TARIFF- INSTRUMENT OF NATIONAL POLICY

 
Notwithstanding the many economic advantages that are derived from geographical
division of labor and hence, from trade, the policies of government have generally run
counter to the idea of free trade. As a matter of fact, the issue revolves merely on how
much or how little of tariffs would be imposed.
In view of its use to attain certain definite economic goals insofar as its commercial
relations with foreign countries are concerned, not infrequently, tariff as a system is
looked upon as an instrument of national commercial policy. As is commonly practiced
and observed, tariffs are generally intended to afford protection to domestic infant
industries. However, since no tariff system is fully protective in that it will shut entirely
the entry of foreign goods into the importing country, the imposition of customs duties
on foreign goods also afford the government a certain source of revenue.
Kinds of Tariff System
As mat thus be gleaned immediately from the preceding discussion, tariff system are of
two broad kinds based upon their purpose: tariff for revenue and tariff for protection.
There is  almost complete agreement that governments must be financed and that tariff
systems serve as some prolific source of revenue. Actually, a customs duty on imports
represents a particular type of taxation. But, as Professor Samuelson has pointed out,
this form of taxation is especially bas because in addition to its regressive effect, “it
distorts economic resources from their best uses.”
It should be mentioned in this connection that if the goods subject ot custom duty
cannot be produced at home or if home production bears a tax comparable with the
import duty, revenue tariffs do not discriminate in favor of home industry.
Holland and Great Britain are the outstanding examples of countries which for long
periods of time had tariffs designed for revenue purposes only. In such tariff systems,
care was exercised to impose duties only upon those commodities which could not be
advantageously produced in the countries imposing the import duties. In the particular
case of Great Britain, she had long levied duties chiefly upon tea, coffee, sugar, spices,
and various tropical products which could not be produced profitability in England.
However, Great Britain later on joined many countries in adopting a protectionist many
articles.
Autonomous and Conventional Tariff Systems. Based on the manner by which rates of
duties are established, tariff systems are known either as the autonomous or
the conventional tariff system. An autonomous tariff system is one wherein the rates of
customs duties are established by legislative action as in the case of the Philippine tariff
system. Autonomous tariff systems are at the same time examples of what are described
as rigid tariffs evidently because the change in existing rates of duties are subject to the
action of the law-making body which exercise exclusive authority over the same.
Conventional tariff systems are on the other hand, the result of conventions or
agreements. Example of this kind of tariff systems is the one imposed in the European
Common Market countries. As a general observation, this kind of tariff systems is not
only easy to amend, that is, change the rates of existing duties, but are less permanent in
character. Their existence is only conterminous with the existence of the agreement of
treaty that provided them.
Tariff Systems According to Schedules. According to schedules of rates of duties, tariff
systems are known as: single-schedule, double-schedule, and multiple-schedule.
A single-schedule tariff system, also called unilinear tariff or one-line tariff system is one
which imposes the same rates on imported goods of the same nature and kind regardless
of the countries of origin. Several Latin-American countries have such kind of tariff
system like the Philippines. Critics of this kind of tariff system contend the owing to its
lack of elasticity, the countries adopting such a system cannot expect to obtain special
concessions as none can be offered in return. However, those who favor the use of such
a system argue that it provides for equality of treatment to the products of all countries
of the world.
The double-schedule tariff system, also called the minimum and maximum tariff system
provides for two different rates of duties applicable on every particular good imported
into the country, one setting forth the minimum rate and the other, the maximum rate.
Hence, its descriptive title.
Advocates of this kind of tariff system claim that it insures greater stability in the
treatment of home industries, by giving them a fixed degree of protection expressed in
the minimum duty. Moreover, it is likewise claimed that the minimum duties could be
raised without having to wait for the termination of commercial treaties in force.
Agreements do not bind the rates of duties but merely stipulate that the minimum duty
will apply to the products on one country with which a commercial treaty has been
concluded. Thus, unforeseen events, so they claimed, can be promptly remedied.
By and large, double schedule tariff system is intended for bargaining and obtaining
concessions.
Multiple-schedule tariff system, also called the multilinear or three-line tariff system is
one which specifies different rates of import duties applicable to different countries.
Such a tariff system is observed among the British commonwealth of nations which
generally utilize the following rates of import duties, namely: preferential, extended to
goods coming from countries belonging to the British commonwealth; intermediate,
applied to goods coming from countries with which the importing country has an
existing trade agreement, and general, which is applicable to the products of all countries
of the world, that is those which are being imported other than those from
sister0nations as well as those having no existing trade agreements with the importing
country.

The Farming and Enactment of the Tariff

The manner by which a tariff may be enacted or established has already been indicated.
In their enactment of establishment, there are certain matters which have to be taken int
account. They pertain to tariff classification and specialization, territorial jurisdiction of
the tariff laws, and the use of terminology and others.
Tariff Classification and Specialization. Since modern tariffs tax almost all kinds of
imported goods at varying rates of duty, the tariff must of necessity contain not only an
enumeration as well as a description of the various articles or merchandise made subject
to duty but must have them properly arranged according to some systematic or scientific
classification.
The classification of goods into a customs nomenclature may be done through any of the
following ways:

1. According to rate of duty. Under this method of arrangement, goods are grouped

together according to the rates of their duties. For example, those goods which are
subject to the imposition of duties ranging from 10% to 25% ad valorem are placed
under one class. These goods subject to duty over 25% up to 50% and valorem are
likewise placed under another class, and so on. Thus, as may be quite apparent, this
arrangement is both easy and simple but runs open to the objection that it does not
take into account the relationship of goods to one another.
Ecuador’s tariff system of 1916 is a striking example of this method of classifying goods
into a customs nomenclature.

