POSITION PAPER OF THE BOOK DEVELOPMENTASSOCIATION OF THE PHILIPPINES RE TAX ANDDUTY FREE IMPORTATION OF BOOKS INTO THECOUNTRYINTRODUCTIONThe Book Development Association of the Philippines,composed of various stakeholders such as publishers, authors,distributors, book sellers and others who are actively involvedin pursuing the development of the Book Industry in thecountry, are one in vehemently opposing the issuance of Department Order 17-09 dated 24 March 2009 and issued bythe Hon. Secretary of Finance, Mr. Margarito B. Teves, whichitself was based on the Memorandum re ClarificatoryGuidelines on Duty Free Importation of Books dated 10 March2009 issued by the Hon. Undersecretary Estela V. Sales.With all due respect, the said Department Order and theMemorandum are legally infirm and without any basis underthe present state of the law affecting book importation.DOF’S OWN MANDATE, VIOLATEDOn its website, the Department of Finance (DOF) is described tohave “the critical tasks of revenue generation, resourcemobilization and fiscal management rest on the shoulder of theDepartment of Finance.” Admittedly then, the DOF must

always be ready with the funds to sustain the governmentmachinery in providing the general populace with all its basicneeds.Undoubtedly, it is an unenviable mandate, considering thegargantuan fiscal problems facing the DOF. However, in its zealto perform its duties and functions, the DOF sometimes losestrack of its focus and implements questionable ideas that causesundue hardships to the very citizens for whom its fiscal andfiduciary duties primarily are directed and are also its ultimatebeneficiaries. This is one instance of such lack of focus. This isall the more surprising too, considering that the very lawdirectly affected, i.e. Republic Act No. 8047, was also authoredby non other than the Hon. Secretary of the Department of Finance, who was then a lawmaker and part of the 9thCongress when said RA 8047 was enacted.I. Republic Act No. 8047 (henceforth “RA 8047”), i.e. theBook Publishing Industry Development Act, which created theNational Book Development Board (NBDB) is the latest lawthat directly governs the importation of books into the country.As the latest legislative enactment from our lawmakers coveringthe specific subject of book importation, it must, by necessity,take precedence over all others. Thus, all other laws whichpreviously governed and affected the importation of books intothe country were either directly or indirectly repealed ormodified accordingly. One such affected law is Section 105 (s)of the TCCP, as amended. RA 8047 is entirely anathema toSection 105 (s) of the TCCP. The Florence Agreement, whichwas clearly taken into account during the enactment of RA8047, does not affect the proper implementation of RA 8047

with regard to book importation. In fact, the goals of theFlorence Agreement is strengthened by RA 8047.1.1 We respectfully disagree that, outside of importation of books done by non-stock, non-profit educational institutionsand those with special Charters, there are three (3) instanceswherein duty-free importation of books may be allowed: underSec. 105 (s) of the TCCP, under the Florence Agreement andunder RA 8047. With all due respect, there has been a grossmis-appreciation of the said laws, and the Guidelines that wereissued have no basis under the present state of the law affectingbook importation.It is clear as daylight that whenever books are imported into thecountry, (other than those governed by special Charter), thelaw that would now govern is Republic Act No. 8047. To sayotherwise would be to disregard the clear import of the saidlaw, which involves itself strictly with the development of theBook Publishing Industry as well as all its ramifications. Onesuch ramification is the importation of “books” per se. Andconsequently, the definition of which (i.e. books) the law hasnot placed any limitations whatsoever in full deference to therationale for the law’s enactment as well as in complete accordwith the UNESCO Florence Agreement.1.1.1 RA 8047, which originated in the Senate in 1992 (SenateBill No. 252) and its counterpart bill in the House of Representatives (House Bill No. 12614) had a long an arduousjourney in the deliberations between the various committees of both legislative chambers before it was submitted to the