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Timestamp: 2020-01-23 11:00:31
Document Index: 752992702

Matched Legal Cases: ['ARTS 2', 'arts 2', 'arts 2', 'ART 2', 'ART 3', 'ART 4', 'ART 5', 'art 2']

Commonwealth Act No. 733 | Home of ChanRobles Virtual Law Library
COMMONWEALTH ACT NO. 733 - AN ACT TO ACCEPT THE EXECUTIVE AGREEMENT TO BE ENTERED INTO BETWEEN THE PRESIDENT OF THE PHILIPPINES AND THE PRESIDENT OF THE UNITED STATES PURSUANT TO TITLE IV OF PUBLIC 371 – 79TH CONGRESS APPROVED ON APRIL 30, 1946, ENTITLED "AN ACT TO PROVIDE FOR THE TRADE RELATIONS BETWEEN THE UNITED STATES AND THE PHILIPPINES, AND FOR OTHER PURPOSES" AND TO AUTHORIZE THE PRESIDENT OF THE PHILIPPINES TO FORMALLY EXECUTE THE SAME ON OR AFTER JULY 4, 1946; TO ENACT THE PROVISIONS OF PARTS 2, 3, 4, AND 5 OF TITLE III OF THE SAID ACT OF CONGRESS AS LAWS OF THE PHILIPPINES DURING THE EFFECTIVENESS OF THE SAID EXECUTIVE AGREEMENT; AND TO IMPLEMENT THE PENAL CLAUSES OF SAID AGREEMENT IN ORDER TO CARRY OUT TITLE I OF THE PHILIPPINE REHABILITATION ACT OF 1946
WHEREAS, pursuant to Title IV of Public Law 371 – 79th Congress, approved on April thirty, nineteen hundred forty-six, entitled "An Act to Provide for the Trade Relations Between the United States and the Philippines, and for other purposes," the President of the United States and the President of the Philippines have agreed to enter into an executive agreement which reads as follows:
"AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE REPUBLIC OF THE PHILIPPINES CONCERNING TRADE AND RELATED MATTERS DURING A TRANSITIONAL PERIOD FOLLOWING THE INSTITUTIONAL PERIOD FOLLOWING THE INSTITUTION OF PHILIPPINE INDEPENDENCE.
"1. During the period from the date of the entry into force of this Agreement to July 3, 1954, both dates inclusive, United States articles as defined in Subparagraph (e) of Paragraph 1 of the Protocol to this Agreement entered, or withdrawn from warehouse, in the Philippines for consumption, and Philippine articles as defined in Subparagraph (f) of Paragraph 1 of the Protocol entered, or withdrawn from warehouse, in the United States for consumption, shall be admitted into the Philippines and the United States, respectively, free of ordinary customs duty.
"2. The ordinary customs duty to be collected on United States articles as defined in Subparagraph (e) of Paragraph 1 of the Protocol, which during the following portions of the period from July 4, 1954, to July 3, 1974, both dates inclusive, are entered, or withdrawn from warehouse, in the Philippines for consumption, and on Philippine articles as defined in Sub-paragraph (f) of Paragraph 1 of the Protocol ,other than those specified in Items D to G, both inclusive, of the Schedule to Article II, which during such portions of such period are entered, or withdrawn from warehouse, in the United States for consumption, shall be determined by applying the following percentages of the Philippine duty as defined in Subparagraph (h) of Paragraph 1 of the Protocol, and of the United States duty as defined in Subparagraph (g) of Paragraph 1 of the Protocol, respectively:
"(a) During the period from July 4, 1954, to December 31, 1954, both dates inclusive, five per centum.
"(b) During the calendar year 1955, ten per centum.
"(c) During each calendar year after the calendar year 1955, until and including the calendar year 1972, a percentage equal to the percentage for the preceding calendar year increased for the preceding calendar year increased by five per centum of the Philippine duty and the United States duty, respectively, as so defined.
"(d) During the period from January 1, 1973, to July 3, 1974, both dates inclusive, one hundred per centum.
"3. Customs duties on United States articles and on Philippine articles, other than ordinary customs duties, shall be determined without regard to the provisions of Paragraphs 1 and 2 of this Article, but shall be subject to the provisions of Paragraph 4 of this Article.
"4. With respect to United States, articles imported into the Philippines, and with respect to Philippine articles imported into the United States, non duty on or in connection with importation shall be collected or paid in an amount in excess of the duty imposed with respect to like articles which are the product of any other foreign country, or collected or paid in any amount if the duty is not imposed with Paragraph the term 'duty' includes taxes, fees, charges, or exactions, imposed on or in connection with importation; but does not include internal taxes or ordinary customs duties.
"5. With respect to products of the United States which do not come within the definition of United States articles, imported into the Philippines, no duty on or in connection with importation shall be collected or paid in an amount in excess of the duty imposed with respect to like articles which are the product of any other foreign country, or collected or paid in any amount if the duty is not imposed with respect to such like articles which are the product of any other foreign country. As used in this Paragraph the term 'duty' include taxes, fees charges, or exactions, imposed on or in connection with importation; but does not include internal taxes.
"6. With respect to products of the Philippines, which do not come within the definition of Philippine articles, imported into the United States, no duty on or in connection with importation shall be collected or paid in an amount in excess of the duty imposed with respect to like articles which are the product of any other foreign country (except Cuba), or collected or paid in any amount if the duty is not imposed with any other foreign country (except Cuba). As used in this Paragraph the term 'duty' included taxes, fees, charges, or exactions, imposed on or in connection with importation; but does not include internal taxes.
