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Discriminatory/Retaliatory Duty

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by

John Ryan Tuazon

on 8 July 2014

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Transcript of Discriminatory/Retaliatory Duty

Discriminatory/Retaliatory Duty
philippine exports:
- Discriminated
- unfair treatment
100%
factors of discrimination
Sec. 304. Discrimination by Foreign Countries
a. Specify and declare new and additional duties in an amount not exceeding 100 % Ad valorem.
j
a
p
a
n
1.
-Unreasonable Charge
-Exaction
-Regulation
-Limitation
Thailand
maximum of 7 containers
PHILIPPINES
Maximum of 3 containers
2. Discriminates in fact against the commerce of the Philippines.
b. Maintained or increased discrimination against the commerce of the Philippines.
c. Proclamation may extend to the whole of any foreign country or any subdivisions thereof.
- Require
-Suspend
-Revoke
-Supplement
- Amend
d. All articles imported contrary to the provisions shall be forfeited by the Government.
e. It shall be the duty of the commission to ascertain and to be informed whether the discrimination are practiced by any country.
f. Secretary of Finance shall make rules and regulations.
EFFECTS OF DISCRIMINATORY DUTY
1. Imposition of discriminatory duty of 100% Customs Duty.
effects on discriminatory duty
3. Automatic Forfeiture by the Philippine Government.
effects on discriminatory duty
2. Declaration of exclusion into allowable imports.
Philippine Exports
THAILAND
SAMPLE PROBLEM
An L/C shipment of 10 x 20 STC fresh bananas from Thailand with an FOB value of USD 150,000.00. The bill of lading indicated POM as its port of discharge with freight rate of USD 3000.00/TEU. If the prevailing rate of exchange is Php 43.00/USD and the rate of duty is 50 % ad valor em. Compute for its total duties and taxes.
FOB USD 150,000.00
FRT 3,000.00
INS 6,000.00
D.V USD 159,000.00
E.R. 43.00
D.V. Php 6,837,000.00
B/C 8,546.25
CUD 3,418,500.00
B/F 13,596.25
A/C 37,270.00
W/D 5193.50
CDS 265.00
IPF 1000.00
LC PHp 10,321,371.00
LC Php 10,321,371.00
x 0.12
VAT Php 1,238,564.52
SUMMARY:

CUD 3,418,500.00
VAT 1,238,565.00
IPF 1000.00
CSF 2150.00
T.DT & OC Php 4,660,215.00
Where:
INS = 0.04 FOB
= 0.04 x P 150,000.00
= P 6,000.00
B.C = 0.00125 x D.V
= 0.00125 x P 6,837,000.00
= P 8,546.25
CUD = D.V x R/D
= P 6,837,000.00 x .50
= P 3,418,500.00
B.F = 0.00125 DV + 5050
= 0.00125 (P 6,837,000.00) + 5050
= P 13,596.25
W.D = P 519.35 / ft (10 x 20 ft)
= P 5193.50
A.C = P 3,727.00 / ft (10 x 20 ft)
= P 37,270.00
The customs examiner found out that 100 % retaliatory duty was imposed on all importations coming from Thailand due to its unfair treatment to Philippine export to their country.
Find its Retaliatory Duty, VAT, and Total duties and Taxes.
FOB USD 150.000.00
x 1.04
T. CI USD 156,000.00
FRT 3,000.00
T.DV USD 159,000.00
E.R x 43.00
T.DV Php 6,837,000.00
x 1.5025
Php 10,272,592.50
+ 6,315.00
A.C 37,270.00
W.D 5,193.50
T.LC Php 10,321,371.00
D.D / R.D 6,837,000.00
V.B. 17,158,371.00
x 0.12
VAT 2,059,004.52
D.D / R.D = 100% DV
= Php 6,837,000.00 x 1.00
= Php 6,837,000.00
SUMMARY:

CUD 3,418,500.00
VAT 2,059,005.00
D.D / R.D 6,837,000.00
IPF 1000.00
CSF 2150.00
T.DT & OC Php 12,317,655.00
BY: JOHN RYAN J. TUAZON
Full transcript