AMENDING SUBSECTION (A) OF SECTION THREE HUNDRED TWO OF PRESIDENTIAL DECREE NUMBERED FOURTEEN HUNDRED SIXTY-FOUR, OTHERWISE KNOWN AS THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED

• Number: Presidential Decree No. 1973
• Sections: 5

Preamble

WHEREAS, the Philippines as a Contracting Party to the

General Agreement on Tariffs and Trade (GATT) has acceded to the Agreement on

Interpretation and Application of Article VI, XVI and XXIII of GATT, otherwise

known as the Code on Subsidies and Countervailing Unties;

WHEREAS, upon accession to the GATT Code on Subsidies and

Countervailing Duties the Philippines has to align its national legislation,

regulations and administrative procedures on countervailing investigations with

the provisions of the Agreement:

WHEREAS, Section 302 of the tariff and customs Code, as

amended, does not provide for an injury criterion before a countervailing duty

could be imposed against a foreign article and, therefore, not in accord with

the GATT Code on Subsidies and Countervailing Duties.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Republic of the Philippines, by virtue of the powers vested in me by the

Constitution, do hereby decree and order:

Section 1

SECTION 1. Subsection (a) of Section 302 of Presidential

Decree Numbered Fourteen Hundred Sixty-Four as amended, is hereby further

amended to read as follows:

Section 2

SECTION 2. Repealing Clause. Any provision of law, decree,

rules and regulations inconsistent herewith are hereby deemed repealed, amended

or modified accordingly.

Section 3

SECTION 3. Effectivivity Clause.-This Decree shall take

effect immediately.

DONE in the City of Manila, this 13th of April, nineteen hundred and

eighty-five.

Section 302

SEC. 302. Countervailing Duty

"a. Whenever any article is directly or indirectly granted any bounty,

subsidy or subvention upon its production, manufacture or exportation in the

country of origin and/or exportation, and the importation of which has been

determined by the Minister, after investigation and report of the Commission, as

likely to injure established industry, or prevent or considerably retard the

establishment of an industry in the Philippines, there shall be levied a

countervailing duty equal to the ascertained or estimated amount of such bounty,

subsidy or subvention: Provided, that they injury criterion to a

domestic industry shall be applied only in the case of imports from countries

which adhere to GATT Code on Subsidies and Countervailing Duties: Provided,

further, That the exemption of any exported article from duty or tax

imposed on like articles when destined for consumption in the country or origin

and/or exportation or the refunding of such duty or tax, shall not be deemed to

constitute a grant of a bounty, subsidy or subvention within the meaning of this

Section: Provided, furthermore, That should an article be allowed

drawback by the country of origin and/or exportation, only the ascertained or

estimated excess of the amount of the drawback over the total amount of the

duties and/or internal taxes, if any, shall constitute a bounty, subsidy or

subvention: Provided, finally, That petitions for imposition of

countervailing duty shall be filed with the Minister of Finance. Upon finding of

a prima facie case of bounty, subsidy or subvention enjoyed by the imported

article and injury to, or likelihood of injury to a domestic industry, the

Minister shall refer the case to the Tariff Commission for investigation and

shall instruct the Commissioner of Customs, to require the filing of

countervailing bonds for importations entered during the pendency of

countervailing proceedings.