Regulations Implementing Section 105 of the Tariff and Customs Code (P.D. No. 1464)

November 15, 1972

CUSTOMS ADMINISTRATIVE ORDER NO. 7-72

 

In implementation of Section 105 of the Tariff and Customs Code of the Philippines, as amended by Presidential Decree No. 34 dated October 27, 1972, and in pursuance to Section 608 of the same Code in relation to Section 551 of the Revised Administrative Code, the following regulations are hereby promulgated:

PARAGRAPH I. The following articles shall be exempt from the payment of import duties subject to the following conditions and upon compliance with the formalities prescribed hereunder:

A. Aquatic products (e.g., fish, crustaceans, mollusks, marine animals, seaweed, fish oil, roe) may be allowed free entry upon presentation of the following:

(1) If the gathering and carrying vessels are one and the same, a certificate of the master of the vessel showing:

(a) That such aquatic products were caught by his vessel which is of Philippine registry;

(b) That such aquatic products are imported in such vessel or aircraft attached thereto;

(c) That such aquatic products have not been landed in any foreign territory or, if so landed, they have been landed solely for transshipment without having been advanced in condition.

(2) If the carrying vessel is other than the gathering vessel, the following shall be presented:

(a) Certificate of the master of the gathering vessel showing that such aquatic products were caught or gathered by vessel which is of Philippine registry;

(b) Certificate of the master of the carrying vessel that such aquatic products are imported in his vessel which is of Philippine registry or in crafts attached thereto;

(c) Evidence satisfactory to the Collector that such products have not been landed in any foreign territory or, if so landed, they have been landed solely for transshipment without having been advanced in condition.

B. Equipment for use in the salvage of vessels or aircraft may be allowed free entry upon presentation to the Collector of Customs of the following:

(1) Certificate duly issued by the National Economic Development Authority that said equipment is not available locally;

(2) Certificate duly issued by the Philippine Coast Guard (for vessels) or the Civil Aeronautics Administration (for aircraft) that said equipment is for use in the salvage of vessels or aircraft, as the case may be;

(3) Bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges, conditioned for the exportation thereof within six (6) months from the date of acceptance of the import entry, or in the default thereof, the payment of the corresponding duties, taxes and other charges due thereon.

Upon prior application of the importer/owner, the Collector may extend the time for exportation for a term not exceeding six (6) months from the expiration of the original period of the bond.

(4) Articles falling under this paragraph shall be identified upon entry and re-identified upon re-exportation. Proof of identification shall be the certificates by the Customs officials concerned.

C. Cost of repairs, excluding the value of the articles used, made in foreign countries upon vessels or aircrafts documented, registered or licensed in the Philippines shall be allowed free entry upon presentation to the Collector of Customs of the following:

(1) Certification from the National Shipyard and Steel Corporation (in case of vessels) and the Civil Aeronautics Administration (in case of aircraft) that adequate facilities for such repairs are not available or afforded in the Philippines; and

(2) An affidavit by the master of the vessel or pilot in command of the aircraft that while in the regular course of her voyage or flight, the same was compelled by stress of weather or other casualty to put into a foreign port to make such repairs in order to secure the safety, seaworthiness or airworthiness of the vessel or aircraft to enable her to reach her port of destination; and that the repairs are incidental and necessary for its use abroad.

D. Articles brought into the Philippines for repairs, processing or reconditioning to be re-exported, upon completion of the repair, processing or reconditioning shall be allowed free entry upon presentation of the following:

(1) Affidavit executed by the importer stating that the articles were brought into the Philippines solely for repair, processing or reconditioning, as the case may be, and giving the name and address of the firm or establishment where the repair, processing or reconditioning of the articles shall be made;

(2) Bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for the exportation thereof within six (6) months from the date of acceptance of the import entry or in default thereof, the payment of the corresponding duties, taxes and other charges.

For purposes of Section 105 of the Tariff and Customs Code of the Philippines, as amended by Presidential Decree No. 34, the word "processing" denotes a progressive action or a series of acts or steps which do not change the nature and identity of the article as differentiated from "manufacturing". The latter implies the making of articles by expending of labor upon material to make a finished product, ordinarily taking a different form and usually having a different name and purpose from that of the material and includes any new combination of any old materials constituting a new result or production in the form of a vendible article, not being machinery.