2. Alphabetical order. Instead of grouping the goods according to the range of

duties to which they are subject, another device that is used by a few countries,
especially the underdeveloped ones relates to alphabetical arrangements. In this
case, all goods starting with letter A, as for example, abaca, abacus, etc. are placed
under one group. Those goods whose names or commercial designation start with B,
like bananas, bamboos, bicycles, etc., are likewise placed under another group, and so
forth. Like the first method described above, its advantages stems from the utter lack
of relationship among the commodities or goods being grouped together.
3. According to attributes. The growing specialization in production and the
diversity in finished goods account for the pressing need for the use of a tariff system
which provides for a scientific arrangement of goods under tariff schedules. A
method in common use by highly industrialized countries is to group the goods
according to their attributes or characteristics. Our Tariff and Customs Code which is
 patterned after the Brussels Nomenclature, considered to be the most scientific and
therefore generally acceptable, classifies goods according to their characteristics or
attributes, on the bases of:
4. Material origin. This means the grouping together of all goods on the basis of
their physical substance or origin. Thus, an article made of wood is grouped with
others of the same physical substance or material under one class or heading, as
”Wood and its manufactures.”
5. Actual content. In other instances, the composition of the finished goods is the
basis for classification in the tariff. As provided under Rule 3b of the Tariff and
Custom Code of the Philippines “mixtures and composite articles which consist of
different materials shall be classifies as if they consisted of the material or
component which gives the articles their essential character” which in customs
administrative is popularly known as “component material of chief value.”
6. Use of purpose. If the rate of the article is dependent upon the use or purpose of
the article, the chief or predominant use governs. By the “use” is meant that which
exists at the time the tariff law became effective. However, the uses or purposes of
the goods need not be exactly identical. Similarity in use or purpose is deemed
sufficient. This is governed by what is known as the “law on similitude.”
While we find highly industrialized countries having scientifically arranged tariff systems,
the same however, is not true with underdeveloped countries.
As a general observation, it may be pointed out that the reason behind the use of tariff
classification and specialization stems from three important factors, such as:

1. The desire to give various domestic industries varying degrees of protection;

2. The desire of those entrusted with the task of negotiations of commercial treaties
to be equipped with a better instrument of purposes of bargaining and obtaining
concessions; and
3. To insure adequate and proper implementation of the tariff without placing undue
reliance upon administrative interpretations which may be confusing as well as
conflicting at times.
 
Tariff Terminology. In classifying articles for incorporation in tariff schedules, preference
is given to other botanical or scientific names instead of commercial designations which,
doubtless to say, is a marked departure from the old method adopted by many countries
of the world. This is readily observed in the case of countries which adopt the Brussels
Nomenclature as a guiding principle in the enactment of their tariff system. The reason
for such departure are that an almost unlimited number of different kinds of goods
enters into the channel or commerce from year to year and that to include such goods as
they appear in their commercial names not only would make such listings in the body of
the tariff impossible but moreover would make the tariff system itself obsolete to that
extent.
Territorial Jurisdiction. Generally speaking, the tariff law applies to the political
boundaries of the State enacting the tariff. In some cases, however, colonies are included
in the territorial jurisdiction of such tariff system. Thus, the tariff law of the mother
country in a number of instances also applies over that of her colonies. A classical
example in point is the tariff system of the United States which extended over Alaska,
Hawaii and Puerto Rico in its application before the first two attained statehood.
However, the case of the Philippines is an exception. While still a colony of the United
States, America Congress enacted a law for implementation over this country.
Introduced in Congress as the Payne-Aldrich tariff bill designed “to raise revenue for the
Philippine Islands, and for other purpose,” it became officially known as the Philippine
Tariff Act of 1909 a law which governed our import and export trade until it became
superseded by the Tariff and Customs Code of the Philippines (Republic Act No. 1936) in
1957.
In a few instances, contiguous foreign territories have become joined through the
adoption of a common customs tariff, popularly known as a custom union. A custom
union may be defined simply as an agreement between two or more political
jurisdictions to abolish customs duties and other trade restrictions among themselves,
and to adopt common policy regarding trade with political jurisdiction outside of the
union.
Still, in other instances countries may be joined together through the use of a common
internal tariff. However, there  exercise complete sovereignty insofar as their external
trade relations with other countries are concerned. In such a case, a free trade area is
born. As may be pointed out, a free trade area provides for the elimination of customs
tariffs and other obstacles to trade among its members, but does not require the
introduction of a common external tariff. The members can thus maintain their national
customs tariffs and an independent trade policy vis-a-vis third countries. To avoid a
diversion of trade in favor of low-tariff members, as system of certificates of origin has
to be introduced.
Customs Duties
Whether the primary objective of a government in adopting a tariff system is for
revenue or for protection, nonetheless, it is never free from any problems that are very
important to the attainment of its objective.
Customs Duties, and their Origin. Some of a government in adopting a tariff system is
for revenue or for protection, nonetheless, it is never free from any problems that are
very important to the attainment of its objectives.
Custom Duties, and their Origin. Some of the words which we still use to describe the
manner of collecting revenue as well as the means of controlling trade are indeed very
old. However, their modern use has been standardized since the beginning of the
sixteenth century.
One of t he oldest words which is still in common use today is toll, which got into
England during the invasion of the Teutons in the fifth century. It has a long history back
through Latin to the Greek word for “a place at which local rulers exacted payment for
permissions to pass or to trade, or simply for protection.” these tolls, and eventually
customs  duties which refer to customary payments made by traders on goods served as
economic burden upon the life of the people. As a matter of fact, in many instances, such
practices prevented the union of isolated communities into national entities.
Imposition of Customs Duties. In early England, it was the regular practice to farm out
customs revenue among the favored few for lengthy periods covering a number of years.
This system of farming the collection of customs revenue was so cumbersome that it
finally collapsed after the period of the Restoration. Thereafter, the collection of customs
revenue was lodged in the hands of the government.
Customs duties may be imposed in three ways: at the time a commodity from a foreign
country enters the country, called import duties; at the time goods leave the country
bound for a foreign country, in which case it called export duties; and on the occasion of
its passing through a country, hence termed as transit duties.
Import duties. Of the three classes of customs duties, import duties are the most widely
used. They are levied either for revenue or for protection.
Advocates of import duties intended for protection claim for its advantage the
conferment of benefits upon selected economic groups. The underlying philosophy
behind the imposition of protective duties was best expressed in James I’s Book of
Rates”, wherein he stated: “If it be agreeable to the rule of nature to prefer our own
people before strangers, then it much more reasonable that the manufactures of other
nations should be charged with imposition than that the people of our own kingdom
should not be set on  work.”
Where the intention of imposing import duties is for revenue, the rates of duties are
generally made low so as not to impede the flow of goods into the importing country.
Export Duties. Export duties are impositions levied on goods that are shipped away to a
foreign country. The imposition of such duties in the past was very common when
practically all countries of Europe during the Middle Ages made use of such kind of
duties. As advocated by the mercantilists, it was intended for the encouragement of
domestic manufactures. Export duties like import duties may be imposed either for
purposes of revenue or for protection.
In economically-backward countries, with their sparse population living largely in rural
areas, export duties are much easier to collect then income taxes. This is so, advocates of
export duties point out, owing to the fact that duties are collected at only a few points
the ports of exportation and upon the mere act of exporting.
Transit Duties. Transit duties are exactions imposed upon goods which are passing
through the territory of one country destined to a third country. The rate of transit
duties was originally determined by the rates of the import and export duties. Goods
passing through a country had to pay the combined amount of both duties. Such duties
were retained for a long time after the abandonment of internal tolls.
The remarkable improvement of railroads made the further imposition of transit duties
undesirable. This had made possible the reaching of a certain market through a number
of routes. As a matter of fact, where obstacles were placed on one route, it had the
effect of diverting traffic through other channels. Such a circumstance obviously meant
the loss of advantages which accrue to a country from the passage of goods through its
territory. The recognition of this fact led to a gradual reduction in transit duties until
they were abolished completely.
The abolition of transit duties paved the way for the introduction and development of
bonded railroad cars as well as bonded warehouses.
Other Kinds of Duties. There are impositions made by the government on goods other
than customs duties. They are: dumping and countervailing duties.
Dumping duties are imposed on those goods which are sold in the importing country at a
price lower than those obtaining in the country of exportation. To combat such un- fair
trade practice, special customs duties have been imposed, known as dumping duties.
Such duties which are in addition to the regular rates of import duties are measured by
the difference between the fair market value of the goods and the price at which they
are sold in the importing country.
Countervailing duties are levied on those goods import- ed into a country which received
a premium or bounty in the exporting country, the amount of which is measured by the
actual amount of bounties* or subsidies** granted to the goods.
 In recent years, certain practices in relation to customs duties have been observed. For
instance, instead of – or in addition to customs duties, several countries (such as
 Sweden) and the European Economic Community apply a system of variable import
levies on their imports of various agricultural products. The effect of these duties is
largely to raise the price of imported products to the domestic price level. The European
Economic Community on the other hand, has introduced a system of reference prices for
some fairly price-sensitive produce, such as fresh fruit. If the price of imported produce
is lower on entry than the reference price, a compensatory duty - equal to the difference
is levied in addition to the customs duty.
 
