TC CITIZEN’S CHARTER Revised November 2014 FOREWORD Through this Citizen‟s Charter, the Tariff Commission, or TC, aims to give its stakeholders a better understanding and appreciation of its functions and responsibilities mandated by laws. This Charter likewise aims to provide them with precise information on its frontline services, documentary requirements, fees, and service standards for every transaction, to promote faster and transparent service. This Citizen‟s Charter consists of three (3) parts, thus: Part I – Overview deals with general information about the Commission, its Vision/Mission Statements, a brief historical background dating back to June 20, 1953 when the first Philippine Tariff Commission was established under Republic Act No. 911, the present set-up and organizational structure of the Commission under Executive Order 366, its publications, the innovative Philippine Tariff Finder and improved TC website, fees and charges, inquiries and complaints, and the Commission‟s Service Pledge and Commitments. Part II – Mandate tackles the Commission‟s functions under the Tariff and Customs Code, as amended, namely: Modification of Duties, Promotion of Foreign Trade, Tariff Commodity Classification, and Assistance to the President and Congress. It also discusses the additional major responsibilities of the Commission as a quasi-judicial body under the following legislations related to its core work: R.A. 8752 (Anti-Dumping), R.A. 8751 (Countervailing Duty), and R.A. 8800 (Safeguard Measure). Part III – Annexes show the step-by-step procedures in availing of the Commission‟s services, Commission Forms, the schedule of fees and charges, and the Commission directory. If our stakeholders, after reading this 2014 edition of our Citizen‟s Charter, gain a better appreciation of the role played by the Commission in implementing trade and tariff policies of the government, then the reason for its publication will have been achieved. EDGARDO B. ABON Chairman i TC CITIZEN’S CHARTER Revised November 2014 Table of Contents I. The Philippine Tariff Commission: An Overview 1 Vision/Mission Service Pledge & Commitments „ Historical Background Rationalization Plan under E.O. 366 Organizational Chart Education and Information Publications Philippine Tariff Finder / Website Fees and Charges Inquiries and Complaints Liaison 2 3 4 5 6 6 7 7 8 8 8 II. The Philippine Tariff Commission: Its Mandate 9 Provisions of the Tariff and Customs Code of the Philippines 9 Section 401– Flexible Clause (Modification of Duty) Section 402 – Promotion of Foreign Trade Section 1313a – Tariff Commodity Classification Section 506 – Assistance to the President and Congress 9 10 11 12 Trade Remedy Laws 13 R.A. 8752 (s. 1999) – Anti-Dumping Act of 1999 R.A. 8751 (s. 1999) –Countervailing Duty Act of 1999 R.A. 8800 (s. 2000) –Safeguard Measures Act 13 15 17 Annexes “A” “B” “C” “D” “E” Steps in Applying for: (1) Tariff Modification Under Section 401 and (2) Withdrawal/Suspension of Tariff Concessions Under Section 402 Steps in Applying for: (1) Tariff Commodity Classification Rulings, For Imports and (2) Tariff Classification Opinions, For Exports Steps in the Formal Investigation Process for Petitions for Trade Remedy Measures Under: (1) R.A. 8751, (2) R.A. 8752, and (3) R.A. 8800 Schedule of Fees and Charges Tariff Commission Directory 19 20 21 22 23 ii TC CITIZEN’S CHARTER Revised November 2014 I. THE PHILIPPINE TARIFF COMMISSION: AN OVERVIEW The Tariff Commission (TC) is a key adviser to the executive and legislative branches of government on tariff and related matters, is an independent adjudicatory body on trade remedy cases, and an advocate of industry competitiveness and consumer welfare. Under the Tariff and Customs Code of the Philippines (TCCP), as amended, the Tariff Commission is mandated to: a) develop, formulate and recommend tariff policies and programs consistent with national economic objectives; b) enforce and administer the tariff provisions of the Tariff and Customs Code; c) investigate and decide on cases of unfair trade practices of dumping and subsidization; d) investigate and recommend safeguard action in cases of injurious import surges under fair trade practice conditions; e) determine contestability of local/foreign markets in the economy. The Commission is one of the member agencies of the Tariff and Related Matters (TRM) Committee involved in recommending to the President a continuous program for the country‟s tariff structure.1 Under Executive Order (E.O.) 143 (Instituting Effective Operational Mechanisms and Strategies in the Tariff Commission) dated August 21, 1999, the following functions of the Commission are strengthened and emphasized: a) institutionalization and acceleration of economic reforms to raise levels of competition, encourage economic efficiency, and improve consumer welfare; b) intensification of all measures to strengthen Philippine trade relations with all other countries, economies, and institutions in the international community; c) provision of trade assistance and facilitation to domestic industry; d) investigation of anti-dumping practices of foreign industries affecting the Philippine economy, and expedite the fair and thorough adjudication of all cases involving trade measures; e) reinforcement of all research activities that study levels of competition and contestability in our economy and monitor