E. Medals, badges, cups and other small articles bestowed as trophies, or prizes or those received or accepted as honorary distinctions, such articles may be allowed entry free of duty upon proof evident on the articles themselves and satisfactory to the Collector of Customs that the same have been bestowed as trophies or prizes or accepted as honorary distinctions.

F-(a) Personal and household effects belonging to residents of the Philippines returning from abroad, including jewelry, precious stones and other articles of luxury, which were formally declared and listed before departure and identified under oath before the Collector of Customs when exported from the Philippines by such returning residents upon their departure therefrom or during their stay abroad, may be allowed entry free of duty; PROVIDED, That the following documents are submitted to the Collector:

(1) Certificate of identification issued by the Customs Examiner and approved by the Customs Appraiser upon exportation;

(2) Certificate of identification issued by the Customs Examiner and approved by the Customs Appraiser showing that the articles imported are the identical articles exported by the returning resident.

If the articles have been advanced in value while abroad, such increment in value shall be subject to duty.

F-(b) Personal and household effects including wearing apparel, articles for personal adornment (except luxury items), toilet articles, portable appliances and instruments and similar personal effects, excluding vehicles, watercraft, animals purchased, in foreign countries by residents of the Philippines, may be allowed entry free of duty: PROVIDED, That the following conditions are complied with:

(1) A declaration of the owner under oath stating:

(a) that the articles are necessary, appropriate, and normally used for their comfort and convenience during their stay abroad;

(b) that the same articles had been used by them for more than six (6) months abroad;

(c) that the article shall accompany them upon their return, or shall arrive within ninety (90) days before or after their return;

(d) that they are not in commercial quantities nor intended for barter, sale or hire;

(e) that the total dutiable value thereof does not exceed Two Thousand (P2,000.00) Pesos;

(f) that he has not previously received the benefits under this subsection within one year from and after the last exemption granted.

The term "returning resident" as contemplated in Section 105(f) of the Tariff and Customs Code, as amended, refers to one who has established permanent residence in the Philippines prior to his sojourn abroad for an indefinite period, but of a fixed purpose and having the intention of returning to the Philippines upon the accomplishment of the purpose of his trip. (T.D. 46074)

(2) If the total dutiable value of the personal and household effects (except luxury items), shall be in excess of Two Thousand (P2,000.00) Pesos, the same shall be subject to a Fifty Percent 50% ad valorem duty across the board;

(3) If the returning resident has not stayed abroad for six (6) months, his personal and household effects (except luxury items), the total dutiable value of which does not exceed Two Thousand (P2,000.00) Pesos, shall be subject to a Fifty Percent (50%) ad valorem duty across the board; and any excess thereof shall be subject to the corresponding duty collectible pursuant to Sections 205 and 206 of the Tariff and Customs Code;

(4) Use abroad for more than six (6) months may be proven by the owner by means of the following, other than his declaration:

(a) Sales Invoice or Deed of Purchase; and

(b) Actual condition of the articles.

(5) Unless due to unforeseen circumstances, unaccompanied personal and household effects arriving more than ninety (90) days before or after the arrival of the owner in the Philippines should not be admitted free of duty under this subsection;

(6) The length of use abroad shall be computed from the date of purchase to the date of shipment of the article in the case of advance baggage; and from the date of purchase of the article to the date of departure of the owner in the case of accompanied baggage or those baggage that may arrive later;

(7) Exemption from duty under this subsection, shall apply only to articles purchased and used abroad. Donations, gifts and articles acquired by means other than purchase are not included herein;

(8) Whenever exemption from duty under this subsection is claimed on advance baggage, said baggage shall not be released unless the claimant's representative files a bond equal to one and one-half (1-1/2) times the difference between what he would have paid without exemption and what he should pay with exemption subject to the condition that should it be finally determined that the claimant is not entitled to the exemption, the bond shall answer for the difference in duties, taxes and other charges thereon: PROVIDED, However, that the total dutiable value thereof shall not exceed Two Thousand (P2,000.00) Pesos; and any excess thereof shall be subject to the full payment of duty collectible pursuant to Sections 205 and 206 of the Tariff and Customs Code.

