REPUBLIC OF THE PHILIPPINES TARIFF COMMISSION COMMISSION ORDER NO. 2017-_91 SUBJECT: PROCEDURE ON APPLICATION FOR AN ADVANCE RULING ON TARIFF CLASSIFICATION RELATED TO IMPORTATION OR EXPORTATION OF GOODS This Commission Order (Order) establishes the procedure for an Advance Ruling ‘system on tariff classification involving imported and exported goods pursuant to Chapter 1 of Title XI of Republic Act No. 10863 or the Customs Modernization and Tariff Act (CMTA), consistent with Philippine commitments under the World Trade Organization's Agreement on Trade Facilitation, the ASEAN Trade in Goods Agreement, World Customs Organization's (WCO) Harmonized System Convention, the Revised Kyoto Convention, and other relevant trade agreements. Section 1. Scope. 1.1. This covers the procedure on the application for an Advance Ruling regarding tariff classification under Section 1100, Chapter 1, Title XI of the CMTA, elated to importation or exportation of goods. In accordance with Sections 1610 and 1611 of the CMTA, tariff classification refers to the act or process of determining the subheading in the ASEAN Harmonized Tariff Nomenclature (AHTN)' to which goods appropriately belong. 1.2. Applications for an Advance Ruling on tariff classification of goods shall be filed with the Tariff Commission (Commission) for determination. 1.3. This Order shall also apply to movement of goods into and from free zones? 1.4. Requests for Advance Rulings on valuation? and rules of origin* shall be filed with the Bureau of Customs (BOC). Section 2. Objectives. 2.1. To provide rulings on tariff classification of goods prior to their importation or exportation, in order to add certainty and predictability to international trade and help importers or exporters make informed decisions based on legally binding rules. OY * Protocol on the Implementation of the AHTN. ? Section 816, Chapier 3, Title Vill, CMTA. 3 Section 1101, Chapter 1, Title XI, MTA. * Section 1102, Chapter 1, Title XI, CMTA. $* Floor, Philippine Heart Center MAB, East Avenue, Diliman, 1101 Quezon City, Philippines Tel. Nos, (632) 929-1964 / (632) 926-8731 926-7476 @ PHC Trunkline (632) 925-2401 10 $0 local 3501 to 3512 Fax No, (632) 921-7960 « E-mail Address: info(@tariffeommission.gov.ph © Website: hip:/www.tariffeommission,gov-ph2.2. To enable the establishment of an Advance Ruling system that is in line with the standards set out in the Revised Kyoto Convention, the World Trade Organization's Agreement on Trade Facilitation, the ASEAN Trade in Goods Agreement, other relevant international trade facilitation agreements, relevant Philippine laws, and international best customs: practices. 2.3. To increase the level of stakeholders’ compliance through an informed customs compliance regime. Section 3. Definition of Terms. 3.4. Advance Ruling on Tariff Classification - an official written decision issued by the Commission which provides the Applicant with the appropriate tariff classification of goods under the AHTN prior to an importation or exportation. 3.2. Applicant — a natural or juridical person who is an importer or exporter requesting for an Advance Ruling pursuant to this Order. 3.3. ASEAN Harmonized Tariff Nomenclature (AHTN) - an cight-digit ‘commodity nomenclature adopted by the ASEAN Member States to harmonize their tariff nomenclatures at the eight-digit level. It adheres to the six-digit commodity classification code of the Harmonized Commodity Classification and Coding System of the WCO but adds two digits, with corresponding commodity descriptions, that represent ASEAN subheadings. 3.4. Authorized Representative — a natural or juridical person duly authorized by the Applicant in writing to process its application for an Advance ruling. 3.5. Filing Fee — a non-refundable amount assessed by the Commission to be paid by the Applicant or his/her Authorized Representative to cover the reasonable cost of service rendered for the issuance of an Advance Ruling, 3.6. _Exportation — refers to the act, documentation and process of bringing goods out of Philippine territory. 3.7. Exporter — refers to any of the following a. Domestic exporter - a natural or juridical person intending to bring goods out of the Philippines. b. Foreign exporter - a natural or juridical person in a foreign country intending to supply goods into the Philippines from a foreign country. 3.8. Importer — a natural or juridical person intending to bring in goods to the Philippines from a foreign territory, whether for consumption, warehousing or admission. ot ® Includes natural or juridical persons intending to move goods into and from free zones. f Page 20f73.9. 3.10. Importation — refers to the act of bringing in goods from a foreign territory into Philippine territory, whether for consumption, warehousing, or admission. The date of importation shall be the date of lodgment of goods declaration Goods - refer to articles, wares, merchandise and any other items which are subject to importation or exportation. Section 4. Administrative Provisions. 44. 4.2. 4.3. 4.4, 45. Ibid. Who May Apply for an Advance Ruling on Tariff Classification. ‘An Applicant or his/her Authorized Representative may apply for an Advance Ruling, Conditions for Application of an Advance Ruling on Tariff Classification. An application for an Advance Ruling shall cover only one product or good, as determined by the Commission ® Period for Filing an Application for an Advance Ruling on Tariff Classification. Applications for an Advance Ruling should be filed at least ninety (90) days before the date of the importation or exportation.” Procedure for Classification. ing an Application for an Advance Ruling on Tariff Applicants shall submit three (3) copies of the filled-out application form prescribed by the Commission together with supporting documents and samples of the good, if required The Commission shall assess the sufficiency of the filled-out form and its supporting documents before payment of appropriate fees and assignment of a unique application reference number. Grounds for Non-Acceptance of an Application for an Advance Ruling on Tariff Classification. ‘An application for an Advance Ruling may not be accepted in any of the following cases: ‘. the application is not in the prescribed application form; |, ® Section 1103, Chapter 1, Title Xl, CMTA. tb Page 3 of 7