the trade practices and activities of all other countries, economies, and institutions in the international community; and 1 Executive Order No. 230 s. 1987 -1- TC CITIZEN’S CHARTER Revised November 2014 f) conduct of a continuing program of advocacy to promote new developments in international trade and tariff policy. Under the Commission‟s approved Rationalization Plan pursuant to E.O. 366 dated October 4, 2004, the re-invented Tariff Commission has the following strengthened functions in the light of a more liberal trading environment: a) tariff code implementation; b) trade remedies implementation; c) promotion and acceleration of global competitiveness of Philippine industries; d) active involvement in foreign trade and tariff negotiations areas due to changes in the global trading system, the Philippine commitments under the WTO, APEC, ASEAN, WCO and other international trade fora, and the Philippines‟ own unilateral tariff reform program. Vision The Tariff Commission shall be the principal and independent authority on tariff and trade remedy measures to enhance industry competitiveness and promote consumer welfare. Mission The Tariff Commission, a key adviser to the executive and legislative branches of government on tariff and related matters, an independent adjudicatory body on trade remedy cases and an advocate of a strong competition law and policy, remains committed to the pursuit of good and effective governance. In the conduct of public hearings and consultations, we commit ourselves to balance with objectivity the interests of our stakeholders, including consumers. The Commission remains committed to investigate and adjudicate trade remedy cases in an expeditious and judicious manner. Where our competence in tariff commitments is required in relation to international trade, we work harmoniously with other agencies in promoting the national interest. We endeavour to secure the best for our staff, to hone their skills and develop to the fullest their potentials even as we instil in them the values of honesty, dignity and the pride inherent in working for our country and people. -2- TC CITIZEN’S CHARTER Revised November 2014 The Tariff Commission discharges its duties and responsibilities with utmost competence and efficiency as a model of excellence and integrity in government service. Service Pledge and Commitments The Tariff Commission is committed to adopt programs and operational strategies to best promote the growth of efficient, self-reliant, innovative and globally competitive Philippine industries. In assessing the feedback by which the Commission can evaluate its relevance and effectiveness, the views and positions ventilated by concerned stakeholders – industries and consumers – during public hearings and consultations shall always merit judicious consideration. As a quasi-judicial body on laws providing domestic industries with the “safety nets” against the unfair trade practices of dumping and foreign subsidization, the Commission will do its level best to be true to this mandate. The investigation of injurious import surges under fair trade conditions will be done with the same zeal and commitment to ensure that our recommendations will be in the public interest. In the performance of our functions on trade remedy laws, we shall see to it that our tasks are carried out in accordance with Philippine obligations under the pertinent WTO Agreements and with regard to due process of law. Cognizant of the sensitive nature of our functions, we, the Commission staff, will discharge our duties in accordance with the core values of competence, professionalism, commitment, and most of all, integrity. We shall not only endeavor to maintain the integrity of this agency but also to check any contrary perception that may threaten to diminish the public‟s faith in us. In the international front, we remain convinced that the conduct of foreign relations for economic development is a major and necessary tool. We shall wield this tool, in collaboration with other agencies, to intensify our efforts to buttress and sustain our trade relations with the rest of the world, particularly in multilateral and regional trading arrangements where we shall actively promote the national interest. Confronted with rapid technological change, we shall adopt programs aimed at continuously upgrading the capability and knowledge of those who constitute this agency. In these programs, we shall ensure that as we hone their skills, we also nurture their intellect, vision and moral values. We affirm our strict compliance with government‟s call for no less than the diligent discharge of our responsibilities. We shall heed this summons in the age-old tradition of faithful adherence to the highest ethical standards of public service. In abiding by these commitments, we aim to demonstrate not only the true meaning of public service. We also aim to display the strength of our nation and our race through our government‟s unrelenting efforts to push the nation towards the frontiers of globalization and sustainable and inclusive economic progress. -3- TC CITIZEN’S CHARTER Revised November 2014 Historical Background Date June 20, 1953 Milestone First Philippine Tariff Commission (TC) was established (Republic Act No. 911) Headed by a Collegial Body consisting of a Chairman and two (2) Commissioners August 17, 1953 1956 1957 Under the supervision