Tariff heading amendment—56.02
- Section 1 amends Heading No. 56.02, Chapter 56 of the Revised Tariff and Customs Code, as previously amended by Presidential Decree No. 34, to read the following rates for continuous filament tow.
- Section 1(A) imposes ad valorem 10% on articles not included in subheadings B and C under 56.02.
- Section 1(B) imposes ad valorem 20% on acetate tow and similar continuous filament tow when imported directly by cigarette filter rod manufacturers.
- Section 1(C) imposes ad valorem 30% on polyester filament tow, except when imported directly by textile spinning mills under prior joint authorization of the Tariff Commission and the Board of Investments.
Customs exemptions—Section 105 additions
- Section 2 amends Section 105 of the Revised Tariff and Customs Code to include additional cases covered by Section 105(w), Section 105(x), and Section 105(y).
- Section 105(w) exempts from coverage under the rule being amended spare parts of vessels or aircraft of foreign registry engaged in foreign trade when brought into the Philippines exclusively as replacements or for emergency repair, upon proof satisfactory to the Collector of Customs that the spare parts will be utilized to secure safety, sea-worthiness, or air-worthiness to enable the vessel or aircraft to continue its voyage or flight.
- Section 105(x) allows the treatment of articles of easy identification exported from the Philippines for repair and subsequently re-imported, upon proof satisfactory to the Collector of Customs that the article is not capable of being repaired locally.
- For Section 105(x), the cost of repairs paid on such article must pay a duty rate of thirty percent ad valorem (30%).
- Section 105(y) covers trailer chassis when imported by shipping companies for their exclusive use in handling containerized cargo, conditioned upon posting a bond equal to one and one half times the ascertained duties, taxes and other charges due to cover a period of one year from the date of acceptance of the entry.
- Under Section 105(y), the Commissioner of Customs may extend the one-year period for another year for meritorious reasons, subject to:
- proper identification and registration with the Land Transportation Commission;
- the trailer chassis being subject to a customs supervision fee set by the Collector of Customs and subject to approval by the Commissioner of Customs;
- deposit of the trailer chassis in the customs zone when not in use; and
- payment of duties and taxes upon expiration unless the chassis is otherwise re-exported.
Bonded warehouse storage—Section 1908
- Section 3 amends Section 1908 of the Revised Tariff and Customs Code to impose a limit on warehousing.
- Section 1908 provides that articles duly entered for warehousing may remain in bonded warehouses for a maximum period of one year from the time of arrival at the port of entry.
- Section 1908 directs that articles not withdrawn upon expiration of the prescribed period shall be sold at public auction by the Collector.
Unlading and cargo handling penalties
- Section 3 amends Section 2517 to penalize unauthorized unladings before arrival.
- Section 2517 provides that if, upon arrival within the limits of any collection district of the Philippines, the master or pilot in command permits any part of the cargo to be unladen before arrival at the port of destination and without authority from a proper customs official, the vessel or aircraft is fined not less than PHP 30,000 but not exceeding PHP 100,000, with no fine accruing upon satisfactory proof to the proper Collector that the unlading was rendered necessary by stress of weather, accident, or other necessity.
- Section 3 amends Section 2518 to penalize discharging cargo at an improper time or place after arrival.
- Section 2518 provides that any vessel or aircraft that, after arrival at its port of destination in the Philippines, discharges cargo at any time or place other than that designated by the Collector is fined not less than PHP 30,000 and not exceeding PHP 100,000, with no fine accruing upon satisfactory proof to the proper Collector that the unlading was rendered necessary by stress of weather, accident, or other necessity.
- Section 3 amends Section 2520 to penalize concealed arms, explosives, munitions, or war equipment.
- Section 2520 provides that any vessel or aircraft arriving at a port in the Philippines having firearms, gunpowder, cartridges, dynamite, or any other explosives, munitions, or equipments of war concealed on board or not contained in the manifest is fined not less than PHP 30,000 but not exceeding PHP 100,000.
- Section 3 amends Section 2521 to penalize failure to supply requisite manifests.
- Section 2521 provides that if any vessel or aircraft enters or departs from a port of entry without submitting the proper manifests to customs authorities, or enters or departs conveying unmanifested cargo other than as stated in the preceding section (Section 2520), the vessel or aircraft is fined not less than PHP 10,000 but not exceeding PHP 30,000.
- Section 2521 further provides that the same fine applies if the master or pilot in command fails to deliver or mail to the Commission on Audit a true copy of the manifest of the incoming or outgoing cargo as required by law.
Mode of sale—Section 2603
- Section 3 amends Section 2603 to govern how customs authorities sell property subject to sale.
- Section 2603 provides that in the absence of any special provision and subject to Section 2601 above, property subject to sale by customs authorities is sold at public auction.
- Section 2603 provides that the auction must occur within thirty (30) days after ten (10) days notice of such sale has been conspicuously posted at the port and such other advertisement as may appear advisable to the Collector.
Repeal and transitory effects
- Section 4 repeals or modifies any laws, decrees, orders, rules, or regulations, or parts thereof, that are inconsistent with the Decree’s provisions.
- Section 5 provides that the Decree takes effect upon approval.