"1. During the period from January 1, 1946, to December 31, 1973, both dates inclusive, the total amount of the articles falling within one of the classes specified in Items A and A-1, and C to G, both inclusive, of the Schedule to this Article which are Philippine articles as defined in Subparagraph (f) of Paragraph 1 of the Protocol, and which, in any calendar year, may be entered, or withdrawn from warehouse, in the United States for consumption shall not exceed the amounts specified in such Schedule as to each class of articles. During the period from January 1, 1946, to December 31, 1973, both dates inclusive, the total amount of the articles falling within the class specified in Item B the schedule to this Article which are the product of the Philippines, and which, in any calendar year, may be entered or withdrawn from warehouse, in the United States for consumption, shall not exceed the amounts specified in such Schedule as to such class of articles. During the period from January 1, 1974, to July 3, 1974, both dates inclusive, the total amounts referred to in the preceding sentences of this Paragraph shall not exceed one-half of the amount specified in such Schedule with respect to each class of articles, respectively.
"(b) During the calendar 1955, ninety-five per centum
Any such Philippine article so entered or withdrawn from warehouse in excess of the duty-free quota provided in this Paragraph shall be subject to one hundred per centum of the United States duty as defined in Subparagraph (g) of Paragraph 1 of the Protocol.
"3. Each of the quotas provided for in Paragraphs 1 and 2 of this article for articles falling within one of the classes specified in Items A-1 and B, and D to G, each inclusive, of the Schedule to this Article shall be allocated annually by the Philippines to the manufacturers in the Philippines in the calendar year 1940 of products of a class for which such quota is established, and whose products of such class were exported to the United States during such calendar year, or their successors in interest, proportionately on the basis of the amount of the products of such class produced by each such manufacturer (or in the case of such successor in interest, the amount of the products of such class produced by his predecessor in interest) which was exported to the United States during the following period: (a) In the case of Item A-1 and D to G, each inclusive, the calendar year 1940, and (b) In the case of Item B, the twelve months immediately preceding the inauguration of the Commonwealth of the Philippines. The quota provided for in Paragraph 1 of such Schedule, including that required to manufacture the refined sugar specified in Item A-1 of the Schedule, shall be allotted annually by the Philippines to the sugar-producing mills and plantation owners in the Philippines in the calendar year 1940 whose sugars were exported to the United States during such calendar year, or their successors in interest, the average annual production (or in the case of such a successor in interest, the average annual production of his predecessor in interest) for the calendar years 1931, 1932, and 1933, and the allocated in each year between each mill and the plantation owners on the basis of the proportion of sugars to which each mill and the plantation owners are respectively entitled, in accordance with any milling agreements between them, or any extension, modification, or renewal thereof.
"4. The holder of any allotment under law existing on April 29, 1946, including his successor in interest, and the holder of any allotment under any of the quotas which are provided for in Paragraphs 1 and 2 of this Article the allocation of which is provided for in Paragraph 3 of this Article, may transfer or assign all or any amount of such allotment on such terms as may be nine months of any calendar year, the holder of any allotment, for that year, under any of the quotas referred to in the preceding sentence, is or will be unable for any reason to export to the United States all of his allotment, in time to fulfill the quota for that year, that amount of such allotment which it is established by sufficient evidence cannot be so exported during the remainder of the calendar year may be apportioned by the Philippine Government to other holders of allotments under the same quota, or in such other manner as will insure the fulfillment of the quota for that year: Provided, That no transfer or assignment or reallocation under the provisions of this Paragraph shall diminish the allotment to which the holder may be entitled in any subsequent calendar year.
"I II III
Numerical Commodity Description All Quantities
"A Sugars. 952,000 short
"A-1 May be refined sugars, meaning 'direct- Not to exceed
consumption sugar' as defined in Section 56,000 short
101 of the Sugar Act of 1937 of the tons
United States which it set forth in part
as Annex I to this Agreement.
"B Cordage, including yarns, twines 6,000,000 lbs.
(including binding twines described in
Paragraph 1622 of the Tariff Act of 1930
of the United States, as amended, which
is set forth as Annex II to this Agreement),
cords, cordage, rope, and cable,
tarred or untarred, wholly or in chief
value of Manila (abaca) or other hard fiber.
"C Rice, including rice meal, flour, polish,
and bran, 1,040,000 lbs.
"D Cigars (exclusive of cigarettes, cheroots 200,000,000 cigars
of all kinds, and paper cigars and
cigarettes, including wrappers).
"E Scrap tobacco, and stemmed and
unstemmed filler tobacco described in
Paragraph 602 of the Tariff Act of 1930
of the United States, as amended, which is
set forth as Annex III to this Agreement. 6,500,000 lbs.
"F Coconut oil 200,000 long tons
"G Buttons of pearl or shell.850,000 gross
"1. With respect to quotas on Philippine articles as defined in Subparagraph (f) of Paragraph 1 of the Protocol (other than the quotas provided for in Paragraphs 1 and 2 of Article II, and other than quotas established in conjunctions with quantitative limitations, applicable to products of all foreign countries, on imports of like articles), the United States will not establish any such quota for any period before January 1, 1948, and for any part of the period from January 1, 1948, to July 3, 1974, both dates inclusive, it will establish such a quota only if –
"(b) The quota for any Philippine article as so defined for any twelve-month period is not less than the amount determined by the President as the total amount of Philippine articles of such class which (during the twelve months ended on the last day of the month preceding the month in which occurred the date proclaimed by the President as the date of the beginning of the investigation) was entered, or withdrawn from warehouse, in the United States for consumption; or, if the quota is established for any period other than a twelve-month period, is not less than a proportionate amount.
"2. If the President of the United States finds that the allocation of any quota established pursuant to Paragraph 1 of this Article is necessary to make the application of the quota just and reasonable between the United States and the Philippines, he shall, in such proclamation or a subsequent proclamation, provide the basis for such allocation, and if he exercises such right, the Philippines will promptly put and keep in effect, on the basis proclaimed by the President of the United States, the allocation of such quota.
