tarlaw

• Tariff Commission


  The principal authority on tariffs and trade remedy measures
• The Philippine Tariff Commission


  An attached agency of the National Economic and Development Authority (NEDA)
• Chief Officials of the Tariff Commission

  • Chairman/Chairperson
  • Two commissioners as members
• Sec. 1600 of the CMTA provides for the qualifications of the chief officials
• Qualifications of chief officials

  • Natural-born citizens of the Philippines
  • Of good moral character and of proven integrity
  • Possesses experience and academic training and knowledge in tariff and trade related matters
• The chairman and the two member commissioners 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 their office; Be financially interested, directly or indirectly, in any contract with the government, or any subdivision or instrumentality thereof.
• Appointment of employees


  The Chairperson has the authority to appoint all the employees of the Tariff Commission, except the PRIVATE SECRETARIES to the offices of the Chairperson, Commissioners and Executive Director
• Official Seal of the Tariff Commission


  • Wheel of progress
  • Agricultural sector
  • Trade and Industry Sector
  • Depicts hopes and aspirations of the Nation continued economic growth
• The uppermost picture – the circular design with spokes – is symbolic of a wheel which depicts movement, delivery or conveyance. The Commission enjoys a crucial partnership with the domestic industries towards the common goal of attaining progress through sustainable growth and development. The wheel of progress is depicted as winged symbolizing not only how fast progress can be achieved with such decisive partnership, but also how expeditious the Commission performs its core functions
• The main functions of TC as mandated in the CMTA are all geared towards the development and efficiency of our local industries, ultimately helping them achieve global competitiveness. Thus, Commission's sphere of activities reaches out to both the agricultural sector (depicted by the bundled rice stalks on the left) and the trade and industry sector (represented by the picture of a factory with a smokestack on the right). All efforts to assist these sectors of the country's economy, however, are consistently tempered by the Commission's vigilance to safeguard consumer welfare.
• The bottom figure is a dragon. In mythology, this is a composite winged reptilic beast, generally said to have a lion's claws, eagle's wings and serpent's tail. The conception is widespread and is sometimes used as a national symbol. This is used to depict the hopes and aspirations of the nation for continued economic growth with social equity spurred by the successful implementation of meaningful tariff and trade reforms.
• The 6 circles in the middle symbolize the industry groupings.
• Functions of the Tariff Commission


  • Adjudicate cases on the application of trade remedies against imports
  • Study the impact of tariff policies and programs on national competitiveness and consumer welfare
  • Administer the Philippine tariff schedules and tariff nomenclatures
  • Issue advance rulings on tariff classification of imported goods and render rulings on disputes over tariff classification of goods
  • Provide the President and Congress with independent analysis, information and technical support on matters related to tariff and nontariff measures
  • Analyze the nature and composition, and the classification of goods according to tariff commodity classification and heading number
  • Review the trade agreements for negotiation and trade agreements entered into by the Philippines and make recommendations
  • Conduct public consultations and public hearings
  • Deputize or delegate, to appropriate government agency its function of rendering rulings on disputes over tariff classification of goods
• The Commission shall place at the disposal of the President and any Member of the Congress of the Philippines all information at its command. It shall conduct such investigation and submit reports as may be required by the President and the Congress of the Philippines. It shall likewise report to the President and Congress on the first Monday of December of each year and hereafter, a statement of methods adopted and a summary of all reports made during the year.
• Subpoena duces tecum


  To compel the production from persons of certain documentary evidence or items and present before them
• The Commission may order the taking of sworn statements at any stage of any proceeding or investigation before it. The sworn statements must be made before a person duly authorized to administer oaths.
• The Commission 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.
• Subpoena ad testificandum


  An order to testify or a technical and descriptive term for the ordinary subpoena
• The Commission shall promulgate and adopt such rules and regulations as may be necessary to carry out the provisions of this Act.
• Based on practice, in the issuance of implementing rules and regulations, the Commission submits first the proposed rules and regulations to the NEDA Board for approval considering that the same is under NEDA's administrative supervision.
• The President, upon recommendation of the NEDA, is empowered to: INCREASE (not more than 100% ad valorem)/REDUCE/REMOVE existing rates of import duty (including change in classification); Establish IMPORT QUOTA or to BAN imports of any commodity; Impose an ADDITIONAL DUTY ON ALL IMPORTS not exceeding 10% ad
• Subpoena ad testificandum
• Implementing Rules and Regulations

