tc annual 2005 - Philippine Tariff Commission

Annual Report 2005 

VISION 

The Tariff Commission shall be the 

principal and independent authority on tariff, 

trade remedy measures and competition policy 

to enhance industry competitiveness and 

promote consumer welfare. 

MISSION 

The Tariff Commission, 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 

a strong competition law and policy, remains committed to the pursuit of 

good and effective governance. In the conduct of public hearings and 

consultations, we commit ourselves to balance with objectivity the 

interests of our stakeholders, including consumers. 

Where our competence in tariff commitments is required in 

relation to international trade, we work harmoniously with other 

agencies in promoting the national interest. 

We endeavor to secure the best for our staff, to hone their skills 

and develop to the fullest their potentials even as we instill in them the 

values of honesty, dignity and the pride inherent in working for country 

and people. 

The Tariff Commission discharges its duties and 

responsibilities with utmost competence and efficiency as a model of 

excellence and integrity in government service. 

i

_________________________________________________________________________ 

REPUBLIC OF THE PHILIPPINES 

TARIFF COMMISSION 

5 th Floor, Philippine Heart Center Building 

East Avenue, Diliman, Quezon City 

December 29, 2005 

Her Excellency 

GLORIA MACAPAGAL-ARROYO 

President of the Philippines 

Malacañang, Manila 

Madam President: 

Pursuant to the provisions of Section 507 of the Tariff and 

Customs Code of the Philippines (Presidential Decree No. 1464, as 

amended), I have the honor to submit herewith the Annual Report of 

the Tariff Commission for Calendar Year 2005. 

Very truly yours, 

ii


TABLE OF CONTENTS 

Vision/Mission 

Letter to the President 

The Year in Review 1 

Commission Caseload 4 

Section 401 – Modification of Duty (Flexible Clause) 5 

Section 402 – Promotion of Foreign Trade 16 

Trade Remedy Measures 

A. Republic Act 8752 (Anti Dumping Act of 1999) 27 

B. Republic Act 8800 (Safeguard Measures Act of 2000) 28 

Section 1313-a – Tariff Commodity Classification 31 

Section 506 – Assistance to the President and Congress of the Philippines 

33 

Advocacy Program 43 

Other Activities 

A. Competition Policy 45 

B. Research Project 49 

C. Assistance to Stakeholders 51 

Directory of Tariff Commission Officials and Staff 

Annex “A” TCC Rulings Issued in 2005 

Annex “B” 

Annex “C” 

Annex “D” 

Attendance to International Trade Meetings 

Foreign Trainings/Seminars Attended 

Local Trainings/Seminars Attended 

iii


THE YEAR IN REVIEW 

In 2005, the Tariff Commission remained steadfast in its mandated functions 

in the process assisting Government in its quest for alternative solutions to the 

challenges posed by both global competition and an ever-growing fiscal deficit. To 

this end, the Commission undertook and completed a comprehensive review of the 

tariff structure under Section 401 (Modification of Duty) of the Tariff and Customs 

Code of the Philippines (TCCP). The review involved the re-calibration of tariffs with 

a view to promoting sustainedly viable and internationally competitive domestic 

industries. The Commission’s recommendations on the tariff structure are currently 

being evaluated by the Tariff and Related Matters (TRM) Committee for the 

determination of the MFN schedule for 2006 onwards. 

Several individual petitions were acted upon and motu proprio public hearings 

were likewise conducted by the Commission during the year. The said public 

hearings resulted in the issuance of seven (7) Executive Orders (EOs), to wit: 

• EO No. 418 (imposition of additional specific duty on imports of certain used 

motor vehicles); 

• EO No. 419 (temporary increase of the import duty on high engine 

displacement completely built-up vehicles); 

• EO No. 440 (reduction of tariffs on crude petroleum oils and refined petroleum 

products under EO No. 336, series of 2004); 

• EO No. 443 (exemption, from the prohibitions cited under Article 2, Section 3 

of EO No. 156, series of 2002 and from additional specific duty under EO No. 

418, of used motor vehicles donated to local government units); 

• EO No. 449 (modification of the rate of import duty on bioethanol fuel); 

• EO No. 450 (reduction of the rates of import duty on wood pulp and aerosol 

can ends made of tinplate); and 

• EO No. 477 (amendment to Section 1 of EO No. 418 [s. 2005] to reflect the 

intended product coverage of the imposition of additional specific duty of 

P500,000.00 on imports of used motor vehicles). 

1

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Under Section 402 (Promotion of Foreign Trade), public consultations were 

held with all parties concerned regarding the Philippines’ regional/bilateral trade 

negotiations under the ASEAN (which include ASEAN Integration System of 

Preference [AISP]; Common Effective Preferential Tariff [CEPT] Scheme; ASEAN 

Industrial Cooperation [AICO] Scheme; ASEAN Priority Integration Program [PIP]; 

ASEAN-China Free Trade Area [ACFTA]; ASEAN-Korea Free Trade Area [AKFTA]) 

and Japan-Philippines Economic Partnership Agreement (JPEPA). With regard to 

WTO activities, the Commission provided technical assistance which include, among 

others, preliminary simulations on the impact of tariff reduction formulas proposed by 

the European Union, Norway and the United States, as well as the so-called Girard 

formula, on the bound tariffs of Philippine non-agricultural products. 

In 2005, the President signed the following six (6) EOs drafted by the 

Commission concerning the implementation of the tariff commitments of the 

Philippines arising from its membership in the ASEAN: 

• EO No. 440 (reversion of the CEPT rates of duty on crude petroleum oils and 

refined petroleum products to 3% [which were increased to 5% under EO No. 

336] and reduction of the CEPT rate of duty on liquefied petroleum gas to 

0%); 

• EO No. 445 (AICO Arrangement between Panasonic Manufacturing 

Philippines Corporation, Matsushita Electric Company [Malaysia] Bhd., 

Panasonic HA Air-Conditioning [M] Sdn. Bhd., and Panasonic AVC Networks 

Kuala Lumpur Malaysia Sdn. Bhd.); 

• EO No. 448 (modification of the rates of import duty on certain articles to 

implement the AISP package of the Philippines); 

• EO No. 479 (AICO Arrangement between Toyota Motor Philippines 

Corporation, Toyota Autoparts Philippines, Inc., and Assembly Services Sdn. 

Bhd. [Malaysia]); 

• EO No. 484 (modification of the rates of duty on sugar in order to implement 

the preferential rates thereon under the CEPT Scheme for the AFTA); and 

• EO No. 485 (modification of the rates of duty on certain imported articles to 

implement the commitment to reduce the tariff rates on certain products to 

zero percent under the Early Harvest Programme of the ASEAN-China Free 

Trade Area.) 

In accordance with Republic Act 8752 (Anti-Dumping Act of 1999), the 

Commission on November 21, 2005 initiated the conduct of preliminary conference 

on the request of Asahi Philippines for the continued imposition of the definitive 

dumping duties on clear float glass from Indonesia. Public consultation is scheduled 

in January 2006. 

2


On the petition for the extension of the imposition of safeguard measure 

against the importation of gray Portland cement under Republic Act 8800 

(Safeguard Measures Act of 2000), the Commission conducted marathon public 

consultations on February 16-19, 2005. The submission of the Commission’s Final 

Report of Findings to the DTI Secretary was, however, overtaken by events. Said 

report was rendered moot with the issuance of the August 5, 2005 en banc 

Resolution of the Supreme Court denying with finality the DTI’s and CEMAP’s 

Motions for Reconsideration of the Supreme Court Decision dated July 8, 2004 

declaring the imposition of the safeguard measure on cement as null and void. The 

Resolution likewise enjoined the DTI Secretary from taking any further action on the 

Petition for Extension of the Safeguard Measure then pending with the Tariff 

Commission. On October 5, 2005, the Supreme Court’s decision of July 8, 2004 

became final and executory upon its recording in the Book of Entries of Judgments. 

Regarding the monitoring of the adjustment plan of the domestic flat glass 

industry, the Commission submitted on December 8, 2005 its Monitoring Report to 

the Secretary of Trade and Industry. 

Under Section 1313-a (Tariff Commodity Classification) of the TCCP, 

considered a major accomplishment of the Commission was its participation in the 

drafting of the revised ASEAN Harmonized Tariff Nomenclature (AHTN). For the 

guidance of users of the TCCP-AHTN based on the Harmonized Commodity Coding 

System (HS), the Commission prepared an Alphabetical Index to the TCCP-AHTN. 

The Commission likewise issued about 300 classification rulings during the year. 

In line with its activities under Section 506 (Assistance to the President and 

Congress of the Philippines), technical assistance was provided by the 

Commission to both houses of Congress by way of submission of 

comments/recommendation/inputs concerning proposed House Bills and Senate 

Bills involving tariff and trade matters. 

As an active advocate of Competition Policy, the Commission co-organized 

with the Japan Fair Trade Commission the 1 st APEC Training Course on 

Competition Policy for APEC Member Economies held in the Philippines at the 

Mandarin Oriental Manila on August 2-4, 2005. Foreign delegates from Indonesia, 

Thailand, Vietnam, Australia, Hong Kong, People’s Republic of China, Mexico, Peru, 

Chinese Taipei, and Russia actively participated in the discussions. Philippine 

participants included NEDA, DTI, SEC, BOI, DOJ, Philippine Ports Authority, Bangko 

Sentral ng Pilipinas, Intellectual Property Office, National Telecommunications 

Commission, WCI Consultancy, Federation of Philippine Industries, and the Tariff 

Commission. Keynote speakers were Professor Toshiaki Takigawa (Kansai 

University School of Law) and Professor Allan Fels (Dean, Australia and New 

Zealand School of Government). 

Finally, the year saw the Commission continue its advocacy program by way 

of lectures/seminars on the latest developments in trade and tariff policy. 

3

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COMMISSION CASELOAD, CY 2005 

SUBJECT 

SECTION 401 

CASES 

BROUGHT 

FORWARD 

FROM 

PREVIOUS 

YEAR 

REQUESTS 

RECEIVED/ 

INITIATED BY 

GOV’T. 

TOTAL 

REPORTS/ 

CLASSIFI- 

CATION 

RULINGS 

ISSUED 

REQUESTS 

WITHDRAWN/ 

WITHHELD 

REQUESTS/ 

RULINGS 

OUTSTANDING 

( as of 

DEC. 31, 2005) 

Tariff Modification 7 16 23 23 - - 

SECTION 402 

AICO 

2 

5 

7 

7 

- 

- 

CEPT 

- 

5 

5 

3 

- 

2 

ASEAN-ISP 

- 

1 

1 

1 

- 

- 

ASEAN-PIP 

- 

1 

1 

1 

- 

- 

ASEAN-China 

FTA 

- 

1 

1 

1 

- 

- 

ASEAN-Korea 

FTA 

- 

1 

1 

1 

- 

- 

JPEPA 

- 

2 

2 

1 

- 

1 

SECTION 1313-A 

Tariff 

Classification 

5 302 307 269 34 2 

SECTION 301 

Expiry Review - 1 1 - - 1 

R. A. 8800 

Extension of 

Safeguard 

Measure 

1 

- 

1 

1 

- 

- 

Monitoring Review 

- 

1 

1 

1 

- 

- 

4

Section 401 – Modification of Duty (Flexible Clause) 


Section 401 of the Tariff and Customs Code provides the legal basis by which 

the President may (1) change the level and form of import duties; (2) impose an 

import quota or ban imports; and (3) levy an additional duty on all imports. 

Any interested party (e.g., domestic manufacturers, importers, exporters, 

customs brokers, and government agencies) may file with the Tariff Commission a 

Section 401 petition for tariff modification. The Commission investigates such 

petitions during which public hearings are held to afford interested parties 

reasonable opportunity to present their views. It submits its findings and 

recommendations to NEDA, which then schedules these for deliberation by the Tariff 

and Related Matters (TRM) Technical and Cabinet Committees. 

Final approval is granted by the NEDA Board after which the Commission 

prepares the implementing Executive Order. 

Commissioner Manzano presides over the Section 401/402 public hearing/consultation on 

the proposed reduction of duty on crude petroleum oil, refined petroleum products and 

liquefied petroleum gas (June 3. 2005). 

5

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For the period under review, the Commission conducted public hearings covering the 

following commodities/subject matters: 

Public Hearings Conducted 

Actions Taken by the 

Commission/Status 

January 25, 2005 

Individual petitions for tariff modification: 

2207.20 Ethyl alcohol, denatured 

of any strength 

Report/Recommendation submitted to 

NEDA. 

Drafted implementing Executive Order 

(EO 449 issued on July 22, 2005). 

3214.90 00 White sealer 


NEDA. 

3909.30 90 Polymethylene polyphenyl 

polyisocyanate 


NEDA. 

47.01) Wood pulp 

47.03) 

47.04) 


NEDA. 



72.08 Flat-rolled products of iron or nonalloy 

steel, of a width of 600 mm or 

more, hot-rolled 


NEDA. 

7209.18 10 Tin-mill blackplate (TMBP) 


NEDA. 

6





7210.70 PVC laminated steel sheets 


NEDA. 

80.01 Tin ingots 


NEDA. 

8309.90 Aerosol can ends (tops and 

bottoms), made of tinplate 


NEDA. 



8455.30 00 Rolls for rolling mills 


NEDA. 

85.28 Liquid crystal display (LCD) 

and digital light processing 

(DLP) television sets and 

monitors 


NEDA. 

7

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March 10, 2005 

Comprehensive Tariff Review on 

HS Chapters 25-40: Chemicals and 

Allied Products 


NEDA. 

TRM-TWG (Technical Working Group) 

evaluation ongoing. 



HS Chapters 41-64: Leather, Wood, 

Paper, Textiles and Footwear 


NEDA. 

TRM-TWG evaluation ongoing. 

April 7, 2005 


HS Chapters 65-83: Metals and Non- 

Metal Products 

Petition of Filipino Galvanizers Institute 

(Incorporated) for tariff modification of 

cold-rolled products of steel under HS 

Hdg. 72.09 


NEDA. 



NEDA. 

8







HS Chapters 84-97: Machinery, 

Transport and Miscellaneous 

Manufactured Products 


NEDA. 




HS Chapters 1-24: Agriculture and Food 

Products 


NEDA. 


