Francis Josef T.

Goingo
Tax 2
2004-46561
Lucenario

Prof.

Frequently Asked Questions on Legislations giving the Tarif

Commission
Additional Major Responsibilities as a Quasi-Judicial Body
Part 1: Anti-Dumping Law (RA 8752)
1. What is Dumping?
Dumping is a form of price discrimination between two national markets. It
occurs when foreign producers sell their products to an importer in the
domestic market at prices lower than in their own national markets, or at
prices below cost of production, the sale or importation of which injures or
threatens to injure a domestic industry producing like or comparable products
or retards the establishment of a potential industry.
2. What is the Anti-Dumping Act of 1999?
Republic Act No. 8752 is known as the Anti-Dumping Act of 1999. It
amended Section 301 of the Tariff and Customs Code of the Philippines,
providing protection to a domestic industry which is being injured, or is likely
to be injured, by the dumping of products imported into or sold in the
Philippines.
3. When was the Anti-Dumping Act of 1999 signed into law?
R.A. 8752 was signed on August 12, 1999
4. When does it take effect?
It took effect on September 4, 1999.
5. What are the FOUR elements of dumping?
I.

II.

Like Product
Product produced by the domestic industry which is identical or
alike in all respects to the article under consideration, or in the
absence of such a product, another product which, although not
alike in all respects, has characteristics closely resembling those
of the product under consideration.
Price Difference

III.

IV.

Amount by which the normal value (the price prevailing in the

exporting country) exceeds the export price (selling price to an
importer in the Philippines).
Injury
Material injury to a domestic industry, threat of material injury or
material retardation of the establishment of a domestic industry.
Injury test must be based on positive evidence and must involve
an objective examination of both (a) the volume of the dumped
imports and the effect of dumped imports on the prices of like
product in the domestic market, and (b) the consequent impact
of these imports on the domestic producers of such products.
Causal Link
Must exist between the injury being suffered by the domestic
industry and the dumped imports. It must be clear that the
injury suffered is directly attributable to the alleged dumping.

6. Who may file an anti-dumping protest?

A protest may be filed by, or on behalf of, the domestic industry, in writing
and embodied in a notarized form.
7. Are there fees to be paid for formal investigation of an anti-dumping
case?
Petitions found to be meritorious under R.A. 8752 are subject to a filing fee of
fifteen thousand pesos (P15,000.00) per article.
8. Aside from the domestic industry, who else may initiate an antidumping case?
In special circumstances, DTI or DA may, on its own motion, initiate an antidumping investigation without having received a written application by or on
behalf of a domestic industry. The concerned authorities should have
sufficient evidence of dumping, injury and a causal link to justify the initiation
of the investigation.
9. What is the role of the Tariff Commission in anti-dumping
investigations?
The Commission conducts formal investigation and submits report of findings
to either Secretary for the issuance of a Department Order imposing the
definitive anti-dumping duty (in case of affirmative findings).
10.
What is the timetable for the completion of the formal
investigation by the Commission?
The Commission shall submit within one hundred twenty (120) calendar days
from receipt of the case its Final Report of Findings and decision to the
Secretary of Trade and Industry (in the case of industrial goods) or to the

Secretary of Department of Agriculture (in the case of agricultural products)

for the issuance of the appropriate Department Order.

Part II: Countervailing Duty (RA 8751)

1. What is a Countervailing Duty?
A "countervailing duty" is a special duty levied, in addition to the regular duty
and other charges, by an importing country on its imports which have been
found to be subsidized in the country of origin or exportation. It is equal to
the ascertained amount of subsidy, calculated in terms of subsidization per
unit of the subsidized exported product.
2. What is a Countervailing Bond?
A "countervailing bond" is a security (cash deposit or bond) equal to the
amount of the provisionally calculated amount of subsidization. It is required
to be posted when the investigating authorities judge that such measure is
necessary to prevent injury being caused to the domestic industry during the
investigation.
3. What is the Countervailing Duty Act of 1999?
Republic Act No. 8751, otherwise known as the Countervailing Duty Act of
1999, which amended Section 302 of the Tariff and Customs Code of the
Philippines, provides protection to a domestic industry which is being injured,
or is likely to be injured, by subsidized products imported into or sold in the
Philippines.
4. When was RA 8751 signed? When did it take effect?
R.A. 8751 was signed on August 7, 1999 and took effect on August 31, 1999.
5. What are the FOUR elements or factors to be considered before a
countervailing duty may be imposed?
I.

II.
III.

Like Product
Product produced by the domestic industry which is identical or
alike in all respects to the article under consideration, or in the
absence of such a product, another product which, although not
alike in all respects, has characteristics closely resembling those
of the product under consideration.
Subsidy
Any financial assistance extended to the production,
manufacture, carriage or export of goods.
Injury
Material injury to a domestic industry, threat of material injury or
material retardation of the growth or the prevention of the

IV.

establishment of a domestic industry. Injury test must be based

on positive evidence and must involve an objective examination
of both (a) the volume of the subsidized imports and the effect
of subsidized imports on the prices of like product in the
domestic market, and (b) the consequent impact of these
imports on domestic producers of such products.
Causal Link
The material injury suffered by the domestic industry is the
direct result of the importation of the subsidized product.

