Imposing an Additional Duty of Five Percent (5%) Ad Valorem on All Imported Articles Subject To Certain Exceptions and Conditions

Case Overview and Summary

Summary of Executive Order No. 438

Imposition of Additional Duty
- An additional duty of five percent (5%) ad valorem shall be levied, collected and paid on all articles imported into the Philippines, in addition to any other duties, taxes and charges imposed by law. (Section 1)
- The additional duty shall also be levied on imported articles which are exempt under existing laws, except for those listed under Section 3. (Section 2)
- For articles that are partially exempt, the additional duty shall be added to the non-exempt portion. (Section 2)

Exempt Importations
- The following imported articles are exempt from the additional duty of five percent (5%) ad valorem: (Section 3)
    - Those conferred by effective international agreements to which the Philippines is a signatory. (Section 3a)
    - Those of the diplomatic corps or for the official use of foreign embassies under the provisions of paragraph (k), Section 105 of the Tariff and Customs Code of the Philippines, as amended. (Section 3b)
    - Those of bonded manufacturing warehouses under the provisions of Section 2002, Presidential Decree No. 1464, as amended. (Section 3c)
    - Those of bonded smelting warehouses under the provisions of Section 2005, Presidential Decree No. 1464, as amended. (Section 3d)
    - Those of enterprises or firms registered with the Export Processing Zone Authority pursuant to Presidential Decree No. 66, as amended. (Section 3e)
    - Those enterprises or firms registered with the Philippine Veterans Investment and Development Corporation (PHIVIDEC) Authority pursuant to Presidential Decree No. 538, as amended. (Section 3f)
    - Those released under bond under Section 105 of the Tariff and Customs Code, as amended. (Section 3g)
    - Those covered by Republic Act No. 6647, entitled: "An Act Further Restructuring The Import Duty Rates And Classification Of Certain Articles Under Section 104 Of The Tariff And Customs Code of 1978 (PD 1464), As Amended". (Section 3h)

Repealing Clause
- All executive orders, rules or regulations or parts thereof which are inconsistent with this Executive Order are hereby repealed or modified accordingly. (Section 4)

Effectivity
- This Executive Order shall take effect after ten (10) days following the completion of its publication in two (2) national newspapers of general circulation, and shall remain effective until June 30, 1992, or unless sooner revoked or modified. (Section 5)