Philippine Tariff Commission

An n u a l Re p o r t 2009
House/Senate Bills/Resolutions and Other
Committee Concerns
Comments/Recommendation/Inputs of the
Commission
House Bill No. 5342 (Cont.)
In addition to the export duties, herein referred to as
the basic rate, there shall be levied, assessed and
collected a premium duty on the difference between
the current price as established by the Bureau of
Customs and the base price of the products in
accordance with the schedule specified under the
column Premium Duty; Provided, that should the
current price of any export product be below the
established base price, then only the basic rate shall
be applied; Provided, further, that initially, the base
price upon which the premium duty shall be levied
is 80% of the F.O.B. value of the exports established
by the Bureau of Customs for February 1974. The
National Economic and Development Authority
shall, from time to time, review and establish such
base prices taking into account, among others, the
cost conditions in various industries.
For purposes of computing the duty, the cost of
packaging and crating materials shall be deductible
from the export value, provided such materials
are domestically manufactured using a substantial
portion of local raw materials, as determined by the
Board of Investments.”
The Commission further proposes that the
language of Section 515 of the TCCP be replicated
in the proposed paragraph 2 of Section 1712, to wit
(suggestions bracketed):
“The President, upon recommendation of the
National Economic and Development Authority,
may subject any of the [above products to higher
or lower rates of duty provided in this Section,
include additional products, or exclude or exempt
any product from this Section.] In the exercise of
this authority the President shall take into account:
(1) the policy of encouraging domestic processing;
(2) the prevailing prices of export products in the
world market; (3) the advantages obtained by export
products from international agreements to which
the Philippines is a signatory; (4) the preferential
treatment granted to our export products by foreign
governments; and (5) the need to meet domestic
consumption requirements.”
6. Since there are special laws providing for the
above trade remedy measures, namely, (i) Republic
Act 8752 – Anti-Dumping Act of 1999; (ii) Republic
Act 8800 – Safeguard Measures Act of 2000; and
(iii) Republic Act 8751 – Countervailing Act of 1999,
these measures need no longer be in the CTMA and
the Commission proposes their deletion.
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