Clarification on Maling Luncheon Meat MAV Status

Department of Agriculture Administrative Order No. 1 (s. 1998) establishes the Rules and Regulation for the Implementation of the Agricultural Minimum Access Volumes (MAVs).
Section I.M.1 of DA Administrative Order No. 1 (s. 1998) provides the duty-collection rule when in-quota rates exist for a tariff line but no MAV quantities are listed in Annex I.
Under Section I.M.1, the Bureau of Customs shall collect duties based on the out-quota tariff rates when Annex I provides no MAV quantities for the particular tariff line.
The circular specifically applies that rule to HS code 1602 as the tariff category covering Maling luncheon meat.

Maling luncheon meat falling under HS code 1602 is treated as not included as MAV products for purposes of DA Administrative Order No. 1 (s. 1998).
Because Annex I of DA Administrative Order No. 1 (s. 1998) does not provide MAV quantities for HS code 1602 for Maling luncheon meat, the customs duty treatment follows Section I.M.1.
The circular therefore directs that the out-quota rate is applied as a matter of course for Maling luncheon meat under the MAV framework in DA Administrative Order No. 1 (s. 1998).

The circular references a two-tier duty treatment maintained through EO 313, incorporated into Section 104 of the Tariff and Customs Code of the Philippines (TCCP).
For Maling under TH 1602.4910, the in-quota duty rate is 30% ad valorem.
For Maling under TH 1602.4920, the out-quota duty rate is 60%.
The circular’s conclusion is that when the import does not fall within a MAV-quantity entitlement under the DA MAV rules, customs applies the higher out-quota rate.

The Bureau of Customs applies the out-quota tariff rates for Maling luncheon meat when the MAV condition tied to Annex I quantities is not met.
The circular issues the clarification for “information and guidance” to ensure consistent customs handling for HS code 1602 imports of Maling.
The circular frames its clarification around the question whether absence of MAV commitment eliminates the need for MAVIC and how that affects the applicable customs tariff rate tier.

The circular conveys a letter dated November 24, 1999 from Executive Director Sikatuna Z. Fonacier, MAV Management Committee, Department of Agriculture, acknowledging the Bureau’s request for clarification.
The November 24, 1999 communication states that, under DA Administrative Order No. 1 (s. 1998), the said products do not have MAV commitment and that Maling luncheon meat is not included as MAV products.
The circular also includes a letter dated November 17, 1999 from Commissioner Nelson A. Tan seeking clarification on how duty rates should be applied given the existence of the two-tier rates under EO 313/Section 104, TCCP and the asserted MAV status.
The Commissioner’s November 17, 1999 letter identifies two competing positions: (1) higher out-quota rate applies without MAVIC, and (2) lower in-quota rate may be available precisely because Maling has no MAV commitment—while the circular ultimately provides the DA clarification directing the out-quota application.