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    What is Tariff Adjustment?

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    Tariff - a tax levied by a government on

    imports or exports for purposes of

    protection, support of the balance ofpayments, or the raising of revenue.

    Tariff Adjustment -

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    Why is there a need for TariffAdjustment?

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    it is a means to expand international trade

    in order to raise economic welfare ofparticipating countries

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    FLEXIBLE CLAUSE

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    1. Increase, reduce or remove

    existing protective rates of duty

    (including any necessary

    change in the classification).

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    2. Establish import quota or

    ban imports of anycommodity, as may be

    necessary.

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    3. Impose an additional duty on

    all imports not exceeding ten

    (10) per cent ad valorem,

    whenever necessary.

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    The Tariff and Customs Code of the

    Philippines (TCCP), in the interest of

    national economy, general welfareand/or national security, the

    President upon the recommendation

    of the National Economic andDevelopment Authority (NEDA), is

    empowered to:

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    reduce by not more than fifty per centor

    to increase by not more than five times the

    rates of importduty expressly fixed bystatute (including any necessary change in

    classification) when in his judgment such

    modification in the rates of import duty is

    necessary in the interest ofnational

    economy, general welfare and/or national

    defense.

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    The existing rates may be

    increased or decreased to any

    level, in one or several stages but

    in no case shall the increased rate

    of import duty be higher than amaximum of one hundred (100%)

    percent ad valorem

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    The President shall have no authority to

    transfer articles from the duty-free list to

    the dutiable list nor from the dutiable list tothe duty-free list of the tariff

    ("duty-free list" as goods with 0% import

    tariff duty rate, this limitation may be seen

    to be consistent with the floor and ceiling

    rates set in Section 401.)

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    Before any recommendation is submitted to

    the President by the Council pursuant to the

    provisions of this section, the Commissionshall conduct an investigation in the course

    of which it shall hold public hearings

    wherein interested parties shall be afforded

    reasonable opportunity to be present, to

    produce evidence and to be heard

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    Investigation/consultation/public hearing

    Drafting of Executive Order - After thefindings and recommendations of the

    Commission shall have been approved by

    the NEDA, the Commission drafts the

    Executive Order implementing such

    recommendations

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    Review of the Executive Order (EO)

    is undertaken one (1) year after itseffectivity. The objective of the

    review is to rationalize the tariff

    rates and eliminate any tariff

    distortions.

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    An interested party may request

    for an upward or downward

    adjustment of the tariff rates or a

    reclassification of the articles

    which are subject of the review.

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    In accordance with the mandated functions

    of the Commission to Executive Order No.

    143 dated 21 August 1999 and as approvedin the Executive Committee Meeting of 19

    February 2001, the revised procedure

    under Section 401 shall be adopted in the

    conduct of investigation for all regular

    requests for tariff modification.

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    Section 402

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    For the purpose of expanding foreign

    markets for Philippine products as a means

    in assisting in the economic development ofthe country, in overcoming domestic

    unemployment, in increasing the

    purchasing power of the Philippine peso,

    and in establishing and maintaining better

    relationship between the Philippines and

    other countries, the President, upon

    investigation by the Commission and

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    For the purpose of expanding

    foreign markets for

    Philippine products as a

    means of assisting in the

    economic development of thecountry,

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    in overcoming domestic

    unemployment, in increasing

    the purchasing power of the

    Philippine peso, and

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    in establishing and

    maintaining better

    relationship between the

    Philippines and other

    countries

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    (1) To enter into trade agreements with

    foreign governments or

    instrumentalities thereof; and

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    (2)To modify import duties (including any

    necessary change in classification) and

    other import restrictions, as arerequired or appropriate to carry out and

    promote foreign trade with other

    countries:

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    The proclaimed duties and other import

    restrictions shall apply to articles the

    growth, produce or manufacture of allforeign countries, whether imported

    directly or indirectly: Provided, That the

    President may suspend the application of

    any concession to articles the growth,

    produce or manufacture of any country

    because of its discriminatory treatment of

    Philippine commerce or because of other

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    Every trade agreement concluded pursuant

    to this section shall be subject to

    termination upon due notice to the foreigngovernment concerned at the end of not

    more than five years from the date on which

    the agreement comes into force and, if not

    then terminated, shall be subject to

    termination thereafter upon not more than

    six months notice

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    The authority of the President to enter into

    trade agreements under this section shall

    terminate on the expiration of five yearsfrom the date of enactment of this Code

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    Nothing in this section shall be construed to

    give any authority to cancel or reduce in any

    manner any of the indebtedness of anyforeign country to the Philippines or any

    claim of the Philippines against any foreign

    country.

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    Before any trade agreement is conducted

    with any foreign government or

    instrumentality thereof, reasonable publicnotice of the intention to negotiate an

    agreement with such a government or

    instrumentality shall be given in order that

    any interested person may have an

    opportunity to present his views to the

    Commission