LYCEUM OF THE PHILIPPINES UNIVERSITY

College of Business Administration

First Semester, AY 2014-2015
SYLLABUS
Subject Code
Subject Title
No. of Units
Lecture hours/week
Pre-requisite

:
:
:
:
:

TARN03B
Basis of Dutiable Value
Three (3) units
Three
TARN02B

Course Description:
This course is designed to introduce the students to the various methods of determining the proper valuation of
imported commodities for customs purposes using the different customs valuation systems provided for under the laws as
well as the rules under the WTO Rules on Customs Valuation to which the Philippines is a member in relation to the
modifications brought about by the various domestic legislations and issuances and the international commercial terms.
Program Objectives:
The Bachelor of Science in Customs Administration program aims to achieve the following:
1. Prepare the students to meet the requirements of the customs profession in the Philippines;
2.

Nurture and enhance the professional leadership and entrepreneurial skills of the graduates;

3.

Develop globally competitive graduates who possess skills in communication, leadership and
Information technology in the fields of business and industry;

4.

Inculcate in the graduate the culture of research and contribute to the development of the profession
in particular and to the domestic and international trade in general;

5.

Develop globally competitive graduates who possess profound knowledge in domestic and
International freight forwarding;

6.

Impress upon the graduate the importance of continuing education in the practice of the profession
through various trainings, symposia, forums, seminars among others that will ultimately lead to
continuous improvement as a professional and as an individual;

7.

Develop socially responsible and morally ethical professionals who internalize the values stated in
the Code of ethics for customs brokers in their dealings either as practicing professionals or as
employees or officers in the public sector;

8.

Develop competent, effective and efficient customs brokers who can:

a.

Give professional advises or act as consultants in matters relating to tariff and customs laws,
rules and regulations in connection with activities involving importation, exportation and
transportation of goods;

b.

Applying knowledge in import taxation, prepare customs requisite documents including

Declarations of customs duties and taxes as well as processing entries and export
Declarations;

c.
9.

Represent clients before any government agency or private entity in cases relative to valuation
and classification of articles for import or export; and

Provide practicum training program that will enable the students to apply their practical knowledge
and skills in actual import or export transactions.

LPU Core Values:

Page 1 of 11

Love of God
Professional Integrity
Unity

Nationalism

Justice
Perseverance
Leadership

Learning Outcomes:
Upon completion of the course, the student shall be expected to:
Learning Outcomes

Learning Goals

LPU Core
Values
Professional
Integrity and
Unity

Mission
Deployment
1, 2, 4, 6

Communication

Communicate clearly and concisely using

written, spoken or visual formats and media the
various concepts, developments and principles
of Philippine Tariff System;
Discuss using various media the different
terminologies and technical terms used in
customs valuation of imported goods in
accordance with the WTO methods of
valuation.

Creative and analytical skills

In a given assignment, synthesize all the given

information from the different sources and
come up with a worthwhile solution resulting
to effectively solving the identified issues.

Perseverance

Computer Literacy

Demonstrate knowledge of computer

technology in processing data used in WTO
customs valuation of goods.

Professional
Integrity

1,2,4,6

Information retrieval and

evaluation

Identify the different techniques and

approaches in the determination of customs
value and the assessment of customs duties,
taxes and other charges using the six methods
of customs valuation;
Identify the various modes of payment on
import and export transactions as well as
banking procedures involved;
Identify the applicable customs valuation
method in the importation of commodities
under various situations and by various classes
of importers.
Identify and examine the diverse concept of
customs valuation of imported commodities
taking into account the Philippine accession to
WTO and its implication to domestic trade as
well as the various international trade
agreements to which the Philippine is a
member;
Rationalize personal observation and
recommend ethical ideas;
Examine and evaluate the ethical relevance
and consequences of the different Philippine
international trade policies, laws and
commitments that relate to valuation of goods.