Types of Import Duties
Generally speaking, there are two types of import du- ties, namely: ad valorem and
specific. However, owing to their shortcomings, alternative and compound duties have
been devised.
 Ad Valorem Duty. Ad valorem duty, from the Latin word meaning "according to value",
is an imposition based been devised. on the monetary value of the merchandise. Such a
duty is a fixed percentage of the foreign or domestic valuation of the imported
merchandise.
The main advantages of ad valorem duties are their elasticity and self-adjustment to the
value of the goods. Their use obviates the necessity of an elaborate tariff classification.
As such, therefore, these ad valorem duties are more highly equitable than the specific
ones. They make easier international comparisons of the rates of tariffs.
On the other hand, those who are opposed to the adoption of ad valorem rates of duties
claim that their imposition present great difficulties from an administrative standpoint.
To clinch their argument, they further contend that such being the case, ad valorem
rates of duties require expert customs officials for the ascertainment of correct values of
commodities and of course, for the prevention of fraudulent practices on the part of
importers. Temptations to under- value imported goods and to corrupt public officials
are pre- sent in ad valorem duties.
Specific Duty. Specific duty is a type of import duty based upon the weight, quantity, or
their physical characteristics of the imported merchandise. It is expressed in terms of the
monetary unit of the importing country. The imposition of specific duty is best adapted
to raw materials and semi-manufactured products as differences between grades are not
many and, furthermore, they could be easily ascertained. Finished products, more
particularly those of high and varying values are best suited to ad valorem duties.
The main advantage that weighs heavily in favor of the specific duty is that it presents
relatively less opportunity for errors of judgment and for fraud in the form of under-
valuation and, therefore, it does not require an elaborate appraisement machinery as in
the case of ad valorem duty. Likewise, the revenue collectible by the government does
not fluctuate with the fluctuations in the price of goods. This cannot be said true of the
ad valorem duty. Moreover, specific duty conceals from the general public the extent of
taxation to which the imported goods are made subject.           The height of duty is
obvious when the rate is indicated in percentages of the value of the imported
commodities as in the case of ad valorem rate. Needless to state, it is difficult to visualize
how high the duty is when it is expressed in so many centavos or pesos per kilo, per
meter, per gross, or some other unit of measurement or quantity.
Notwithstanding the advantages mentioned above, the main objection to the use of
specific duty lies in the fact that specific duty falls unequally upon the various grades of
commodities, that is, some coarser and less expensive wares are taxed proportionately
higher than the finer and more valuable articles.
Alternative Duty. To offset the disadvantages present in both the ad valorem and
specific duties, students of tariff have proposed the adoption of an alternative rate of
import duty, that is, both an ad valorem and a specific duty are set out in the tariff
system for a given product. Because the ad valorem incidence of the specific duty tends
to be high in the case of low-priced goods, alternative duties are usually applied when
protection is needed specifically against low-price imports. Such duties are often
constructed as an ad- valorem duty combined with a specific minimum duty (e.g., 25% ad
valorem or P1.00 per 100 kilos). The rate applicable is thus the one that yields the higher
amount of duty.
Compound Duty. Compound duty combines the ad valorem and specific duties which
are simultaneously made applicable on given imported articles at the same time. Com-
pound duty as a rule is levied on manufactured articles where raw materials subject to
import duties have been used. The purpose of the specific rate in the compound duty is
to offset the increased cost of production due to taxes placed on imported raw materials
while the ad valorem duty is in- tended to offer protection to manufacturers against
foreign importations.
Compound rate of duty is oftentimes used as a means of protection to domestic
industries engaged in the manufacture of similar articles coming from foreign countries.
Prior to the amendment of the Tariff and Customs Code of the Philip- pines, there was
provided a compound duty on importation of manufactured tobacco in this country
designed to protect the local tobacco industry.
 
