Further Amending Section 201 of the Tariff and Customs Code of the Philippines, as Amended, Changing the Base For Customs Valuation From Home Consumption Value To Cost, Plus Insurance and Freight (C.I.F) and For Other Purposes

Case Overview and Summary

Summary of Executive Order No. 156

Basis of Dutiable Value (Section 1):
- The dutiable value of imported goods subject to ad valorem duty shall be based on:
• Cost (fair market value) of same, like or similar articles bought and sold freely in the usual wholesale quantities in the principal markets of the exporting country on the date of export to the Philippines, excluding internal excise taxes. (Sec. 1)
• If fair market value cannot be ascertained, then the value in the principal market of the country of manufacture or origin, or a third country with the same economic development as the exporting country shall be used. (Sec. 1)
• If value still cannot be ascertained, the Commissioner of Customs shall determine the dutiable value from reports of Revenue or Commercial Attaches, diplomatic officers, Customs Attaches, and other information available to the Bureau of Customs. Such values shall be published by the Commissioner. (Sec. 1)
• If value still cannot be ascertained, the dutiable value shall be the domestic wholesale selling price in Manila or other principal markets in the Philippines on the date duty becomes payable, minus: (Sec. 1)
    • Not more than 25% for expenses and profits.
    • Duties and taxes paid.

Implementation (Sections 2-4):
• The Commissioner of Customs shall promulgate rules and regulations to implement this Executive Order, subject to the approval of the Minister of Finance. (Sec. 2)
• This Executive Order supersedes Executive Order No. 71 and all inconsistent laws, orders, issuances, rules and regulations. (Sec. 3)
• This Executive Order shall take effect immediately. (Sec. 4)