of the Office of the President TC officials and employees took their oaths of office TC Foundation Day TC was reorganized and became a division of the Department of Finance under the special provisions of the General Appropriations Act of 1956 TC was re-established under the Tariff and Customs Code of the Philippines (R.A. 1937) as an independent body Headed by a Commissioner and an Assistant Commissioner 1972 1975 1987 April 01, 2000 Under the supervision of the Office of the President TC was reconverted into a Collegial Body consisting of a Chairman and two (2) Member-Commissioners (under Presidential Decree No. 1) Under the supervision of the National Economic and Development Authority (NEDA) By virtue of President Marcos‟ directive to Dr. Manuel Alba, Deputy Director General (NEDA) and concurrent TC Chairman, the Commission was reorganized to a functional set-up. Reorganization – E.O. 292 (Administrative Code of 1987) The set-up is from functional to sectoral: Agricultural & Food Division Machineries and Transportation Division Chemicals Division Textile and Paper Division Metals and Non-Metals Division Effectivity of TC reorganization pursuant to E.O. 143 (Instituting Effective Operational Mechanisms and Strategies in the Tariff Commission) Headed by a Collegial Body consisting of a Chairman and two (2) Member- Commissioners Shifted from a sectoral to a functional set-up Remains as an attached agency of NEDA -4- TC CITIZEN’S CHARTER Date September 23, 2008 Revised November 2014 Milestone Rationalization Plan under E.O. 366 Headed by a Collegial Body consisting of a Chairman and two (2) Member-Commissioners Two (2) Services created: Finance, Management and Administrative Service (FMAS); and Research, Investigation and International Trade Analysis Service (RIITAS) Each Service is headed by a Director III. A Director II assists the Director III in the RIITAS. Remains under the supervision of NEDA Rationalization Plan Under Executive Order 366 A. Function The Tariff Commission Rationalization Plan under E.O. 366 was approved on September 23, 2008. The functions of the Commission were strengthened in the light of a more liberal trading environment. Such functions include (a) Tariff Code implementation; (b) Trade remedies implementation; and (c) Promotion of fair competition. B. Organizational Structure Consistent with the general nomenclature used for agencies headed by a Chairman, the Chairman and Member-Commissioners as a collegial body is renamed Office of the Chairman. There are two (2) services: Finance, Management and Administrative Service (FMAS); and Research, Investigation and International Trade Analysis Service (RIITAS). Each service is headed by a Director III. A Director II assists the Director III in the RIITAS. The FMAS has three (3) divisions, namely: (1) Administrative Division; (2) Financial Management Division; and (3) Planning, Management and Information Systems Division. The RIITAS comprises four (4) divisions, namely: (1) Commodities Studies Division; (2) Economics, Trade and Industry Studies Division; (3) Financial Studies Division; and (4) International Trade Studies Division. -5- TC CITIZEN’S CHARTER Revised November 2014 Organizational Chart Education and Information Education and information activities play a vital role in the Commission‟s work. To ensure information reaches the widest audience possible, TC uses a variety of methods including publications, the Internet, regional public information campaigns, and in-house seminars and workshops. The Commission devotes considerable resources to programs and activities designed to improve public awareness of the provisions of the Tariff and Customs Code and the latest developments in trade and tariff policy. -6- TC CITIZEN’S CHARTER Revised November 2014 Publications The Commission has a range of publications on tariff and related matters. The Commission publishes an updated Tariff and Customs Code (Volumes 1 and 2); A Primer on Developments in Tariff and Trade Policy; Compendium of Tariff Commodity Classification (TCC) Rulings; and Alphabetical Index. The Commission also distributes the Philippine Standard Commodity Classification (PSCC) Code book. For the list of all current publications, please get in touch with the Planning, Management and Information Systems Division of the Commission at (02) 929-19-05, or visit the Commission‟s website. There is a charge at minimal cost for the publications. Philippine Tariff Finder / Website The Philippine Tariff Finder (PTF) was developed by the Tariff Commission as an online frontline service to facilitate the public‟s need for quick and accurate information on Philippine tariff rates. Available free of charge and requiring only Internet connection, this facility houses all eight (8) tariff schedules of the Philippines, based on the latest tariff nomenclature, and enables the user to find Philippine tariff rates on specific products simply by typing in keywords or ASEAN Harmonized Tariff Nomenclature (AHTN) Codes. Through the PTF, the Commission tries to provide quicker access to a crucial information resource necessary for Philippine businesses to prosper in a flat, highly competitive world. The URL is: http://www.tariffcommission.gov.ph/tariff_finder. The Commission‟s website is updated regularly to make new and sought-after information available quickly to the public. The URL is: