AMENDING SECTION 301 OF PRESIDENTIAL DECREE NO. 1464 OTHERWISE KNOWN AS THE TARIFF AND CUSTOMS CODE OF 1978 AS AMENDED.

WHEREAS, it is the government concern to provide domestic
industries government measures against unfair trade practices ;

WHEREAS, the present provision on dumping under Section 301
of the Tariff and Customs Code needs further strengthening and modification to
provide domestic industries adequate trade measures to face this
eventuality.

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 as follows:

SECTION 1. The provisions of Subparagraph b(l) and (3) of
Section 301 of the Tariff and Customs Code, as amended, are further amended to
read as follows:

“b. The Commission, upon receipt of the advice from the Minister shall
conduct an investigation to:

1. Verify if the kind or class of article in question is being imported into,
   or sold or is likely to be sold in the Philippines at a price less than its fair
   value;

The fair value of an article shall be its home consumption price, excluding
internal excise taxes.

If the fair value of an article cannot be determined, the following rules
shall apply:

i. If the home consumption price is unreliable because of association or a
compensatory arrangement between the exporter and the importer or a third party,
or if the quantity of like or similar articles sold by the producers for home
consumption is negligible in relation to the quantity sold for exportation to
countries other than the Philippines as to be an inadequate basis for
comparison, then the fair value of the articles shall be based from the export
price of like articles sold to countries other than the Philippines, or

ii. If the country of export is a state-controlled economy, then the fair
value of like articles shall be the home consumption price of like articles in a
proxy country at the same stage of economic development which is a proven or
established competitive producer of the article under consideration.

iii. In the case where products are not imported directly from the country of
origin but are exported to the country of importation from an intermediate
country, the fair value shall be the home consumption price in the country of
origin or the country of export whichever is higher.

iv. If the fair value of such or like article cannot be determined in
accordance with the preceding paragraphs then, the fair value of the article
under consideration shall be its cost of production as determined or calculated
from reasonably available data.”

“3. Ascertain the difference, if any, between the purchase price and the fair
value of the article. The Commission shall submit its findings to the Minister
within sixty (60) days after the submission of the Memoranda of the parties
which will not be later than fifteen (15) days after the termination of the
public hearing.”

SEC. 2. The provisions of Subparagraphs “c” and “d” of the
same section are hereby amended to read as follows:

“(c) The Minister shall, within sixty (60) days after receipt of the report
of Commission, decide whether the article in question is
being imported in
violation of this section and shall give due notice of such decision and shall
direct the Commissioner of Customs to cause the dumping duty, to be levied,
collected and paid, as prescribed in this section, in addition to any other
duties, taxes and charges imposed by law on such article, and on the articles of
the same specific kind or class subsequently imported under similar
circumstances coming from the specific country.”

“(d) The “Dumping Duty” as provided for in sub-section “c” hereof shall be
equal to the difference between the actual purchase price and the fair value of
the article as determined in the dumping decision. All importations of like
articles within sixty (60) days immediately preceding the filing of the protest
are covered by the investigation. However, in cases of subsequent importations
of same kind or class of article from the specific country named in the protest,
the dumping duty shall be equal to the difference between the actual purchase
price and the fair value actually existing at the time of importation as
determined by the Tariff Commission from the supporting documents submitted or
from other reliable sources.”

SEC. 3. The first sentence of subparagraph “i” of the same
Section shall be amended to read as follows:

“i. The established dumping duty shall be subject to adjustment based on the
prevailing home consumption price or the exporter’s sales price to third country
or the home consumption price of a proxy country or in the absence thereof, the
cost of production.”

X X X

SEC. 4. The Minister and the Commission shall promulgate all
rules and regulations necessary to carry out their respective functions under
this section.

SEC. 5. This Decree shall take effect immediately.

DONE in the City of Manila, this 9th day of November 1985, in the year of Our
Lord, nineteen hundred and eighty-five.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Executive Assistant