History of Tariff, Tariff Administration & Policy, and the Philippine Tariff Commission

These flashcards cover the origins of tariffs, historical development of Philippine tariff policies, key laws, the structure and powers of the Philippine Tariff Commission, and major CMTA provisions such as the Flexible Clause and Promotion of Foreign Trade.

From which city does the word “tariff” originate?

The city of Tarifa, located across the Strait of Gibraltar.

Who was Tarif Ibn Malik?

A Berber general after whom the city of Tarifa—and ultimately the word “tariff”—was named.

Which ancient city is believed to have implemented the first customs tariff and in what year?

Palmyra, Syria, in AD 136.

What term do Spanish speakers commonly use for customs duties?

Arancel.

Name three Asian countries with which ancient Filipinos traded before Spanish colonization.

China, Japan, and Siam (Thailand) – among others such as Cambodia, India, Burma, Sumatra, and Java.

How were goods commonly exchanged in the Philippines during the pre-Spanish period?

Through a barter system, sometimes with agreed prices paid in gold or metal bells from China.

What was the ‘almojarifazgo’ imposed by Spain on the Philippine Islands?

A 3 % duty levied on both imports and exports.

When and by whom was the Philippine customhouse in Manila established?

By Governor Guido de Lavezaris, 1753-1754.

What rate of duty was imposed on Chinese goods in the Philippines in 1606?

Six percent (6 %).

List any two Philippine ports opened to foreign trade during the Spanish era after Manila.

Examples: Zamboanga (1833), Cebu (1842), Iloilo (1855), Sual (1855), Legaspi (1874), Tacloban (1874).

What was the purpose of the Junta de Aranceles created in 1828?

1) Increase revenue, 2) protect agriculture & arts, 3) expand foreign commerce.

State the four origin-based importation rate categories under the 1832 tariff.

(a) Spanish goods in Spanish ships, (b) Spanish goods in foreign ships, (c) Foreign goods in Spanish ships, (d) Foreign goods in foreign ships.

Which tariff took effect on 1 April 1891 and what did it generally do?

A new Spanish tariff that reduced duties, expanded the free list, but exempted Spanish merchandise from duty.

What did President William McKinley’s July 12 1898 Executive Order provide?

Tariff duties and taxes in Philippine ports occupied by U.S. forces as a military contribution.

Define the Philippine Tariff Reform Program.

A continuous review/restructuring of the tariff system to keep it responsive to economic needs, trade patterns, and technological advances.

Under which law is the current mandate of the Philippine Tariff Commission (TC) found?

Republic Act No. 10863, the Customs Modernization and Tariff Act (CMTA).

Give two governmental functions of the Tariff Commission under the CMTA.

Examples: Adjudicate trade-remedy cases; administer Philippine tariff schedules and nomenclatures.

What body is the Tariff Commission administratively attached to?

The National Economic and Development Authority (NEDA).

Which 1909 U.S. legislation laid the legal foundation for Philippine tariffs?

The Philippine Tariff Act of 1909.

What law first created an independent Philippine Tariff Commission?

Republic Act No. 911 (20 June 1953).

Which Act became the first Tariff and Customs Code of the Philippines?

Republic Act No. 1937 (effective 1 July 1957).

Which Presidential Decree codified all Philippine tariff and customs laws in 1978?

Presidential Decree No. 1464.

Under CMTA Sec. 1600, list any two qualifications for TC chief officials.

Natural-born Filipino; good moral character and proven integrity; expert knowledge in tariff and trade matters.

During their term, what professional restriction applies to the TC Chairperson and Commissioners?

They may not engage in any profession or control any enterprise affected by their functions, nor have financial interest in government contracts.

Who appoints employees of the Tariff Commission (except private secretaries)?

The TC Chairperson (CMTA Sec. 1601).

By when must the TC submit its annual and technical reports each year?

On or before the first Monday of December (CMTA Sec. 1604).

What investigative powers does the TC possess under CMTA Sec. 1605?

Access to documents, subpoena duces tecum, summon witnesses, administer oaths, and request assistance from other agencies.

What is required of importers or manufacturers under CMTA Sec. 1606?

They may be ordered to file sworn statements of selling prices for their goods.

What section of the CMTA empowers the President to adjust tariff rates up to 100 % ad valorem?

The Flexible Clause (Sec. 1608).

Before NEDA recommends tariff changes to the President under the Flexible Clause, what must the TC do?

Conduct an investigation and hold public hearings for interested parties.

How soon do Presidential tariff orders take effect under Sec. 1608?

30 days after promulgation, except additional duties ≤ 10 % ad valorem, which take effect at the President’s discretion.

What are two key purposes of the Promotion of Foreign Trade authority in CMTA Sec. 1609?

Expand markets for Philippine products and overcome domestic unemployment (others: raise peso purchasing power, foster better international relations).

What two main powers does the President have under CMTA Sec. 1609?

(1) Enter into trade agreements; (2) Modify import duties, classifications, and restrictions to promote foreign trade.

To which goods do modified duties under a trade agreement apply?

Goods that are growth, produce, or manufacture of the partner country, whether imported directly or indirectly.

Which agencies must the TC consult when advising the President on trade agreements?

DTI, DA, DOF, DENR, DFA, BSP, and other appropriate sources.

What committee includes the TC Chairperson as a permanent member under EO 230 (1987)?

The Committee on Tariff and Related Matters.

What was the primary goal of EO 143 (2000) for the Tariff Commission?

To adopt operational strategies that promote efficient, self-reliant, innovative, globally competitive Philippine industries.

Under EO 292’s sectoral set-up, name two of the TC’s five divisions.

Examples: Agricultural & Food Division; Machineries & Transportation Division; Chemicals Division; Textile & Paper Division; Metals & Non-Metals Division.

When is the Tariff Commission’s Foundation Day celebrated?

17 August (dating from the officials’ oath-taking in 1953).

What symbol elements appear in the official seal of the Tariff Commission?

Wheel of Progress, Agricultural Sector, Trade & Industry Sector, and the nation’s hopes for continued economic growth.

Which CMTA section authorizes the TC to issue advance tariff-classification rulings?

CMTA Sec. 1510 (implied through TC’s function; implemented by Commission Order No. 2017-01).

What is the maximum additional duty the President may impose on all imports under the Flexible Clause?

An additional duty not exceeding ten percent (10 %) ad valorem.