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Excise - Custom

The document outlines the regulations and details regarding excise taxes in the Philippines, including definitions, applicable goods, and tax rates. It specifies the different categories of excise taxes, such as those on alcohol, tobacco, petroleum products, and sweetened beverages, along with their respective rates and filing requirements. Additionally, it describes the responsibilities of taxpayers and the procedures for filing returns and paying taxes.

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11 views14 pages

Excise - Custom

The document outlines the regulations and details regarding excise taxes in the Philippines, including definitions, applicable goods, and tax rates. It specifies the different categories of excise taxes, such as those on alcohol, tobacco, petroleum products, and sweetened beverages, along with their respective rates and filing requirements. Additionally, it describes the responsibilities of taxpayers and the procedures for filing returns and paying taxes.

Uploaded by

nnrs98n4sh
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
1% THE Fung mA neg MOE fle. — hy erwise permits, eve ™ ~ E¥ELY perso © taxes may, athis opti 5M liable ge Co Seay TNS OPO. lea separate py or places of bi consolidated en More Me ar places of business with an athens rah authorized treast yn We Collectio, BM a Calton map care a ofa an anne the ens etting fram busines ee pay the ox due ae cer, eye? ly business. (See Sec. 128[4]) YS me Bt ga G. EXCISE TAXES ON CERTAIN 6000, S ‘Meaning of excise taxes. aheate on a usual a 2 sens aso ana nantod consumption of for any other diet — ipod and ee ne SEP an = Peto nn te nt ic Wen cng ws ta 2 te We tig te nang ns a Pe fe oor o property tax. (see Chap. I-B.) . ing to su “privil recone Nature of exciso taxes, Eacise asi : taxes imposed by the Tax Code ae fd subjecting diet tre therefore txea om property Bes 1 Thy qc oneimposed and based on weight o crc gone nsainol messes ee cr one imposed and based on 2 @ Mie eid oye of the goods or services eee Excise taxes apply: manufactured or produced in the nati sale or consumption or for any ber . ‘/(p)_tothings in (oto services ren ported from foreign countries; dered in the Philippines (Sec. 129) stations, the tax shall be in addition spanecstoms duties [Link], goods seo) tothe are also subject to value-added tx (VAT) (Gee. 129) tocally produced or manufactured arermoved for exportation and are actualy exported to the Philippines, whether so riginal state of as ingredients or ncise tax paid on subiasion ofthe prof actual exportation and fi receipt ofthe foreign exchange payment. The tx tretrrefundable or creditable ifthe goods exported are mineral products, except coal (@) In particular. — articular goods or articles subject Hand coke. (See; 130(D].) ‘The Tax Code enumerates the jo excise taxes, namely THEPUND AMEN Oey i, (2) Alcohol products. — (ST/AV), wines (ST/AV), an, a ae 2 dy cena), TOME rods. — They ing tings, etc. : eee ee tare SD) And cpa led ed quan (©) Petroleum products lubricating oil and greases, processeq °° Processed gas, petolatum, denatured alcohol to be ay ‘aN ad power, naphtha, gasoline, kerosene, for moti iquefied petroleum gas, aviation turby ne fuel il, and asphalts (ST); ‘el bine (@)_ Miscellaneous atces and goods automobiles (AV); and non-essenticl ga MY te jewelry, whether real or imitations, patie nig semi-precious stones and imitations theron os? meta or imitations theo, sch as gal ania a glasses, lorgnettes, perfu sive and yachts and other vesels intend me 2% or sports (AV); and sweetened beverages ea sweetened juice drinks and tea, carbonated bene roared drinks ot clase a ml ero and other non-alcoholic beverages tot cay rd oer nom aeoolic erage at ms (©) Nonessential. service, mance a — Perfor services| on invasive cosmetic procedures su : body enhancements solely to improve patient