http://www.tariffcommission.gov.ph. -7- TC CITIZEN’S CHARTER Revised November 2014 Fees and Charges There are fees the Commission is charging for applications under Sections 401, 402 and 1313a of the TCCP and for formal investigations conducted pursuant to Republic Acts 8751, 8752 and 8800. TC Administrative Order No. 14-098 issued in November 2014 provides the Schedule of Fees and Charges (Annex “D”). Inquiries and Complaints The Commission welcomes inquiries on technical matters concerning tariff and related matters as well as complaints from its stakeholders about what they perceive to be the lapses and shortcomings of the Commission staff. TC technical personnel are available during office hours for consultations and advice.2 The public can contact the Commission by phone, fax, e-mail, snail mail, or in person. Please refer to the Commission directory for contact details (Annex “E”). If the staff cannot help, they will refer the appropriate government department or agencies to contact or other options that may be available. There is no fee or charge for making a complaint or inquiry. Liaison The Commission has extensive links, both formal and informal, with other government departments and agencies dealing on common policy areas, as well as business, professional and consumer organizations and bodies. There has been a considerable strengthening of links with the Philippine Mission in Geneva and the ASEAN and APEC Secretariats. 2 A designated Officer-of-the-Day (OD) is stationed at the lobby during office hours (including lunch break) to assist visitors and directing them to the concerned technical staff. -8- TC CITIZEN’S CHARTER Revised November 2014 II. THE PHILIPPINE TARIFF COMMISSION: ITS MANDATE The Commission‟s mandate is provided by (1) relevant provisions of the Tariff and Customs Code of the Philippines (TCCP), as amended, and (2) trade remedy laws Republic Acts 8751, 8752, and 8800. Provisions of the Tariff and Customs Code of the Philippines The Tariff Commission is mandated to discharge its duties and responsibilities under the following provisions of the TCCP, as amended. Section 401 – Flexible Clause (Modification of Duty) 1. What is Section 401 of the Tariff and Customs Code of the Philippines, as amended? Section 401 of the Tariff and Customs Code provides the legal basis by which the President may: (1) change the level and form of import duties, (2) impose an import quota or ban imports, and (3) levy an additional duty on all imports. 2. Who can file a Section 401 petition for tariff modification? Any interested party, including domestic manufacturers, importers, exporters, customs brokers, and government agencies, may file a Section 401 petition for tariff modification. The Commission conducts investigations on the petitions it receives during which public hearings are held to afford interested parties reasonable opportunity to present their views. The Commission submits its findings and recommendations to NEDA, which then schedules these for deliberation by the Tariff and Related Matters (TRM) Technical and Cabinet Committees. Final approval is granted by the NEDA Board after which, the Commission prepares the implementing Executive Order. 3. What is the procedure for filing a Section 401 petition for tariff adjustment? A petitioner is required to accomplish Tariff Commission Form 3 (Request for Tariff Modification), which is available at the Commission and downloadable from its website, in fillable format. 4. Are there any fees to be paid by petitioners? Petitions found to be meritorious under Section 401 are subject to a Filing Fee of Five Thousand Pesos (P5,000.00) and a Legal Research Fund Fee of Fifty Pesos (P50.00), per tariff heading, which is collected prior to the conduct of public hearing. -9- TC CITIZEN’S CHARTER Revised November 2014 Petitioners also share in the publication cost of the Commission‟s Notice of Public Hearing (which is published in two newspapers of general circulation). A petitioner‟s share in the publication cost is based on the number of products he is petitioning for tariff modification and subject of the public hearing. 5. What is the timetable for completion of a Section 401 investigation? The Commission completes its investigation and submits its report of findings and recommendations to NEDA within thirty (30) days after the termination of the public hearing. 6. How does one file a petition for tariff modification under Section 401? The step-by-step procedure in applying for tariff modification under Section 401 is shown in Annex “A”. Said procedure is posted at the lobby of the Commission‟s office at the 5th floor of the Philippine Heart Center Building. Section 402 – Promotion of Foreign Trade 1. What is Section 402 of the Tariff and Customs Code of the Philippines, as amended? Section 402 of the Tariff and Customs Code provides the legal basis by which the President may enter into trade agreements with foreign governments and modify import duties and other import restrictions as part of these trade agreements. 