The Tariff Commission shall be the principal and independent authority on tariff, trade remedy measures and competition policy to enhance industry competitiveness and pro- mote consumer welfare. The Tariff Commission, a key adviser to the executive and legislative branches of government on tariff and related matters, an independent adjudicatory body on trade remedy cases and an advocate of a strong competition law and policy, remains commit- ted to the pursuit of good and effective governance. In the conduct of public hearings and consultations, we commit ourselves to bal- ance with objectivity the interests of our stakeholders, including consumers. Where our competence in tariff commitments is required in relation to international trade, we work harmoniously with other agencies in promoting the national interest. We endeavor to secure the best for our staff, to hone their skills and develop to the fullest their potentials even as we instill in them the values of honesty, dignity and the pride inherent in work- ing for country and people. The Tariff Commission discharges its duties and responsi- bilities with utmost competence and efficiency as a model of excel- lence and integrity in government service.
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The Tariff Commission shall be the principal and independent authority on tariff, trade
remedy measures and competition policy to enhance industry competitiveness and pro-
mote consumer welfare.
The Tariff Commission, a key adviser to the executive and
legislative branches of government on tariff and related matters,
an independent adjudicatory body on trade remedy cases and an
advocate of a strong competition law and policy, remains commit-
ted to the pursuit of good and effective governance. In the conduct
of public hearings and consultations, we commit ourselves to bal-
ance with objectivity the interests of our stakeholders, including
consumers.
Where our competence in tariff commitments is required
in relation to international trade, we work harmoniously with
other agencies in promoting the national interest.
We endeavor to secure the best for our staff, to hone their
skills and develop to the fullest their potentials even as we instill in
them the values of honesty, dignity and the pride inherent in work-
ing for country and people.
The Tariff Commission discharges its duties and responsi-
bilities with utmost competence and efficiency as a model of excel-
lence and integrity in government service.
EDGARDO B. ABON
5th Floor, Philippine Heart Center Building
East Avenue, Diliman, Quezon City
February 28, 2011
His Excellency
BENIGNO SIMEON C. AQUINO III
President of the Philippines
Malacañang, Manila
Mr. President:
Pursuant to the provisions of Section 507 of the Tariff and Customs Code of the Philippines (Presidential Decree
No. 1464, as amended), I have the honor to submit herewith the Annual Report of the Tariff Commission for Calen-
dar Year 2010.
Very truly yours,
REPUBLIC OF THE PHILIPPINES
TARIFF COMMISSION
Vision/Mission Statements
Letter to the President
The Tariff Commission in 2010: An Overview 1
Commission Caseload 3
I. Section 401 - Modification of Duty (Flexible Clause) 3
II. Section 402 - Promotion of Foreign Trade 9
III. Trade Remedy Measures 19
IV. Section 1313-a - Tariff Commodity Classification 24
V. Section 506 - Assistance to the President and Congress of
the Philippines
27
VI. Advocacy 35
VII. Other Activities
A. Competition Policy 37
B. Project Proposal 42
C. Assistance to Stakeholders 42
Commission Directory 57
Annex A -Tariff Commodity Classification Rulings
Issued in 2010
60
Annex B -Foreign Trainings / Seminars Attended 80
Annex C -Local Trainings / Seminars Attended 88
TABLE OF CONTENTS
Page 1 Annual Report 2010
The Tariff Commission in 2010: An Overview
Calendar Year 2010 was another busy year for the Tariff Commission as it
continued to discharge its functions in support of the President’s commitment to the
cause of sustainable development which is an essential part of the new political and
economic order.
During the year, the Commission initiated and finished its line-by-line
comprehensive study and review of the Tariff and Customs Code.
Addressing the legitimate concerns of local industries, the Commission
conducted several public hearings and consultations under the Flexible Clause and
Anti-Dumping provisions of the Tariff and Customs Code, including Republic Act
8800 or the Safeguard Measures Act of 2000. Accordingly, the President signed a
number of Executive Orders (EOs) covering such sensitive commodities as cement,
cement clinker, milling wheat, crude oil, petroleum products, asphalt and various
iron and steel products. These EOs were issued to encourage domestic industries
not only to step up operations but also to expand and diversify according to the
demands of both local and foreign markets. Under the Safeguards Measures Act,
the Commission continued to assist distressed industries who have filed their
petitions with the Commission for safeguard measures against surges in
importation of competing products.
In the field of international trade, the Commission remained an active
participant in several meetings and dialogues under the auspices of the World
Trade Organization, Association of Southeast Asian Nations (ASEAN), the various
Free Trade Agreements (FTAs), the ASEAN Trade in Goods Agreement (ATIGA),
and the Philippines-Japan Economic Partnership Agreement (PJEPA). It was the
lead agency at the 2nd
, 3rd
, 4th and 5
th meetings of the Task Force on the ASEAN
Harmonized Tariff Nomenclature (AHTN) held in Malaysia, Laos, Vietnam and
Singapore. At these meetings as in similar others, regional economic development
through integrated approach was pursued in dynamic fashion, resulting in benefits
to all member countries. Accordingly, several EOs aimed at intensifying relationship
with other ASEAN member countries were signed by the President. These EOs
covered the modification of the rates on, among others, refined coconut oil (ASEAN
Page 2
-Korea FTA), rice (CEPT-AFTA and ATIGA) and certain other products covered by
ASEAN-Australia-New Zealand FTA. Likewise, the President signed EO 905 to
implement the tariff reduction schedule on motor vehicles and components, and
parts and accessories under PJEPA. Finally, the Commission chaired the ASEAN
Plus Working Group on Tariff Nomenclature (AP-WGTN) during its meetings in Bali
and Jakarta, Indonesia. The main objective of the AP-WGTN is to look into the
harmonization of the tariff nomenclatures of East Asia Summit and participating
countries.
As a staunch advocate of competition law and policy, the Commission is the
designated Philippine representative to the ASEAN Experts Group on Competition.
One of its activities during the year was to expound on the Philippine position
during the 6th East Asia Top Level Officials’ Meeting on Competition Policy held in
Seoul, Republic of Korea.
The Commission also attended House and Senate committee hearings
where it extended technical assistance to legislators by way of comments/
recommendations concerning proposed bills involving tariff and trade matters.
Finally, two hundred and twenty-seven (227) commodity classification rulings
were issued during the year.
INSERT PIC 1
Chairman Edgardo B. Abon
answers some questions
from the media during the
6th Socialization Forum on
the ASEAN Handbook on
Competition Policy and Law
for Business, and the
ASEAN Guidelines on Com-
petition Policy, held in Edsa
Shangri-la Hotel, hosted by
the Philippines through the
Tariff Commission (12 No-
vember 2010).
Page 3 Annual Report 2010
Commission Caseload, CY 2010
I. SECTION 401 – MODIFICATION OF DUTY (FLEXIBLE CLAUSE)
Section 401 of the Tariff and Customs Code of the Philippines (TCCP)
empowers the Commission to conduct public hearings on individual requests and
motu proprio petitions for tariff modification.
