Tariff protection for sodium tripolyphosphate

The President acts upon the recommendation of the Board of Investments and under the powers vested by law.
The certification for tariff protection is made pursuant to Section 8(a) of Republic Act No. 5186 (Investment Incentives Act).
The Order’s tariff classification references Section 104 of Republic Act No. 1937, as amended by Presidential Decree No. 34.

The Board of Investments registered Polyphosphates Inc. to manufacture sodium tripolyphosphate as a preferred pioneer industry.
The Board’s studies support tariff protection because increased raw material costs require interim protection to make the project viable.
The tariff protection is intended to protect against competing imported items that drain foreign exchange resources.

The Order covers the importation of the articles identified by their tariff classification under Section 104 of Republic Act No. 1937, as amended by Presidential Decree No. 34.
Phosphates, hypophosphates and phosphates are covered under Tariff Heading No. 28.40.
Under Tariff Heading No. 28.40, articles not included in Subheading B are covered.
Under Tariff Heading No. 28.40, Sodium tripolyphosphates are covered under Subheading B.

For Tariff Heading No. 28.40 (Phosphates, hypophosphates and phosphates), Articles not included in Subheading B pay an ad val. 10% import duty.
For Tariff Heading No. 28.40 (Subheading B: Sodium tripolyphosphates), imports pay ad val. 30% import duty.
The increased customs duty on sodium tripolyphosphates is the form of post-operative tariff protection granted.

The tariff rates take effect thirty (30) days after the issuance of the Order.
After that 30-day period, all described articles entered or withdrawn from warehouses in the Philippines for consumption are assessed using the rates of import duty fixed in the Order.
The Order’s tariff rates apply on an entry/withdrawal for consumption basis after the effectivity period.

The post-operative tariff protection is subject to conditions that it remains effective at any time during its effectivity.
The post-operative tariff rate may be modified in accordance with Section 401 of the Tariff and Customs Code.
Tariff modification is allowed when financing exists and the existing conditions in the industry warrant such modification.

The Order contains a clear transition: after 30 days from issuance, imported items for consumption are assessed under the new duty rates.
The Order is implemented through the customs duty rates it sets for the covered tariff heading(s) and description(s).