Article 173p. 173

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

be

afforded

reasonable

opportunity

to

be

present,

produce evidence and to be heard. The Commission shall

also

hear

the

views

and

recommendations

of

any

government office, agency or instrumentality concerned.

The

Commission

shall

submit

their

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" 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

bases.

d. The Commissioner of Customs shall regularly furnish

the Commission a copy of all customs import entries as

filed in the Bureau of Customs. The Commission or its

duly authorized representatives shall have access to, and

the right to copy all liquidated customs import entries

and other documents appended thereto as finally filed in

the Commission on Audit.

e. The NEDA shall promulgate rules and regulations

necessary to carry out the provisions of this section.

f. 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 (10) per cent ad valorem which

shall take effect at the discretion of the President.

SECTION 402. Promotion of Foreign Trade . —

a. For the purpose of expanding foreign markets for

Philippine products as a means of assistance 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, is authorized from time to

time:

(1)

To

enter

into

trade

agreements

with

foreign

governments or instrumentalities thereof; and

(2) To 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, however,

That in modifying import duties or fixing import quota

the requirements prescribed in subsection "a" of Section

401

shall

be

observed:

Provided,

further,

That

any

modification of import duties and any fixing of import

quotas made pursuant to the agreement on ASEAN

Preferential Trading Arrangements ratified on August 1,

1977 shall not be subject to the limitations of the aforesaid

subsection "a" of Section 401.

b. The duties and other import restrictions as modified in

subsection "a" above, shall apply to articles 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 articles which are the growth, produce or

manufacture of such country because of acts (including

the operations of international cartels) or policies which in

his opinion tend to defeat the purposes set in this section;

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.

c. Nothing in this section shall be construed to give any

authority to cancel or reduce in any manner any of 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 any interested person may

have

an

opportunity

to

present

his

views

to

the

Commission which shall seek information and advice

from the Ministry of Agriculture, Ministry of Natural

Resources, the Ministry of Trade, Ministry of Tourism, the

Central Bank of the Philippines, the Ministry of Foreign

Affairs, the Board of Investments and from such other

sources as it may deem appropriate.

e.

(1) In advising the President, as a result of the trade

agreement entered into, the Commission shall determine

whether the domestic industry has suffered or is being

threatened with injury and whether the wholesale prices

at which the domestic products are sold are reasonable,

taking into account the cost of raw materials, labor,

overhead, a fair return on investment, and the overall

efficiency of the industry.

(2) The NEDA shall evaluate the report of the Commission

and submit recommendations to the President.

(3)

Upon receipt of the report of the findings and

recommendations

of

the

NEDA,

the

President

may

prescribe such adjustments in the rates of import duties,

withdraw, modify or suspend, in whole or in part, any

concession under any trade agreement, establish import

quota, or institute such other import restrictions as the

NEDA recommends to be necessary in order to fully

protect domestic industry and the consumers, subject to

the condition that the wholesale prices of the domestic

products concerned shall be reduced to, or maintained

at, the level recommended by the NEDA unless for good

cause shown, an increase thereof, as recommended by

the

NEDA,

is

authorized

by

the

President.

Should

increases be made without such authority, the NEDA

shall immediately notify the President, who shall allow

the importation of competing products in such quantities

as to protect the public from the unauthorized increase in

wholesale prices.

f. This section shall not prevent the effectivity of any

executive agreement or any future preferential trade

agreement with any foreign country.

g. The NEDA and the Commission are authorized to

promulgate

such

reasonable

procedure,

rules

and

regulations as they may deem necessary to execute their

respective functions under this section.

PART 4 Tariff Commission

SECTION 501. Chief Officials of the Tariff Commission . —

The

Officials

of

the

Tariff Commission shall be the

Chairman and two (2) Member Commissioners to be

appointed by the President of the Philippines.

SECTION

502.

Qualifications .

— No person shall be

eligible

for

appointment

as

Chairman

and

Tariff

Commissioners unless they are natural-born citizens of

the Philippines, of good moral character and proven

integrity, and who by experience and academic training

are possessed of qualifications requisite for developing

expert knowledge of tariff problems. They shall not,

during their tenure in office, engage in the practice of any

profession,

or

intervene

directly

or

indirectly in the

management or control of any private enterprise which

may, in any way, be affected by the functions of their

office

nor

shall

be,

directly

or

indirectly,

financially

interested in any contract with Government, or any

subdivision or instrumentality thereof.

SECTION

503.

Appointment

and

Compensation

of

Officials

and

Employees .

—

All

employees

of

the

Commission shall be appointed by the Chairman in

accordance with the Civil Service Law except the Private

Secretaries

to

the

Chairman,

Commissioners

and

Executive Director.

The Tariff Commission shall be reorganized in accordance

with the requirements of its reorganized functions and

responsibilites. The Chairman of the Commission, subject

to the approval of the Director General of the National

Economic and Development Authority, shall determine

the new positions-designations and salary scales of the

officials and employees of the Commission by taking into

account the degree of responsibility of each position:

© Compiled by RGL

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