"1. With respect to articles which are products of the United States coming into the Philippines, or with respect to articles manufactured in the Philippines wholly or in part from such articles, no internal tax shall be –
"(a) Collected or paid in an amount in excess of the internal tax imposed with respect to like articles which are the product of the Philippines, or collected or paid in any amount if the internal tax is not imposed with respect to such like articles:
"2. With respect to articles which are products of the Philippines coming into the United States respect to articles manufactured in the United, States wholly or in part from such articles, no internal tax shall be –
"(a) Collected paid in an amount in excess of the internal tax imposed with respect to like articles which are the product of the United States, or collected or paid in any amount if the internal tax is not imposed with respect to such like articles;
"(b) Collected paid in an amount in excess of the internal tax imposed with respect to like articles which are the product of any other foreign country, or collected or paid in any amount if the internal tax is not imposed with respect to such like articles.
"4. No processing tax or other internal tax shall be imposed or collected in the United States or in the Philippines with respect to articles coming into such country for the official use of the Government of the Philippines or of the United states, respectively, or any Department or agency thereof.
"6. The United States will not reduce the preference of two cents per pound provided in Sec. 2470 of the Internal Revenue Code if the United States (relating to processing taxes on Coconut oil, etc.), which is set forth as Annex VII to this Agreement, with respect to articles 'wholly the production of the Philippine Islands' or articles produced wholly from materials the growth or production of the Philippines Islands'; except that is it may suspend the provisions of Subsection (a) (2) of such section during any period as to which the President of the United States, after consultation with the President of the Philippines, finds that adequate supplies of neither copra nor coconut oil, the product of the Philippines, are readily available for processing in the United States.
"The value of Philippine currency in relation to the United States dollar shall not be changed, the convertibility of Philippines pesos into United States dollars shall not be suspended, and no restrictions shall be imposed on the transfer of funds from the Philippines to the United States except by agreement with the President of the United states.
"1. Any citizen of the United States who actually resided in the Philippines, and any citizen of the Philippines who actually resided in the United States, for a continuous period of three years during the period of forty-two months ending November 30, 1941, if entering the country of such former residence during the period from July 4, 1946, to July 3, 1951, both dates inclusive, for the purpose of resuming residence therein, shall for the purposes of the immigration laws, be considered a non-quota immigrant. After such admission as a non-quota immigrant he shall, for the purposes of the immigration and a naturalization laws, be considered as lawfully admitted to such country for permanent residence. The benefits of this Paragraph shall also apply to the wife of any such citizen of the United States, if she is also a citizen thereof, and to his unmarried children under eighteen years of age, and to the wife or any such citizen of the Philippines, if she is also a citizen thereof or is eligible for United States citizenship, and to his unmarried children under eighteen years of age, if such wife or children of such citizen of the United States or such citizen of the Philippines are accompanying or following to join him during such period. This paragraph shall not apply to a citizen of the Philippines admitted to the Territory of Hawaii, without an immigration or passport visa, under the provisions of Paragraph (1) of section 8 (a) of the act of March 24, 1934, of the United States which is set forth as Annex VIII to this Agreement.
"1. The disposition, exploitation, development, and utilization of all agricultural, timber, and mineral lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces and sources of potential energy, and other natural resources of the Philippines, and the operation of public utilities, shall if open to any person, be open to citizens of the United States and to all forms of business enterprise owned or controlled, directly or indirectly, by United States citizens, except that (for the period prior to the amendment of the Constitution of the Philippines referred to in Paragraph 2 of this Article) the Philippines shall not be required to comply with such part of the foregoing provisions of this sentence as are in conflict with such Constitution.
"2. The Government of the Philippines will promptly take such steps as are necessary to secure the amendment of the Constitution of the Philippines so as to permit the taking effect as laws of the Philippines of such part of the provisions of Paragraph 1 of this Article as is in conflict with such Constitution before a such amendment.
"1. Upon the taking effect of this Agreement the provisions thereof placing obligations on the United States: (a) if in effect as laws of the United States at the time this Agreement takes effect, shall continue in effect as laws of the United States during the effectiveness of the Agreement; or (b) if not so in effect at the time the Agreement takes, shall take effect and continue in effect as laws of the United States during the effectiveness of the Agreement. The Philippines will continue in effect as laws of the Philippines, during the effectiveness of the Agreement, the provisions thereof placing obligations on the Philippines, except as in otherwise provided in Paragraph 1 of Article VII.
"2. The United States and the Philippines will promptly enact, and shall keep in effect during the effectiveness of this Agreement, such legislation as may be necessary to supplement the laws of the United States and the Philippines, respectively, referred to in Paragraph 1 of this Article, and to implement the provisions of such laws and the provisions of this Agreement placing obligations on the United States and the Philippines, respectively. Moreover, the Philippines will promptly enact, keep in force and effect during the effectiveness of this Agreement, such legislation as may be necessary to put and keep in effect during the effectiveness of this Agreement the allocation, reallocation, transfer, and assignment of quotas on the basis provided for in Paragraphs 3 and 4 of Article II; and, if the United States exercises the right to establish quotas pursuant to Paragraph 1 of Article III and to provide for the allocation thereof pursuant to Paragraph 2 of the same Article, the Philippines will promptly enact, and keep in force during the period for which each such quota is established, such legislation as is necessary to put and keep in effect, on the basis provided by the United States, the allocation of such quotas.
"3. The Philippines agree to assist the United States in carrying out Article I of the Philippine Rehabilitation Act of 1946 of the United States by providing that the following acts relative to such title shall be offenses under the laws of the Philippines, and that, upon conviction thereof, the penalties attached to such offenses shall be enforced:
"(a) Whoever, in the Philippines or elsewhere, makes any statement or representation knowing it to be false, or whoever willfully and fraudulently overvalues loss of or damage to property for the purpose of obtaining for himself or for any claimant any compensation pursuant to such Title or for the purpose of influencing in any way the action of the Philippine War Damage Commission of the United States with respect to any claim for compensation pursuant to such Title, or for the purpose of obtaining money, property, or anything of value under such Title, shall be punished by a fine of not more than the equivalent, in the currency of the Philippines, of five thousand dollars, United States currency, or by imprisonment for not more than two years, or both, and shall not receive any payments or other benefits under such Title and, if any payment or benefit shall have been made or granted, such Commission shall take such action as may be necessary to recover the same.
