AN ACT CHANGING THE BASIS OF DUTIABLE VALUE OF IMPORTED ARTICLES SUBJECT TO AN AD VALOREM RATE OF DUTY FROM HOME CONSUMPTION VALUE (HCV) TO TRANSACTION VALUE (TV)

Case Overview and Summary

Summary of Republic Act No. 8181

Basis of Dutiable Value (Section 1):
- The dutiable value of imported goods subject to an ad valorem rate shall be the transaction value, which is the price paid or payable for the goods when sold for export to the Philippines, adjusted by adding certain costs and charges.
- Adjustments include commissions, packing costs, royalties, proceeds from resale, transport costs, insurance, and other specified costs.
- If the declared value is doubted, the Commissioner of Customs can require additional evidence or use alternative valuation methods.
- Alternative methods include transaction value of identical goods, deductive value based on domestic sales, computed value based on production costs and profits.
- If other methods fail, reasonable means consistent with GATT 1994 and Uruguay Round Final Act shall be used.
- Published values by the Commissioner shall be binding until changed.
- Importers can file protests against published values within 15 days.
- Goods can be released upon filing a cash bond equal to duties, taxes, and 25% for delayed valuation.
- Definitions of "reasonable", "identical goods", and "similar goods" are provided (Section 1).

Transitory Provisions (Section 2):
- Until Congress authorizes the shift to transaction value before January 1, 2000, the dutiable value shall be based on the export value in the principal export markets of the exporting country or country of manufacture/origin.
- If export value cannot be ascertained, the domestic wholesale selling price in Metro Manila or other principal markets in the Philippines shall be used, minus expenses, profits, duties, and taxes.
- The Commissioner shall ascertain and publish correct dutiable values using available information sources.
- Importers can file protests against published values within 15 days.
- Goods can be released upon filing a cash bond equal to duties, taxes, and 25% for delayed valuation.

Shift to Transaction Value (Section 3):
- Congress shall order the shift to transaction value as the basis of dutiable value, upon the President's recommendation, even before January 1, 2000, in the interest of national economy, general welfare, or national security.

Implementation (Sections 4-6):
- The Secretary of Finance shall promulgate necessary rules and regulations for implementation (Section 4).
- The Commissioner can delegate the power to determine dutiable values and release goods under cash bond in cases without established values (Section 5).
- The Commissioner shall create a body to receive and hear protests regarding published values and submit recommendations (Section 6).

Repealing Clause (Section 7):
- All laws, decrees, executive orders, rules, and regulations inconsistent with this Act are repealed or modified accordingly.

Effectivity (Section 8):
- This Act shall take effect 15 days after its complete publication in the Official Gazette or in at least two newspapers of general circulation, whichever date comes earlier.