May 31, 2005 

Proposed reduction/suspension of import 

duty on frequently used spare and 

replacement parts for trucks 


NEDA. 

June 3, 2005 

Proposed tariff reduction on crude 

petroleum oils, refined petroleum 

products and liquefied petroleum gas 


NEDA. 


(EO No. 440 issued on June 29, 2005). 

November 29, 2005 

Proposed tariff modification on CKD 

hybrid, electric, flex-fuel (FFV) and 

compressed natural gas (CNG) 

vehicles 


NEDA. 

Draft implementing Executive Order 

submitted to NEDA for TRM 

consideration. 

9

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Following the above public hearings and the Commission’s reports on the 

same, the President signed the following EOs under Section 401: 

EO No. 418 (signed on April 4, 2005) 

• Modification of the tariff nomenclature and imposition of additional 

specific duty of P500,000.00 on imports of used motor vehicles (motor 

vehicles that have been sold, registered and operated in the 

roads/highways of any foreign state/country; all imported motor 

vehicles with mileage of more than 200 kms. regardless of year model), 

except for trucks, buses, and special purpose vehicles. 

EO No. 419 (signed on April 4, 2005) 

• Temporary increase of the rates of import duty on high engine 

displacement completely built-up vehicles for a period of one (1) year 

subject to review. 

EO No. 440 (signed on June 29, 2005) 

• Reversion of the MFN rates of duty on crude petroleum oils and refined 

petroleum products (which were increased to 5% under EO No. 336) to 

3% and reduction of the MFN rate of duty on liquefied petroleum gas to 

0%. 

EO No. 443 (signed on July 5, 2005) 

• Exemption of used motor vehicles donated to local government units 

from the prohibition on importation of used motor vehicles under EO 

No. 156 and from the imposition of specific additional duty under EO 

No. 418. 


• Reduction of the rate of import duty on bioethanol fuel to 1%, when 

imported with certification from the Department of Energy that said 

article will be used for the Fuel Ethanol Program. 


• Reduction of the rates of import duty on: (1) wood pulp to 1% and (2) 

aerosol can ends made of tinplate to 3%. 

10


EO No. 477 (signed on December 19, 2005) 

• Amendment to Section 1 of EO No. 418 (s. 2005) to reflect the intended 

product coverage of the imposition of additional specific duty of P500,000.00 

on imports of used motor vehicles. 

Exceptions to additional specific duty: trucks, buses and special purpose 

vehicles; motor vehicles imported under the “No Dollar Importation” 

program; and motor vehicles authorized for importation by the DFA intended 

for use by officials of the Diplomatic Corps. 

Philippine MFN Tariffs: 2005 Structure and Comprehensive Review 

On October 2 and December 30, 2003, the President issued Executive Orders 

(EOs) 241 and 264, respectively, which prescribed the Most-Favoured-Nation (MFN) 

tariff structure for 2004 and 2005. However, further tariff adjustments took place in 

2005 to achieve the following objectives: 

promote the competitiveness of the paper and aerosol industries, through 

EO No. 450; 

alleviate the impact of the Value Added Tax (VAT) Reform Law (Republic 

Act 9337) on prices of petroleum products, through EO No. 440; 

encourage energy conservation and independence in the transport sector, 

through EO Nos. 419 and 449; and 

improve air quality and promote road safety, through EO No. 418 as 

amended by EO Nos. 443 and 477. 

Similar to the 2004 structure, the 2005 MFN schedule is composed of fifteen 

(15) ad valorem tariff levels (0%, 1%; 3%; 5%; 7%; 10%; 15%; 20%; 25%; 30%; 

35%; 40%; 45%; 50%; 65%), with the higher tariffs applied on vegetables (25%); 

motor vehicles and environmental waste (30%); and on other sensitive agricultural 

products as rice, live animals (except live bovine animals), pork, goat meat, poultry 

meat, potatoes, coffee, maize, and sugar (at 35% to 65%). The change from the 

2004 structure lies in the introduction of specific duties: on 214 ASEAN Harmonized 

Tariff Nomenclature (AHTN) lines referring to used motor vehicles (with exceptions), 

an additional specific duty of P500,000.00 was introduced (under EO No. 418). 

11

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Of the total 11,259 AHTN lines in the 2005 MFN schedule, half have duties 

ranging from 0% to 3% (Chart 1). Tariff lines dutiable at 5% to 10% comprise 28%. 

The remaining 22% are the high-tariff lines with duties not lower than 15%. 

Chart 1. Frequency Distribution of 2005 MFN Ad Valorem Tariff Rates: 

Percentage Shares 

15% 

(13 %) 

20% 

(3 %) 

Above 20% 

( 7 %) 

0% 

( 4 %) 

1% 

(22 %) 

10% 

(12 %) 

5% & 7% 

(16 %) 

3% 

(24 %) 

Since the tariff adjustments in 2005 involved industrial products, the 

manufacturing average moved from 2004, changing by 5% for both the nominal and 

import-weighted average, albeit in opposite directions (Table 1). The 2005 overall 

average tariff, simple and trade-weighted, is 8% and 4%, respectively. The duties for 

agriculture range from 0% to 65%, for mining - 1% to 5%, and for manufacturing - 

0% to 30%. 

12


Table 1. Average MFN Tariff Rates: 2002 - 2005 

Sector 

Year 

Simple Average 

Tariff (%) 

Trade - Weighted 

Average Tariff (%) 

AGRICULTURE 

(HS Chapters 1 - 24) 

2002 12.18 10.17 

2003 11.04 8.64 

2004 11.85 9.22 

2005 11.85 9.23 

MINING 


2002 2.84 2.91 

2003 2.84 2.83 

2004 2.47 2.79 

2005 2.47 2.79 

MANUFACTURING 


2002 5.04 3.04 

2003 5.43 3.23 

2004 6.94 3.08 

2005 7.29 2.91 

OVERALL 


2002 6.03 3.78 

2003 6.19 3.72 

2004 7.51 3.66 

2005 7.81 3.51 

Notes: 

1. Tariffs were weighted using import levels for the year except for 2005 where averages 

were calculated using 2004 imports as weights 

2. Averages were calculated based on ad valorem duties as of EO No. 450 (s. 2005). 

13

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Effective rates of protection (EPRs) measure the net protection of value 

added received by domestic producers from the protection of their outputs and the 

penalty from the protection of their inputs. A positive EPR tends to show that an 

industrial activity is protected while a negative EPR implies that the activity is not 

conferred with incentives but rather penalized. The largely equal EPRs for 

agriculture and manufacturing imply that, on average, these sectors benefited to the 

same degree from the 2005 MFN tariff structure (Chart 2). 

Chart 2. Average Tariffs and Effective Protection Rates: 2005 

16.00 

14.00 

12.00 

10.00 

8.00 

6.00 

4.00 

2.00 

- 

Agriculture Mining Manufacturing Overall 

Simple Average Tariffs (%) 11.85 2.47 7.29 7.81 

EPR (%) 14.39 0.37 15.24 14.41 

14


To determine the MFN schedule for 2006 onwards, the Trade and Related 

Matters Cabinet (CTRM) Committee approved the conduct of a comprehensive tariff 

review. Public hearings, totaling five (5), were held by the Commission, in March 

and April 2005: 

Date 

Product Coverage 

10 March 2005 Chapters 25 - 40: Chemicals and Allied Products 

31 March 2005 Chapters 41 - 64: Leather, Wood, Paper, Textiles and Footwear 

7 April 2005 Chapters 65 - 83: Metals and Non-Metal Products 

13 April 2005 

Chapters 84 - 97: Machinery, Transport and Miscellaneous 

Manufactured Products 

14 April 2005 Chapters 1 - 24: Agriculture and Food Products 

Following the submission by the Commission of its report of findings and 

recommendations, the TRM convened a Technical Working Group, chaired by the 

Board of Investments and co-chaired by the Department of Agriculture, to finalize the 

new MFN tariff schedule. 

TC staff during the plant visit to Alcantara and Sons (Davao City) in connection 

with the 2005 comprehensive tariff review on plywood (AHTN Code 44.12). 

15

_________________________________________________________________________ 

Section 402 - Promotion of Foreign Trade 

Under this section, the President is mandated to enter into trade agreements 

with foreign governments and to modify import duties and other import restrictions as 

part of these trade agreements. 

Pursuant to the above, the Commission conducts public consultations where 

interested parties are afforded reasonable opportunity to present their views on 

proposed tariff modifications arising from trade agreements. The post-consultation 

process is the same as in Section 401. 

During the year, the Commission consulted with various stakeholders on the 

following arrangements related to foreign trade: 

Trade Forum/Subject 



ASEAN Integration System of 

Preference (AISP) 


Request for preferential rates on 

certain products of Cambodia, Laos, 

Myanmar and Vietnam 


NEDA. 

Drafted Executive Order implementing 

the grant of preferential rates 

requested. 

(EO No. 448 issued on July 22, 2005.) 

Common Effective Preferential Tariff 

(CEPT) Scheme for the ASEAN Free 

Trade Area (AFTA) 


Proposed CEPT schedule on sugar 

(HS Hdg. 17.01). 


NEDA. 


the proposed CEPT schedule on sugar. 

(EO No. 484 issued on December 29, 

2005.) 

16






Malaysia’s CEPT rates of 20% on 

certain motor vehicles and motorcycle 

products (AHTN Code Nos. 87.02, 

87.03, 87.04 and 87.11.) 


NEDA. 

June 3, 2005 

Proposed reduction of the CEPT rate of 

duty on crude petroleum oils, refined 

petroleum products and liquefied 

petroleum gas. 


NEDA. 


the proposed reduction of the CEPT 

rate on subject articles. 

(EO No. 440 issued on June 29, 2005.) 


Public consultation on products offered 

as compensation to Singapore 

resulting from the suspension of 

concessions on petrochemical 

products. 

Report/Recommendation being 

prepared for submission to NEDA. 


CEPT schedule for Malaysia under the 

reciprocity arrangement on selected 

motor vehicles and motorcycles. 



17

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ASEAN Industrial Cooperation 

(AICO) Scheme 


Application of Matsushita Electric 

Philippines Corporation (MEPCO) for 

the inclusion of all types of color 

television sets, flat and conventional 

models (AHTN Code No. 8528.12 90) 

in the AICO Scheme. 


NEDA. 


the preferential tariff rates on subject 

articles. 

(EO No. 445 issued on July 5, 2005.) 


Application of Honda Cars Philippines, 

Inc. for the inclusion of certain 

automotive part and components from 

Thailand, Malaysia and Indonesia. 


NEDA. 

Awaiting submission of Certificate of 

Eligibility (COE) from the ASEAN 

Secretariat. 

Application of Philippine Auto 

Components, Inc. for the inclusion of 

certain automotive components, 

instrument clusters, fuel pumps, car air 

conditioners and radiators and parts 

thereof from Thailand. 


NEDA. 

Draft implementing Executive Order 

submitted to NEDA for TRM 

consideration. 

September 15, 2005 


Components, Inc. for the inclusion of 

certain motor vehicle parts and 

accessories from Malaysia. 


NEDA. 

18







Component (PAC) for the inclusion of 

certain motor vehicle parts and 

accessories from Indonesia. 


NEDA. 

Japan-Philippines Economic 

Partnership Agreement (JPEPA) 


Philippine Offer List under the Japan- 

Philippines Economic Partnership 

Agreement (JPEPA). 


NEDA. 


Public consultation on certain motor 

vehicles and parts, accessories and 

other parts and raw materials thereof 

covered under the proposed JPEPA. 



ASEAN Priority Integration Program 

(PIP) 


Public consultation on the proposed 

additional products for the ASEAN PIP. 


NEDA. 

19

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ASEAN-China Free Trade Area 


Public consultation on products under 

the normal track of the ASEAN-China 

Free Trade Area falling under HS 

Chapters 1-97 with MFN rates of 0-5%, 

7%, 10%, 15% and 20% for reduction 

to 0% in 2010 or 2012 in accordance 

with the tariff reduction modality set 

forth in the Agreement on Trade in 

Goods. 


NEDA. 

ASEAN-Korea Free Trade Area 


Public consultation on the proposed 

modality for tariff reduction and 

elimination under the proposed 

Agreement on Trade in Goods of the 

proposed ASEAN-Korea Free Trade 

Area to determine the products for 

inclusion in the normal and sensitive 

tracks. 


NEDA. 

Chairman Abon (left), 

together with 

Commissioner 

Manzano, presides 

over the AICO 

consultation regarding 

the application of 

Phil. Auto Component, 

Inc. for the inclusion 

of certain motor 

vehicle parts and 

accessories from 

Malaysia 

(September 15, 2005) 

20


For the year 2005, the President signed the following EOs drafted by the 

Commission relating to the promotion of foreign trade: 

EO No. 440 (signed on June 29, 2005) 

• Reversion of the CEPT rates of duty on crude petroleum oils and 

refined petroleum products (which were increased to 5% under EO No. 

336) to 3% and reduction of the CEPT rate of duty on liquefied 

petroleum gas to 0%. 


• AICO Arrangement between Panasonic Manufacturing Philippines 

Corporation, Matsushita Electric Company (Malaysia) Bhd., Panasonic 

HA Air-Conditioning (M) Sdn. Bhd., and Panasonic AVC Networks 

Kuala Lumpur Malaysia Sdn. Bhd. regarding gas stoves, fully 

automatic washing machines, vacuum cleaners, split type air 

conditioners, colour television sets, oven toasters, and window type air 

conditioners. 


• Grant of tariff preferences to Cambodia, Lao PDR, Myanmar and 

Vietnam under the ASEAN Integration System of Preferences (AISP). 


• AICO Arrangement between Toyota Motor Philippines Corporation, 

Toyota Autoparts Philippines, Inc., and Assembly Services Sdn. Bhd. 

(Malaysia) regarding certain original equipment manufacture (OEM) 

automotive parts/components for Toyota Innova, Camry, Vios and 

Corolla. 


• Modification of the rates of duty on sugar as provided for under the 

Tariff and Customs Code of 1978, as amended, in order to implement 

the preferential rates thereon under the CEPT Scheme for the AFTA. 


• Modification of the rates of duty on certain imported articles as 

provided for under the Tariff and Customs Code of 1978, as amended, 

in order to implement the commitment to reduce the tariff rates on 

certain products to zero percent under the Early Harvest Programme of 

the ASEAN-China Free Trade Area. 

