EXECUTIVE ORDER NO. 365

Law Summary

Introduction

Executive Order No. 365, issued on August 28, 1996, by President Fidel V. Ramos, provides for the tariff nomenclature and implements rates of import duties on certain imported articles, specifically concerning petroleum products under Republic Act Nos. 8180 and 8184.

Purpose and Background

Legal Basis: The order implements Republic Act No. 8180, which mandates a 3% tariff on imported crude oil and a 7% tariff on refined petroleum products, excluding fuel oil and LPG.
Objective: To maintain a 4% tariff differential between crude oil and refined petroleum products and guide the Bureau of Customs in the correct collection of customs duties.

Section 1: Import Duty Rates

Provision Overview: Articles listed in Annex "A" are subject to specified rates of import duty according to the Tariff and Customs Code of 1978.
Key Details: • Each article's tariff rate is specified in the schedule provided in Annex "A". • The rates aim to establish a clear framework for the taxation of petroleum imports.

Section 2: Abolition of Special Levy

Provision Overview: Upon the effectivity of Republic Act No. 8184, the special levy on imported crude oil and petroleum products will be abolished, except for specific cases.
Key Definitions: • Lubricating Oil Basestock (HS 2710.00 40) and Other Solvents (HS 2710.00 70) are exceptions to this abolition.
Important Requirements: • The special levy of P0.95 per liter on crude oil and P1.00 per liter on petroleum products will be removed. • New duties will be applied as prescribed in the revised tariff schedule in Annex B.
Timeframes: • The abolition applies to articles entered into or withdrawn for consumption after the implementation of RA 8184.

Section 3: Revocation of Inconsistent Issuances

Provision Overview: All prior issuances that conflict with this Executive Order are revoked or modified as necessary.
Key Details: • This ensures legal consistency and clarity in the implementation of duties.

Section 4: Effectivity

Timeframes: • Annex A: Effective from April 16, 1996, until the enactment of RA 8184. • Annex B: Effective upon implementation of the automatic oil pricing formula under Section 8 of RA 8184.
Immediate Effect: The Executive Order shall take effect immediately upon signing.

Key Takeaways

Executive Order No. 365 establishes import duty rates for petroleum products and aligns with the objectives of RA 8180 and RA 8184.
A clear tariff schedule is provided, abolishing previous levies to streamline taxation.
The Order emphasizes the necessity of compliance with existing laws, ensuring the Bureau of Customs can effectively enforce these new duties.
The effectivity of various annexes is tied to specific legislative milestones, ensuring clarity on the timeline for implementation.