The term "personal effects" embraces all articles of personalty not merchandise and includes household effects.

Household effects under this subsection are limited to such as are similar to books, libraries, furniture, carpets, paintings, tablewares, and other usual household furnishings, including wearing apparel, articles of personal adornment (except luxury items), toilet articles, portable appliances and instruments and similar personal effects, excluding vehicles, watercraft, aircraft, and animals.

G. Personal and Household effects and vehicles accompanying travelers, tourists, foreign consultants and experts hired by, and/or rendering service to, the government and their staff or personnel and families, accompanying or arriving within a reasonable time before or after their arrival in the Philippines, may be allowed entry free of duty upon presentation to the Collector of Customs of the following:

(1) Declaration under oath setting forth that:

(a) they are foreign consultants and experts hired by or rendering service to the government, together with their staff or personnel, as evidenced by contracts entered into by and between them and the government, or other documents of equal probative value;

(b) Such personal and household effects and vehicles are necessary and appropriate for the wear or use of such consultants and experts according to the nature of their occupation; and

(c) said articles are not intended for other persons or for barter, sale or hire.

The foregoing document need not be required in the case of tourists or travelers.

(2) If the Collector so requires, a written commitment or a bond in an amount equal to one and one-half (1½) times the ascertained duties, taxes and other charges upon articles classified under this subsection, conditioned for the exportation thereof or payment of the corresponding duties, taxes and other charges within six (6) months from the date of acceptance of the import entry in the case of travelers and tourists.

In the case of foreign consultants and experts and their staff or personnel or families, exportation of said articles covered by the bond shall be made within six (6) months after the expiration of their term or contract

In both instances the Collector of Customs may extend the time for exportation or payment of duties, taxes and other charges for a term not exceeding six (6) months from the expiration of the original period.

H. Professional instruments and implements, tools of trade, occupation or employment, wearing apparel, domestic animals, and personal and household effects, including those of the kind and class provided for under subsection "G" and belonging to persons coming to settle in the Philippines, may be allowed entry free of duty upon presentation to the Collector of Customs of the following:

(1) An affidavit showing:

(a) his name, address, position, rank or profession;

(b) that the article or articles are in quantities and of the class suitable to his profession, rank or position;

(c) that they belong to him and were in his possession before his departure from his former place of abode and are brought into the Philippines for his own use and not for barter or sale or hire;

(2) Evidence satisfactory to the Collector of Customs that:

(a) He is actually coming to settle in the Philippines;

(b) The articles are brought from his former place of abode;

(c) The change of his residence is bona fide and is supported by the necessary immigration papers evidencing his coming to the Philippines as a settler;

(d) The privilege of free entry has never been previously granted to him;

(e) The article or articles involved are not vehicles, vessels or aircraft, or machineries or other similar articles for use in manufacture.

Unaccompanied baggage belonging to such persons must be owned or were in his possession before his departure from his former place of abode.

For purpose of these regulations, the term "persons coming to settle" shall include missionaries, technicians, educators, officials, and other persons under contract or assigned to the Philippines for a specific or indefinite period of time.

I-(a) Articles used exclusively for public entertainment, and for display in public expositions, or for exhibition or competition for prizes, and devices for projecting pictures and parts and appurtenances thereof, may be allowed entry free of duty upon compliance with requirements and/or conditions stated hereunder:

(1) The owner or manager shall submit his affidavit to the Collector of Customs stating the following:

(a) the purpose for which the shipment was imported;

b) that they are not for sale, barter or hire; and

(c) the items and their corresponding values.

(2) That said articles must be identified, examined and appraised by the Customs officials concerned and that a certificate of identification shall be issued therefor.

(3) A bond shall be filed in an amount equal to one and one-half (1-1/2) times the ascertained duties, taxes and other charges thereon, conditioned for exportation thereof or payment of the corresponding duties, taxes and other charges within six (6) months from the date of the acceptance of the import entry.

However, the Collector of Customs may extend the time for exportation or payment of duties, taxes and other charges for a term not exceeding six (6) months from the expiration of the original period.

I-(b) Technical and scientific films may be admitted entry free of duty upon presentation to the Collector of Customs of an affidavit by the owner or importer stating that:

(1) The films are purely technical or scientific in character;

(2) The same are being imported by a recognized technical, cultural and scientific institution; and that the same will not be shown or exhibited for profit.