2. Who can file and what are the filing procedures under Section 402 for petitions for tariff modification and withdrawal/suspension of concessions under international trading arrangements? Interested parties may file their petitions under Section 402 with the Tariff Commission. A petitioner is required to accomplish TC Form 4 (Request for Withdrawal/Suspension of Tariff Concession) which is available at the Commission and downloadable from its website. The Commission conducts investigations on the petitions it receives during which public hearings are held to afford interested parties reasonable opportunity to present their views. The Commission submits its findings and recommendations to NEDA, which then schedules these for deliberation by the Tariff and Related Matters (TRM) Technical and Cabinet Committees. Final approval is granted by the NEDA Board after which, the Commission prepares the implementing Executive Order. 3. Are there any fees to be paid by petitioners? Petitions found to be meritorious under Section 402 are subject to a Filing Fee of Five Thousand Pesos (P5,000.00) and a Legal Research Fund Fee of Fifty Pesos (P50.00), per tariff heading, which is collected prior to the conduct of public hearing. - 10 - TC CITIZEN’S CHARTER Revised November 2014 Petitioners also share in the publication cost of the Commission‟s Notice of Public Consultation which is published in two (2) newspapers of general circulation. A petitioner‟s share of the publication cost is based on the number of products he is petitioning for withdrawal/suspension of tariff concession and subject of the public consultation. 4. What is the timetable of a Section 402 investigation? Tariff Modification The Commission completes its investigation and submits its Report of Findings and recommendations to NEDA within thirty (30) days after the termination of the public consultation. Withdrawal or Suspension of Tariff Concessions Taking into account unforeseen difficulties that stakeholders may face as the Philippines implements its international tariff commitments, the Commission investigates and submits its Report of Findings and recommendations to NEDA within sixty (60) days from receipt of a properly documented petition. Commission Order No. 02-01 provides the rules and regulations governing the conduct of the Commission‟s formal investigation on the withdrawal and/or suspension of concessions under Section 402. 5. How does one file a petition for withdrawal/suspension of tariff concessions under Section 402? The step-by-step procedure in applying for withdrawal/suspension of tariff concessions under Section 402 is shown in Annex “A”. Said procedure is posted at the lobby of the Commission‟s office at the 5th floor of the Philippine Heart Center Building. Section 1313a – Tariff Commodity Classification 1. What is Section 1313a of the Tariff and Customs Code of the Philippines, as amended? The tariff nomenclature in Section 104 (Rates of Import Duty) of the TCCP, as amended, is currently based on the 2012 version of the ASEAN Harmonized Tariff Nomenclature (AHTN). Section 1313a of the TCCP, as amended, provides that when an article imported or intended to be imported is not specifically classified in the TCCP, the interested party may request the Tariff Commission in writing to indicate the heading number under which the article is or shall be dutiable. - 11 - TC CITIZEN’S CHARTER 2. Revised November 2014 What are the requirements to obtain a Tariff Commodity Classification (TCC) Ruling, for import products, and a Tariff Classification Opinion, for export products? The applicant shall submit to the Commission a duly accomplished TC Form 1 (Request for Tariff Classification Ruling), or TC Form 2 (Request for Tariff Classification Opinion for Export Product), in three (3) copies and duly notarized, certifying that the sample(s), catalogue(s), brochure(s), and/or technical descriptions being submitted are true and correct and relate to subject article and that the applicant will submit additional information required within ten (10) working days after receipt of a letter from the Commission. TC Forms 1 and 2 are available at the Commission and downloadable from the Commission‟s website, in fillable format. The applicant shall also submit samples of the product, technical brochures/catalogues, technical specifications, or chemical compositions together with the duly accomplished TC Form 1 or 2. 3. How much is the filing fee? A Filing Fee of Five Hundred Pesos (P500.00), plus a Legal Research Fund Fee of Ten Pesos (P10.00), is collected for every TCC Ruling or Tariff Classification Opinion requested. 4. What is the normal processing time for the Commission to issue a TCC Ruling? Issuance of TCC Ruling/Tariff Classification Opinion is 30 days from determination by the Commodity Specialist of the completeness and sufficiency of the application in form, substance, and supporting documents. 5. Is a TCC Ruling binding with the Bureau of Customs? Pursuant to Section 1313a of the TCCP, as amended, rulings of the Commission are binding with the Bureau of Customs. However, in case of conflict, the TCC Ruling is elevated to the Secretary of Finance for final decision. 