Amending Presidential Decree No. 1352.

Case Overview and Summary

Summary of Presidential Decree No. 1395 Amending Presidential Decree No. 1352

Imposition of Duties and Taxes on Importations
- All importations currently totally or partially exempt from customs duties and/or internal revenue tax under any law shall be subject to a 5% customs duty and 5% internal revenue tax, subject to limitations and conditions prescribed under such law. (Section 1)
- The duty and tax shall be computed according to the Tariff and Customs Code of the Philippines and the National Internal Revenue Code of 1977, respectively. (Section 1)

Exemptions from Duties and Taxes
- The following importations are exempt from the 5% customs duty and 5% internal revenue tax:
    1. Importations exempt under international treaties or commitments, such as the ADB-RP Host Agreement (1966), UN Convention on Privileges and Immunities, USAID-RP Agreement, 1947 Military Bases Agreement, and other similar treaties. (Section 1)
    2. Importations exempt under Presidential Decrees No. 66, 87, 529, 215, 666, and 972. (Section 1)
    3. Importations of machinery, equipment, and spare parts by enterprises registered with the appropriate government agency on or before April 21, 1978, under any tax incentive law, subject to the following conditions:
        a. The importation has been authorized for specific projects approved by the agency as of April 21, 1978. (Section 1)
        b. The exemption shall not be authorized beyond December 31, 1981. (Section 1)

Payment and Deferral of Duties and Taxes
- The duty and tax shall be paid before the release of imported articles from customs custody. (Section 2)
- Where the tax incentive law authorized deferral of duty and tax for registered non-pioneer enterprises, the same privilege may be extended to registered pioneer enterprises by the appropriate implementing government agency. (Section 2)

Sale or Transfer of Imported Articles
- If imported articles subject to the 5% duty and tax are subsequently sold, transferred, or exchanged to non-exempt persons or entities, the purchaser shall be considered the importer and liable for the differences between the full duty and tax based on the depreciated value and the 5% duty and tax previously paid. (Section 3)
- The duty and tax due shall constitute a lien on the article, superior to all other charges or liens, irrespective of the possessor. (Section 3)

Repealed or Amended Laws
- The pertinent provisions of the following laws are repealed or amended accordingly: Presidential Decrees No. 218, 348, 413, 440, 535, 538, 634, 992, 1159; Republic Acts No. 720, 1370, 2640, 3470 (as amended), 5186 (as amended), 6135 (as amended); and other general and special laws and special charters granting franchises. (Section 4)

Restoration of Exemption Benefits
- The President may, in the interest of national economic development and upon recommendation of the Fiscal Incentives Review Board, restore any exemption benefit withdrawn under this Decree. (Section 5)

Implementation and Effectivity
- The Secretary of Finance shall promulgate the necessary rules and regulations for the effective implementation of this Decree, upon recommendation of the Commissioner of Customs and in consultation with the appropriate government agency. (Section 2)
- This Decree shall take effect upon approval, but any duty and internal revenue tax already paid on importations mentioned in paragraph 3 of Section 1 shall be recomputed in accordance with the provisions of this Decree. (Section 4)