6. Who may file a petition for countervailing action?

A petition may be filed by or on behalf of the domestic industry in writing and
should be embodied in a notarized form.
7. Aside from the domestic industry, who else may initiate a
countervailing investigation?
In special circumstances, DTI or DA may, on its own motion, initiate a
countervailing action. The concerned authorities should have sufficient
evidence of subsidization, injury and a causal link to justify the initiation of
the investigation.
8. Are there fees to be paid for a countervailing case?
Petitions found to be meritorious under Section 8751 are subject to a filing
fee of fifteen thousand pesos (P15,000.00) per article.
9. What is the role of the Tariff Commission in subsidies and
countervailing investigations?
The Commission conducts formal investigation and submits report of findings
to either DTI or DA Secretary for the issuance, in case of affirmative findings,
of a Department Order concerning the imposition of the definitive
countervailing duty.
10.
What is the timetable for the completion of the formal
investigation by the Commission?
The Commission shall submit within one hundred twenty (120) calendar days
from receipt of the case its Final Report of Findings and decision to the
Secretary of Trade and Industry (in the case of industrial goods) or to the
Secretary of Department of Agriculture (in the case of agricultural products)
for the issuance of the appropriate Department Order.

Part III: Safeguard Measures (RA 8800)

1. What is the law on the application of safeguard measures?

Republic Act No. 8800, otherwise known as the Safeguard Measures Act
provides for:
General safeguard measures to relieve domestic industries
suffering from serious injury as a result of increase in imports;
and
Special safeguard measures (additional duty not exceeding 1/3
of the existing rate of duty) on agricultural products marked
SSG in Schedule LXXV-Philippines, when the import volume
exceeds its trigger level or when the actual c.i.f. import price
falls below a trigger price level.
2. What is the reason for the application of safeguard measures?
The reason for the application of safeguard measures is to give the affected
domestic industry time to prepare itself against, and adjust to, increased
import competition because of the reduction of tariffs or the lifting of
quantitative restrictions.
3. When was RA 8800 signed into law?
President Estrada signed the law on July 19, 2000. R.A. 8800 was published
on July 24, 2000.
4. When did it take effect?
It took effect on August 09, 2000, i.e., fifteen (15) days following its complete
publication in newspaper of general circulation.
5. Who may file a petition for GENERAL safeguard measures?
I.

II.
III.

Domestic producers as a whole, of like or directly competitive products

manufactured or produced in the Philippines, or those whose collective
output of like or directly competitive products constitutes a major
proportion of the total domestic production of those products;
The President, or the House or Senate Committee on Agriculture, or the
House or Senate Committee on Trade and Commerce; and
The Secretary of the Department of Trade and Industry (DTI) or the
Secretary of the Department of Agriculture (DA), motu proprio, if there
is evidence of increased imports of the product under consideration.

6. Who may file a petition for SPECIAL safeguard measures?

I.
II.

Any person, whether natural or juridical may request a verification if a

particular agricultural product can be imposed a special safeguard
duty.
The DA Secretary may, motu proprio, initiate the imposition of a
special safeguard measure following the satisfaction of the conditions
for imposing the measure.

7. Are there any fees to be paid for a formal investigation of a general

safeguards case?
Petitions found to be meritorious under R.A. 8800 are subject to a filing fee of
fifteen thousand pesos (P15,000.00) per article.
8. Where are petitions for general safeguard measures filed?
Petitions for general safeguard action shall be filed with the DTI Secretary
involving non-agricultural products, or with the DA Secretary in cases relating
to agricultural products. The concerned Secretary shall determine whether or
not the petition is proper in form and substance and whether or not the
documentary requirements are complied with.
9. Where are petitions for SPECIAL safeguard measures filed?
Petitions for special safeguard measures shall be filed with the Secretary of
the Department of Agriculture.
10.
What is the role of the Tariff Commission in general safeguards
investigation?
The Commission shall conduct the formal investigation to determine:
a. If the domestic product is a like product or a product directly competitive
to the imported product under consideration;
b. If the product is being imported into the Philippines in increased quantities
(absolute or relative to domestic production);
c. The presence and extent of serious injury or threat thereof to the
domestic industry that produces like or directly competitive product; and
d. The existence of a causal relationship between the increased imports of
the product under consideration and the serious injury or threat thereof to
the affected domestic industry.
11.
What is the timetable for the completion of the formal
investigation by the Commission?
The Commission shall conclude its formal investigation and submit a report of
its findings and conclusions to the Secretary within one-hundred-twenty (120)
calendar days from receipt of the request from the Secretary, except when
the Secretary certifies that the same is urgent, in which case the Commission
shall complete the investigation and submit the report within sixty (60)
calendar days.
Upon its positive determination, the Commission shall recommend to the
Secretary an appropriate definitive measure.

Source: Tariff Commission Service Manual 2011 and the relevant Republic Acts