SSG Duty on Imported Onions under RA 8800

The Special Safeguard Duty is triggered when the import price breaches the published trigger price.
The trigger price for onions was set at PHP 74.21 per kilogram as of August 7, 2002.
The average cost, insurance, and freight (c.i.f.) import price of onions from January to July 2002 was PHP 6.55 per kilogram, significantly below the trigger price.
An increase in the volume of onion imports was noted, especially higher imports in 2001 compared to previous years, and rising monthly imports since March 2002.

The SSG duty is computed shipment by shipment, based on the price difference between the trigger price and the actual c.i.f. import price.
The price difference (PD) is calculated as the percentage difference between the trigger price (TP) and the c.i.f. price: PD = [(TP - P) / TP] * 100%.
The rate of SSG duty varies depending on the magnitude of the price difference in relation to the trigger price, following a tiered structure:
- PD ≤ 10%: No SSG duty.
- 10% < PD ≤ 40%: 30% of the amount exceeding 10% of TP.
- 40% < PD ≤ 60%: 50% of the amount exceeding 40% of TP plus the previous tier.
- 60% < PD ≤ 75%: 70% of the amount exceeding 60% of TP plus previous tiers.
- PD > 75%: 90% of the amount exceeding 75% of TP plus previous tiers.

An example is provided where the c.i.f. price is PHP 6.55/kg and the trigger price is PHP 74.21/kg.
Price difference ratio PD = 91.17% (exceeds 75% threshold).
Using the tiered system, the SSG duty is calculated by summing partial duties based on the layers of price difference.
The resulting SSG duty in the example amounts to PHP 64.05 per kilogram.
This duty is imposed over and above the regular customs duty.

Statistical data from 1999 to 2002 on volume and unit price of onion imports are provided.
There was a significant increase in imports in 2001 reaching 22,257,754 kg from 12,730,534 kg in 2000.
Monthly import volumes in 2002 reflect a trend of increase, particularly from March onwards.

The Department of Agriculture requested that the imposition of the SSG duty become effective immediately upon approval.

The Department of Agriculture, through its Secretary Leonardo Q. Montemayor, requested the imposition.
The Commissioner of the Bureau of Customs, Antonio M. Bernardo, is directed to enforce and collect the duty.
The Secretary of Finance, Jose Isidro N. Camacho, is involved as the coordinating authority on customs procedures.

The special safeguard measure seeks to protect domestic agricultural producers from import price depression caused by surges in imports at prices below a designated trigger price.
The mechanism follows provisions of the Safeguard Measures Act intended to balance trade liberalization with protection of domestic industries.

Safeguard duty is a trade remedy imposed temporarily to protect domestic industries.
Trigger price serves as a benchmark to determine when the safeguard duty should be applied.
The tiered duty rate creates a calibrated response based on how much the import price falls below the trigger price.
Duties are computed and collected on a shipment basis, ensuring responsiveness to actual import conditions.