EXECUTIVE ORDER NO. 1073
EXECUTIVE ORDER NO. 1073 -
PRESCRIBING SAFEGUARDS FOR DOMESTIC INDUSTRIES UPON THE LIFTING OF
IMPORT LICENSING FOR CERTAIN PRODUCTS
WHEREAS, the lifting of redundant
import licensing is an important component in the economic recovery
program;
WHEREAS, domestic industries need to be assured of effective tariff
protection and efficient mechanisms against unfair trade practices of
some countries and/or unscrupulous activities of certain importers;
WHEREAS, certain provisions of the Tariff and Customs Code need to be
clarified for the effective implementation of the anti-dumping measure
and customs valuation procedures;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, by Sec. 401 of Presidential Decree No. 1464 and by Presidential Decree No.
1416, as amended, do hereby order and ordain:
I.
LIFTING OF REDUNDANT IMPORT LICENSING
Section 1. The Central Bank shall eliminate import
licensing requirements prescribed under Central Bank Circular No. 1029
for all products, except for such products as may be determined by the
Ministry of Trade and Industry to require continued regulation of
imports, in view of production and market considerations, for a period
of one year, unless otherwise extended upon recommendation by the
Ministry of Trade and Industry after consultation with the private
sector and other agencies concerned.
II.
ESTABLISHMENT OF AN ANTI-IMPORT SURGE MECHANISM
Sec. 2. The Central Bank upon determination by the
Ministry of Trade and Industry of an unreasonable surge in imports of
any product, which injure or is likely to injure a local industry
and/or the economy in general, shall immediately prescribe the
monitoring of imports by an appropriate government agency, by requiring
importers to secure the approval of the designated agency prior to
undertaking importation through letters of credit, D/A, O/A, and other
arrangements, for the purpose of averting irreparable damage to the
local industry.
The Ministry of Trade and Industry shall determine and accordingly
recommend to the Central Bank the termination of such monitoring of
imports when the domestic industry shall have achieved a stable
production level and when the market for its product(s) shall have
normalized.
III. CREATION OF THE IMPORT VALUATION REVIEW COMMITTEE
Sec. 3. An Import Valuation Review Committee is
hereby created composed of a representative of each of the Board of
Investments, as Chairman, Bureau of Customs, and Central Bank and two
representatives from the private sector, one representing the domestic
manufacturers and the other representing the importers. The Committee
shall hear complaints of domestic manufacturers regarding import
valuation of particular commodities. The Committee shall submit its
findings on any improper valuation to the Commissioner of Customs who
shall act immediately to resolve the matter.
IV.
CREATION OF AN INTER-AGENCY INSPECTION TEAM
Sec. 4. An Inter-Agency Inspection Team composed
of representatives of the Ministry of Trade and Industry as Chairman,
the Bureau of Customs, and the Central Bank is hereby created to
conduct on the spot investigation of traders, wholesalers, retailers
and other parties reported to trade and/or to be in possession of goods
imported in violation of import licensing and Customs regulations. For
this purpose, the Team shall have the authority to require suspected
violators to present proof of authorized importation of products. The
Team, upon deputization by the Bureau of Customs, shall be empowered to
seize said products in the event that the suspected violators are
unable to prove authorized importation of said products and/or
compliance with import and customs procedures. The Team may be provided
with the necessary military or police assistance if warranted.
V.
STRENGTHENING ANTI-DUMPING MEASURE
Sec. 5. The Ministry of Trade and Industry is
hereby authorized to certify to the existence of a prima facie case of
dumping. Upon receipt of such certification from the Ministry of Trade
and Industry, the Ministry of Finance, through the Bureau of Customs,
shall require the owners, importers, consignees, or agents, of the
product in question from the country which is the subject of the
anti-dumping protest, to file a bond in the amount equal to twice the
estimated dutiable value of the articles in question, in accordance
with Sec. 301e of the Code, prior to release by the Bureau of the
import shipments of such products.
