Should imported books be taxed?
“The Florence Agreement,” a.k.a. “Agreement on the Importation of Educational, Scientific and Cultural Materials, with Annexes A to E and Protocol annexed 1950,” of which the Philippines was a signatory since 7 August 1979 says otherwise.
The intent of the agreeement:
the free exchange of ideas and knowledge and, in general, the widest possible dissemination of the diverse forms of self-expression used by civilizations are vitally important both for intellectual progress and international understanding, and consequently for the maintenance of world peace;
Considering that this interchange is accomplished primarily by means of books, publications and educational, scientific and cultural materials;
Considering that the Constitution of the United Nations Educational, Scientific and Cultural Organization urges co-operation between nations in all branches of intellectual activity, including `the exchange of publications, objects of artistic and scientific interest and other materials of information’ and provides further that the Organization shall `collaborate in the work of advancing the mutual knowledge and understanding of peoples, through all means of mass communication and to that end recommend such international agreements as may be necessary to promote the free flow of ideas by word and image’ ;
Recognize that these aims will be effectively furthered by an international agreement facilitating the free flow of books, publications and educational, scientific and cultural materials;
On customs duties according to this Agreement:
Article I
1. The contracting States undertake not to apply customs duties or other charges on, or in connection with, the importation of:
(a) Books, publications and documents, listed in Annex A to this Agreement;
(b) Educational, scientific and cultural materials, listed in Annexes B, C, D and E to this Agreement; which are the products of another contracting State, subject to the conditions laid down in those annexes.
2. The provisions of paragraph 1 of this article shall not prevent any contracting State from levying on imported materials :
(a) Internal taxes or any other internal charges of any kind, imposed at the time of importation or subsequently, not exceeding those applied directly or indirectly to like domestic products;
(b) Fees and charges, other than customs duties, imposed by governmental authorities on, or in connection with, importation, limited in amount to the approximate cost of the services rendered, and representing neither an indirect protection to domestic products nor a taxation of imports for revenue purposes.
What is this so called, Annex A?
Annex A
Books, publications and documents
(i) Printed books.
(ii) Newspapers and periodicals.
(iii) Books and documents produced by duplicating processes other than printing.
(iv) Official government publications, that is, official, parliamentary and administrative documents published in their country of origin.
(v) Travel posters and travel literature (pamphlets, guides, time-tables, leaflets and similar publications), whether illustrated or not, including those published by private commercial enterprises, whose purpose is to stimulate travel outside the country of importation.
(vi) Publications whose purpose is to stimulate study outside the country of importation.
(vii) Manuscripts, including typescripts.
(viii) Catalogues of books and publications, being books and publications offered for sale by publishers or booksellers established outside the country of importation.
(ix) Catalogues of films, recordings or other visual and auditory material of an educational, scientific or cultural character, being catalogues issued by or on behalf of the United Nations or any of its Specialized Agencies.
(x) Music in manuscript or printed form, or reproduced by duplicating processes other than printing.
(xi) Geographical, hydrographical or astronomical maps and charts.
(xii) Architectural, industrial or engineering plans- and designs, and reproductions thereof, intended for study in scientific establishments or educational institutions approved by the competent authorities of the importing country for the purpose of duty-free admission of these types of articles.
(The exemptions provided by Annex A shall not apply to:
(a) Stationery;
(b) Books, publications and documents (except catalogues, travel posters and travel literature referred to above) published by or for a private commercial enterprise, essentially for advertising purposes;
(c) Newspapers and periodicals in which the advertising matter is in excess of 70 per cent by space;
(d) All other items (except catalogues referred to above) in which the advertising matter is in excess of 25 per cent by space. In the case of travel posters and literature, this percentage shall apply only to private commercial advertising matter.)
Ergo, the interpretation of the Bureau of Customs is flawed. Even books bought via Amazon should be tax-exempt.
Popularity: 2% [?]
To punitively tax books or ban books is a shade below the mentality that argues for burning them. It is disgusting. An enlightened society prizes books. It does not block or burn.
As for Philippine Customs, they have a backward charter, so it figures they will be inspired by backward policies. They view themselves as a taxing agency rather than an agency for the promotion of a vibrant, productive nation. Rather than reduce fees, simplify processes and promote the Philippines as a regional trade center, like Hong Kong or Taiwan, they throw up barriers and grovel shamelessly for this year’s fees. The beautiful harbors, low cost wages, and strategic location of the Philippines are wasted. Jobs are lost.
As I said,
backward.
Joe
It’s the leadership. The Bureau of Customs is under the Executive branch of government, isn’t it? Can’t the president just tell the bureau not to tax books, any books?
Oh, I guess they will not do that, they need the money. Maski barya lang, sayang din iyon.
All actions by the executive branch has to follow Philippine law. And an existing Philippine law has precedence over United Nations documents.
So the question is : what does Philippine law say and does the Philippine law violate the Philippine constitution?
The Philippine government has signed this agreement on the 7 august 1979, which means that it has made it into a law, applicable on the Philippine territory.
Do existing Philippine laws take precedence over UN documents?
Wrong viewpoint: UN documents have no bearing on the Philippine unless the Philippine has agreed to sign it. But once The Philippine governement *signed* the agreement, that agreement becomes part of the Philippine law and the Philippines must follow it, in the same way that when you make an agreement with someone you have to respect it. Otherwise, what would be the point of making an agreement?