Subject
Cases
Brought For-
ward From
Previous Year
Requests Re-
ceived/ Initi-
ated by Gov-
ernment
Total Reports/
Classifi-
cation
Rulings
Issued
Requests
With-
drawn/
With-
held
Requests/
Rulings Out-
standing (as
of Dec. 31,
2010)
Section 401
Tariff Modification
-
4
4
4
-
-
Section 402
CEPT-AFTA
PJEPA
-
-
1
1
1
1
1
1
-
-
-
-
Section 1313-a
Tariff Classification
22
264
286
227
37
31
Section 301
Original
-
1
1
1
-
-
R.A. 8800
Original
Extension
-
1
1
-
1
1
1
1
-
-
-
-
Page 4
Under this provision, the petitioner is required to accomplish Tariff
Commission Form No. 3 (Information for Tariff Adjustment) which is available at the
Commission. Aside from the Commission’s invitations to interested parties, notices
of public hearings are likewise published in two (2) newspapers of general
circulation. During the hearing, concerned parties are given the opportunity to
make oral presentations and to present evidence in support of their positions. The
Commission’s investigative process also involves plant visits which include, among
others, the ocular inspection of plant facilities, production process and the
verification of the accuracy and authenticity of information submitted in support of
the positions of the parties concerned.
The Commission’s report of findings and recommendations are submitted to
the National Economic and Development Authority (NEDA) within thirty (30) days
after the termination of the public hearing. This is deliberated upon by the Tariff
and Related Matters (TRM) Technical and Cabinet Committees. Upon final
approval by the NEDA Board, the Commission prepares the necessary
implementing Executive Order (EO) for signature of the President.
For the period covered, the Commission conducted six (6) public hearings
covering various articles as shown below:
Public Hearings Conducted Action Taken By the
Commission /Status
8 – 12 February 2010
Review of EO 262 “Modifying the Nomenclature and Rates of Duty on Motor Vehicles Under Sec-tion 104 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464, as amended)”
Petition for reduction of the rates of duty on plastic resins to zero percent (0%)
Comprehensive Tariff Review to set the tariff schedule for 2011-2015 on products falling under Chapters 1-97 of the TCCP
Report submitted to NEDA.
Report submitted to NEDA.
Report submitted to NEDA.
Page 5 Annual Report 2010
The Commission chaired the Technical Committee on Tariff and Related
Matters - Technical Working Group (TCTRM-TWG) for the 2010 Comprehensive
Tariff Review. The members of the TWG are representatives from Department of
Trade and Industry, Department of Agriculture, Department of Environment and
Natural Resources, Department of Labor and Employment, Department of Finance,
Bureau of Customs, Board of Investments, Bureau of International Trade Relations,
Office of the President, Department of Transportation and Communications and
NEDA Secretariat. The TWG met from 6 October to 15 December 2010 to conduct
a line-by-line review to come up with the proposed five-year tariff program. The
TCTRM endorsed the draft program on 22 December 2010 and reconfirmed the
same on 18 March 2011 including the text of the draft EO.
During the year, the Commission drafted eight (8) EOs signed by the
President:
EO No. 898 (signed 22 June 2010)
Modifying the nomenclature and the rates of import duty on certain iron
and steel products under Section 104 of the Tariff and Customs Code of
Cement and Cement clinker (AHTN Codes 2523.10.90; 2523.29.90; 2523.90.00)
Reports submitted to NEDA.
Page 6
EO No. 896 (signed 18 June 2010)
Modifying the nomenclature and the rates of import duty on various
products under Section 104 of the Tariff and Customs Code of 1978
(Presidential Decree No. 1464), as amended.
EO No. 890 (signed 10 June 2010)
Modifying the nomenclature and the rates of import duty on crude oil,
petroleum products and asphalt under Section 104 of the Tariff and
Customs Code of 1978 (Presidential Decree No. 1464), as amended.
EO No. 885 (signed 3 June 2010)
Modifying the nomenclature and the rates of duty on imported
educational, technical, scientific and historical or cultural books under
Section 104 of the Tariff and Customs Code of 1978 (Presidential Decree
No. 1464), as amended.
EO No. 877 (signed 23 April 2010) and 877-A (signed 3 June 2010)
The Comprehensive Motor Vehicle Development Program.
EO No. 863 (signed 9 February 2010)
Implementing the zero rate of import duty on milling (food) wheat under
Section 104 of Presidential Decree No. 1464, otherwise known as the
Tariff and Customs Code of 1978, as amended, as provided for under
Section 3 of Executive Order No. 818, series of 2009.
EO No. 862 (signed 19 February 2010)
Implementing the zero rate of import duty on cement and cement clinker
under Section 104 of Presidential Decree No. 1464, otherwise known as
the Tariff and Customs Code of 1978, as amended, as provided for under
Section 3 of Executive Order No. 819, series of 2009.
Page 7 Annual Report 2010
Of the total 8,990 AHTN lines in 2010, sugar and rice were given the highest
tariff rates at 65% and 50%, respectively. A total of 150 sensitive agricultural products were subject to in-quota rates at 30% to 50% and out-quota rates at 35% to 65% (i.e., rice, sugar, coffee and coffee extracts, potatoes, certain live animals and animal products, certain meat and edible meat offal). Rates of duty at 20% to 30% were generally levied on automobiles and parts, chemical wastes, made-up textile articles, high value crops, in-quota agricultural products and other strategic merchandise; 5% to 15% rates of duty were applied to locally manufactured intermediate goods; and 3% and below rates of duty were levied on products committed for tariff elimination under the WTO Information Technology Agreement (ITA)/United Nations Education, Scientific and Cultural Organization Florence Agreement, crude oil, petroleum products and asphalt, inputs to manufactured goods and those products that are not locally produced.
Page 8
Frequency Distribution of Tariff Rates: 2006 – 2010
*/ - As of E.O.s 885 issued on 03 June 2010 890 issued on 10 June 2010 896 issued on 30 June 2010 898 issued on 29 June 2010
In 2010, 60% of total tariff lines have applied rates between 0% and
5%. Tariff lines dutiable at 7% to 15% comprise 34% and about 7% have tariffs of 20% and above.
No. of Tariff Lines Tariff
Level (%) 2006 2007 2008 2009 2010*
0 481 483 344 348 440
1 2,428 2,581 2,129 2,140 2,141
3 2,732 2,690 2,220 2,216 2,184
5 740 719 604 602 596
7 1,050 1,045 889 888 839
10 1,375 1,352 1,078 1,107 1,105
15 1,440 1,489 1,040 1,071 1,071
20 307 353 171 193 193
25 4 4 4 4 4
30 569 591 217 242 242
35 28 28 23 23 23
40 120 120 125 125 125
45 4 4 5 5 5
50 27 27 18 18 18
65 4 4 4 4 4
TOTAL 11,309 11,490 8,871 8,986 8,990
Page 9 Annual Report 2010
Table 1. Average Nominal Tariffs, 2006-2010 (in percent)
The average applied MFN tariff in 2010 declined by 4% from the 2009 level
(see Table 1). This is the result of the reduction in the MFN rates of certain
products in the manufacturing sector, i.e., EO 885 (issued on 3 June 2010) reduced
the rates of duty on educational, technical, scientific and historical or cultural books
from 5% and 10% to zero; EO 890 (issued on 10 June 2010) reduced the rates of
duty on crude oil, refined petroleum products and asphalt from 3% to zero; EO
896 (issued on 18 June 2010) reduced the rates of duty on mixed alkylbenzene and
alkylnapthalene from 3% to 1% and polyamide-6 resin from 10% to 1%; and EO
898 (issued on 22 June 2010) reduced the rates of duty on HRC/CRC products
from 7% to zero.
