WORLD TRADE G/SCM/N/1/PHL/1
3November 1995
ORGANIZATION(95-3404)
Original: English Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS
UNDER ARTICLE 32.6OFTHE AGREEMENT
PHILIPPINES
Thefollowing communication, dated 9October 1995, hasbeenreceived fromthePermanent
Mission ofthePhilippines.
_______________
Inaccordance withArticle 32.6oftheAgreement onSubsidies andCountervailing Measures,
Ihavethehonour tonotify Section 302oftheTariffs andCustoms Code ofthePhilippines, which
embodies thecountervailing dutylawofthePhilippines.
Iwishtoinform theCommittee thatthislawhasbeeninexistence since ouraccession tothe
Tokyo Round Code onSubsidies andCountervailing Measures in1985, andtherehavebeennochanges
therein since then.
Tariff andCustoms Code ofThePhilippines
July1994 -Volume 1
Section 302-Countervailing duty
(a) Whenever anyarticle isdirectly orindirectly granted anybounty, subsidy orsubvention upon
itsproduction, manufacture orexportation inthecountry oforigin and/or exportation, and
theimportation ofwhich hasbeendetermined bytheSecretary, afterinvestigation andreport
oftheCommission, aslikely toinjure anestablished industry, orprevent orconsiderably retard
theestablishment ofanindustry inthePhilippines, there shallbelevied acountervailing duty
equal totheascertained orestimated amount ofsuchbounty, subsidy orsubvention: Provided,
Thattheinjury criterion toadomestic industry shallbeapplied onlyinthecaseofimports
from countries which adhere totheGATT Code onSubsidies andCountervailing Duties;
Provided, further, Thattheexemption ofanyexported article from dutyortaximposed on
likearticles when destined forconsumption inthecountry oforigin and/or exportation orthe
refunding ofsuchdutyortax,shallnotbedeemed toconstitute agrant ofabounty, subsidy
orsubvention within themeaning ofthissubsection: Provided, furthermore, Thatshould an
article beallowed drawback bythecountry oforigin and/or exportation, onlytheascertained
orestimated excess oftheamount ofthedrawback overthetotalamount oftheduties and/or
internal taxes, ifany,shallconstitute abounty, subsidy orsubvention: Provided, finally, That
petitions forimposition ofcountervailing dutyshallbefiledwiththeSecretary ofFinance.
Upon finding ofaprima faciecaseofbounty, subsidy orsubvention enjoyed bytheimported
article andinjury to,orlikelihood ofinjury toadomestic industry, theSecretary shallrefer
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thecasetotheTariff Commission forinvestigation andshallinstruct theCommissioner of
Customs torequire thefiling ofcountervailing bonds forimportations entered during the
pendency ofcountervailing proceedings;
(b) TheSecretary shall, afterreceipt ofthereports oftheCommission, decide whether thearticle
inquestion isgranted anybounty, subsidy orsubvention andifso,fixthecountervailing duty
equal totheascertained orestimated bounty, subsidy orsubvention. Heshallgiveduenotice
ofhisdecision andshalldirect theCommissioner ofCustoms tocause thecountervailing duty
tobelevied, collected andpaidinaddition toanyordinary duties, taxes andcharges imposed
bylawonsucharticles andonarticles ofthesamespecific kindorclasssubsequently imported
under similar circumstances.
(c) Pending investigation andfinaldecision ofthecase,thearticle inquestion shallnotbereleased
from customs custody totheowner except upon thefiling ofabond equal totheascertained
orestimated amount ofbounty, subsidy orsubvention asprovisionally determined bythe
Secretary ofFinance;
(d) Thearticle, ifnotpreviously released under bond asprovided forinthissection, shallbe
released afterpayment bytheparty concerned ofthecorresponding countervailing dutyin
addition toanyordinary duties, taxes andcharges, ifany,orre-exported upon thefiling of
abond inanamount twice theestimated dutiable value ofthearticle, conditioned upon the
presentation ofalanding certificate issued byaconsular officer ofthePhilippines atthecountry
ofdestination. Ifthearticle hasbeenpreviously released under bond, theparty concerned
shallberequired topaythecorresponding countervailing dutyinaddition toordinary duties,
taxes andother charges, ifany;
(e) Whenever theCommission, onitsownmotion orupon application ofanyinterested party,
findsthatthecondition which necessitated theimposition ofthecountervailing dutyhasceased
toexist, itshallsubmit thenecessary recommendations totheSecretary forthediscontinuance
oftheimposition ofthatduty. Anyorder made under thissection bytheSecretary shallbe
published intheOfficial Gazette and/or inanewspaper ofgeneral circulation;
(f) Anycountervailing decision promulgated bytheSecretary shallbeeffective foraperiod of
five(5)years fromthetimeofitspromulgation except upontherepresentation oftheinterested
party ofthenecessity tocontinue theimplementation ofthesaiddecision, inwhich casethe
Secretary shalladvise theCommission toconduct aninvestigation todetermine whether the
conditions inparagraph (a)stillexist. Theaction forextension shallbebrought before the
Secretary atleastsix(6)months before theexpiration oftheperiod.
Thefindings oftheCommission shallbesubmitted totheSecretary atleastthree (3)
months before theexpiration oftheperiod.
(g) TheSecretary andtheCommission shallpromulgate allrulesandregulations necessary tocarry
outtheirrespective functions under thissection.