21

_________________________________________________________________________ 

Rules of Origin (ROO) 

Rules of Origin refers to the “set of criteria used to determine the country or 

customs territory of origin of a good or service in international trade.” Being an 

important component of any Free Trade Agreement (FTA), it does not only identify 

the nationality of the products which can avail of preferential tariffs extended to 

members of an FTA but also serves to prevent non-members of an FTA from taking 

advantage of different external tariff rates imposed by individual member states. 

The Commission’s expertise on the Harmonized System (the basic reference 

for tariff classification) is recognized by the ROO Technical Working Group (TWG); 

hence, the office sits as a permanent member of the TWG and actively participates 

in the drafting of Philippine positions on ROO. 

Notwithstanding its active participation in the Japan-Philippines Economic 

Partnership Agreement (JPEPA), the Commission is a regular member of each of 

the groups involved in negotiating the different Free Trade Agreements (FTAs) of 

which ASEAN is a party, i.e, ASEAN-Korea Free Trade Agreement (AKFTA), 

ASEAN-China Free Trade Agreement (ACFTA), ASEAN-India Free Trade 

Agreement (AIFTA), ASEAN-Australia/New Zealand Free Trade Agreement 

(AANZFTA), and ASEAN-Japan Free Trade Agreement (AJFTA). 

The Commission’s special skills involve the determination of product-specific 

rules based on the change in tariff classification criterion (CTC), besides the value 

added (VA) and the process rules. All the aforementioned FTAs use CTC rules 

(e.g., change in chapter [CC], change in tariff headings [CTH] or change in tariff 

subheading [CTSH]) in their respective ROO agreements. 

The JPEPA ROO which generally adopted coequal rules (CTC or VA) is 

expected to be finished soon. Under the ACFTA, there are already about 400 tariff 

lines provided with corresponding ROOs. Drafting and negotiations on the other 

ROOs, such as those under the AKFTA and AANZFTA are still ongoing and are 

expected to be concluded in 2006. 

MULTILATERAL TRADING ARRANGEMENT 

WTO/ Non-Agriculture Market Access (NAMA) Trade Negotiations 

In the 2001 Philippine tariff schedule, 4,832 tariff lines in the 1996 HS refer to 

non-agricultural products. Approximately 60% of NAMA tariff lines are bound, with 

final bound rates ranging from 0% to 50%. Unbound tariff lines number 1,929 with 

2001 MFN tariffs ranging from 0% to 30%. Current binding overhangs (referring to 

the difference between the applied 2001 MFN rates and the final bound rates) range 

from 0 to 50 percentage points. 

22


The ongoing NAMA negotiations are guided by the so-called July Framework 

paragraph 4 of which reads: 

We recognize that a formula approach is key to reducing tariffs, and 

reducing or eliminating tariff peaks, high tariffs, and tariff escalation. We 

agree that the Negotiating Group should continue its work on a nonlinear 

formula applied on a line-by-line basis which shall take fully into 

account the special needs and interests of developing and leastdeveloped 

country participants, including through less than full 

reciprocity in reduction commitments. 

During the meeting of the Technical Committee on WTO Matters (TCWM) on 

October 10, 2005, inputs were requested from concerned member agencies on the 

core questions raised by the Philippine Mission in Geneva. In its Policy Discussion 

Paper No. 2 (dated September 23, 2005), the Mission raised several questions in 

reference to three (3) negotiating areas: non-agricultural market access (NAMA), 

services, and trade facilitation. In response, the Commission submitted preliminary 

information relative to certain issues in the NAMA negotiations involving: (a) binding 

of unbound tariffs; (b) formula for tariff reductions; (c) sectoral initiatives; and (d) nontariff 

barriers to trade. 

Technical assistance was provided to the Office of Senator Mar Roxas 

through the submission of a briefing paper on major issues in the ongoing WTO 

negotiations on NAMA which issues were tackled in the WTO Ministerial Conference 

in Hongkong in December. Chairman Abon was a member of the Philippine 

Delegation. Incorporated in the Commission’s positions/recommendations were 

issues linked to the formula for tariff reductions, binding of unbound tariffs, sectoral 

initiatives, and special and differential treatment. 

The Commission assisted the BOI Secretariat during the conduct of the WTO- 

UNCTAD National Workshops on NAMA negotiations on August 8-11, 2005 at the 

Board of Investments Penthouse in Makati. 

Pursuant to the decision reached at the TCWM meeting on April 6, 2005, the 

Commission submitted preliminary simulations on the impact of the tariff reduction 

formulas proposed by the European Union, Norway, and the United States (including 

the impact of the so-called Girard formula) on the bound tariffs of Philippine nonagricultural 

products. 

For the Philippines’ 3 rd Trade Policy Review under the WTO, the Commission 

provided its comments on the relevant chapters of the draft WTO Secretariat report 

and the draft Philippine Government report as well as participated in the meetings to 

the WTO Secretariat’s visit. The Commission also provided responses to advance 

questions received by the Philippine delegation to Geneva for the Trade Policy 

Review held on July 5 and 7, 2005. 

23

_________________________________________________________________________ 

Finally, the Commission submitted its 2005 MFN tariff schedule for uploading 

to the WTO Integrated Data Base. 

REGIONAL TRADING ARRANGEMENTS 

Association of Southeast Asian Nations (ASEAN) 

ASEAN is currently negotiating Free Trade Areas (FTAs) with four (4) 

countries/country groupings, namely, Australia and New Zealand combined, India, 

Japan and Korea. 

The Commission proposed a ranking approach (approved by the Tariff and 

Related Matters Technical Committee) in order to determine sensitive products for 

the ASEAN-China FTA. 

ASEAN-Korea 

On the draft text of Article 9 (Safeguard Measures) under the ASEAN-Korea 

Trade in Goods Agreement for the ASEAN-Korea Free Trade Area (AKFTA), the 

Commission proposed the adoption of the ASEAN-China language on emergency 

measures. 

ASEAN –Australian/New Zealand 

The Tariff Commission submitted its views/comments on the possible 

elements for inclusion in the competition policy chapter of the proposed ASEAN- 

Australian/New Zealand FTA as suggested by New Zealand and discussed at the 3 rd 

AANZTNC. 

With regard to the 4 th Meeting of the AANZFTA Trade Negotiating Committee, 

the Commission provided a preliminary analysis of Philippine trade with Australia 

and New Zealand which aimed to help in the formulation of the Philippines’ 

negotiating stance on trade in goods. 

ASEAN-India 

The Commission provided the DTI-BITR with comments on the ASEAN 

Secretariat paper concerning a proposed modality for tariff reduction and elimination 

under the ASEAN-India Free Trade Area. 

24


Asia Pacific Economic Cooperation (APEC) 

• In connection with the Peer Review of the Individual Action Plan of the 

Philippines, the Commission provided comments on the draft Study Report as 

well as participated in the meetings during the Expert’s In-Economy Visit. 

Chairman Abon was a member of the Philippine Delegation to Korea where 

the Peer Review was held on March 1-2, 2005. 

• The Commission provided updates on the Individual Action Plan (IAP) 

Chapters on Tariffs and Competition Policy for the 2005 Philippine IAP. 

• The Commission submitted its 2005 MFN tariff schedule for uploading to the 

APEC Tariff Database. 

BILATERAL TRADING ARRANGEMENT 

Japan-Philippines Economic Partnership Agreement (JPEPA) 

In the May 2002 visit of President Gloria Macapagal-Arroyo to Japan, the 

President proposed to Prime Minister Junichiro Koizumi the setting up of a working 

group designed to study the possibility of forging an economic partnership 

agreement between the Philippines (GOP) and Japan (GOJ). 

From 2002-2003, working groups and Joint Committee meetings deliberated 

and worked on the proposed Economic Partnership Agreement (EPA). 

The Tariff Commission leads the Philippines’ Experts Group in the latter’s 

discussions with its Japanese counterpart on both the Chapter on Competition and 

the Article on Emergency Measures of the proposed JPEPA. The Commission, 

likewise, collaborates with and assists the Board of Investments in the negotiations 

on the Chapter on Trade in Goods (Elimination of Customs Duties) and on the 

Chapter on Rules of Origin. 

Since February 2004 formal negotiating sessions and working group meetings 

have been held alternately in Manila and Tokyo. Negotiations are now at their final 

stages of technical discussions. 

25

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Chapter on Competition 

GOP and GOJ concluded the negotiations on the Chapter. 

Chapter on Trade in Goods 

• Article on Emergency Measures 

Negotiations are ongoing. The Commission-led negotiating team has 

been steadfast on its position to uphold the spirit and intent of the 

domestic legislation (R.A. 8800) on safeguard measures. 

• Article on Elimination of Custom Duties 

The Commission conducted Section 402 consultations under the JPEPA: 

‣ Proposed offer list of the Philippines (Chapters 1-97 (except Chapter 87, 

heading 40.12, subheadings 4011.10, 4011.20, 4011.40, 4011.50, 

8407.31 to 8408.90, and 8409.91 to 8409.99); and 

‣ Proposed offer list on certain motor vehicles and parts, accessories and 

other parts and raw materials thereof. 

Commissioner Manzano (right), with Director Maralit, during the consultation 

on the proposed product coverage of the Japan-Philippines Economic 

Partnership Agreement (May 31, 2005). 

26


Trade Remedy Measures 

A. Republic Act 8752 (Anti-Dumping Act of 1999) 

The Anti-Dumping Act of 1999 provides domestic industries relief from serious 

injury caused by dumped imports. 

Petition for the Extension of the Imposition of Definitive Anti-Dumping Duties Against 

the Importation of Clear Float Glass from Indonesia 

On October 17, 2005, the Commission received the DTI’s referral for formal 

investigation of the request of Asahi Glass Philippines for the continued imposition of 

the definitive dumping duties against the importation of clear float glass from 

Indonesia due to expire on January 8, 2006. 

The petition alleged that the expiry/non-extension of the imposition of the 

definitive dumping duty would most certainly result in the continuation or recurrence 

of dumping and injury to the domestic industry. 

Upon receipt of the DTI referral, the Commission initiated the formal 

investigation involving the following activities: 

• Publication, in two (2) newspapers of general circulation, of Notice of 

Initiation of Formal Investigation and Preliminary Conference on 

November 8, 2005; 

• Notification and sending of questionnaires to Parties; 

• Conduct of ocular inspection of the industry’s plant facilities and 

verification of accounting records; 

• Conduct of Preliminary Conference on November 21, 2005; 

• Gathering of data/information on the impact of the imposition of the 

definitive dumping duty on economic and financial indicators ( e.g., 

production, sales, capacity utilization and profitability trends) involving the 

cleat float glass industry; and 

• Issuance of the Staff Report to the parties on which report they were given 

the opportunity to comment, particularly on the aspect of injury. 

• Public consultation is scheduled in January 2006. 

27

_________________________________________________________________________ 

B. Republic Act 8800 (Safeguard Measures Act of 2000) 

The rationale for the application of safeguard measure is to provide domestic 

industries relief from serious injury due to increased imports and to facilitate their 

adjustment to import competition. 

Petition for the Extension of the Imposition of Safeguard Measure Against the 

Importation of Gray Portland Cement 

In his decision dated June 25, 2003, the Secretary of the Department of Trade 

and Industry (DTI) imposed a definitive safeguard measure on imports of gray 

Portland cement amounting to P20.60 per 40 kg. bag for three (3) years, i.e., from 

December 10, 2001 to December 10, 2004. 

On November 30, 2004, the Commission received the DTI Secretary’s referral 

(for formal investigation) of the request of the Cement Manufacturers Association of 

the Philippines (CeMAP) for the extension of the imposition of the safeguard 

measure on imported gray Portland cement on the following grounds: 

1. the existing safeguard is still necessary to remedy and prevent serious 

injury; and 

2. the domestic industry is making positive adjustments to import 

competition. 

Upon receipt of the DTI referral, the Commission initiated the formal 

investigation as it undertook the following activities: 

• Issuance of the Staff Report on which the parties were given the 

opportunity to comment, particularly on the aspects of product 

comparability and volume of imports; 

• Conduct of marathon public consultations on February 16-19, 2005; 

• Conduct of ocular inspection of the industry’s plant facilities and 

verification of accounting records; 

• Gathering of data/information on the impact of the imposition of the 

safeguard duty on economic and financial indicators (e.g., production, 

sales, capacity utilization and profitability trends) involving the cement 

industry; and 

• Preparation of draft final report of findings for submission to the DTI 

Secretary. 

28


Chairman Abon (left) with Commissioner Manzano (right) during the public 

hearing under R.A. 8800 regarding CeMAP’s petition for the extension of the 

imposition of safeguard measure against the importation of gray Portland 

cement (February 16 -18, 2005). Below, parties attending the hearing. 

29

_________________________________________________________________________ 

On June 27, 2005, the Commission sought the guidance of the Supreme 

Court, through a Manifestation and Motion for the Issuance of a Clarificatory Order, 

as to the propriety of transmitting its Report of Findings to the DTI Secretary before 

the Court rules with finality on the cement case. The issue pending in Court is 

whether the DTI Secretary can overturn the findings of the Commission in a 

safeguards case, which the Court’s Second Division earlier ruled in the negative. 

On July 5, 2005, the Supreme Court issued a Resolution enjoining all parties 

from taking any further action relative to the aforementioned petition for extension 

during the pendency of the motion for reconsideration filed by CeMAP. 

On August 5, 2005, the Supreme Court en banc promulgated its Resolution, 

denying with finality the DTI’s and CEMAP’s Motions for Reconsideration of the 

Supreme Court Decision dated July 8, 2004 declaring that the imposition of the 

safeguard measure on cement was null and void. Said Resolution likewise enjoined 

the DTI Secretary from taking any further action on the Petition for Extension of the 

Safeguard Measure pending with the Tariff Commission. 

On September 1, 2005, the OSG filed a Motion for leave to file and admit 

Second Motion for Reconsideration, but the same was again denied by the 

Supreme Court in a Resolution dated September 13, 2005. On October 5, 2005, the 

Supreme Court’s decision of July 8, 2004 became final and executory upon its 

recording in the Book of Entries of Judgments. 