II. SECTION 402 – PROMOTION OF FOREIGN TRADE
In order to expand the foreign market for Philippine products, the
Commission is mandated to conduct public consultations with interested parties
before the Philippines (1) enters into any trade agreement with any foreign
government or instrumentality thereof; and (2) modifies import duties (including any
necessary change in classification) and other import restrictions, as are required or
appropriate to carry out and promote foreign trade.
Interested parties may petition the Commission for tariff modification under
Section 402 while submitting the required duly accomplished Tariff Commission
Form 4 (Request for Withdrawal/Suspension of Concessions).
Year Agriculture Mining Manufacturing Overall
2006 11.85 2.47 7.26 7.77
2007 11.82 2.47 7.32 7.82
2008 11.95 2.47 6.08 6.95
2009 11.94 2.28 6.53 7.34
2010 11.94 2.28 6.18 7.02
Page 10
Concerned parties are invited to these consultations of which schedules and
product coverage are published in two (2) leading newspapers of general
circulation.
As in Section 401 hearings, the Commission affords each interested party
reasonable opportunity to express his views during the public consultation. In order
to verify the positions/evidences presented, plant visits are likewise conducted by
the Commission. Findings and recommendations are submitted to NEDA which
then schedules these for deliberation by the TRM Technical and Cabinet
Committees. Final approval is granted by the NEDA Board after which the
Commission prepares the draft implementing EO.
A. The Commission, during the year, held Section 402 public consultations
regarding:
Trade Forum/Subject Action Taken By the
Commission /Status
Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA)
12 April 2010
Request of the Philippines for the waiver of CEPT-AFTA commitments on rice and sugar.
Report submitted to NEDA.
Philippines – Japan Economic Partnership Agree-ment (PJEPA)
19 May 2010
Consultation to implement the amended rate of duty of certain motor vehicles and components, parts and/or accessories of motor vehicles based on agreement between the Government of the Philippines and Government of Japan under the PJEPA.
Report submitted to NEDA.
Page 11 Annual Report 2010
B. For the period covered, the Commission drafted seven (7) EOs
signed by the President:
EO No. 905 (signed 29 June 2010)
Modifying the rates of import duty on certain imported articles as
provided for under the Tariff and Customs Code of 1978, as
amended, in order to implement the amended tariff reduction
schedule on motor vehicles and components, parts and/or
accessories covered by Executive Order 767 Series of 2008 under
the Agreement between the Republic of the Philippines and Japan for
an Economic Partnership.
INSERT PIC 2
Commissioner Edgardo R. Maralit (left) and Commissioner Marilou P. Mendoza (right)
during the public consultation to implement the amended rate of duty of certain motor
vehicles and components, parts and/or accessories of motor vehicles based on agree-
ment between the Government of the Philippines and Government of Japan under the
Philippines-Japan Economic Partnership Agreement (PJEPA) (19 May 2010).
Page 12
EO No. 895 (signed 18 June 2010)
Modifying the rate of import duty on refined coconut oil as provided for
under the Tariff and Customs Code, as amended, in order to
implement the transfer from the sensitive track to the normal track
category under the ASEAN-Korea Free Trade Area (AKFTA).
EO No. 894 (signed 18 June 2010)
Modifying the rates of import duty on rice as provided for under the
Tariff and Customs Code of 1978, as amended, in order to implement
the tariff reduction schedule on rice through the invocation of the
Protocol to provide special consideration for rice and sugar under the
Common Effective Preferential Tariff Scheme for the ASEAN Free
Trade Area (CEPT-AFTA)/ASEAN Trade in Goods Agreement
(ATIGA).
EO No. 892 (signed 17 June 2010)
Modifying the rates of import duty on sugar products as provided for
under the Tariff and Customs Code of 1978, as amended, in order to
implement the tariff reduction schedule on sugar products through the
invocation of the Protocol to provide special consideration for rice and
sugar under the Common Effective Preferential Tariff Scheme for the
ASEAN Free Trade Area (CEPT-AFTA)/ASEAN Trade in Goods
Agreement (ATIGA).
EO No. 852 (signed 23 December 2009)
Modifying the rates of duty on certain imported articles as provided
under the Tariff and Customs Code of 1978, as amended, in order to
implement the commitments under the Trade in Goods Chapter of the
Agreement on Comprehensive Economic Partnership among member
states of the Association of Southeast Asian Nations and Japan.
Page 13 Annual Report 2010
EO No. 851 (signed 23 December 2009)
Modifying the rates of duty on certain imported articles as provided
under the Tariff and Customs Code of 1978, as amended, in order to
implement the commitments on Trade in Goods chapter of the
Agreement establishing the ASEAN - Australia - New Zealand Free
Trade Area (AANZFTA).
EO No. 850 (signed 23 December 2009)
Modifying the rates of duty on certain imported articles as provided for
under the Tariff and Customs Code of 1978, as amended, in order to
implement the commitment to eliminate the tariff rates on the
remaining products in the inclusion list in year 2010 under the
Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN
Free Trade Area (AFTA)/ASEAN Trade in Goods Agreement
(ATIGA).
Rules of Origin (ROO)
Rules of Origin refers to the “set of criteria used to determine the country of
origin of a good in international trade.” An important component of every Free
Trade Agreement (FTA), ROO does not only identify the origin of the products but
allows parties to extend tariff concessions or preferential treatment.
The Commission was fully occupied in the area of ROO during the year. It
actively participated in the drafting of the country’s positions, proposals and counter
-proposals regarding issues in the ASEAN-CEPT conversion to the product specific
rules based on tariff shift , and ROO agreements with different dialogue partners.
Page 14
An active member of the Philippine delegation, the Commission participated
in the various negotiation sessions, attended inter-agency meetings and provided
comments and recommendations on the ROOs of the various FTAs such as the
ASEAN Australia and New Zealand FTA (AANZFTA), the ASEAN Japan
Comprehensive Economic Partnership (AJCEP) and the ASEAN-India FTA. It also
attended several meetings of the ASEAN Task Force on ROO.
