History of Tariff, Tariff Administration and Policy, Tariff Commission, and Tariff Laws

Vocabulary practice flashcards covering the history of tariffs, classifications of customs duties, Philippine Tariff Reform Programs (TRP), legal bases, and the organizational functions and powers of the Philippine Tariff Commission under the Customs Modernization and Tariff Act (RA 10863).

Tarifa

A small historic town in the Province of Cádiz, Andalusia, located at the southernmost point of Europe and $21\,\text{miles}$ from Gibraltar, where merchant ships were held up by racketeers to levy tribute at a fixed rate.

Almojarifazgo

An ancient $3\%$ ad valorem duty imposed on both imports and exports, established in Manila by Governor Guido R. Lavizares in 1573.

Revenue Tariff

A tax imposed on imported and exported goods designed chiefly and primarily to generate public revenue for a regional or national government rather than to restrict imports.

Protective Tariff

A tariff, also known as a trade remedy measure, designed primarily to shield domestic production from foreign competition and unfair trade by raising the price of imported commodities.

Bargaining Tariff

A tariff containing schedules or rates designed primarily for bargaining purposes, or containing provisions for higher duties on products of countries with unsatisfactory or unfair tariff policies.

Specific Duty

A customs duty levied on imports that is proportional to the number of items or units imported without regard to value, determined by weight, volume, gauge, or other quantitative measure.

Ad Valorem Duty

A customs tax levied as a specified percentage of the value of imported articles, derived from the Latin phrase meaning 'according to value'.

Mixed and Compound Duty

A customs tax that combines both a specific duty rate and an ad valorem rate on the same imported article.

Anti-Dumping Duty

A special duty equal to the difference between the export price and the normal value, levied on imported goods entering the Philippines at less than their normal value in the country of export or origin.

Countervailing Duty

A special duty levied in addition to ordinary duties to offset any direct or indirect specific subsidy bestowed upon the manufacture or exportation of an imported product.

Safeguard Duty

An emergency increase in tariff levied in addition to regular duty when a product is imported in increased quantities or exceeds a trigger level to protect domestic industries suffering serious injury.

Discriminatory Duty

A penalty duty under Section 714 of the CMTA of up to $100\%$ ad valorem that the President may declare against products of a foreign country that discriminates against Philippine commerce through unreasonable charges or limitations.

Marking Duty

A penalty duty under Section 710 of the CMTA equal to $5\%$ of dutiable value, imposed on imported articles or containers that fail to satisfy country of origin marking requirements at the time of importation.

Transit Duty

A tax levied on commodities for transiting or passing through a customs territory of a country en route to another territory, or for a stop-over privilege granted by that country.

Tariff Reform Program (TRP)

The systematic, continuing review and restructuring of the Philippine tariff system undertaken by the government since 1980 to align tariff structures with economic needs, trade patterns, and technology.

Philippine Winners

A group of twenty-two ($22$) domestic industries initially targeted under TRP-IV for tariff recalibration based on their global competitiveness, employment generation, and inter-industry linkages.

Philippine Tariff Act of 1909

The first tariff legislation of the Philippines, enacted by the United States Congress, which established the legal foundation for the imposition of tariffs on foreign goods entering the archipelago.

Republic Act No. 911

The law approved on 20 June 1953 that created the Philippine Tariff Commission as an independent body under the Office of the President, headed by a Collegial Body of a Chairman and two ($2$) Commissioners.

Republic Act No. 1937

The first Tariff and Customs Code of the Philippines (TCCP) passed by the Philippine Congress on 01 July 1957, superseding the 48-year colonial era of the Philippine Tariff Act of 1909.

Presidential Decree No. 1464

A codification signed on 11 June 1978 that served as the primary tariff and customs code of the Philippines for $38\,\text{years}$ until the passage of Republic Act No. 10863 in 2016.

Research, Investigation and International Trade Analysis Service (RIITAS)

The Tariff Commission service comprising CSD, ETISD, FSD, and ITSD, tasked with external functions such as analyzing trade liberalization, conducting injury investigations, and handling international trade negotiations.

Finance, Management, and Administrative Service (FMAS)

The Tariff Commission service comprising AD, FMD, and PMISD, responsible for internal support functions such as fiscal management, information technology, aggregate budgeting, and personnel administration.

Official Seal of the Tariff Commission

The official symbol prescribed under Section 1602 of the CMTA, featuring a winged wheel with spokes (expeditious progress), bundled rice stalks (agriculture), a factory with a smokestack (trade and industry), and a dragon (economic growth with social equity).

Subpoena Duces Tecum

A legal order issued by the Tariff Commission under Section 1605 of the CMTA requiring the production of specific books, papers, or documents pertinent to an investigation that are in the custody of the person served.

Flexible Clause (Section 1608, CMTA)

A statutory delegation authorizing the President, upon NEDA's recommendation when Congress is not in session, to modify tariff rates up to $100\%$ ad valorem, establish quotas/bans, or impose a general additional duty up to $10\%$ ad valorem.

Tariff Commission Form 4

The standardized form, submitted in triplicate, required of any petitioner requesting the withdrawal or suspension of a tariff concession under Section 1609 of the CMTA.

Tarifa

A small historic town in the Province of Cádiz, Andalusia, situated at the southernmost point of Europe and 21 miles from Gibraltar, named after Tarif Iban Malik; it was used as headquarters by racketeers who levied a fixed-rate tribute on passing merchant vessels.