Professional
Integrity and
Perseverance

1, 2, 4, 6

Love of God,
Unity and
Nationalism

4, 6

Proactive and spiritual values

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Entrepreneurial

Teamwork and Leadership

Acquire the skills and knowledge necessary to

run properly the graduates own brokerage
firm using the concepts and practical exercises
involving international trade practices and the
WTO methods of valuation in the importation
and exportation of goods.
In a particular group exercise, demonstrate
knowledge of and correctly apply the various
laws, procedures and techniques of the
assessment of collectible customs duties, taxes
and other charges as well as the appraisal of
imported articles.

Perseverance
and Leadership

Perseverance
and Leadership

1,2,3,4,5,6

5,6

Learning Objectives:
1.

2.

3.

Affective
1.1. Appreciate the significance of tariff computation.
1.2. Discuss the significant role performed by the Bureau of Customs in the efforts of the government to monitor
the proper revenue collection for national development.
1.3. Appreciate the efficiency of the Bureau of Customs as shown in the increase of revenue collection.
Cognitive
2.1. Know and effectively communicate all the laws, rules and implementing regulations affecting customs
valuation.
2.2. Familiarize the working formulas relating to the determination of Customs Value and other dutiable charges.
2.3. Determine the various particulars which include the concepts of post-entry audit system, liquidation and
recovery of import duties.
Psychomotor
3.1. Know and communicate all the laws, rules and implementing regulations affecting customs valuation.
3.2. Familiarize the working formulas relating to the determination of Customs Value and other dutiable charges.
3.3. Determine the various particulars which include the concepts of post-entry audit system, liquidation and
recovery of import duties.

Course Outline:
Learning Outcomes
The class will have a
general orientation on the
course offering with a
discussion of the different
course
requirements,
university
policies,
schedule of examinations,
grading system and other
relevant topics. Student
Quality Circles will be
identified and an election
of Homeroom Officers
will be conducted.

Subject Matter
General class orientation.
Creation of Student Quality
Circles.
Election of Homeroom
Officers.

Identify, be able to define A. Introduction

Outcomes-Based
Methodology

LPU Core
Values

No. of Hrs./Wk

The
students
will
enhance and appreciate
the
importance
of
observing
university
policies
and
will
influence their peers and
classmates to likewise
observe the same.

Perseverance

1.5 hrs/ week 1

Leadership

After the creation of

homeroom Officers and
identification of quality
circles, the students will
appreciate
their
potentials as leaders and
their vital role in the
achievement of the goal
of
their
respective
groups.
Strategy/Methodology:

Professional

4.5 hours/
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Learning Outcomes
and explain the various
terminologies used in
Customs Valuation.
Enhance their knowledge
and appreciate the
different concepts and
principles of Customs
Valuation and be able to
illustrate or demonstrate
these using the various
forms and media
including the use of
computer

Interpret the rules in

determining the dutiable
value and other charges
due on imported articles
Conceptualize the
arithmetical presentation
of the Current Valuation
System being adapted by
our government
Identify the various
concepts in the
hierarchical application
of Transaction Value
from Method (1-6)
Master the application of
the rules in determining
the dutiable value and the
corresponding duties,
taxes and other charges.

Subject Matter
1.

Concept of value in
Customs Administration;
2. Meaning of Customs
Valuation System;
3. WTO Valuation System
preview;
4. History of Customs
Valuation System of
Philippine Republic;
a. Brussels Definition
Value (BDV);
b. Home Consumption
Value (HCV);
c. Fair Market Value
(FMV);
d. Export Value (EV);
e. Transaction Value
(TV)

B. Determination of
customs value
1.

Methods of Customs
Valuation;
a. Transaction Value;
b. Transaction Value of
Identical Goods;
c. Transaction Value of
Similar Goods;
d. Deductive Method;
e. Computed Value
Method;
f. Fall Back Method
2. Mandatory Additions to
the Price Actually Paid or
Payable (PAPP)
a. Commissions/
Brokerage Fee
b. Assists
c. Royalties and License
Fees
d. Proceeds from
Subsequent Resale
e. Cost of Transport of
Imported Goods; Cost
of containers; Cost of

1.
2.

3.
4.