"(b) Whoever, in the Philippines or elsewhere, pays or offers to pay, or promises to pay, or receives, on account of services rendered or to be rendered in connection with any claim for compensation under such Title, any remuneration in excess of five per centum of the compensation paid by the Philippines War Damage Commission of the United States on account of such claim, shall be deemed guilty of a misdemeanor and shall be fined not more than the equivalent, in the currency of the Philippines, of five thousand dollars, United States currency, or imprisonment for not more than twelve months, or both, and, if any such payments or benefit shall have been made or granted, such Commission shall take such action as may be necessary to recover the same, and, in addition thereto, any such claimant shall forfeit all rights under such Title.
"The United states and the Philippines agree to consult with each other with respect to any questions as to the interpretation or the application of this Agreement, concerning which either Government may make representation to the other.
"1. The Philippine Trade Act of 1946 of the United States having authorized the President of the United States to enter into this Agreement, and the Congress of the United States having enacted such legislation as may be necessary to make the provisions thereof placing obligations on the United States take effect as laws of the United States, this Agreement shall not take effect unless and until the Congress of the Philippines accepts it by laws and has enacted such legislation as may be necessary to make all provisions hereof placing obligations on the Philippines take effect as laws of the Philippines except as is otherwise provided in Paragraph 1 of Article VII. This Agreement shall then be proclaimed by the President of the United States and by the President of the Philippines, and shall enter into force on the day following the date of such proclamations, or, if they are issued on different dates, on the day following the later in date.
"2. This Agreement shall have no effect after July 3, 1974. It may be terminated by either the United States or the Philippines at any time, upon not less than five years written notice. If the President of the United States or the President of the Philippines determines and proclaims that the other country has adopted or applied measures or practices which would operate to nullify or impair any right or obligation provided for in this Agreement, then the Agreement may be terminated upon not less than six months' written notice.
"3. If the President of the United States determines that a reasonable time for the making of the amendment to the Constitution of the Philippines referred to in Paragraph 2 of Article VII has elapsed, but that such amendment has not been made, he shall so proclaim and this Agreement shall have no effect after the date of such proclamation.
"4. If the President of the United States determines and proclaims, after consultation with the President of the Philippines, that the Philippines or any of its political subdivision or the Philippine Government is in any manner discriminating against citizens of the United States or any form of United States business enterprise, then the President of the United States shall have the right to suspend the effectiveness of the whole or any portion of this Agreement. If the President of the United States subsequently determines and proclaims, after consultation with the President of the Philippines, that the discrimination which was the basis for such suspension (a) has ceased, such suspension shall end; or (b) has not ceased after the lapse of a time determined by the President of the United States to be reasonable, then the President of the United States shall have the right to terminate this Agreement upon not less than six months' written notice.
"Done in duplicate in the English language at Manila this day ____ of July one thousand nine hundred and forty-six.
"PROTOCOL TO ACCOMPANY THE AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE REPUBLIC OF THE PHILIPPINES CONCERNING TRADE AND RELATED MATTERS DURING A TRANSITIONAL PERIOD FOLLOWING THE INSTITUTION OF PHILIPPINE INDEPENDENCE.
"The undersigned duly empowered Plenipotentiaries have agreed to the following-Protocol to this Agreement between the United States of America and the Republic of the Philippines concerning Trade and Related Matters during a Transitional Period following the Institution of Philippine Independence, signed this day, which shall constitute an integral part of the Agreement:
"1. For the purpose of the Agreement –
"(b) The term 'United States' means the United States of America and, when used in a geographical sense, means the State, the District of Columbia, the Territories of Alaska and Hawaii and Puerto Rico.
"(d) The term 'ordinary customs duty' means a customs duty based on the article as such (whether or not such duty is also based in any manner on the use, value, or method of production of the article, or on the amount of like articles imported, or on any other factor); but does not include –
"(1) A customs duty based on an act or omission of any person with respect to the importation of the article, or of the country from which the article is exported, or from which comes; or
"(2) A countervailing duty imposed to offset a subsidy, bounty, or grant of
"(3) An anti-dumping duty imposed to offset the selling of merchandise for exportation at a price less than the prevailing price in the country to export; or
"(5) The tax imposed by Sec. 2491 (c) of the Internal Revenue Code of the United States, which is set forth as Annex IX to this Agreement, with respect to an article merchandise, or combination, ten per centum or more of the quantity by weight of which consists of, or is derived directly or indirectly from, one or more of the oils, fatty acids or salts specified in Sec. 2470 of such Code which is set forth as Annex VII to this Agreement; or the tax imposed by Sec. 3500 of such Code which is set forth as Annex X to this Agreement.
"(e) The term 'United States article' means an article which is the product of the United State, unless, in the case of an article produced with the sue of materials imported into the United States from any foreign country (except the Philippines) the aggregate value of such imported materials at the time of importation into the United States was more then twenty per centum of the value of the article imported into the Philippines, the value of such article to be determined in accordance with, and as of the time provided by, the customs laws of the Philippines in effect at the time of importation of such article. As used in this Subparagraph the term 'value' when used in reference to a material imported into the United States, includes the value of the material ascertained under the customs laws of the United States in effect at the time of importation into the United States, and, if not included in such value, the cost of bringing the material to the United States, but does not include the cost of landing it at the port of importation, or customs duties collected in the United States. For the purposes of this Subparagraph any imported material, used in the production of an article in the United States, shall be considered as having been used in the production of an article subsequently produced in the United States, which is the product of a chain of production in the United States in the course of which an article, which is the product of one stage of the chain, issued by its producer or another person, in a subsequently stage of the chain, as a material in the production of another article.
