALUE OF IMPORTED ARTICLES SUBJECT
TO
AN AD VALOREM RATE OF DUTY FROM THE HOME CONSUMPTION VALUE (HCV) TO
TRANSACTION
VALUE (TV), AMENDING FOR THE PURPOSE SECTION 201 OF TITLE II, PART 1 OF
PRESIDENTIAL DECREE NO. 1464, OTHERWISE KNOWN AS THE TARIFF AND CUSTOMS
CODE OF THE PHILIPPINES, AS AMENDED, AND FOR OTHER PURPOSES.
REPUBLIC
ACT NO. 8181
AN
ACT CHANGING THE BASIS OF DUTIABLE VALUE OF IMPORTED ARTICLES SUBJECT
TO
AN AD VALOREM RATE OF DUTY FROM THE HOME CONSUMPTION VALUE (HCV) TO
TRANSACTION
VALUE (TV), AMENDING FOR THE PURPOSE SECTION 201 OF TITLE II, PART 1 OF
PRESIDENTIAL DECREE NO. 1464, OTHERWISE KNOWN AS THE TARIFF AND CUSTOMS
CODE OF THE PHILIPPINES, AS AMENDED, AND FOR OTHER PURPOSES.
Section
1. Section 201 of Title II, Part
1 of the Tariff and Customs Code of the Philippines, as amended, is
hereby
further, amended to read as follows:chanroblesvirtualawlibrary
"Sec.
201. Basis of Dutiable Value.
— The dutiable value of an imported article subject to an ad valorem
rate
of duty shall be the transaction value, which shall be the price
actually
paid or payable for the goods when sold for export for the Philippines,
adjusted by adding the following to the extent that they are incurred
by
the buyer but are not included in the price actually paid or payable
for
the imported goods:chanroblesvirtualawlibrary
(a) Commissions
and brokerage fees (except buying commissions); cost of containers; and
the cost of packing, whether for labour or materials;
chanrobles virtuallaw libraryred(b) The
value of materials, components, parts and items incorporated in the
imported
goods; tools, dies, moulds and similar items used in the production of
the imported goods; and engineering, development, artwork, design work,
and plans and sketches undertaken elsewhere than in the Philippines and
necessary for the production of imported goods, where such goods and
services
are supplied directly or indirectly by the buyer free of charge or at a
reduced cost for use in connection with the production and sale for
export
of the imported goods, to the extent that such value has not been
include
in the price actually paid or payable;
(c) The
amount of royalties and license fees that the buyer must pay, either
directly
or indirectly, in connection with the goods being valued, as a
condition
of sale of the goods that accrues directly or indirectly to the seller;
(d) The
value of any part of the proceeds of any subsequent resale, disposal or
use of the imported goods that accrues directly or indirectly to the
seller;
(e) The
cost of transport of the imported goods from the port of exportation to
the port of entry in the Philippines;
(f) Loading,
unloading and handling charges associated with the transport of the
imported
goods from the country of exportation to the port of entry in the
Philippines;
and
(g) The
cost of insurance.
Where
the Commissioner of Customs has reason to doubt the truth or accuracy
of
the declaration or particulars or documents provided in support of
declared
value of the importation, he may require the importer to give further
explanation
thereof and to submit additional documents or other evidence to show
that
the declared value represents the total amount paid or payable for the
imported goods.
chanrobles virtuallaw libraryred
If
after receiving the explanation of the importer the Commissioner of
Customs
still has reasonable doubt as to the accuracy of the declared value,
the
Commissioner of Customs may proceed with the alternative methods
specified
hereafter, as follows:chanroblesvirtualawlibrary
The
dutiable value shall be the transaction value of identical goods sold
for
export to the Philippines at or about the date of exportation of the
goods
being valued;
If
the dutiable value still cannot be determined through the successive
application
of the two immediately preceding methods, the order of succession of
the
following methods may be reversed upon request of the importer unless
the
Commissioner of Customs deems that he will experience real difficulties
in determining the dutiable value by using the computed value, in which
case the Commissioner of Customs may refuse such a request subject to
the
provisions of the General Agreement on Tariffs and Trade (GATT) 1994
and
the Uruguay Round Final Act, in which event the valuation of the
imported
goods shall be determined as indicated hereunder:
(1
) The unit price at which the
imported goods or identical or similar imported goods are sold
domestically,
in the same condition as when imported, in the greatest aggregate
quantity,
to persons not related to the seller, at or about the time of the
importation
of the goods being valued, subject to the applicable deductions as
provided
under the GATT 1994 and the Uruguay Round Final Act; orchanrobles virtuallaw libraryred(2) The
computed value which shall be the sum of:chanroblesvirtualawlibrary(a) The
cost or value of raw materials employed in producing the imported goods;chanrobles virtuallaw libraryred(b) The
amount for profit and general expenses equal to the amount for profit
and
general expenses as reflected in the sale of goods of the same class or
kind as the goods being valued which are made by producers in the
country
of exportation for the Philippines; and
(c) The
freight, insurance fees and other transportation expenses for the
importation
of the goods;
If
the dutiable value cannot be determined under any of the preceding
methods
described above, it shall be determined by using other reasonable means
consistent with the principles and general provisions of GATT 1994, the
agreement on the implementation of Article VII of the General Agreement
on Tariffs and Trade as contained in the Uruguay Round Final Act, and
on
the basis of data available in the Philippines.