Outcomes-Based
Methodology
Lecture discussion;
Comparative study
of Method of
Valuation concepts
and principles;
Group discussion
Problem Solving

LPU Core
Values
Integrity

Activities:
1. Case studies;
2. Recitations;
3. Seatwork;
4. Quizzes;
5. Group dynamics

Perseverance

Outcomes:
1. Students can
explain,
appreciate and illustrate
using various media the
principles and concepts
of Methods of Valuation

Perseverance

Strategy/Methodology:
1. Lecture discussion;
2. Comparative study
of Transaction
Value;
3. Group
discussion/reporting
;
4. Problem solving.
Activities:
1. Case studies;
2. Recitations;
3. Seatwork;
4. Quizzes;
5. Group Dynamics

No. of Hrs./Wk
week 1 to 2

4.5 hours/ week

3 to 5

Perseverance
and
Professional
Integrity

Outcome:
1. Students can
explain, discuss,
appreciate, and
illustrate using
various media the
principles and
concepts of
Transaction Value
Method, including
the mandatory

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Learning Outcomes

Subject Matter
packing whether for
labor or materials
f. Loading and Unloading
Charges
g. Insurance Cost
h. Other charges

Outcomes-Based
Methodology
adjustments and
permissible
deductions on
PAPP.

LPU Core
Values

No. of Hrs./Wk

3. Permissive Deductions/
Post importation costs
and expenses;
a. Charges for
construction, erection,
assembly maintenance,
technical assistance
undertaken after
importation;
b. Cost of transport after
importation;
c. Duties & Taxes paid
after importation;
d. Other permissible
deduction allowed
under WTO Valuation
Agreement.
C. Method One:
Transaction Value (TV)
1. Background
a. Concept of TV and
PAPP under the
WTO Rules and TCC
as amended by RA
9135.
b. Correct Usage of
Terminology
c. Meaning of the proviso
Sold for Export to the
Philippines.

Strategy and
Methodology:
1.
2.

3.
4.

Professional
Integrity

Lecture
Discussion;
Comparative
Study of
Method of
Valuation from
Method 2-6
3. Group
discussion/repor
ting;
Problem
solving.

2. Application of the rules.

3. Valuation treatment of:
a. Sale transactions
b. Consignments
c. Other non-sale
transactions
c.1. donations
c.2. shipments covered
by re-export
bonds.
c.3. Other transactions
Preliminary examination

Activities:
1. Case studies;
2. Recitations;
3. Seatwork;
4. Quizzes;
5. Group
dynamics

Professional

1.5 hours
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Learning Outcomes

Subject Matter

C. Method Two:
Transaction Value of
Identical Goods (TVIG)
1. Background
a. Concept of TVIG
under the
WTO Rules and TCC
as amended by RA
9135.
b. Correct Usage of
Terminology
c. Definition of Identical
Goods;
d. Principles in the
sequential or
hierarchical rule in the
use of Method Two;
e. Adjustments in the
determination of
Transaction Value of
Identical Goods;
f. Adjustment by reason
of different
commercial levels of
different quantities;
Adjustments for
freight, loading,
unloading and
handling charges;
2. Application of the
rules.

Outcomes-Based
Methodology

Strategy and
Methodology:
1. Lecture
discussion;
2. Comparative
presentation of
international
commercial
terms;
3. Group
discussion;
4. Problem
solving.

Perseverance
and Unity

No. of Hrs./Wk
Sub-total: 18
hours

4.5 hours

Perseverance

Activities:
1.
2.
3.
4.

Recitations;
Seatwork;
Quizzes;
Group
dynamics

Professional
Integrity

Outcomes:
Students can define,
appreciate, explain, and
illustrate using various
media the international
commercial terms

D. Method Three:
Transaction Value for
Similar Goods (TVSG)
1. Background
a. Concept of TVSG
under the
WTO Rules and TCC
as amended by RA
9135.
b. Correct Usage of
Terminology
c. Definition of similar
Goods

LPU Core
Values
Integrity,
Love of God,
Justice and
Perseverance

Perseverance
and Unity
Strategy and
Methodology:
1. Lecture discussion
2. Group discussion
3. Power point
Presentation of the
various formulas and
techniques

4.5 hours

Perseverance

Activities
a. Recitations
b. Quizzes
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Learning Outcomes

Subject Matter
d. Principles in the
sequential or
hierarchical rule in the
use of Method Three;
e. Adjustments in the
determination of
Transaction Value of
Similar Goods
f. Adjustment by reason
of different
commercial levels of
different quantities;
Adjustments for
freight, loading,
unloading and
handling charges;
2. Application of the
rules.