"(f) The term 'Philippine article' means an article which is the product of the Philippines, unless in the case of an article produced with the use of materials imported into the Philippines from any foreign country (except the United States) the aggregate value of such imported materials at the time of importation into the Philippines was more than twenty per centum of the value of the article imported into the United States, the value of such article to be determined in accordance with, and as of the time provided by, the customs laws of the United States in effect at the time of importation of such article. As used in this Subparagraph the term 'value', when used in reference to a material imported into the Philippines, includes the value of the material ascertained under the customs laws of the Philippines in effect at the time of importation into the Philippines, and, if not included in such value, the cost of bringing the material to the Philippines, but does not include the cost of landing it at the port of importation, or customs duties collected in the Philippines. For the purposes of this Subparagraph any imported material, used in the production of an article in the Philippines, shall be considered as having been used in the production of an article subsequently produced in the Philippines, which is the product in the Philippines in the course of which an article, which is the product of one stage of the chain, is used by its producer or another person, in a subsequent stage of the chain, as material in the production of another article.
"(g) The term 'United States duty' means the rate or rated of ordinary customs duty which (at the time and place of entry, or withdrawal form warehouse, in the United States for consumption, of the Philippine article) would be applicable to a like article) would be applicable to a like article if imported from that foreign country which is entitled to the lowest rate, or the lower aggregate of rates, of ordinary customs duty with respect to such like article.
"(i) The term 'internal tax' includes an internal fee, charge, or exaction, and includes –
"(1) The tax imposed by Sec. 2491(c) of the Internal Revenue Code of the United States which is set forth as Annex IX to this Agreement, with respect to an article, merchandise, or combination, ten per centum or more of the quantity by weight of which consists of, or is derived directly or indirectly from, one or more of the oils, fatty acids, or salts specified in Sec. 2470 of such Code which is set forth as Annex VII to this Agreement; and the tax imposed by Sec. 3500 of such Code which is set forth as Annex X to this Agreement; and
"(2) Any other tax, fee, charge, or exaction, imposed on or in connection with importation unless the law of the country imposing it designates or imposes it as a customs duty or contains a provision to the effect that it shall be treated as a duty imposed under the customs laws.
"2. For the purposes of Subparagraphs (g) and (h) of Paragraph 1 of this Protocol –
"(a) If an article is entitle to be imported from a foreign country free of ordinary customs duty, that country shall be considered as the country entitled to the lowest rate of ordinary customs duty with respect to such article; and
"(b) A reduction in ordinary customs duty granted any country, by law treaty, trade agreement, or otherwise, with respect to any article, shall be converted into the equivalent reductions in the rate of ordinary customs duty otherwise applicable to such article.
"3. For the purposes of Paragraph 1 and 2 of Article IV, any material, used in the production of an article, shall be considered as having been used in the production of an article subsequently produced, which is the product of a chain of production in the course of which an article, which is the product of one stage of the chain, is used by its producer or another person in a subsequently stage of the chain, as a material in the production of another article.
Done in duplicate in the English language at Manila this ____ day of July, one thousand nine hundred forty-six.
"Section101. For the purposes of this Act, except Title IV –
"'(e) The term 'direct-consumption sugar' means any sugars which are principally of crystalline structure and which are not to be further refined or otherwise improved in quality' (50 Stat.) Pt. 1 (903, Ch. 898)
"'PARAGRAPH 1622. All binding twine manufactured from New Zealand hemp, henequen, Manila, istle the or Tampico fibre sisalgrass, or sunn, or a mixture or any two or more of them, of single ply and measuring not exceeding seven hundred and fifty feet to the pound.' (46 Stat.) Pt. (675, Ch. 497)
"'PARAGRAPH 602. The term "wrapper tobacco" as used in this title means that quality of leaf tobacco which has the requisite color, texture, and burn, and is of sufficient size for cigar wrapper, and the term "filler tobacco" means all other leaf tobacco . .'(46 Stat.) Pt. 1 (631, Ch. 497)
"'CHAPTER 16 Oleomargarine, adulterated butter, and a processed or revocated butter.
"'Section2300. Oleomargarine defined.
"'For the purpose of this chapter, and of sections 3200 and 3201, certain manufactured substances, certain extracts, and certain mixtures and compounds, including such mixtures and compounds with butter, shall be known and designated as "oleomargarine," namely: All substances known prior to August 2, 1886, as oleomargarine oil, butterine, lardine, suine, and neutral; all mixtures and compounds of oleomargarine, oleo, oleomargarine oil, butterine, lardine, suine, and neutral; all lard extracts and tallow extracts; and all mixtures and compounds of tallow, beef fat, suet, lard, lard oil, fish oil or fish fat, vegetable oil, annato, and other coloring matter, in testinal fat, and offal fat; – if (1) made in imitation or semblance of butter, or (2) calculated or intended to be sold as butter or for butter, or (3) churned, emulsified or mixed in cream, milk, water or other liquid, and containing moisture in excess of one per centum or common salt. This section shall not apply to puffpastry shortening not churned or emulsified in milk, or cream, and having a melting point of one hundred and eighteen degrees Fahrenheit or more , nor to any of the following containing condiments and spices: salad dressings, mayonnaise dressing or mayonnaise products nor to liquid emulsion, pharmaceutical preparations, oil meals, liquid preservatives, illuminating oils, cleansing compounds, or flavoring compounds, (53 Stat.) 247 and 248."
"'Section2306. Importation
"'All oleomargarine imported from foreign countries shall, in addition to any important duty imposed on the same, pay in external revenue tax of fifteen cents per pound, such tax to be represented by coupon stamps as in the case of oleomargarine manufactured in the United States. . .'
"'Section2320.Definitions.
"'(a) Butter. – For the purpose of this chapter and sections 3206 and 3207, the word "butter" shall be understood to mean the food product usually known as butter, and which is made exclusively from milk or cream, or both with or without common salt and with or without additional coloring matter.
"'(b) Adulterated butter. – "Adulterated butter" is defined to mean grade of butter produced by mixing, reworking, returning in milk or cream, refining, or in any way producing a uniform, purified, or improved product from different lots or parcels of melted or unmelted butter or butter fat, in which any acid, alkali, chemical, or any substance whatever is introduced or used for the purpose with the effect of deodorizing or removing therefrom rancidity, or any butter or butter fat with which there is mixed any substance foreign to butter as defined in subsection (a), with intent or effect of cheapening in cost the product, or and butter in the manufacture or manipulation of which any process or material is used with intent or effect of causing the absorption abnormal quantities of water, milk, or cream. 53 Stat. 252 and 253.'