appearance, excluding procedures to ameliorate « eformity resulting from an accident or ta : lisfiguring disease or infection; (9) Mineral products. — They ai my bare mies uurces (AV), and indigenous sour (40 igenous petroleum (AV), (ce subject to either specific tax or ad pose ance der (a oF (b) ofNo. () above vent on ie, other articles are not tax on automobiles. No. 10963 (TRAIN), the frst bracket which under es witha ‘manufacturer's orimporter’s ide gup 10 P600,000 ess is taxed at eon ‘pracket which includes cars priced at more ie taxed at10%) ? Jes with price of over PI million toP& milion, is 20% ee ea bracket includes all vehicles with a price in _ervjhunilion, which are txed at 7% (6eSe 18) Cog vehieles shall be subject t050% the applicable jd vehicles % Hybrid automobiles. Purely electric vehicles and. oe ‘exempt from excise tax on automobiles, fem is ad valorem or based on the yalue. arn elle while the previous system (before R.A. No 4) is based on the size of the engine and the type of fuel (gasoline or diesel) used. How rates of specific tax levied. ‘The specific tax derives its name from the fact that its rates are of a specific or fixed amount of pesos and/or ‘entavos levied on the articles enumerated according to a ‘certain physical unit of measurement, as follows: (1) Volume, asin the case of distilled spirits (Sec. 141, Ibid), wines (Sec. 142.), fermented liquor (Sec. 143), and petroleum products (Sec. 148.) THE FUNDAMENTALS, ww OF oy 2) Length, as in the case of tx former} cinematographic Als: (6). Weight ain the case of manufactured tobacco SH), and coal and coke (See. 151) eo a), Number, a i the case of cigars and oy ews ere In the case ofa valorem tax, the amounts the pies ofthe articles move up and down ga ee eee imposed og Rates and bases of excise taxes, J) Disiled sir. — Etective January 1, am exci taxis ana aren tox evant to So ae mal price (ecding the exve ax and Ya oe tnd ination specie tx per roa iter of Pe (2022); P59.00 (2023) and 66.00 (2024). me Examples of distilled spirits are whiskey, bran gn ame hey, brandy rum VQ) Wines. ~The excise tax is P 50.00 computed liter of volume capacity effective on January 1, 2069." ‘Therate of tax shall be increased by 6% every year thereat VO). Fermented liquor. — The excise tax is based og the net rel price per iter of tohume sey ae on January 1,2020, the tax shall be P35 00.37.00 effeine (2021), P39.00 (2022), P41.00 (2023), and P4S.00 (2024) The ‘ates shal be increased by 6% every year thereaterefecine on January 1,2025, (Sec. 143.) Examples of fermented liquor are bee, aleand excep ib, bs, tp, and smalar domes Toren liquors. (See. 140.) (8) Tobacco products. — Effective January 1, 2013, the ‘excise taxis PL75 on each kilogram, Iu t0XATIOS x sentence tolacco products —Eifctve January 1, 16) 98.00 per pack of 20 unis or pene te eee ee of not more than 20 units effective, PSH contin. 00 (2022), and P3250 (2023). The rates shall be coal) M by Stwevery year effective on January 1, 2124 ay oducts. — (a) For nicotine salt or sal 0 i Uanary 1200 te ence txt icone ey fraction thereof, P4200 (2021), P47.00 (2033 silt gx Ga23) The rates of tax shall be increased by 5%, and P5200" ective on January 1, 2024. (b) For conventional J asic” nicotine effective January 1a, treebase’ OF is P45.00 per 10 milliliter or a fraction thereof, omy ti), 55.00 (2022), and PO 0 (2023). The rates of Fate increased by 5% every year effective on January pa oo (7). Cigars — The excise tax is based onthe net ea Or, cigar. The specific tax ate of P50 willbe increased ae erent) eecive Janiary 1,224, See 15) (8). Cigarettes. — With respect to cigarettes packed by rand’ he taxis collected per pack: if packed by machines, rants based on the net retail price per pack. fective srg the excise tax rate on cigarettes is PAS.O0 per pack 0 actesing to POOOD per pack elective Jay 1 {305 The rate of tax wl increase by ive percent (3) every yeareffective January 