Tariff Commission & Flexible Tariff

Flashcards about the Tariff Commission based on lecture notes.

What government agency in the Philippines is tasked with influencing the country's trade and economic policies?

The Tariff Commission (TC)

Under what law does the Tariff Commission operate?

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

To which government body is the Tariff Commission attached?

The National Economic and Development Authority (NEDA)

What was the significance of the Philippine Tariff Act of 1909?

It was the earliest tariff legislation, passed by the United States Congress, that laid the groundwork for tariff imposition on foreign goods.

What did Republic Act 911 (1953) establish?

The TC as an independent government agency

What did Presidential Decree No. 1 (1972) do to the Tariff Commission?

Restructured the TC into a collegial body and placed it under NEDA's supervision.

What was the focus of Executive Order No. 143 (2000) and EO No. 366 (2004)?

Streamlining TC operations to promote efficiency and global competitiveness

What are the key responsibilities of the Tariff Commission under the CMTA?

Policy Guidance and Support, Dispute Resolution, and Trade Agreement Review

Who appoints the Chief Officials of the Tariff Commission?

The President of the Philippines

What are the qualifications for becoming a Chief Official of the Tariff Commission?

Must be natural-born citizens of the Philippines, of good moral character and proven integrity, and possess the necessary qualifications for developing expert knowledge of tariff and trade-related matters.

According to Section 1600, what restrictions are placed on the Chief Officials of the Tariff Commission during their term?

They shall not engage in the practice of any profession; intervene in the management of any private enterprise affected by their office's functions; or be financially interested in any contract with the government.

Who appoints the employees of the Tariff Commission?

The Chairperson, in accordance with the Civil Service Law

Name some of the functions of the Tariff Commission.

Adjudicating cases on trade remedies, studying the impact of tariff policies, administering Philippine tariff schedules, and issuing advance rulings on tariff classification.

What kind of information does the Tariff Commission provide to the President and Congress?

Independent analysis, information, and technical support on matters related to tariff and non-tariff measures affecting Philippine industries and exports for policy guidance

What does the Tariff Commission do with trade agreements entered into by the Philippines?

Reviews the trade agreements for negotiation and makes recommendations on their consistency with national policy objectives

To whom does the Tariff Commission report?

The President and any Member of the Congress of the Philippines

What information must the Tariff Commission include in their annual report to the President and Congress?

A statement of methods adopted and a summary of all reports made during the year

What powers does the Tariff Commission have regarding documents and assistance for investigations?

Access to documents, power to summon witnesses, take testimony, administer oaths, and issue subpoena duces tecum

Under what conditions can the Tariff Commission order sworn statements?

At any stage of any proceeding or investigation before it

What is the nature of the “Flexible Clause”?

The Congress may authorize the President to fix tariff rates, import/export quotas, and duties within specified limits, subject to limitations and restrictions.

What is the purpose of the Flexible Clause?

To empower the President to adjust import duties and establish import quotas or ban imports in the interest of the general welfare and national security

What powers does the President have regarding import duties, according to Section 1608?

Increase, reduce, or remove existing rates of import duty (up to 100% ad valorem); establish import quotas; ban imports; impose an additional duty (up to 10% ad valorem)

What procedural steps must the Tariff Commission take before any recommendation is made to the President by the NEDA regarding import duties?

Conduct an investigation including public hearings where interested parties can participate, present evidence, and voice their views

When can the President exercise the powers delegated by the Flexible Clause?

Only when Congress is not in session

What authority does Congress retain regarding the powers delegated to the President under the Flexible Clause?

The authority to withdraw or terminate these powers through a joint resolution

What were the 3 examples of cases of the Flexible Clause?

Adjustment of Tariff Rates, Establishment of Import Quotas, Imposition of Additional Duties

What is the purpose of Section 1609, Promotion of Foreign Trade?

To expand foreign markets for Philippine products, assist in economic development, address unemployment, increase purchasing power, and establish better relations with other countries

What Presidential powers are described in Section 1609?

Authority to enter into trade agreements with foreign governments and modify import duties to promote foreign trade

What type of consultations must occur before a trade agreement is concluded with a foreign government?

Reasonable public notice to allow interested persons to present their views to the Commission. The Commission shall seek advice from relevant government agencies.

Which parties are involved in evaluating a trade agreement and making recommendations to the President?

The Tariff Commission determines whether a domestic industry has suffered or is threatened. The National Economic and Development Authority (NEDA) assesses the Commission's report and makes recommendations to the President.

What potential presidential actions can occur after reviewing the findings an recommendations of the NEDA?

The President may adjust import duties, withdraw, modify, or suspend concessions, establish import quotas, or institute other import restrictions

What are some examples of cases of Promotion of Foreign Trade?

ASEAN Free Trade Area (AFTA), Free Trade Agreements (FTA) with Other Countries, Generalized System of Preferences (GSP), Negotiations under Regional Comprehensive Economic Partnership (RCEP)

What are some differences between Section 1608 (Flexible Clause) & Section 1609 (Promotion of Foreign Trade)?

Section 1608 focuses on safeguarding the general welfare and Section 1609 aims to expand foreign markets for Philippine products