G/VAL/Q/PHL/2  
 
18 December 2023  
(23-8660) Page: 1/2 
Committee on Customs Valuation  Original: English  
 
  
NOTIFICATIONS UNDER ARTICLE 22 OF AGREEMENT  ON IMPLEMENTATION  
OF ARTICLE VII OF THE GENERAL AGREEMENT  
ON TARIFFS AND TRADE  1994  
REPLIES FROM THE PHILIPPINES TO QUESTIONS  FROM THE UNITED STATES  
CONTAINED  IN DOCUMENT G/VAL/ Q/PHL/1 
PHILIPPINES  
The following communication, dated 15 December  2023, is being circulated at the request of the 
delegation of the Philippin es. 
 
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Question 1  
 
In response to question 13, the Philippines indicated that the Interpretative Notes of the WTO 
Customs Valuation Agreement (CVA) "have been expressly included through specific provisions in 
R.A. No. 10863 and relevant CAOs or CMOs ". Could the Philippines p lease identify these provisions 
implementing the Interpretative Notes?  
 
Response  
 
The Interpretative Notes are provided for under Customs Memorandum Order (CMO) No. 16 -2010.  
 
It is important to note that the provision on dutiable value under Republic Act (R.A.) No.  10863 
otherwise known as "Customs Modernization and Tariff Act (CMTA) o f 2016 " and R.A. No.  9135 
which is "An Act Amending some certain Provisions of Presidential Decree No. 1464 otherwise known 
as the Tariff and Customs Code of the Philippines " of 2001, are the same. They are culled from the 
World Trade Organization (WTO) Va luation Agreement.  
 
Thus, CMO No. 16 -2010 which implements R.A. No. 9135 and incorporated the interpretative notes 
of the WTO are still valid and operational pursuant to Section 1802 of R.A. No. 10863. Section 1802 
provides, "All other laws, acts, executiv e orders, and Customs Administrative Orders (CAOs), 
Customs Memorandum Orders (CMOs), orders, memoranda, circulars, rules and regulations issued 
by the Bureau, under the provisions of Presidential Decree No. 1464, otherwise known as the Tariff 
and Customs Code of the Philippines of 1978, as amended, not inconsistent with the provisions of 
this Act, shall remain valid unless the same will be repealed or amended accordingly, pursuant to 
the provisions of this Act ". 
 
Question 2  
 
Has the Philippines entirely im plemented Article 15 of the CVA, which provides various definitions 
for terms used throughout the CVA (e.g., "customs value of imported goods ", "country of 
importation ", and "produced ")? 
 G/VAL/Q/PHL/2  
 
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  Response  
 
Yes, the Philippines implemented Article 15 of the CVA  considering that the entire provision thereof 
and its Interpretative Notes and incorporated in Philippine laws (R.A. No. 10863) and regulations 
(CAO) No. 9 -2020 and CMO 16 -2010.  
 
Question 3  
 
Section 701 of  Republic Act No. 10863 lists various additions to the price actually paid or payable 
when determining transaction value. In part, this section lists "cost of containers " as an addition. 
Article 8.1(a)(ii) of the CVA lists "[to the extent that they are incurred by the buyer but are not 
included in the price actually paid or payable for the goods …] the cost of containers which are treated 
as being one for customs purposes w ith the goods in question ". Please clarify whether the "cost of 
containers " described in Section 701 of Republic Act. No. 10863 is limited to the types of containers 
referred to in Article 8.1(a)(ii).  
Response  
 
Yes, the Philippines submits that there is no  variance in so far as interpreting "cost of containers " to 
be added to the price actually paid or payable under Article 8(a)(ii) of the CVA and in Section 701 
of R.A. No. 10863. Considering that there is no amendment to the Interpretative Notes as 
incorpo rated under CMO 16 -2010, the interpretation of Section 701 of R.A. No. 10863 should be the 
same.  
 
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