Tariff (Etymology)

A term derived from the Old French tarife ("rate"), Spanish tarifa ("price list"), Arabic ta'rif ("notification", from arafa meaning "to know"), Italian tariffa ("price list"), and Portuguese tarifa ("schedule").

Tariff

The oldest method of a government's attempt to control trade by levying a tax on imported or exported goods.

Almojarifazgo

An ancient $3\%$ ad valorem duty imposed on both imports and exports, established in Manila by Governor Guido R. Lavizares in 1573.

Law of 1882

A Spanish law granting preferential tariff treatment to Philippine products, providing that goods from the archipelago were exempt from duty in Spain, except for tobacco, rum, sugar, cacao, chocolate, and coffee.

Revenue Tariff

A tariff imposed chiefly and primarily to increase, generate, or produce public revenue for a regional or national government rather than to restrict imports.

Protective Tariff

A tariff (also referred to as trade remedy measures) designed primarily to shield domestic production from foreign competition and unfair trade by raising the prices of imported commodities.

Bargaining Tariff

A tariff whose schedules include rates designed primarily for negotiation purposes or contain provisions authorizing higher duties on products of countries whose tariff policies are deemed unsatisfactory or unfair.

Specific Duty

A customs duty levied on imports proportional to the number of items or units imported, assessed by weight, volume, gauge, or measurement without regard to value.

Ad Valorem Duty

A customs duty levied as a fixed percentage of the value of the imported articles, derived from the Latin phrase meaning "according to value."

Mixed and Compound Duty

A customs duty that combines both a specific rate and an ad valorem rate on the same imported commodity.

Anti-Dumping Duty

A special duty equal to the difference between the export price and the normal value, levied when foreign goods are exported to the Philippines at less than their normal value in the country of origin/export.

Countervailing Duty

A special duty levied in addition to ordinary duties to offset any specific subsidy granted directly or indirectly upon the manufacture or exportation of an imported product.

Safeguard Duty

An emergency increase in tariff levied in addition to regular duties when products are imported in increased quantities, exceeding trigger levels or falling below trigger prices, causing serious injury to domestic industries.

Discriminatory Duty (Section 714, CMTA)

A penalty duty not exceeding $100\%$ ad valorem declared by presidential proclamation on products imported from or carried in vessels of a foreign country that discriminates against Philippine commerce.

Marking Duty (Section 710, CMTA)

A penalty duty of $5\%$ of the dutiable value imposed on imported articles or containers that are not properly marked with their country of origin at the time of importation.

Transit Duty

A tax levied on commodities for transiting or passing through the customs territory of a country en route to another destination or for stopover privileges.

Tariff Reform Program (TRP)

A continuing government program initiated in 1980 to review and restructure the Philippine tariff system to make it responsive to changing trade patterns, economic needs, and technological advancements.

Philippine Winners

Twenty-two (22) specific domestic industries targeted under TRP-IV for tariff recalibration based on their global competitiveness, employment generation, and inter-industry linkages.

Philippine Tariff Act of 1909

The first tariff legislation of the Philippines passed by the United States Congress, establishing the legal foundation for collecting tariffs during the colonial era for 48 years.

Republic Act No. 911

An act passed on 20 June 1953 creating the Tariff Commission as an independent collegial body headed by a Chairman and two Commissioners under the Office of the President.

Republic Act No. 1937

Enacted on 01 July 1957, it was the first Tariff and Customs Code of the Philippines (TCCP) passed by the Philippine Congress, superseding the Philippine Tariff Act of 1909.

Presidential Decree No. 1464

Signed on 11 June 1978, this decree codified and consolidated all Philippine tariff and customs laws, serving as the country's primary tariff code for 38 years.

Customs Modernization and Tariff Act (RA 10863)

Signed on 30 May 2016 and effective 16 June 2016, this law updated and expanded the mandate of the Tariff Commission and replaced PD 1464.

Tariff Commission (TC)

An attached agency of the Department of Economy, Planning and Development (formerly NEDA) serving as the principal and independent authority on tariff and trade remedies, and adviser on non-tariff measures.

Finance, Management and Administrative Service (FMAS)

The internal organizational branch of the Tariff Commission responsible for fiscal management, budgeting, human resource development, and information technology systems.

Research, Investigation and International Trade Analysis Service (RIITAS)

The external organizational branch of the Tariff Commission responsible for trade remedy investigations, globalization monitoring, international trade analyses, and tariff negotiations.

Official Seal of the Tariff Commission

The official emblem containing a winged wheel with spokes (progress and expeditious action), bundled rice stalks (agricultural sector), a factory with a smokestack (trade and industry sector), and a dragon (hopes for continued economic growth with social equity).

Subpoena Duces Tecum

A legal writ issued by the Tariff Commission compelling the production of specific books, documents, and records material to a pending investigation that are in the custody of the person served.

Subpoena Ad Testificandum

A legal process and technical term for an ordinary subpoena compelling a named individual to appear and provide oral testimony under oath before the Commission.

Flexible Clause (Section 1608, CMTA)

A statutory provision empowering the President, upon recommendation of NEDA when Congress is not in session, to modify tariff rates up to $100\%$ ad valorem, impose import quotas, or levy an additional duty not exceeding $10\%$ ad valorem across all imports.