Legal basis and tariff rule
- Executive Order No. 478 is issued pursuant to the authority under Sections 104 and 401 of the Tariff and Customs Code of the Philippines, as amended.
- Section 1 imposes additional special duties that apply in addition to existing ad valorem rates on covered crude oil and oil products.
- Section 2 makes covered articles subject to these additional duties when entered for consumption or withdrawn from bonded warehouses in the Philippines.
Special duties imposed on imports
- Section 1 establishes a special duty of P0.95 per liter or P151.05 per barrel on imported crude oil under Hdg. No. 27.09.
- Section 1 establishes a special duty of P1.00 per liter on imported oil products under Hdg. Nos. 27.10 and 27.11, as applicable by classification and the specific subheadings listed.
- Section 1 imposes the special duties in addition to existing ad valorem rates imposed on the covered articles.
When the additional duties apply
- Section 2 provides that, upon effectivity, articles listed in Annex “A” are subject to the additional rates of duty prescribed when entered or withdrawn from warehouses in the Philippines for consumption.
- Section 2 limits the application to entries for consumption or withdrawals from warehouses for consumption.
Annex coverage: HS headings and rates
The additional duties are applied according to the specific HS/HDG classifications listed in Annex “A”.
HS 2709.00 00 (Petroleum oils… crude)
- 10% ad val. plus P0.95/liter or P151.05/barrel.
HS 2710.00 00 (Petroleum oils… other than crude; preparations… containing by weight 70% or more)
- 2710.00 10, 2710.00 20, 2710.00 40 shown in Annex as “— x x x” with the operative rates provided in corresponding subentries.
HS 2710.00 20 (Lubricating oil; basestock with special authorization by Energy Regulatory Board)
- 10% ad val. plus P1.00/liter.
HS 2710.00 30 (Fuel oils, naptha, low aromatic solvents)
- 2710.00 31 (Fuel oils): 10% ad val.
- 2710.00 32 (Naptha; with special authorization by Energy Regulatory Board): 10% ad val.
- 2710.00 33 (Other naptha): 10% ad val. plus P1.00/liter
- 2710.00 34 (Low aromatic solvents; with special authorization by Energy Regulatory Board): 10% ad val.
- 2710.00 35 (Other low aromatic solvents): 10% ad val. plus P1.00/liter
HS 2710.00 50 (Gas oils… kerosene… motor gasoline; other heavy oils)
- 2710.00 51 (Gas oils; with special authorization by Energy Regulatory Board): 20% ad val.
- 2710.00 59 (Other): 20% ad val. plus P1.00/liter
HS 2710.00 90 (Other oils and preparations)
- 20% ad val. plus P1.00/liter.
HS 2711 (Petroleum gases and other gaseous hydrocarbons)
- Liquefied
- 2711.11 00 (Natural gas): 10% ad val. plus P1.00/liter
- 2711.12 00 (Propane): 10% ad val. plus P1.00/liter
- 2711.13 00 (Butanes): 10% ad val. plus P1.00/liter
- 2711.14 00 (Ethylene, propylene butylenes and butadiene): 10% ad val. plus P1.00/liter
- 2711.19 00 (Other): 10% ad val. plus P1.00/liter
- In gaseous state
- 2711.21 00 (Natural gas): 10% ad val. plus P1.00/liter
- 2711.29 00 (Other): 10% ad val. plus P1.00/liter
- Liquefied
Implementation mechanics and effect on import duties
- Section 1 requires that the special duties be levied in addition to existing ad valorem rates for the covered tariff items.
- Section 2 requires customs treatment so that covered items entered or withdrawn from warehouses for consumption are assessed with the additional rates from Annex “A” upon the order’s effectivity.
- Section 3 sets the timing rule for enforceability: after thirty (30) days from publication in two (2) national newspapers.