THE IMPORTANCE OF

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THE IMPORTANCE OF KNOWING THE CORRECT
TARIFF CLASSIFICATION OF PRODUCTS
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• Understanding Tariff Classification
• All traded goods that enter a country must be
  categorized according to the Harmonized System
• The act of placing goods in the correct category
  is called classification.
• Classification determines how much duty will be
  collected.

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• Harmonized System
• an international multipurpose product
• nomenclature developed by the
• World Customs Organization (WCO)
• To achieve international uniformity in the
  classification of goods
• To provide an updated nomenclature to take
  account of technological developments and changes
  in international trade patterns

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Harmonized System
Section II Vegetable Products Chapter 8
Edible fruits and nuts peel of citrus fruit or
melons Heading 08.03 Bananas, including
plantains, fresh or dried
0803.10 - Plantains 0801.90 -
Other
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• ASEAN Harmonized Tariff Nomenclature
• An 8-digit commodity nomenclature based
• on the HS
• It involves an alignment of national tariff
• requirements of each ASEAN member
• country
• Started in 2004
• The NEDA Board approved the adoption of AHTN
  2012 on 18 Sept 2012

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ASEAN Harmonized Tariff Nomenclature
Section II Vegetable Products Chapter 8
Edible fruits and nuts peel of citrus fruit or
melons Heading 08.03 Bananas, including
plantains, fresh or dried
0803.10.00 - Plantains 0801.90.00 -
Other
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• Tariff and Customs Code of the Philippines
• The HS- and AHTN-based Philippine tariff
• nomenclature which determines the tariff
• classification and the corresponding rates of
• duty is contained under Sec 104 of the TCCP.
• The TCCP is being administered and
• maintained by the Tariff Commission under
• Executive Order No. 688 which empowers
• the Tariff Commission to amend the
• nomenclature but not the tariff rates.

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Hdg. No. AHTN Code 2012 DESCRIPTION Rate of Duty () Rate of Duty () Rate of Duty () ASEAN Member States Enjoying Concession
Hdg. No. AHTN Code 2012 DESCRIPTION MFN MFN ATIGA ASEAN Member States Enjoying Concession
Hdg. No. AHTN Code 2012 DESCRIPTION 2012-2013 2014-2015 ATIGA ASEAN Member States Enjoying Concession
(1) (2) (3) (4) (5) (6) (7)
84.01 Nuclear reactors fuel elements (cartridges), non-irradiated, for nuclear reactors machinery and apparatus for isotopic separation.
8401.10.00 -  Nuclear reactors 3 3 0 Except LA.
8401.20.00 -  Machinery and apparatus for isotopic separation, and parts thereof 3 3 0 Except LA.
8401.30.00 -  Fuel elements (cartridges), non-irradiated 3 3 0 Except LA.
8401.40.00 -  Parts of nuclear reactors 3 3 0 Except LA.
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• FREE TRADE AGREEMENT
• a legally binding agreement between
• 2 or more countries to reduce or
• eliminate barriers to trade, and facilitate
• the cross border movement of goods,
• services and investments between the
• territories of the Parties

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Benefit of FTAs to businesses Trade in
Goods (TIG) Tariff concessions for
eligible exports

Rules of Origin An objective set of criteria set
up to determine a products originating status.
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Top traded products between Japan and Philippines
AHTN 2012 DESCRIPTION FTA MFN RATE, FTA RATE, PSR
0803.90.00 (PH rate MFN 15 PJEPA 0 AJCEPA 8) Bananas, fresh or dried Japan AJCEPA PJEPA   20 / 25 / 3 15.5 / 22.7 / 0 5.5 /9.1 / 10.9/19.1 / 0 CC CC
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Top traded products between Japan and Philippines
AHTN 2012 DESCRIPTION FTA MFN RATE, FTA RATE, PSR
4418.10.00 (PH rate MFN 5 PJEPA 0 AJCEPA 0) Windows, French-windows and their frames Japan AJCEPA PJEPA   0 0 0 CTH CTH
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Top traded products between Japan and Philippines
AHTN 2012 DESCRIPTION FTA MFN RATE, FTA RATE, PSR
4418.90.10 (PH rate MFN 5 PJEPA 0 AJCEPA 0) Cellular wood panels Japan AJCEPA PJEPA   5 0 0 CTH CTH
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Top traded products between Japan and Philippines
AHTN 2012 DESCRIPTION FTA MFN RATE, FTA RATE, PSR
8544.30.12 8544.30.13 8544.30.14 8544.30.19 (PH rate MFN 15/30 PJEPA 8/S AJCEPA 8/15/30) Wiring harnesses for motor vehicles Japan AJCEPA PJEPA   0 0 0 RVC (40) or CTH RVC (40) or CTH
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• How can you avail of these incentives?
• Know the correct AHTN heading of your product.
• 2. Verify if the product is offered under FTAs.
• 3. Compare the tariff rates under MFN and FTA.
• 4. Check the Product Specific Rules or PSR.

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• TARIFF CLASSIFICATION RULINGS
• Section 1313a of the Tariff and Customs Code
• TC Form 1 (Imports)
• TC Form 2 (Exports)
• Forms downloadable at TC Website
• Submit accomplished form, together with samples,
  technical brochures (description, function,
  composition, etc.)
• Filing Fee (P300.00 per article)

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Accomplished TC Form 1
Advance Ruling issued
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TARIFF COMMISSION 5th Floor Philippine Heart
Center, East Avenue, Diliman, Quezon City Tel.
[phone] Fax [phone] Website
www.tariffcommission.gov.ph Email/s
info_at_tariffcommission.gov.ph
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Thank you!!