QuestionsQuestions (Republic Act No. 6055)
The DA is relying on Republic Act No. 8800, known as the Safeguard Measures Act, specifically Chapter III, Sections 21 and 23.
The DA requests: (1) price-based SSG duty and (2) volume-based SSG duty.
It means the duty is imposed on a shipment-by-shipment basis depending on the difference between the actual c.i.f. import price and the product’s trigger price.
Examples include: (1) HS 0207.11 20 — meat and offal of fowls (Gallus domesticus), not cut in pieces, fresh or chilled; and (2) HS 0207.12 20 — meat of fowls (Gallus domesticus), not cut in pieces, frozen; also covered are HS 0207.14 12, 0207.14 92, and 1602.32 90.
It may be imposed if the product’s trigger price has been breached—i.e., when the actual c.i.f. import price is less than the corresponding trigger price.
The DA states that it uses the formula provided under Section 24 of RA 8800.
The Annex A example shows a price difference equivalent to 93% of the trigger price; thus, it applies the Section 24 rule that applies to computed price differences exceeding 75% of the trigger price.
Each import shipment is evaluated individually by comparing the shipment’s actual c.i.f. import price against the product’s trigger price, and the SSG duty amount is determined accordingly for that shipment.
The DA text lists HS 1602.32 10 — meat and offal of fowls (Gallus domesticus), prepared or preserved in airtight containers.
The DA requests 15% SSG duty (stated as 50% x regular out-quota customs duty; and also explained as one third of the applicable out-quota customs duty under Chapter III, Rule 23.1.b of RA 8800).
It refers to the threshold cumulative import volume for the product during the specified period; volume-based SSG duty is requested if the trigger volume has been breached or if cumulative import volume for the year has exceeded it.
It requests that the volume-based SSG duty be made effective immediately but only up to the end of the year, and it further requests that imposition be effective immediately (as stated in the final paragraph).
Price difference = trigger price − current/actual c.i.f. import price. In the example: 423.55 − 31.55 = 392 pesos per kg.
The example concludes that the SSG duty over and above the regular out-quota customs duty may be 379.59 pesos per kg.
It means the SSG duty is an additional duty on top of whatever regular out-quota customs duty already applies to imports that fall outside the quota.
It cites Chapter III, Rule 23.1.b of RA 8800 for the statement that the SSG duty is one third of the applicable out-quota customs duty.