Below are some of the major accomplishments of the Commission in the
field of foreign trade promotion:
MULTILATERAL TRADING ARRANGEMENT
Provided comments to the email of the Philippine Mission in Geneva on
the final review of PJEPA factual presentation;
Attended the PJEPA factual presentation in WTO, Geneva;
Submitted to the WTO Philippine Mission the Philippine applied tariff data
base for 2010 in the AHTN 2007/HS 2007 Nomenclature;
Responded to the letter request from DFA re Commission’s view on the
recently concluded 27th Session of the Global System of Trade among
Developing Countries (GSTP) Committee of Participants;
Replied to the e-mail of UNCTAD/WTO allowing the International Trade
Centre to make use of the Philippine MFN Schedule as submitted by the
Commission to the WTO-IDB from 2009 onwards;
Attended the WTO Regional Workshop on Market Access Related Issues
for Asian Economies in Vientianne, Lao PDR on 27-30 July 2010;
Participated in the 1st Advanced WTO Trade Policy Course in Geneva,
Switzerland from 13 September – 02 December 2010; and
Prepared submissions (tariff and related information) for the 2011
Philippine’s Trade Policy Review.
Page 15 Annual Report 2010
REGIONAL TRADING ARRANGEMENT
A. Association of Southeast Asian Nations (ASEAN)
The Commission, per requests from other agencies/parties, submitted comments and observations on the following:
Latest draft of the ASEAN Economic Community (AEC) Scoreboard, particularly on the Trade in Goods (TIG) which was circulated at the 59
th CCCA Meeting in Bali, Indonesia; and
Proposed amendments to the revised EOs on rice and sugar.
Conducted public hearing/ consultation on the request of the Philippines for the waiver of Common Effective Preferential Tariff for the ASEAN Free Trade Area (CEPT-AFTA) commitments on rice (AHTN Code 10.06) and sugar (AHTN Code 17.01);
Submitted to NEDA the Final Report on the results of public hearing/consultation concerning the requests of the Philippines for the waiver
INSERT PIC 3
Parties in attendance during the Section 402 public consulta-
tion regarding matters involving PJEPA (19 May 2010).
Page 16
of CEPT-AFTA Commitments on rice and sugar under Sections 401/ 402 of the Tariff and Customs Code, as amended;
Provided 2009 trade data to be included in the publication of the ASEAN scoreboard; and
Participated in the 56th to 59
th CCCA Meetings of the Coordinating
Committee on the Implementation of the Common Effective Preferential Tariff for the ASEAN Free Trade Area (CCCA).
B. ASEAN Trade In Goods Agreement (ATIGA)
The ATIGA is an improvement over the current CEPT-AFTA Scheme.
It consolidates ASEAN’s existing initiatives, obligations, and commitments
made with regard to both tariffs (trade in goods) and non-tariff elements (e.g.
trade disciplines on Sanitary and Phytosanitary (SPS) measures, customs
procedures, and trade facilitation) into one (1) comprehensive agreement.
ATIGA aims to establish all necessary measures and commitments to
enable ASEAN to achieve a free flow of goods in the region towards
establishing a single market and production base by 2015. It was signed in
February 2009 and entered into force on 17 May 2010 upon the notification
of the ratification of all ASEAN Member States.
Executive Order 850 implementing the commitment to reduce the
tariff rates on the remaining 20% of the products in the Inclusion List to zero
percent under the CEPT-AFTA/ATIGA was signed on 23 December 2009.
Under ATIGA, the Commission:
Actively participated in the Technical Committee Working Group (TCWG) activities related to the review of ATIGA Schedules; and
Prepared the draft Executive Order implementing the ATIGA.
Page 17 Annual Report 2010
C. ASEAN-China Free Trade Agreement (ACFTA)
Replied to the letter of BITR regarding their request for assistance to
verify the consistency of the formatted Product Specific Rules (PSRs)
submitted by China with the version finalized by the ASEAN Member
States (AMS);
Provided BITR with the results of the overall ratings of Sensitive List (SL) products under the ACFTA;
Attended the 34th ACTNC Meeting in Brunei on 3-5 March 2010;
Submitted to BITR the Philippines’ tariff data for the ACFTA Peer Review as agreed during the 34
th ACTNC Meeting in Brunei on 3-5
March 2010; and
Concurred with the 2nd
PROTOCOL to amend the agreement on Trade in Goods of the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and PROC.
D. ASEAN-Korea Free Trade Agreement (AKFTA)
Submitted report to NEDA on the results of the public consultation under Section 402 regarding Products in the Sensitive List of Korea requested to be permanently waived the Reciprocity Principle to compensate for the delay in the Philippine implementation of AKFTA-TIG;
Submitted to NEDA the Section 402 Report and Recommendation on the petition of New Leyte Edible Oil Mfg. Corp. together with PCOPA to transfer refined coconut oil (AHTH Subheading No. 1513.19.20) from Sensitive List (SL) to Normal Track (NT) under AKFTA for consideration of TCTRM. Submitted to NEDA the Draft Executive Order on the transfer of refined oil (AHTN subheading No. 1513.19.20) from the SL to the NT;
Page 18
Replied to the email of BITR regarding their request for Sub-COTT members to confirm/comment on the proposed product list for compensation to Korea and proposed additional lines to complete the list to approximate the total trade lost to Korea;
Submitted to NEDA the draft EO on AKFTA Compensation Package;
Responded to the E-mail of Republic of Korea Ministry of Strategy and Finance re inquiry on Philippine implementation of reciprocal tariff treatment on AKFTA under EO 638, and relevant tariff of some products specified; and
Provided BITR with Korea’s Tariff Reduction Schedule (TRS) for submission to ASEAN Secretariat.
E. ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)
Attended the 1st AANZFTA Joint Committee Meeting and AANZFTA
Outreach and Public Advocacy Workshop held on 24-28 May 2010 at Manila Peninsula.
F. ASEAN-Japan Comprehensive Economic Cooperation (AJCEPA)
Submitted to BITR the 2007 Transposed Philippine Tariff Reduction Schedule and the Two-Way Concordance Table for AJCEPA; and
Attended the 3rd
AJCEP Joint Committee Meeting held on 7-10 June 2010 in Tokyo, Japan.
G. ASEAN-India Free Trade Agreement (AIFTA)
Sent to BITR the Commission’s Certificate of Concurrence on the ratification of the Agreement Establishing the ASEAN-India Trade in Goods;
Submitted to BITR data, at the six-digit tariff line, on local availability and 2007-2009 trade data (import/ export) of the Philippines with India; and
Page 19 Annual Report 2010
Provided BITR data/information on degree of processing and availability of the products in the Philippines’ Exclusion List under AIFTA, and RP MFN rates for those lines specified in India’s Exclusion List under AIFTA.
H. ASEAN-European Free Trade Area (AEUFTA)
Attended AEUFTA Joint Committee Meetings.
I. Asia-Pacific Economic Cooperation (APEC)
Represented the Commission at various Technical Board on APEC Matters (TBAM) meetings.
Conducted public hearing/consultation on motor vehicles, components, parts and accessories and submitted to NEDA the final reports thereon;
Submitted to TRM Secretariat the corrected ANNEX to the draft EO on motor vehicles, components, parts and accessories incorporating BOI comments;
Attended PJEPA Sub-COTT meetings; and
Replied to BSP regarding their request for information on the net impact of tariff revenues of PJEPA in connection with 2010 IMF Article IV Consultation Mission.
