QuestionsQuestions (BOC MEMORANDUM CIRCULAR NO. 543-99)
To clarify that Maling luncheon meat (HS code 1602) is not included as an Agricultural Minimum Access Volume (MAV) product under DA Administrative Order (A.O.) No. 1 s. 1998, and therefore the Bureau of Customs (BOC) should apply the out-quota tariff rates (higher rate) rather than require the MAV import clearance/requirement (MAVIC).
Department of Agriculture Administrative Order (A.O.) No. 1, series of 1998, which provides the Rules and Regulations for the Implementation of the Agricultural Minimum Access Volumes (MAVs).
The BOC shall collect duties based on the out-quota tariff rates.
Annex I lists the MAV quantities for particular tariff lines; if a tariff line is not provided with MAV quantities there, it indicates the product is not treated as having MAV commitment.
HS code 1602.
In-quota: TH 1602.4910 at 30% ad valorem. Out-quota: TH 1602.4920 at 60% ad valorem.
MAVIC refers to the MAV import clearance/clearance documentation linked to availing MAV in-quota treatment. It is relevant because the BOC questioned whether the absence of MAV commitment means no MAVIC is required and whether that affects which tariff rate applies.
It acknowledged that Maling luncheon meat is not included as MAV products under DA A.O. No. 1 s. 1998, and therefore the BOC should apply the out-quota rate as a matter of course.
It applied Section I.M.1 of A.O. No. 1 s. 1998: even if an in-quota tariff rate exists, if Annex I does not provide MAV quantities for the tariff line, duties should be collected at the out-quota rate. Hence, since Maling under HS 1602 is not in MAV products, out-quota rates apply.
He questioned the implications of the DA’s certification: if no MAVIC is required, should BOC automatically apply the higher out-quota rate? Alternatively, he noted another contention that because Maling has no MAV commitment, the importer may not need MAVIC to avail of the lower in-quota rate.
EO 313 is now incorporated into Section 104 of the Tariff and Customs Code of the Philippines (TCCP) (as referenced in Commissioner Tan’s letter).
No. The rule requires that the tariff line must have MAV quantities listed in Annex I. If Annex I has no MAV quantity for that line, in-quota entitlement is not applied and out-quota rates are collected.
Importers cannot avail of MAV in-quota tariff treatment (or the MAVIC requirement is not applicable), and BOC will collect duties using the higher out-quota rate.
DA determines whether products have MAV commitment and are listed with MAV quantities in Annex I; then BOC uses that determination to decide whether in-quota MAV tariffs apply or whether it must apply out-quota rates under Section I.M.1.