Measuring the Heights of Tariffs
Our discussion of tariff systems and rates of customs duties leads us to a consideration
of the subject of tariff walls. By tariff walls are meant the heights of tariffs, that is, the
rates of duties being imposed on goods entering into the importing country. The effect
of high rates of import duties is to prevent imported goods from entering into the
importing country in amounts considered highly desirable. Such duties therefore literarily
speaking, appears no different from walls that must be climbed or surmounted. Hence,
the term tariff walls.
One way to determine the heights of tariffs is to indicate the total value of dutiable
imports as a percentage of the total value of dutiable and duty-free imports. This
procedure is rather crude. Indeed, a more reasonable and helpful method is to attempt
the calculation of some kind of an average tariff rate. The employment of an average is
logical since tariff exists only as a collection of very dissimilar rates and items. A simple
average of all these rates would be satisfactory for the simple reason that imports of
commodities such as meat and meat products are usually more important than imports
of tea and cosmetics, for instance. Moreover, some duties are devoid of any meaning as
they appear in the tariff law except for certain political considerations.
One method proposed for measuring the heights of the tariff wall is to divide the amount
of duties collected by the total value of the goods imported. This method is not very
accurate, however, since the more protective duties become, the fewer dutiable goods
will be imported. Perhaps a more satisfactory way of measuring the height of the tariff
wall is to reduce all duties to an ad valorem base, and compute an average duty as a
percentage of the average value of all dutiable goods including goods subject to
prohibitive rates of im- port duties.
 
The Philippine Tariff System
At this point, it may not be amiss to mention that any discussion of tariff systems will be
far from complete without any discussion of our own the Philippine tariff system.
The enactment of Republic Act No. 1937 otherwise known as the Tariff and Customs
Code of the Philippines paved the birth of our present tariff system. Be it recalled in this
connection that previous tariff systems were those established by our mother countries
during the period of their administration, the Spanish tariff system which was made to
apply in this country and governed our imports and exports then just as the Philippine
Tariff Act of 1909 known as Payne-Aldrich tariff law governed our imports and exports
from the date of its effectivity until it was superseded by the present Tariff and Customs
Code. It is interesting as well as important to note that its enactment represents the
assertion of sovereignty of this country for the first time over a matter which previously
was vested as the exclusive prerogative of the mother country.
As amended by Presidential Decree No. 34, the Tariff and Customs Code of the
Philippines is charged with the following objectives:

1. Simplify the present complicated tariff structure and improve thereby the
administration of customs;
2. Raise additional revenues;
3. Provide tariff protection to economically desirable and deserving local industries;
4. Serve as an instrument for bargaining vis-a-vis other countries;
5. Allocate properly available resources from investments in non-essentials to
investments in essential and exportable goods; and \
6. Prevent technical smuggling. As may be observed, our tariff system clearly
departs from others insofar as purposes are concerned, which are either for revenue
or for protection. In our particular case, it is really intended to make it as an
instrument to meet our developmental needs.
 
Essential Features. One of the essential features of our tariff system pertains to the
incorporation of what is known as the "flexible clause" which vests upon our President
the authority to reduce or increase the rates of import duties expressly  established in
the Tariff and Customs Code within certain specified range intended purposely to
prevent the spiraling of prices in this country and/or the entry of cheap quality imported
goods.
Before such authority could be exercised by the President, the Tariff Commission has to
conduct public hearings to determine the merit of the application and the extent of the
proposed decrease or increase in the rate of import duty. On the strength of the
investigation conducted by said Com- mission, the National Economic Development
Authority shall make the necessary recommendation to the President which shall be the
basis of the presidential proclamation.
Under no circumstance, however, may the increase in rates of duties be in excess of 5
times or 500% of the existing ones while the decrease shall in no case exceed one-half
or 50% of those found in the Code. Further, the President shall have no authority to
transfer goods from the dutiable list to the free-list or vice-versa. The exercise of flexible
authority vested by the law-making body upon him shall be made only when the latter is
not in session.
Prohibited Importation. Another noteworthy feature of our tariff system concerns
prohibited importations which are expressly enumerated under Section 102 of the Code
as follows:

1. Dynamite, gunpowder, ammunitions and other explosives, firearms and weapons

of war, and detached parts thereof, except when authorized by law
2. Written or printed article in any form containing any matter advocating or inciting
treason, rebellion, insurrection or sedition against the Government of the Philippines,
or forcible resistance to any law of the Philippines or con- training any threat to take
the life of or inflict bodily harm upon any person in the Philippines.
3. Written or printed article, photographs, engravings, lithographs, objects, paintings,
drawings or other representation of an obscene or immoral character.
4. Articles, instruments, drugs and substances designed, intended or adapted for
preventing human conception or producing unlawful abortion, or any printed matter
which advertises or describes or gives directly information where, how or by whom
human conception is prevented or unlawful abortion produced.
5. Roulette wheels, gambling outfits, loaded dice, marked cards, machines,
apparatus, or mechanical devices for the distribution of money, cigars, cigarettes or
other articles when such distribution is dependent upon chance, including jackpot
and pinball machines or similar contrivances.
6. Lottery and sweepstakes tickets except those authorized by the Philippine
Government, advertisements thereof and lists of drawings therein.
7. Marijuana, opium poppies, coca leaves, or any other narcotics or synthetic drugs
which are or may hereafter be declared habit-forming by the President of the
Philippines, or any compound, manufactured salt derivative, or preparation thereof,
except when imported by the Government of the Republic of the Philippines or by
any person duly authorized by the Collector of Internal Revenue, for medicinal
 purposes only.
 
