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BOOK I

TARIFF LAW
TITLE I
IMPORT TARIFF
Section 101. Imported Articles Subject to Duty. All articles, when
imported from any foreign country into the Philippines, shall be subject to
duty upon each importation, even though previously exported from the
Philippines, except as otherwise specifically provided for in this Code or in
other laws.
Sec. 102. Prohibited Importations. The importation into the Philippines
of the following articles is prohibited:
a. Dynamite, gunpowder, ammunitions and other explosives, firearm and
weapons of war, and detached parts thereof, except when authorized by
law.
b. 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.
c. Written or printed articles, photographs, engravings, lithographs,
objects, paintings, drawings or other representation of an obscene or
immoral
character.
d. 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.
e. 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.
f. Lottery and sweepstakes tickets except those authorized by the
Philippine Government, advertisements thereof and lists of drawings

therein.
g. 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
Sec. 103.Abbreviations. The following abbreviations in this Code shall
represent the terms indicated:
ad. val. For ad valorem
e.g. For exempli gratia, meaning "for example"
i.e. For id est, meaning "that is"
hd. For head
kgs. For kilograms
l. For liter
g.w. For gross weight
l.w. For legal weight
n.w. For net weight
Sec. 104. Rates of Import Duty. There shall be levied, collected and paid
upon all imported articles the following rates of duty, except as otherwise
specifically provided for in this Code.
(This portion containing the voluminous description of rates of import
duties, has been deleted for the convenience of readers who are more
interested on the substantive provisions of the Code)

Sec. 105. Conditionally Free Importations. The following articles shall be


exempt from the payment of import duties upon compliance with the
formalities prescribed in, or with the regulations which shall be
promulgated by the Commissioner of Customs with the approval of the
department head:
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.
b. 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.
c. 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".
Commercial 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.
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 lifepreservers 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.
e. 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 onehalf 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.
f 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.
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.
h. 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 onehalf 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.
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 onehalf 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.
Negative 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.
o. 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.
Articles 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.
aa. 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. 106. Drawbacks: a. On Fuel Used for Propulsion of Vessels. On all
fuel imported into the Philippines which is afterwards used for the
propulsion of vessels of Philippine registry engaged in trade with foreign
countries, or in the coastwise trade, a refund shall be allowed equal to the
duty imposed by law upon such fuel, less one per cent thereof, which shall
be paid under such rules and regulations as may be prescribed by the
Commissioner of Customs with the approval of the department head.
b. On Articles Made from Imported Materials or Similar Domestic Materials
and Wastes Thereof Upon the exportation of articles manufactured or
produced in the Philippines, including the packing, covering, putting up,
marking or labeling thereof, either in whole or in part of imported
materials, or from similar domestic materials of equal quantity and
productive manufacturing quality and value, such question to be
determined by the Collector of Customs, there shall be allowed a

drawback equal in amount to the duties paid on the imported materials so


used, or where similar domestic materials are used, to the duties paid on
the equivalent imported similar materials, less one per cent
thereof:Provided, That the exportation shall be made within three years
after the importation of the foreign material used or constituting the basis
for drawback: And Provided, further, That when the articles exported or
coverings thereof are in part of materials grown or produced in the
Philippines not entitled to drawback under this section, the imported
materials, or the similar domestic materials of equal quantity and
productive manufacturing quality and value entitled to drawback, shall so
appear in the completed articles or packages that the quantity or measure
thereof may be ascertained: AndProvided, finally, That the imported
materials, or the similar domestic materials entitled to drawback under
this section for which drawback is claimed, shall be identified; that the
quantity of such materials used and the amount of duty paid thereon or, if
the domestic materials, paid upon its equivalent, shall be ascertained; and
that the fact of their exportation shall be established; and the refund if
made shall be paid to the manufacturer, producer, or exporter, or to the
duly authorized agent of any of them, under and in accordance with such
rules and regulations as the Commissioner of Customs shall prescribe with
the approval of the department head.