1, 2024, (See. 145) (0) Petroleum products. — Efective 2020, the excise tw is computed per liter and/or Kilogram in the case of Investing olls and. greases, et. (P1000); processed gas (P1000), denatured alcohol for motive power (P10, tuphiha and regular gasoline; etc. (P1000); naphtha used as few materials (PO.00), unleaded premium gasoline (10.0), ‘ation turbojet fuel; et. (P&.00); Kerosene (P&L00); waxes tnd petroleum (P10.00 and if use for aviation fuel (P40, dis ue (P60), liquefied petroleum gas (P30), andi ‘wed fr motive power (P6.00), and bunker fel oil (60); om THERINDAMENTALS of spats (1000)ad petroleum coke permet FEM ey owe psenas n, £1 Miceli os —In he cae oan Ce el eo Dep eteo ts ete] eared Maye tasl'on the wholene price 9s eer) the (port ued the Bret of Castor se tani and customs duties net of excise and vanes rng fem) acaenat Gh Neen tds Thala pen en i Ae eee geet en hinge te yee resp dei added tax, on invasive cosmetic procedures, sur ior tady etancemets died sly oe Be altering, or enhancing the patient's appearance ang at atc ofan patent pps nf on prevent or treat illness or disease. The tax does not sot Coe cents ea fore ef mle try wg tn ey me gen oe deemed sect mem peal iy rng fom nace Cn abr end ced eae ft aoe Parr ook (12) Swen beverages. — tax of P00 et ie of olume capacty is imposed on sweetened berg Sing purey caloric sweeteners, and purely new cle Swestener, ora mix of caloric and nor tlic sweetener However hstaxratedoesnotapplytosweetenedbevergs gi accom rp sone erg iy coconut op sugar and purcy stvil yc ‘exempt from this tax. ae ea ‘Ataxo P1200 per lter of vo inost se lame capacity swetened beverages sing purely high atone on Syrup or in combination wily any clon of nonaloe Sweetener (See 1508) ont TAXATION = patton cet Gree Pie ju) Mint protic — The tne a computed as ton coal and coke, per metric ton (P50/P100/ Piso, ios ary 1, 2018, 2019, nd 2020, respectively) on de minerals and. quarry resources and Lally set rl gas al iced nara fs and od i er bn rn Hone gross xp alu ofthe mperaten sical tt a odor in pe mterotional mati price hk sorvper and ober metallic minerals, 4% and gold nd crite, 4%. Sec. 151) Se tat i old, oF eventually Sold, to the Bangho gel pines exempt fom he pent of xe Sigec ISIC) ruing of return and payment of excise taxes, (0). Persons liable. — Every person table to pay ‘cise taxon domestic products shall flea separate retum ce place of procuction. In the case of indigenous leur, natural gas or liquefied natural gas, the excise sornr domestic products shall be paid by the frst buyer, chaser or transferee for local sale, barter or tanser, Pie the excise tax on exported product shall be paid by Trower lessee, concessionaire, or operator of the mining, aim, ‘Should domestic products be removed from the place cf production without the payment ofthe tax, the owner or person having possession thereof shall be lable fr the tax fue thereon. (2), Time for filing return and payment of tax. — Unless ciherwise specifically allowed, the return shall be filed and the exis tax paid by the manufacturer or producer before removal of domestic products from place of production. (@) The excise tax on locally: manufactured petroleum shall be paid within 10 days fom the date of a “THEFUNDAMENTAy ~ >AMENTALS OF renovalaaich products rom he place ofp Fo the pevod from January 1, 1998 tj ttg rh ive () days from the dae of remo! roduc om Jl 1, 1998 to December 3 y Fore removal of uh reds fom Jang and thereafter. + 159, (0) The excise taxon nom metic ming, mineral products, or quarry resources sha et tnd payable upon removal of sich produ incalty where mined or extracted, but sage & to the exse taxon locally produced oy incali minerle mineral product epee a shall lea return and pay the tax within 15 dayy tt the end of the calendar Quarter when such seat eal es ca Sa ran prescribed by rules and regulations " ‘The taxpayer shall flea bond in an amnoun approximates