TARIFF ADJUSTMENTS
            President Fidel V. Ramos issued Executive Order No. 172, increasing the
minimum tariff rate from zero to three percent on articles specified under Section 104 of
the Tariff and Customs Code of 1978, as amended.
The tariff adjustment covers the following items: logs, coral and similar materials, natural
sponges of animal origin, natural calcium phosphate; natural aluminum calcium
phosphates and phosphatic chalk; fertilizers, spark ignition reciprocating or rotary
internal combustion piston engines, compression-ignition internal combustion engines
(diesel or semi-diesel engines) electric generating sets and rotary converters, and
shipping vessels such as tugs,  push craft, warships, and other floating structures for
breaking up.
Executive Order No. 172, however excludes zero-rated items under Republic Act No.
7369 entitled "An Act Granting Tax and Duty Exemption and Tax Credit on Capital
Equipment."
 The new tariff rate does not also apply to the Philippines schedule of tariff reductions
under the Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN
(Association of South- east Asian Nations) (Free Trade Area) embodied in Executive Or-
der No.145.
In signing Executive Order No. 172, the President cited the need to further simplify the
tariff structure by narrowing the tariff band in line with the objectives of the Tariff
Reform Program and to implement executive measures aimed at closing the fiscal gap.
The tariff reforms under Executive Order No. 470 provide for a minimum tariff rate of
three percent, with certain exceptions.
 Increasing the tariffs on articles with zero duty to three per- cent was also one of the
alternatives to the Pl oil levy agreed upon by the Executive and Legislation branches
earlier.
This first phase of tariff fine-tuning covers the period 1994 to the end 1995.
 The government contemplated a uniform five percent tariff rate on all shipments from
abroad by the year 2001 as part of its continuing tariff reform program.
The single rate scheme was recommended to the National Economic and Development
Board (NEDA) by the Committee on Tariff and Related matters after a review of the
country's tariff structure.
The review was agreed upon during the Economic Council held on July 22, 1993 in
response to the request of the private sector to lower the tariffs on capital goods to raw
materials to im- prove their industries competitiveness.
Executive Order No. 460 which is the main administrative instrument of the Tariff
Reform Program envisions the narrowing of the tariff structure to just two levels - three
percent and 10 per- cent in the years ahead.
 NON-TARIFF OBSTACLES TO TRADE
In recent years, growing interference by governments in production and trade introduces
a new element of distortion, which although less conspicuous may be as detrimental to
international trade as traditional forms of protection and which induces other
governments to take protective measures thereby further hampering trade.             Such
indirect methods of protection intended for achieving the same objective are invariably
termed as invisible tariffs. They comprise largely of administrative controls over trade
such as customs regulations and rules as well as regulations promulgated by different
government offices, agencies, bureaus and departments all having the effect of
regulating the flow of imports into the country. Some of the administrative regulations
issued by the government under the guise of protecting the country from the entry of
diseased plants and animals, impure food and drug products, have been indiscriminately
used in some instances to exclude products of foreign countries and thus offer a
measure of economic protection to its domestic products. This has been called indirect
protectionism but more often and rightly termed as invisible tariff, as already indicated
above.
 International trade in certain categories of products is often hampered, made more
costly, or even blocked completely when the government or any authority in the
importing country requires compliance with certain standards or of the product put on
sale.
Origin. Invisible tariff which partakes of the form of administrative 'measures of indirect
protectionism is a concept quite difficult to define. It oftentimes consists of a host of
clandestine and underhanded specific devices for circumventing every kind of
commercial obligation and agreement. Its origin doubtless may be traceable to two
distinct sources, such as: first, the birth and development as well as growth of the spirit
of protectionism within recent times, and second, the increasing regulation of commerce
and industry through the use of police power of the state.*
Examples of Non-Tariff Obstacles
In order to enable the young student to have some idea if not thorough familiarity with a
number of difficulties pre- sent in international trade due to administrative rules and
regulations formulated by the government, it is considered useful and necessary to
quote a few specific examples. This list however is far from exhaustive.
Marking of Origin Requirement. An example of invisible tariff in common use in many
countries of the world is a regulation regarding the marking of country of origin on
goods that enter into an importing country. In this connection, Professor Harold J. Heck
made the following observation. He said:
 “Many foreign traders feel that what appear to be mi- nor regulatory measures or
precautions are even greater obstacles to the international movement of goods than is
the tariff rate. One of these pertains to marks of origin."
Marks-of-origin regulations in this country are governed by section 303 of the Tariff and
Customs Code of the Philip- pines, which provides that every article, good or
merchandise that is ordinarily marked, branded, labelled or stamped must be marked,
branded or labelled, or stamped with the country of origin indelibly, conspicuously and
legibly. Failure to mark the goods with the required country of origin subjects the
merchandise in question to a marking duty of 5% ad valorem.           Professor Heck
maintains that there is no economic justification for requiring goods imported into a
country to be marked with the country of origin. If ever, he believes that this is intended
for political purposes since, according to him, there are merchants as well as producers
who refrain from using products of foreign origin against domestically produced ones.
The United States, France and the United Kingdom im- pose heavy fines for failure to
comply with their regulations regarding country of origin.
Plant Regulations. Plant materials which are governed by special quarantine orders may
be imported into this country only in limited quantities under permit from the Director
Plant Industry from countries which maintain plant quarantine inspection service. Such
importation may be allowed for the purpose of keeping the Philippines supplied with
new varieties and necessary propagating stock.
All plant materials desired to be imported must be free from sand, soil or earth, and all
plant roots, rhizones, tubers, etc., must be washed to thoroughly free them from such
sand, soil or earth, and must be so certified by the duly authorized officer in the country
of origin or by the exporter or shipper.
Safety Standards. Some countries have rules and  regulations governing importations
which are required to comply strictly with their safety standards.
The articles to which standards principally apply are electrical equipment and household
appliances, boilers and pressure vessels, mining equipment, heating appliances and
plumbing accessories, building materials and equipment for aircraft. Not only can
standards differ from  one country to another or even, as in Switzerland, from canton to
canton on relatively minor points but also, and very often the certificates issued by an
authority in the exporting country are not recognized by the importing country. This is
true, in the United States, with respect to boilers and pressure vessels which have to
pass inspection by the ASME. The inspector must check the various phases of
manufacture and it is usually impractical to arrange for such an inspection to take place
outside the United States; moreover, when the ASME: Code Seal has to be stamped on a
boiler under the legislation of any State, imports of boilers cannot take place. The same
is true for safety equipment for installation in ships flying the American flag; such
equipment has to be inspected by a coastguard agent who is unwilling to travel outside
the Uni- ted States for inspection purposes. Similar difficulties are found in the