Outcomes-Based
Methodology
c. Seatwork
d. Group dynamics

No. of Hrs./Wk

Outcomes
Students were able to
analyze on how to derive
customs value using
different international
commercial terms.

E. Method Four:
Deductive Method
1. Background
a. Concept of the method
under the WTO Rules
and TCC Provisions.
b. Sequential and
hierarchical rule in the
use of Method four
c. Interpretation of goods
being valued or of
identical or similar
goods
d. Exchange rate as a
factor in Deductive
Method
2. Backward computation of
Landed cost computation

LPU Core
Values
Professional
Integrity

Perseverance
and Unity

4.5 hours

Strategy/Methodology:
1. Lecture discussion;
2. Group discussion
3. Problem solving
Activities:
1. Recitations;
2. Seatwork;
3. Quizzes;
4. Group dynamics

Outcomes:
1. Students are able to
analyze on how to
derive customs value
using different
international
F. Method Five: Computed
commercial terms.
Value
1. Background
a. Concept of the method Strategy/ Methodology
under the WTO Rules 1. Lecture discussion;
and TCC Provisions
2. Group discussion
Provision
3. Problem solving
b. Method Five as an
exception to the
Activities
sequential or
1. Practical exercises
hierarchical rule in
2. Recitations;
valuation;
3. Seatwork;
c. Concept of Computed 4. Quizzes;
Value Method;
5. Group dynamics
d. General Principles in
the use of Method Five

Professional
Integrity

Perseverance
and Unity

4.5 hours

Perseverance

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Learning Outcomes

Subject Matter

Outcomes-Based
Methodology

LPU Core
Values

No. of Hrs./Wk

2. Application of the
method.
G. Method 6: Fallback
Method.
1. Concept of the rule
2. Meaning of flexibility
2. Application of the rule.

Perseverance
and Unity

4.5 hours

Strategy/ Methodology
1. Lecture discussion;
2. Group discussion
3. Problem solving
Perseverance

Simplify the complicated

steps and procedures in
the determination of
duties and taxes due on
imported articles.

H. Fundamentals of
Computation

Activities
1. Practical exercises
2. Recitations;
3. Seatwork;
4. Quizzes;
5. group dynamics

Practice the techniques 1. Deriving Customs Value;

Strategy/Methodology:
such as short cut
a. Using CIF/CIP Terms of
formulas to simplify the
Shipment;
1. Lecture discussion;
computation of duties and b. Using CFR/CPT Terms 2. Group discussion;
taxes on imported articles
of shipment;
3. Problem solving.
especially in single and
c. Using Ex-works Terms
multiple items.
of Shipment
Activities:
d. Using other incoterms
1. Practical exercises;
2. Deriving Insurance Premium 2. Recitations;
(Remedial Computation in 3. Seatwork;
Deriving Insurance
4. Quizzes;
Premium)
5. Group dynamics.

Perseverance
and Unity

4.5 hours

Perseverance

3. Deriving Freight Charges;

(CMO 22-2007)
4. Deriving Dutiable Value and
Customs Duty of Imported
Articles
5. Determination of Applicable
Exchange rate and rate of
duty (Section 203 and
204, TCC)
6. Deriving Customs Duty of
Imported articles
7. Alternative Dutiable Value
Mid-term examination

Simplify the complicated

Professional
Integrity,
Love of God,
Justice and

1.5 hours
Sub-total: 18
hours
Page 8 of 11

Learning Outcomes
steps and procedures in
the determination of
duties and taxes due on
imported articles.

Subject Matter
I. Computation of Taxable
Charges
1.

Practice the techniques

such as short cut
formulas to simplify the
computation of duties and
taxes on imported articles
especially in single and
multiple items.

a.
b.
c.
d.
e.
f.
g.