Monitoring of the Adjustment Plan of the Domestic Flat Glass Industry 

Rule 16.1 of the Implementing Rules and Regulations of R.A. 8800 states 

that, so long as any action taken under Rule 13 remains in effect, the Commission 

shall monitor developments with respect to the domestic industry, including the 

progress and specific efforts made by workers and firms in the domestic industry to 

make a positive adjustment to import competition. 

In accordance with the requirements of the Safeguards Law, the Commission 

undertook the following activities: 

• Conducted public hearing on August 9, 2005 where all interested 

parties were given the chance to express their views and present 

evidence with respect to Asahi Glass Philippines’ compliance with its 

adjustment plan against import competition. 

30


• Conducted ocular inspection of Asahi Glass’ plant facilities, verified 

accounting records, and interviewed company officers regarding their 

commitment to adopt and facilitate positive adjustment to import 

competition. 

• Performed various computations, analyzed and interpreted the different 

financial and economic indicators related to sales, production, 

utilization, employment trends, etc. in order to determine the effect not 

only of the imposition of the definitive safeguard duty on the operations 

of the domestic industry but also the impact of the efficiency measures 

which the industry committed to adopt in order to facilitate positive 

adjustment to import competition. 

On December 8, 2005, the Commission submitted its Monitoring Report to the 

Secretary of Trade and Industry. 

Section 1313-a - Tariff Commodity Classification 

Articles imported into the Philippines are classified in the ASEAN Harmonized 

Tariff Nomenclature (AHTN) Tariff and Customs Code of the Philippines (TCCP). 

When a commodity imported or intended to be imported is not specifically provided 

for in the Code, any interested party may file with the Commission a request for a 

commodity classification ruling pursuant to this Section. 

In order to ascertain the proper tariff classification of any subject article, the 

applicant is required to submit sample/s of the product (if available), technical 

brochures/catalogues indicating its specifications, material or chemical composition 

and other relevant information. When and if all the requirements are met, a Tariff 

Commodity Classification (TCC) Ruling is issued within ten (10) working days from 

date of filing with the Commission. The Section explicitly provides that the rulings of 

the Commission are binding with the Bureau of Customs, unless overruled by the 

Secretary of Finance. 

For the year 2005, the Commission issued about 300 tariff commodity 

classification rulings (Annex “A”). 

Considered a major activity of the Commission under this Section is the 

review of the AHTN. Together with the other nine (9) ASEAN member countries, the 

Philippines (represented by the Commission) is heavily involved in the drafting of the 

revised AHTN patterned after the 2007 Harmonized System and incorporating 

ASEAN tariff lines. The new AHTN is expected to be completed before the end of 

year 2006, in time for its implementation by January 01, 2007. 

31

_________________________________________________________________________ 

For the guidance of users of the TCCP – AHTN based on the Harmonized 

Commodity Coding System (HS), the Commission has prepared the Alphabetical 

Index to the TCCP-AHTN. This publication is available to the public at cost. 

32


Section 506 – Assistance to the President and 

Congress of the Philippines 

House/Senate 

Bills/Resolutions 

Comments/Recommendation/Inputs 

of the Commission 

HB No. 1863 – “An Act Increasing the 

Penalties Against Unlawful Importation 

and Other Violations to the Tariff and 

Customs Code of the Philippines, As 

Amended.” 

• Statutory Offenses of Officials 

and Employees 

The Commission strongly endorsed the 

increase of the penalty of fine and 

imprisonment, on an erring official, 

agent or employee of the Bureau of 

Customs or of any other agency of the 

government charged with the 

enforcement of the provisions of this 

Code (i.e., from a fine of a minimum of 

Five Thousand Pesos (P5,000.00) – 

maximum of Fifty Thousand Pesos 

(P50,000.00) to a minimum of One 

Hundred Thousand Pesos 

(P100,000.00) – maximum of Five 

Hundred Thousand Pesos 

(P500,000.00); and imprisonment from 

a minimum of one year – maximum of 

ten years to a minimum of ten years – 

maximum of fifteen years. 

HB No. 102 – “An Act Rationalizing the 

Forfeiture and Disposition of Property 

Seized by the Bureau of Customs, 

Amending for the Purpose Certain 

Sections of the Tariff and Customs Code 

of the Philippines, As Amended.” 

• Line 5, Section 5, amending 

Section 2612 (Disposition of 

Smuggled Articles) of the Tariff 

and Customs Code of the 

Philippines 

“Section 102” referred to on line 5 

should be “Section 101.” (Section 102 

of the Tariff and Customs Code speaks 

of abbreviations whereas Section 101 

enumerates the articles whose 

importations are prohibited.) 

33

_________________________________________________________________________ 

House/Senate 


Comments/Recommendation/Inputs of 

the Commission 

HB No. 1845 – “An Act Amending 

Section 1801 of the Tariff and Customs 

Code of the Philippines.” 

• Due notice of arrival of imported 

articles 

As the period for filing of entry by the 

importer or consignee is to be reckoned 

from the date of notice of the arrival of 

imported articles, the inability of the 

Bureau to notify the importer or 

consignee thereof has resulted in the 

congestion of our piers and ports with 

containers of imported shipments. 

Imported articles, if already considered 

abandoned, could have long been 

forfeited in favor of the government and 

disposed of accordingly thereby 

generating government revenue in billions 

of pesos. 

The Commission supported the proposed 

amendment of paragraph (b) of Section 

1801 which reads: 

“All shipping lines, shipping companies, 

freight forwarders, consolidators, break 

bulk agents and their agents and subagents 

and arrastre contractors are 

required to state in bold, prominent and 

comprehensible characters the words 

CUSTOMS LAW REQUIRES FILING OF 

ENTRY WITHIN THIRTY (30) DAYS 

FROM DATE OF DISCHARGE OF LAST 

PACKAGE FROM THE VESSEL 

OTHERWISE CARGO IS DEEMED 

FORFEITED IN FAVOR OF THE 

GOVERNMENT AND SHALL BE 

DISPOSED OF IN ACCORDANCE WITH 

LAW 

34


House/Senate 




in each and every Notice of Arrival to the 

owners, importers, consignees or other 

interested parties. The same shall serve 

as the due notice referred to in Paragraph 

(b) hereof, in which case, the owner, 

importer or consignee of the importation 

shall have a period of thirty (30) days, 

which shall not be extendible, from 

receipt of the Notice of Arrival within 

which to file the appropriate entry.” 

HB No. 1978 – “An Act Prohibiting the Sale 

Through Public Auction of All Kinds of 

Confiscated Smuggled Goods and 

Products and Providing Penalties for 

Violation Thereof.” 

HB No. 2815 – “An Act Providing for the 

Disposition of Smuggled Agricultural 

Goods, Amending for this Purpose Certain 

Provisions of the Tariff and Customs Code, 

as Amended.” 

Considering the government’s huge 

budget deficit, the Commission suggested 

that the revenue consideration should be 

looked into. 

Considering the government’s huge 

budget deficit, the Commission pointed 

out that revenue factor might be a primary 

consideration for the passage of this bill. 

On Line 1, the Commission agreed to the 

proposed amended Section 2610 

(Property Subject to Sale): 

- the Schedules I and II referred to 

as covering the agricultural 

products subject to forfeiture are 

not indicated in the bill. 

HB No. 3715 – “An Act Amending Certain 

Provisions of Presidential Decree No. 1464, 

Otherwise Known as the Tariff and 

Customs Code of the Philippines, As 

Amended, and for Other Purposes.” 

The Commission appreciated the primacy 

given to the tariff classification ruling 

issued by the Commission as indicated in 

the proposed new Section 2503-A in Part 

4, Title VI, Book II of the Tariff and 

Customs Code of the Philippines. 

35

_________________________________________________________________________ 

House/Senate 


Senate Resolution No. 68 – “A Resolution 

Directing the Committees on Trade and 

Commerce and Economic Affairs to 

Conduct a Joint Investigation in Aid of 

Legislation, on the Problem of Unabated 

Smuggling of Goods into the Country to the 

Detriment of Local Producers, 

Manufacturers, Retailers and Consumers 

and the Philippine Economy in General, 

with the Goal of Recommending Measures 

to End the Problem of Smuggling in the 

Country” 

Senate Bill No. 1969 – “An Act Amending 

Certain Provisions of Presidential Decree 

No. 1464, Otherwise Known as the Tariff 

and Customs Code of the Philippines, as 

Amended, and for other Purposes” 



The Commission wholly supported the 

adoption of Senator Roxas’ Resolution 

No. 68. In light of the pernicious effects 

on the national economy of unabated and 

large scale smuggling, the resolution to 

find ways and means of effectively 

combating smuggling is timely and 

urgent. 

For as long as the methods of valuation 

prescribed by the WTO Agreement on 

Valuation and provided for under Section 

201 of the Tariff and Customs Code 

(TCCP) are followed, the Commission 

supported the proposed amendment of 

Section 201 of the TCCP that reads: 

“REFERENCE INFORMATION OBTAINED 

FROM REVISION ORDERS SHALL BE 

USED TO TEST THE TRUTHFULNESS AND 

ACCURACY OF A GIVEN VALUE 

DECLARATION. A VALUE DECLARATION 

WHICH FALLS OUTSIDE OF THE VALUE 

RANGE OF REVISION ORDERS SHALL 

TRIGGER A VALUATION QUERY ON THE 

APPLICABILITY OF THE METHOD OF 

VALUATION USED BY THE IMPORTER, IN 

WHICH CASE THE VALUATION/ISSUE 

SHALL BE DECIDED ON THE 

APPROPRIATE METHOD OF VALUATION 

PRESCRIBED UNDER SECTION 201 OF 

THIS ACT.” 

The Commission favored the 

establishment of a Valuation and 

Classification Review Committee (VCRC) 

by provision of law. The existing VCRC 

was created via a Customs Memorandum 

Order (CMO). 

36


House/Senate 




• The Commission interposed no 

objection to the proposed amendment 

of Section 2503 of the TCCP that 

reads: “Provided, That an 

undervaluation, MISCLASSIFICATION 

AND/OR misdeclaration of more than 

thirty percent (30%) between the value, 

weight, measurement, or quantity 

declared in the entry, and the actual 

value, weight quantity, or measurement 

shall constitute a prima facie evidence 

of fraud penalized under Section 2530 

AND 3602 of this Code.” 

The Commission proposed that the 

second provision reads as follows: 

“Provided, further, That any 

misdeclared or undeclared OR 

MISCLASSIFIED imported articles/ 

items found upon examination shall 

ipso facto be forfeited in favor of the 

Government to be disposed of 

pursuant to the provisions of this Code. 

“The Implementing Rules and 

Regulations should clearly define the 

term “MISCLASSIFICATION.” Does 

the term mean the deliberate or 

intentional entry of a wrong tariff 

classification in the import declaration 

by the importer? It is therefore 

suggested that under the proposed 

amendment of Section 2503 of the 

TCCP, a provision be incorporated that 

will direct the importer to indicate in the 

import declaration/entry the full and 

accurate description of the imported 

goods for the proper assessment by 

customs authorities. 

37

_________________________________________________________________________ 

House/Senate 




• The Commission supported the 

proposed insertion of a new section to 

be known as Section 2503-A of the 

TCCP that reads as follows: “NON- 

IMPOSITION OF SURCHARGE – 

EXEMPTION FROM THE 

SURCHARGE SHALL BE ALLOWED 

ONLY IN CASES WHEN THE 

DECLARED OR ENTERED 

CLASSIFICATION IS BASED ON 

RULINGS BY THE TARIFF 

COMMISSION PURSUANT TO 

SECTION 1313-A OF THIS CODE: 

PROVIDED, THAT THE 

DESCRIPTION OF THE ARTICLE IS 

FOUND CORRECT UPON 

EXAMINATION AND PROVIDED 

FURTHER, THAT BASED ON THE 

RESULT OF THE EXAMINATION, 

THE ARTICLE IS FOUND 

ESSENTIALLY THE SAME AS THAT 

DESCRIBED IN THE RULING.” 

Director Cruz briefs Senator Juan Ponce Enrile on the best practices of Australia, USA, 

and Japan on competition policy/law. 

38


House/Senate 


House Bill 116 - “An Act Creating the 

Philippine Competition Commission, 

Regulating and Penalizing Trade Practices 

that Lessen Competition and Other Anti- 

Competitive Practices and Conduct, Unlawful 

Mergers, Acquisitions and Combinations in 

Restraint of Trade, Unfair Competition, and 

Appropriating Funds Therefor, and for Other 

Purposes.” (Introduced by Rep. Joey 

Salceda) 

House Bill 130 - “An Act Establishing the 

Rules for a Competitively Neutral 

Government and for Other Purposes.” 

(Introduced by Rep. Joey Salceda) 

House Bill 1874 – “An Act Prescribing a 

Fair Competition Law, its Enforcement, the 

Establishment of a Fair Trade Commission, 

Delineating its Powers and Functions, and 

for Other Purposes.” (Introduced by Hon. 

Jose de Venecia, Jr.) 

House Bill 3139 - “An Act Prohibiting 

Monopolies, Attempt to Monopolize an 

Industry or Line of Commerce, Manipulation 

of Prices of Commodities, Asset Acquisition 

and Interlocking Memberships in the Board 

of Directors of Competing Corporate Bodies 

and Price Discrimination among Customers, 

Providing Penalties Therefor, and for Other 

Purposes.” (Introduced by Cong. Juan Ponce 

Enrile, Jr.) 

House Bill 2958 - “An Act Prohibiting 






and Price Discrimination among Customers, 

Providing Penalties Therefor, and for Other 

Purposes.” (Introduced by Reps. Edgar 

Valdez, Ernesto Pablo and Sunny Madamba) 

) 

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Comments/Recommendation/Inputs of the 

Commission 

The bills of Representative Joey Salceda 

and Speaker Jose de Venecia are the more 

comprehensive ones which the Commission 

advocated, i.e., a workable and 

comprehensive competition policy/law. With 

respect to H.B. 130 (Competitive Neutrality) 

of Rep. Joey Salceda, the Commission 

proposed that said bill be consolidated into 

his H.B. 116. 

The creation of a Philippine Competition 

Commission as proposed under the bills of 

Rep. Salceda and Speaker De Venecia was 

strongly endorsed. The Commission 

envisions an independent competition body 

with a secured budget. 