III. TRADE REMEDY MEASURES
R.A. 8800 (Safeguard Measure Act)
The Act provides for general safeguard measures to relieve domestic
industries suffering from serious injury or threat thereof as a result of
increased importation.
Page 20
Maximum Extension of Safeguard Measure Against the Importation of Glass
On 23 November 2009, the DTI received a copy of the Commission’s Report of Findings on the petition for the final extension of the definitive safeguard measure on clear and tinted float glass from various countries.
Following Section 15 (3) of R.A. 8800 and its implementing rules and regulations, then DTI Secretary Peter B. Favila issued Orders dated 13 January 2010 extending the definitive general safeguard measure on imported glass products (clear and tinted float glass, and figured glass) for another four (4) years. The definitive general safeguard measure for the first year of the final extension period shall be in the amount of P3,404.64/MT for clear float glass and P4,300.59/MT for tinted float glass. The measure shall be subject to an annual review during the remaining years of the final extension period. However, the suspension of the imposition of the safeguard measure on figured glass will stay until the Secretary issues another Order either lifting or terminating the measure based on the result of the monitoring review to be conducted by the Commission after the first quarter of 2010 to determine whether Asahi Glass Philippines (AGPH) has complied with its commitment to resume production.
The Commission conducted ocular inspection of AGPH figured glass plant facilities on 6 April 2010 and 6 June 2010, and verification of accounting records to determine if the company has already resumed normal production of figured glass. Final Report on this was submitted to the DTI Secretary on 8 September 2010.
Petition for Application of Safeguard Measure Against the Importation of
Testliner Board from Various Countries
On 25 May 2010, the Commission received the DTI’s referral of the petition of the Philippine Testliner Board Industry. Thereafter formal investigation by the Commission commenced.
Preliminary Conference was held on 8 June 2010 to discuss the schedule and procedure of public consultation, the nature of administrative and fact-finding proceedings, the non-applicability of the technical rules of procedures under the Rules of Court, the submission of the parties’ evidences and position papers,
Page 21 Annual Report 2010
the non-availability of confidential information, the time frame of formal investigation, and other related matters necessary for the speedy disposition of the case.
Public hearings were conducted on 31 August and 1 September 2010, to allow interested parties opportunity to be heard and to present evidence, elaborate on their submissions and respond and seek clarifications on the presentations and submissions of the other parties.
Amended position papers were submitted to the Commission by the parties.
On 24 November 2010, the Commission submitted to the DTI Secretary its Formal Investigation Report. The Commission found the existence of a causal link between the increased imports and serious injury to the domestic industry and recommended a definitive general safeguard duty of P1,342/MT to be imposed on imports of testliner board effective for three (3) years counting from 16 September 2010, the date the provisional measure took effect.
Commissioner Marilou P. Mendoza (center) presides over the public con-
sultation on the petition for application for safeguard measure against the
importation of testliner board from various countries. Joining her are
Chairman Edgardo B. Abon (right) and Commissioner Edgardo R. Maralit
(left) (31 August 2010).
Page 22
Republic Act 8752 (Anti-Dumping Act of 1999)
The Anti-Dumping Act of 1999 provides protection to a domestic industry
against the unfair foreign trade practice of dumping.
Dumping Protest Against the Importation of Mosquito Coils from Indonesia
On 19 March 2010, the Commission received the DTI’s referral of the anti-dumping case filed by Green Coil Industries, Inc.
Preliminary Conference was held on 29 March 2010 to discuss the schedule and procedure of public consultation, the nature of administrative and fact-finding proceedings, the non-applicability of the technical rules of procedures under the Rules of Court, the submission of the parties’ evidence and position papers, the non-availability of confidential information, the time frame of formal investigation and other related matters necessary for the speedy disposition of the case.
INSERT PIC 5
The Collegial Body listens to the exchange of views presented during the
public consultation on the petition for application for safeguard measure
against the importation of testliner board from various countries (31 August
2010).
Page 23 Annual Report 2010
Public consultations were held on 24 and 26 May 2010. The consultations allowed interested parties opportunity to be heard and to present evidences, elaborate on their submissions and respond and seek clarifications on the presentations and submissions of the other parties.
Import entries on file with the Commission were encoded for purposes of estimating the landed cost and volume of imports. Ocular inspection of the plant facilities and verification of the accounting records of the petitioner were likewise conducted.
The Commission terminated its investigation on 4 August 2010 and submitted its Final Report of Findings to the Secretary of Trade and Industry on 9 August 2010. In its final determination, the Commission concluded that locally produced mosquito coil is a like product of imported mosquito coil from Indonesia, and the calculated margin of dumping was 0.61% of export price. The margin of dumping being de minimis, the petition for anti-dumping measure against the importation of mosquito coil from Indonesia was dismissed.
INSERT PIC 6
The Commission’s technical staff during the public hearing on the dumping
protest against the importation of mosquito coils from Indonesia (24 May
2010).
Page 24
IV. SECTION 1313-a - TARIFF COMMODITY CLASSIFICATION
The ASEAN Harmonized Tariff Nomenclature (AHTN) Tariff and Customs
Code of the Philippines (TCCP) classifies articles imported into the Philippines.
However, when the proper tariff classification of a commodity being imported or
intended to be imported cannot be ascertained, the interested party may file with
the Tariff Commission a request for a commodity classification ruling pursuant to
Section 1313-a of the Code.
The applicant is required to submit in triplicate a notarized and duly
accomplished TC Form 1 (Request for Tariff Classification Ruling). Likewise, he is
required to submit a sample or samples of the product (if available), technical
brochures/catalogues indicating its specifications, its material or chemical
composition and other relevant information.
The Commission is invited as a resource body to the Bureau of Customs
Valuation and Classification Review Committee (VCRC) which meets as often as
necessary to resolve issues involving valuation and tariff classification.
During the period covered, the Commission received two hundred sixty four
(264) requests for tariff classification, and issued two hundred twenty seven (227)
classification rulings.
ASEAN Harmonized Tariff Nomenclature (AHTN) and the World Customs
Organization (WCO) Harmonized System (HS) Nomenclature
The Harmonized Commodity Description and Coding System (popularly
known as the HS) is an international nomenclature of goods used by more than 200
countries as a basis for uniform classification and coding of merchandise for
purposes of customs tariff collection and for gathering international trade statistics.
After the implementation of the HS in 1988, major reviews were undertaken which
resulted in the 1996, 2002 and 2007 versions. The third major revision entered into
force on 1 January 2007. The Philippines implemented these amendments in
January 2008 in accordance with the Resolution of the NEDA Board in its meeting
on 18 September 2007.
Page 25 Annual Report 2010
The ASEAN member countries adopted the Protocol Governing the
Implementation of the ASEAN Harmonized Tariff Nomenclature (the AHTN
Protocol) signed on 07 August 2003 in Manila, to harmonize the tariff nomenclature
based on the HS. The AHTN adopted the HS up to the six-digit commodity
classification codes and used the eight-digit commodity classification code for the
ASEAN requirements. To reflect its required national tariff lines not included in the
ASEAN nomenclature, the Philippines added an alpha numeric code after the 8-
digit code.