6. How does one apply for a TCC Ruling or Tariff Classification Opinion? The step-by-step procedure in applying for a TCC Ruling or Tariff Classification Opinion under Section 1313a is shown in Annex “B”. Said procedure is posted at the lobby of the Commission‟s office at the 5th floor of the Philippine Heart Center Building. Section 506 – Assistance to the President and Congress of the Philippines Assistance is extended by the Commission to the President and Congress through the conduct of studies and/or submission of position papers / comments on tariff and tariff-related matters being discussed in Congress or in domestic and international trade fora. - 12 - TC CITIZEN’S CHARTER Revised November 2014 Trade Remedy Laws The Commission has additional major responsibilities as a quasi-judicial body under the following legislations related to its core work. Republic Act 8752 (s. 1999) – Anti-Dumping Act of 1999 1. What is dumping? Dumping is a form of price discrimination between two national markets. It occurs when foreign producers sell their products to an importer in the domestic market at prices lower than in their own national markets, or at prices below cost of production, the sale or importation of which injures or threatens to injure a domestic industry producing like or comparable products or retards the establishment of a potential industry. 2. What is the Anti-Dumping Act of 1999? Republic Act (R.A.) 8752, otherwise known as the “Anti-Dumping Act of 1999,” which amended Section 301 of the Tariff and Customs Code of the Philippines, as amended, provides protection to a domestic industry which is being injured, or is likely to be injured, by the dumping of products imported into or sold in the Philippines. 3. When was R.A. 8752 signed? Effective? R.A. 8752 was signed on August 12, 1999 and took effect on September 4, 1999. 4. What are the elements of dumping? There are four (4) elements of dumping, namely: a. Like Product - product produced by the domestic industry which is identical or alike in all respects to the article under consideration, or in the absence of such a product, another product which, although not alike in all respects, has characteristics closely resembling those of the product under consideration. b. Price Difference - amount by which the normal value (the price prevailing in the exporting country) exceeds the export price (selling price to an importer in the Philippines). c. Injury - material injury to a domestic industry, threat of material injury or material retardation of the establishment of a domestic industry. Injury test must be based on positive evidence and must involve an objective examination of both (a) the volume of the dumped imports and the effect of dumped imports on the prices of like product in the domestic market, and (b) the consequent impact of these imports on the domestic producers of such products. - 13 - TC CITIZEN’S CHARTER Revised November 2014 d. Causal Link - must exist between the injury being suffered by the domestic industry and the dumped imports. It must be clear that the injury suffered is directly attributable to the alleged dumping. In an anti-dumping petition, all four (4) elements must be established. 5. Who may file an anti-dumping protest? A protest may be filed by or on behalf of the domestic industry in writing and should be embodied in a notarized form. 6. Are there fees to be paid for formal investigation of an anti-dumping case? Petitions found to be meritorious under R.A. 8752 are subject to a Filing Fee of Twenty Thousand Pesos (P20,000.00) and a Legal Research Fund Fee of Two Hundred Pesos (P200.00), per case. 7. Who else, aside from the domestic industry, may initiate an anti-dumping investigation? In special circumstances, the Department of Trade and Industry (DTI) or Department of Agriculture (DA) may, on its own motion, initiate an anti-dumping investigation without having received a written application by or on behalf of a domestic industry. The concerned authorities should have sufficient evidence of dumping, injury and a causal link to justify the initiation of the investigation. 8. What is the role of the Tariff Commission in anti-dumping investigations? The Commission conducts formal investigation and submits a report of findings to either Secretary for the issuance of a Department Order imposing the definitive antidumping duty (in case of affirmative findings). 9. What is the timetable for the completion of a formal investigation by the Commission? The Commission shall submit within one hundred twenty (120) calendar days from receipt of the case its Final Report of Findings and decision to the Secretary of Trade and Industry (in the case of industrial goods) or to the Secretary of Agriculture (in the case of agricultural products) for the issuance of the appropriate Department Order. The step-by-step procedure for petitions under R.A. 8752 is shown in Annex “C”. Said procedure is posted at the lobby of the Commission‟s office at the 5th floor of the Philippine Heart Center Building. - 14 - TC CITIZEN’S CHARTER Revised November 2014 Republic Act 8751 (s. 1999) – Countervailing Duty Act of 1999 1. What is a countervailing duty? A "countervailing duty" is a special duty levied, in addition to the regular duty and other charges, by an importing country on its imports which have been found to be subsidized in the country of origin or exportation. It is equal to the ascertained amount of subsidy, calculated in terms of subsidization per unit of the subsidized exported product. 2. What is a countervailing bond? A "countervailing bond" is a security (cash deposit or bond) equal to the amount of the provisionally calculated amount of subsidization. It is required to be posted when the investigating authorities judge that such measure is necessary to prevent injury being caused to the domestic industry during the investigation. 