Law Summary
Government Policy Rationale
- The government seeks to encourage the processing of traditional export products.
- Policies favor export of manufactured and semi-manufactured goods to add value locally.
- Recent improvements in world market prices have justified re-imposition of export taxes.
Legal Authority and Basis for Re-imposition
- The Executive Order is issued under the powers granted by Section 515 of PD No. 1464 (Tariff and Customs Code of 1978).
- The order reinstates export duties and premium duties on specified products.
Export Duty and Premium Duty Structure
- A basic export duty of 4% is imposed on all listed products.
- In addition, a premium duty is levied based on the difference between the current price and an established base price.
- The base price is initially set at 90% of the average Free On Board (FOB) export value as of December 1979.
- If current prices fall below the base price, only the basic export duty applies.
- Premium duty rates: 20% for gold, silver, copper ores/concentrates, and refractory chrome.
- Lumber and veneer also carry a 4% basic export duty, with premium duty specified as "a" which is subject to further clarification.
Price Monitoring and Adjustments
- The National Economic and Development Authority (NEDA) is tasked to periodically review and adjust base prices.
- Adjustments take into consideration cost conditions in various industries.
Special Provisions for Gold Sales
- Gold sold to the Central Bank is considered an export transaction.
- Such transactions are subject to both the export and premium duties.
- The Central Bank and Bureau of Customs are directed to enforce this provision.
Effectivity
- The order takes effect immediately upon issuance.
Legal Formalities
- Signed by President Ferdinand E. Marcos and Presidential Executive Assistant Jacobo C. Clave in Manila on March 11, 1980.