In view of the amendments made by WCO to the HS which will take effect on
1 January 2012, an AHTN Task Force was created by ASEAN to review the AHTN
2007/1.
The Commission, as the lead agency for the Philippines, attended the 2nd,
3rd,
4th and
5
th Meetings of the AHTN Task Force held in Malaysia, Laos, Vietnam
and Singapore respectively.
Other related activities undertaken by the Commission with regard to the
HS/AHTN 2007 implementation include the following:
Preparation of comments on the AHTN 2012 Amendments;
Implementation of the commitment to reduce tariff rates on certain products included in the agreement between the Philippines and Japan (JPEPA);
Conducted a line-by-line review of Section 104 (Rates of Import Duty) of the Tariff and Customs Code in drafting the Executive Order on 2010 Comprehensive Tariff Review; and
Information dissemination through seminar/workshops in various ports, review schools and other agencies.
Page 26
Assistance to the Philippine Trade Mission in Geneva
Reviewed and classified the Philippine Indicative List of Environmental Goods for the WTO Committee on Trade and Environment Special Session that will be offered for immediate reduction;
Reviewed and prepared comments, as requested by the Philippine Trade Mission, on the transposition of the Consolidated Tariff Schedules (CTS) of the Philippines and various WTO member countries relative to their commitments under the WTO; and
Submitted comments on the 2012 proposed classification of articles and amendments to the HS Nomenclature and Explanatory Notes for discussion in the HS Committee meetings.
Insert extra pic
Ms. Elvira Ignacio, Mr. Ramiro Cruz and Ms. Aiza Maris Cagalawan (TC technical
staff, fourth, third and second from left) during the ocular inspection of plant facili-
ties of Philippine Resin Industries, Inc. in Mariveles, Bataan (8 April 2010).
Page 27 Annual Report 2010
V. SECTION 506 – ASSISTANCE TO THE PRESIDENT AND CONGRESS OF
THE PHILIPPINES
House/Senate Bills/Resolutions and
Other Committee Concerns
Comments/Recommendation/
Inputs of the Commission
House Bill No. 46 (“An Act Strengthening the Anti-Smuggling Mechanism, Amending for the Purpose Certain Provisions of Presi-dential Decree No. 1464, Otherwise Known as the Tariff and Customs Code of the Phil-ippines, as Amended, and for Other Pur-poses”), introduced by Representative Rufus B. Rodriguez and Representative Maximino B. Rodriguez.
House Bill No. 114 (“An Act Further Strengthening The Anti-Smuggling Mecha-nism, Amending for the Purpose Certain Provisions of Presidential Decree No. 1464, Otherwise Known as the Tariff and Customs Code of the Philippines, as Amended, and for Other Purposes”), introduced by Repre-sentative Pedro P. Romualdo.
House Bill No. 171 (“An Act Further Strengthening The Anti-Smuggling Mecha-nism, Amending for the Purpose Certain Provisions of Presidential Decree No. 1464, Otherwise Known As the Tariff and Cus-toms Code of the Philippines, as Amended, and for Other Purposes”), introduced by Representative Eric Owen Singson, Jr.
House Bill No. 572 (“An Act Further Strengthening the Anti-Smuggling Mecha-nism, Amending for the Purpose Certain Provisions of Presidential Decree No. 1464, Otherwise Known As the Tariff and Cus-toms Code of the Philippines, as Amended, and for Other Purposes”), introduced by Representative Juan Edgardo M. Angara.
The Commission is in full support of its inclusion as a permanent member of the Valuation and Classification Review Committee (VCRC). The Commission believes that the ac-quired expertise and experience of the Commission official who will be appointed as member of the VCRC will surely be of help to the VCRC, especially when the issue involved pertains to that of classification of an imported article or commodity.
With respect to Section 1313-A, the Commission supports the strengthen-ing of said Section and the affirma-tion of the Commission as the sole and exclusive authority in respect to tariff classification determination.
The inclusion of the appellate proc-ess in cases of questions posed on issued tariff classification rulings adds another layer of due process to party-applicants of classification rul-ings filed at the Commission.
Finally, it is suggested that the provi-sion on various fraudulent practices against customs revenues should in-clude the act of making, declaring false classification as to the commod-ity’s correct tariff heading as detailed in the import entry. In this way, the loophole of the law in the drive of the government to stop technical smug-gling would be plugged.
Page 28
House/Senate Bills/Resolutions and
Other Committee Concerns
Comments/Recommendation/
Inputs of the Commission
House Bill No. 1694 (“An Act Further Strengthening the Anti-Smuggling Mecha-nism, Amending for the Purpose Certain Provisions of Presidential Decree No. 1464, Otherwise Known as the Tariff and Customs Code of the Philippines, as Amended, and for Other Purposes”), introduced by Repre-sentative Lorenzo R. Tanada III and Repre-sentative Nicanor M. Briones.
House Bill No. 3055 (“An Act Amending Certain Provisions of Presidential Decree No. 1464, Otherwise Known As the Tariff and Customs Code of the Philippines, as Amended”), introduced by Representative Salvador H. Escudero.
House Bill No. 549 (“An Act Prohibiting Mo-nopolies, Attempt to Monopolize an Industry or Line of Commerce, Manipulation of Prices of Commodities, Asset Acquisition and Interlocking Memberships in the Board of Directors of Competing Corporate Bodies and Price Discrimination Among Custom-ers, Providing Penalties Therefore, and For Other Purposes.”), introduced by Represen-tative Juan C. Ponce Enrile, Jr.
House Bill No. 913 (“An Act Penalizing Un-fair Trade and Anti-Competitive Practices in Restraint of Trade, Unfair Competition, Abuse of Dominant Power, Strengthening the Powers of Regulatory Authorities and Appropriating Funds Therefor, and For Other Purposes.”), introduced by Represen-tative Susan A. Yap.
The Commission fully supports the passage of the bills. No less than President Aquino has emphasized in his first State of the Nation Ad-dress the pressing need for the enactment by Congress of an anti-trust/fair competition law that would address problems posed by monopolies and unfair competition which are stunting the growth of our country.
Page 29
House/Senate Bills/Resolutions and
Other Committee Concerns
Comments/Recommendation/
Inputs of the Commission
House Bill No. 1007 (“An Act Penalizing Unfair Trade and Anti-Competitive Prac-tices in Restraint of Trade, Unfair Compe-tition, Abuse of Dominant Power, Strengthening the Powers of Regulatory Authorities, Establishing the Fair Trade Commission, Appropriating Funds There-for, and For Other Purposes.”), intro-duced by Representative Antonio C. Alva-rez.
House Bill No. 1583 (“An Act Penalizing Unfair Trade and Anti-Competitive Prac-tices in Restraint of Trade, Unfair Compe-tition, Abuse of Dominant Power, Strengthening the Powers of Regulatory Authorities and Appropriating Funds Therefor, and for Other Purposes.”), intro-duced by Representative Diosdado Macapagal Arroyo and Representative Gloria Macapagal Arroyo.