3. What is the Countervailing Duty Act of 1999? Republic Act 8751, otherwise known as the “Countervailing Duty Act of 1999,” which amended Section 302 of the Tariff and Customs Code of the Philippines, as amended, provides protection to a domestic industry which is being injured, or is likely to be injured, by subsidized products imported into or sold in the Philippines. 4. When was R.A. 8751 signed? Effective? R.A. 8751 was signed on August 7, 1999 and took effect on August 31, 1999. 5. What are the elements or factors to be considered before a countervailing duty may be imposed? There are four (4) elements or factors which must be considered before a countervailing duty may be imposed, namely: a. Like Product - product produced by the domestic industry which is identical or alike in all respects to the article under consideration, or in the absence of such a product, another product which, although not alike in all respects, has characteristics closely resembling those of the product under consideration. b. Subsidy - any financial assistance extended to the production, manufacture, carriage or export of goods. c. Injury - material injury to a domestic industry, threat of material injury or material retardation of the growth, or the prevention of the establishment, of a domestic industry. Injury test must be based on positive evidence and must involve an objective examination of both (a) the volume of the subsidized imports and the effect of subsidized imports on the prices of like product in the domestic market, and (b) the consequent impact of these imports on domestic producers of such products. - 15 - TC CITIZEN’S CHARTER Revised November 2014 d. Causal Link - the material injury suffered by the domestic industry is the direct result of the importation of the subsidized product. Like in anti-dumping, all four (4) elements must be established in a petition for countervailing duty. 6. Who may file a petition for countervailing action? A petition may be filed by or on behalf of the domestic industry in writing and should be embodied in a notarized form. 7. Who else, aside from the domestic industry, may initiate a countervailing investigation? In special circumstances, DTI or DA may, on its own motion, initiate a countervailing action. The concerned authorities should have sufficient evidence of subsidization, injury and a causal link to justify the initiation of the investigation. 8. Are there fees to be paid for a countervailing case? Petitions found to be meritorious under R.A. 8751 are subject to a Filing Fee of Twenty Thousand Pesos (P20,000.00) and a Legal Research Fund Fee of Two Hundred Pesos (P200.00), per case. 9. What is the role of the Tariff Commission in subsidies and countervailing investigations? The Commission conducts formal investigation and submits a report of findings to either the DTI or DA Secretary for the issuance, in case of affirmative findings, of a Department Order concerning the imposition of the definitive countervailing duty. 10. What is the timetable for the completion of the formal investigation by the Commission? The Commission shall submit within one hundred twenty (120) calendar days from receipt of the case its Final Report of Findings and decision to the Secretary of Trade and Industry (in the case of industrial goods) or to the Secretary of Agriculture (in the case of agricultural products) for the issuance of the appropriate Department Order. The step-by-step procedure for petitions under R.A. 8751 is shown in Annex “C”. Said procedure is posted at the lobby of the Commission‟s office at the 5th floor of the Philippine Heart Center Building. - 16 - TC CITIZEN’S CHARTER Revised November 2014 Republic Act 8800 (s. 2000) – Safeguard Measures Act 1. What is the law on the application of safeguard measures? Republic Act 8800, otherwise known as the “Safeguard Measures Act” provides for: a. general safeguard measures to relieve domestic industries suffering from serious injury as a result of increase in imports; and b. special safeguard measures (additional duty not exceeding 1/3 of the existing rate of duty) on agricultural products marked ”SSG‟ in Schedule LXXV-Philippines, when the import volume exceeds its trigger level or when the actual c.i.f. import price falls below a trigger price level. The reason for the application of safeguard measures is to give the affected domestic industry time to prepare itself against, and adjust to, increased import competition because of the reduction of tariffs or the lifting of quantitative restrictions. 2. When was R.A. 8800 signed? Effective? R.A. 8800 was signed into law on July 19, 2000, published on July 24, 2000, and took effect on August 9, 2000, i.e., fifteen (15) days following its complete publication in two (2) newspapers of general circulation. 