the amount of excze ox doe oh ramovals fo the said quarter (©) For imported mineral or mineral ster meer seme, the die thereon shal be paid before ther remove cistoms custody. som (2) Plc or fling return and payment of tx. — ss Comipiom theron pent erga aa fled wath and the fox paid to any authorized agent bak or Revenue Collection Officer, of duly authorised ty tunica treasurer in the Philippines (W) Excqptions. — The Secretary of Finance. recommendation ofthe Commissioner, may, by rs tegulatons, prescribe (2). Thetimefor filing thereturnatinterasciher than the time prescribed in the preceding paragraphs posse TAXATION, 2 nanan once {b)_ The manner and time of payment of excise wr than as herein prescribed, under a tax {advance deposit or similar schemes. 1) “In the case of locally produced or ited minerals and mineral products or Siam resources where the mine sit or place of Kaction isnot thesame asthe place of processing Se production, the return shall be filed with and thetax paid tothe Revenve District Ofice having jurisdiction over the locality where the same are Mined, extracted, or quarried 12) Formetalic minerals processed abroad, the return shall be filed and the tax due thereon paid. to the Revenue District Office having insdiction over the locality where the same are Mined, extracted, or quarried. (Sec. 130(A Ibid.) (6) Inthe case of imported artices, — They shall be pad bythe owner or importer before the release from he Fa Mouse, or by the person in possession ofthe articles cee exempt from excise taxes other than the one Tl entitled wo exemption. (se Sec. 131.) ‘The Authority to Release Imported Goods (ATRIG) is the authority issued by the BIR addressed to the Commissioner “of Customs allowing the release of {aported. goods from customs custody upon payment ‘Gepplcale taxes oF proo! of exemption from Payment thenel whichever applicable. Should an excisabe item tereleased without the requisite ATRIG, a presumption arses that the taxes due thereon were not paid or not paid propery (see Secs. I and V, Rey. Regs. No, 22016) extra = EMNOMETAS Ray, m H. DOCUMENTARY STAMP Taxes ‘Meaning of documentary stamp tax, Documentry stamp tax is a tx on instrament and_papers evidencing the se Simment, sale ot transfer of an obligann Pe ‘propery incident thereto (sce Sec. 173.) FBS. o¢ Nature and purpose of documentary ‘stamp tax. (0) isan exis o privilege tax becuse tis ‘imposed on the privilege to-enter into a transaction rath, than on document. The document is ony taxed beret the transaction. bel (2) Thepuspose of the aw in imposing tamp tes to raise revenue. * Both the person issuing and the one to whom anh sear aig ho whe tax is imposed against the person’ making. issuing, accepting, of transferring the document orf evidencing the transaction. Ifthe party assuming payne {B tacexempt, the other partyin the document iho et exempt becomes abe. Documents subject to the tax. ‘These documents are subject o tax: (1). Original issue of shares of stock with ppar value. — on exch P200, or fractional part ‘thereof, of the par value of such shares or the Actual consideration received in case of no par value shares or the actual value represented by the share inthe case of stock dividends... ram end cesanot a sieememn sneer ses denier each P200.00, oF fractional part Fo etait ake 3 Gn xp i ese dearer ad ©) redness issued in foreign countries iS regi by Ta on sindar tat en sue, 10, of tater in te Pailippines (a) Certificates of profits or interest in pert or acuulations.