Article 133p. 133

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

tariff classification of goods, until the plantilla positions

necessary

for

undertaking

such function have been

approved and filled-up: Provided, That such delegation of

function shall not extend beyond three (3) years from the

effectivity of this Act.

SECTION 1604. Reports of the Commission. — The

Commission shall place at the disposal of the President

and any Member of the Congress of the Philippines all

information

at

its

command.

It

shall

conduct such

investigation and submit reports as may be required by

the President and the Congress of the Philippines. It shall

likewise report to the President and Congress on the first

Monday of December of each year and hereafter, a

statement of methods adopted and a summary of all

reports made during the year.

SECTION 1605. Access to Documents and Assistance

to the Commission. — The Commission or its duly

authorized

representative

shall

have

access

to

any

document, paper or record pertinent to the subject

matter under investigation, in the possession of any

person, firm, copartnership, corporation, or association

engaged in the production, importation, or distribution of

goods under investigation, and shall have power to

summon witnesses, take testimony, administer oaths,

and

to

issue

subpoena

duces

tecum requiring the

production of books, papers, or documents relating to the

matter under investigation. The Commission may also

request the views, recommendations, and assistance of

any government office, agency, or instrumentality who

shall be expected to cooperate fully with the Commission.

SECTION 1606. Sworn and Verified Statements. —

The

Commission

may

order

the

taking

of

sworn

statements

at

any

stage

of

any

proceeding

or

investigation before it. The sworn statements must be

made before a person duly authorized to administer

oaths.

The

Commission

is

authorized

to

require

any

importer, grower, producer, manufacturer or seller to file

with the Commission a statement, under oath, giving the

selling

prices

in the Philippines of goods imported,

grown, produced, fabricated or manufactured by such

person.

SECTION

1607.

Implementing

Rules

and

Regulations. — The Commission shall promulgate and

adopt such rules and regulations as may be necessary to

carry out the provisions of this Act.

CHAPTER II Flexible Tariff

SECTION 1608. Flexible Clause. — (a) In the interest

of the general welfare and national security, and subject

to the limitations prescribed under this Act, the President,

upon

the

recommendation

of

the NEDA, is hereby

empowered to:

(1) Increase, reduce, or remove existing rates of import

duty including any necessary change in classification. The

existing rates may be increased or decreased to any level,

in one or several stages, but in no case shall the increased

rate of import duty be higher than a maximum of one

hundred percent (100%) ad valorem ;

(2) Establish import quotas or ban imports of any

commodity, as may be necessary; and

(3) Impose an additional duty on all imports not

exceeding

ten

percent

(10%)

ad

valorem

whenever

necessary: Provided, That upon periodic investigations by

the Commission and recommendation of the NEDA, the

President may cause a gradual reduction of rates of

import duty granted in Section 1611 of this Act, including

those subsequently granted pursuant to this section.

(b) Before any recommendation is submitted to the

President by the NEDA pursuant to the provisions of this

section, except in the imposition of an additional duty not

exceeding ten percent (10%) ad valorem, the Commission

shall conduct an investigation and shall hold public

hearings wherein interested parties shall be afforded

reasonable

opportunity

to

be

present,

to

produce

evidence and to be heard. The Commission shall also hear

the views and recommendations of any government

office, agency, or instrumentality. The Commission shall

submit its findings and recommendations to the NEDA

within thirty (30) days after the termination of the public

hearings.

(c) The power of the President to increase or decrease

rates of import duty within the limits fixed in subsection

(a) hereof shall include the authority to modify the form of

duty. In modifying the form of duty, the corresponding ad

valorem or specific equivalents of the duty with respect

to imports from the principal competing foreign country

for the most recent representative period shall be used as

basis.

(d) Any order issued by the President pursuant to the

provisions of this section shall take effect thirty (30) days

after promulgation, except in the imposition of additional

duty not exceeding ten percent (10%) ad valorem which

shall take effect at the discretion of the President.

(e) The power delegated to the President as provided

for in this section shall be exercised only when Congress

is not in session.

(f) The power herein delegated may be withdrawn or

terminated by Congress through a joint resolution.

The NEDA shall promulgate rules and regulations

necessary to carry out the provisions of this section.

SECTION 1609. Promotion of Foreign Trade. — (a) For

the purpose of expanding foreign markets for Philippine

products

as

a

means

of assisting in the economic

development of the country, in overcoming domestic

unemployment, in increasing the purchasing power of

the Philippine peso, and in establishing and maintaining

better

relations

between

the

Philippines

and

other

countries, the President, shall, from time to time:

(1)

Enter

into

trade

agreements

with

foreign

governments or instrumentalities thereof; and

(2) Modify import duties, including any necessary

change in classification and other import restrictions as

are required or appropriate to carry out and promote

foreign trade with other countries: Provided, That in

modifying import duties or fixing import quota, the

requirements prescribed in subsection (a) of Section 1608

of this Act shall be observed: Provided, however, That any

modification in import duties and the fixing of import

quotas pursuant to the various trade agreements the

Philippines has entered into, shall not be subject to the

limitations of aforesaid subsection (a) of Section 1608.

(b)

The

duties

and

other

import

restrictions as

modified in subsection (a) of this section, shall apply to

goods which are the growth, produce, or manufacture of

the

specific

country,

whether

imported

directly

or

indirectly, with which the Philippines has entered into a

trade

agreement:

Provided,

That the President may

suspend the application of any concession to goods

which are the growth, produce, or manufactured product

of the specific country because of acts or policies which

tend to defeat the purposes set in this section, including

the operations of international cartels; and the duties and

other import restrictions as negotiated shall be in force

and effect from and after such time as specified in the

order, without prejudice to the Philippine commitments

in any ratified international agreement or treaty.

(c) Nothing in this section shall be construed to give

any authority to cancel or reduce in any manner the

indebtedness of any foreign country to the Philippines or

any claim of the Philippines against any foreign country.

(d) Before any trade agreement is concluded with any

foreign

government

or

instrumentality

thereof,

reasonable public notice of the intention to negotiate an

agreement with such government or instrumentality

shall be given in order that interested persons may have

an opportunity to present their views to the Commission.

The Commission shall seek information and advice from

the DTI, DA, DOF, DENR, DFA and BSP, and from such

other sources as it may deem appropriate.

© Compiled by RGL

133 of 201