WORLD TRADE  
ORGANIZATION  G/VAL/N/2/PHL/1 
23 August 2004 
 (04-3507) 
Committee on Customs Valuation  
  
 
INFORMATION ON IMPLEMENTATION AND ADMINISTRATION 
OF THE AGREEMENT ON CUSTOMS VALUATION 
 
Checklist of issues
 
 
PHILIPPINES 
  
 The following communication, dated 13 August 2004 is being circulated at the request of the 
delegation of the Philippines 
. 
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1. Questions concerning Article 1: 
(a) Sales between related persons: 
(i) Are sales between related persons subject to special provisions? 
No. 
 
(ii) Is the fact of intercompany prices prima facie considered as grounds for regarding the 
respective prices as being influenced? 
No. 
 
(iii) What is the provision for giving the comm unication of the above-mentioned grounds in 
writing if the importer so requests (Article 1.2(a))? 
 Please refer to the last paragraph of Secti on 1 of the Republic Act (RA) 9135 and the second 
paragraph of Section 1 (F) of RA 9135.
1 
 
(iv) How has Article 1.2(b) been implemented? 
 Please refer to the last paragraph of Customs Administrative Order (CAO) 2-99 
Section II A.1 (e).2. 
 
                                                      
1 See G/VAL/N/1/PHL/1, notification by the Philippines under Article 22.1 and 22.2 of the Agreement. 
 
2 A copy of all the cited Customs Administrative Orders ( CAO ) and Customs Memorandum Orders 
(CMO ) are available with the Secretariat for consultation. G/VAL/N/2/PHL/1 
Page 2  
 
 (b) Price of lost or damaged goods: 
 Are there any special provisions or practical arrangements concerning the valuation of lost or 
damaged goods? 
  None. 
 
2. How has the provision of Article 4 to allow the importer an option to reverse the order 
of application of Articles 5 and 6 been implemented? 
 Please refer to the  second paragra ph of Section 1 (C) of RA 9135 and 
the first paragraph of 
CAO 2-99 Section II . 
 
3. How has Article 5.2 been implemented? 
 Please refer to the last paragraph of Section 1 (D) of RA 9135 and CAO 2-99 
Section 2 (D) 1 (d).   4. How has Article 6.2 been implemented? 
 Please refer to the last paragraph of Section 1 (E) of RA 9135 . 
 
5. Questions concerning Article 7: 
(a) What provisions have been made for maki ng value determinations to Article 7? 
The provisions are included in the first paragraph of Section 1 (F) of RA 9135 and 
Section II (F) of CAO 2-99. 
(b) What is the provision for informing the impor ter of the customs value determined under 
Article 7? 
 Please refer to the second paragraph of Section 1 (F) of RA 9135. 
 
(c) Are the prohibitions found in Article 7.2 delineated? 
 Yes. Please refer to the third paragraph of Section 1 (F) of RA 9135. 
 
6. How have the options found in Article 8.2 been handled? In the case of f.o.b. application, 
are ex-factory prices accepted? 
 Please refer to Section 1 (A) of RA 9135 and Section II (A)-2 of CAO 2-99.  In the case of 
f.o.b. application, ex-factory prices are not applicable as valuation is based on c.i.f. 
 
7. Where is the rate of exchange published, as required by Article 9.1? 
 The Bangko Sentral ng Pilipinas (BSP) issues the official exchange rate which are published 
in major newspapers or in BSP’s website. 
 
8. What steps have been taken to ensure confidentiality, as required by Article 10? 
 Confidentiality is ensured through the provisions of  Section 1 (i) of RA 9135 and the 
provisions in Section IV of CAO 2- 99 and Section VI.D of CAO 5-2001.
2 
  G/VAL/N/2/PHL/1 
 Page 3 
 
 
 9.  Questions concerning Article 11: 
(a) What rights of appeal are open to the importer or any other person? 
The right of appeal to the importer and other persons is provided for in Customs 
Memorandum Order ( CMO ) 37-2001.2   Additionally, the importer may within fifteen (15) 
days from receipt of the adverse decision, app eal the same to the Commissioner of Customs. 
The appeal may be given due course subject to  the condition that the importer will undergo a 
voluntary post audit as provided for in Section IV C of CAO 5-2001. 
 (b) How is he to be informed of his rights to further appeal? 
Information on the right to further appeal is provided in CMO 27-99 , Section III.15  
 
10. Provide information on the publication, as required by Article 12, of: 
(a) (i) The relevant national laws: 
 
 This is contained in the Tariff and Cu stoms Code published in 1998 as amended by 
RA 9135 which reflects the WTO Valuation Agreement. CAO 5-2001 and CMO 
37-2001 were promulgated to implement RA 9135. 
  (ii) The regulations concerning th e application of the Agreement : 
 
 CAO 2-99 on Rules and Regulations Impl ementing Section 1 of R.A 8181 amending 
Section 201 of Title II, Part I of Presiden tial Decree No. 1464, ot herwise know as the 
Tariff and Customs Code of the Philippin es, as amended, on the Determination of 
Customs Dutiable Value. 
  CMO 3-2000 on Enhanced Cargo Clearance Pr ocedures with Provisions on Tentative 
Release and CMO-10-2000 on Detailed Procedures to Further Implement 
CMO-3-2000. 
  CMO 27-99 on Procedures in Protest Cases on the Determination of the Customs 
Value of Imported Goods under the WTO Valuation Regime 
 
 (iii) The judicial decision and administrative rulings of general application relating to the 
Agreement: 
 
  There is no jurisprudence as of yet relating to the agreement. 
  (iv) general or specific laws being referred  to in the rules of implementation or 
application: 
 
 The Tariff and Customs Code as amended by RA 9135 is the general law referred to. 
  (b) Is the publication of further rules anticipated? Which topics would they cover? 
 
 Yes   It may cover  provisions on compliance or  post-entry audit,  supervision and control 
over judicial proceedings, and disclosure of conf idential information as a statutory offense of 
officials and employees. 
 G/VAL/N/2/PHL/1 
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 11. Questions concerning Article 13: 
(a) How is the obligation of Article 13 (last sen tence) being dealt with in the respective 
legislation? 
 This is dealt with in the fourth paragraph of Section 1 (F) of RA 9135 and Section III.C of 
CAO 5-2001
.  
 
(b) Have additional explana tions been laid down? 
 Yes, please refer to CMO 27-99.  
 
12. Questions concerning Article 16: 
(a) Does the respective national legislation contai n a provision requiring customs authorities to 
give an explanation in writing as to how the customs value was determined? 
 Yes.  Please refer to the 2nd to the last paragraph and last paragraph of Section I of RA 9135, 
Section11.2 and 11.5 of CMO3-2000. 
 
(b) Are there any further regulations concerning an above-mentioned request? 
None. 
 
13. How have the Interpretative Notes of the Agreement been included? 
 These have been expressly included through specific provisions in Republic Act 9135 and 
relevant CAOs or CMOs. 
 
14. How have the provisions of the Decision on the Treatment of Interest Charges in the 
Customs Value of Imported Goods been implemented? 
There are no special provisions on the treatment of interest charges.  
 15. For those countries applying paragraph 2 of the Decision on the Valuation of Carrier 
Media Bearing Software for Data Processing E quipment, how have the provisions of this 
paragraph been implemented? 
There are no special provisions on this topic. 
 
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