SPECIAL DUTIES

• Special Customs Duties

• are additional customs duties imposed on specific kinds of imported
articles under certain conditions and for particular purposes.

• Rationale Or Purpose For Imposing Special Duties

• To protect consumers and manufacturers, as well as Philippine products

from undue competition posed by foreign made products.

• To protect domestic industries and producers from increased imports

which inflict serious injury on them.
Kinds of Special Customs Duties
1. Anti-Dumping Duty
2. Countervailing Duty
3. Marking Duty
4. Discriminatory Duty
5. General Safeguard Measures
6. Special Safeguard Duties
Distinctions on the basis of rates
1. Anti-Dumping Duty – shall be equal to the difference
between the actual price and the normal value of the
article.
A. Cash (Anti-Dumping Bond)
FORMULA:
ADB= ONV- EV (where: ONV= Original Normal
Value; EV- Export Value)
2. DUMPING MARGIN

DM = NV - EP
EP
If expressed in %;
% of Dumping = NV – EP x 100
EP

NOTE: Export price is FOB Value per invoice

Distinctions on the basis of rates
1. Anti-Dumping Duty – shall be equal to the difference
between the actual price and the normal value of the
article.
B. Anti-Dumping Duty
FORMULA (1):
ADD= FNV- EV ( where: FNV= Final Normal
Value; EV- Export Value)
EXAMPLE:
1. In a dumping case before the Secretary of Finance, the Tariff
Commission after review of documents on hand, recommended
the normal export value of bond paper at P 50,000 per MT from
the original normal export value in the protest of P 60,000 per
MT versus P 20,000 as the entered export value of the shipments
under consideration. The case is resolved by the Tariff
Commission and shipment is subject to 10% tariff rate. Use P
5,000 for freight and insurance. Find the amount of ADB and
ADD.
SOLUTION:

a. ADB= ONV- EV b. ADD= FNV- EV

ADB= P 60,000- P 20,000 ADD= P 50,000- P 20,000
ADB= P 40,000 ADD= P 30,000
C. Anti- dumping Duty

FORMULA (2):
Dumping Margin x ROE = Dumping duty

FORMULA (3):
Anti- Dumping Duty = FOB/MT x Total MT x ROE x DM
EXAMPLE:
Given:
Shipment : 65MT – what flour from turkey
Total CPT : $ 24,000
Total Freight : $ 4,500
Normal Value : $376.75 per metric ton
ROE : P 50.418/ $1.00

Find: TOTAL DEFINITIVE DUMPING DUTY

A. P 251,203.05 C. P 200,267.86
B. P 251,490.03 D. P 315,829.56
SOLUTION:
FORMULA:
Anti- Dumping Duty = FOB/MT x Total MT x ROE x DM

FOB= $24,000 - $4,500/65 DM = NV-EP

FOB= $19,500/65MT EP
FOB/MT= $300 = $376.75 X 65 – $19,500
$19,500
DM = 0.2558 x 100
DM = 25.58%
FORMULA:

Anti - Dumping Duty = FOB/MT x Total MT x ROE x DM

ADD = $300 X 65MT X Php50.418 X 0.2558

ADD = Php 251,490.03
Distinctions on the basis of rates
2. Countervailing Duty – shall be equivalent to the subsidy.

FORMULA:

CD= 100% SUBSIDY

Distinctions on the basis of rates
3. Marking Duty – shall not exceed 5% ad valorem of the
articles (0.05DV)

4. Discriminatory Duty – shall not exceed 100% ad valorem

of the articles
EXAMPLE:
Given:
Shipment : 50 crates – Various Pipe Fittings
Total CFR : $25,750
Total Frt : $1,950
Frt/Inv : $1,950
Frt/BL : $2,000
ROE: : Php 48.725/1.00
BOC Findings : No country of Origin on crates

FIND: TOTAL MARKING DUTY

A. Php 64,014.91 C. Php 63,890.66
B. Php 65,174.56 D. Php 65, 047.88
SOLUTION:
FOB = $25,750 - $1950
FOB = $23,800 (0.02)
Ins = $476

CFR = $25,750 + $476 + $50 (add the difference between comparable freight)
DV$= $26,276 x 48.725
DV Php = Php 1,280,298.10

MD = Php 64,014.91
SOLUTION (2):
FOB $23,800
Ins $476
Frt $2000
DV $26,276
ROE 48.725
DV Php 1,280,298.10 X 0.05

MD = Php 64,014.91
Distinctions on the basis of rates
5. General Safeguard Measures- Upon positive determination, the Tariff
Commission shall recommend to the concerned Secretary an appropriate definitive
measure, in the form of:
(1) An increase in, or imposition of, any duty on the imported product;
(2) A decrease in or the imposition of a tariff-rate quota (Minimum Access Volume)
on the product;
(3) A modification or imposition of any quantitative restriction on the importation of
the product into the Philippines;
(4) One or more appropriate adjustment measures, including the provision of trade
adjustment assistance; and
(5) Any combination of actions described in subparagraphs (1) to (4).
PROVISIONAL SAFEGUARD DUTY
CMO 39-2021
“Pursuant to the Letter dated 26 November from the Department of
Trade and Industry (DTI) and in view of the directive dated 16
December 2021 from the Secretary of Finance, the previously
determined definitive safeguard duty of P200/MT or P8.00/40 kg bag
under DTI DAO No. 19-13 for the third, and last year of implementation
of the safeguard duty on imported cement, classified under AHTN
Codes 2523.29.90 and 2523.90.00 from covered countries starting
October 22, 2021 is hereby imposed”.
Distinctions on the basis of rates
6. Special Safeguard Duty- An additional special safeguard
duty is imposed on an agricultural product, consistent with
Philippine international treaty obligations, whenever the
cumulative import volume in a given year exceeds its
trigger volume and when the actual c.i.f. (Cost, Insurance and
Freight) import price falls below its trigger price. The special
safeguard duty is imposed by the Commissioner of Customs,
through the Secretary of Finance, upon request by the
Secretary of Agriculture.
PRIC PRICE SSG DUTY
E DIFFERENCE OF
TEST TRIGGER PRICE
1 PD < or = 10% ZERO