"'Section2327.Other laws applicable.
"'(a) Oleomargarine. – The provisions of sections 2301 (c) (2), 2305 to 2311, inclusive (except subsections (a), (b) and (h) of section 2308), and section 3791 (a) (1), shall apply to the manufacturers of adulterated butter to an extent necessary to enforce the marking, branding, identification, and regulation of the exportation and importation of adulterated butter. 53 Stat. 255.' (53 Stat,) Pt. 1 (247, 250, 252, 253, and 255, Ch. 2)
"'Section2350. Definitions.
"'For the purpose of this Chapter and sections 3210 and 3211 –
"'(a) Cheese. – The word "cheese" shall be understood to mean the food product known as cheese, and which is made from milk or cream and without the addition of butter, or any animal, vegetable, or other oils or fats foreign to such milk or cream, with or without additional coloring matter.
"'(b) Filled cheese. – Certain substances and compounds shall be known and designated as "filed cheese," namely: all substances made of milk or skimmed milk, with the admixture of butter, animal oils or fats, vegetable or any other oils, or compounds foreign to such milk, and made initiation or semblance of cheese. Substances and compounds, consisting principally of cheese with added edible oils, which are not sold as cheese or as substitutes and compounds, consisting principally of cheese with added edible oils, which are not sold as cheese or as substitutes for cheese but are primarily useful for imparting a natural cheese flavor to other foods shall not be considered "filed cheese" within the meaning of this chapter. 53 Stat. 256.'
"'Sec. 2356. Importation.
"'All filled cheese as defined in section 2350 (b) imported from foreign countries shall, in addition to any import duty imposed on the same, pay an internal revenue tax of 8 cents per pound, such tax to be represented by coupon stamps, and such imported filled cheese and the packages containing the same shall be stamped, marked, and branched, as in the case of filled cheese manufactured in the United States. 53 Stat. 258.' (53 Stat.) Pt. (256 and 258, Ch. 2)
"'Sec. 2470. Tax.
"'(a) Rate.
"'(1) In general. – Three shall be imposed upon the first domestic processing of coconut oil, palm oil, palmkernel oil, fatty acids derived from any of the foregoing oils, salts or any of the foregoing (whether or not such oils, fatty acids, or salts have been refined, sulfonated, sulfated, hydrogenated, or otherwise processed), or any one or more of such oils, fatty acids, or salts, a tax of tree cents per ground to be paid by the processor.
"'(2)Additional rate on coconut oil. – There shall be imposed (in addition to the tax imposed by the preceding paragraph) a tax of two cents per pound, to be paid by the processor, upon the first domestic processing of coconut oil or of any combination or mixture containing a substantial quantity of coconut oil with respect to which oil there has been no previous first domestic processing, except that the tax imposed by this sentence shall not apply when it is established, in accordance with regulations prescribed by the Commissioner with the approval of the Secretary, that such coconut oil (whether or not contained in such a combination or mixture, (A) is wholly the production of the Philippine Island or any possession of the United States or (B) was produced wholly from materials the growth production of the Philippine Island or any possession of the United States, or (C) was brought into the United States on or before June 9, 1934, or produced from materials brought into the United States on or before June 9, 1934, or (D) was purchased under a bona fide contract entered into prior to April 26, 1934, or produced from materials purchased under a bona fide contract entered into prior to April 26, 1934. The tax imposed by this paragraph by this paragraph shall not apply to any domestic processing after July 3, 1974.
"'(b)Exemption. – The tax under subsection (a) shall not apply from a previous to any fatty acid or salt resulting from a previous first domestic processing taxed under this section or upon which an import tax have been paid under chapter 22, or (2) with respect to any combination or mixture by reason of its containing an oil, fatty acid or salt with respect to which there has been a previous first domestic processing or upon which an import tax has been paid under Chapter 22.
"'(c) Importation prior to August 21, 1936. – Notwithstanding the provisions of subsections (a) and (b) of this section, the first domestic processing of sunflower oil or sesame oil (or any combination or mixture containing a substantial quantity of sunflower oil or sesame oil), if such oil or such combination or mixture or such oil contained therein was imported prior to August 21, 1936, shall be taxed in accordance with the provisions of section 602 of the Revenue Act of 1934, 48 Stat. 763, in force on June 22, 1936. 53 Stat. 264,' (53 Stat.) Pt. 1 (264 and 265, Ch. 2; Public Law 371 – 79th Cong.)
"'Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2470 (a) (2) of the Internal Revenue Code is hereby suspended: Provided, That if the President after receipt by him of a request from the Government of the Commonwealth of the Philippine Island that the suspension of section 2470 (a) (2) be terminated, shall find that adequate supplies of copra, coconut oil, or both, the product of the Philippine Island, are readily available for processing in the United States he shall so proclaim; and thirty days after such proclamation, the suspension of section 2470 (a) (2) of the Internal Revenue Code, shall terminate.
"'Section2.This Act shall become effective the day following its enactment, and shall terminate on May 30, 1946.' (56 Stat.) Pt. (752 and 753, Ch. 560); (58 Stat.) Pt. 1 (647 Ch. 332).
"'Section8. (a) Effective upon the acceptance of this Act by concurrent a resolution of the Philippines Legislature or by a convention called for that purpose, as provided in section 17 –
"'(1) For the purpose of the Immigration Act of 1917, the Immigration Act of 1924 (except section 13[c]), this section, and all other laws of the United States relating to the immigration, exclusion, or explosion of aliens, citizens of the Philippines Island who are not citizens of the United States shall be considered as if they were alien. For such purposes the Philippine Island shall be considered as a separate country and shall have for each fiscal year a quota of fifty. This paragraph shall not apply to a person coming or seeking to come to the Territory of Hawaii who does not apply for and secure an immigration or passport visa, but such immigration shall be determined by the Department of the interior on the basis of the needs of industries in the Territory of Hawaii. 48 Stat. 462.' (48 Stat.) Pt. (642, Ch. 84.