However, no motion pictures and their accessories shall be released from the Bureau without the corresponding permit issued by the Board of Censors for Motion Pictures.

If any of the said film is exhibited for profit, the proceeds therefrom shall be subject to confiscation, in addition to the penalty provided under Section Thirty-Six Hundred and Ten of the Tariff and Customs Code, as amended.

J-(a) Articles brought by foreign films producers directly and exclusively used for making or recording motion pictures films on location in the Philippines may be allowed entry free of duty upon presentation to the Collector of Customs of the following:

(1) Affidavit by foreign film producers stating that the articles are not for sale, barter or hire but are directly and exclusively used for making or recording motion pictures on location in the Philippines and stating the itemized articles with their corresponding descriptions and values;

(2) Said articles should be identified, examined, and appraised by customs officials concerned and that a certificate of identification shall be issued therefor; and

(3) A bond shall be filed in an amount equal to one and one-half times (1-1/2) the ascertained duties, taxes and other charges thereon, conditioned for exportation thereof or payment of the corresponding duties, taxes and other charges within six (6) months from the date of acceptance of the import entry.

However, the Collector of Customs may extend the period for another six (6) months from the expiration of the original period.

J-(b) Photographic and cinematographic films, undeveloped, exposed outside the Philippines by resident Filipino citizens or by producing companies of Philippine registry may be allowed entry free of duty upon presentation to the Collector of Customs of the following:

(1) Evidence showing that the owner is a resident Filipino citizen or a producing company of Philippine registry;

(2) Affidavit by the owner stating that the negative films, undeveloped, are the same films which were brought outside the Philippines where the same were exposed by him for the production of filming of motion pictures (specifying the title of the picture); that the principal actors and artists employed in the production of said pictures are Filipinos (naming the principal actors and artists and their citizenships.)

(3) Said films should be identified prior to their exportation from the Philippines and re-identified upon entry by the customs officials concerned and that certificates of identification in both cases should be presented.

As used in this subsection, the terms "actors" and "artists" include the persons operating the photographic camera or other photographic and sound recording apparatus by which the film is made.

K-(a) Importations for the official use of foreign embassies, legations, and other agencies of foreign governments, may be allowed entry free of duty: PROVIDED, That the countries accord like privilege to corresponding agencies of the Philippines.

For this purpose, a list of countries whose governments accord such reciprocal privileges shall be published from time to time in Customs Memorandum Orders.

Packages bearing the official seal of a foreign government with which the Philippines has diplomatic relations, accompanied by certificates under such seal to the effect that they contain only official communications or documents, may be admitted entry free of duty without customs examination.

K-(b) Articles imported for the personal or family use of the members and attaches of foreign embassies, legations, consular officers and other representatives of foreign governments, may be admitted entry free of duty, subject to the following conditions:

(1) Such privilege is accorded to such officials under special agreements between the Philippines and the countries which they represent;

(2) The same privilege may be granted only upon specific instructions of the Secretary of Finance in each instance which will be issued only upon request of the Department of Foreign Affairs.

No entry is required at the port of delivery for shipments admitted free of duty under this subsection, but a proper notation as to the disposition thereof shall be made on or attached to the manifest.

Every proper means shall be afforded the foreign officials mentioned above to facilitate their passage through ports of the Philippines.

L. Imported articles donated to or for the account of any duly registered relief organization, may be admitted entry free of duty, upon presentation to the Collector of the following:

(1) Evidence showing that the articles are covered by Deed of Donation duly authenticated and Deed of Acceptance duly executed by the donees;

(2) Evidence showing that the donee is a duly registered relief organization with the Securities & Exchange Commission and Department of Social Welfare; and

(3) That the articles donated are for free distribution among the needy, upon certification of the Department of Social Welfare or the Department of Education, as the case may be.

