Article 172p. 172

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

(h) An ultimate purchaser, by reason of the character of

such article or by reason of the circumstances of its

importation must necessarily know the country of origin

of such article even though it is not marked to indicate its

origin;

(i) Such article was produced more than twenty years

prior to its importation into the Philippines; or

(j) Such article cannot be marked after importation

except at an expense which is economically prohibitive,

and the failure to mark the article before importation was

not due to any purpose of the importer, producer, seller

or shipper to avoid compliance with this section.

b. Marking of Containers . — Whenever an article is

excepted under subdivision (3) of subsection "a" of this

section

from

the

requirements

of

marking,

the

immediate container, if any, of such article, or such other

container

or

containers

of

such

article

as

may

be

prescribed by the Commissioner of Customs with the

approval of the department head, shall be marked in

such manner as to indicate to an ultimate purchaser in

the Philippines the name of the country of origin of such

article in any official language of the Philippines, subject

to all provisions of this section, including the same

exceptions as are applicable to articles under subdivision

(3) of subsection "a".

c. Marking Duty for Failure to Mark . — If at the time of

importation any article (or its container, as provided in

subsection "b" hereof), is not marked in accordance with

the requirements of this section, there shall be levied,

collected and paid upon such article a marking duty of 5

per cent ad valorem , which shall be deemed to have

accrued at the time of importation, except when such

article

is

exported

or

destroyed

under

customs

supervision and prior to the final liquidation of the

corresponding entry.

d. Delivery Withheld until Marked. — No imported article

held in customs custody for inspection, examination or

appraisement shall be delivered until such article and/or

its containers, whether released or not from customs

custody, shall have been marked in accordance with the

requirements of this section and until the amount of duty

estimated to be payable under subsection "c" of this

section shall have been deposited. Nothing in this section

shall be construed as excepting any article or its container

from the particular requirements of marking provided for

in any provision of law.

e. The failure or refusal of the owner or importer to mark

the articles as herein required within a period of thirty

days

after

due notice shall constitute as an act of

abandonment of said articles and their disposition shall

be governed by the provisions of this Code relative to

abandonment of imported articles.

SECTION 304. Discrimination by Foreign Countries . —

a. The President, when he finds that the public interest

will be served thereby, shall by proclamation specify and

declare new or additional duties in an amount not

exceeding one hundred (100%) per cent ad valorem upon

articles wholly or in part the growth or product of, or

imported in a vessel of, any foreign country whenever he

shall find as a fact that such country —

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

transportation in transit through or re-exportation from

such country of any article 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 articles 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 he

deems it consistent with the interests of the Philippines,

to

issue

a

further proclamation directing that such

product of said country or such articles imported in its

vessels as he shall deem consistent with the public

interests, shall be excluded from importation into the

Philippines.

c. Any proclamation issued by the President under this

section shall, if he deems it consistent with the interests

of the Philippines, extend to the whole of any foreign

country

or

may

be

confined

to

any subdivision or

subdivisions thereof; and the President shall, whenever

he deems the public interests require, suspend, revoke,

supplement or amend any such proclamation.

d. All articles 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

of

forfeiture

to

the

government by the tariff and customs laws. Whenever

the

provision

of

this

section

shall be applicable to

importation into the Philippines of articles wholly or in

part the growth or product of any foreign country, they

shall be applicable thereto, whether such articles are

imported directly or indirectly.

e. It shall be the duty of the Commission to ascertain and

at

all

times

to

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, together with recommendations.

f. The Minister of Finance shall make such rules and

regulations as are necessary for the execution of such

proclamation as the President may issue in accordance

with the provisions of this section.

PART 3 Flexible Tariff

SECTION 401. Flexible Clause . —

a. In the interest of national economy, general welfare

and/or national security, and subject to the limitations

herein prescribed, the President, upon recommendation

of the National Economic and Development Authority

(hereinafter referred to as NEDA), is hereby empowered:

(1) to increase, reduce or remove existing protective rates

of

import

duty

(including

any necessary change in

classification). The existing rates may be increased or

decreased but in no case shall the reduced rate of import

duty be lower than the basic rate of ten (10) per cent ad

valorem , nor shall the increased rate of import duty be

higher than a maximum of one hundred (100) per cent

ad valorem ; (2) to establish import quota or to ban

imports of any commodity, as may be necessary; and (3)

to impose an additional duty on all imports not exceeding

ten

(10)

per

cent

ad

valorem

whenever

necessary:

Provided, That upon periodic investigations by the Tariff

Commission and recommendation of the NEDA, the

President may cause a gradual reduction of protection

levels granted in Section One hundred and four of this

Code, 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 (10) per cent ad valorem , the Commission

shall conduct an investigation in the course of which they

shall hold public hearings wherein interested parties shall

© Compiled by RGL

172 of 201