Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1352)
The main purpose of Presidential Decree No. 1352 is to impose a five percent customs duty and five percent internal revenue tax on importations which are previously exempt from such duties and taxes in order to rationalize and harmonize fiscal incentives and conserve government revenues.
It applies to all importations presently exempt from customs duties and/or internal revenue taxes under any general or special laws, except those specifically exempted under the decree.
Importations exempted include those under international treaties and commitments like the ADB-RP Host Agreement, 1947 UN Convention on Privileges and Immunities, USAID-RP Agreement, 1947 Military Bases Agreement, and other similar treaties; and those exempt under specified Presidential Decrees and Republic Acts enumerated in Section 1.
The duty and tax are computed based on the applicable provisions of the Tariff and Customs Code, as amended, for customs duties, and the National Internal Revenue Code of 1977 for internal revenue taxes.
Various Presidential Decrees including No. 218, 269, 348, and others, as well as Republic Acts such as RA No. 720, 3470, 4156, 5186, among others listed in Section 2, are repealed or amended accordingly.
The President, upon recommendation of the Fiscal Incentives Review Board, may declare a particular provision of an existing law (not enumerated in Section 2) as not repealed or amended by the decree.
The Secretary of Finance, upon recommendation of the Commissioner of Customs, is responsible for promulgating the necessary rules and regulations.
The decree took effect immediately upon its signing on April 21, 1978.
The policy basis is the rationalization and harmonization of fiscal incentives granted under existing laws to conserve government revenues, as enunciated under Presidential Decree No. 776.
No, importations exempt under the 1947 Military Bases Agreement are excluded from the customs duties and internal revenue taxes imposed by this decree.