Nowhere in the House Bills are there 

provisions for access to critical infrastructure 

and legislative review that would make for a 

more comprehensive competition law. 

39

_________________________________________________________________________ 

House/Senate 




Senate Bill 210 – “An Act Creating the Fair 

Trade Commission, Prescribing its Powers 

and Functions in Regulating Trade 

Competition and Monopolies and for other 

Purposes” (Introduced by Senator Osmena 

III) 

Senate Bill 272 – “An Act to Strengthen the 

Prohibition Against Monopolies and Cartels 

of Basic Necessities or Prime Commodities, 

Amending for the Purpose Republic Act 

Numbered Seventy-Eight Hundred and Fifty 

One, otherwise Known as the Price Act” 

(Introduced by Senator Osmena III) 

Senate Bill 511 – “An Act Providing for a 

More Effective Implementation of the 

Constitutional Mandate Against Monopolies, 

Combinations in Restraint of Trade and 

Unfair Competition by Redefining and 

Strengthening Existing Laws, Processes and 

Structures Regulating the Same and for 

Other Purposes” (Introduced by Senator 

Villar) 

Senate Bill 512 – “An Act Increasing the 

Penalty for Illegal Acts of Price Manipulation 

Committed by a Cartel, Amending for this 

Purpose Republic Act No. 7581, otherwise 

known as the Price Act, and for other 

Purposes” (Introduced by Senator Villar) 

Senate Bill 1199 – “An Act Prohibiting 






and Price Discrimination Among Customers, 

Providing Penalties Therefore, and for other 

Purposes” (Introduced by Senator Enrile) 

) 

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The Commission identified and examined the 

best practices/approaches of different 

countries in the formulation of a legal 

framework for a competition policy and the 

implementation thereof. The Commission 

submitted the following information for 

consideration in the refinement of the 

pending anti-trust bills: 

1. Practices (Approaches) of Countries 

with Competition Laws vis-à-vis the 

Model Law on Competition of the 

United Nations Conference on Trade 

and Development (UNCTAD); 

2. American Federal Antitrust Laws visà-vis 

the UNCTAD Model Law on 

Competition; and 

3. SB 210 (Sen. Osmena); SB 511 (Sen 

Villar) and SB 1199 (Sen. Enrile) visà-vis 

the UNCTAD Model Law on 

Competition. 

The Commission endorsed for consideration 

the recommendations of a study undertaken 

for the Tariff Commission by the Institute for 

Research into International Competitiveness 

(IRIC) and the Curtin Business School, 

Curtin University. 

40


House/Senate 




House Bill 2456 – “An Act to Recapture 

the Power Over Tariffs Amending for the 

Purpose Section 401 of the Tariff and 

Customs Code, as Amended” (Introduced 

by Congressman Exequiel B. Javier) 

The Commission submitted that the rationale 

behind the delegation of said inherent power of 

Congress to the Executive branch is for reasons 

of necessity, practicality and expediency in order 

to vest on the President the authority to act 

expeditiously on tariff matters for sustainable 

national economic development. Inaction or 

delay may cause serious consequences on the 

generation of revenues, development/ 

improvement of competitiveness of domestic 

industries, enhancement of consumer welfare, 

promotion of foreign trade, and the drive against 

smuggling. 

Thus, certain limitations and restrictions 

imposed by Congress as a condition for the 

delegation should not serve to tie down the 

hands of the Executive Branch thus curtailing its 

power to act promptly on matters affecting the 

national economy. 

The Commission submitted its positions on the 

following proposed amendments to Section 401 

of the Tariff and Customs Code of the 

Philippines (TCCP): 

1. Existing paragraph a of Section 401 of the 

TCCP: 

“In the interest of national economy, general 

welfare and/or national security, xxx pursuant to 

this section, PROVIDED FURTHER THAT THE 

POWER HEREIN DELEGATED SHALL NOT 

INCLUDE THE AUTHORITY TO TRANSFER 

ARTICLES FROM DUTY FREE LIST TO THE 

DUTIABLE LIST OR VICE VERSA OF THE 

TARIFF; PROVIDED FINALLY THAT ANY 

CHANGE IN THE RATES OF IMPORT DUTY 

OR IN THE CLASSIFICATION OF DUTIABLE 

ARTICLES SHALL BE IN FORCE AND EFFECT 

FOR A PERIOD OF ONE (1) YEAR FROM THE 

DATE OF THE EXECUTIVE ISSUANCE.” 

41

_________________________________________________________________________ 

House/Senate 




The Commission submitted that the rationale for 

the lifting of the said restriction was to remove a 

meaningless provision since the very process of 

tariff modification under Section 401 involves 

upward/downward adjustment of import rates of 

duty following a thorough deliberation by the 

Tariff and Related Matters (TRM) Committee 

and not a transfer of products from one list to 

another. 

As to the amendment seeking to limit for a 

period of one (1) year the effectivity of an 

Executive Order on a change in tariff rates or in 

the classification of articles, the Commission felt 

that this will weaken the negotiating leverage of 

the Philippine government in trade negotiations 

under international and regional trading 

arrangements. A one-year tariff regime, it may 

be added, is not stable and predictable and 

therefore will not serve business in good stead 

in their long-term planning. 

2. Proposed paragraph g: 

“THE POWER HEREIN 

DELEGATED TO THE PRESIDENT 

SHALL BE EXERCISED ONLY WHEN 

CONGRESS IS IN COMPULSORY 

RECESS AFTER IT ADJOURNS SINE 

DIE.” 

It was submitted that the legislative process is 

too cumbersome to effect prompt response to 

fast-changing developments in the global and 

domestic economic environments. With the 

Chief Executive exercising only limited discretion 

on tariff matters, the country might not be able to 

react immediately to changes in the world 

market and may consequently miss 

opportunities and not be able to remedy injuries 

resulting to economic hardships for our people. 

42


Information was provided to the Office of Senator Enrile regarding the 

application of safeguard measures under R.A. 8800 (Safeguard Measures Act of 

2000) on cement, ceramic tiles and glass products (figured, float and mirror). 

Advocacy Program 

Information dissemination activities play an equally important role in the 

Commission’s work. To fulfill this mandate, the Commission pursues a continuing 

advocacy program through the conduct of lecture(s) to stakeholders in order to 

increase public awareness and enlighten them on current issues on tariff and trade 

related matters affecting the domestic and international trading fronts. The 

Commission’s information campaign covered the following activities, among others: 

• Lecture on New Developments in Trade and Tariff Policy for 

Central Luzon College of Science and Technology 

Tariff Commission 


• Business Consultations on Trade Negotiations 

Pryce Plaza, Cagayan de Oro City 

August 24-25, 2005 

• Business Consultations on Trade Negotiations 

Waterfront Hotel, Cebu City 


• Lecture on the Harmonized System (HS)/ASEAN Harmonized Tariff 

Nomenclature (AHTN) 

Lyceum of Batangas City 


• Regional Industry Consultation on the World Trade Organization (WTO) 

Non-Agricultural Market Access (NAMA) 

Marco Polo Hotel, Davao City 

October 28, 2005 

• Briefing on the Tariff Commission: Organization, Functions and the 

Latest Developments in Trade and Tariff Policy for students of John B. 

Lacson College 

Tariff Commission 


43

_________________________________________________________________________ 

• Workshop Regarding Updates on the World Trade Organization (WTO) 

Non-Agricultural Market Access (NAMA) 

Dusit Hotel, Makati 


TC staff from the Commodities Studies Division lectures on the 

Harmonized System/tariff classification to students from Central Luzon 

College of Science and Technology during the briefing on latest 

developments on trade and tariff policy (March 3, 2005). 

44


Other Activities 

A. Competition Policy 

• The Commission’s version of the competition bill (title shown below) was 

submitted to the Office of Senator Mar Roxas for his sponsorship: 

An Act Regulating and Penalizing Trade Practices that Lessen 

Competition and Other Anti-Competitive Practices and Conduct, 

Unlawful Mergers, Acquisitions and Combinations in Restraint of 

Trade, and Creating the Philippine Fair Trade Commission and 

Appropriating Funds Therefor, and for Other Purposes. 

• The Commission actively participated in the Training Course on 

Cartels and Horizontal Restraints (hosted by the ASEAN Secretariat 

and Vietnam Competition Administration) on May 16-19, 2005 in 

Hanoi, Vietnam. The training was handled by experts from the 

Antitrust Division of the US Department of Justice and the US Federal 

Trade Commission. It aimed at providing participants with substantial 

knowledge and skills to deal with violations in the form of anticompetitive 

agreements. 

• The Commission represented the Philippines in the Training Course 

on Competition Law and Policy sponsored by the government of 

Japan through the Japan International Cooperation Agency (JICA) 

held in Osaka and Tokyo, Japan on August 22 to September 22, 

2005. It was hoped that participants to the course would (1) gain an 

understanding of Japan’s competition policy and law so as to bring 

about a strengthening of competition law (contributing to guideline 

enactment and revision work on extant legislation, etc.), promotion of 

draft work, and enhanced technical capacities for case investigations 

in the participant’s country; (2) Bring out an overall administrative 

strengthening of the participant’s agency via transfer of knowledge 

gained through the training to colleagues; (3) realize the importance 

of competition policy and acquire and acquire knowledge for the 

purpose of competition advocacy in the participant’s country; and (4) 

reaffirm points of issues concerning competition law and policy in the 

participant’s country by deepening insight into the competition laws 

and policies of Japan and other countries. 

• As lead agency/negotiator on the Chapter in Competition under the 

Japan-Philippines Economic Partnership Agreement (JPEPA), the 

Commission’s legal experts conducted legal scrubbing of the 

Japanese modification proposals on the aforementioned Competition 

area of the Agreement. 

45

_________________________________________________________________________ 

• On the FPI Symposium on the Proposed Anti-Trust Measure 

(S.B. 1199) of Senator Enrile, the Commission made a presentation 

on September 1, 2005 regarding the highlights of the APEC Training 

on Competition Policy for APEC Economies in the Philippines on 

August 2-4, 2005. 

1 st APEC Training Course on Competition Policy for APEC Member Economies 

(Manila, Philippines) 

The Tariff Commission collaborated with Japan’s Fair Trade Commission in 

the conduct of the “1 st APEC Training Program on Competition Policy for APEC 

Member Economies” held at the Mandarin Oriental Manila on August 2-4, 2005. 

The “APEC Training Programs on Competition Policy” was supported by the 

Trade and Investment Liberalization Fund (TILF), the APEC Secretariat and the 

Government of Japan through the active cooperation of the Japan Fair Trade 

Commission. 

Earlier, the training programs were conducted through a series of five (5) 

training programs which were held from 2002, 2003 and 2004. For the year 2004 

alone, three (3) seminars were held: first in Kuala Lumpur, Malaysia; second in Ho 

Chi MInh, Vietnam and third in Yogyakarta, Indonesia. 

In due time, the support and demand for the continuation of the program 

among member-economies continually grew so that a new training course was 

proposed and approved by APEC/CTI. This new training course also consists of a 

series of workshops within five (5) years from 2005 to 2009 in collaboration with 

Japan and interested economies. The first seminar was conducted in Manila with the 

Tariff Commission as Project overseer. 

The main purpose of the training course is to build up the capacity of each 

competition and competition related authority through the exchange of information 

and the sharing of experiences among member economies. 

The course was participated in by member economies from Indonesia, 

Thailand, Vietnam, Philippines, Australia, Hong Kong, People’s Republic of China, 

Mexico, Peru, Chinese Taipei, and Russia. Local participants came from NEDA, 

DTI, SEC, BOI, DOJ, Philippine Ports Authority, Bangko Sentral ng Pilipinas, 

Intellectual Property Office, National Telecommunications Commission, WCI 

Consultancy and the Federation of Philippine Industries. 

The training course was conducted in the form of plenary sessions key noted 

by Professor Allan Fels, former Chairman of the Australian Competition and 

Consumer Commission (ACCC) and Professor Toshiaki Takigawa, Kansai University 

School of Law and break out sessions (small group meetings) moderated by 

competition experts Mr. Hassan Qaqaya from UNCTAD and Mr. Walter Thacher 

Winslow from OECD. 

46


Small group discussions (top) Group I “Abuse of Dominant Position”. Moderator 

Mr. Terry Winslow, Consultant, Competition 

Division, OECD. 

(below) Group II “Organization and Function of 

Competition Agencies” . Moderator Mr. Hassan 

Qaqaya, Chief, Advisory Services and Capacity 

Building Section, Competition Law and Consumer 

Policy Branch, UNCTAD. 

47

_________________________________________________________________________ 

Above: 

Chairman Abon with Mr. Joseph Francia (Secretary-General of Federation 

of Philippine Industries) during the 1 st APEC Training Program on 

Competition Policy for APEC Member Economies. 

Below: Professor Allan Fels (left), keynote speaker of the Program, shares ideas 

with Chairman Abon and Commissioner Manzano on the establishment of 

Philippine competition law and policy. 

48


B. Research Project 

The Commission and the John Curtin Institute of Public Policy of the Curtin 

University of Technology, Western Australia, jointly undertook a research project 

titled “Improving Trade Policy in the Philippines: An Assessment of the Economywide 

Impact of the Tariff Reform Program and the Implementation of the WTO 

Safeguard Measures” under the auspices of the Australian Agency for International 

Development (AusAID). 

On July 28, 2005, the Curtin research team of Dr. Helen Cabalu and Mr. Paul 

Koshy arrived in Manila to meet with TC officials and staff, and local consultant, 

Professor U-Primo Rodriguez of the University of the Philippines (Los Banos) to 

discuss the work schedule for the joint research project. At that same meeting, the 

Record of Understanding between the TC and the JCIPP was signed by Chairman 

Edgardo B. Abon of the Tariff Commission and Dr. Helen Cabalu of the JCIPP. 

Signing of the memorandum of understanding between the TC and the JCIPP, Curtin 

University, Western Australia, on its joint research project titled “An Assessment of 

the Economy –Wide Impact of the Tariff Reform Program and the Implementation of 

the WTO Safeguard Measures”. Chairman Edgardo B. Abon (seated left) 

represented the TC and Dr. Helen Cabalu (seated right) represented the JCIPP. 

