AMENDING SUBSECTION (A) OF SECTION THREE HUNDRED TWO OF PRESIDENTIAL DECREE NUMBERED FOURTEEN HUNDRED SIXTY-FOUR, OTHERWISE KNOWN AS THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED

WHEREAS, the Philippines as a Contracting Party to the
General Agreement on Tariffs and Trade (GATT) has acceded to the Agreement on
Interpretation and Application of Article VI, XVI and XXIII of GATT, otherwise
known as the Code on Subsidies and Countervailing Unties;

WHEREAS, upon accession to the GATT Code on Subsidies and
Countervailing Duties the Philippines has to align its national legislation,
regulations and administrative procedures on countervailing investigations with
the provisions of the Agreement:

WHEREAS, Section 302 of the tariff and customs Code, as
amended, does not provide for an injury criterion before a countervailing duty
could be imposed against a foreign article and, therefore, not in accord with
the GATT Code on Subsidies and Countervailing Duties.

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 decree and order:

SECTION 1. Subsection (a) of Section 302 of Presidential
Decree Numbered Fourteen Hundred Sixty-Four as amended, is hereby further
amended to read as follows:

SEC. 302. Countervailing Duty

“a. Whenever any article is directly or indirectly granted any bounty,
subsidy or subvention upon its production, manufacture or exportation in the
country of origin and/or exportation, and the importation of which has been
determined by the Minister, after investigation and report of the Commission, as
likely to injure established industry, or prevent or considerably retard the
establishment of an industry in the Philippines, there shall be levied a
countervailing duty equal to the ascertained or estimated amount of such bounty,
subsidy or subvention: Provided, that they injury criterion to a
domestic industry shall be applied only in the case of imports from countries
which adhere to GATT Code on Subsidies and Countervailing Duties: Provided,
further, That the exemption of any exported article from duty or tax
imposed on like articles when destined for consumption in the country or origin
and/or exportation or the refunding of such duty or tax, shall not be deemed to
constitute a grant of a bounty, subsidy or subvention within the meaning of this
Section: Provided, furthermore, That should an article be allowed
drawback by the country of origin and/or exportation, only the ascertained or
estimated excess of the amount of the drawback over the total amount of the
duties and/or internal taxes, if any, shall constitute a bounty, subsidy or
subvention: Provided, finally, That petitions for imposition of
countervailing duty shall be filed with the Minister of Finance. Upon finding of
a prima facie case of bounty, subsidy or subvention enjoyed by the imported
article and injury to, or likelihood of injury to a domestic industry, the
Minister shall refer the case to the Tariff Commission for investigation and
shall instruct the Commissioner of Customs, to require the filing of
countervailing bonds for importations entered during the pendency of
countervailing proceedings.

SECTION 2. Repealing Clause. Any provision of law, decree,
rules and regulations inconsistent herewith are hereby deemed repealed, amended
or modified accordingly.

SECTION 3. Effectivivity Clause.-This Decree shall take
effect immediately.

DONE in the City of Manila, this 13th of April, nineteen hundred and
eighty-five.