Adjustment of Rates Upon Changes in Basic Philippine Rates
- If basic Philippine import duty rates on listed articles drop below concession rates, the lower rate automatically applies.
- Ensures the country benefits from the lowest applicable import duty.
Eligibility for Concession Rates
- Concession rates apply exclusively to GATT contracting parties and nations with active most-favored-nation (MFN) tariff agreements with the Philippines.
- Supports adherence to international trade agreements and commitments.
Tariff Rates on Articles in Annex B
- Articles listed in Annex B pay rates specified but shall not exceed the maximum tariff rate indicated.
- Provides a ceiling on import duties to prevent excessive tariff imposition.
Conditions on Subsequent Rate Changes for Annex B Articles
- Following basic rate reductions, import duties on Annex B articles automatically decrease.
- For rate increases:
- Import duties rise but not above the maximum concession rate.
- If increase surpasses concession rate, the concession rate is applied instead.
- Balances flexibility in tariff adjustments with adherence to agreed maximum rates.
Effective Application and Enforcement
- All relevant articles imported or withdrawn from warehouses for consumption after the order's effective date are subject to the prescribed rates.
- Ensures uniform enforcement starting January 1, 1980.
Effectivity
- The order takes effect beginning January 1, 1980.
- Signed by then-President Ferdinand E. Marcos and authorized official.
- Provides a clear implementation timeline for customs and trade authorities.