Law Summary

Introduction

Executive Order No. 436, issued on October 15, 1974, by President Ferdinand E. Marcos, modifies the import duty rates on certain articles as specified under Republic Act No. 1937, also known as the Tariff and Customs Code of the Philippines. This modification aims to support the government's policy of accelerating the sports program and development of sports within the country.

SECTION 1: Modification of Import Duty Rates

This section outlines the specific articles affected by the import duty rate changes and the corresponding rates.

• Legal Principle/Provision: The import duty rates for certain agricultural and golf course machinery are modified as follows:

• Key Definitions Introduced:

  • Tariff Heading No. 84.25: Refers to harvesting machinery and related equipment.

• Important Requirements or Procedures Outlined:

  • The articles listed must comply with the indicated tariff headings and their respective import duty rates.

• Import Duty Rates:

  • A. General Harvesting and Threshing Machinery: 10% Ad Valorem
  • B. Lawn Mowers (not agricultural): 50% Ad Valorem
  • C. Golf Course Equipment: 20% Ad Valorem for specific equipment including:
    • Greenmowers
    • Gangmowers
    • Sod Cutters
    • Top Dressers
    • Aerifying Machines
    • Other maintenance equipment and accessories

• Key Points:

  • The changes apply to a variety of equipment used for agricultural purposes and maintenance of golf courses.

SECTION 2: Effectivity of the Order

This section states the immediacy of the changes made by the executive order.

• Legal Principle/Provision: The order takes effect immediately upon issuance.

• Key Points:

  • No specific timeframe for implementation is stated; it is effective right away.

SECTION 3: Price Control Provision

This section addresses potential consequences related to local product pricing.

• Legal Principle/Provision: An unwarranted increase in the prices of local products that benefit from the tariff changes may result in the revocation of the tariff modifications.

• Key Points:

  • The government retains the authority to monitor pricing and ensure that tariff changes do not lead to price inflation in local markets.

Conclusion

This executive order reflects the government's initiative to promote sports through economic measures involving import duties. The specific duties are designed to facilitate the importation of essential equipment while safeguarding local markets from unjust price increases.

Key Takeaways

• Executive Order No. 436 modifies import duty rates for specific agricultural and golf course equipment.
• The rates include 10%, 50%, and 20% ad valorem based on the type of equipment.
• The order is effective immediately and includes provisions to control price increases of local products benefiting from these changes.
• Non-compliance with pricing controls may lead to the revocation of the tariff adjustments.