BOC MEMORANDUM CIRCULAR NO. 442-2000, October 31, 2000

[ BOC MEMORANDUM CIRCULAR NO. 442-2000, October 31, 2000 ]

THREE PERCENT (3%) DUTY ON COLD ROLLED STEEL PRODUCTS

Attached is the letter dated September 28, 2000 of Director Carl John G. Matriano, Board of Investments referring to the letter of Filipino Galvanizers Institute (FGI), Tower Steel Corporation and Van Leer Philippines, Inc. requesting for certification from BOI as required by this Bureau under E.O. 276 that domestic producers of cold rolled steel products cannot supply at least 50% of the market requirement.

It has been noted that E.O. 276 specifically imposes a 3% duty on cold rolled products among others for items falling under Heading Nos. 72.09 and 72.11 as shown in the attached Annex "A". (Text Available at Office of the National Administrative Register, U.P. Law Center, Diliman, Quezon City) . A 7% duty is imposed when the CRC producers are able to supply at least 50% of the market requirement based on 1997 Philippine Iron and Steel Institute (PISI) data as certified by BOI.

To date, CRC producers are not yet in a position to supply at least 50% of the market requirement. Hence, the 3% duty should be the prevailing rate until such time that the 50% hurdle has already been achieved by the BOI.

For your information and guidance.

Adopted: 31 Oct. 2000

(SGD.) JULITA S. MANAHAN

Deputy Commissioner, Internal Administration Group