—on ech P2000, or FeREral part thereof, of the face value of such fexipat or memorandum. (6) Bank checks, drafts, certificates, 4f deposit not bearing interest, and other instruments (6 Debt instruments. — on each P200.0, ce fractional part thereof, of the issue price of ery original issue of any such debt instruments (ills of exchange or drafts. — on each, MW) or fractional part thereof, of the face vale (Acceptance of bills of exchange and ders —oneach F200.00 or fractional part thereof, tithe face value of any such bill of exchange or ‘reo the Philippine equivalent of such value, if ‘apresed in foreign currency (0). Foreign bills of exchange and letters sf credit — on each 7200.00, or fractional part ‘heret,of the face value of any such Bill of cechange or letter of credit, or the Philippine Piso Poo Pa00 Piso row - THEFUNDAMENTALSo ag quae of such fe vale, expe in foreign currency (20) Life insurance patos tne, amount finan - “noun afinurance ae Does not exceed P10000000 oo ceed PIA 00000 but does not sed F0,0000 Tice 30000000 bt doesnt seed 7500000 = acess Pst 0000 but does mat acted 750,000.00 as sels 75000000 but dos nat exceed P99 000.00 Pisum ced F,00000000 Faust (As amended by RA. No. 10001.) (1 Poles of insurance upon prope —or each Po fractional pat thereto te amountf the premium carpe ma (12) Fidelity bonds and other insurance pole on cach PAID or facta part thereof, ofthe premium charged mos (13) Policies of annuities. —on each F20000 fr fractional part thereof, of the premium oF installment payment or contract price collected... P10) — Preneed plans — on each 200.0, fr fractional part thereof, of the premium or contribution collected. mo (14) Indemnity bonds — on each P4.00 oF fractional part thereof, ofthe premium charged... 1030 (15) Certificates. by any customs officer, surveyor, notary public, € reson 0 Wars eit — oy eum waco ei Stato po ced FD smear ana month pala hore ee ces oor ther tbe ne — (neh econ a and fy eaechaainda canal aaa wen Bacio Seasnanataseteey a brclpet beret Tip sof udngs oe erp, — on exch ‘et ifthe value of goods — to, exces PIO.00 and does not ‘exceed P1,000.00 (b) exceeds P1,000.00, en aes Poa tea (2) tases er rng ere — (forte ist 200100 or cons ae (©) for every P1/000.00, or fractional part thereof in excess Of the first P2,000.00, for each year of the term of the contract of agreement, an additional tax of (22) Mortgages, pledges and deeds of trust. — (@) if the amount secured does not ‘exceed PS,000.00 Po30 Po20 P00 P20 P0.00 20 “THE FUNDAMENTALS oF Mn (b)_oneach 5,000.00, or fractional part thereof in excess of P5,000.00, an additional 1X Of nen (22) Deeds of sale, conveyances and dona- ‘ion of real property. — (a) ifthe consideration of value does snot exceed P1,000.00. meen PIS) (©) for each additional P1,000.00, or fractional part thereof in excess of P1,000.00 ‘of such consideration or value See ria ‘Taneferexemptfromdonor’staxunderSection OW(A) are exempt from the above documentary stamp x, (24) Charter parties and similar instruments: (a) ifthe registered gross tonnage of the ship, vessel or steamer does not exceed 11000 tons, and the duration of the charter fr contract does not exceed six (6) months and for each month or fraction of a month in excess of six (6) months, P1,000 plus an additional Of eernnnne - Pu (©) if the registered tonnage exceeds 1,000 tons and does not exceed 10,000 tons, and the duration of the charter or contract ‘does not exceed six (6) months—P2,000, and for each month or fraction of a month in ‘excess of six (6) months, an additional tax of F20) (0) if the registered gross tonnage ‘exceeds 10000 tons and the duration of the contract or charter does not exceed six (6) months = Py wxcaTon m seen sp = and for each month fraction of mont excess of x (6) onthe an tom ofa ‘ss aignments and renewals of ee same rite a tat impo on stitute Ses 175-198) pocuments not subject tothe tax. Documents not subject to tax include: (a), Insurance policies or annuities to members of fnteal societies: (2) Certificates of oath administered to and ceteates of acknowledgment by any government oficial ‘hisoffcial capacity; (Q) Certificate of the administration of oaths to any ron or party therein as tothe authenticity of any paper, (@) Affidavits of poor persons for the purpose of prong poverty; (6) Statements and compulsory information required ty goverment