SSG Duty on Imported Onions under RA 8800

Republic Act No. 8800 authorizes safeguard measures through Chapter III, Sections 21 and 23 for the imposition of special safeguard (SSG) duty.
The imposition of SSG duty is tied to a price test where the agricultural product’s trigger price is breached.
The trigger price for onions is fixed at PHP 74.21 per kg. (published August 7, 2002).
The imposition is justified where the average c.i.f. import price for onion imports from January to July 2002 is PHP 6.55 per kg., which falls below the trigger price.
The order also points to increasing import behavior, including that monthly imports since March 2002 has been increasing and that volume of onion imports in 2001 is higher than the previous two years.

The order applies to imported onions specifically classified under HS Code 0703.1000.
The SSG duty applies on top of the regular customs duty of 50%.
The computation and collection of SSG duty are done per shipment.

The method for computing SSG duty is expressly anchored on Section 24(b) of Chapter III of Republic Act No. 8800.
The SSG duty is computed based on the price difference—the amount obtained after subtracting the c.i.f. import price from the trigger price.
The price difference ratio is computed with respect to the trigger price using [(TP − P) / TP].
The duty rate depends on where the price difference (PD) falls, measured as % of trigger price (TP), using the following bands and formulas:
If PD < or = 10%, then SSG duty = 0.00.
If 10 < PD < = 40%, then SSG duty = [30% x {PD − (10% x TP)}].
If 40 < PD < = 60%, then SSG duty = [50% x {PD − (40% x TP)}] + [30% x {PD − (10% x TP)}].
If 60 < PD < = 75%, then SSG duty = [70% x {PD − (60% x TP)}] + [50% x {PD − (40% x TP)}] + [30% x {PD − (10% x TP)}].
If PD > 75%, then SSG duty = [90% x {PD − (75% x TP)}] + [70% x {PD − (60% x TP)}] + [50% x {PD − (40% x TP)}] + [30% x {PD − (10% x TP)}].

The computation begins by determining the difference between the CIF Price (P) and the Trigger Price (TP).
The illustrative example uses P = PHP 6.55 per kg. and TP = PHP 74.21 per kg., giving TP − P = PHP 67.65.
The example computes the price difference ratio: [(74.21 − 6.55) / 74.21] = 91.17%.
Because 91.17% > 75%, the example applies the PD > 75% band.
The example computes the SSG duty as:
- 0.90 × [(74.21 − 6.55) − (0.75 × 74.21)]
- + 0.70 × [(74.21 − 6.55) − (0.60 × 74.21)]
- + 0.50 × [(74.21 − 6.55) − (0.40 × 74.21)]
- + 0.30 × [(74.21 − 6.55) − (0.10 × 74.21)]
The illustrated example results in an SSG duty of PHP 64.05, to be collected over and above the regular customs duty.

The order attaches Annex B presenting onion import volumes from 1999 to 2002, including the unit price levels used to show trends.
The order specifically references that 2001 import volume is higher than in the previous two years and that import levels increased monthly starting March 2002.
The annex shows 2002 volumes and values with unit prices, including:
- January 2002: 1,518,968 kg., unit price PHP 5.95
- February 2002: 116,347 kg., unit price PHP 6.28
- March 2002: 46,637 kg., unit price PHP 5.06
- April 2002: 120,000 kg., unit price PHP 4.79
- May 2002: 144,000 kg., unit price PHP 7.49
- June 2002: 552,000 kg., unit price PHP 8.18
- July 2002: 554,305 kg., unit price PHP 6.89
The order highlights the broader pattern culminating in the stated average c.i.f. import price for January to July 2002 of PHP 6.55 per kg.

The order requests the Commissioner of Customs to impose SSG duty on onion imports under HS Code 0703.1000.
The order requires the SSG duty collection to follow shipment-by-shipment determination.
The order requests that the imposition of SSG duty be made effective immediately.
The order frames the SSG duty as added to the existing 50% regular customs duty.