Law Summary
Definitions and Key Concepts
- Countervailing Duty: A tariff imposed to offset subsidies provided by foreign governments to their exporters, which cause injury to local industries.
- Subsidy: Financial assistance by a foreign government that confers a benefit to the recipient.
- The IRR clarifies terms used in RA 8751 to ensure uniform application and interpretation.
Procedures for Investigation and Determination
- Initiation: Investigation can be initiated based on complaints from domestic producers or on the Tariff Commission’s own motion.
- Filing of Petition: Must include detailed evidence of subsidy and injury.
- Verification: The Tariff Commission conducts an inquiry to verify subsidy and determine injury.
- Public Hearing: A hearing is held allowing interested parties to present evidence and arguments.
- Determination of Subsidy and Injury: Both subsidy and causal injury must be established for imposition.
Imposition and Collection of Countervailing Duty
- Countervailing duties are imposed on imported goods benefiting from unfair foreign subsidies.
- Rates are calculated to offset the subsidy margin.
- The Bureau of Customs is tasked with the collection of duties upon entry of goods.
- Duties collected are to be reported regularly to the appropriate authorities.
Roles and Responsibilities
- Tariff Commission: Lead agency for investigation, determination, and recommendation of countervailing duties.
- Bureau of Customs: Enforcement and collection of duties.
- Department of Trade and Industry (DTI) and Department of Agriculture (DA): Provide technical assistance and policy guidance.
- Department of Finance: Coordinates on revenue aspects.
Penalties and Enforcement
- Non-compliance with investigation procedures or payment of duties may result in penalties as prescribed by law.
- Enforcement mechanisms include administrative sanctions and possible referral for criminal prosecution.
Legal Authority and Administrative Oversight
- The IRR is issued jointly by key government departments including Trade and Industry, Agriculture, Finance, and the Tariff Commission.
- Ensures coordinated and integrated approach in administering countervailing duty laws.
- Signed and promulgated to provide legal clarity and operational guidelines for government agencies involved in trade remedy actions.