offices for statistical purposes and not for eben of the person fling the same; (©) Certified copies and other certificates placed son documents, instruments and papers forthe national, rina city, or municipal govemiments; ©) Certificates of the assessed value of lands, not ‘reing P200 in value assessed, furnished to applicants ‘ereistration of title to land; (8) Borrowing and lending of securities executed ‘nder the Securities Borrowing and Lending Progeam of ‘mpitered exchange, or in accordance with regulations Fcibed by the appropriate regulatory authority ‘ey borowing oF lending of securities agreement as templated Nereof shall be duly covered by a master ‘suntes borrowing and lending agreement acceptable 10 { | | e TMERANDANENTALSOF aan, the appropriate regulatory authority, and which, ‘Pauly regtered and approved by the Burens of eet Revenue; teal ee a geno emia teh amount 2» may be determined by the Sec se oe orb ee by ea Pr ce by an il nw stn erro sla fens a er i of si ple rt Te ait sent une sl aces ih seit 1 ee (10) Sate, barter, or exchange of shares of stock ted and traded through the local stock exchange, (1) Assignment or transfer of any mortgage, las ct policy of insurances, or the renewal or continuance of ‘agreement, contract, charter, or any evidence of obliga or indebtedness. If there is no change in the maturity di ‘or remaining period of coverage from that ofthe origi (12) Fixed income and other securities traded inthe secondary market or through an exchange; (3) Derivatives, provided, that for purposes of ths ‘exemption repurchased agreements and reverse repurchase agreements shall be treated similarly as derivatives; (14) interbranch or Interdepartmental advances within the same egal entity; (15) All forbearances arising from sales or serve contracts including credit card and. trade receivable: provided, thatthe exemption be limited to those execute by the seller or service provider itself; (16) Bank deposit accounts without a fixed term & maturity; | oNALTAXATION a owen samy Te n a7) All contracts, deals, documents and transactions Mo the conduct of business of the Bangla Sentral ng ‘g8) Transfer of property pursuant to Section 40()2)= goltncade 1 tk cl a with marty fot ae 00 oy eyo tors deacincy Vi reave spa peg reed ora anise 18) tect of failure to stamp taxable ‘document. Such failure does not render the document invalid or si Butin such case these are the effects: = (1). The document, instrument, or paper shall ot be, coded inthe government registry; ~) Such document, instrument, or paper or any ‘rod or transfer ofthe same shall not be admitted or sed, inerdence in any court until the requisite stamp or stamps al have Deen affixed thereon and cancelled (see pat. 1, S20); TER Demin of Amount nd Region of Can Lame — 8 (o'Eakegee Pops —() Cnn Re Ea hen pnd sqetesirecechugr of peop e ne nent ep ot Daniele gaan” 1 Capen No ain begin puna saeco frye si rsh a snpornon, wich pry he geo Ath endanger crorton whieh py ihe {Teer sty rt uch fan pean ry ‘Speoromtn Tee Acc aero competi, whch ay he me ot shyt crn m ch emptti,ta e ‘Se eer corprton sytem conn 23 i MENON H a (0) No notary public oF other officer ay administer oath shall add his jurat™ or acknowher ihe the documents propery stamped econ (4) incase of ire taf the proper Salon, be imposed in addition to the amg Fei ob pid an amount equivalent Sr Snpaid amount as suchange (Sec 248(AT) andar Fo aan rom the date prescrbe fr payment fsmount is filly paid. (Sc. 235(4}) men nl = and Filing of return and payment of tax. (1) By whom payable, — The tx shall be pid bye ‘person making signing, issuing, accepting, or Such obligation, ight, oF property: In other words, bots person who isued the document and the person to whee Its issued may be made liable forthe tax. Incase, heme, ‘one party tothe taxable document enjoys exemption nn the tax the other party thereto whois not exempted sal the one directly lable for the