Question & AnswerQ&A (Act No. 1566)
The main purpose of Act No. 1566 is to regulate the free entry of certain railroad materials imported into the Philippine Islands for the construction and equipment of railroads granted concessions by specific Acts, allowing them to be admitted free of duty under prescribed rules and regulations.
Act No. 1566 covers railroad materials imported for railroads granted concessions by Acts Numbered 1497 and 1510.
A free entry in duplicate similar to the form for Government importations, a commercial invoice specifying the kind and value of materials, and a certificate signed by a railroad company's representative stating the intended use of the materials for construction and equipment of a railroad chartered by an Act of the Philippine Commission.
The certificate must state that the material is to be used in construction and equipment of a railroad line chartered by a specified Act, that no other use or disposition will be allowed without notifying the Insular Collector of Customs, and materials will be held subject to customs authority until duties are assessed if any other disposition is contemplated.
No. According to Section 3, the free entry applies only to materials for construction and equipment. It does not apply to any material or supplies after the railroad is constructed and equipped.
The Insular Collector of Customs may submit the question in writing to the Supervising Railway Expert, who will examine the article and certify whether it is a proper item in the cost of construction and equipment of a railroad.
No. Section 5 prohibits exemption for articles purchased from funds other than the railroad company or its contractors, nor for personal use of officers or employees irrespective of the source of funds.
These materials must be inventoried and assessed for duty upon completion of the railroad line, including used construction machinery and equipment beyond what is reasonably used in maintenance and operation, which will be valued by the Insular Collector of Customs for duty assessment.
No. Section 7 specifies that the Act does not affect or amend existing laws or regulations regarding protests or appeals from adverse customs decisions.
Under Section 8, the collector may admit the materials without payment of duty after examination and appraisement, notify the railway company of the duties found due, and report to the Governor-General for final adjustment and decision.
Yes. Section 9 authorizes collectors at sub-ports of entry to grant free entry under the general supervision of the Insular Collector of Customs, even if the exemption is questioned.
The Act took effect upon its passage on December 7, 1906, as provided in Section 11.