COMMISSION ORDER 2017-1

Question 1

an official written decision issued by the Commission which provides the Applicant with the appropriate tariff classification of goods under the AHTN prior to an importation or exportation.

Answer 1

Advance Ruling on Tariff Classification

Question 2

a natural or juridical person who is an importer or exporter requesting for an Advance Ruling pursuant to this Order.

Answer 2

Applicant

Question 3

an eight-digit commodity nomenclature adopted by the ASEAN Member States to harmonize their tariff nomenclatures at the eight-digit level. It adheres to the six-digit commodity classification code of the Harmonized Commodity Classification and Coding System of the WCO but adds two digits, with corresponding commodity descriptions, that represent ASEAN subheadings.

Answer 3

ASEAN Harmonized Tariff Nomenclature (AHTN)

Question 4

a natural or juridical person duly authorized by the Applicant in writing to process its application for an Advance ruling.

Answer 4

AUTHORIZED REPRESENTATIVE

Question 5

a non-refundable amount assessed by the Commission to be paid by the Applicant or his/her Authorized Representative to cover the reasonable cost of service rendered for the issuance of an Advance Ruling.

Answer 5

FILING FEE

Question 6

refers to the act, documentation and process of bringing goods out of Philippine territory.

Answer 6

EXPORTATION

Question 7

a natural or juridical person intending to bring in goods to the Philippines from a foreign territory, whether for consumption, warehousing or
admission.

Answer 7

IMPORTER

Question 8

a natural or juridical person in a foreign country intending to supply goods into the Philippines from a foreign country.

Answer 8

FOREIGN EXPORTER

Question 9

a natural or juridical person intending to bring goods out of the Philippines.

Answer 9

DOMESTIC EXPORTER

Question 10

refers to the act of bringing in goods from a foreign territory into Philippine territory, whether for consumption, warehousing, or admission. The date of importation shall be the date of lodgment of goods declaration.

Answer 10

IMPORTATION

Question 11

refer to articles, wares, merchandise and any other items which are subject to importation or exportation.

Answer 11

GOODS

Question 12

Who May Apply for an Advance Ruling on Tariff Classification.

Answer 12

An Applicant or his/her Authorized Representative may apply for an Advance Ruling.

Question 13

Conditions for Application of an Advance Ruling on Tariff Classification.

Answer 13

An application for an Advance Ruling shall cover only one product or good, as determined by the Commission.

Question 14

Period for Filing an Application for an Advance Ruling on Tariff Classification.

Answer 14

Applications for an Advance Ruling should be filed at least ninety (90) days before the date of the importation or exportation

Question 15

Procedure for Filing an Application for an Advance Ruling on Tariff Classification.

Answer 15

Applicants shall submit three (3) copies of the filled-out application form prescribed by the Commission together with supporting documents and samples of the good, if required.

The Commission shall assess the sufficiency of the filled-out form and its supporting documents before payment of appropriate fees and assignment of a unique application reference number.

Question 16

An application for an Advance Ruling may not be accepted in any of the following cases:

Answer 16

a. the application is not in the prescribed application form;
B. it is not possible to determine tariff classification based on the presented information/documents;
C. the request pertains to multiple goods under different subheadings as ascertained by the Commission;
D. the application is filed less than ninety (90) days before importation or exportation; or,
E. non-payment of filing fee.

Question 17

Submission of Additional Information and On-site Verification.

Answer 17

Within ten (10) calendar days, the Commission shall acknowledge receipt of the application and notify the Applicant of the need for additional information and on-site verification. However, should the Commission deem that more information/verification is required, it may request information/verification from the Applicant anytime during the prescribed period to issue a ruling.
The Applicant should submit additional information or allow on-site verification within ten (10) calendar days from the receipt of notice.
Pending submission of the additional information or on-site verification, the running of the 30-day period to issue a ruling shall stay.

Question 18

Grounds for Non-Issuance of Advance Ruling on Tariff Classification.

