IMPOSITION OF SPECIAL SAFEGUARD DUTY ON CHICKEN IMPORTS

A.        Imposition of price-based SSG duty

As shown, it is requested that
additional duty be imposed for five (5) chicken products which are
eligible for SSG because their respective trigger prices have been
breached or that the actual c.i.f. import price of each product is less
than its corresponding trigger price.  The amount
of SSG duty to be imposed shall be on a shipment-by-shipment basis and
shall depend on the difference between the c.i.f. import price and the
product’s trigger price as illustrated in the example provided in Annex
A.

B. Imposition of volume-based SSG duty

For “meat and offal of fowls of the species Gallus domesticus,
prepared or preserved in airtight containers” or chicken product with
HS code 1602.3210, SSG duty is requested to be imposed because its
trigger volume has been breached or that its cumulative import volume
for year 2002 has already exceeded its trigger volume.  The
amount of SSG duty to be imposed shall be 15% or one third of the
applicable out-quota customs duty (chapter III, rule 23.1.b of RA 8800) Further, this SSG duty is requested to be made effective immediately but up to the end of the year only.

May we further request that the imposition of the SSG duty on the specified chicken products be made effective immediately.

Adopted: 25 Sept. 2002

(SGD.) LEONARDO Q. MONTEMAYOR
Secretary

ANNEX A

An example:

Agricultural product — HS code 0207.14 12 (Livers of the species Gallus domesticus, frozen)

If current/actual c.i.f. price is 31.55 pesos per kg.

Price difference =          Trigger price less current (2002) c.i.f. import price

                                    =          423.55 – 31.55

                                    =          392 pesos per kg

This price difference is equivalent to
93% of the trigger price. Using the formula provided under section 24
of the law, which applied to the computed price difference exceeding 75%
of the trigger price, the special safeguard (SSG) duty which may be
imposed shall be as follows:

SSG duty         =          [90% x {price difference – (75% x trigger price)}]

[70% x {price difference – (60% x trigger price)}] +

[50% x {price difference – (40% x trigger price)}] +

[30% x {price difference – (10% x trigger price)}]

=          [90%
x {392 – (75% x 423.55)}] + [70% x {392 – (60% x 423.55)}] + [50% x
{392 – (40% x 423.55)}] + [30% x {392 – (10% x 423.55)}]

=          66.90 + 96.51 + 111.29 + 104.89

SSG duty            =          379.59 pesos per kg

Therefore, in this example wherein the
c.i.f. import price of chicken liver imports is 31.55 pesos per kg.,
the SSG duty which may be imposed over and above the regular out-quota
customs duty, is 379.59 pesos per kg.