Page:United States Statutes at Large Volume 61 Part 3.djvu/334

 July 4, 1946 PHILIPPINES-TRADE-- 1946 Oct.22, 1946 61 STAT.] (a) Collected or paid in an amount in excess of the internal tax imposed with respect to like articles which are the product of the United States, or collected or paid in any amount if the internal tax is not imposed with respect to such like articles; (b) Collected or paid in an amount in excess of the internal tax imposed with respect to like articles which are the product of any other foreign country, or collected or paid in any amount if the internal tax is not imposed with respect to such like articles. Where an internal tax is imposed with respect to an article which is the product of a foreign country to compensate for an internal tax imposed (1) with respect to a like article which is the product of the United States, or (2) with respect to materials used in the production of a like article which is the product of the United States, if the amount of the internal tax which is collected and paid with respect to the article which is the product of the Philippines is not in excess of that permitted by Paragraph 2 (b) of Article IV such collection and pay- ment shall not be regarded as in violation of the first sentence of this Paragraph. This Paragraph shall not apply to the taxes imposed under Sections 2306, 2327, or 2356 of the Internal Revenue Code of the United States which are set forth in part as Annexes IV, V, and VI to this Agreement. 3. No export tax shall be imposed or collected by the United States on articles exported to the Philippines, or by the Philippines on articles exported to the United States. 4. No processing tax or other internal tax shall be imposed or col- lected in the United States or in the Philippines with respect to articles coming into such country for the official use of the Government of the Philippines or of the United States, respectively, or any depart- ment or agency thereof. 5. No processing tax or other internal tax shall be imposed or col- lected in the United States with respect to Manila (abaca) fiber not dressed or manufactured in any manner. 6. The United States will not reduce the preference of two cents per pound provided in Section 2470 of the Internal Revenue Code of the United States (relating to processing taxes on coconut oil, etc.), which is set forth as Annex VII to this Agreement, with respect to articles "wholly the production of the Philippine Islands" or articles "produced wholly from materials the growth or production of the Philippine Islands"; except that it may suspend the provisions of Subsection (a) (2) of such Section during any period as to which the President of the United States, after consultation with the President of the Philippines, finds that adequate supplies of neither copra nor coconut oil, the product of the Philippines, are readily available for processing in the United States. ARTICLE V The value of Philippine currency in relation to the United States dollar shall not be changed, the convertibility of Philippine pesos into the United States dollars shall not be suspended, and no restric- Internal tax on arti- cles of foreign country, Nonapplicability. Post, pp. 2626 -2628. Nonimposition of export tax. Nonimposition of internal tax on articles for use of Govern- ment. Manila fiber. Post, p. 2633. Nonreduction of preference on coconut oil, etc. Post, p. 2628. Value of Philippine currency, etc. Post, p. 2633. 2617

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