Standing (left to right): Prof. U-Primo Rodriguez (local adviser), Paul Koshy 

(Curtin research consultant), Commissioner George Manzano, Amelia Domingo 

(Chief, Planning Division) and Edward S.A. Besana (OIC, Management Information 

Systems Division). 

49

_________________________________________________________________________ 

The research project commenced with the introduction of a Computable 

General Equilibrium (CGE) modeling training course which would measure the 

impact of the tariff reforms and the implementation of safeguard measures on the 

economy by (1) quantifying the welfare effects of the trade scenarios involving 

various economic indicators (i.e., GDP, employment, prices, revenue, sectoral output 

and balance of trade), and (2) undertaking an examination and measurement of the 

welfare effects and social implications of trade scenarios on regional output and 

employment. TC officials and technical staff involved in the project are participants 

to the training sessions held this year on the following dates: September 23 and 

30; and October 7 (pre-training sessions); October 13 and 14; and October 17-19 

(hands-on training course); and November 11 and December 5 (post-training 

sessions). In order to maximize the benefits derived from the joint project proposal, 

the Commission invited participants from other government agencies to the training 

sessions on the theory and application of CGE modeling believing that their 

participation will greatly contribute towards the Government’s initiative in determining 

policy approaches that will contribute to a better business environment. 

Signing of the turnover of the new computers to the TC by the JCIPP, Curtin University of 

Technology, represented by Chairman Edgardo B. Abon and Dr. Helen Cabalu. TC staff 

Edward Besana and Research consultant Paul Koshy affixing their signatures as witnesses. 

50


C. Assistance to Stakeholders 

The Commission, being a technical body on tariff and trade-related matters, 

accedes to requests for information/inputs from various stakeholders, including other 

government departments and agencies with whom it shares common policy 

concerns. During the period under review, data/information were provided to the 

following, as requested: 

Government Agencies 

• Department of Trade and Industry - Bureau of International Trade 

Relations 

- Proper tariff classification of certain leather and footwear products 

in connection with the JPEPA Negotiations; 

- Comments on the draft study report regarding the 2005 Philippine 

Individual Action Plan Peer Review at APEC; 

- Comments on Chapters I. II, III, and IV of the Draft Secretariat 

Report regarding the 2005 Trade Policy Review of the Philippines 

under the WTO; 

- Tariff classification of the “Environmental Goods” submitted by the 

Department of Environment and Natural Resources for inclusion in 

the common ASEAN list for discussion at the Committee on Trade 

and Environment on the issue of liberalizing market access for 

environmental goods; 

- Updates on the Individual Action Plan (IAP) Chapters on Tariffs 

(Chapter 1) and Competition Policy (Chapter 8) for the 2005 

Philippine IAP; 

- Updates to the reporting template on the Philippines’ annual 

progress in implementing the Leaders’ Pathfinder Statement to 

implement APEC Policies on Trade and the Digital Economy; 

- Views/comments on the possible elements for inclusion in the 

competition policy chapter of the proposed ASEAN-Australia/New 

Zealand (AANZ) FTA as suggested by New Zealand and discussed 

at the 3 rd AANZ Trade Negotiating Committee; 

- 2003 and 2004 import data to assist the Sub-COTT in its 

deliberations in the proposed modality for tariff reduction and 

elimination under the ASEAN-Korea FTA; 

- Comments on the latest draft text of Article 9 (Safeguard Measures) 

under the ASEAN-Korea Trade in Goods Agreement for the 

ASEAN-Korea FTA; 

51

_________________________________________________________________________ 

- Comments regarding the formulation the the Philippine negotiating 

strategy for the ASEAN-Korea FTA; 

- Comments on the draft Government Report for the Philippines’ 3 rd 

Trade Policy Review under the WTO; 

- Inputs on several issues raised at the 2 nd ASEAN Australia and 

New Zealand Trade Negotiating Committee; 

- Updates on the comprehensive tariff policy review relative to the 

RP-US Trade and Investment Council video conference; and 

- Status/latest developments on the matters taken up during the 4 th 

JWG in relation to the application of trade remedy measures 

against exports from Indonesia. 

• Bureau of Customs 

- Technical advice/opinion pertaining to tariff commodity 

classifications on cases filed in the Valuation and Classification 

Review Committee (VCRC); and 

- Clarification regarding certain tariff lines covering motor vehicles. 

• Board of Investments 

- Philippine trade with Korea on certain rubber products and the 

overall ratings thereof under the Commission’s proposed ranking 

approach to help determine sensitive products for the various 

ASEAN FTAs; and 

- Applied and bound database of Korea, Australia and New Zealand. 

52


• Department of Finance 

- Possible exclusions from the proposed 3% across-the-board tariff 

increase arising from Philippine commitments under the World 

Trade Organization (WTO), ASEAN Free Trade Area- Common 

Effective Preferential Tariff (AFTA-CEPT) Scheme, and the 

ASEAN-China Free Trade Area (ACFTA); and 

- Comments (1) to lift the safeguard tariff imposed by the Philippine 

government on imported cement from East ASEAN Growth Area 

(EAGA) member-countries, and (b) regarding tariff exemption for 

construction materials imported for specific Brunei-Indonesia- 

Malaysia-Philippines (BIMP-EAGA) housing projects in southern 

Philippines. 

• Department of Foreign Affairs 

- List of Philippine exports from 2001 to 2003 

• Department of Environment and Natural Resources 

- Identification of AHTN codes of certain products under the Japan- 

Philippines Economic Partnership Agreement for the “Revised 

Priority Chemical List” 

• Bangko Sentral ng Pilipinas 

- Comments on issues raised by the automotive parts industry during 

the Exporters’ forum on the alleged tariff distortions between the 

raw materials and finished products in the petrochemical, steel and 

glass industries 

• National Economic and Development Authority 

- 2004 and 2005 revenue estimates; and 

- Comments on the list of information technology (IT) products 

endorsed by APEC for tariff elimination at the WTO. 

53

_________________________________________________________________________ 

• Philippine Institute for Development Studies 

- Data on safeguard petitions and cases 

• Philippine Mission in Brussels 

- Comments on the issues involving preparations for the 36 th session 

of the Harmonized System Committee (September 19-30, 2005) 

• Philippine Mission in Geneva 

- Major Philippine imports of locally produced finished products from 

the 25 member countries of the European Union (EU 25) for the 

period 2001-October 2004; 

- Updates on the latest EO on Information Technology Agreement 

products; 

- Updated 2001 Philippine MFN tariff schedule; and 

- Tariff trends on motorcycles. 

Foreign Government/Organization 

• Embassy of Brazil 

- Changes in the rates of duty on ceramic tiles (HS Hdg. No. 

6908.00 00) beyond 2005 

• United Nations 

- Tariff rate quotas applied by the Philippines 

• PITC Brussels 

- Comments on the Agenda and Working Documents for the 

32nd session of the Harmonized System Committee – Review 

Sub-Committee (RSC 32) of the World Customs Organization 

54


Academe 

• U.P. School of Economics 

- Effective protection rates (EPRs) of selected industry sectors 

• University of Asia and the Pacific 

- Information on taxes, tariffs and non-tariff barriers involving the 

regulatory environment of the condiment industry 

• Technological University of Singapore 

- Information on import/export of second hand used IT products 

55

_________________________________________________________________________ 

DIRECTORY OF TARIFF COMMISSION 

OFFICIALS and STAFF 

Office Address: 

5th Floor Philippine Heart Center Building (PHC), East Avenue, Diliman, 

Quezon City 

Day and Year of Foundation: 

June 20, 1953 

Agency Trunkline Number/s, Fax and e-mail Addresses: 

Webpage: 

PHC Trunkline - 925-2401 to 50 locals 3501-3509 

Fax No. - 921-7960 

E-mail address - tarcm@pworld.net.ph 

tarcm@mydestiny.net 

http://www.tariffcommission.gov.ph 

Mother Agency: 

National Economic and Development Authority (NEDA) 

Functions (Mandate under the Tariff and Customs Code, Trade 

Remedy Laws and Executive Order No. 143): 

Sec. 301. Anti-Dumping Duty 

Sec. 302. Countervailing Duty 

RA 8800. Safeguard Measure Act 

Sec. 401. Modification of Duty (Flexible Tariff Clause) 

Sec. 402. Promotion of Foreign Trade 

Sec. 505. Investigation of Tariff and Custom Laws 

Sec. 506. Assistance to the President and Congress 

 

 

Sec. 1313-a. Commodity Classification Rulings 

Research and Advocacy Programs 

56


OFFICE OF THE CHAIRMAN AND 

MEMBER COMMISSIONERS (OCC) 

TEL. NOS. 4335899 / 9217960 / 9252401 local 3501 

4334252 / 9288106 / 9252401 local 3504 

EDGARDO B. ABON 

CHAIRMAN 

GEORGE N. MANZANO 

COMMISSIONER

_________________________________________________________________________ 

OCC Staff 

60


Technical Support Services Department (TSSD) 

Tel. Nos. 4335896 / 4335898 / 9252401 loc. 3502

_________________________________________________________________________ 

RESEARCH AND INVESTIGATION DEPARTMENT (RID) 

Tel. Nos. 9288419 / 9268731 / 9252401 locals 3503 3508 3510 

62


FINANCE AND ADMINISTRATIVE DEPARTMENT (FAD) 

Tel. Nos. 9291964/ 4339553 / 9252401 loc. 3506

_________________________________________________________________________ 

TCC RULINGS ISSUED IN 2005 

ANNEX “A” 

TCC No. Article HS Hdg. No. 

MFN Rate of 

Duty 

04-254 EMERGENCY RESCUE VEHICLE 8705.90 90 3 % 

04-278 PLASMA DISPLAY PANEL 8471.60 21 0 % 

04-305 PURESSENCE 8421.39 12 1 % 

04-311 GRINDSTED PS 201 OR GRINSTED PS 3824.90 90 3 % 

201-M 

05-001 LPG CONVERSION KIT FOR CAR-REAR 8481.80 22 5 % 

COMPARTMENT 

05-002 LPG CYLINDER TANK FOR AUTOMOTIVE 7311.00 92 10% 

USE 

05-003 GRINDSTED SSL P70 VEG C 

05-004 GRINDSTED PS 101 3824.90 90 3 % 

05-005 GRINDSTED PGMS 90 3824.90 90 3 % 

05-006 GRINDSTED S7S30 C 

05-007 GRINDSTED SMS VEG M C 

05-008 GRINDSTED MONO DIMO 40M 3824.90 90 3 % 

05-009 PANODAN 150 3824.90 90 3 % 

05-010 GRINDSTED PGE 20 VEG 3824.90 90 3 % 

05-011 RECODAN RPV 690 3824.90 90 3 % 

05-012 GRINDSTED STSL C 

05-013 SOYABEAN MEAL 2304.00 00 3 % 

05-014 RECODAN CM VEG 3824.90 90 3 % 

05-015 GRINDSTED JU 543-M 3824.90 90 3 % 

05-016 GRINDSTED LACTEM 22 3824.90 90 3 % 

05-017 PANODAN 160 3824.90 90 3 % 

05-018 GRINDSTED LBG 246 1302.32 00 3 % 

05-019 ALUMINUM FOIL 7607.19 00 3 % 

05-020 EONTEC LIGHT 9405.40 90 7 % 

05-021 KAWU PROTECT ECTOPARASITE 3307.90 90 5 % 

SHAMPOO 

05-022 KAWU MINK OIL SHAMPOO 3307.90 90 7 % 

05-023 ALUMINIUM OXIDE 2818.10 00 3 % 

05-024 GROUNDWWOOD FREE FOIL MOUNTING 4805.91 90 7 % 

PAPER FOR CIGARETTE WRAPPER 

(PALARA) 

05-025 KAWU JOJOBA SHAMPOO 3307.90 90 7 % 

05-026 PRISM MAINTENANCE 2309.10 10 5 % 

05-027 SAL-ECO 2309.90 20 1 % 

05-028 FLAVECO 40 2309.90 20 1 % 

05-029 VALOSIN FG 50 2309.90 20 1 % 

05-030 BITELLI SF 102 R DEEP CUT COLD 8430.50 00 1 % 

PLANER 

05-031 HD-ILA PROJECTION TELEVISION 8528.12 90 15% 

05-032 POLYISOCYANURATE INSULATION 

PANEL 

3921.19 19 15% 

64



MFN Rate of 

Duty 

05-033 MODEL: CXZ81KLD, ISUZU DUMP TRUCK 8704.10 21 3 % 

05-034 PIPE FITTINGS FOR HYDRAULIC 7307.99 10 1 % 

APPLICATION 

05-035 POLE PLATFORM PLATPOLE-KIT 7326.90 90 15% 

05-036 GRINDSTED CARRAGEENAN CL 350 H 1302.39 10 7 % 

05-037 GRINDSTED CARRAGEENAN CL 220 1302.39 10 7 % 

05-038 RECODAN RS VEG 3824.90 20 3 % 

05-039 CREMODAN SE 46 3824.90 20 3 % 

05-040 GRINDSTED ALGINATE FD 155 3913.10 00 3 % 

05-041 PUSH CART 8716.80 90 5 % 

05-042 SYNTHETIC LUBRICANT C 

05-043 TRICLOSAN 5000 2909.50 00 1 % 

05-044 GRINDSTED PECTION AMD 783 1302.20 00 3 % 

05-045 GRINDSTED PECTIN LA 410 1302.20 00 3 % 

05-046 GRINDSTED PECTIN RS 400 1302.20 00 3 % 

05-047 GRINDBOX TBHQ 2907.22 00 3 % 

05-048 CREMODAN SE 734 VEG 3824.90 20 3 % 

05-049 ALUMINUM STUCCO EMBOSSED 1100 7606.11 90 3 % 

GAUGE 0.60 

05-050 ALUMINUM TREAD PLATE 5 BAR GAUGE 7606.12 90 3 % 

1.50 

05-051 SUPRAVITAMINOL WS POWDER C 

05-052 MYCOTOX POWDER 2309.90 20 1 % 

05-053 MYCOTOX (FEED ADDITIVE/TOXIN 

C 

BINDER) POWDER 

05-054 PLASMA DISPLAY PANEL 8471.60 21 0% 

05-055 QUEST FLAVOURING MATERIAL B 3302.10 10 1 % 

104001 

05-056 QUEST FLAVOURING MATERIAL 16940 3302.10 10 1 % 

05-057 QUEST FLAVOURING MATERIAL 16126 3302.10 10 1 % 

05-058 TIG WIRE OR TIG ROD 7228.20 10 3 % 

05-059 SODIUM HEPARIN (BOVINE) 3004.90 10 0 % 

05-060 ALUMINUM ALLOY PREFORMED WIRE 7604.29 30 3 % 

05-061 DOWLEX 2098P (ETHYLENE-OCTENE 3901.90 90 3 % 

COPOLYMER) 

05-062 MULTI-MEDIA STORAGE VIEWER, P-2000 8471.70 20 0 % 

05-063 COMPACT DISC-RECORDABLE (CD-R), 8523.90 90 0 % 

700 MB 

05-064 CARBOXYMETHYL CELLULOSE CMC 3912.31 00 3 % 

05-065 SOYBEAN MEAL 2304.00 00 3 % 

05-066 THREE-WHEELED AGRICULTURAL 8704.10 22 3 % 

DUMPER 

05-067 TASTELESS WOOD SMOKE Classification in 

letter form 

05-068 THERMOCOUPLE TIPS 9030.90 90 1 % 

05-069 JOWAT 950.20 3909.10 90 5 % 

05-070 SILICONE TEETHER 3926.90 39 3 % 

C 

– Cancelled. Applicant did not submit the required additional information.