House Bill No. 1733 (“An Act Amending Act No. 3815, Also Known as the Revised Penal Code, as Amended, Article 186 on Monopolies and Combinations in Re-straint of Trade.”), introduced by Repre-sentative Marcelino R. Teodoro.
All the bills collectively and uniformly introduce legal and regulatory frame-work for anti-trust and competition enforcement. It is suggested, how-ever, that the anti-trust law be gen-eral and comprehensive in applica-tion, bearing in mind the factors af-fecting the state of competition and what should be the objectives of competition policy that may contain rules governing monopolies and car-tels, restrictive agreements, mergers and acquisitions, and provisions identifying outright prohibitions of clearly unfair competition practices, all aimed at preventing exploitative and exclusionary abuses. These rules, where possible, should identify per se prohibitions so as to simplify some of the tasks. For other cases, rule of reason allows for limitation in competition where justified. There should, however, be transparency in the procedures, with all guidelines published. All possible courses of actions should be clear, in terms of remedies (judicial and administrative) and/or penalties for those found to be in violation of the anti-trust law.
Annual Report 2010
Page 30
House/Senate Bills/Resolutions and
Other Committee Concerns
Comments/Recommendation/
Inputs of the Commission
House Bill No. 1980 (“An Act Penalizing Unfair Trade and Anti-Competitive Prac-tices in Restraint of Trade, Unfair Compe-tition, Abuse of Dominant Power, Strengthening the Powers of Regulatory Authorities, Establishing the Fair Trade Commission, and Appropriating Funds Therefor, and For Other Purposes.”), in-troduced by Representative Rufus B. Rodriguez and Representative Maximo B. Rodriguez.
House Bill No. 3100 (“An Act Penalizing Unfair Trade and Anti-Competitive Prac-tices in Restraint of Trade, Unfair Compe-tition, Abuse of Dominant Power, Strengthening the Powers of Regulatory Authorities and Appropriating Funds Therefor, and For other Purposes”), intro-duced by Representative Albert Raymond S. Garcia.
House Bill No. 3134 (“An Act Penalizing Unfair Trade and Anti-Competitive Prac-tices in Restraint of Trade, Unfair Compe-tition, Abuse of Dominant Power, Strengthening the Powers of Regulatory Authorities and Appropriating Funds Therefor, and For Other Purposes”), in-troduced by Representative Alfredo B. Benitez.
The anti-trust law should endow sole investigative and quasi-judicial powers to an independently created and politically insulated Fair Trade Commission so as to afford the lat-ter all the flexibilities that it will need in the discharge of its mandate.
Page 31
House/Senate Bills/Resolutions
and Other Committee Concerns
Comments/Recommendation/
Inputs of the Commission
H o u s e R e s o l u t i o n N o . 5 0 (“Resolution Urging the Committee on Ways and Means to Conduct an Inquiry in Aid of Legislation to Re-solve the Issue on the Smuggling Ac-tivities and Undervaluation on Steel Imports Into the Country”), introduced by Representative Rufus B. Rodri-guez and Representative Maximo B. Rodriguez, Jr.
The Commission supports the laudable action made by the House of Represen-tatives in conducting investigation, in aid of legislation, on the problem besetting the steel industry particularly on smug-gling and undervaluation problems. Bold measures should be undertaken so as to provide a solution to persistent smug-gling so as to provide protection against unfair trade activities in favor of the do-mestic steel industry and for the govern-ment in turn to collect the correct reve-nues as well.
At any rate, it is the Bureau of Customs which is the implementing office regard-ing any problems caused by smuggling and undervaluation activities. The Com-mission may, however, be of help to the domestic steel industry in terms of lend-ing support in cases of unfair trade ac-tivities as provided under R.A. No. 8752 or the Anti-Dumping Act of 1999. The industry may also file a petition for safe-guard measure under R.A. No. 8800 in cases of fairly traded activities which re-sult in a surge of imports that causes in-jury to the domestic industry.
House Resolution 141 (“Resolution Urging President Benigno C. Aquino to Revoke Executive Order No. 862 and Re-Impose the Five Percent (5%) Duty on Imported Cement), in-troduced by Representative Rufus B. Rodriguez and Representative Maximo B. Rodriguez, Jr
Under Executive Order No. 862, issued on 19 February 2010, the zero duty was effective for six months, subject to fur-ther review. EO 862 took effect on 26 February 2010 following its complete publication on 25 February 2010 in the Manila Times. Thus, the zero duty was effective up to 26 August 2010. Thereaf-ter, the duty reverted to 5%.
Annual Report 2010
Page 32
House/Senate Bills/Resolutions and
Other Committee Concerns
Comments/Recommendation/
Inputs of the Commission
The Commission pursuant to Section 401 of the Tariff and Customs Code, conducted a public hearing on 28 July 2010 to review the need to extend the zero duty on cement. The Commission report was initially taken up by the Technical Committee on Tariff and Re-lated Matters (TCTRM) then forwarded to the Cabinet Tariff and Related Mat-ters Committee (CTRM) before final de-cision by the NEDA Board.
Feasibility of Amending Section 105 (f) of the Tariff and Customs Code of the Philippines, as Amended
Section 105 (conditionally-free importa-tion), paragraph (f) was amended by Executive Order No. 206 issued by President Corazon Aquino on 30 June 1987. In issuing E.O. 206, the govern-ment was guided by the following prin-ciples:
The need to adjust to a realistic level the maximum dutiable value of conditionally-free im-portations of personal and household effects belonging to residents of the Philippines re-turning from abroad;
To set the conditions on condi-tionally free importations under Section 105 (f) of the Tariff and Customs Code of the Philip-pines so that abuses thereof would be curbed;
Page 33
House/Senate Bills/Resolutions and
Other Committee Concerns
Comments/Recommendation/
Inputs of the Commission
To recognize the contribution of the OFWs; and
To assist local manufacturers and generate employment.
The Commission believes that the pa-rameters as set forth under E.O.206 is reasonable and justified, given the possibility of abuse attendant to such duty free importations. Likewise, any perceived amendments to the provi-sions of the Tariff and Customs Code of the Philippines can only be made through an amendatory law passed by Congress.
Possibility of Imposing 10% to 20% Tariff on the Importation of Ethanol; and Current Tariffs in Other Countries
The specific tariff line of interest to bio-ethanol producers is AHTN subhead-ing No. 2207.20.11 which has a 10% MFN rate. A lower duty of 1% is levied if :imported with certification from the Department of Energy (DOE) that the article will be used for the Fuel Ethanol Program. The certification is given by DOE to oil companies when there is a shortage of supply as determined by the National Biofuels Board (NBB). The MFN, WTO bound rate and cur-rent preferential tariffs under various FTAs are as follows:
AHTN Code: 2207.20.11
Description: ---Ethyl alcohol of an al-coholic strength by vol-ume exceeding 99% vol.