M. Containers, holders and other similar receptacles of any material, may be admitted free of duty subject to the following conditions:

(1) That they are not made of paper, paper board, and textile fabrics;

(2) That they are of such character as to be readily identifiable and/or re-usable for shipment or transportation of goods;

(3) That they should be identified, examined and appraised by the customs officials concerned, and that a certificate of identification shall be issued therefor;

(4) Affidavit of the importer setting forth that said container shall be exclusively used as containers of goods for exportation abroad, and stating the value thereof; and

(5) That a bond shall be filed in an amount equal to one and one-half (1-1/2) times the ascertained duties, taxes and other charges thereon, conditioned for the exportation thereof or payment of the corresponding duties, taxes and other charges within six (6) months from the date of acceptable of the import entry.

N. Supplies which are necessary for the reasonable requirements of the vessels or aircraft in her voyage or flight outside the Philippines; articles transferred from a bonded warehouse in any collection district to any vessel or aircraft; or articles purchased abroad, may be allowed entry free of duty, subject to the following conditions:

(1) That the vessels or aircraft are engaged in foreign trade;

(2) That said articles are for the use or consumption of the passengers or crew or board as sea or air stores;

(3) That articles purchased abroad are for sale on board the vessel or aircraft as saloon stores or air stores supplies; and

(4) That any surplus or excess of such vessel or aircraft supplies arriving from foreign ports or airports shall be dutiable.

O. Articles and salvage from vessels or parts of a foreign vessel or her equipment wrecked or abandoned in Philippine waters or elsewhere, may be allowed entry free of duty, if they are recovered after a period of two (2) years from the date of the filing of marine protest or at the time when the vessel was wrecked or abandoned.

Articles and salvage recovered within the said period of two (2) years shall be dutiable.

Entry free of duty of said articles and salvage or equipment of vessel is clarified as follows:

(1) Foreign articles recovered from foreign vessels wrecked or abandoned in Philippines or foreign waters after two (2) years from the date of filing of marine protest, or the time the vessel was wrecked are exempt from duty. If recovered within two (2) years, such articles are liable to payment of duty. Articles of Philippine production recovered from wrecked foreign vessels are exempt from duty regardless of the period of recovery thereof. Foreign merchandise recovered from the wrecked Philippine vessels are subject to treatment similar to foreign merchandise recovered from wrecked foreign vessels; and

(2) Parts of Philippine vessel or her equipment whether wrecked in Philippine waters or elsewhere are exempt from duty regardless of the period of her recovery. (Tejam's Commentaries on Tariff and Customs Code, Vol. II, p. 1579)

P. Coffins or urns containing human remains, bones or ashes, and used personal and household effects of deceased persons, may be allowed entry free of duty upon compliance with the following requirements:

(1) That the coffins or urns must contain the human remains, bones or ashes;

(2) That said personal and household effects are not merchandise or vehicles;

(3) That the value of said coffins or urns and used personal or household effects does not exceed Ten Thousand (P10,000.00) Pesos; and

(4) That the Collector of Customs shall require an affidavit of a person having knowledge of the facts, or otherwise satisfy himself that the used personal and household effects belonged to the deceased.

Q-(a) Samples of the kind may be entered free of duty provided they are in such quantity and dimensions or construction as to render them unsalable or of no appreciable commercial value, and upon previous authorization by the Secretary of Finance.

Appreciable commercial value shall be determined by taking into consideration the kind and quantity of the samples and the status and circumstances of the importer.

Q-(b) Models may be allowed entry free of duty provided they are not adopted for practical use and upon previous authorization by the Secretary of Finance.

Samples of the kind and models not adapted for practical use the importation of which are not previously authorized by the Secretary of Finance, shall be levied the corresponding tariff duty.

Q-(c) Samples of medicines may be allowed entry free of duty provided the following conditions are complied with:

(1) That they are properly marked "SAMPLE-SALE PUNISHABLE BY LAW", and these words should be clearly and permanently printed, not merely pasted on the products' label and/or box;

(2) That they are imported for the purpose of introducing a new article in the Philippine market;

(3) That they are imported only once in such quantity sufficient for such purpose;

(4) That they are imported by such person duly registered and identified to be engaged in that trade;

(5) That the importation of said sample of medicine was previously authorized by the Secretary of Finance and the Secretary of Health;

(6) That such samples are new medicines not available in the Philippines as may be determined by the Secretary of Health or his duly authorized representative;

(7) That they are not in commercial sizes nor shipped in bulk;

(8) That they should arrive with or after the commercial stock and they should not exceed 20% of the latter;

(9) That the Collector of Customs of the Port of importation is furnished with a sworn statement containing samples and dates these are to be given.

