Basis of Dutiable Value Shift to Transaction Value

The Commissioner of Customs may require further explanations and documents if the declared value is doubtful.
If doubts persist, alternative methods for valuation apply in sequence:
1. Transaction value of identical goods sold for export to the Philippines at or about the exportation date.
2. Transaction value of similar goods sold for export under same conditions.
3. Domestic unit price of goods or identical/similar goods sold in greatest quantities to unrelated persons.
4. Computed value composed of:
  - Cost of raw materials.
  - Profit and general expenses based on sale of similar goods.
  - Freight, insurance, and transport expenses.
If still undetermined, valuation by other reasonable means consistent with GATT 1994 and Uruguay Round Final Act using available Philippine data.

Commissioner of Customs shall establish, publish, and update dutiable values regularly.
Values must be published in at least one newspaper of general circulation and other accessible media.
Importers or interested parties have 15 days to file protests against published values.
Commissioner must resolve protests within 15 days and publish the decision.

Importers may secure release of goods by filing a cash bond equal to duties and taxes plus 25% thereof.
Goods prohibited by law cannot be released under any circumstances.

Reasonable doubt refers to probable cause for doubting invoice value based on particular conditions (e.g., complex pricing, related parties influencing prices).
Related parties include officers, partners, employer-employee, stockholders with 5% or more ownership, direct or indirect control relationships, and family members.
Identical goods are the same in all respects including physical characteristics and quality; minor appearance differences are permissible.
Similar goods share characteristics and components enabling similar function and are commercially interchangeable; quality and trademark reputation are considered.

Until Congress authorizes the shift before January 1, 2000, dutiable value shall be based on export value in principal exporting country markets.
If export value is unavailable or doubtful, value from country of manufacture or a third country with similar development stage is used.
If still not determinable, domestic wholesale selling price in Metro Manila or principal local markets minus up to 25% for expenses and profits, and prior duties/taxes, applies.
Similar publication, protest, and bond provisions apply during this transitional valuation scheme.

Congress may, on the President's recommendation, enact a joint resolution to shift to transaction value basis before January 1, 2000 for national economic or security reasons.

The Secretary of Finance, advised by Commissioner of Customs, promulgates rules and regulations for the law's implementation.
Commissioner of Customs may delegate valuation and release authority to Collectors of Customs in absence of established published values, who must report to the Commissioner promptly.
Commissioner must then establish and publish correct values for future guidance.

Custom Commissioner shall create bodies to hear protests.
These bodies receive evidence and recommend decisions which are submitted in writing.
Decisions must be communicated to interested parties.
Interested parties can petition for review of published values to raise or lower them during their effectivity.

All inconsistent laws, decrees, executive orders, and related issuances are repealed or modified accordingly.
The law takes effect 15 days after complete publication in the Official Gazette or in at least two newspapers of general circulation, whichever comes first.