Answer 18

a. when the Applicant fails to provide any additional information requested within the reasonable period required by the Commission, without prejudice to the filing of a new application:
b. the goods involved are subject of a pending court litigation or of an administrative review or of an appeal involving tariff classification;
c. the Applicant did not allow the Commission to conduct on-site verification;
d. misrepresentation; or
e. other similar cases.
In all cases, the Commission shall promptly notify the Applicant in writing, setting out the reasons therefor.

Question 19

Withdrawal of Application for an Advance Ruling on Tariff Classification.

Answer 19

An Applicant may withdraw, in writing, its application at any time before the issuance of an Advance Ruling.

Question 20

Issuance of an Advance Ruling on Tariff Classification.

Answer 20

The Commission shall issue the Advance Ruling within thirty (30) days from receipt of the application, sufficient in form and substance, or upon the submission of all additional documents required, as the case may be.

Question 21

Original copies of the Commission’s Advance Ruling shall be furnished to the Applicant, the BOC Commissioner, and the Secretary of Finance (Secretary). Pursuant to Paragraph 2, Section 1100 of the CMTA, tariff classification rulings of the Commission shall be binding upon the BOC.
In the instance that the BOC deems the ruling to be adverse to the government, it shall, within five (5) days from receipt of a copy of the Advance Ruling, elevate the same to the Secretary of Finance for review pursuant to Section 1128 of the CMTA.
The Secretary of Finance shall automatically review the Ruling within 15 days from receipt of the BOC notice. When no ruling is rendered within the period, the decision of the Commission is deemed confirmed.
The Commission shall be furnished a copy of the BOC notice of elevation and the decision of the Secretary of Finance.

Question 22

Effectivity of an Advance Ruling on Tariff Classification.

Answer 22

The Advance Ruling shall be effective from the date it is issued.

Question 23

Validity of an Advance Ruling on Tariff Classification.

Answer 23

The Advance Ruling shall be valid for a period of five (5) years from the date of its issuance unless it is earlier revoked or modified due to changes in facts or circumstances on which the Advance Ruling is based.

Question 24

Modification or Revocation of an Advance Ruling on Tariff Classification

Answer 24

The Advance Ruling may be modified whenever there is an error, change in material facts/circumstances, change in the law or judicial decision, or change in policy, as the case may be. Modification of Advance Ruling is of prospective application.

Question 25

The Advance Ruling may be revoked by the Commission upon discovery of any false or misleading material information provided in the application, without prejudice to the filing of criminal, civil and/or administrative cases against the Applicant.
In case a Ruling is revoked or modified, the Commission shall give a written notice to the Applicant or issue a public notice setting out the relevant facts and the basis for the revocation or modification.
The Secretary and the BOC Commissioner shall be furnished copy of the issued notices at all times.

Question 26

Motion for Reconsideration.

Answer 26

The Applicant in an Advance Ruling may file a motion for reconsideration with the Commission, in writing, within ten (10) days from receipt thereof, on the ground of mistake of fact and excusable negligence or newly discovered evidence or information not discovered during the application that if presented may alter the result of the Advance Ruling. The Commission shall resolve the Applicant’s motion within ten (10) days from receipt thereof.
5.2. Only one (1) motion for reconsideration is allowed.

Question 27

Appeal.

Answer 27

An appeal may be filed by the Applicant before the Court of Tax Appeals within thirty (30) days from receipt of the decision of the Commission denying its motion for reconsideration, or of the decision of the Secretary of Finance pursuant to the last paragraph of Sec. 4.9 hereof, as the case may be.

Question 28

Publication and Confidentiality.

Answer 28

The Commission shall publish its Advance Rulings on its website and deposit a copy of the same in its Records Section.
7.2.
All information that is provided on a confidential basis for purposes of the Advance Ruling application shall be treated as confidential. The information shall not be disclosed unless with the written permission of the Applicant or government agency who provided such information or to the extent that it may be required to be disclosed in the context of judicial proceedings.

Question 29

Use of Information and Communications Technology.

Answer 29

To the extent practicable, the Commission shall use information and communications technology to process and issue Advance Rulings.