Article 169p. 169

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

of duty shall be based on the home consumption value or

price (excluding internal excise taxes) of same, like or

similar articles, as bought and sold or offered for sale

freely in the usual wholesale quantities in the ordinary

course of trade, in the principal markets of the country

from where exported on the date of exportation to the

Philippines, or where there is none on such date, then on

the home consumption value or price nearest to the date

of

exportation

including the value of all containers,

coverings and/or packings of any kind and all other costs,

charges and expenses incident to placing the article in a

condition ready for shipment to the Philippines, plus ten

(10) per cent of such home consumption value or price.

The home consumption value or price under this section

shall be the value or price declared in the consular,

commercial, trade or sales invoice. Where there exists a

reasonable doubt as to the value or price of the imported

article declared in the entry, the correct dutiable value of

the article shall be ascertained from the reports of the

Revenue Attachè or Commercial Attachè (Foreign Trade

Promotion Attachè), pursuant to Republic Act Numbered

Fifty-four

hundred

and

sixty-six

or

other

Philippine

diplomatic officers and from such other information that

may be available to the Bureau of Customs.

From the data thus gathered, the Commissioner of

Customs

shall

ascertain

and

establish

the

home

consumption

values

of

articles

exported

to

the

Philippines and shall publish such lists of values from

time to time.

When the dutiable value provided for in the preceding

paragraphs cannot be ascertained for failure of the

importer to produce the documents mentioned in the

second paragraph, or where there exists a reasonable

doubt

as

to

dutiable

value

of the imported article

declared in the entry, it shall be the domestic wholesale

selling price of such or similar article in Manila or other

principal markets in the Philippines on the date the duty

becomes payable on the article under appraisement, on

the usual wholesale quantities and in the ordinary course

of trade, minus —

(a) Twenty (20) per cent thereof for expenses and profits;

and

(b) Duties and taxes paid thereon.

SECTION 202. Bases of Dutiable Weight. — On articles

that are subject to specific rate of duty, based on weight,

the duty shall be ascertained as follows:

a. When articles are dutiable by the gross weight, the

dutiable weight thereof shall be the weight of same,

together with the weight of all containers, packages,

holders and packing, of any kind, in which said articles are

contained, held or packed at the time of importation.

b. When articles are dutiable by the legal weight, the

dutiable weight thereof shall be the weight of same,

together with the weight of the immediate containers,

holders and/or packing in which such articles are usually

contained, held or packed at the time of importation

and/or, when imported in retail packages, at the time of

their sale to the public in usual retail quantities: Provided,

That when articles are packed in single container, the

weight of the latter shall be included in the legal weight.

c. When articles are dutiable by the net weight, the

dutiable weight thereof shall be only the actual weight of

the articles at the time of importation, excluding the

weight of the immediate and all other containers, holders

or packing in which such articles are contained, held or

packed.

d. Articles affixed to cardboard, cards, paper, wood or

similar common material shall be dutiable together with

the weight of such holders.

e. When a single package contains imported articles

dutiable according to different weights, or to weight and

value, the common exterior receptacles shall be prorated

and

the

different

proportions

thereof

treated

in

accordance with the provisions of this Code as to the

dutiability or non-dutiability of such packing.

SECTION 203. General Rules of Classification . — The

interpretation and application of the provisions of this

Code relating to the classification of articles imported

into the Philippines shall be governed by the following

principles:

RULE 1. The titles of schedules, chapters, and subchapters

are provided for ease of reference only; for legal purposes,

classification shall be determined according to the terms

of the headings or subheadings and any relative schedule

or

chapter

notes

and,

provided,

such

headings,

or

sub-headings

or

notes

do

not

otherwise

require,

according to the succeeding rules.

RULE 2. a. Any reference in a heading to an article shall be

taken to include a reference to that article incomplete or

unfinished, provided that, as imported, the incomplete or

unfinished, articles has the essential character of the

complete or finished article. It shall also be taken to

include a reference to that article complete or finished (or

falling to be classified as complete or finished by virtue of

this rule), imported unassembled or disassembled.

b Any reference in a heading or subheading to a material

or substance shall include a reference to mixtures or

combinations of that material or substance with other

materials or substances. Any reference to articles of a

given material or substance shall include a reference to

articles consisting wholly or partly of such material or

substance. The classification of articles consisting of more

than one material or substance shall be according to the

principles of Rule 3.

RULE 3. When articles are prima facie , classifiable under

two or more headings or subheadings, or imported in

sets consisting of several articles, classification shall be

effected as follows:

a. The heading or subheading which provides the most

specific

description

shall

be

preferred to any other

heading

or

subheading

providing

a

more

general

description.

b.

Mixtures and composite articles which consist of

different

materials

or

are

made

up

of

different

components and which cannot be classified by reference

to "3a" shall be classified as if they consisted of the

material or component which gives the articles their

essential character, insofar as this criterion is applicable.

c. When articles cannot be classified by reference to "3a"

or "3b" they shall be classified under the heading or

subheading which provides the highest rate of duty.

RULE

4.

Articles

not

falling

within

any heading or

subheading of this Code shall be classified under the

heading or subheading appropriate to articles to which

they are most akin.

SECTION 204. Rate of Exchange . — For the assessment

and collection of import duty upon imported articles and

for other purposes, the value and prices thereof quoted in

foreign currency shall be converted into the currency of

the Philippines at the current rate of exchange or value

specified or published, from time to time, by the Central

Bank of the Philippines.

SECTION 205. Effective Date of Rates Import Duty. —

Imported articles shall be subject to the rate or rates of

import duty existing at the time of entry, or withdrawal

from warehouse, in the Philippines, for consumption.

On and after the day when this Code shall go into effect,

all articles previously imported, for which no entry has

been made, and all articles previously entered without

payment

of duty and under bond for warehousing,

transportation, or any other purpose, for which no permit

of delivery to the importer or his agent has been issued,

shall be subject to the rates of duty imposed by this Code

and to no other duty, upon the entry, or withdrawal

thereof from warehouse, for consumption.

On articles abandoned or forefeited to, or seized by, the

government, and then sold at public auction, the rates of

duty and the tariff in force on the date of the auction shall

apply: Provided, That duty based on the weight, volume

and quantity of articles shall be levied and collected on

© Compiled by RGL

169 of 201