Law Summary

1. Background and Purpose

• Concise Explanation: Executive Order No. 66 was issued to amend specific subsections of Section 302 of Presidential Decree No. 1464 (Tariff and Customs Code of 1978) to align with international trade agreements, specifically the General Agreement on Tariffs and Trade (GATT) provisions regarding countervailing duties.

• Key Definitions:

  • Countervailing Duty: A tariff imposed to counteract subsidies provided by foreign governments.

• Important Details:

  • This order addresses confusion regarding countervailing bond amounts and the duration of countervailing decisions.

2. Amendments to Section 302

• Concise Explanation: Subsections "c" and "f" of Section 302 have been amended to clarify the procedures related to countervailing duties.

• Section 302 (Countervailing Duty):

  • Subsection c:

    • Explanation: The release of goods under investigation is contingent upon the filing of a bond.
    • Requirements:
      • A bond must equal the estimated or ascertained amount of the subsidy as provisionally determined by the Minister of Finance.

  • Subsection f:

    • Explanation: Establishes the effective period of countervailing decisions and the process for their extension.
    • Requirements:
      • Countervailing decisions are effective for five (5) years from promulgation.
      • Interested parties may request an extension at least six (6) months before the expiration.
      • The Commission must submit findings to the Minister three (3) months prior to expiration.

• Important Details:

  • The decision is subject to review based on the conditions outlined in paragraph "a".

3. Repeal of Inconsistent Laws

• Concise Explanation: Any existing laws, orders, or regulations that conflict with this Executive Order are repealed or modified accordingly.

• Important Details:

  • This provision ensures that the amendments made by Executive Order No. 66 take precedence over conflicting legal texts.

4. Effectivity

• Concise Explanation: The Executive Order takes effect immediately upon issuance.

• Important Details:

  • This provision emphasizes the urgency and immediate applicability of the amendments.

Key Takeaways

• Executive Order No. 66 amends the Tariff and Customs Code to clarify the bond requirements for the release of goods under countervailing investigations and the effective duration of countervailing duties.
• The amendments establish clear procedures for the extension of countervailing decisions and dictate that conflicting laws are repealed.
• The order is effective immediately, underscoring the need for compliance with the updated provisions.