QuestionsQuestions (DA DEPARTMENT ORDER NO. 3, 16 OCTOBER 2002)
The imposition of the SSG duty is authorized under Republic Act No. 8800, the Safeguard Measures Act, specifically Chapter III (Sections 21 and 23).
The order covers imported onions classified under HS Code 0703.1000.
The SSG duty is imposed over and above the regular customs duty of 50%.
It is collected on a shipment-by-shipment basis.
The duty is imposed when the trigger price is breached, either because (1) the published trigger price has been exceeded by import prices being below it, or (2) the average CIF import price for the relevant period (January to July 2002) has gone below the trigger price.
The trigger price (TP) is P74.21 per kg. The example CIF price (P) used is P6.55 per kg.
Compute the difference between the trigger price and the CIF price: (TP − P).
PD is the ratio of the price difference to the trigger price: PD = (TP − P) / TP, expressed in percent.
When PD > 75%, the annex specifies a bracketed formula that allocates portions of duty across multiple sub-ranges (90% of amounts above 75% plus 70%, 50%, and 30% components for the respective lower bands).
The PD is (74.21 − 6.55) / 74.21 = 91.17%. It matters because PD determines which bracketed formula applies; PD > 75% uses the highest bracket.
The annex concludes that the SSG duty is P64.05 per kg. (over and above the regular customs duty), using the bracketed computation.
If PD ≤ 10%, the annex provides that SSG duty shall be 0.00.
Annex A cites Section 24(b) of Chapter III of RA 8800 as the basis for the price test computation method.
Annex B provides the volume of onion imports from 1999 to 2002, including CIF values and unit prices per year and per month in 2002. It supports the justification by showing increased import volumes and price trends relevant to the safeguard trigger.
The unit price in 2001 is P6.00 per kg., while in 2002 it is P6.55 per kg. (overall annual summary).
The request is that the imposition of the SSG duty be made effective immediately.
The letter is signed by Leonardo Q. Montemayor (Secretary). The communication is addressed to Commissioner Antonio M. Bernardo (Bureau of Customs), with the Department of Finance Secretary Jose Isidro N. Camacho indicated in the transmittal line.