Republic of the Philippines
HOUSE OF REPRESENTATIVE!
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No._ 2825

Introduced by Representatives
Estrellita B. Suansing and Horacio P. Suansing, Jr.

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 (10.00) to Ten thousand pesos (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
10.00 (or US$ 0.213).' The ASEAN average threshold is four hundred times than that of
the Philippines, as 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 P10,000.00 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.

ELLITA B. SUANSI|

HORACIO¥~ SUANSING, JR.
1" District, Nueva Ecij 2” Distfict, Sultan Kudarat

* Based on Bangko Sentral ng Pilipinas exchange rate of US$1:P47.014 as of 05 August 2016


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Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

bls
House Bill No. 22259

Introduced by Representatives
__Estrellita B. Suansing and Horacio P. Suansing, Jr.

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 Philippines in
Congress assembled:

SECTION 1. Section 709 of Presidential Decree 1564, otherwise known as 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,
ules 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,

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