Republic of the Philippines “qe? BESS
HOUSE OF REPRESENTATIVES .
Quezon City f

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Qa NOV 2014

SIXTEENTH CONGRESS © |
Second Regular Session | Vim

House Bill No. 0180

Introduced by Representative ESTRELLITA “GING” B, SUANSING

EXPLANATORY NOTE

This bill seeks to amend Section 709 of Presidential Decree 1464, otherwise
known as the Tariff and Customs Code of the Philippines, as amended, by
increasing the de minimis threshold from Ten Pesos (Php10.00) to Ten Thousand
Pesos (Php 10,000.00).

The de minimis threshold is the minimal volume of declaration of goods in
the customs for consignments, Low thresholds for customs declaration signify
increased documentation and processes for shipments at entry points in the
country. Increased documentation leads to larger turnover and delivery time of
goods, and larger administration costs that would yield lower revenue impact for
both businesses and government.

At present, the Philippines has the lowest de minimis threshold in the
ASEAN at Php 10,00 (or US$ 0.22).! The ASEAN average threshold is four hundred
times than that of the Philippines, at US$ 100. The extremely low Philippines
threshold has not been changed since 1957 and is clearly antiquated. It needs to
be updated to be reflective of current prices.

By increasing the de minimis threshold to Php 10,000 the proposed measure
provides a more realistic and relevant threshold, reflective and responsive to the
prevailing times. It enables the Bureau of Customs to focus its efforts in looking out
for high-value, high-risk and high-revenue goods for collection and enforcement,
thereby making customs processes more efficient.

Overseas Filipino Workers and such who send balikbayan boxes,
entrepreneurs and individuals who purchase small goods overseas through online
transactions, and others who send low-value and low-risk packages, shall benefit
from the enactment of this measure because they will go through customs faster
and with minimum fees.

In view of the foregoing, the approval of this bill is earnestly sought.

ESTRELLITA B. SUANSING
1* District, Nueva Ecija|

* Based on BSP exchange rate of US$1 : PhP 44.773 as of 07 October 2014


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

House Bill No. 5180

Introduced by Representative ESTRELLITA “GING” B, SUANSING

AN ACT
AMENDING SECTION 709 OF PRESIDENTIAL DECREE 1464,
OTHERWISE KNOWN AS THE TARIFF AND CUSTOMS CODE OF THE
PHILIPPINES, AS AMENDED

Be it enacted by the Senate and the House of Representatives of the Republic
of the Philippines in Congress assembled:

SECTION 1. Section 709 of the Tariff and Customs Code of the Philippines,
as amended, is hereby further amended to read as follows:

“SEC. 709. Authority of the Collector to Remit Duties. - A
Collector shall have discretionary authority to remit the
assessment and collection of customs duties, taxes, and
other charges when the aggregate amount of such duties,
taxes and other charges is less than [ten pesos] TEN
THOUSAND PESOS (P10,000,00) and he may dispense with
the seizure of articles of less than [ten pesos] TEN
THOUSAND PESOS (P10,000,00) in value except in cases of
prohibited importations or the habitual or intentional
violation of the tariff and customs law.”

SECTION 2. Implementing Rules and Regulations. The Commissioner of
the Bureau of Customs shall, within thirty (30) days from the effectivity of
this Act, issue the necessary rules and regulations for the proper
implementation of this Act.

SECTION 3. Separability Clause. If any provision of this Act is
subsequently declared unconstitutional, other provisions hereof which are
not affected shall remain in full force and effect.

SECTION 4. Repealing Clause. All laws, presidential decrees, executive
orders, rules and regulations or part thereof, contrary to or inconsistent
with the provisions of this Act are hereby repealed or modified accordingly.


SECTION 5. Effectivity Clause. This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in a newspaper of general
circulation.

Approved,