application of the standards laid down, in the United States by the National Sanitation
Foundation and, with respect to electrical equipment, by the Underwriters' Laboratories.
Similar difficulties arise from the application of Mining Regulations in certain countries.
 In certain cases seals of approval are also demanded but they can be applied either by
inspectors of the imp ng country who are prepared to travel or by a sister organization, 
in the way that the KEMA in the Netherlands can issue the seals of the Canadian
Standards Association for electrical equipment. Finally, certain countries require in
respect of certain categories of equipment guarantees as to the  professional
qualification of welders, thus creating difficulties for foreign manufacturers.
Construction standards appear to affect chiefly wood and wood articles in several
countries, which also subject such articles to a health check.
In addition to the above mentioned cases, there are prior approval authorization
formalities for certain types of equipment in some countries; these formalities can be
extremely burdensome, either by causing considerable delay or by entailing the payment
of high charges. Among the types of equipment affected are: compressed air cylinders
(whether empty or filled), which have to be examined in Italy, France and Pakistan;
pumps and condensors , and farm machines in several countries; aerosol equipment in
France; forklift handling equipment, again in France; industrial ventilators and fire-
fighting equipment in the United States. Since the end of 1968, exports of household
appliances into France are subject not only to the technical visa system but also to a
strict quality check.
For automobiles, safety standards are especially strict in the United States. In Italy and
Japan, the time required for approval of models is very long. Finally, in Greece, maximum
limits on the body length and horsepower of taxis rule out the importation of certain
models for use as taxis.
Health Standards. Prompted by the legitimate concern to protect the consumer's health,
governments have long laid down regulations concerning the dyes, additives or
preservatives which may enter into the composition of food pro- ducts. But international
trade is often greatly complicated by the lack of international agreement both as to the
substances which can be used and as to the margin of tolerance for one and the same
substance. France, for example, prohibits the importation of biscuits with even slight
traces of erythro- sine, a coloring matter which British manufacturers of this product
often use. Certain high quality fish preparations made in Germany cannot be imported
into such countries as Italy, the United Kingdom, and France because they contain as
additives which are prohibited in those countries. The United States allows the use of up
to 300 milligrams of  sulphur  dioxide for the preservation of dried fruit, whereas French
regulations place the limit at 200 milligrams. Of 150 food pro- duct samples imported
from the United States by a large Italian chain of supermarkets, only 15 were accepted
by the authorities as meeting their standards. In some countries regulations concerning
the presence of traces of insecticide in such products as cheese seem slightly
overscrupulous.
Switzerland prohibits the importation of confectionery containing adipic acid, whereas
many countries recognize that it is innocuous . The disparity of the regulations in
question sometimes compels exporters to produce goods of a particular quality for
certain countries; this is true of Ameri- can fruit juice producers wishing to come into the
French market, since France prohibits the sale of fruit juice containing dextrose, a
substance frequently used in the United States to give an evenly sweet taste to fruits
which are not all equally ripe.       Likewise, it may also be noted that in certain instances,
health standards are applied to such articles as toys, pencils and packaging of foodstuffs,
which although not edible, can cause poisoning. However, difficulties arise from
divergences among national regulations or from the lack of agreement on the toxicity of
certain dyes or lack of specific criteria as to tolerances. Concern with hygiene extends
also to the equipment used in the food industries and in cold storage installations and
even to kitchen utensils, including enamel sauce- pans
In a number of cases the authorities of the importing country required the importer to
produce a very detailed certificate or else they refuse to recognize a certificate issued in
the exporting country and conduct their own examination, which may be time-
consuming and costly; in Italy, for instance, a veterinary inspection entails a tax which
may be as high as 7.5 % of the value of the product. Similar measures are applied in
Switzerland.
Pharmaceutical Products. In most countries, the sale of pharmaceutical product is
subject to official control and new products cannot be put on public sale without having
been approved by an official body. Although the rules are generally the same for the
local product and the imported product, application of the rules involves de
facto discrimination which artificially protects the local manufacturer and can even
exclude foreign competition altogether. Thus, certain governments limits the list of
products which may be sold to those appearing in a given pharmacopeia: several African
countries for instance, take the British pharmacopeia or French Codex as their reference.
Approval of a foreign product can be withheld for a variety of reasons: either because
similar products are already on sale as in the case of Senegal, or because no local
research or additional  tests have been conducted in the importing country, as in such
countries as the United States, West Germany, Belgium, France, and Italy, or simply due
to the fact that the governmental body charged with this function and responsibility
lacks the necessary expertise to carry out the necessary verification. Still, in some
instances, the reason behind could be due to the fact that the authorities concerned do
not consider the products as being necessary from the medical point of view. In France,
the importation of pharmaceutical specialties are allowed to be imported into the
country if they come in bulk. Moreover, approval procedures may entail considerable
cost and in a number of instances, lengthy delays, particularly when the number of
recognized experts is inadequate to fill in the need for their services or when inspection
is extended to the manufacturing process used in factories abroad, for example in the
United States. In Austria, there is a constant backlog with the granting of registration,
particularly with foreign products, as the Federal Laboratory cannot cope up with the
number of chemical and pharmaceutical tests which it insist upon to carry out instead of
recognizing foreign testing  results. In some countries, among others Portugal, the
authorities recommend to the medical profession to prescribe national products inly as
far as possible. Moreover, it also happens that among product having the same
therapeutic indication, only one national and one foreign product can be registered with
its brand name, all others must bear the generic name only as is obtaining in Denmark. In
Belgium, on the other hand, import duties may be taken into account when fixing the
price. Restrictions on the distribution of medical samples as in Norway and Denmark are
observed to be more of a hindrance for foreign suppliers that for national manufacturers.
For these various reasons, manufacturers of pharmaceutical products are frequently
compelled to abandon plans to place a certain medicine on scale, as they cannot justify
the investment which would be needed for manufacture in the country of consumption.
Similar regulations are found with respect to chemicals used in agriculture and in certain
countries, such as Spain and Greece, the rules on medicines are unjustifiable applied to
perfumes and cosmetics.
Product Content Requirements. The list of products, whose international marketing is
hampered by the regulations as to composition, quality of properties, is long: tinned
meats, fish and vegetables, sausage meats, cheeses, biscuits, seasoning, etc. A product
such a “pate de campagne” can, for instance, be imported into Germany only provided it
has been approved by the official testing laboratories in each “Land” and they do not all
apply the same criteria.
In addition, new hindrances have been observed within recent years with respect to
varied range of products. For textiles, for instance, the extension of the provisions of the
