SECTION 402: Promotion of Foreign Trade
1. For the purpose of expanding foreign markets for Philippine
products as a means of assistance in the economic development of the country, in
overcoming domestic unemployment, in increasing the purchasing power of the Philippine
peso, and in establishing and maintaining better relations between the Philippines and
other countries, the President is authorized from time to time:
1.1. To enter into trade agreements with foreign governments or instrumentalities,
thereof; and
1.2. To modify import duties (including any necessary change in classification) and other
import restrictions, as are required or appropriate to carry out and promote foreign trade
with other countries: Provided, however, That in modifying import duties or fixing import
quota the requirements prescribed in subsection "a" of Section 401 shall be
observed: Provided, further, That in modifying import duties and any fixing of import
quotas made pursuant to the agreement on ASEAN Preferential Trading Arrangements ratified
on August 1, 1977 shall not be subject to the limitations of aforesaid section
"a" of Section 401.
2. The duties and other import restrictions as modified in subsection "a"
above, shall apply, to articles which are the growth, produce or manufacture of the
specific country, whether imported directly or indirectly, with which the Philippines has
entered into a trade agreement: Provided, That the President may suspend the application
of any concession to articles which are the growth, produce or manufacture of such country
because of acts (including the operations of international cartels) or policies which in
his opinion tend to defeat the purposes set in this section; and the duties and other
import restrictions as negotiated shall be in force and effect from and after such time as
specified in the Order.
3. Nothing in this section shall be construed to give any authority to cancel or reduce in
any manner any of the indebtedness of any foreign country to the Philippines or any claim
of the Philippines against any foreign country.
4. Before any trade agreement is concluded with any foreign government or instrumentality
thereof, reasonable public notice of the intention to negotiate an agreement with such
government or instrumentality shall be given in order that any interested person may have
an opportunity to present his views to the Commission which shall seek information and
advice from the Department of Agriculture, Department of Natural Resources, Department of
Trade and Industry, Department of Tourism, the Central of Bank of the Philippines, the
Department of Foreign Affairs, the Board of Investments and from such other sources as it
may deem appropriate.
5. Then,
5.1. In advising the President, as a result of the trade agreement entered into,
the Commission shall determine whether the domestic industry has suffered or is being
threatened with injury and whether the wholesale prices at which the domestic products are
sold are reasonable, taking into account the cost of raw materials, labor, overhead, a
fair return on investment, and the overall efficiency of the industry.
5.2. The NEDA shall evaluate the report of the Commission and submit recommendations to
the President.
5.3. Upon receipt of the report of the findings and recommendations of the NEDA, the
President may prescribe such adjustments in the rates of import duties, withdraw, modify
or suspend, in whole or in part, any concession under any trade agreement, establish
import quota, or institute such other import restrictions as the NEDA recommends to be
necessary in order to fully protect domestic industry and the consumers, subject to the
condition that the wholesale prices of the domestic products concerned shall be reduced
to, or maintained at, the level recommended by the NEDA unless for good cause shown, an
increase thereof, as recommended by the NEDA, is authorized by the President. Should
increases be made without such authority, the NEDA shall immediately notify the President,
who shall allow the importation of competing products in such quantities as to protect the
public from the unauthorized increase in wholesale prices.
This section shall not prevent the effectivity of any executive agreement or any future
preferential trade agreement with any foreign country.
6. The NEDA and the Commission are authorized to promulgate such reasonable
procedure, rules and regulations as they may deem necessary to execute their respective
functions under this section.
SECTION 402 FLOWCHART
[ Home ] [ Up ] [ Anti-Dumping ] [ Countervailing ] [ Harmonized System ] [ Promotion of Foreign Trade ] [ Tariff Classification ] [ Tariff Reform Program ] [ Tariff Modification ]