_________________________________________________________________________ 


MFN Rate of 

Duty 

05-071 SILICONE NIPPLE 3926.90 39 3 % 

05-072 SILICONE PACIFIER 3926.90 39 3 % 

05-073 SUBMARINE POWER CABLE WITH FIBER 8544.60 11 15% 

OPTIC 

05-074 ZINC SULPHATE HEPTAHYDRATE 2833.26 00 1 % 

05-075 JOWAT CROSSLINKING AGENT 195.40 2929.10 00 1 % 

05-076 JOWAPUR 150.50/51/53 PU DISPERSION 3909.50 00 3 % 

05-077 JOWACOLL 102.7 ( IN LIQUID FORM) 3905.19 10 3 % 

05-078 JOWATHERM 282.20/23 3901.30 20 3 % 

05-079 JOWATHERM 288.60 3901.30 20 3 % 

05-080 PURAC POWDER 60 (LACTIC ACID 3824.90 90 3 % 

POWDER) 

05-081 MANE FLAVOR 41348 3302.10 10 1 % 

05-082 FLAVOR 050304 C 

05-083 FLAVOR 129017 C 

05-084 MANE FLAVOR 13275 3302.10 10 1 % 

05-085 FLAVOR 12016 C 

05-086 MANE BASE (FLAVOR) 16171 3302.10 10 1 % 

05-087 FLAVOR 84334 C 

05-088 A 3M ELECTRICAL TAPE 1276 4811.41 00 5 % 

05-089 MIRACLE FILTER POWDER 2839.90 00 1 % 

05-090 EXECENATE-M (ISOCYANATE) C 

05-091 TECOFOIL G60 BALANCING FOIL 4811.59 00 1 % 

05-092 TECOLINE EDGEBANDING 4811.59 00 1 % 

05-093 DIVAL 150 3816.00 00 1 % 

05-094 DIVAL 70 3816.00 00 1 % 

05-095 CARD PRINTER RIBBON 9612.10 90 1 % 

05-096 IRON (III)-HYDROXIDE DEXTRAN 3004.90 10 0 % 

COMPLEX COSMOFER 50 MG IRON/ML 

05-097 ALUMINUM FOIL 7607.19 00 3 % 

05-098 LINCRYL 810 (STYRENE ACRLYLIC 3903.90 40 3 % 

COPOLYMER) 

05-099 A50DP1002 TROPONIN SLIDE KIT 3822.00 90 1 % 

05-100 SANITISER, DISPENSER, MODELS: 8424.89 50 5 % 

OS6ODS OR OS600P 

05-101 HAND DRYERS MODEL: HK- 

8516.33 00 3 % 

1800EA/EA(F)CA 

05-102 AEROSOL DISPENSER- MODELS: AD-260 8479.89 30 1 % 

M, AD 330 

05-103 HEALTH GUARDS AEROSOL ODOUR 3307.49 10 7 % 

REFILLS 

05-104 DIVAL 160 3816.00 00 1 % 

05-105 DILOC 170 3816.00 00 1 % 

05-106 LACTIC ACID (PURAC FCC 88) 2918.11 00 1 % 

05-107 SHUNT REACTOR, OIL FILLED 90 MVA 

50KV 

C 

C 

– Cancelled. Applicant did not submit the required additional information. 

66


C 


05-108 PURAC FCC 88 LACTIC ACID, FOOD 

GRADE 

MFN Rate of 

Duty 

2918.11 00 1 % 

05-109 STAINLESS STEEL RIM 9028.90 90 3 % 

05-110 METER CRATE 3923.10 90 15% 

05-111 MAXENS CHERRY FLAVOR RM 148 3302.90 00 1 % 

05-112 FLAVOR GR12348 MARROW FLAVOR 2106.90 82 1 % 

05-113 ROAST FLAVOR PORK RFP 723 2106.90 82 1 % 

05-114 ROAST BEEF FLAVOR GR 12345 2106.90 82 1 % 

05-115 BEEF ROAST FLAVOR RF-B-K 2106.90 82 1 % 

05-116 BEEF BASE FLAVOR GR 12347 2106.90 82 1 % 

05-117 MEATY FLAVOR GR 12346 2106.90 82 1 % 

05-118 BOILED BEEF FLAVOR GR12344 2106.90 82 1 % 

05-119 BE TALLOW FLAVOR BR 12349 2106.90 82 1 % 

05-120 DIVAL 180 3816.00 00 5 % 

05-121 DILOC - SIC 85 3816.00 00 5 % 

05-122 DINSUL 125/1.25 3816.00 00 5 % 

05-123 DILOC 160 3816.00 00 5 % 

05-124 DILOC - 160 SIC 30 3816.00 00 5 % 

05-125 JOWAT 900.00 (SEPARATING AGENTS) 3403.99 90 1 % 

05-126 BUDAL 951 3824.90 20 3 % 

05-127 ABASTOL 305 3824.90 20 3 % 

05-128 CARNAL 346 3824.90 00 3 % 

05-129 VALOSIN FG50 FEED PREMIX C 

05-130 WHEATEX 751 (TEXTURED WHEAT 2106.10 00 3 % 

PROTEIN) 

05-131 DINSUL 135/1.35 3816.00 00 5 % 

05-132 EXCEED 1023CA 3901.90 90 3 % 

05-133 FLINT COLOR WINK EDT SPRAY EMPTY 7010.90 90 7 % 

GLASS BOTTLE 

05-134 SAMSUNG YEPP (YH-J55)/MINI JUKEBOX 8523.90 20 0 % 

WITH NEW UI 

05-135 SAMSUNG YEPP (YP-T7F)/TFT-LCD 8523.90 20 0 % 

COLOR UP 

05-136 SAMSUNG YEPP (YM-P1)/PORTABLE 8523.90 20 0 % 

MULTIMEDIA PLAYER 

05-137 SAMSUNG YEPP (YH-820)/MICRO 8523.90 20 0 % 

JUKEBOX AND PHOTO ALBUM 

05-138 SAMSUNG YEPP (YP-T8) 8523.90 20 0 % 

05-139 SAMSUNG YEPP (YH-9250)/DIGITAL 8523.90 20 0 % 

PHOTO ALBUM JUKEBOX 

05-140 SAMSUNG YEPP (YP-S1)/JOGGER 8523.90 20 0 % 

05-141 SAMSUNG YEPP (YP-155, YP-F1, YP-F2, 8523.90 20 0% 

YP-NWR, YP-T4, YP-MT6, YP-T6) 

05-142 SAMSUNG YEPP (YP-T7) COLOR UP, 8523.90 20 0 % 

MULTI PLAYER 

05-143 SAMSUNG YEPP (YP-W3L) 8523.90 20 0 % 

05-144 SAMSUNG YEPP (YH-J50)/MINI JUKEBOX 8523.90 20 0 % 

– Cancelled. Applicant did not submit the required additional information.

_________________________________________________________________________ 


05-145 SAMSUNG YEPP (YH-J70)/MOVIE PLAY 

JUKEBOX 

05-146 SAMSUNG YEPP (YH-J40)/MICRO 

JUKEBOX 

MFN Rate of 

Duty 

8523.90 20 0 % 

8523.90 20 0 % 

05-147 SAMSUNG YEPP (YP-U1, YP-C1) 8523.90 20 0 % 

05-148 SAMSUNG YEPP (YP-D1) C 

05-149 MODIFIED STARCH - PHOSPHATED 3505.10 90 3 % 

STARCH (CTF - 7631) 

05-150 MODIFIED STARCH-ACETYLATED 3505.10 90 3 % 

DISTARCH ADIPATE (CBA-8858) 

05-151 MODIFIED STARCH-ACETYLATED 3505.10 90 3 % 

DISTARCH PHOSPATE (CBS-8830) 

05-152 MODIFIED STARCH - ACETYLATED 3505.10 90 3 % 

DISTARCH PHOSPHATE (CBL - 8835) 

05-153 MODIFIED STARCH - PHOSPHATED 3505.10 90 3 % 

STARCH (CTF-7631) 

05-154 MODIFIED STARCH - OXIDIZED STARCH 3405.10 90 3 % 

(ETX-1073) 

05-155 DETERGENT POWDER BASE 3402.90 92 5 % 

05-156 7 NO. 6 AWG ALUMINUM-CLAD STEEL 7312.10 90 15% 

WIRE (OHGW) 

05-157 ALUMINUM POWER CONDUCTOR 7614.10 12 10% 

(ACSR) 795 MCM 

05-158 3/8 DIAMETER ORDINARY GRADER 7312.10 90 15% 

CLASS C TOWER FOOTING GROUND 

WIRE 

05-159 JOWAT - TOP TH ERM 256.00 

3902.90 90 3 % 

(POLYOLEFIN HOT MELT ADHESIVE) 

05-160 BARCROFT 0600 AHMC (ALUMINIUM 3003.90 90 3 % 

HYDROXIDE MAGNESIUM CARBONATE) 

05-161 ZIBOXAN F80-XANTHAN GUM FOOD 3913.90 00 3 % 

GRADE 

05-162 CLAYPOT RICE PATTY W/D 

05-163 WHITE RICE PATTY W/D 

05-164 FIRE SPRINKLER HEAD 8424.89 90 5 % 

05-165 CABLE SEPARATOR 8546.90 00 1 % 

05-166 STAINLESS TIG WIRE OR STAINLESS 

3 % 

TIG ROD 

05-167 RED CELL 2309.90 20 1 % 

05-168 ALUMINUM ZIRCONIUM 

2842.90 90 1 % 

TETRACHLOROHYDREX (SUMMIT AAZG- 

507) 

05-169 ANHYDROUS MILK 0405.90 10 1 % 

05-170 JOWAPUR 687.22 1-COMPONENT PUR 3909.50 00 3 % 

PREPOLYMER (LIQUID FORM) 

05-171 JOWACOLL 138.24 (POLYVINYL 

ACETATE) 

3905.19 10 3 % 

C – Cancelled. Applicant did not submit the required additional information. 

68



05-172 MA.-707 PORTABLE 70 WATTS 

WIRELESS PUBLIC ADDRESS (PA) 

SYSTEM 

05-173 MA-101 PERSONAL PORTABLE 20 

WATTS, WIRELESS PUBLIC ADDRESS 

(PA) SYSTEM WITH MICROPHONE 

MFN Rate of 

Duty 

8518.50 90 7 % 

8518.50 90 7 % 

05-174 SILICONE GEL FILLED BREAST IMPLANT 3926.90 39 3 % 

05-175 BUSARIN INSTANT RICE 1904.90 10 7 % 

05-176 DEQUEST 2010 2931.00 90 1 % 

05-177 HPP ROAST BEEF 7820 SPECTRE RFB 2106.90 82 1% 

(SNACK FLAVOR #00182) 

05-178 PROBASE CLASSIC BODY GIVER 2106.90 82 1 % 

(SNACK FLAVOR 30581) 

05-179 FIRE HOSE (DOUBLE JACKETED) 5909.00 10 1 % 

05-180 ULTRA HIGH PRESSURE EXTINGUISHER 8413.50 12 1 % 

05-181 FROZEN CHICKEN SKIN 0207.12 00 40% 

05-182 GEROPON SBFA - 30/WX 3402.11 90 5 % 

05-183 DC ® 2-8 177 EMULSION C 

05-184 PLUREASE 31R1 C 

05-185 POLYOX (MM) USR 308 C 

05-186 ISOPAR FLUID C 

05-187 PC ® 2B10BB EMULSION C 

05-188 INFLATABLE RUBBER BOAT WITH 8906.90 90 1 % 

STANDARD ACCESSORIES 

05-189 MINUTEMAN 290 VACUUM SERIES 8479.89 30 1 % 

05-190 DUCTILE CAST IRON PIPES 7303.00 19 10% 

05-191 NOLLIBEL Z 151 0404.10 19 1 % 

05-192 PERFORMALENE ® 400 POLYETHYLENE C 

05-193 COMPUTER SOFTWARE CD-ROM 8524.39 10 0 % 

05-194 ALUMINUM PLAIN SHEET-MILL FINISH 7606.11 10 3 % 

05-195 POWERFLOW WR C 

05-196 SOLVENT PIGMENT INK (BLACK) 3215.11 90 7 % 

05-197 FLAVORING 0113-A 3302.10 90 1 % 

05-198 SOLVENT PIGMENT INK (COLOURED) 3215.19 00 3 % 

05-199 ANLENE GOLD HI-CALCIUM LOW FAT 0401.10 00 3 % 

UHT MILK 

05-200 SOCK NET 6003.30 00 10% 

05-201 KYOWA HAND OPERATED HIGH 9031.80 99 1 % 

PRESSURE HYDROSTATIC TEST PUMP 

05-202 EMPTY PINK SUEDE COLOGNE SPRAY 9616.10 10 7 % 

(CKD) 

05-203 LASER CARD (OPTICAL MEMORY CARD) 8523.90 20 0 % 

05-204 LAKOS SEPARATOR 8421.19 90 1 % 

05-205 4780 SCOTCHLITE PRECLEAR 

REFLECTIVE LICENSE PLATE SHEETING 

3919.90 90 15% 

C – Cancelled. Applicant did not submit the required additional information.

