Article 168p. 168

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

article is not capable of being repaired locally: Provided,

That the cost of the repairs made to any such article shall

pay a rate of duty of thirty per cent ad valorem ;

y. Trailer chassis when imported by shipping companies

for their exclusive use in handling containerized cargo,

upon posting a bond in an amount equal to one and

one-half times the ascertained duties, taxes and other

charges due thereon to cover a period of one year from

the date of acceptance of the entry, which period for

meritorious

reasons

may

be

extended

by

the

Commissioner of Customs for another year, subject to the

following conditions:

1. That they shall be properly identified and registered

with the Land Transportation Commission;

2. That they shall be subject to customs supervision fee to

be fixed by the Collector of Customs and subject to the

approval of the Commissioner of Customs;

3. That they shall be deposited in the Customs zone when

not in use; and

4. That upon the expiration of the period prescribed

above, duties and taxes shall be paid, unless otherwise

re-exported.

The provisions of Sec. 105 of Presidential Decree No. 34,

dated October 27, 1972, to the contrary nothwithstanding,

any officer or employee of the Ministry of Foreign Affairs,

including any attache, civil or military, or member of his

staff assigned to a Philippine diplomatic mission abroad

by his Ministry or any similar officer or employee assigned

to a Philippine consular office abroad, or any personnel of

the

Reparations

Mission

in

Tokyo,

or

AFP

military

personnel

detailed

with SEATO or any AFP military

personnel accorded assimilated diplomatic rank on duty

abroad who is returning from a regular assignment

abroad, for reassignment to his Home office, or who dies,

resigns, or is retired from the service, after the approval of

this Decree, shall be exempt from the payment of all

duties and taxes on his personal and household effects,

including one motor car which must have been ordered

or purchased prior to the receipt by the mission or

consulate of his order of recall, and which must be

registered in his name: Provided, however, That this

exemption shall apply only to the value of the motor car

and to the aggregate assessed value of said personal and

household effects the latter not to exceed thirty per

centum (30%) of the total amount received by such

officer or employee in salary and allowances during his

latest assignment abroad but not to exceed four years:

Provided, further, That this exemption shall not be availed

of oftener than once every four years: And, Provided,

finally, That the officer or employee concerned must have

served abroad for not less than two years.

The provisions of general and special laws, including

those

granting

franchises,

to

the

contrary

notwithstanding,

there

shall

be

no

exemptions

whatsoever from the payment of customs duties except

those

provided

for

in

this

Code;

those

granted

to

government

agencies,

instrumentalities

or

government-owned

or

controlled

corporations

with

existing

contracts,

commitments,

agreements,

or

obligations

(requiring

such

exemption)

with

foreign

countries;

international

institutions,

associations

or

organizations

entitled

to

exemption

pursuant

to

agreements or special laws; and those that may be

granted by the President upon prior recommendation of

the National Economic and Development Authority in the

interest of national economic development.

SECTION 106. Drawbacks . —

(a) On Fuel Used for Propulsion of Vessels . — On all fuel

imported into the Philippines used for propulsion of

vessels engaged in trade with foreign countries, or in the

coastwise trade, a refund or tax credit shall be allowed not

exceeding ninety-nine (99) per cent of the duty imposed

by law upon such fuel, which shall be paid or credited

under such rules and regulations as may be prescribed by

the Commissioner of Customs with the approval of the

Minister of Finance.

(b)

On

Petroleum

Oils

and

Oils

Obtained

from

Bituminous

Minerals,

Crude

Eventually

Used

for

Generation of Electric Power and for the Manufacture of

City Gas . — On petroleum oils and oils obtained from

bituminous materials, crude oils imported by non-electric

utilities, sold directly or indirectly, in the same form or

after processing, to electric utilities for the generation of

electric power and for the manufacture of city gas, a

refund or tax credit shall be allowed not exceeding fifty

per cent (50%) of the duty imposed by law upon such oils,

which shall be paid or credited under such rules and

regulations as may be prescribed by the Commissioner of

Customs with the approval of the Minister of Finance.

(c) On Articles Made from Imported Materials . — Upon

exportation of articles manufactured or produced in the

Philippines, including the packing, covering, putting up,

marking or labeling thereof either in whole or in part of

imported materials for which duties have been paid,

refund or tax credit shall be allowed for the duties paid on

the imported materials so used including the packing,

covering, putting up, marking or labeling thereof, subject

to the following conditions:

1.

The

actual use of the imported materials in the

production or manufacture of the article exported with

their quantity, value, and amount of duties paid thereon,

having been established;

2. The duties refunded or credited shall not exceed

ninety-nine (99) per cent of duties paid on the imported

materials used;

3.

There

are

no

available

locally

produced

or

manufactured competitive substitutes for the imported

materials used at the time of importation as certified by

the National Economic and Development Authority;

4. The exportation shall be made within one (1) year after

the importation of materials used and the claim for

refund or the credit shall be filed within one (1) year from

date of exportation;

5. When two or more products result from the use of the

same imported materials, an apportionment shall be

made on its equitable basis.

(d) Payment of Partial Drawbacks . — The Minister of

Finance

may,

upon

recommendation

of

the

Commissioner

of

Customs,

promulgate

rules

and

regulations

allowing

partial

payments

of

drawbacks

under this section.

(e) Payment of the Drawbacks . — Claims for refund or tax

credit eligible for such benefits shall be paid or granted

by the Bureau of Customs to claimants within sixty (60)

days

after

receipt

of

properly

accomplished

claims:

Provided, That a registered enterprise under Republic Act

Numbered Fifty-one hundred and eighty-six or Republic

Act Numbered Sixty-one hundred and thirty-five which

has previously enjoyed tax credit based on customs

duties paid on imported raw materials and supplies, shall

not be entitled to drawback under this section, with

respect to the same importation subsequently processed

and re-exported: Provided, further, That if as a result of the

refund or tax credit by way of drawback of customs

duties, there would necessarily result a corresponding

refund or credit of internal revenue taxes on the same

importation, the Collector of Customs shall likewise certify

the same to the Commissioner of Customs who shall

cause the said refund or tax credit of internal revenue

taxes to be paid, refunded or credited in favor of the

importer, with advice to the Commissioner of Internal

Revenue.

TITLE II Administrative Provisions

PART 1 Bases of Assessment of Duty

SECTION 201. Basis of Dutiable Value . — The dutiable

value of an imported article subject to an ad valorem rate

© Compiled by RGL

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