Title
Free Entry of Railroad Materials Regulation
Law
Act No. 1566
Decision Date
Dec 7, 1906
Act No. 1566 regulates the free entry of specific railroad materials imported into the Philippine Islands for the construction and equipment of railroads, with exemptions and limitations, and outlines the importation process and assessment of unused materials.

Importation Procedure and Documentation

  • Materials must be imported through a regular port of entry.
  • A free entry form in duplicate, modeled after Government importations, must be presented to the customs collector.
  • A commercial invoice detailing the materials and their value must accompany the entry.
  • A certificate from the railroad company's agent affirming intended use and adherence to conditions is required.

Limitations on the Application of Free Entry

  • The exemption applies only to materials for construction and equipment.
  • Materials or supplies for maintenance or other purposes after completion are excluded.

Clarification of Doubtful Cases

  • Customs collectors may refer questionable items to the Supervising Railway Expert.
  • The expert evaluates if the article is a proper charge against construction costs under relevant laws.
  • Certification guides whether the item qualifies for free entry.

Exclusions from Exemptions

  • Materials purchased from non-railroad company funds or contractors' funds do not qualify.
  • Personal use items for officers or employees are excluded regardless of funding source.

Post-Construction Assessment and Duty

  • Materials not used in construction/equipment must be inventoried and assessed for duty after completion.
  • Used construction machinery exceeding reasonable operational requirements is subject to duty at valuation by customs.

Preservation of Existing Customs Appeal Rights

  • Existing laws on protests and appeals from customs decisions remain unaffected.

Admission of Dutiable Materials with Deferred Payment

  • Customs may admit materials not clearly exempt after appraisement without immediate duty payment.
  • Written notice of dutiable status and amount is given to the railway company.
  • The matter is reported to the Governor-General for final determination.
  • Customs holds all relevant documents during this process.

Regulatory Authority and Sub-Port Administration

  • The Insular Collector of Customs can issue necessary regulations consistent with the Act.
  • Sub-port collectors may grant free entry under supervision and general direction.

Expedited Enactment and Effective Date

  • Passage of the Act is expedited due to public necessity.
  • The Act is effective immediately upon passage on December 7, 1906.

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