"'Section2490. Imposition of Tax.
"'Addition to any other tax or duty imposed by law, there shall be imposed upon the following articles imported into the United States, unless treaty provisions of the United States otherwise provide, a tax at the rates set forth in section 2491, to be paid by the importer. 53 Stat. 267.'
"'Section2491.Rate of Tax.
"'(c) Any article, merchandise, or combination (except oils specified in section 2470), 10 per centum or more of the quantity by weight of which consists of, or is derived directly or indirectly from, one or more of the products specified above in this paragraph or of the oils, fatty acids, or salts specified in section 2470, a tax at the rate or rates per pound equal to that proportion of the rate or rates prescribed in this paragraph or section 2470 in respect of such product or products which the quantity by weight of the imported article, merchandise, or combination, consisting of or derived from such product or products, bears to the total weight of the imported article, merchandise, or combination; but there shall not be taxable under this subparagraph any article, merchandiser, or combination (other than an oil, fat, grease, and other than products resulting from processing seeds without full commercial extraction of the oil content), by reason of the presence there of an oil, fat, or grease which is a natural component of such article, merchandise, or combination and has never had a separate existence as an oil, fat, or grease. 53 Stat. 267 and 268.' (53 Stat.) Pt. 1 (267 and 268, Ch. 2)
"'CHAPTER 32 –Sugar.
"'Sec. 3500. Rate of Tax.
"'In addition to any other tax or duty imposed by law, there shall be imposed, under such regulations as the Commissioner of Customs shall prescribe, with the approval of the secretary, a tax upon articles imported or brought into the United States as follows:
"'(1) On all manufactured sugar testing by the polariscope ninety-two sugar degrees, 0.465 cent per pound, and for each additional sugar degree shown by the polariscopic test, 0.00875 cent per pound additional, and fractions of a degree in proportion;
"'(2) On all manufactured sugar testing by the polariscope less than ninety-two sugar degrees 0.5144 cent per pound of the total sugars therein;
"'(3) On all articles composed in chief value of manufactured sugar 0.5144 cent per pound of the total sugar therein. 53 Stat. 428.'
"Section3507.Definitions.
"'(b) Manufactured sugar. – The term "manufactured sugar" means any sugar derived from sugar beets or sugar-cane, which is not to be, and which shall not be further refined or otherwise improved in quality; except sugar in liquid form which contains nonsugar solids (excluding any foreign substance that may have been added) equal to more than 6 per centum of the total soluble solids, and except also sirup of cane juice produced from sugar cane grown in continental United States.
"'The grades or types of sugar within the meaning of this definition shall include, but shall not be limited to, granulated sugar lump sugar, cube sugar, provided, sugar in the form of blocks, cones, or molded shapes, confectioners' sugar, washed sugar, centrifugal sugar, clarified sugar, turbinado sugar, plantation white sugar, muscovado sugar, refiners' soft sugar, invert sugar mush, raw sugar, sirups, molasses, and sugar mixtures.
"'(c) Total sugars. – The term "total sugars" means the total amount of the sucrose (Clerget) and of the reducing or invert sugars. The total sugars contained in any grade or type of manufactured sugars contained in any grade or type of manufactured sugar shall be ascertained in the manner prescribed in paragraphs 758, 759, 762 and 763 of the United States Customs Regulations (1931 edition). 53 Stat. 428 and 429.' (53 Stat.) Pt. 1 (426, 428, and 429 Ch. 2)"
"Constitution of the Philippines as amended to May 1, 1946.
"ARTICLE I. – THE NATIONAL TERRITORY
"Section 1. The Philippines comprises all the territory ceded to the United States by the Treaty of Paris concluded between the United States and Spain on the concluded between the United States and Spain on the tent day of December, eighteen hundred and ninety-eight, the limits of which are set forth in Article III of said treaty, together with all the island embraced in the treaty concluded at Washington, between the United States and Spain on the seventh day November, nineteen hundred, and in the treaty concluded between the United States and Great Britain on the second day of January, nineteen hundred and thirty, and all territory over which the present Government of the Philippines Island exercises jurisdiction.'
WHEREAS, under the terms thereof, the said Executive Agreement shall not take effect unless and until the Congress of the Philippines accepts it by law, until the Congress of the Philippines (in the act of acceptance, or separately) has enacted such legislation as may be necessary to make all the enacted such legislation as many be necessary to make all the provisions of Parts 2, 3, 4, and 5 of Title III of the said Act of Congress take effect as laws of the Philippines, except (during the period prior to the amendment to the Constitution of the Philippines referred to in subsection [b] of section 402) such provisions of section 341 are in conflict with such constitution; and
Section 1. Acceptance of, and authority to formally execute, the Executive Agreement. – The Executive Agreement which the President of the United States and the President of the Philippines have agreed to enter into pursuant to Title IV of Public Law 371 – 79th Congress, approved April thirty, nineteen hundred forty-six, entitled "An Act to Provide for the Trade Relations Between the United States and the Philippines, and for Other Purposes," as hereinbefore set forth, is hereby accepted and approved, and the President of the Philippines is authorized to formally execute the same on or after July 4, 1946.
Section2. Enactment of certain portions of Public Law 371 – 79th Congress. – Parts 2, 3, 4, and 5 of Title III of Public Law 371 – 79th Congress, otherwise known as the "Philippines Trade Act of 1946," which read as follows:
"PART 2. – Customs Duties
"Section311. Free Entry of United State Articles.
"During the period from the day after the date of the enactment of this Act to July 3, 1954, both dates inclusive, United States articles entered, or withdrawn from warehouse, in the Philippines free of ordinary customs duty.
"Section312.Ordinary Customs on United States Articles.