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

  2. Based on practice, in the issuance of implementing rules and regulations, the Commission submits first the proposed rules and regulations to the NEDA Board for approval considering that the same is under NEDA's administrative supervision
• Flexible Clause


  • Refers to the authority given to the President to adjust tariff rates under Sec. 1608 of the CMTA, which is the enabling law that made effective the delegation of the taxing power to the President under the Constitution
  • It means that the customs tariff is flexible, responsive or easily adjustable with the changing economic and political conditions of the country
• Public hearing is a mandatory requirement of the law in the investigation of petitions under Sec. 1608, except in the imposition of an additional duty not exceeding 10% ad valorem
• Power of the President under Sec. 1608


  Authority to modify the form of duty
• Who can file a Sec. 1608 petition for tariff modification


  • Any interested party, including domestic manufacturers, importers, exporters, customs brokers, and government agencies, may file a Section 1608 petition for tariff modification
• How is an application for tariff modification acted upon

  The Tariff Commission (TC) conducts investigations on the petitions it receives during which public hearings are held to afford interested parties reasonable opportunity to present their views. TC submits its findings and recommendations to the National Economic and Development Authority (NEDA), which then schedules these for deliberation by the Tariff and Related Matters (TRM) Technical and Cabinet Committees
• Composition of the CTRM

  • The Secretary of DTI as Chairman, with the Director-General of the NEDA as Co-Chairman. Its members are the Executive Secretary; the Secretaries of DA, DBM, DOLE, DAR, DOF, Foreign Affairs, and Environment and Natural Resources (DENR); the Governor of BSP; and the Chairman of the Tariff Commission
• Procedure for filing a tariff modification

  A petitioner is required to accomplish TC Form 3 (Request for Tariff Modification)
• Petitions found to be meritorious under Section 1608 are subject to a Filing Fee of Five Thousand Pesos (P5,000.00) per tariff heading, per petitioner, which is collected prior to the conduct of public hearing. A Legal Research Fund Fee of Fifty Pesos (P50.00) per tariff heading is also collected
• Petitioners also share in the publication cost of TC's Notice of Public Hearing (which is published in two newspapers of general circulation). A petitioner's share in the publication cost is based on the number of products he is petitioning for tariff modification and subject of the public hearing
• Effectivity of Sec. 1608

  • For subsections (a) and (b) - 30 days after promulgation
  • For subsection (c) - at the discretion of the President
• The power delegated in Sec. 1608 shall be exercised only when Congress is not in session
• Withdrawal or termination of authority under Sec. 1608

  Through a joint resolution
• Purposes of Sec. 1609


  • To expand foreign markets for Philippine products as a means of assisting in the economic development of the country
  • To overcome domestic unemployment
  • To increase the purchasing power of the Philippine peso
  • To establish and maintain better relations between the Philippines and other countries
• Powers granted to the President under Sec. 1609


  • Enter into trade agreements with foreign governments
  • Modify import duties and other import restrictions as part of these trade agreements
• Preferential Trade Agreements


  • Also known as Reciprocity treaties
  • The concession acquired or obtained by the government herein is limited only to the country, which is a party to the agreement
  • These are pledges of two contracting parties to each other that in the imposition of duties on goods imported into one of the countries which were the produce or manufacture of the other, there shall be no discrimination against them in favor of goods of like character imported from any other country
• Trading Agreements wherein the Philippines is a member/signatory

  • WTO
  • APEC
  • AFTA
  • PJEPA
  • ACFTA
  • AKFTA
  • AIFTA
  • AANZFTA
  • AJCEPA
  • RCEP
  • PH-EFTA
• Suspension of the application of the concessions

  • The application of any concessions to articles may be suspended by the President when:
  • The country which is a party to the agreement entered into by the President is operating an international cartel
  • Such countries have policies or actions which in the opinion of the President tends to defeat the purpose set in the agreement