COMMISSION ORDER 2018-1

Question 1

an official written decision issued by the Commission which provides the importer or exporter with the appropriate tariff classification of goods under the ASEAN Harmonized Tariff Nomenclature (AHTN) prior to importation or exportation.

Answer 1

Advance Ruling on Tariff Classification

Question 2

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 Description and Coding System of the WCO but adds two digits, with corresponding commodity descriptions, that represent ASEAN subheadings.

Answer 2

ASEAN Harmonized Tariff Nomenclature (AHTN)

Question 3

a natural or juridical person duly authorized by an importer/exporter in writing to process its request for a Tariff Classification Dispute Ruling.

Answer 3

Authorized Representative

Question 4

form used for customs declaration or goods declaration.

Answer 4

BOC Single Administrative Document (SAD

Question 5

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

Answer 5

ExportatioN

Question 6

natural or juridical person who brings goods out of the Philippines.

Answer 6

EXPORTER

Question 7

a non-refundable amount assessed by the Commission to be paid by the importer or exporter or his/her Authorized Representative to cover the reasonable cost of service rendered for the issuance of a Tariff Classification Dispute Ruling.

Answer 7

FILING FEE

Question 8

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

Answer 8

GOODS

Question 9

refers to the act of bringing in goods from a foreign territory including free zones into Philippine customs territory, whether for consumption, warehousing, or admission.

Answer 9

IMPORTATION

Question 10

a natural or juridical person who brings in goods to the Philippine customs territory, whether for consumption, warehousing or admission.

Answer 10

IMPORTER

Question 11

refers to the additional amount of one percent (1%) of the filing fee imposed but not lower than Ten Pesos (Php 10.00) to be collected from applicants/petitioners as required under Presidential Decree No. 1856, s. 1982.

Answer 11

LEGAL RESEARCH FUND FEE

Question 12

refer to the importer or exporter or BOC who are in dispute over the classification of goods.

Answer 12

PARTIES

Question 13

refers to the act or process of determining the subheading in the AHTN to which goods appropriately belong in accordance with Sections 1610 and 1611 of the CMTA.

Answer 13

TARIFF CLASSIFICATION

Question 14

refers to a situation or case when a declared tariff classification of goods, not subject of a pending application for advance ruling, is in dispute because the BOC has a different classification or the tariff classification for the subject goods is considered difficult or highly technical by the BOC.

Answer 14

TARIFF CLASSIFICATION DISPUTE

Question 15

an official written decision issued by the Commission on the disputed tariff classification which provides the importer, exporter or the BOC with the appropriate classification of goods under the AHTN during importation or exportation.

Answer 15

Tariff Classification Dispute Ruling

Question 16

Initiation of Tariff Classification Dispute.

Answer 16

A dispute on tariff classification, not subject of a pending application for advance ruling, can be initiated through the following:
a. endorsement from BOC in the case of difficult or highly technical questions on tariff classification, as determined by BOC; or
b. filing of case by the importer or exporter when BOC has a different tariff classification.
In either case, the importer or exporter or the BOC shall submit the following documentary requirements:
a. letter-endorsement, or ruling or assessment reflecting the tariff classification made by the BOC;
b. filled-out form prescribed by the Commission (for importer or exporter only):
c. product description, brochures, technical specifications;
d. pictures of products and/or samples, as may be appropriate;
e. BOC SAD; and
f. affidavit or certification under oath that the goods are not subject of a pending application for advance ruling (for importer or exporter only).

Question 17

Fees.

Answer 17

Pursuant to the Commission’s relevant Administrative Orders, the importer or exporter, upon filing of the case, shall pay the following:
a. filing fee;
b. Legal Research Fund fee; and
c. other fees, as may be prescribed by the Commission
Failure to pay the fees shall cause the non-acceptance of the case.

Question 18

Evaluation of Cases Endorsed by BOC.

Answer 18

1 Within seven (7) working days from receipt of the case, the Commission shall notify the importer or exporter and, if it deems appropriate, require him/her to submit additional information and/or allow on-site verification to determine the proper tariff classification of the subject goods.
2. Within ten (10) working days from receipt of notice, the importer or exporter shall submit additional information and/or allow on-site verification.

Question 19

Evaluation of Cases Filed by an Importer or Exporter.

Answer 19

1 Within seven (7) working days from receipt of the case, the Commission shall, if it deems appropriate, require the importer or exporter to submit additional information and/or allow on-site verification to determine the proper tariff classification of the subject goods.
2. Within ten (10) working days from receipt of notice, the importer or exporter shall submit additional information and/or allow on-site verification.
3. Within five (5) working days from receipt of the case, or receipt of additional information, or conduct of on-site verification, the Commission shall notify the BOC that a tariff classification dispute is filed before it and request comments. 4. Within ten (10) working days from receipt of the notice and the records of the case, the BOC may file a comment or submit any additional explanation or documents to justify its findings.

Question 20

Conduct of Hearing.

Answer 20

The Commission, if it deems necessary, shall conduct a hearing to clarify facts necessary to resolve the pending dispute on tariff classification. The Commission shall accordingly notify the Parties of the time and date of the scheduled hearing.
The hearing shall be summary and fact-finding in nature and shall be presided by a hearing officer designated by the Commission.

Question 21

Issuance of Tariff Classification Dispute Ruling.

Answer 21

Within twenty (20) working days from receipt of all required information or documents or the termination of the hearing, the Commission shall issue the appropriate ruling on the dispute furnishing the importer or exporter, BOC, and the Secretary of Finance their respective copy thereof. Depending on the complexity of the case, said period may be extended for another twenty (20) working days upon prior notice to the importer/exporter and BOC.
Pursuant to Paragraph 2, Section 1100 of the CMTA, tariff classification rulings of the Commission shall be binding upon the BOC, unless the Secretary shall rule

Question 22

Grounds for Dismissal for Cases Filed by an Importer or Exporter. The Commission may dismiss cases in any of the following circumstances:

Answer 22

a. when the importer or exporter fails to provide any additional information requested within the reasonable period required by the Commission;
b. the importer or exporter did not allow the Commission to conduct on-site verification;
c. misrepresentation; or
d. noncompliance with these Rules or any Order of the Commission.

Question 23

Motion for Reconsideration.

Answer 23

The importer or exporter aggrieved by the ruling of the Commission may file a motion for reconsideration within fifteen (15) days from receipt of the ruling on the ground of mistake of fact and excusable negligence or newly discovered evidence or information not discovered during the proceedings that if presented may alter the result of the Dispute Ruling.
Only one (1) motion for reconsideration is allowed.

Question 24

Appeal.

Answer 24

Within fifteen (15) days from receipt of the Order denying the motion for reconsideration, an appeal may be filed by the importer/exporter before the Secretary of Finance. 1

Question 25

Finality of the Ruling.

Answer 25

Unless a motion for reconsideration or an appeal is made in the manner and period prescribed herein, the ruling of the Commission shall be final and executory.
In accordance with Section 1100 of the CMTA, rulings of the Commission on commodity classification shall be binding upon the Bureau, unless the Secretary of Finance shall rule otherwise.