Tariff 1

Principles of
Tariff

Presidential Decree No. 1464

This law has amended several provision
of Presidential Decree No. 34.
Codified all Tariff and Customs Code into
one single code.
Presented an amendment thereto which
is now the present Tariff and Customs
Code of the Philippines (Tariff and
Customs Code of 1978).
This Decree was issued to infuse
flexibility.
Keep pace (speed, movement) with the
changing needs and demands of the
trade and commerce.
Strengthen the punitive (corrective)
force of the Tariff and Customs Code
against smuggling and other forms of
customs fraud (deception, scam, racket
or deceit) during that time.
It took effect on April 01, 1978.

Executive Order No. 688

Another revision of the tariff system took place
when the Philippines joined the Customs
Cooperation Council (CCC) prompted by then
President Marcos.
Issued on May 9, 1981
In accordance to the Flexible Tariff powers
under Section 401 of P.D. 1464, which ordered
the alignment of the Philippine Tariff
Nomenclature and the General Rules of
Classification with that of Customs Cooperation
Council Nomenclature. CCCN have been the tariff
structure of the Philippines ever since but
presently by the GATT General Agreement on
Tariffs and Trade.
The creation of EO 688 is to order the Tariff
Commission to draft the RULES of
Classification and to align the Philippine Tariff
Nomenclature in accordance with the CCCN.
Did not provide for any amendment to PD 1464
known as the Tariff and Customs Code of the
Philippines.

Executive Order 127

During the reign of then Pres. Aquino while she
was exercising both executive & legislative
power under the revolutionary government and
by the power vested in her by the Freedom of
Constitution, E.O 127 was issued in January 30,
1987.
Ordered the re-organization of the then Ministry
of Finance(now Department of Finance) and its
attached agencies (known as the Bureau of
Customs and the Bureau of Internal Revenue) to
be
more
capable
and
responsive
organizationally and functionally in its primary
mandate of judiciously generating and
efficiently managing the financial resources of
the Government.
By the enactment of this order, the Bureau of
Customs was strengthen by the addition of Two
(2) assistant commissioners that divided the
Bureau of Customs into four (4) groups which
are headed by Four (4) Deputy Commissioners
of Customs.

Executive Order 156

Issued as an amendment to Sec. 201 of P.D. 1464

changing the basis of the dutiable value from
Home Consumption Value (HCV) to Fair Market
Value
- Home Consumption Value - HCV is the wholesale
price in the domestic market of the country of
manufacture or export on the date of exportation
of the same.
-Fair Market Value -Probable price at which a
willing buyer will buy from a willing seller when
(1) both are unrelated,
(2) know the relevant facts,
(3) neither is under any compulsion to buy or sell,
and
(4) all rights and benefit inherent in (or attributable
to) the item must have been included in
the transfer.

Republic Act 7650

This act repealed Section 1404 of the P.D.

1464.
Abolished the office of a Customs
Appraiser but incorporated the separate
functions of a Customs Appraiser and the
Customs Examiner into one Customs
Officer tasked to inspect and appraise
imported articles, now the present Section
1403.
Also amended Section 1401 of P.D. 1464 on
conditions for Examination of Imported
articles.
Approved into law on April 6, 1993 during
the time of former Pres. Fidel Ramos.

Republic Act 7651

It was passed into law two (2) months after
the enactment of R.A. 7650.
Introduced amendments to P.D. 1464, which
revitalized and strengthened the Bureau of
Customs in its fight against technical
smuggling and other customs fraud.
Defined clearly those imported articles
deemed abandoned in favor of the
government and its manner of disposition.
Rules on undervaluation, misclassification
and misdeclaration.
Issuance of warrant of seizure and its
appeal process
The provision on the issuance and
suspension/revocation of license for
customs brokers.
Signed into law on June 04, 1993 by then
Pres. Ramos.

Republic Act 8181

Enacted by the Tenth Congress of the
Philippines on March 27, 1996 in compliance
with the Philippines accession to the World
Trade Organization.
Introduce a change in the basis of dutiable
value of imported articles subject to an ad
valorem rate of duty from FMV to
transaction value (TV) consistent with the
principles and general provisions of the
GATT of 1994, Uruguay Round Final Act
which the Phils. is a signatory.
The applicationof the Transaction Value was
deferred by Congress authorizes its shift
before Jan. 01, 2000.
The dutiable value of an imported article
subject to an ad valorem rate of duty shall
be based on the export value as interim
value before the full implementation of the
transaction value.

Republic Act 9135

New tariff measure was passed by the eleventh
congress and signed into law by Pres. Gloria
Macapagal Aroyo on April 27, 2001, and took effect
on June 02, 2001.
Relative to the principles incorporated by the
creation of R.A. 8181, the legislature now authorizes
the shift from the interim valuation of Export Value
to the us of Transaction Value as mandated by the
WTO valuation agreement where the Philippines was
committed to implement way back January 01, 2000.
The legislature clarified and carefully structured the
Transaction Value, which is the price actually PAID OR
PAYABLE for the goods when sold for export to the
Philippines plus adjustments as provided for under
the law.
Applies additional safety measures against
undervaluation and other fraud by the introduction
of force acquisition by the Bureau of Customs against
gross undervalued goods.
Introduces the dual mandatory requirements of
Record Keeping, and the Post Entry Audit System
which objective is to determine whether or not the
importer declared the correct Transaction Value of
his imported articles.

Republic Act No. 9280

Known as the Customs Brokers Act of 2004
It professionalizes the practice of customs
broker profession and corporations from
engaging in the practice of customs broker
profession.
It expressly repealed Section 3401 to 3409
of P.D. 1464 as amended (Tariff and
Customs Code of the Philippines

 SEC. 3401. Qualifications of Applicants for Customs

Broker's Certificate. - All applicants forcustoms
broker's certificates shall pass a written examination
for the purpose.Applicants for admission to the said
examination
shall
have
the
following
qualifications:(a) At least 21 years of age;(b) A citizen
of the Philippines;(c) Of good moral character; and(d
) Has completed at least four -year collegiate course, where he has creditably takenat
least eighteen (18) academic units in tariff and
customs and/or taxation, and applicantmay be
allowed to take the examination provided that for
every deficiency of three (3)academic units in tariff
and customs and/or taxation shall be substituted by
at least three (3)months of actual experience in
customs brokerage and/or customs and tariff
matters:Provided, That said experience shall be duty
certified by the employer or employers of
theapplicantNo
corporation,
association
or
partnership shall engage in the customs brokerage
businessunless at least two (2) of the officers of such
corporation or association, or at least two (2) ofthe
members of such partnership have such
certificate.No certificate as customs broker shall be
granted to any person who has been convicted ofa
crime involving moral turpitude