WHEREAS, there is a need to improve the provisions of subsection (b) of Section 183 of the National Internal Revenue Code, as amended.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree:

SECTION 1. Subsection (b) of Section 183 of the National Internal Revenue Code is hereby amended to read as follows:

"(b) Sales tax on imported articles.—When the articles are imported, the percentage taxes) established in sections one hundred eighty-four, one hundred eighty-four-A, one hundred eighty-five, one hundred eighty-five-A, one hundred eighty-five-B, one hundred eighty-six and one hundred eighty-six-B or this Code shall be paid in advance by the importer, in accordance with the regulations promulgated by the Secretary of Finance and prior to the release of such articles from customs' custody, based on the import invoice value thereof, certified to as correct under penalties of perjury by the Philippine Consul at the port of origin if there is any, including freight, postage, insurance, commission, customs duty and all similar charges, plus one hundred per centum of such total value in the case of articles enumerated in Section one hundred eighty-four; one hundred eighty-four-A, fifty per centum of such total value in the case of articles enumerated in sections one hundred eighty-five, one hundred eighty-five-A and one hundred eighty-five-B; and twenty-five per centum in the case of articles enumerated in section one hundred eighty-six and one hundred eighty-six-B. The tax imposed in this section shall not apply to articles to be used by the importer himself in the manufacture or preparation of articles subject to specific tax: provided, however, That where the 'National Economic Development Authority certifies to the availability of local raw materials of sufficient quantity, comparable quality and price to meet the needs of manufacturers subject to specific tax, importation of such raw materials by said manufacturers for use in their manufacture shall be subject to the tax herein imposed.

"The tax herein imposed shall be collected in all cases where the original importer sold, transferred, or negotiated the imported articles to third persons before release thereof from customs custody, regardless of the tax status of the original importer and the indorsee or transferee, the same to be paid by the transferee and/or indorsee.

"The provisions of this Act shall not be construed as nullifying whatever interpretation the government has given to the word 'importer' heretofore.

In the case of tax-free articles brought or imported into the Philippines by persons, entities or agencies exempt from the tax which subsequently sold, transferred, or exchanged in the Philippines to non-exempt private persons or entities, the purchasers shall be considered the importers thereof. The tax due on such articles shall constitute a lien on the articles itself superior to all other charges or liens, irrespective of the possessor thereof.

"Any percentage tax paid under Sections 184, 184-A, 185-A, 185-B, 186 and 186-B on domestically manufactured or on imported raw materials used in the manufacture of finished products exported shall be allowed to be credited against other liabilities of the manufacturer-exporter: Provided, however, That said percentage taxes paid are indicated as a separate item in the invoices."

SEC. 2. All taxes payable or paid under Section 183(b) of the National Internal Revenue Code as amended by Presidential Decree No. 750 shall be recomputed and redetermined in accordance with the provisions of this Decree.

SEC. 3. This Decree shall take effect immediately.

Done in the City of Manila, this 19th day of March, in the year of Our Lord, nineteen hundred and seventy-six.