chanrobles virtuallaw libraryred
The
correct dutiable value of the imported goods referred to above shall be
ascertained by the Commissioner of Customs from reports of revenue or
commercial
attaches or other Philippine diplomatic officers and from such other
sources
of information as may be available and published by the Commissioner of
Customs from time to time, and such values shall be binding upon the
importers
and the Bureau of Customs until changed and new value or values are
similarly
established and published.
Values
shall be published in at least one (1) newspaper of general circulation
and other publications readily available to the public. Any importer or
other interested party who is dissatisfied with the published value
shall
have fifteen (15) days from the date of publication of such published
value
the opportunity to file a protest on the questioned value and the
Commissioner
of Customs shall resolve the protest within fifteen (15) days from
receipt
of such protest, either by amending the published value or retraining
the
same. Whatever his decision may be must likewise be published.
If,
in the course of determining the dutiable value of imported goods, it
becomes
necessary to delay the final determination of such dutiable value, the
importer may secure the release of the imported goods upon the filing
of
a bond which shall solely be in cash, in an amount equivalent to the
imposable
duties and taxes on the imported goods in question plus twenty-five
percent
(25%) thereof, conditioned upon the payment of customs duties and taxes
for which the imported goods may be liable: Provided, however,
That
goods the importation of which is prohibited by law shall not be
released
under any circumstances whatsoever.
For
purposes of the preceding paragraph, the terms:
(1) "Reasonable"
shall refer to any condition that creates a probable cause to make the
Commissioner of Customs believe in the accuracy of the invoice value of
imported goods as reflected by the importer in his customs declaration,
for valuation purposes. Such condition may include but is not limited
to
any of the following situations:chanroblesvirtualawlibrary(a) If
the sale or price is subject to some consideration for which a value
cannot
be determined with respect to the goods being valued such as:chanroblesvirtualawlibrary
(i) When
the seller fixes the price of the imported goods on condition that the
buyer will also buy other goods in specified quantities;chanrobles virtuallaw libraryred(ii) When
the price of the imported goods is dependent upon the price or prices
at
which the buyer of the imported goods sells other goods to the seller;
(iii) When
the price is established on the basis of a form of payment extraneous
to
the imported goods, such as where the imported goods are semi-finished
goods which have been provided by the seller on the condition that he
will
receive a specified quantity of finished foods;
(b) Or,
if part of the proceeds of any subsequent resale, disposal or use of
the
goods by the buyer will accrue directly or indirectly to the seller,
unless
an appropriate adjustment can be made in accordance with the provisions
of Article 8 of the agreement in the implementation of Article VII of
the
General Agreement on Tariffs and Trade as contained in the Uruguay
Round
Final Act; andchanrobles virtuallaw libraryred(c) If
the buyer and the seller are related to one another, and such
relationship
influenced the price of the goods. Such persons shall be deemed related
if:chanroblesvirtualawlibrary(i) They
are officers or directors of one another's businesses;chanrobles virtuallaw libraryred(ii) They
are legally recognized partners in business;
(iii) Note
:There is no number three in the
original.
(iv) Any
person directly or indirectly owns, controls or holds five percent (5%)
or more of the outstanding voting stock or shares of both seller and
buyer;
(v) One
of them directly or indirectly controls the other;
(vi) Both
of them are directly or indirectly controlled by a third person;
(vii) Together
they directly or indirectly control a third person; or
(viii) They
are members of the same family including brothers and sisters, (whether
by whole or half blood) spouse, ancestors, and lineal descendants.
(2) "Identical
goods" shall mean goods which are the same in all respects, including
physical
characteristics, quality and reputation. Minor differences in
appearances
shall not preclude goods otherwise conforming to the definition from
being
regarded as identical.
chanrobles virtuallaw libraryred(3) "Similar
goods" shall mean goods which, although not alike in all respects, have
like characteristics and like component materials which enable them to
perform the same functions and to be commercially interchangeable. The
quality of the goods, their reputation and the existence of a trademark
shall be among the factors to be considered in determining whether
goods
are similar.
Sec.