"(a) July 4, 1954-July 3, 1974. – The ordinary customs duty to be collected on United states articles, which during the following portions of the period from July 4, 1954, to July 3, 1974, both dates inclusive, are entered, or withdrawn from warehouse, in the Philippines for consumption, shall be determined by applying the following percentages of the Philippine duty:
"(1) July 4 to December 31, 1954. – During the period from July 4, 1954, to December 31, 1954 both dates inclusive, 5 per centum.
"(2) Calendar Year 1955. – During the calendar year 1955, 10 per centum.
"(3) Calendar Years 1956-1872. – During each calendar year after the calendar year 1955 until and including the calendar year 1972, a percentage equal to the percentage for the preceding calendar year increased by 5 per centum of the Philippine duty.
"(4) Percentage After 1972. – During the period from January 1, 1973, to July 3, 1974, both dates inclusive, 100 per centum.
"(b) Period After July 3, 1974. – The ordinary customs duty to be collected on United States articles which after July 3, 1974, are entered, or withdrawn from warehouse, in the Philippines for consumption, shall be determined without regard to the provisions of subsection (a) of this section.
"Section313. Customs Duties other than Ordinary.
"Customs duties on United States articles, other than ordinary customs duties shall be determined without regard to the provisions of sections 311 and 312 (a), but shall be subject to the provisions of section 314.
"Section314. Equality in Special Import Duties, Etc.
"(b) As used in this section the term 'duty' includes taxes, fees, charges, or exactions, imposed on or in connection with importation; but does not include internal taxes or ordinary customs duties.
"Section315. Equality in Duties on Products of United States.
"(a) With respect to products of the United States, which do not come within the definition of United States articles, imported into the Philippines, no duty on or in connection with importation shall be collected or paid in an amount in excess of the duty imposed with respect to like articles which are the product of any other foreign country or collected or paid in any amount if the duty is not imposed with respect to such like articles which are the product of any other foreign country.
"(b) as used in this section the term 'duty' includes taxes, fees, charges, or exactions, imposed on or in connections with importations; but does not include internal taxes.
"PART 3. – Internal Taxes.
"Section321. Equality in Internal Taxes.
"(a) With respect to articles which are products of the United States coming into the Philippines, or with respect to articles manufactures in the Philippines wholly or in part from such articles, no internal tax shall be –
"(1) collected or paid in an amount in excess of the internal tax imposed with respect to like articles which are the product of the Philippines, or collected or paid in any amount if the internal tax is not imposed with respect to such like articles;
"Section322.Prohibition on Export Taxes.
"Section323. Exemption from Taxes of Articles for Official Use.
"PART 4. – Immigration
"Section331. Certain United States Citizens given Non-Quota Status.
"Any citizen of the United State who actually resided in the Philippines for a continuous period of three years during the period of forty-two months ending November 30, 1941, if entering the Philippines during the period from July 4, 1946, to July 3, 1951, both dates inclusive, for the purpose of resuming residence in the Philippines, shall, for the purposes of the immigration laws, be considered a non-quota immigrant. After such admission as a non-quota immigrant he shall, for the purposes of the immigration and naturalization laws, be considered as lawfully admitted to the Philippines for permanent residence. The benefits of this section shall also apply to his wife, if a citizen of the United States, and to his unmarried children under 18 years of age, if such wife or children are accompanying of following to join him during such period.
"Section332.Immigration of United States Citizens into the Philippines.
"Citizens of the United States, admissible to the Philippines under the provisions required by section 402 (e) to be included as a part of the executive agreement made under Title IV, shall be entitled to enter the Philippines, in the numbers and during the periods of years, and to remain therein for the time, specified in that part of the agreement which embodies the provisions of section 402 (e).
"PART 5. – Miscellaneous
"Section341. Rights of United States Citizens and Business Enterprises in Natural Resources.
"The disposition, exploitation, development, and utilization of all agricultural, timber, and mineral lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces and sources of potential energy, and other natural resources of potential energy, and other natural resources of the Philippines, and the operation of public utilities, shall, if open to any person, be open to citizens of the United States and to all forms of business enterprise owned or controlled, directly or indirectly, by United States citizens.
"Section342.Currency Stabilization.
"The value of Philippines currency in relation to the United States dollar shall not be changed, the convertibility of pesos into dollars shall not be suspend, and no restrictions shall be imposed on the transfer of funds from the Philippines to the United States, except by agreement with the President of the United States.
"Section343.Allocation of Quotas.
"The allocation, reallocation transfer, and assignment of quotas established by sections 211, 212, and 214, respectively, of Part 2 of Title II, shall be on the basis provided for in such Part."
Section3. Whoever, in the Philippines or elsewhere, makes any statement or representation knowing it to be false, or whenever willfully and fraudulently, overvalues loss of or damage to property for the purpose of obtaining for himself or for any claimant any compensation pursuant to Title I of the Philippines Rehabilitation Act of 1946 of the United States, or for the purpose of influencing in any way the action of the Philippine War Damage Commission of the United States with respect to any claim for compensation pursuant to such Title, or for the purpose of obtaining money, property, or anything of value under such Title, shall be punished by a fine of not more than ten thousand pesos, Philippines currency, or by imprisonment for not more than two years, or both, and shall not receive any payments or other benefits under such Title and, if any payment or benefit shall have been made or granted, such Commission shall take such actions as may be necessary to recover the same.
Section4. Whoever, in the Philippines or elsewhere, pays or offers to pay, or promises to pay, or receives, on account of services rendered or to be rendered in connection with any claim for compensation under Title I of the Philippine Rehabilitation Act of 1946 of the United States, any remuneration in excess of five per centum of the compensation paid by the Philippine War Damage Commission of the United States on account of such claim, shall be deemed guilty of an offense and shall be fined not more than ten thousand pesos, Philippines currency, or imprisoned for not more than twelve months, or both, and, if any such payment or benefit shall have been made or granted, such Commission shall take such action as may be necessary to recover the same, and, in addition thereto any such claimant shall forfeit all rights under such Title.