According to the Florence agreement, article XIV, the Philippine governement can request to cancel this agreement in writing, and the cancellation would then take effect 1 year thereafter, so if the Philippine ruling bodies believe that this agreement is not in the best interest of the Philippines, they can cancel it by following the procedures laid out to that effect.
But until such a time this agreement is cancelled, it has force of law, and it is a shame that the authorities in charge of applying the law are the ones violating it.
I am against taxing for any materials that informs people or give
knowledge to the young…
“Should imported books be taxed?”
NO.
Simply because they are exempted…as stated in the Tariff Law…
Book I: Tarrif Law
Title I: Import Tariff
Section 105: Conditionally-Free Importations
(s) Economic, technical, vocational, scientific, philosophical, historical, and cultural books and/or publications.
(Reference: Tarrif Law pdf downloaded from customsdotgovdotph)
Please note that in the Clarificatory Guidelines on Duty-Free Importation of Books (FAQ):
(Reference: importation_of_books_FAQ pdf downloaded from customsdotgovdotph)
there is repeated mention of the condition “provided that they are not for sale, barter or hire.” This phrase sets the condition when tax is free. But this condition was set NOT by law but only by a Department Order No. 17-09 because…
This particular condition was NEVER mentioned in item “(s)” of the Tariff Law cited above. The same Tariff Law in which the Florence Agreement is already incorporated into its “Section 105 (s).”
The law, I believe, only says that as long as the economic, technical, vocational, scientific, philosophical, historical, and cultural books and/or publications are imported and sold, bartered, hired or used for purposes that they were intended for THEN they are exempted from the payment of import duties.
In Section 105, the law clearly states the condition when an imported article is not to be exempted from tax by specifying the exact provision that the imported article shall not be for sale, barter, or hire. Look at the following items in the Presidential Decree No. 1464:
http://www.chanrobles.com/presidentialdecreeno1464.htm
Item (f).
“Provided, That the personal and household effects shall neither be in commercial quantities nor intended for barter, sale or hire…”
Item (g) re: Wearing apparel etc.
“Provided, That this exemption shall not apply to articles intended for other persons or for barter, sale or hire…”
Item (g-1) re: Personal and household effects and vehicles belonging to foreign consultants and experts hired by, and/or rendering service to, the government.
“…for their own use and not for barter, sale or hire…”
Item (h) re: Professional instruments and implements, tools of trade, occupation or employment, wearing apparel, domestic animals, and personal and household effects belonging to persons coming to settle in the Philippines…
“…for their own use and not for barter or sale…”
Item (t) re: Philippine articles previously exported from the Philippines and returned…
“…and not for sale, barter or hire…”
For Item (s), it was ONLY the Department Order No. 17-09 that supplied the phrase “the imported article shall not be for sale, barter, or hire” or, conversely (depending on usage), “intended for sale, barter, or hire.”
No such phrase was specified in Item (s)…
(Reference: importation_of_books_Section_105 pdf downloaded from customsdotgovdotph)
for it is an encompassing provision that Economic, technical, vocational, scientific, philosophical, historical, and cultural books and/or publications ARE EXEMPTED from tax.
Doesn’t an international agreement take precedence over local law or a presidential decree?
Please note that in the Clarificatory Guidelines on Duty-Free Importation of Books (Frequently Asked Questions):
(Reference: importation_of_books_FAQ pdf downloaded from customsdotgovdotph)
there is repeated mention of the condition “provided that they are not for sale, barter or hire.” This phrase sets the condition when tax is free. But this condition was set NOT by law but only by a Department Order No. 17-09 because…
This particular condition was NEVER mentioned in item “(s)” of the Tariff Law cited above. The same Tariff Law in which the Florence Agreement is already incorporated into its “Section 105 (s).”
The law, I believe, only says that as long as the economic, technical, vocational, scientific, philosophical, historical, and cultural books and/or publications are imported and sold, bartered, hired or used for purposes that they were intended for THEN they are exempted from the payment of import duties.
WHAT NEEDS TO BE TAXED IS ….. THE BIBLE!!!!! The Bible is the hottest selling books in the Philippines!!!!!
If they had taxed THE BIBLE our country would have been swimming in surplus!!!!!
LOL!
If we follow the guidelines by the DOF, does religion fall under the education department? no right? so the bible should be one of those things taxed. so too will be books by Pope John Paul II, Mother Theresa, the Dalai Lama, etc.
Renato, you are making a joke, I know. But you hit the point spot on. Any restriction on books is a restriction of “spirit”, of “soul”, to the reader. Dark ages or enlightenment. Tax books or not.
Joe
Yes, international over local…
I’d like to simplify things re: this Book Blockade. From what I read, the Florence Agreement is already incorporated into Sec. 105 (s) of Pres. Decree No. 1464. Even the Customs Bureau acknowledged this. It’s just that the DOF inserted provisions or “conditions to be met” in their Doc. Order which are UNLAWFUL.
The law [Sec. 105 (s)] clearly states specific imported books tax exemption. Whether commercial or private use is NOT specified; NOT even the quantity of the imported books.
What about books from the chain of National Bookstores that sell presumably imported books for exorbitant price rates?
The reference are clear about importations of book, please do use the character of tolerance.