Annual Report 2010
Page 34
House/Senate Bills/Resolutions and
Other Committee Concerns
Comments/Recommendation/
Inputs of the Commission
2010 MFN Rate: 10 /c
2010 CEPT/ATIGA Rate: 0
2010 WTO Bound Rate: 45
2010 ACFTA Rate: 5
2010 AKFTA Rate: 0
2010 JPEPA Rate: 7
2010 AANZFTA Rate: 5
2010 AJCEPA Rate: 7
The request of bioethanol producers to increase the MFN from 10% to 20% is under consideration by the Technical Committee-Tariff and Related Matters (TCTRM). Under the ongoing compre-hensive tariff review to set the MFN tar-iffs for years 2011-2015, the TCTRM will submit its recommendation to the TRM Cabinet Committee and then to the NEDA Board.
Based on NBB’s presentation during the public consultation for Metro Manila held on 13 October 2010, on the Bio-ethanol Mandate, actual domestic pro-duction cannot meet total volume de-mand and thus there is still a need for oil companies to import the volume deficit.
/c - 1% when imported with certifica-tion from the Department of En-ergy (DOE) that the articles will be used for the Fuel Ethanol Pro-gram
Page 35
VI. ADVOCACY
In line with its mandate under Section 1 (1.6) of EO No. 143 entitled
“Instituting Effective Operational Mechanism and Strategies in the Tariff
Commission,” the Commission vigorously pursued its continuing advocacy calendar
on the latest developments relating to tariffs and trade both in the local and
international trading fronts. As part of the Commission’s nationwide advocacy
program, the Commission acceded to requests for briefings/lectures from various
educational institutions and organizations as shown below:
INSERT PIC 7
TC staff from the Research, Investigation and International Trade Analysis Service lec-
ture on the various FTAs and tariff classification to students from Lyceum University (8
September 2010) and Llave Review Center (12 November 2010), respectively, during
the briefings on latest developments on trade and tariff policy.
INSERT PIC 8
Annual Report 2010
Page 36
Lecture on Trade Remedy Measures, Implementation of the 2007 ASEAN
Harmonized Tariff Nomenclature (AHTN), Rules of Origin, Free Trade
Agreements
Lyceum University, Manila Students
TC Conference Room
8 September 2010
Seminar-Workshop on Tariff Classification, HS/AHTN 2007 Amendments,
Introduction to Rules of Origin, International Trade Agreements
Iloilo College Students
TC Conference Room
1 October 2010
Briefing on the Tariff Commission: Organization, Functions and the Latest
Developments in Trade and Tariff Policy
Llave Review Center Students
TC Conference Room
12 November 2010
Lectures on the various Free Trade Agreements
Iloilo - 12 November 2010
Zamboanga - 19 November 2010
Davao - 22 November 2010
Cebu - 23 November 2010
Legaspi City - 26 November 2010
Tagaytay - 29 November 2010
Page 37
Cagayan de Oro - 2 December 2010
Baguio - 7 December 2010
General Santos City - 9 December 2010
Clark - 14 December 2010
VII. OTHER ACTIVITIES
A. Competition Policy
The Commission:
Attended the Workshop on Roadmap for Capacity Building of ASEAN
Experts Group on Competition (AEGC), 21-24 February 2010, Kuala
Lumpur, Malaysia;
Attended the 5th ASEAN Experts Group on Competition (AEGC)
Meeting, 18-21 March 2010, Hanoi, Vietnam;
INSERT PIC 9
Students from Iloilo Colleges during a briefing conducted
by TC technical staff on the latest developments on trade
and tariff policy (1 October 2010).
Annual Report 2010
Page 38
Attended the 2nd
Workshop Group on Developing Handbook on
Competition Policy and Law for Businesses (26-27 April 2010, Siem
Reap, Cambodia);
Drafted and finalized the TC position on the comments made by the
BITR on the final draft of the ASEAN Regional Guidelines on
Competition Policy;
Secured the final approval of the ASEAN Regional Guidelines on
Competition Policy from the SUBCOTT Members;
Attended and provided inputs to the ASEAN Regional Guidelines on
Competition Policy which was finalized at the 3rd
Workshop in
Singapore;
Drafted and finalized the TC input regarding the proposed text in the
Chapter on Competition Policy as appearing in the RP-EU
Partnership and Cooperation Agreement (PCA);
Prepared comments to the Philippine Chapter of the Draft Regional
Handbook on Competition Policy and Law for Business before it was
finalized and subsequently launched in Da Nang, Vietnam;
Prepared and submitted to the ASEAN Secretariat the concept
programme for the joint launching in the Philippines of the Regional
Guidelines on Competition Policy and Handbook on Competition
Policies and Laws in ASEAN for Businesses;
Attended the 7th AEGC Capacity Building Workshop at Negana,
Brunei, Darussalam on 5-8 July 2010;
Prepared and submitted to the ASEAN Secretariat comments/inputs
for discussion in the 7th Capacity Building Workshop (“Best Approach
for Establishing Competition Policy and Law in Small and Developing
Economies”);
Page 39
Invited selected government agencies/private and business
associations for the Joint Socialization Workshop on the ASEAN
Regional Guidelines on Competition Policy and Handbook on
Competition Policy and Law in ASEAN for Business at EDSA Shangri-
la Hotel;
Attended the Launching Ceremony of ASEAN Regional Guidelines on
Competition Policy and Handbook on Competition Policy and Law in
ASEAN for Business at Da Nang, Viet Nam, on 24 August 2010;
Attended the East Asia Top Level Official’s Meeting in Seoul, Korea
and Asean Plus – Working Group on Tariff Nomenclature; and the
meeting on Competition Policy/Law (Philippines) in Vietnam;
Prepared reply to the ASEAN Secretariat requesting feedback on
whether the priority needs of each of the ASEAN Member States
(AMSs) have been reflected in the draft Report on Roadmap of
Capacity Building of AEGC;
Prepared reply to the Office of the ASEAN Affairs, Department of
Foreign Affairs on the Commission’s revised project proposals [High-
Level ASEAN Experts Group on Competition Meeting and ASEAN
Experts Group on Competition (AEGC) Task Force Meeting];
Drafted and finalized the presentation of the Commission with regards
to the upcoming 6th East Asia Top Level Official’s Meeting at Seoul,
Republic of Korea on Competition Policy;
Participated in the discussions of the Technical Working Group
working on the draft Competition Bill pending deliberation at the
House of Representatives;
Provided inputs to the ASEAN Secretariat for the matrix of priority list
on the AEGC Capacity Building Roadmap (National Level);
Participated as speaker on competition policy law status in the
Philippines at the 4th Round Table Discussion hosted by the Fair
Trade Alliance;
Annual Report 2010
Page 40
Participated as speaker in the Forum on Philippine Competition Policy
sponsored by the Asian Institute of Management in partnership with
the Konrad Adenauer Stiftung and IDEALS;
Attended the Special Meeting of the ASEAN Experts Group on
Competition (AEGC) at Da Nang, Vietnam on 24-25 August 2010;
Attended the meetings of the Working Groups on: Developing ASEAN