Tariff and Customs Code
Salient Points
Tariff and Duties Defined
Tariffs are customs duties, toll, or
tribute payable upon merchandize to
the government.
Custom Duties is the name given
to the taxes on the importation and
exportation of commodities, the tariff
or tax assessed upon merchandise
imported from, or exported to a foreign
country
In simple terms, customs and
tariffs refer to the taxes imposed on
imported or exported wares, articles or
merchandise.
As to IMPORTED ARTICLES:
General Rule:
All imported articles are subject
to duty.
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All articles, when imported
from any foreign country into the
Philippines, shall be subject to
duty upon each importation, even
though previously exported to the
Philippines
IMPORTATION BY THE GOVT
GENERAL RULE:
All importations by the
government for its own use or that of
its subordinate branches or
instrumentalities or owned and
controlled by the government shall be
subjected to duties, taxes, fees and
other charges provided for by the
Code.
EXCEPTIONS:
1. If expressly exempted under
special law;
2. Conditionally free importations;
3. Those granted to govt agencies,
instrumentalities or govt
owned & controlled corps. with
existing contracts, commitments,
agreements or obligations with
foreign countries.
PURPOSE
1. To achieve some social and
economic objectives;
2. Protect local industries.
FLEXIBLE TARIFF CLAUSE
A provision which
implements the constitutionally
delegated power to the Congress to
further delegate the President of the
Philippines, in the interest of national
economy, general welfare or national
security upon recommendation of the
NEDA:
1. To increase, reduce or remove
existing protective rates of import duty
provided that, the increase should not
be higher than 100% ad valorem
2. Establish import quota or to ban
imports of any commodity;
3. To impose additional duty among
imports not exceeding 10% ad
valorem, among others.
4. To modify the forms of duty,
whether ad valorem or specific.
In simple terms, the Flexible tariff
clause refers to the authority
given to the President to adjust
the tariff rates.
REQUIREMENTS OF IMPORTATION
BEGINNING AND ENDING OF
IMPORTATION
IMPORTATION BEGINS:
When the conveying vessel
or aircraft enters the
jurisdiction of the
Philippines with intention
to unlade therein
IMPORTATION ENDS:
Upon payment of the
duties, taxes and other charges due
upon the agencies or secured to be
paid at the port of entry and the legal
permit for withdrawal have been
granted.
NB: If articles are free from any
charges, importation ends until they
have legally left the jurisdiction of the
customs.
OBLIGATIONS OF IMPORTER
CARGO MANIFEST
The master shall, prior to
departure, deliver or mail to the
Auditor General the returned copy of
the manifest of the export cargo.
IMPORT ENTRY
Imported articles must be entered in
the customhouse within a non
extendible period of 30 days from the
date of discharge of the last package
from a vessel.
If not entered, the BOC will
deem the imported goods
impliedly abandoned.
LIABILITY OF PAYMENT OF DUTIES
Unless relieved by laws or
regulations, the liability for duties,
taxes, fees and other charges
attaching on importation constitutes a
personal debt due from the importer to
the government which can be
discharged only by payment in full of
all duties, taxes, fees and other
charges legally accruing. It also
constitutes a lien upon the articles
imported which may be enforced while
such articles are in custody or subject
to the control of the Govt.
LIQUIDATION OF DUTIES
It is the final computation and
ascertainment of the collector of the
duties on the imported merchandize,
based on official reports as to the
quantity, character and value thereof
and the collectors own finding as to
the applicable rate of duty.
KEEPING OF RECORDS
Collectors, assistant collectors, deputy
collectors, surveyors and other
customs officials acting in such
capacities are required to keep
true, correct, and permanent
records of their official
transactions, to submit the same
to the inspection of authorized
officials at all times, and to turn
over all records and official papers
to their successors or other
authorized officials.
IMPORTATION IN VIOLATION OF TCC
SMUGGLING
SMUGGLING IS COMMITTED BY ANY
PERSON WHO:
1. Fraudulently imports or brings
into the country any article
contrary to law;
2. Assist in so doing any article
contrary to law;
3. Receives, conceals, buys, sells or
in any manner facilitates the
transportation, concealment or
sale of such goods after
importation, knowing the same
to have been imported contrary
to law.
OTHER FRAUDULENT PRACTICES
ANY PERSON who makes or attempt to
make any entry of imported or
exported article by means of any false
or fraudulent invoice, declaration,
affidavit, letter, paper or by means of
any false statement, written or verbal,
or by means of any false or fraudulent
practice whatsoever;
.or shall be guilty of any willful act or
omission by means of whereof the
govt might be deprived of the lawful
duties, taxes and other charges or any
portion thereof..
PUNISHMENT:
Fine of not less than 600 pesos nor
more than five thousand pesos and by
imprisonment for not less than six
months nor more than two years. And
if offender is alien, deported after
serving sentence.
CLASSIFICATION OF GOODS
1. TAXABLE IMPORTION
2. PROHIBITED IMPORTATION
3. CONDITIONALLY - FREE
IMPORTATION
TAXABLE IMPORTATION
All articles, when imported from
any foreign country into the
Philippines, shall be subject to
duty upon each importation, even
though previously exported to the
Philippines
PROHIBITED IMPORTATION
1. Weapons of War
Except when authorized by law
2. Insidious or seditious written or
printed material in any form;
3. Obscene or immoral or insidious
articles;
4.Articles used for producing
unlawful abortion;
5. Gambling devices
6. Lottery and sweepstakes
tickets;
Except if authorized by the
Philippine Government
7. Any article manufactures in
whole or in part of gold, silver or
other precious metals or alloys
thereof. The stamps, brands or
marks or which do not indicate the
actual fineness of quality of said
metals or alloys.
8. Any adulterated or misbranded
articles of food or drug in
violation of the FDA;
9. Narcotics and prohibited drugs;
Except when imported by the
govt of the Philippines or by any
person authorized by the DDB.
10. Opium pipes or part thereof;
11. All articles or part thereof, the
importation of which is prohibited
by law or rules.
CONDITIONALLY FREE IMPORTATIONS