2 >10PD < or = 40% [30% x {PD-(10% x TP)]

3 >40PD < or = 60% [50% x {PD-(10% x TP)] + [30% X {PD- ( 10%XTP)}

4 >60PD < or = 75% [70% x {PD-(10% x TP)] + [50% X {PD- ( 10%XTP)} + [30% X {PD-
(10%XTP)]

5 PD > 75% [90% x {PD-(10% x TP)] + [70% X {PD- ( 10%XTP)} + [50% X

{PD-(10%XTP)] + [30% X {PD-(10%XTP)]
EXAMPLE:
A food corporation imported 1000 MT of frozen meat with CIF value of
$15.00 per MT. The Secretary of Agriculture established the trigger
price of Php 1000.00 per MT before the BOC. Determine the Special
Safeguard Duty to be imposed with P50.oo per USD as the exchange
rate.
Sec. 709. Government’s Right of Compulsory
Acquisition
In order to protect government revenues against
undervaluation of goods, the Commissioner may,
motu propio or upon the recommendation of the
District Collector, acquire imported goods under
question for a price equal to their declared customs
value plus any duties already paid on the goods,
payment for which shall be made within ten (10)
working days from issuance of a warrant signed by
the Commissioner for the acquisition of such goods.
Sec. 709. Government’s Right of Compulsory
Acquisition
An importer who is dissatisfied with a decision of
the Commissioner pertaining to this Section may,
within twenty (20) working days after the date on
which notice of the decision is given, appeal to the
Secretary of Finance and thereafter if still dissatisfied,
to the Court of Tax Appeals (CTA) as provided for in
Section 1136 of this Act.
Sec. 709. Government’s Right of Compulsory
Acquisition
Where no appeal is made by the importer, or upon
reaffirmation of the Commissioner’s decision during the
appeals process, the Bureau or its agents shall sell the
acquired goods pursuant to existing laws and regulations.
Nothing in this section limits or affects any other
powers of the Bureau with respect to the disposition of
goods or any liability of the importer or any other person
with respect to an offense committed in the importation of
the goods.
EXAMPLE:
1. A shipment of 1x20’ STC 4500 bags of skimmed milk has been imported from
Thailand. Such importation has declared customs value $18,000 while after applying
the valuation method the District Collector determined the customs value should be
equivalent to $29,000 with a given rate of duty of 10%. The ocean freight per B/L is
amounting to $5000. How much is the amount payable to the importer by the Bureau
if WCA was issued by the Commissioner after the recommendation of the District
Collector. Miscellaneous Expense was amounting to Php 8000. Use the exchange rate
of Php 53.00 / $1.00.
SOLUTION:
Declared Customs Value: $18,000 CUD Php 186,348
FOB $ 29,000 VAT Php 246,939
Ins $ 1160 IPF Php 2,000
Frt $ 5000 CDS Php 280
DV $ 35,160 Php435,567 + $18,000 (53.00) (declared customs value)
Php 53.00 Final Answer : PHP 1,389,567
DV Php 1,863,480
ROD 10%
CUD Php 186,348
ME Php 8,000
LC Php 2,057,828
VR 12%
VAT Php 246,939.36
EXAMPLE:
Given:
Shipment : 65MT – what flour from turkey
Total CPT : $ 24,000
Total Freight : $ 4,500
Normal Value : $376.75 per metric ton
ROE : P 50.418/ $1.00

Find: TOTAL DEFINITIVE DUMPING DUTY

A. P 251,203.05 C. P 200,267.86
B. P 251,490.03 D. P 315,829.56
EXAMPLE:
Given:
Shipment : 50 crates – Various Pipe Fittings
Total CFR : $25,750
Total Frt : $1,950
Frt/Inv : $1,950
Frt/BL : $2,000
ROE: : Php 48.725/1.00
BOC Findings : No country of Origin on crates

FIND: TOTAL MARKING DUTY

A. Php 64,014.91 C. Php 63,890.66
B. Php 65,174.56 D. Php 65, 047.88
EXAMPLE:
A food corporation imported 1000 MT of frozen meat with CIF value of
$15.00 per MT. The Secretary of Agriculture established the trigger
price of Php 1000.00 per MT before the BOC. Determine the Special
Safeguard Duty to be imposed with P50.oo per USD as the exchange
rate.
EXAMPLE:
1. A shipment of 1x20’ STC 4500 bags of skimmed milk has been imported from
Thailand. Such importation has declared customs value $18,000 while after applying
the valuation method the District Collector determined the customs value should be
equivalent to $29,000 with a given rate of duty of 10%. The ocean freight per B/L is
amounting to $5000. How much is the amount payable to the importer by the Bureau
if WCA was issued by the Commissioner after the recommendation of the District
Collector. Miscellaneous Expense was amounting to Php 8000. Use the exchange rate
of Php 53.00 / $1.00.