QuestionsQuestions (Republic Act No. 1602)
RA 1602 provides for the allocation, reallocation, and administration of export quotas for specific Philippine products (cordage, buttons of pearl or shell, cigars, scrap and filler tobacco, and coconut oil) that may be entered/withdrawn from warehouse for consumption in the United States, and sets rules on allotments, reporting, penalties, and disposition of unallocated balances.
It is allocated annually to manufacturers of the specified kind of cordage whose products were exported to the U.S. during 1947–1955 (or their successors), proportionately based on their highest volume of exportation to the U.S. during any year in 1947–1955 (or predecessor’s highest export volume for successors).
The quota applies to cordage that may be entered or withdrawn in the U.S. for consumption from January 1, 1956 to July 3, 1974 (inclusive). The law requires annual allocation to qualified manufacturers.
Regular quota holders (1947–1955) who actively engaged in manufacture and export and who did not transfer, lease, or sell the whole or part of their quotas retain their quotas as provided under the 1946 Trade Agreement.
After deducting regular quota holders’ quotas, the remaining balance is allocated to active manufacturers/exporters who had no regular quota during 1947–1955, proportionately based on their highest export volume to the U.S. during 1952–1955. However, no grantee’s quota may exceed that of permanent quota holders.
It is allocated to regular quota holders during 1947–1955 who actively manufactured/exported buttons of pearl or shell but had not transferred/leased/sold the whole or part of their quotas, proportionately based on their highest export volume to the U.S. during 1947–1955.
Section 3 covers (1) cigars (excluding specified items), (2) scrap tobacco and stemmed/unstemmed filler tobacco described in paragraph 602 of the U.S. Tariff Act of 1930 (as amended), and (3) coconut oil. Duty-free quotas are allocated annually to manufacturers of the corresponding class whose exports to the U.S. during 1947–1955 are used as the basis, in amounts equal to their highest volume of exportation (but for scrap and filler tobacco, not less than 250,000 pounds).
They are for calendar years 1956, 1957, and 1958.
For each three-year period from 1959–1961 onward until 1973, each quota holder’s duty-free allotment equals his allotment for 1956–1958. If the total duty-free allotments exceed the reduced total due to diminution under the Revised Agreement, each holder’s allotment is reduced proportionately.
The unallocated balance is assigned to the Government for disposition and is made available for allocation to manufacturers of the relevant class who are able and ready to export to the U.S., with specific percentage splits and order of priority under subsections (a) to (d).
Fifty percent is allocated to regular quota holders during 1947–1955 who filled their regular quotas, proportionately based on average yearly production (taxes paid to BIR and/or other satisfactory evidence). The remaining 50% is allocated to other quota holders under RA 1602 (not those in (a)) who filled their current regular quotas, using the same basis.
He must report to the proper office the amount of his allotment which he is or will be unable, for any reason, to export to the United States.
He permanently loses the right to his allotment and to any allotment thereafter.
His allotment for the next year is automatically reduced by the amount of his deficiency, and he may export to the U.S. only the amount representing his total exportation during the preceding year.
If he ceases to manufacture the covered class of article/product, or fails within one year from the date of approval of the Act to make use of his right to his allotment, his allotment reverts to the Government as unallocated quota.
Yes. The penalties do not apply to quota holders whose failure to fill their quota or to make use of their right to allotment within one year from the Act’s approval is due to circumstances or conditions beyond their control.
It refers to persons/juridical entities that, by physical or chemical process, alter the exterior texture/form or inner substance of raw/material or partially finished product to prepare it for special use(s), improve quality to marketable shape, combine products/materials to create finished product for a special use, and do so for the purpose of sale/distribution to others (not for their own use/consumption).