Simplify the complicated

steps and procedures in
the determination of
duties and taxes due on
imported articles.
Practice the techniques
such as short cut
formulas to simplify the
computation of duties and
taxes on imported articles
especially in single and
multiple items.

Outcomes-Based
Methodology

h.
i.

Composition of Landed
Cost
Dutiable Value in Peso
Customs Duty;
Bank charges
Brokerage fee
Wharfage and Arrastre
charges for assessment
purposes
Import Processing Fee
Customs Documentary
Stamps
Other charges
Value Added Tax

Perseverance
and Unity

4.

5.

6.

Single Item
Multiple Items
Single item computation
of shipment subject to
specific taxes and
customs duties at the
same time.
Multiple item
computation of
shipments subject to
specific taxes and
customs duties at the
same time.
Single item computation
of shipments subject to
specific, special duties,
penalties and customs
duties at the same time.
Multiple item
computation of items
subject to specific taxes,
special duties and
customs duties at the
same time.

Final Examination

No. of Hrs./Wk

4.5 hours

Strategy/Methodology:
1. Lecture discussion;
2. Group discussion;
3. Problem solving.
Perseverance
Activities:
1. Practical exercises;
2. Recitations;
3. Seatwork;
4. Quizzes;
5. Group dynamics.

J. Practical Computation
of Customs Duties,
Taxes and Other
Charges
1.
2.
3.

LPU Core
Values
Perseverance

Strategy/Methodology
1. Lecture discussion
2. Group discussion
3. Problem solving

Perseverance,
Integrity and
Justice

4.5 hours

Professional
Integrity,
Love of God,
Justice and

2 hours
Sub-total: 18
hours
Total: 54 hours

Activities:
1. Practical exercises
2. Recitations
3. Seatwork;
4. Quizzes
5. Group dynamics
Outcomes:
1. Students can compute
the duties and taxes
due on imported
articles using different
international
commercial terms.
2. The students can
apply their knowledge
of the different
computation
techniques when they
take on higher tariff
subjects particularly
tariff 4 and when they
practice they
profession.

Page 9 of 11

Learning Outcomes

Subject Matter

Outcomes-Based
Methodology

LPU Core
Values
Perseverance

No. of Hrs./Wk

No available textbook. No textbook recommended.

REFERENCE MATERIALS:
Philippine Tariff Commission (2013). Tariff and Customs Code of the Philippines, Volume II, as amended
Current Customs administrative orders (CAO) and customs memorandum orders (CMO)
Republic Act No. 9334 (Distilled Spirits, Wines, Liquors, Tobacco, Cigars and Cigarettes, Mineral Products)
Republic Act No. 9135
Philippine Customs Valuation System, Edition 2007
Other relevant materials
Electronic Sources:
www.tariffcommission.gov.ph
www.congress.gov.ph
www.sc.judiciary.gov.ph
www.chanrobles.com
www.lawphil.net
www.wto.org
www.asean.net
www.apec.org
Course Requirements:
Major Examination
1.1. Preliminary Examination
1.2. Midterm Examination
1.3. Final Examination
2. Quizzes
3. Class Recitation
4. Case Analysis
5. Other related projects
6. Research work and other assignments
7. Attendance
Computation of Grades
G1 = 40% PE + 60% CAP1
G2 = 40% ME + 60% CAP2
G3 = 40% FE + 60% CAP3
Then:

G1 G2 G3
3
FG =
where
FG refers to the Final Grade
G1, G2, and G3 refers to the grading period Prelim, Midterm and Final, respectively

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PE, ME, and FE refers to Prelim Exam, Midterm Exam and Final Exam, respectively
CAP1, CAP2, and CAP3 refers to Creative Academic Performance (CAP) per grading period which
includes quizzes, recitation, seatwork, research, reports, projects, and other class requirements.
Prepared by / date

Approved by / date

Noted by / date

NORBERTO V. CASTILLO

DR. MARIA VICTORIA M. AC-AC

DR. CONRADO E. IIGO, JR.

Chairperson

Dean, CBA

Vice President for Academic Affairs

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