2. Transitory Provisions. — Upon
the effectivity of this Act and until such time when the Congress
authorizes
the shift to transaction value before January 1, 2000 as provided under
Section 3 of this Act, the dutiable value of an imported article
subject
to an ad valorem rate of duty shall be based on the export value at
which
at the time of exportation, the same or identical, like, or similar
article
is freely offered for sale in the principal export markets of the
exporting
country for exportation to the Philippines, in the usual wholesale
quantities
and in the ordinary course of trade (excluding internal excise taxes to
be remitted or rebated) or where there is none on such date, then on
the
export value nearest to the date of exportation, including the value of
all containers, coverings and/or packings of any kind and all other
expenses,
costs and charges incident to placing the article in a condition ready
for shipment to the Philippines, and freight, as well as insurance
premium
covering the transportation of such articles to the port of entry in
the
Philippines.chanrobles virtual law library
chanrobles virtuallaw libraryred
Where
the export value of the article cannot be ascertained thereat or where
there exists a reasonable doubt as to the fairness of such value, then
the export value of the article for exportation to the Philippines
shall
be the export value of the article in the principal export markets of
the
country of manufacture or origin, if such country is not the country of
exportation.
Where
the dutiable value cannot be ascertained as provided in the preceding
paragraphs,
or where there exists a reasonable doubt as to the dutiable value of
the
imported article declared in the entry, the dutiable value shall be the
domestic wholesale selling price of such or similar article in Metro
Manila
or other principal markets in the Philippines on the date the duty
becomes
payable on the article under appraisement, in the usual wholesale
quantities
and in the ordinary course of trade, minus:
(a) Not
more than twenty-five percent (25%) of the domestic wholesale selling
price
for expenses and profits; andchanrobles virtuallaw libraryred(b) Duties
and taxes paid thereon.
The
correct dutiable value of imported articles shall be ascertained by the
Commissioner of Customs using for that purpose reports of Revenue or
Commercial
Attaches or other Philippine diplomatic officers or such other sources
of information that may be available to the Bureau of Customs. Such
values
shall be published from time to time.
chanrobles virtuallaw libraryred
Values
shall be published in a manner that will make them readily available to
the public. Any importer or other interested party who is dissatisfied
with the published value shall have fifteen (15) days from the date of
publication of such published values the opportunity to file protest on
the questioned value, and the Commissioner of Customs shall resolve the
protest within fifteen (15) days from such protest either by amending
the
published value or retaining the same. Whatever his decision may be
must
likewise be published.
If,
in the course of determining the dutiable value of imported goods, it
becomes
necessary to delay the final determination of such dutiable value, the
importer may secure the release of the imported article upon the filing
of a bond which shall solely be in cash in an amount equivalent of the
imposable duties and taxes on the imported goods in question plus
twenty-five
percent (25%) thereof, conditioned upon the payment of customs duties
and
taxes for which the imported goods may be liable: Provided, however,
That imported goods the importation of which is prohibited by law shall
not be released under any circumstances whatsoever.
Sec.
3. In the interest of national
economy, general welfare and/or national security, the Congress shall,
upon recommendation of the President, by joint resolution, order the
shift
to transaction value, as provided under Section 1 of this Act, as the
basis
of dutiable value of an imported article subject to an ad valorem rate
of duty even before January 1, 2000.
Sec.
4. The Secretary of Finance shall,
upon the recommendation of the Commissioner of Customs, promulgate the
necessary rules and regulations for the effective implementation of
this
Act.
Sec.
5. The Commissioner of Customs
may delegate his power to determine dutiable values and to release
imported
goods under cash bond as provided in this law in cases where there are
no established and published values covering the importation: Provided,
That in such cases, the Collector of Customs concerned shall
immediately
render a complete report to the Commissioner of Customs and the latter
shall, without delay, establish and publish the correct dutiable value
or values for the importation, after which all Collector of Customs
shall
be guided accordingly in the assessment of import duties and taxes on
similar
or like importations.
Sec.
6. The Commissioner of Customs
shall create such body or bodies to receive and hear protests regarding
published values. Such body or bodies shall hear and receive the
evidence
and shall submit its or their recommendations to the Commissioner of
Customs.
The hearing body shall submit its report in writing and shall convey to
all interested parties whatever decision reached by the commissioner
thereon.
During the effectivity of any published values, any interested party
may
petition the Commissioner of Customs for a review of the published
value
for the purpose of raising or lowering such value.
Sec.
7. All laws, decrees, executive
orders, rules and regulations and other issuances or parts thereof
which
are inconsistent with this Act are hereby repealed or modified
accordingly.
Sec.
8. This Act shall take effect
fifteen (15) days after its complete publication in the Official
Gazette
or in at least two (2) newspapers of general circulation, whichever
date
comes earlier.
Approved:
March
28, 1996
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