Said samples of medicines the importation of which are not previously authorized by the Secretary of Finance and the Secretary of Health, or their duly authorized representatives, and/or which are not properly marked in accordance with these subsections, shall be levied the corresponding tariff duty.

The Chief, Formal Entry Division, Chief, Informal Entry Division, and Chief, Customs Postal Division in the Manila Customhouse, and the Appraisers of every port of entry shall keep a record of importations of samples of medicines, listing said shipments by importers and indicating the kind of samples imported, dates of importation, quantity imported and values thereof. The record shall be referred to from time to time for the purpose of determining whether the privilege of free entry is being abused.

Q-(d) Commercial samples, except those that are not readily and easily identifiable (e.g., precious and semi-precious stones, cut or uncut, and jewelry set with precious or semi-precious stones), the value of any single importation of which does not exceed Ten Thousand (P10,000.00) Pesos, may be allowed entry free of duty upon giving of a bond in an amount equal to twice the ascertained duties, taxes and other charges thereon, conditioned for the exportation of said samples within six (6) months from the date of acceptance of the import entry, or in default thereof, the payment of the corresponding duties, taxes and other charges.

The bond shall, among other things, state that the importer shall not dispose of any or all of the samples without authority from the Collector of Customs.

If the value of any single consignment of such commercial samples exceed Ten Thousand (P10,000.00) Pesos, the importer thereof may select any portion of same not exceeding in value of ten thousand pesos for entry under the provisions of this subsection, and the excess of the consignment may be entered in bond, or for consumption, as the importer may elect.

R-(a) Animals for scientific, experimental, zoological and national defense purposes, may be allowed entry free of duty subject to the following conditions:

(1) That they are not race horses; and

(2) That said animals are necessary for economic development as certified to by the National Economic Development Authority.

R-(b) Animals for breeding purposes may be allowed entry free of duty upon presentation to the Collector of Customs of the following:

(1) Certificate of pedigree duly authenticated by the Bureau of Animal Industry showing that such animals are of a recognized breed and has been duly registered in the government book of record established for that breed;

(2) Affidavit of the owner or importer that such animal is the identical animal described in said certificate of record of pedigree; and

(3) Certificate issued by the National Economic Development Authority that said animals are necessary for economic development.

R-(c) Plants for scientific, experimental, botanical and national defense purposes may be allowed entry free of duty subject to the condition that they are certified to as necessary for economic development by the National Economic Development Authority.

R-(d) Live trees, shoots, plants, moss, and bulbs, tubers and seeds, for propagation purposes may be allowed entry free of duty subject to the following conditions:

(1) That they are imported by order of the Government or duly authorized institutions; and

(2) That they are certified to as necessary for economic development by the National Economic Development Authority.

S-(a) Philosophical, historical, economic, scientific, technical and vocational books, may be allowed entry free of duty subject to the following conditions:

(1) That their importations are approved by the Department of Education;

(2) That they are specially imported for the bona fide use and by order of any society or institution incorporated solely for philosophical, educational, historical, economic, scientific, or educational purposes, or for the encouragement of sciences and fine arts;

(3) That their quantities do not exceed ten (10) copies of any work when imported by an institution and two (2) copies of any one work when imported by an individual; and

(4) That they are not for barter, sale or hire.

S-(b) Bibles, missals, prayerbooks, koran, ahadith and other religious books of similar nature and extracts therefrom, hymnal and hymns for religious uses, specially prepared books, music and other instrumental aids for the deaf, mute or blind, and textbooks approved and prescribed by the Department of Education for use in the elementary schools in the Philippines, may be allowed entry free of duty, provided they are not complete books published in parts in periodical forms.

