AN ACT CHANGING THE BASIS OF DUTIABLE VALUE OF IMPORTED ARTICLES SUBJECT TO AN AD VALOREM RATE OF DUTY FROM THE HOME CONSUMPTION VALUE (HCV) TO TRANSACTION VALUE (TV), AMENDING FOR THE PURPOSE SECTION 201 OF TITLE II, PART 1 OF PRESIDENTIAL DECREE NO. 1464, OTHERWISE KNOWN AS THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES, AS AMENDED, AND FOR OTHER PURPOSES

Tenth Congress

Republic Act No. 8181             March 28, 1996

AN ACT CHANGING THE BASIS OF DUTIABLE VALUE OF IMPORTED ARTICLES SUBJECT TO AN AD VALOREM RATE OF DUTY FROM THE HOME CONSUMPTION VALUE (HCV) TO TRANSACTION VALUE (TV), AMENDING FOR THE PURPOSE SECTION 201 OF TITLE II, PART 1 OF PRESIDENTIAL DECREE NO. 1464, OTHERWISE KNOWN AS THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES, AS AMENDED, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Section 201 of Title II, Part 1 of the Tariff and Customs Code of the Philippines, as amended, is hereby further, amended to read as follows:

Section 2. Transitory Provisions. - Upon the effectivity of this Act and until such time when the Congress authorizes the shift to transaction value before January 1, 2000 as provided under Section 3 of this Act, the dutiable value of an imported article subject to an ad valorem rate of duty shall be based on the export value at which at the time of exportation, the same or identical, like, or similar article is freely offered for sale in the principal export markets of the exporting country for exportation to the Philippines, in the usual wholesale quantities and in the ordinary course of trade (excluding internal excise taxes to be remitted or rebated) or where there is none on such date, then on the export value nearest to the date of exportation, including the value of all containers, coverings and/or packings of any kind and all other expenses, costs and charges incident to placing the article in a condition ready for shipment to the Philippines, and freight, as well as insurance premium covering the transportation of such articles to the port of entry in the Philippines.

Where the export value of the article cannot be ascertained thereat or where there exists a reasonable doubt as to the fairness of such value, then the export value of the article for exportation to the Philippines shall be the export value of the article in the principal export markets of the country of manufacture or origin, if such country is not the country of exportation.

Where the dutiable value cannot be ascertained as provided in the preceding paragraphs, or where there exists a reasonable doubt as to the dutiable value of the imported article declared in the entry, the dutiable value shall be the domestic wholesale selling price of such or similar article in Metro Manila or other principal markets in the Philippines on the date the duty becomes payable on the article under appraisement, in the usual wholesale quantities and in the ordinary course of trade, minus:

The correct dutiable value of imported articles shall be ascertained by the Commissioner of Customs using for that purpose reports of Revenue or Commercial Attaches or other Philippine diplomatic officers or such other sources of information that may be available to the Bureau of Customs. Such values shall be published from time to time.

Values shall be published in a manner that will make them readily available to the public. Any importer or other interested party who is dissatisfied with the published value shall have fifteen (15) days from the date of publication of such published values the opportunity to file protest on the questioned value, and the Commissioner of Customs shall resolve the protest within fifteen (15) days from such protest either by amending the published value or retaining the same. Whatever his decision may be must likewise be published.

If, in the course of determining the dutiable value of imported goods, it becomes necessary to delay the final determination of such dutiable value, the importer may secure the release of the imported article upon the filing of a bond which shall solely be in cash in an amount equivalent of the imposable duties and taxes on the imported goods in question plus twenty-five percent (25%) thereof, conditioned upon the payment of customs duties and taxes for which the imported goods may be liable: Provided, however, That imported goods the importation of which is prohibited by law shall not be released under any circumstances whatsoever.

Section 3. In the interest of national economy, general welfare and/or national security, the Congress shall, upon recommendation of the President, by joint resolution, order the shift to transaction value, as provided under Section 1 of this Act, as the basis of dutiable value of an imported article subject to an ad valorem rate of duty even before January 1, 2000.

Section 4. The Secretary of Finance shall, upon the recommendation of the Commissioner of Customs, promulgate the necessary rules and regulations for the effective implementation of this Act.

Section 5. The Commissioner of Customs may delegate his power to determine dutiable values and to release imported goods under cash bond as provided in this law in cases where there are no established and published values covering the importation: Provided, That in such cases, the Collector of Customs concerned shall immediately render a complete report to the Commissioner of Customs and the latter shall, without delay, establish and publish the correct dutiable value or values for the importation, after which all Collector of Customs shall be guided accordingly in the assessment of import duties and taxes on similar or like importations.

Section 6. The Commissioner of Customs shall create such body or bodies to receive and hear protests regarding published values. Such body or bodies shall hear and receive the evidence and shall submit its or their recommendations to the Commissioner of Customs. The hearing body shall submit its report in writing and shall convey to all interested parties whatever decision reached by the commissioner thereon. During the effectivity of any published values, any interested party may petition the Commissioner of Customs for a review of the published value for the purpose of raising or lowering such value.

Section 7. All laws, decrees, executive orders, rules and regulations and other issuances or parts thereof which are inconsistent with this Act are hereby repealed or modified accordingly.

Section 8. This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) newspapers of general circulation, whichever date comes earlier.