Sec. 6. To effectively implement the provisions of
the Presidential Decree No. 1999 on anti-dumping and to improve the
effectiveness and efficiency of anti-dumping procedures, the following
are hereby adopted:
a)
Where the home consumption value of the product which is the subject of
an anti-dumping protest is unreliable, the export price of such product
or of like articles exported to countries other than the Philippines
may be used as the fair market value of such product, provided that
such price is a reliable price. In the absence of a determinable
reliable price, the Ministry of Trade and Industry shall determine and
establish the home consumption value.
b)
State-controlled economies, for purposes of Sec. 301 of the Tariff
and Customs Code, shall include countries whose production and export
of the product in question are effectively controlled by the government
of the exporting country. For this purpose, the Tariff Commission shall
consult appropriate government agencies particularly the Ministry of
Trade and Industry, in determining the existence of effective control
of a particular industry or economic sector by the government of the
exporting country.
c) The Tariff
Commission, in determining the fair market value of a product which is
the subject of an anti-dumping protest, pursuant to Sec. 301 of the
Tariff and Customs Code, can impute comparable domestic costs in
determining the cost of production of such product in case data on the
actual cost of production is not available.
d) Where it is
not possible for the Tariff Commission to determine the fair market
value of a product which is the subject of an anti-dumping protest
using the procedures provided in Presidential Decree No. 1999, the
Commission may request the Ministry of Trade and Industry to determine
the fair market value of such product, which determination shall be
final and conclusive.
e) The Tariff
Commission shall have the power to adopt a reasonable compromise by the
concerned parties on the fair market value of the product which is the
subject of an anti-dumping protest, which value shall be the basis for
determining the dumping duty which shall be imposed on exports from the
country in question, in order to facilitate the conclusion of the case.
VI.
STRENGTHENING COUNTERVAILING MEASURE
Sec. 7. The Ministry of Trade and Industry is
hereby authorized to certify to the existence of a prima facie
countervailing case against any article imported into the country and
which is directly or indirectly granted bounty, subsidy of subvention
upon its production, manufacture or exportation in the country of
origin and/or exportation. Upon receipt of such certification from the
Ministry of Trade and Industry, the Ministry of Finance through the
Bureau of Customs, shall immediately require the filing of
countervailing bonds for importations entered during the pendency of
the countervailing proceedings.
VII.
DISPOSAL OF ABANDONED AND SEIZED PRODUCTS
Sec. 8. Where an importer abandons of shipment of
the product which is the subject of an anti-dumping protest, the Bureau
of Customs shall export such products directly or through the
appropriate government agency or sell the product with reference to an
injured party (local producer) at a negotiated price, taking into
consideration potential revenue to the government and the damages due
to lost production.
Sec. 9. Any product subject to import licensing
but imported without prior clearance of the designated import
regulating or monitoring agency, as provided for in Section 1 and 2 of
this Executive Order, shall be seized by the Bureau of Customs, which
shall then export such products directly or through the appropriate
government agency or sell the product with preference to an injured
party (local producer) at a negotiated price taking into consideration
potential revenues to the government and the damages due to lost
production.
Sec. 10. Suppletory Provision. — The provisions of
Sec. 8 and 9 notwithstanding, the Bureau of Customs may apply
Sec. 2603 and relevant provisions of the Tariff and Customs Code on
the disposal of abandoned and seized products when it deems it a more
appropriate procedure under the circumstances.
VIII.
COMPLIANCE WITH PRODUCT QUALITY STANDARDS
Sec. 11. As may be determined by the Ministry of
Trade and Industry, imports of any item may be required to meet product
quality standards set by the Product Standards Agency and/or
appropriate agencies.
IX.
OTHER PROVISIONS
Sec. 12. The provisions of LOI 1255 as amended by
LOI 1294, LOI 658-B, LOI 964 as amended by LOI 1108, LOI 389 as amended
by LOI 1086, LOI 1367, PD 704, and other issuance inconsistent with
this Executive Order are hereby repealed or amended accordingly.
Sec. 13. Effectivity. — This Executive Order shall
take effect on January 1, 1986.
Done in the City of Manila,
this 16th day of December, in the year of our Lord, nineteen hundred
and eighty-five.
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Since 19.07.98.