Imposition of Special Safeguard Duty on Chicken

Republic Act No. 8800, referred to as the Safeguard Measures Act (covering Chapter III, Sections 21 and 23), provides the authority for imposing SSG measures.
The Order expressly anchors:
- The price-based SSG duty on the shipment-by-shipment approach tied to trigger breaches under RA 8800; and
- The volume-based SSG duty on the rule referenced as Chapter III, Rule 23.1.b of RA 8800.
The Order’s computation example uses the formula under Section 24 of Republic Act No. 8800.

The Order applies to chicken products identified by HS codes (2001) and their described product categories.
The Order covers the following price-based SSG duty HS-code entries:
- 0207.11 20 — Meat and offal of fowls of the species Gallus domesticus, not cut in pieces, fresh or chilled.
- 0207.12 20 — Meat of fowls of the species Gallus domesticus, not cut in pieces, frozen.
- 0207.14 12 — Livers of the species Gallus domesticus, frozen.
- 0207.14 92 — Other cuts and offal of fowls of the species Gallus domesticus, frozen.
- 1602.32 90 — Meat and offal of fowls of the species Gallus domesticus, prepared or preserved other than in airtight containers.
The Order covers the following volume-based SSG duty HS-code entry:
- 1602.32 10 — Meat and offal of fowls of the species Gallus domesticus, prepared or preserved in airtight containers.

For each price-based HS code listed, SSG duty is imposed on a shipment-by-shipment basis.
The shipment-by-shipment duty depends on the difference between the actual c.i.f. import price and the product’s trigger price.
The Order requests price-based SSG duty when either of the following occurs for the shipment:
- The product’s respective trigger price has been breached, or
- The actual c.i.f. import price of the product is less than its corresponding trigger price.
The amount of the price-based SSG duty is computed using the formula framework under Section 24 of Republic Act No. 8800, illustrated in Annex A.

For HS code 1602.32 10, SSG duty is requested when the trigger volume has been breached.
Alternatively, volume-based SSG duty is requested when the cumulative import volume for year 2002 has already exceeded its trigger volume.
The Order requests a fixed volume-based rate of 15% for the SSG duty.
The Order links the requested volume-based amount to one third of the applicable out-quota customs duty under Chapter III, Rule 23.1.b of RA 8800.
The Order requests that the volume-based SSG duty be effective immediately but up to the end of the year only.

Annex A provides an example for a price-based calculation for HS code 0207.14 12 (Livers of the species Gallus domesticus, frozen).
The example uses an actual c.i.f. price of 31.55 pesos per kg.
The example computes price difference as trigger price less current c.i.f. import price, producing a price difference of 392 pesos per kg from a trigger price of 423.55.
The example states the computed price difference is 93% of the trigger price and applies the Section 24 formula for price differences exceeding 75% of the trigger price.
The example formula applies tiered percentages to portions of the price difference:
- [90% x {price difference - (75% x trigger price)}]
- [70% x {price difference - (60% x trigger price)}]
- [50% x {price difference - (40% x trigger price)}]
- [30% x {price difference - (10% x trigger price)}]
The example results in an SSG duty of 379.59 pesos per kg, imposed over and above the regular out-quota customs duty.

The Order requests that the SSG duty on the specified chicken products be made effective immediately.
The Order requests that the volume-based SSG duty be effective immediately only up to the end of the year (for year 2002).
The Order frames the duty as additional to the regular out-quota customs duty for the illustrated computation in Annex A.
The Order limits the specific product coverage to the enumerated HS-code categories for chicken products and their described preparations under the HS codes listed.