TARIFF LAWS

• Pursuant to the provisions of Republic Act No. 10863, otherwise known as the Customs Modernization and Tariff Act, the Tariff Commission is mandated to serve as a key adviser to the executive and legislative branches of government on tariff and related matters, an independent adjudicatory body on trade remedy cases, and an advocate of industry competitiveness and consumer welfare.
• The Tariff Commission performs both governmental and quasi-judicial functions


  • Adjudicate cases on trade remedy measures
  • Study the impact of tariff policies and programs on national competitiveness and consumer welfare
  • Administer the Philippine tariff schedules and nomenclatures
  • Issue advance rulings on tariff classification and rulings on disputes over tariff classification
  • Provide the President and Congress with independent analysis, information and technical support on matters related to tariff and non-tariff measures
  • Analyze the nature, composition, and classification of goods for customs and other related purposes
  • Review pertinent trade agreements and make recommendations, if necessary, on the consistency of the terms of the agreements with the national policy objectives
  • Conduct public consultations and public hearings pursuant to its functions
• Philippine Tariff Finder (PTF)


  An application intended to help users search for Philippine tariff rates including the tariff reciprocity arrangements under the ACFTA and AKFTA Agreements as well as the applicable Rules of Origin
• The Tariff Commission is an ISO-certified organization: ISO 9001:2015 - Quality Management Systems on the Issuance of Advance Ruling on Tariff Classification under CMTA Sec. 1100.
• The Tariff Commission is also an accredited CPD (Continuing Professional Development) provider for licensed customs brokers.
• Chairperson


  Marilou P. Mendoza
• Commissioner


  • Ernesto L. Albano
  • Marissa Maricosan A. Paderon
• Qualifications of TC Chief Officials

  • Natural-born citizens of the Philippines
  • Of good moral character and proven integrity
  • Possess the necessary qualifications requisite for developing expert knowledge of tariff and trade related matters
• During their terms of office, the Chairperson and the Commissioners shall not engage in the practice of any profession, or intervene directly or indirectly in the management or control of any private enterprise which may, in anyway, be affected by the functions of their office. They shall not be, directly or indirectly, financially interested in any contract with the government, or any subdivision or instrumentality thereof.
• Appointment and Compensation of TC Officials and Employees

  All employees of the Commission shall be appointed by the Chairperson in accordance with the Civil Service Law except as the private secretaries to the offices of the Chairperson, Commissioners and Executive Director.
• Functions of the Tariff Commission


  • Make formal judgment or decision on cases on the application of trade remedies against imports
  • Administer Philippine tariff schedules and nomenclature
  • Issue Rulings on tariff classification pursuant to CMTA Sec. 1100
  • Other functions relating to tariff policies and programs on national competitiveness
• The Tariff Commission shall make Annual and technical reports available to the President and Members of Congress.
• Access to Documents and Assistance to the Tariff Commission


  • The TC have access to any document pertinent to the subject matter under investigation, in the possession of any person or entity engaged in the production, importation, or distribution of goods under investigation
  • The TC shall have power to summon witnesses, take testimony, administer oaths, and to issue subpoena duces tecum requiring the production of books, papers, or documents relating to the matter under investigation
  • The TC can request the views, recommendations, and assistance of any government office, agency, or instrumentality who shall be expected to cooperate fully with the Commission
• Sworn and Verified Statements

  • The TC may order the taking of sworn statements
  • The TC is authorized to require any importer, grower, producer, manufacturer or seller to file with the Commission a statement, under oath, giving the selling prices in the Philippines of goods imported, grown, produced, fabricated or manufactured by such person
• Implementing Rules and Regulations


  The Commission shall promulgate and adopt such rules and regulations as may be necessary to carry out the provisions of this Act
• Flexible Clause


  Refers to the power of the President upon recommendation of the NEDA: to increase (not higher than 100% ad valorem) tariff rates; to reduce tariff rates; to remove existing protective tariff rates; to change commodity classification; to establish import quota on certain commodities; to ban importation of any commodity; and to impose additional duty on all import not exceeding 10% ad valorem
• Promotion of Foreign Trade

  • To expand foreign markets for Philippine products by: (1) Entering into trade agreements with foreign governments; and (2) Modifying import duties, changes in classification and other import restrictions as are required or appropriate to carry out and promote foreign trade with other countries
• Preferential Trade Agreements


  Agreements that grant tariff concessions and contain rules of origin to determine eligibility for preferential tariff treatment
• Trade in Goods Agreement

  The primary agreement concerned with the granting of tariff concessions and contains rules of origin and guidelines to determine if goods are eligible for preferential tariff treatment
• ASEAN (Association of Southeast Asian Nations)

  • Holds ASEAN Summits where heads of government meet to discuss and resolve regional issues, as well as conduct meetings with other countries to promote external relations
  • Summits held twice a year starting 2007
• ASEAN Community


  Established in 2003 with 3 pillars: ASEAN Political-Security Community, ASEAN Economic Community, ASEAN Socio-Cultural Community
• ASEAN Economic Community Blueprint 2025


  Outlines the plan to achieve an integrated, competitive, innovative and dynamic ASEAN economy
• Birth of the ASEAN Free Trade Area (AFTA)

  1992
• Common Effective Preferential Tariff (CEPT) Scheme


  Mechanism to establish the ASEAN Free Trade Area
• Other ASEAN Initiatives


  • E-ASEAN Framework Agreement
  • ASEAN Integration System of Preferences (AISP) Scheme for CLMV Countries
  • ASEAN Framework Agreement for the Integration of Priority Sectors
  • ASEAN Harmonized Tariff Nomenclature (AHTN)
• The objective of the ASEAN Framework Agreement for the Integration of Priority Sectors is to enable the progressive, expeditious and systematic integration of these priority sectors in ASEAN to accelerate the realization of the ASEAN Economic Community
• Trade Remedy Measures


  • Anti-Dumping Measure
  • Subsidies and Countervailing Measure
  • Safeguard Measure
• Safety Nets Against Injurious Trade Practices

  • Anti-Dumping Measure
  • Subsidies and Countervailing Measure
  • Safeguard Measure
• Trade Practices


  • Anti-Dumping
  • Subsidies and Countervailing
  • Safeguard
• Anti-Dumping Measure


  Trade remedy measure to protect the domestic industries against unfair trade practice caused by dumping
• Dumping


  Refers to the practice of a firm charging a lower price for a product in the export market than the normal value in the home market
• Elements of Dumping


  • Like product
  • Price difference/Dumping Margin
  • Material Injury
  • Causality
• Like Product


  Refers to the domestic producers of like products as a whole or to those such producers whose collective output of the products constitutes a major proportion of the total domestic production of those products in the industry concerned
• Normal Value


  The comparable price of the like product when destined for consumption in the exporting country
• Export Price


  The price at which the product is sold from the exporting country to the importing country
• Alternative Export Price


  Used when the export price is unreliable or unascertainable
• Material Injury


  Refers to material injury to a domestic industry ("current or present injury"), threat of material injury ("future injury"), or material retardation of the establishment of a domestic industry
• Causality


  Causal relationship between the dumped imports and the injury to the domestic industry
• Subsidies and Countervailing Measure

  Trade counter-measure adopted by government to offset any bounty or subsidy given to exporters which is not generally available to other producers of the exporting country
• Elements of Countervailing


  • Like Product
  • Subsidy
  • Material Injury
  • Causality