2025 Tariff Laws Review – Day 1: Tariff Commission & CMTA Section 1100 (Advance Ruling & Classification Disputes)

Vocabulary flashcards covering key terms and definitions from Day 1 of the Tariff Laws Review on Tariff Commission and CMTA Section 1100 (Advance Ruling and Classification Disputes).

Tariff Commission

The Philippines’ principal authority on tariffs and trade remedy measures; a collegial body (Chairman + two Commissioners) attached to the National Economic and Development Authority (NEDA).

CMTA

Customs Modernization and Tariff Act; the statute governing tariffs, classification rulings, and trade remedies in the Philippines.

Trade Remedy Measures

Legal tools to address unfair trade: Antidumping (Section 711), Safeguard (Section 712), and Countervailing and Subsidy (Section 713).

Advance Ruling on Tariff Classification

An official written ruling by the Tariff Commission on the correct tariff classification of goods before importation or exportation, issued within 30 days of a properly documented application (Section 1100).

Classification Ruling

Rulings on commodity classification that are binding on the Bureau of Customs unless the Secretary of Finance rules otherwise (Section 1100 II).

Tariff Nomenclature

The system of product classification codes (HS and AHTN) used to determine duties; includes MFN and ATIGA rate references.

ASEAN Harmonized Tariff Nomenclature (AHTN)

The harmonized tariff classification system used within ASEAN, including supplementary notes and correlations (SEN).

HS Code

Harmonized System code used internationally to classify goods for tariff purposes.

MFN Rate

Most Favored Nation tariff rate; the standard duty rate under WTO rules.

ATIGA

ASEAN Trade in Goods Agreement; framework for tariff concessions and reduced duties among ASEAN member states.

1611 - Tariff Nomenclature and Rates of Duty

CMTA section updating product nomenclature and codes (HS/AHTN) and reflecting MFN/ATIGA rates for concessions.

1612 - Tariff Rates of Duty

CMTA section updating tariff rates in line with nomenclature changes and ASEAN concessions.

1608 Flexible Clause

Power to adjust import duties, including increasing up to 100% ad valorem, reducing/removing duties, or changing classification, usually when Congress is not in session (upon NEDA recommendation).

1609 Promotion of Foreign Trade

President’s authority to enter into trade agreements and modify duties to expand foreign markets and support national development.

WTO/APEC/AFTA Case References under 1609

International agreements and frameworks cited under 1609, such as WTO, APEC, AFTA, PJEPA, ACFTA, AKFTA, AIFTA, AANZFTA, AJCEPA, PH-EFTA, AHKFTA, RCEP.

1611/1612 Interplay (Nomenclature & Rates)

The relationship between nomenclature updates (1611) and duty rates (1612) reflecting MFN/ATIGA concessions.

BOC – Bureau of Customs

Philippine agency involved in endorsements for classification disputes and in assessing/import duties.

DOF – Department of Finance

Government department that reviews and may decide on tariff classification rulings and related decisions; part of dispute resolution.

Endorsement for Classification Disputes

Endorsement letter from the Bureau of Customs (BOC) to initiate a tariff classification dispute; required documentation.

Advance Ruling Objectives

Provide a tariff classification ruling at least 90 days before import/export; increase certainty; align with RKC, WTO, and ATIGA.

Validity of Advance Ruling

Advance rulings are valid for 5 years from issuance unless revoked or modified.

Filing Requirements (Classification Ruling)

Submission of TC Form 1 (3 copies) with authorization, samples, brochures, technical sheets, photos, etc.

Confidentiality & Publication

Rulings are published on the Tariff Commission site and kept in records; information submitted for rulings is treated as confidential.

Public Hearing (Classification Disputes)

If necessary, the TC conducts a summary public hearing presided by a hearing officer to gather facts.

Issuance Timeline for Classification Disputes

Tariff Classification Dispute Ruling issued within 20 days of receiving information or after hearing; may be extended by up to 20 days.

Grounds for Dismissal (Disputes)

Dismissal reasons include late information, no on-site verification, misrepresentation, or non-compliance with rules.

Finality and Appeals

Ruling is final and executory unless a Motion for Reconsideration (MR) or an appeal is filed (CTA).

Motion for Reconsideration (MR)

A request to reconsider a ruling within 10 days, based on errors of fact, excusable negligence, or newly discovered evidence; only one MR allowed.