Purpose and Necessity of the Codification
- The original Tariff and Customs Code contained obsolete provisions due to subsequent amendments and executive issuances.
- Some provisions were found impractical requiring revision to adapt to evolving trade and commerce needs.
- The codification seeks to provide legal flexibility and strengthen penalties against smuggling and customs fraud.
Creation of the Tariff and Customs Code of 1978
- Section 1 establishes the Tariff and Customs Code of 1978 as an integrative legislative instrument.
- It embodies all existing tariff and customs-related laws, decrees, and executive orders into a single comprehensive Code.
- New amendments included within this Decree are also part of the Code.
Effectivity of the Code
- Section 2 provides that the Code takes effect immediately upon issuance.
- However, previously established timelines for effectivity of laws and amendments remain respected.
- Tariff rates previously set by executive orders are now considered statutory, except where rates were reduced to zero.
- In cases of zero-level rates, the tariff rates applicable before reduction will be regarded as statutory.
Legal Authority and Formal Execution
- The Decree is issued under the constitutional powers vested in the President of the Philippines.
- Signed by President Ferdinand E. Marcos and endorsed through the office of the Presidential Executive Assistant.
This statutory instrument serves as the foundational legal framework governing tariff classifications, customs regulations, and enforcement in the Philippines, unifying and updating fragmented customs laws into an effective and coherent code.