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.

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