Game Consoles

Video Game Consoles and Video Game machines

H.S. Code: 9504.10.00
Examples: Famicom, Gameboy, Playstation, Nintendo Wii, Xbox, Playstaion Portable
MFN Rate: 5%
CEPT Rate: 0%





How will you classify an article under this code?

According to the Explanatory Notes of the Harmonized Commodity Description and Coding System (HS):

Video game consoles and other electronic games which can be used with a television receiver, a video monitor or an automatic data processing machine monitor; video games having a self-contained screen, whether or not portable; audio visual games with electronic displays (including vertical models on legs) used in a home or game arcades, sometimes operated, for example, by coins, token, or credit cards.

Video game machines whose objective characteristics and principal function are such that they are intended for entertainment purposes (game-playing) remain classified in this heading, whether or not they fulfill the conditions of Note 5 (A) to chapter 84 regarding automatic data processing machines.

How about parts, accessories, and game peripherals?

According to Chapter 95 Note 3:

Subject to Note 1 above, parts and accessories which are suitable for use solely or principally with articles of this Chapter are to be classified with those articles.

However, optional peripherals which fulfill the conditions of Note 5(D) to Chapter 84 and which enable video game consoles to be connected to other systems, are excluded. Examples are memory cards, battery, external speakers, microphones, headsets, web cameras, digital cameras etc.

Clarificatory Guidelines for the Duty-free Importation of Books

The DOF are now in the hot seat and widely ridiculed by the blogging world for the issuance of its new policy on the importation of books. Last March 24, 2009, the DOF issued the Department Order 17-09 titled, "Clarificatory Guidelines for the Duty-free Importation of Books".

That is quickly followed by importation of books FAQ.

What does it says?

1. Only books that are educational, scientific and cultural materials listed in Annex A to E in the Florence Agreement and not for sale, barter or hire has 0% duty. The one who will determine and certify that the books falls under the Florence Agreement is UNESCO.

> When you purchase books or other materials online (must not be in commercial quantity), you must now need a certificate from UNESCO addressed to the DOF that the book you are importing is educational, scientific or cultural.

>ONLY IN THE PHILIPPINES!!! UNESCO is functioning as a regulating agency for the Philippine government. BTW, UNESCO is an NGO! Pero ok na din kaysa nmn ang BOC mag determine!

2. The economic, technical, vocational, scientific, philosophical and historical books that is not for sale, barter or hire which is duty and vat free as mentioned in Section 105(s) of the TCCP will need certification from DepEd or CHED.

> Yes! May bagong pagkakakitaan na naman ang DepED at CHED.

3. The duty and vat free imported books which can be sold, bartered or hired under RA 8047 are only those books solely used for book publishing. When our congress people wrote the law, the intention was to promote the book publishing industry daw.

>WTF?!! First of all why will somebody import books for book publishing? Parang sinabi nila na yung user's manual lang sa paggamit ng printing press at book binding ang duty at vat free.

4. Books are still vat free but you need clearance from DOF -.-". According to the DO:

The guidelines herein provided do not cover the treatment of imported books for Value-Added Tax (VAT) purposes as section 109(r) of the 1997 Tax Code, as amended, provides that the importaion of books is VAT-exempt, though applicant /importer still needs to secure DOF confirmatory-exemption clearance for this purpose.

5. If you import books that is for sale, barter or hire, then it is subject for duty. 1% for educational, scientific, cultural, economic, technical, vocational, philosophical, and historical books. 5% for other books.
> This one is really confusing. How will you say a book is not educational? Base on their definition:

Educational books - consisting essentially of textual matter of any kind, and printed in any language or characters. This includes textbooks including educational workbooks sometimes called writing books, with or without narrative textx, which contain question or exercises. Such books, with or without narrative texts, which contain questions or exercises. Such books may be bound (in paper or with soft or stiff covers) in one or more volumes, or may be in the form of printed sheets comprising the whole or a part of the complete work and designed for binding. Educational books are instructive and informative books; it relates to teaching and learning. Examples: Textbooks, workbooks, writing books for grade school, high school and college students and used as a basis for study in the academe.

From my point of view that according to their definition, all books are educational, even fictional books like Twilight. Heck, even tantric texts like Kama Sutra is educational.

If fictional books are not educational then why are we required in school to pass book reports.

Why do we even have a subject in college called world literature?

Honestly, what kind of brains does DOF people have? Why are we encouraged and sometimes required to read works like Tom Sawyer, Odyssey, Count of Monte Cristo, The Alchemist and many more. Maybe 'Twilight' is a special case because they think that books that contains mythological characters is not educational.

Also, it is not stated in the Florence Agreement that it should be books for personal use only that is duty and vat free

Book publishing industry? How about the retail stores? Aren't they a domestic industry also?

Tips for my fellow countrymen: say goodbye to Fully Booked and National Bookstore and say hello to amazon.com and barnesandnobleinc.com.

