AMENDING SECTIONS 106 (c) AND 2004 OF THE TARIFF AND CUSTOMS CODS OF THE PHILIPPINES

• Number: Presidential Decree No. 2028
• Sections: 3

Preamble

I, FERDINAND E. MARCOS, President of the Philippines, by

virtue of the powers vested in me by the Constitution; do hereby amend pertinent

provisions of the Tariff and Customs Code as follows:

Section 1

SECTION 1. Section 108 (c) of the Tariff and Customs Code,

as amended, is hereby further amended to read as follows:

"(c) On Articles made from Imported Materials— Upon exportation of

articles manufactured or produced in the Philippines, including the packing,

covering, putting up, marking or labeling; thereof either in whole or in part of

imported materials for which duties have been paid, refund or tax credit shall

be allowed for the duties paid on the imported materials so used including the

packing, covering, putting up, marking or labeling; thereof, subject to the

following conditions:

The actual use of the imported materials in the production or manufacture of

the article exported with their quantity, value and amount of duties paid

thereon, having been established;

The duties refunded or credited shall not exceed one hundred (100) per cent

of duties paid on the imported materials used;

There is no determination by the National Economic and Development Authority

of the requirement for certification or non-availability of locally-produced or

manufactured competitive substitutes for the imported materials used at the time

of importation.

The exportation shall be made within one (1) year after the importation of

materials used and claim of refund or tax credit shall be filed within six (6)

months from the date of exportation;

When two or more products results from the use of the same imported

materials, an apportionment shall be made on its equitable basis.

For every application of a drawback, there shall be paid to and collected by

the Bureau of Customs as filing, processing and supervision fees the sum of Five

Hundred (P500.00) Pesos which amount may be increased or decreased when the need

arises by the Minister of Finance upon the recommendation of the "Commissioner

of Customs."

"Section 2004. Vertification by the Commissioner.—A

careful account shall be kept by the Collector of all articles delivered by him

to any bonded manufacturing warehouse, and a sworn monthly return, verified by

the custom officer in charge, shall be made by the manufacturer containing a

detailed statement of all imported articles used by him in the manufacture of

the exported articles.

All documents, books and records of accounts concerning the operation of any

bended manufacturing warehouse shall, upon demand, be made available to the

Collector or his representative for examination and/or audit.

Before commencing-business the operator of any bonded manufacturing

warehhouse shall file with the Commissioner a list of all the articles intended

to be manufactured in such warehouse, and state the formula of manufacture and

the names and quantities of the ingredients to be used therein."

Section 3

SEC. 3. This decree shall take effect thirty (30) days after

approval.

Done in the City of Manila, this 4th day of February, in the year of Our Lord

Nineteen Hundred and Eighty-Six.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JUAN C. TUVERA

Presidential Executive

Assistant