3. Who may file a petition for safeguard measures? For general safeguard measures, the following may file a petition: a. Domestic producers as a whole of like or directly competitive products manufactured or produced in the Philippines, or those whose collective output of like or directly competitive products constitutes a major proportion of the total domestic production of those products; b. The President, or the House or Senate Committee on Agriculture, or the House or Senate Committee on Trade and Commerce; and c. The Secretary of Trade and Industry or the Secretary of Agriculture, motu proprio, if there is evidence of increased imports of the product under consideration. For special safeguard measures, the following may file a petition: a. Any person, whether natural or juridical, may request verification if a particular agricultural product can be imposed a special safeguard duty. b. The DA Secretary may, motu proprio, initiate the imposition of a special safeguard measure following the satisfaction of the conditions for imposing the measure. - 17 - TC CITIZEN’S CHARTER 4. Revised November 2014 Are there any fees to be paid for formal investigation of a general safeguards case? Petitions found to be meritorious under R.A. 8800 are subject to a Filing Fee of Twenty Thousand Pesos (P20,000.00) and a Legal Research Fund Fee of Two Hundred Pesos (P200.00), per case. 5. Where is a petition for safeguard measure filed? Petitions for general safeguard action shall be filed with the DTI Secretary involving non-agricultural products, or with the DA Secretary in cases relating to agricultural products. The concerned Secretary shall determine whether or not the petition is proper in form and substance and whether or not the documentary requirements are complied with. Petitions for special safeguard measures shall be filed with the Secretary of Agriculture. 6. What is the role of the Tariff Commission in general safeguards investigation? The Commission shall conduct the formal investigation to determine: a. if the domestic product is a like product or a product directly competitive to the imported product under consideration; b. if the product is being imported into the Philippines in increased quantities (absolute or relative to domestic production); c. the presence and extent of serious injury or threat thereof to the domestic industry that produces like or directly competitive product; and d. the existence of a causal relationship between the increased imports of the product under consideration and the serious injury or threat thereof to the affected domestic industry. 7. What is the timetable for the completion of the formal investigation by the Commission? The Commission shall conclude its formal investigation and submit a report of its findings and conclusions to the Secretary within one-hundred-twenty (120) calendar days from receipt of the request from the Secretary, except when the Secretary certifies that the same is urgent, in which case the Commission shall complete the investigation and submit the report within sixty (60) calendar days. Upon its positive determination, the Commission shall recommend to the Secretary an appropriate definitive measure. The step-by-step procedure for petitions under R.A. 8800 is shown in Annex “C”. Said procedure is posted at the lobby of the Commission‟s office at the 5th floor of the Philippine Heart Center Building. - 18 - TC CITIZEN’S CHARTER Revised November 2014 Annex “A” - 19 - TC CITIZEN’S CHARTER Revised November 2014 Annex “B” - 20 - TC CITIZEN’S CHARTER Revised November 2014 Annex “C” - 21 - TC CITIZEN’S CHARTER Revised November 2014 Annex “D” - 22 - TC CITIZEN’S CHARTER Revised November 2014 Annex “E” Tariff Commission Directory Office Address: 5th Floor, Philippine Heart Center Building (PHC), East Avenue, Diliman, Quezon City, Philippines Day and Year of Foundation: 20 June 1953 Agency Trunkline Number/s, Fax and Email Addresses: PHC Trunkline - 925-2401 to 50 locals 3501 – 3512 Fax No. 921-7960 - 433-5899 E-mail address - [email protected] Website: http://www.tariffcommission.gov.ph Mother Agency: National Economic and Development Authority (NEDA) Full Names and Designation of Agency Officials, Direct and Local Lines: Collegial Body Name Designation Contact Details 433-5899 925-2401 to 50 local 3501 [email protected] Atty. Edgardo B. Abon Chairman Ms. Marilou P. Mendoza Commission Member III 433-5895 925-2401 to 50 local 3505 [email protected] (vacant) Commission Member III 433-4252 925-2401 to 50 local 3504 - 23 - TC CITIZEN’S CHARTER Revised November 2014 Finance, Management & Administrative Service (FMAS) Name Vicente M. Querol Maria Felicidad D. Donor Vicente M. Querol Marilou P. Mendoza Designation/Unit OIC-Director III Chief Administrative Officer Administrative Division Chief Administrative Officer Financial Management Division OIC Planning, Management and Information Systems Division Contact Details 929-1964/927-3724 925-2401 to 50 local 3506 [email protected] 929-1964 925-2401 to 50 local 3506 [email protected] 929-1964 925-2401 to 50 local 3506 [email protected] 929-1905 925-2401 to 50 local 3506 [email protected] Research, Investigation & International Trade Analysis Service (RIITAS) Name Designation/Unit Artemio D. Bernardino Director III Ma. Lourdes M. Saluta Director II Elvira C. Ignacio Esperanza B. Palomata Angelita R. Fernando Gerry P. Gebela Chief Tariff Specialist Commodities Studies Division OIC / Supervising Tariff Specialist Economics, Trade and Industry Studies Division Chief Tariff Specialist Financial Studies Division Chief Tariff Specialist International Trade Studies Division Contact Details 433-5898/926-7476 925-2401 to 50 local 3503 [email protected] 433-5898/926-7476 925-2401 to 50 local 3507 [email protected] 926-8731 925-24-01 to 50 local 3510 [email protected] 433-5896 925-2401 to 50 local 3508 [email protected] 928-84-19 925-24-01 to 50 local 3502 [email protected] 928-8419 925-24-01 to 50 local 3510 [email protected] - 24 -
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