_________________________________________________________________________ 


05-206 VP5500 SCOTCHLITE FACE ADHESIVE 

VERIFICATION SHEETING WITH ENSURE 

IMAGE 

05-207 SCOTCHLITE REFLECTIVE SHEETING 

ENGINEER GRADE 

05-208 610/710 SCOTCHLITE UTILITY GRADE 

REFLECTIVE SHEETING 

05-209 4770 SCOTCHLITE PRECLEAR 

REFLECTIVE LICENSE PLATE SHEETING 

05-210 SCOTCHLITE HIGH INTENSITY GRADE 


05-211 3930 HIGH INTENSITY GRADE 

PRISMATIC REFLECTIVE SHEETING 

05-212 SCOTCHLITE DIAMOND GRADE VIP 


MFN Rate of 

Duty 

3919.90 90 5 % 

3919.90 90 15% 

3919.90 90 15% 

3919.90 90 15% 

3919.90 19 15% 

3919.90 90 15% 

3919.90 90 15% 

05-213 ENVIRONMENT-FRIENDLY SAFE FUELS C 

05-214 EXTREMA TELLER OPERATED 8470.90 90 0 % 

TERMINAL 

05-215 SAEPLAST INSULATED CONTAINER 3923.10 90 15% 

WITH LID 

05-216 SEBICS CONTROL TRANSFORMER 9032.89 39 1 % 

05-217 AJITIDE IMP (NUCLEIC ACID) 2934.99 10 1 % 

05-218 CANATAL INTELLIGENT PRECISION 

C 

AIRCONDITIONING 

05-219 INTERNATIONAL 9000 SERIES TRUCK 8701.20 31 3 % 

TRACTOR CABOVER SERIES 

05-220 AJIMATE M-SUPER P (BLENDED 2106.90 82 1 % 

SEASONING) 

05-221 AJI-AROMA M-RCK 100 (BLENDED 2106.90 82 1 % 

SEASONING) 

05-222 MONODICALCIUM PHOSPHATE (FEED 

C 

GRADE) 

05-223 AK225, AK225 AES, AR 2255 C 

05-224 REFRACTORY CEMENT 3816.00 00 1 % 

05-225 SURPASS FPS117-F 3901.90 90 3 % 

05-226 SURPASS HPS900-C 3901.90 90 3 % 

05-227 SURPASS FPS117-C 3901.90 90 3 % 

05-228 SURPASS FPS 117-D 3901.90 90 3 % 

05-229 SURPASS FPS317-A 3901.90 90 3 % 

05-230 COMPOUND 038 3904.22 30 15% 

05-231 ELECTROLYTIC TINPLATES 7210.12 00 0 % 

05-232 BIO-CHEM URINE ATTACK 3402.20 13 10% 

05-233 RYE DRIED LEVEN (LEVAIN) 1901.20 10 10% 

05-234 DURALIFE DHA 2106.90 95 1 % 

05-235 WOODEN INTERCEPTOR 4408.90 90 7 % 

05-236 ABOVE GROUND STATION 3926.90 99 15% 

05-237 IN- NCRETE SLAB PLUG 4016.99 99 5 % 

05-238 IN--GROUND STATIONS 3926.90 99 15% 

05-239 FLAVOR 1227 3302.10 10 1 % 


70



MFN Rate of 

Duty 

05-240 FLUORESAVE ENERGY SAVING DEVICE, 8543.89 90 1 % 

MODELS 12AH/L, 20AH/L AND 32AH/L 

05-241 REGULATOR 8481.10 21 1 % 

05-242 VARISOFT 300 3824.90 90 3 % 

05-243 VARISOFT TA 100 3824.90 90 3 % 

05-244 VARISOFT 432 CG 3824.90 90 3 % 

05-245 BACTERICIDE MAT (STERYLAB) 3808.20 90 3 % 

05-246 SILICONE NIPPLE 3926.90 39 3 % 

05-247 JOWATHERM 250.00 (CAP HOTMELT 

C 

ADHESIVE) 

05-248 CHILLER AH 001 C 

05-249 CHILLER 003 C 

05-250 FREEZER AS060 8418.40 20 10% 

05-251 FREEZER AS062 8418.50 29 5 % 

05-252 FREEZER AND CHILLER EK180 C 

05-253 FREEZER EK184 8418.40 10 10% 

05-254 PORTABLE DIGITAL VIDEO/AUDIO 8523.90 20 0 % 

PLAYER 

05-255 TINPLATE 7210.12 00 0 % 

05-256 TINPLATE 7210.12 00 0 % 

05-257 WOODEEN EQUESTRIAN FENCE 9506.90 90 1 % 

05-258 CHARANTIA AMPALAYA HEALTH DRINK 1211.90 13 3 % 

(LOOSE BITS, 30G & 70G) 

05-259 CHARANTIA 500MG AMPALAYA 2106.90 89 7 % 

CAPSULES 

05-260 CHARANTIA AMPALAYA FOOD 1211.90 13 3 % 

SUPPLEMENT (TEA BAGS) 

05-261 TINPLATE 7210.12 00 0 % 

05-262 TINPLATE 7210.12 00 0 % 

05-263 TINPLATE 7210.12 00 0 % 

05-264 TINPLATE 7210.12 00 0 % 

05-265 TINPLATE 7210.12 00 0 % 

05-266 BREAST PADS 4819.90 00 15% 

05-267 SEA SCOOTER 9506.29 00 1 % 

05-268 EXCEED 1327CA 3901.90 90 3 % 

05-269 BAKERS MEAL C 

05-270 LOUDA ELECTRONIC COUNTER (LEC) 8471.90 90 0 % 

05-271 NON-MOTORIZED (BATTERY- 

C 

OPERATED) SCOOTERS AND PARTS 

05-272 HYDRAULIC BALING PRESS MACHINE C 

05-273 COCONUT FIBER SEPARATING 8479.89 30 1 % 

MACHINE OR COCONUT FIBER 

DECORTICATING MACHINE 

05-274 NESTLE CARNATION CONDENSADA 1901.90 31 7 % 

SWEETENED CREAMER 

05-275 NESTLE LIBERTY CONDENSADA 1901.90 31 7 % 

SWEETENED CREAMER 

C – Cancelled. Applicant did not submit the required additional information.

_________________________________________________________________________ 


MFN Rate of 

Duty 

05-276 CUTISIN SAUSAGE CASING (MINIRALEN) 3917.32 10 3 % 

05-277 PANASONIC PLASMA DISPLAY PANELS: 8471.60 21 0 % 

TH-42PWD8GS, TH -42PWD8GK, TH- 

42PHD8GS AND TH- 42PHD8GK MODELS 

05-278 FAMILIA DRIP IRRIGATION SYSTEM FOR 8424.81 10 1 % 

100-HECTARE 

05-279 HYDROGENERATED PALM STEARIN 1516.20 72 3 % 

05-280 METAL CAP 8309.90 90 10% 

05-281 STEEL POLES TYPE B CLASS 1 (55 FT); 7308.90 90 10% 

CLASS 2 (50 FT, 55 FT, 60 FT, 

05-282 STEEL POLES TYPE D CLASS 1 (50 FT. & 7308.90 90 10% 

55 FT); CLASS 2 (50 FT, 60 FT. & 65 FT 

05-283 STEEL POLES TYPE A CLASS 2 ( 50 FT, 7308.90 90 10% 

55 FT, 60 FT, & 65 FT ) ; & CLASS 3 (50 

FT. & 60 FT)' 

05-284 TCL MULTI PLAYER 3 (MP3) 8523.90 20 0 % 

05-285 HAEMOGLOBIN POWDER 3002.10 90 3 % 

05-286 ACCEL 2309.90 20 1 % 

05-287 MASTER'S HOOF BLEND 2309.90 20 1 % 

05-288 SUPER 14 2309.90 20 1 % 

05-289 VITA FLEX E AND SENIUM 2309.90 20 1 % 

05-290 PERFORMALENE 400 POLYETHYLENE 3404.90 00 1 % 

05-291 COATED GALVANIZED STEEL SHEET IN 7210.70 60 10% 

COIL 

05-292 ISOMOL 185 3824.90 90 3 % 

05-293 ZUKO INSTANT FRUIT DRINK 2106.90 52 10% 

05-294 STRIP COTE 7019 P 

05-295 EXPLOSIVE ORDINANCE DISPOSAL 6211.43 90 15% 

(EOD) BOMB SUIT/HELMET/PERSONAL 

PROTECTIVE EQUIPMENT 

05-296 LACTASOY UHT SOYMILK LIGHT 2202.90 20 3 % 

05-297 LACTASOY ® SOYMILK PLUS GREEN 2202.90 20 3% 

TEA 

05-298 LACTASOY UHT CHOCOLATE 2202.90 20 3 % 

FLAVOURED SOYMILK 

05-299 LACTASOY UHT SWEETENED SOYMILK 2202.90 20 3 % 

05-300 PARA KITO 3808.10 99 3 % 

05-301 PUREBRED BREEDING GOATS (BOER, 

P 

RED BOER, SAANEN, ANGLO-NUBLAN 

AND BOER CROSS) 

05-302 WATERBASED GP BLACK P 


P – Processing 

72


ANNEX “B” 

ATTENDANCE TO INTERNATIONAL TRADE 

MEETINGS 

Date Subject Venue 

December 12-19, 2005 

November 15-21, 2005 

September 26 – October 01, 

2005 

6 th Session of the WTO 

Ministerial Conference 

4 th Meeting of the AHTN 

Review Committee 

37 th ASEAN Economic 

Ministers Meeting (37 th 

AEM) 

Hongkong, 

China 

Bangkok, 

Thailand 

Vientiane, Lao 

PDR 

August 16-20, 2005 ASEAN Consultative 

Forum for Competition; 

Conference on How to 

Make a Competition Law 

and Policy Play a Greater 

Role in ASEAN Economies 

July 24-31, 2005 11 th Meeting of ASEAN- 

China Free Trade Area 

(AFTA) 

Trade 

Negotiating Group; 

13 th Meeting of the 

ASEAN Task Force on 

Common Effective 

Preferential Treatment 

ASEAN Free Trade Area 

(CEPT-AFTA) Rules of 

Origin; 

Special Meeting of the 

ASEAN-India Free Trade 

Area (AIFTA) Trade 

Negotiating Group- 

Working Group of 

Origin (TNG-WGROO) 

Bangkok, 

Thailand 

Kuala Lumpur, 

Malaysia

_________________________________________________________________________ 

ATTENDANCE TO INTERNATIONAL TRADE 

MEETINGS 

ANNEX “B” 


July 05 and 07, 2005 

3 rd Meeting of the Trade 

Policy Review Body 

Geneva, 

Switzerland 

June 22-23, 2005 19 th Meeting of the 

China-ASEAN Trade 

Negotiating Committee; 

21 st Meeting of the 

ASEAN Trade 

Negotiating Group 

Beijing, People’s 

Republic of 

China 

June 05-10, 2005 

Session 424, The World 

Trade Negotiations: The 

Politics of Economics and 

Trade 

Salzburg, Austria 

May 22-29, 2005 2 nd Meeting of the 

ASEAN Harmonized 

Tariff Nomenclature 

(AHTN) Review 

Committee; 2 nd Meeting 

of the AHTN Technical 

Committee 

February 21-March 05, 2005 1 st APEC Senior 

Officials’ Meeting 

(SOM 1) 

Yangon, 

Myanmar 

Seoul, Republic 

of Korea 

January 25-28, 2005 

1 st ASEAN Harmonized 

Tariff Nomenclature 

(AHTN) Technical 

Committee Meeting 

Kuala Lumpur, 

Malaysia 

74

ANNEX “C” 

FOREIGN TRAININGS/SEMINARS ATTENDED 


October 01, 2005 

August 2005/ August 2006 


August 22, 2005 to 


July 19, 2005 to 

August 01, 2005 

May 16-19, 2005 

April 18, 2005 to 

July 08, 2005 

November 29, 2004 to 


January 12, 2005 to 

February 11, 2005 

GTC: Customs 

Administration II 

ASEAN-EU Programme 

for Regional International 

Support (APRIS) 

APEC Regional Workshop 

on Anti-Dumping and 

Safeguards 

Training Course on 

Competition Law and 

Policy 

Internet Application 

Analysis, Design and 

Development 

Training Course on 

Cartels and Horizontal 

Restraints 

2nd Regional Trade Policy 

Course 

Hardware and 

Networking Specialist 

Program 

ASEAN Regional Focused 

Training Course on HS 

Classification 

Japan 

Jakarta, Indonesia 

Bangkok, 

Thailand 

Japan 

Singapore 

Hanoi, Vietnam 

Hongkong, China 

New Delhi, India 

Japan

_________________________________________________________________________ 

ANNEX “D” 

LOCAL TRAININGS/SEMINARS ATTENDED 




Video Conference on the 

Dialogue on Latin 

American Use of 

Safeguards and Anti- 

Dumping 

43rd Annual Conference 

of the Philippine 

Economic Society 

Asian Institute of 

Management/ World 

Bank Development 

Resource Center, Manila, 

Philippines 

Asian Institute of 

Management (AIM) 

Conference Center, Paseo 

de Roxas, Makati City 


September 23 & 30, 2005 

October 07, 13-14 & 17-19, 

2005 November 11, 2005 


July 30-31, 2005 

June 02-03, 2005 

February 07-10, 2006 

1 st APEC Training 

Program on Competition 

Policy for APEC Member 

Economies 

Training of CGE 

Modeling: 2nd Phase 

Second Meeting of the 

ASEAN Consultative 

Committee on Standards 

and Quality (ACCSQ) on 

Rubber-Based Working 

Group 

Philippine Forestry 

Development Forum, 

“Sustainable Forest 

Management: a Holistic 

Path to National 

Development” 

Looking Forward: 

Lessons in Competition 

Policy for the 21 st Century 

Manila, Philippines 

TC Conference Room 

Dusit Hotel Nikko, 

Makati City 

Asian Development Bank, 

Mandaluyong City 

Taal Vista, Tagaytay City 

76

tc annual 2005 - Philippine Tariff Commission

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