tax. (Sec. 173) 2) When. — Except as otherwise provided by nibs and regulations, the tax return shall be fled and the tc due shall be paid at the same time within ten days ah close of the month when the taxable document sas ‘made, signed, issued, accepted or transferred. In lis of the foregoing the tax may be paid either Trough purse and actual affixture, or by imprinting the stamps thou a documentary stamp metering, machine on the table ‘otherwise permis, the tax return shal be filed and the pata anti hich fer fie at er "ema anton ele dl brid pbc fry ast ‘ohn el on tra he ttn a Nate ne dap unr are ee {oN TAXATION s cabo gle pid through an authorized agent bank within seston jurisdiction of the Revenue District Office te is juraicton over the idence o rnp pice Fsines ofthe taxpayer. In places where there i no tc etn teu shal fe le me er att Office, Revense Colcton Ofer oe somone treasurer of the ty or munipaly where yer as Fists legal residence principal place of poss (See 200) |, CUSTOMS DUTIES See pa se ee ene veces wa edt en (2). Tarif means « book of rates; a schedule of fees Ze mk has be aaingeeret ee Be sy toes ee wv ta ol ak nee Aan presen pl haere ap i entecre ee eee ere Ronis Det A ea ei tee er Orme eee UI eae “TTI Carper RA No 8 ome Tl an Cae pebcerone hn lta a 1 ee ‘5 Mlind neem paseo) wh 3 ase [Chteum ee Quer, Wa cap to be ame Ge npt Cekihiad eatery Ss TERNDAMNTALS OF egy, m (2) The ofces charged with the admiisaben ceforcement ofthe la are the Burea of Cust “riff Commission. he Imported articles subject to customs duty, ‘As used in the CMTA, goods refer to articles, merchandise and any other tems subject of impor exportation. Sec. 1021x}) : (1). Exceptasotherwise providedin the Actorin thy laws all imported goods, when imported rom any fg, ourty ito the Phlppines, are subject to duty upare importation. Ths is true even though the imported me, were previously exported from the Philippines, (2) Unpaid duties, taxes and other charges, sa incur legal imerest of 20% per annum: compted fom te dite of inal assessment under Section 429 ofthe Aa who, [ayment becomes due and demandable. The legal interest ‘Shall ikewiseacrue on any fine or penalty imposed (@) Upon payment of the duties, taxes and other charges, the Bureau shall issue the necessary rectipto dlocument as proof of such payment. (Se. 104, CMA} The Act enumerates the articles which shall be exent fromthe payment of import duties upon compliance withthe formalities prescribed in, of with the regulations preserbsd by the Commissiner of Customs with the approval of he Secretary of Finance. (ee Sec. 800, bid) ‘When importation begins and deemed ‘termination. Importation begins when the carrying vessel or aircalt cote the Philippine trary wih heinenion 10 no Importation is deemed terminated when: (1). The duties, taxes and other changes due [Link] send have bcp orl pa at pet IAL TAXATION a asthe goods ae re from duties, axes and other ony nl egal permit for withdrawal has ben granted, ane Gy incase the goods are deemed fee of duis taxes sce rl ae 2 ee nective date of rate of import duty. oe pnt ol reeset ay ral ele icling aoce OE ed ee Fe re teas pa eee eae aeons Ce eters See ee a= le saeco treed Ben ere ee a oe ee Ctasitcation of customs duties. Casioms duties may be classified into (0 eninary oF regular customs dates, which are ‘aye and collected mainly as a source of revenue —r (a) advlorem — the duty is based onthe market value or price of the imported aril (se Se. 201, id), (6). specjio— the duty is based on the weight of volume ofthe imported article (se Sec 202, Ii); {@)alterate — the duty is base cither on the weight or volume or on the value ofthe imported atl, whichever is higher; nd DHEFUNDAMENTALS OF ny (@)comportd — the duty i based by th vweightorvolumeandthevalueof theft te ta Pertti Aa) special cto duties, which are iy cols radon tthe ordinary customs det

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