Article 108p. 108

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

(100%) ad valorem upon goods wholly or in part the

growth or product of, or imported in a vessel of any

foreign country whenever the President shall find as a

fact that such country:

(1) Imposes, directly or indirectly, upon the disposition

or transportation in transit or through reexportation from

such country of any goods wholly or in part the growth or

product of the Philippines, any unreasonable charge,

exaction, regulation or limitation which is not equally

enforced upon the like goods of every foreign country; or

(2) Discriminates in fact against the commerce of the

Philippines, directly or indirectly, by law or administrative

regulation or practice, by or in respect to any customs,

tonnage, or port duty, fee, charge, exaction, classification,

regulation, condition, restriction or prohibition, in such

manner as to place the commerce of the Philippines at a

disadvantage

compared

with

the commerce of any

foreign country.

(b) If at any time the President shall find it to be a fact

that any foreign country has not only discriminated

against the commerce of the Philippines, as aforesaid,

but

has,

after

the

issuance

of

a

proclamation

as

authorized in subsection (a) of this section, maintained or

increased its said discrimination against the commerce of

the Philippines, the President is hereby authorized, if

deemed consistent with the interests of the Philippines

and of public interest, to issue a further proclamation

directing that such product of said country or such goods

imported in their vessels be excluded from importation

into the Philippines.

(c) Any proclamation issued by the President under

this section shall, if the President deems it consistent with

the interest of the Philippines, extend to the whole of any

foreign country or may be confined to any subdivision or

subdivisions thereof: Provided , That the President may,

whenever the public interest requires, suspend, revoke,

supplement or amend any such proclamation.

(d) All goods imported contrary to the provisions of

this section shall be forfeited to the government of the

Philippines and shall be liable to be seized, prosecuted

and condemned in like manner and under the same

regulations, restrictions, and provisions as may from time

to

time

be

established

for

the

recovery,

collection,

distribution,

and

remission

or

forfeiture

to

the

government by the tariff and customs laws. Whenever

the

provision

of

this

section

shall be applicable to

importations into the Philippines of goods wholly or in

part the growth or product of any foreign country, it shall

be applicable thereto, whether such goods are imported

directly or indirectly.

(e) It shall be the duty of the Commission to ascertain

and

at

all

times

be

informed

whether

any of the

discriminations against the commerce of the Philippines

enumerated in subsections (a) and (b) of this section are

practiced

by

any

country;

and

if

and

when

such

discriminatory acts are disclosed, it shall be the duty of

the Commission to bring the matter to the attention of

the President, and to recommend measures to address

such discriminatory acts.

(f) The Secretary of Finance shall make such rules and

regulations as are necessary for the execution of a

proclamation that the President may issue in accordance

with the provisions of this section.

TITLE VIII Tax and Duty Deferment, Preference

and Exemption

CHAPTER 1 Conditionally Tax and/or

Duty-Exempt Importation

SECTION

800.

Conditionally

Tax

and/or

Duty-Exempt Importation. — The following goods shall

be exempt from the payment of import duties upon

compliance

with

the

formalities

prescribed

in

the

regulations

which

shall

be

promulgated

by

the

Commissioner with the approval of the Secretary of

Finance: Provided , That goods sold, bartered, hired or used

for purposes other than what they were intended for and

without prior payment of the duty, tax or other charges

which would have been due and payable at the time of

entry if the goods had been entered without the benefit

of this section, shall be subject to forfeiture and the

importation shall constitute a fraudulent practice against

customs laws: Provided, however , That a sale pursuant to

a judicial order or in liquidation of the estate of a

deceased person shall not be subject to the preceding

proviso, without prejudice to the payment of duties, taxes

and other charges: Provided, further , That the President

may, upon the recommendation of the Secretary of

Finance, suspend, disallow or completely withdraw, in

whole or in part, any conditionally free importation under

this section:

(a) Aquatic products such as fishes, crustaceans,

mollusks, marine animals, seaweeds, fish oil, roe, caught

or gathered by fishing vessels of Philippine registry:

Provided , That they are imported in such vessels or in

crafts attached thereto: Provided, however , That they

have not been landed in any foreign territory or, if so

landed,

that

they

have

been

landed

solely

for

transshipment

without

having

been

advanced

in

condition;

(b) Equipment for use in the salvage of vessels or

aircrafts, not available locally, upon identification and the

giving of a security in an amount equal to one hundred

percent (100%) of the ascertained duties, taxes and other

charges thereon, conditioned for the exportation thereof

or payment of corresponding duties, taxes and other

charges

within

six

(6)

months

from

the

date

of

acceptance of the goods declaration: Provided , That the

Bureau may extend the time for exportation or payment

of

duties,

taxes

and

other

charges for a term not

exceeding six (6) months from the expiration of the

original period;

(c) Cost of repairs, excluding the value of the goods

used, made in foreign countries upon vessels or aircraft

documented, registered or licensed in the Philippines,

upon proof satisfactory to the Bureau: (1) that adequate

facilities

for

such

repairs

are

not

afforded

in

the

Philippines; or (2) that such vessels or aircrafts, while in

the

regular

course

of

their

voyage

or

flight,

were

compelled by stress of weather or other casualty to put

into a foreign port to make such repairs in order to secure

the safety, seaworthiness, or airworthiness of the vessels

or

aircrafts

to

enable

them

to

reach

their port of

destination;

(d) Goods brought into the Philippines for repair,

processing or reconditioning to be reexported upon

completion of the repair, processing or reconditioning:

Provided , That the Bureau shall require security equal to

one hundred percent (100%) of the duties, taxes and other

charges thereon, conditioned for the exportation thereof

or payment of the corresponding duties, taxes and other

charges

within

six

(6)

months

from

the

date

of

acceptance of the goods declaration;

(e) Medals, badges, cups, and other small goods

bestowed as trophies or prizes, or those received or

accepted as honorary distinction;

(f)

Personal

and

household effects belonging to

returning

residents

including

household

appliances,

jewelry, precious stones, and other goods of luxury which

were formally declared and listed before departure and

identified under oath before the District Collector when

exported

from

the

Philippines

by

such

returning

residents upon their departure therefrom or during their

stay abroad; personal and household effects including

wearing apparel, goods of personal adornment, toilet

goods,

instruments

related

to

one's

profession

and

analogous

personal

or

household

effects,

excluding

luxury items, vehicles, watercrafts, aircrafts and animals

purchased

in

foreign

countries

by

residents

of

the

Philippines

which

were

necessary,

appropriate,

and

normally used for their comfort and convenience during

© Compiled by RGL

108 of 201