SPECIAL DUTIES

Tariff

and Customs Code

Anti-Dumping Act
Anti-Countervailing Act
Safeguard Measure Act

SPECIAL DUTIES
a) Dumping duties
b) Countervailing duties
c) Marking duties
d) Retaliatory/
discriminatory duties
e) Safeguard

Purpose:
Protecting domestic
industries and
consumers from the
competition brought
about by cheap
imported merchandize.

a. Anti- Dumping Duty

Nature
Imposed on imported goods where it appears
that a specific kind or class of foreign article is
being sold or is likely to be sold in the
Philippines at a price less than its fair value.

Purpose
To protect local industries from undue
competition

Dumping occurs when:

1.

2.

3.

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 injures or threatens to
injure a domestic industry producing like or
comparable products or retards the establishment
of a potential industry.
It is a form of price discrimination between two
national markets.

Anti- Dumping Duty

Amount/ Rate

Difference between the lower price of the dumped

imported articles and the higher price of a like
domestic product

Normal Price (domestic)

- Export Price (imported)
= Anti-Dumping Duty

Anti- Dumping Duty

Imposing Authority
1.
2.

Non- Agricultural- Sec of DTI

Agricultural- Sec. of DA

Judicial Review
File a Petition for Review with the CTA within
30 days from receipt of notice of the assailed
decision.
Effect: it shall not stop or suspend the imposition of
duty

b. Countervailing Duty
Nature
1. Whenever any product, commodity or article is granted,
directly or indirectly, by the government
in the country of origin or exportation, any kind
or form of specific subsidy upon the production,
manufacture or exportation.
2. Importation of such subsidized product, commodity
or article has caused or threatens to cause material
injury to a domestic industry or has materially retarded
the growth or prevents the establishment of a domestic
industry

Countervailing; Requisites:
a.
b.
c.
d.

Product Comparability
Subsidy
Injury
Causal Link

Countervailing; Requisites:
a. Product
Comparability
a product is identical or
alike in all respects to the
article under consideration
or, in absence of such
product, another product
which, although not alike in
all respects, has
characteristics closely
resembling those of the
product under consideration.

b. Subsidy
refers to any specific
assistance directly or
indirectly provided by
the government of
the country of export
or origin in respect of
a product imported
into the Philippines.

Countervailing Duty
Specific Subsidy:
1. Bounty
- cash award paid to an exporter or manufacturer
2. Subsidy
- Financial incentives to encourage exporter or
manufacturer
3. Subvention
- Any assistance other than bounty or subsidy for
the manufacture and/or exportation of the article

Countervailing; Requisites:
c. Injury
means 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.

d. Causal Link
the material injury
suffered by the
domestic industry is
the direct result of the
importation of the
subsidized product.

Countervailing Duty
Purpose
To protect local industries from undue competition

Amount/ Rate
The Amount of Subsidy

Countervailing Duty
Imposing Authority
1.
2.

Non- Agricultural- Sec of DTI

Agricultural- Sec. of DA

Judicial Review
File a Petition for Review with the CTA within
30 days from receipt of notice of the assailed decision.
Effect: it shall not stop or suspend the imposition of duty

c. Marking Duty
Nature
Added burden for failure to comply with the
requirement laid down under Section 303 of Tariff
and Customs Code.

Purpose
To prevent possible deception

Section 303, Tariff and Customs Code.

The marking of articles or containers is a prerequisite for

every article or container of foreign origin.
a.
b.

c.

The marking shall be done in any official languages

of the Philippines
Done in a conspicuous place as legibly, indelibly,
and permanently as the nature of the article may
permit.
Indicating the country of origin of the article,

Marking Requirement; Exempted if:

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Incapable of being marked

Cannot be marked prior to shipment without injuring the article
Cannot be marked prior to shipment except at expense
economically prohibitive of its importation
The marking of a container will reasonably indicate the origin of
such article
Article is a crude substance.
Not intended for sale
It is to be processed in the Phil
The ultimate purchaser would necessarily know the country of
origin
It was produced more than 20years prior to importation
Cannot be marked prior to shipment except at expense
economically prohibitive of its importation and the failure to mark
is not to avoid compliance.

Marking Duty
Amount/ Rate
5% ad valorem of the goods
Imposing Authority
Commissioner of Customs

Judicial Review
Not available

d. Discriminatory/Retaliatory Duty
Nature
Retaliatory duty imposed whenever it is found as
a fact that the country of origin discriminates
against the commerce of the Philippines putting
the latter at a disadvantage compared with
other foreign commerce

Purpose
To protect national interest

Discriminatory/Retaliatory Duty
Amount/ Rate
not exceeding 100% ad valorem
Imposing Authority
President of the Philippines through
Proclamation

Judicial Review: Not available

e. Safeguard Measure
This is a new multilateral measure levied in
addition to the regular duty against covered
products being imported in an increased
quantities, or its volume exceeds the trigger
level or its cost, insurance and freight (C.I.F.)
value falls below the trigger price.

e. Safeguard Measure
1.

General
to relieve domestic
industries suffering
from serious injury as
a result of increased
imports.

2. Special
when the import volume
exceeds its trigger level
or when the actual cost,
insurance, and freight
import falls below a
trigger level.

When
imposed:

GENERAL

SPECIFIC

Goods are imported in

increased quantities

a.
b.

Volume exceed a base

trigger level; or
price falls below a price
trigger level

Applicable
Goods:

Agricultural and
Non-Agricultural

Agricultural

Imposing
Authority:

a. Agri- Sec of DA
b. Non-Agri- Sec of DTI

Customs Commissioner
thru Sec of DoF upon
request by Sec of DA.

Only upon
positive final
determination
by the Tariff
Commission

Safeguard
measures/
Rate:

GENERAL

SPECIFIC

1.Increase in or imposition of
any duty on the imported
product;
2.Decrease in or imposition of
a tariff rate quota (Min.
Access Volume);
3.Modification of imposition of
any quantitative restriction;
4.One or more appropriate
adjustment measures;
5. Any combination of 1 to 4.

1.

Volume Test:
Additional duty not
exceeding 1/3 of the
existing rate of duty
2. Price Test:
If the price difference is:
At most 10%= 0%
>10%- 40%= 30%
>40%= 50%
Plus, duty imposed under
(b.) if >40% - 60%

Safeguard
measures:

GENERAL

SPECIFIC

1.Increase in or imposition of
any duty on the imported
product;
2.Decrease in or imposition of
a tariff rate quota (Min.
Access Volume);
3.Modification of imposition of
any quantitative restriction;
4.One or more appropriate
adjustment measures;
5. Any combination of 1 to 4.

d. >60%= 70%
Plus, duties under b and
c if >60%- 75%
e. >70%= 90%
Plus, duties under b, c
and d if > 75%

GENERAL
Limitation:

SPECIFIC

1. Only to the extent of

1. Volume Test:
preventing or redressing the
May be maintained
injury.
only until the year in
2. Shall not be applied to
which it is imposed
products from a developing
and may be reduced
country if countrys total
or terminated in
imports of the prod is < 3%
special cases.
provided, that such share
collectively account for not
2. Price Test:
more than 9% total imports
Not resorted to when
the volume of the
product is declining

Trigger Volume test:

The amount obtained after adding the change in the annual
domestic consumption of the agricultural product, for
the 2 preceding years to:
a. 125% of the ave. annual vol (aav) in the 3 immediately preceding
years if the market access is at most 10%
b. 110% aav if the market access is >10% but not >30%
c. 105% aav if the market access is >30%
d. If consumption is not considered, 125% of the ave. annual vol (aav)
in the 3 immediately preceding years

END