“Flammable Fabrics Act” to furnishing fabrics considerably hampers the exportation of
such articles to the United States. The same is true, for instance, of the Spanish law of
May 1968 setting quality standards for the synthetic fibers which may enter into the
composition of fabrics.
In the United States, the labelling od woolen goods is subject to strict rules under the
Wool Products Labelling Act. The Bureau of Customs has legal powers to exercise
control over labelling which may involve costly testing at the importer’s expense.
However, importers have now been given a right of appeal.
Labelling and Container Regulations. It is in the field of regulations concerning labelling
and containers that some of the most numerous, most divergent and most troublesome
problems for exporters arise. It is clearly impossible to devise a system of packaging and
labelling which could be used for exports to all countries. It is therefore necessary to
pack especially for each country to destination and this leads to an increase in costs.
To an increasing extent, governments attempts to protect the consumer against suspect
selling methods by obliging the seller to deliver the articles in recipients of a given
capacity as required by the governments of Canada and Madagascar to indicate the
weight or volume in a specified unit of measure, to state the exact composition of the
product exclusively in the language (s) (three in Switzerland) of the importing country, to
comply with detailed rules as to labelling. In Uruguay, even the dimension of the label are
regulated. In Japan, on the other hand, the label must indicate the country of importation
and name of the distributor. With respect to tinned goods the exact date on which the
product was tinned (or even the exact hour, as for tomatoes in Canada) has sometimes
to be marked.
Among the countries having introduced new regulations since 1957 is Italy, which
prohibits for example, the sale of vinegar in plastic bottles whereas this is authorized in
other countries. Lack of international standardization on the size of tins for foods
product is a considerable obstacle to trade in such goods. France, Germany and South
Africa prohibit imports in tins whose sizes do not meet their own norms, which differ
from those applied in such countries as the United States, Japan and Sweden; however,
import of canned foodstuffs is authorized in Germany in any case of quantities
contained, expressed in German units of weight and volume, are clearly indicated in
German.
Several countries, such as Australia, Canada, Spain, United States, Italy, United Kingdom,
Switzerland and Venezuela in recent years have reinforced their regulations concerning
compulsory indicators to be marked on the goods themselves or on each packet. The
indicators which must be marked on the goods or on the packet vary from one country
to another or even, in a country like Australia, from one State to another. They must
often appear in the language of the importing country and in letters of specific
dimensions as in the case of the United States and must generally cover the composition
of the product, the weight (net and /or gross), the producing firm, the importing firm, etc.
Those products most affected are textiles, food in cans, certain packaged bakery
products, etc. These divergent regulations, needles to point out, give rise to higher
production costs by obliging exporters to use different labels or have additional
indications affixed to the products at the time of Customs clearance in the importing
country.
In the interest-of consumer protection, most governments control weights and measures
and, especially weighing machines, even if they are not used for purposes of sales of the
public. Compliance with these requirements should not involve a double check, delays,
and expense for the importer of weighing machines and other measuring instruments.
System of Licensing. In certain countries of the world, import permits or licenses are
required for the entry of a certain quantity of a product or of a category of given
products. In most cases, delivery of that license automatically entitles the businessmen-
trader to obtain foreign exchange that will be used to finance the importations in
questions, although, in certain countries, allocates of foreign exchange require separate
formalities.
Procurement of a license may also be required for control purposes, even though the
government does not intend to limit imports, often because the government wishes to
keep a close tally on the movement of certain imports so as to be in a position to
intervene rapidly should they suddenly increase to abnormal proportions. Or again, the
purpose of this control may be to supervise prices of imported goods with a view to
checking that prices are not too high or abnormally low.
Even when licenses are granted automatically or at least very liberally, maintenance of a
prior control often impedes trade, discourages exports and entails costs which distort
the terms of competition with local producers. Many businessmen have pointed out the
disadvantages attaching to maintenance of a licensing system, which leaves full scope for
administrative protectionism. The delay in obtaining approval of the license, for instance,
due to red tape, corruption and bribery as was rampant during the days of the defunct.
Import Control Commission in the Philippines have contributed to a drastic rise in prices
of imported goods with the ultimate consumers being made to shoulder the amount of
grease money that passed into the hands of corrupt government officials charged with
the approval of such import licenses.
In fact, it was observed then that in a number of instances, those who were unwilling to
offer bribes involving fat amounts of money found it difficult, if not impossible, to have
their applications for import licenses approved. Still, in other instances, applications were
left unacted upon, with the officials concerned giving no reason why they are made to
gather dust in the files of bureaucratic officials of the government.
However, abuses in the grant of licenses to businessmen-traders are not confined only
to importation. The same also at times apply to exports. Where such is the case, the
businessman denied with an export license is placed in a predicament: his competitive
position becomes weakened in the other foreign suppliers where export licensing
scheme does not exist are able to take advantage of the market situation. Still, non-
exportation due to red tape and the like means a denial of precious foreign exchange
needed by the country.
 Consular Formalities and Documentation. Apart from tariffs and the documentation and
procedures connected with the payment of duties on goods crossing frontiers, there are
a number of customs formalities and requirements which call for improvement, if they
are not to cause a slow down in the movement of goods as among participating
countries. The requirement of special “customs invoices” in force in many countries is a
substantial trade barrier.
The following statement made by the International Chamber of Commerce are
noteworthy:
“The ICC fully recognizes that governments are entitled to intervene in the distribution
of articles for consumption or of certain types of equipment in order to protect
consumers and users. It finds, however that in a considerable number of cases, the
application of such regulations seriously hampers international trade and directly or
indirectly, constitutes an effective protection of the local producer. Often the
protectionist intention is obvious or is ill concealed. It may also happen that application
of standards, especially when they call for a control in the country of consumption, in
practice prohibits all importation of the product concerned, producing the same effect as
would an administrative prohibition. In other cases, importation remains possible but the
costs occasioned by the control requirements increase the cost of the imported item as
would a customs duty.”
Continuing further, the report states:
“The existence of dissimilar national requirements and the lack of specific criteria can
give rise to disputes, to a notable increase in introductory marketing costs, and to
considerable delays in delivery. Finally, it would seem that certain administrations,
striving for protection, end up by issuing standards of increasing complexity and exotic
interpretation. Of course such regulations are a nuisance to the local producer, but they
present even greater problems for foreign producers, who have meet a number of
different standards in order to sell in different markets.”
Quantitative Restriction
 