T-(a) Philippine articles previously exported from the Philippines may be allowed entry free of duty upon presentation to the Collector of Customs of the following:

(1) Evidence of previous exportation from the Philippines, e.g., export entry, certificate of identification and other proof of equal probative value;

(2) A written declaration made by the foreign shipper before the Philippine Consul, or in ports where there is no Philippine Consul, before any person authorized to administer oaths, stating that such Philippine articles were previously received by him from the Philippines; the reason for sending the same; and, whether or not said articles have been advanced in value or improved in condition by any process of manufacture, or other means; and that said articles are not for sale, barter or hire;

(3) A sworn written declaration made by the importer stating the reason for sending said Philippine articles abroad; whether drawback or bounty has been allowed; and whether or not said articles have been advanced in value or improved in condition by any process or manufacture or other means abroad;

(4) Certificates of identification issued by the customs officials concerned upon exportation and re-importation of said articles wherein the value of said articles shall be indicated.

T-(b) Instruments and implements, tools of trade, machinery and equipment, may be allowed entry free of duty, subject to the following conditions:

(1) Statement under oath shall be submitted by the importer to the Collector of Customs stating the following:

(a) That he is a Filipino citizen;

(b) That he previously exported those articles and used by him abroad in the pursuit of his business, occupation or profession;

(c) That said articles are returned without having been advanced in value or improved in condition by any process of manufacture or other means abroad; and

(d) That no drawback or bounty has been allowed in said articles.

(2) Certificates of identification issued by the customs officials concerned upon exportation and re-importation of said articles, wherein the values of said articles shall be indicated.

T-(c) Foreign articles previously imported when returned after having been exported may be allowed entry free of duty upon presentation to the Collector of Customs of the following:

(1) Affidavit of the importer or owner stating that said articles were exported and loaned for use temporarily abroad solely for exhibition, testing or experimentation, for scientific or educational purposes; and whether or not drawback or bounty has been allowed thereon.

(2) Certificates of Identification issued by the customs officials concerned upon exportation and re-importation of said articles.

T-(d) Foreign containers previously imported may be allowed entry free of duty upon presentation to the Collector of Customs of the following:

(1) Affidavit of the importer/owner or institutions stating that said containers have been used in packing exported Philippine articles; that they are returned to him or it empty; and that the same are not for sale, barter or hire.

(2) Certificates of Identification issued by the customs officials concerned upon exportation and re-importation of said articles.

However, any such article enumerated above in letters "a" to "d" upon which drawback has been allowed shall, upon re-importation thereof, be subject to a duty equal to the amount of such drawback or bounty.

PARAGRAPH II. Any article enumerated in PARAGRAPH I hereof, sold, bartered, hired or used for purposes other than that they were intended for without prior payment of the duty, tax or other charges which would have been due and payable at the time of entry if the article had been entered without the benefit of Section 105 of the Tariff and Customs Code, as amended by Presidential Decree No. 34 dated October 27, 1972, shall be subject to forfeiture and the importation shall constitute a fraudulent practice against customs revenue punishable under Section Thirty-six hundred and two of the same Code.

However, a sale of said article pursuant to a judicial order or in liquidation of the estate of a deceased person shall not be subject to forfeiture and the importation thereof shall not constitute a fraudulent practice against customs revenue under the aforecited section; PROVIDED, That taxes and duties and other charges due thereon are fully paid.

The President of the Philippines may, upon recommendation of the Secretary of Finance, suspend, disallow or completely withdraw, in whole or in part, any of the conditionally free importations under Section 105, aforecited.

PARAGRAPH III. The provisions of general and special laws, including those granting franchises, to the contrary notwithstanding, there shall be no exemptions whatsoever from the payment of customs duties except in the following cases:

(1) Those provided for under the Tariff and Customs Code as amended;

(2) Those granted to government agencies, instrumentalities or government-owned or controlled corporations with existing contracts, commitments, agreements, or obligations (requiring such exemption) with foreign countries;

(3) Those granted to international institutions, associations or organizations entitled to exemption pursuant to agreements or special laws; and

(4) Those that may be granted by the President upon prior recommendation of the National Economic Development Authority in the interest of national economic development.

PARAGRAPH IV. Customs Administrative Orders Nos. 229-58, 238-59 and 3-67 are superseded and all other orders, regulations or any part thereof inconsistent with this Customs Administrative Order are hereby revoked or amended accordingly.

PARAGRAPH V. This Order shall take effect on November 26, 1972.

(SGD.) ROLANDO G. GEOTINAActing Commissioner of Customs

APPROVED:

(SGD.) CESAR VIRATASecretary of Finance