Assignment: II G to N Definitions Excise taxes as used in the Tax Code, are taxes imposed on certain specified goods or articles

s manufactured or produced in the Philippines for domestic sale or consumption or for any other disposition and to things imported into the Philippines. Documentary stamp tax is a tax on documents, instruments, and papers evidencing the acceptance, assignment, sale or transfer of an obligation, rights, or property incident thereto. Customs duties are taxes levied by a government on goods exported from or imported into the country. They are used in the book to refer to import duties. Tariff means a book of rates; a schedule of fees imposed on goods exported from or imported into a country. Narcotic drug any drug which produces insensibility, stupor, melancholy or dullness of mind with delusions and which may be habit-forming; and includes opium, opium derivatives and synthetic opiates. Enumerations Kinds of excise taxes a.) Specific tax or one imposed and based on weight or volume capacity or any other physical unit of measurement; and b.) Ad valorem tax or one imposed and based on selling price or other specified value of the goods. How rates of specific tax levied 1.) Volume 2.) Length 3.) Weight 4.) Number Nature and purpose of documentary stamp tax. 1.) It is an excise or privilege tax because it is really imposed on the privilege to enter into a transaction rather than on document. The document is only taxed because of the transaction. 2.) The purpose of the law in imposing stamp taxes is to raise revenue. Classification of customs duties They may be classified as follows: 1.) Ordinary or regular customs duties, which are imposed and collected mainly as a source of revenue, namely: a.) Ad valorem the duty is based on the market value or price of the imported article b.) Specific the duty is based on the weight or volume of the imported article c.) Alternate the duty is based either on the weight or volume or on the value of the imported article, whichever is higher, and

d.) Compound the duty is based both on the weight or volume and the value of the imported article; and 2.) Special customs duties, which are imposed and collected in addition to the ordinary customs duties usually to protect local industries against foreign competition. The flexible tariff clause Section 401 of the Tariff and Customs Code is generally referred to as the flexible tariff clause. 1.) Authority given It authorizes the President: a.) To increase, reduce, or remove existing protective rates of import duty (including any necessary change in classification): b.) To establish import quota or ban imports of any commodity, as may be necessary, and c.) To impose an additional duty on all imports not exceeding 10% ad valorem whenever necessary. 2.) Conditions for its existence. The exercise of the power by the President is subject to the following conditions: a.) The increase, reduction or removal is necessary in the interest of national economy, general welfare and/or national defense; b.) There must be prior investigation by the Tariff Commission and recommendation of the National Economic and Development Authority (NEDA). c.) The President may reduce the existing rates of import duty by not lower than the basic rate of 10% ad valorem or increase them by not higher than a maximum% ad valorem; and d.) Any order issued by the President under said section shall take effect only thirty (30) days after promulgation, except in the imposition of additional duty not exceeding 10% ad valorem which shall take effect at the discretion of the President.