PHILIPPINE LAWS, STATUTES AND CODES - CHAN ROBLES VIRTUAL LAW LIBRARY
PRESIDENTIAL DECREE NO. 1853 - REQUIRING DEPOSITS OF DUTIES AT THE TIME OF OPENING OF LETTERS OF CREDIT COVERING IMPORTS AND FOR OTHER PURPOSES
the present system of paying duties and taxes upon the filing of an
import entry and examination and appraisal of the shipment has proved
ineffective in the proper enforcement of the provisions of the Tariff
and Customs Code of 1978, as amended, and has enhanced collusion among
importers and brokers on the one hand and customs officials on the
WHEREAS, outright and technical smuggling has reached proportions which are prejudicial to the revenue collection efforts of the Government; and
WHEREAS, the present situation requires the Government to adopt more drastic measures to remedy the same;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree, to be part of the laws of the land, the following:
Section 1.chanroblesnad Provisions of existing law and regulations to the contrary notwithstanding, no financial institution shall open any letter of credit covering imports unless the applicant for such letter of credit deposits the full amount of duties due on the importation.
Sec. 2.chanroblesnad The amount of the duties due shall be based on the declaration of the applicant for the letter of credit/importer, subject to the penalties prescribed under Sec. 2503 of the Tariff and Customs Code of 1978, as amended.
Sec. 3.chanroblesnad The provisions of this Decree shall likewise apply even if the importation is effected under other types of payments arrangements or on a deferred payment basis.
Sec. 4.chanroblesnad The deposits collected hereunder shall be remitted by the financial institution concerned in the manner and within the period prescribed by law and subject to the same penalties prescribed for remittance of duties and taxes paid through financial institutions.
Sec. 5.chanroblesnad Such deposits shall be validated by official receipts of the financial institution concerned and shall be credited in the final computation of the duties, taxes and other charges due on the importation, upon the filing of the corresponding import entry.
Sec. 6.chanroblesnad Any deficiency in the deposit made as against the actual duties, taxes and other charges due on the importation shall be collected from the importer prior to the release or withdrawal of the shipment. Any excess deposit shall be refunded to the importer.
Sec. 7.chanroblesnad Violations of the provisions of this Decree shall be penalized under the pertinent provisions of the Tariff and Customs Code of 1978, as amended, and/or the Charter of the Central Bank of the Philippines.
Sec. 8.chanroblesnad The monetary Board and the Minister of Finance shall issue the necessary rules and regulations for the implementation of this Decree.
Sec. 9.chanroblesnad This Decree shall take effect January 1, 1983.
DONE in the City of Manila this 21st day of December, in the year of our Lord, nineteen hundred and eighty-two.
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