The Customs and Tariff Modernization Act of 2008

I just read the final draft of The Customs and Tariff Modernization Act of 2008. Some provisions was added and certain provisions were amended so it can be more applicable in current times. As a customs administration student, one of the problems is that the section numbers is changed. Once we graduate and this bill was passed, we would have to start from scratch as in memorizing and studying EVERYTHING!! I like the format and how it is logically arranged and I admit some of the new provisions is already being implemented by CMOs and CAOs but it will be so much pain in the butt for CA students like me. It is as though the past 4 years studying and memorizing the sections of the tariff and customs code has all amounted to nothing. I maybe overreacting but the last couple of years studying was not walk in the park.

There are some provisions that I find to be vague but only one that I find repulsive. Look at subsection 2 (in red font)

"SEC. 113. EXAMINATION OF THE GOODS


(1) TIME REQUIRED FOR EXAMINATION OF GOODS


WHEN THE EXAMINATION OF GOODS IS REQUIRED BY CUSTOMS, SUCH EXAMINATION SHALL TAKE PLACE AS SOON AS POSSIBLE AFTER THE GOODS DECLARATION HAS BEEN LODGED.
WHEN SCHEDULING EXAMINATIONS, PRIORITY SHALL BE GIVEN TO THE EXAMINATION OF LIVE ANIMALS AND PERISHABLE GOODS AND TO OTHER GOODS WHICH CUSTOMS CONSIDER AS URGENTLY NEEDING EXAMINATION.


CUSTOMS AND OTHER AGENCIES CONCERNED SHALL COME OUT WITH A SYSTEM OF
COORDINATION AND JOINT EXAMINATION OF GOODS WHICH MUST BE INSPECTED BY THE LATTER UNDER EXISTING LEGISLATION.


(2) PRESENCE OF THE DECLARANT AT EXAMINATION OF GOODS


AS A GENERAL RULE, CUSTOMS MAY EXAMINE GOODS WITHOUT THE PRESENCE OF THE DECLARANT OR AN AUTHORIZED REPRESENTATIVE. HOWEVER, IF THE DECLARANT SO REQUESTS, HE OR AN AUTHORIZED REPRESENTATIVE SHALL BE ALLOWED TO BE PRESENT UNLESS SERIOUS, EXCEPTIONAL CIRCUMSTANCES EXIST TO BAR THEIR PRESENCE.


IF CUSTOMS DEEM IT USEFUL, THEY SHALL REQUIRE THE DECLARANT TO BE PRESENT OR TO BE REPRESENTED AT THE EXAMINATION OF THE GOODS TO GIVE THEM ANYASSISTANCE NECESSARY TO FACILITATE THE EXAMINATION.


(3) SAMPLING BY THE CUSTOMS


SAMPLES SHALL BE TAKEN ONLY WHERE DEEMED NECESSARY BY CUSTOMS TO
ESTABLISH THE TARIFF DESCRIPTION AND/OR VALUE OF GOODS DECLARED OR TO
ENSURE COMPLIANCE WITH CUSTOMS AND RELATED LAWS. SAMPLES DRAWN SHALL
BE AS SMALL AS POSSIBLE."


When I read this section I was dumbfounded. In the seaports this may have a little effect because the importer or broker will need to pay for the use of the gantry crane used in moving the container which usually happens during the examination so there is a big chance that the importer or the broker is present during the examination. Still, there is the huge possibility that they can abuse their authority. What about shipments in airports or in the post office? Who the hell in their right mind would allow other people to open their shipment even if he is a competent authority. We are talking about Bureau of Customs here. Halerrrr!!!! Why would I put my trust on the agency that is well-known for its graft and corruption.

Regulated Importation

Regulated importations are imported goods that requires clearances or permit from corresponding government agencies upon each importation.

Articles that need import permit/clearance and government agencies that issues them:

Live Animals and Meat	Bureau of Animal Industry (BAI)
Fruits and Plants	Bureau of Plant Industry (BPI)
Rice and Corn	National Food Authority
Marine and Aquatic Products	Bureau of Fisheries and Aquatic Resources (BFAR)
Medicines and the like	Bureau of Food and Drugs (BFAD)
Chlorofluorocarbon and other Ozone Depleting Substances	Department of Environment and Natural Resources (DENR)
Endangered Species	Department of Environment and Natural Resources (DENR)
Various Chemicals used for the manufacture of explosives	Philippine National Police - Firearms and Explosives (PNP-FEO)
Firearms, Parts, Ammunitions, etc.	Philippine National Police - Firearms and Explosives (PNP-FEO)
Pesticides including Agricultural Chemicals	Fertilizer and Pesticide Authority
VHS, Tapes, CDs, DVDs, etc.	Optical Media Board (OMB)
TV, Movie, Film Print and Negatives, etc.	Movie and Television Review and Classification Board (MTRCB)
Transceivers, Communication Equipment, etc.	National Telecommunications Commission (NTC)
Refined Petroleum Products	Energy Regulatory Board (ERB)
Coal and Coal derivatives	Energy Regulatory Board (ERB)
Motor vehicles, Parts and Components	Department of Trade Industry (DTI), Board of Investments (BOI), Bureau of Import Services (BIS)
Color Reproduction Machines	NBI and Cash Department – Bangko Sentral ng Pilipinas
Legal tender of Philippine Currency in excess of P10,000	Bangko Sentral ng Pilipinas

Addendum: List of Regulated Import Commodities and its Administering Agencies