Imposing A Five Percent Customs Duty And Five Percent Internal Revenue Tax In Lieu Of The Duty And/Or Tax-Free Importation Privilege

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PRESIDENTIAL DECREE No. 1352

IMPOSING A FIVE PERCENT CUSTOMS DUTY AND FIVE PERCENT INTERNAL REVENUE TAX IN LIEU OF THE DUTY AND/OR TAX-FREE IMPORTATION PRIVILEGE

WHEREAS, the policy enunciated under Presidential Decree No. 776 is to rationalize and harmonize the fiscal incentives granted under existing laws in order to conserve government revenues:

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree:

Section 1. All importations which are presently exempt from customs duties and/or internal revenue taxes under the provisions of any general or special laws shall be subject to a 5 percent customs duty and 5 percent internal revenue taxes subject to the same limitations and conditions prescribed under such law, if any. The duty and tax imposed herein shall be computed in accordance with the applicable provisions of the Tariff and Customs Code, as amended, and the National Internal Revenue Code of 1977, respectively.

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Summary of Presidential Decree No. 1352

Imposition of Customs Duty and Internal Revenue Tax
- Section 1: Imposes a 5 percent customs duty and 5 percent internal revenue tax on all importations that are currently exempt from such duties and taxes under any general or special laws, subject to certain limitations and conditions.
- The duty and tax shall be computed in accordance with the Tariff and Customs Code and the National Internal Revenue Code of 1977, respectively.

Exemptions from the Imposed Duty and Tax
- Section 1 lists 13 categories of importations that are exempt from the imposed duty and tax, including:
    1. Those exempt under international treaties or commitments (e.g., ADB-RP Host Agreement, UN Convention on Privileges and Immunities, US-RP Agreement, Military Bases Agreement).
    2. Those exempt under specific Presidential Decrees (e.g., PD 66, PD 87, PD 215, PD 292, PD 529, PD 572, PD 604, PD 666, PD 768, PD 783, PD 972).
    3. Those exempt under Republic Act No. 6234, Section 18.

Repeal or Amendment of Existing Laws
- Section 2: Repeals or amends the pertinent provisions of various Presidential Decrees and Republic Acts that grant exemptions from customs duties and internal revenue taxes.
- Section 3: Repeals or amends the relevant provisions of special charters granting franchises and other general and special laws, except those declared by the President as not repealed or amended upon recommendation of the Fiscal Incentives Review Board.

Implementation and Effectivity
- Section 4: Authorizes the Secretary of Finance, upon recommendation of the Commissioner of Customs, to promulgate necessary rules and regulations for the effective implementation of the Decree.
- Section 5: The Decree shall take effect immediately.