Generally speaking, the trade policy of developing countries is dominated by quantitative
restrictions on imports. Very often, balance of payments difficulties have led
governments to apply quantitative controls which could be implemented rapidly and
become effective immediately. These controls have come to be known under the term
quotas.
Quotas, defined. Quotas or imports or exports represent a type of quantitative or direct
trade restrictions. Quotas are restrictions imposed by one country on the volume and
kind of goods that may be allowed to enter or leave that country. While quotas are
imposed on exports, their uses not quite common unlike quotas on imports. Quotas in
exports may be observed practiced in connection with bilateral trade agreements.
Imposition of Quotas. In the 20th century, quotas were first imposed on a large scale
during and immediately after the first world war. As a matter of fat, such quantitative
restrictions (quotas) were observed to have been an integral part of war economies.
However, almost immediately after he signing of the armistice on November 11, 1918,
quantitative restrictions on trade were fairly and rapidly abolished in practically all
European countries.
With the great depression in the early 1930’s, the adoption of quotas was again resorted
to as a measure of protection for the various industries of different countries. After
1931, one country after another took almost a uniform step, that of imposing quotas,
first on cereals and certain other foodstuffs and then on a variety of agricultural and
industrial products.
 
Advantage of Quotas
 
Quotas versus Tariffs. As is observed in countries where quotas are imposed, they
doubtless represent a very effective device in restricting the flow of goods and as a
consequence, they thus produce a very distributing effect on international trade. If a
quota is to be truly effective, the amount (and even the kinds) of goods that could be
imported into the country will indeed be very much smaller than otherwise would be the
case in its absence and such would thereby create a price differential between the
importing and exporting country which is not covered by the transportation cost.
Under a system of tariff, however, good could still be entered into the importing country
even when made subject to very high rates of import duty, provided of course, that the
businessmen are willing and moreover able to pay such duties imposed upon the goods.
In other words, businessmen are not denied the freedom of action, that is, whether to
import, as compared with systems of exchange control and quotas. Moreover, if
production cost as well as prices abroad fall and rise in the importing country, then,
sense of high tariff walls. In fact, in a number of instances, the effect of a tariff can be
offset by a depreciation of the foreign currency or by the grant of export subsidy.
It may also be pointed out that although tariffs allow domestic inefficiency to develop,
they are less objectionable when compared to a system of quotas. While they contribute
to a rise in the price of imported goods, nevertheless, they do not arbitrarily prevent all
imports beyond a certain point. Final or intermediate consumers of an item can still
purchase more if they wish to pay a higher price. Even more important for long-run
efficiency, the sales of foreign producers are not frozen at some fixed volume or fixed
market share. If foreign producers can reduce their costs of production, they can
increase their share of the market in a country imposing a given ad valorem or specific
duty.
 
Classification of Quotas
 
Autonomous or Unilateral import Quota. An autonomous or unilateral import quota
refers to quantitative restriction placed by a country on the products that could enter
her territory during any one period
Global quota versus Allocated Quota. At this stage it might be asked: which is preferable
of the two quotas the global quota or the allocated quota?
In many cases, the global quota has proved very disadvantageous notwithstanding the
claim of its advocates that its use does not in any way discriminate against any exporting
country in the world since an importer, as may be observed, can import from any country
of his choice. However, in as much as only the amount of the goods that may be
imported into the country  is fixed, there frequently results a competitive rust to fill the
quota among importers and foreign exporters. Obviously therefore, exporting countries
which are situated far away from the importing country are placed at a disadvantageous
position compared to those nearby. This is because before the products of far distant
countries could reach the importing country and be within the quota, it is quite possible
that those of neighboring countries have not only arrived but most likely have filled up
the quota. As a consequence therefore those goods which can not arrive before the
quota is reached become subject to the penalty of confiscation by the government of
the importing country.
Bilateral Quotas, Bilateral quotas or contractual quotas, as sometimes they are called,
are the result of negotiation and agreement between two parties, that is, the
government of the importing country and the government of the exporting country.
Many countries have worked out agreements intended to be more generous in the
application of their quotas. Some of the advantages that may be mentioned in favor of
the use of bilateral quotas are:

1. Since bilateral quotas are the result of the agreement between the importing
country and the exporting country, provisions could be made to have the entry of
goods into the importing country more or less evenly, thus avoiding the otherwise
excessive fluctuations that frequently attend to the use of global quotas.
2. Animosities, which are usually observed in the adoption of unilateral quotas, are
reduced, since in the case of the bilateral import quota the amount and kind if goods
place under the quota are the result of understanding and agreement between the
two countries concerned.
3. Export groups, under the bilateral import quota, have greater natural interest in
preventing the amount and kind of goods placed under the quota are the result of
understanding and agreement between the two countries concerned.
 
Tariff  Quota. By tariff quota is meant a regulation imposed by a government which
permits the entry into the importing country of a certain quantity of a commodity under
preferential treatment either in the form of duty-free entry or of flow rate of import
duty.
It should be made clear that while a fixed quantity of certain products is specified, it does
not imply that the exporting country cannot ship such specified products in amounts in
excess of the quota. While additional amounts over and above the tariff quota may be
allowed to enter into the importing country, such additional amounts will lose the
preferential treatment to which they would have been entitled had they fallen within the
quota. In such case, these additional amounts over and above the specified quota shall
be subject to the same rate of import duty imposed on such articles as if it had come
from a third country. Briefly stated, a tariff quota is generally the result of an agreement
between the two countries.
Mixing and Milling Quota. A very subtle method of restriction to importing is the
requirement in some countries that in the manufacture or processing of certain products,
a specified proportion of domestically produced raw materials or products should be
used. This form of trade restriction is commonly known as milling and mixing quota.
Export Quotas. Under certain conditions, export quotas are established regardless of
price and the quantity of certain exports that may be allowed to leave a country destined
to any importing country.
Effects of Quotas
 
The quantitative restrictions now in force on a number of products have a significant
effect on the efficient use of world resources. The most injurious are the restrictions on
coal, petroleum, agricultural products and cotton textiles based on documents complied
by the General Agreement on Tariffs and Trade.
Effects on Prices. What are the effects of quotas on the prices of imported goods in the
importing country? It may be asked.
Briefly stated, the extent of the price rise will depend upon the following factors:
 

1. The degree to which the foreign supply is restricted. Thus, if only a very small
percentage of goods are allowed to enter into the importing country, even with the
demand remaining constant, doubtless, a price rise will necessarily become inevitable.
2. The volume and elasticity of demand in the importing country. It need not be
stated very strongly that where the demand for the import product subject to quota
is elastic, a fall in its supply will generate a rise in price.
3. The elasticity of both foreign and domestic supply. If the volume of goods
imported falls off due to the quota, no sharp increase in price will be registered
provided that such decrease could be easily filled up within the importing country
that is comparable in quality, utility and other factors and therefore are equally
accepted by the consumers as much as those imported from abroad.
To further deepen students’  knowledge on Tariff-Instrument of National Policy and
Non-tariff Obstacles to Trade Including Quantitative Restrictions, they may watch this
videos   and  read this article : https://www.youtube.com/watch?
v=bPvydDQlgm4&ab_channel=3GSchoolofEntrepreneurship  (Links to an external site.)
 ; http://www.neda.gov.ph/wp-content/uploads/2019/04/IRR-of-
RA-No.-11203-or-the-Rice-Liberalization-Act-RLA_signed.pdf   (Links to an external
site.);
http://www.sgv.ph/changes-under-the-customs-modernization-and-tariff-act-an-
overview-by-mark-anthony-p-tamayo-june-6-2016/ (Links to an external site.)
IRR-of-RA-No.-11203-or-the-Rice-Liberalization-Act-RLA_signed.pdf
changes under the customs modernazation and tariff act.docx