Customs Modernization and Tariff Act
Customs Modernization and Tariff Act
Customs Modernization and Tariff Act
TITLE I
PRELIMINARY PROVISIONS
CHAPTER 1
SHORT TITLE
SECTION 100. Short Title. This Act shall be known as the "Customs
Modernization and Tariff Act (CMTA)".
CHAPTER 2
Sec. 101. Declaration of Policy. It is hereby declared the policy of the State to
protect and enhance government revenue, institute fair and transparent
customs and tariff management that will efficiently facilitate international trade,
prevent and curtail any form of customs fraud and illegal acts, and modernize
customs and tariff administration. Towards this end, the State
shall:ChanRoblesVirtualawlibrary
(b) Adopt clear and transparent customs rules, regulations, policies and
procedures, consistent with international standards and customs best
practices;cralawlawlibrary
(e) Provide a fair and expeditious administrative and judicial appellate remedy
for customs related grievances and matters;cralawlawlibrary
(c) Admission refers to the act of bringing imported goods directly or through
transit into a free zone;cralawlawlibrary
(d) Airway Bill (AWB) refers to a transport document for airfreight used by airlines
and international freight forwarders which specify the holder or consignee of the
bill who has the right to claim delivery of the goods when they arrive at the port
of destination. It is a contract of carriage that includes carrier conditions, such as
limits of liability and claims procedures. In addition, it contains transport
instructions to airlines and carriers, a description of the goods, and applicable
transportation charges;cralawlawlibrary
(f) Assessment refers to the process of determining the amount of duties and
taxes and other charges due on imported and exported goods;cralawlawlibrary
(h) Bill of Lading (B/L) refers to a transport document issued by shipping lines,
carriers and international freight forwarders or non-vessel operating common
carrier for water-borne freight. The holder or consignee of the bill has the right to
claim delivery of the goods at the port of destination. It is a contract of carriage
that includes earner conditions, such as limits of liability and claims procedures.
In addition, it contains transport instructions to shipping lines and carriers, a
description of the goods, and applicable transportation
charges;cralawlawlibrary
(m) Conditional Importation refers to the customs procedure known under the
RKC as temporary admission in which certain goods can be brought into a
customs territory conditionally relieved, totally or partially, from payment of
import duties and taxes; such goods must be imported for a specific purpose
and must be intended for reexportation within a specified period and without
having undergone any substantial change except due to normal
depreciation;cralawlawlibrary
(n) Customs Broker refers to any person who is a bona fide holder of a valid
Certificate of Registration/Professional Identification Card issued by the
Professional Regulatory Board and Professional Regulation Commission pursuant
to Republic Act No. 9280, as amended, otherwise known as the "Customs
Brokers Act of 2004";cralawlawlibrary
(o) Customs Office refers to any customs administrative unit that is competent
and authorized to perform all or any of the functions enumerated under
customs and tariff laws;cralawlawlibrary
(q) Customs Territory refers to areas in the Philippines where customs and tariff
laws may be enforced;cralawlawlibrary
(r) Entry refers to the act, documentation and process of bringing imported
goods into the customs territory, including goods coming from free
zones;cralawlawlibrary
(s) Exportation refers to the act, documentation, and process of bringing goods
out of Philippine territory;cralawlawlibrary
(u) Flexible Clause refer to the power of the President upon recommendation of
the National Economic and Development Authority (NEDA): (1) to increase,
reduce or remove existing protective tariff rates of import duty, but in no case
shall be higher than one hundred percent (100%) ad valorem; (2) to establish
import quota or to ban importation of any commodity as may be necessary;
and (3) to impose additional duty on all import not exceeding ten percent (10%)
ad valorem, whenever necessary;cralawlawlibrary
(w) Free Zone refers to special economic zones registered with the Philippine
Economic Zone Authority (PEZA) under Republic Act No. 7916, as amended,
duly chartered or legislated special economic zones and freeports such as Clark
Freeport Zone; Poro Point Freeport Zone; John Hay Special Economic Zone and
Subic Bay Freeport Zone under Republic Act No. 7227, as amended by Republic
Act No. 9400; the Aurora Special Economic Zone under Republic Act No. 9490,
as amended; the Cagayan Special Economic Zone and Freeport under
Republic Act No. 7922; the Zamboanga City Special Economic Zone under
Republic Act No. 7903; the Freeport Area of Bataan under Republic Act No.
9728; and such other freeports as established or may be created by
law;cralawlawlibrary
(x) Goods refer to articles, wares, merchandise and any other items which are
subject of importation or exportation;cralawlawlibrary
(z) Importation refers to the act of bringing in of goods from a foreign territory
into Philippine territory, whether for consumption, warehousing, or admission as
defined in this Act;cralawlawlibrary
(aa) Freight Forwarder refers to a local entity that acts as a cargo intermediary
and facilitates transport of goods on behalf of its client without assuming the role
of a carrier, which can also perform other forwarding services, such as booking
cargo space, negotiating freight rates, preparing documents, advancing freight
payments, providing packing/crating, trucking and warehousing, engaging as
an agent/representative of a foreign non-vessel operating as a common
carrier/cargo consolidator named in a master bill of lading as consignee of a
consolidated shipment, and other related undertakings;cralawlawlibrary
(cc) Jurisdictional Control refers to the power and rights of the Bureau in
exercising supervision and police authority over all seas within the jurisdiction of
the Philippine territory and over all coasts, ports, airports, harbors, bays, rivers
and inland waters whether navigable or not from the sea;cralawlawlibrary
(ff) Outright Smuggling refers to an act of importing goods into the country
without complete customs prescribed importation documents, or without being
cleared by customs or other regulatory government agencies, for the purpose
of evading payment of prescribed taxes, duties and other government
charges;cralawlawlibrary
(gg) Perishable Good refers to goods liable to perish or goods that depreciate
greatly in value while stored or which cannot be kept without great
disproportionate expense, which may be proceeded to, advertised and sold at
auction upon notice if deemed reasonable;cralawlawlibrary
(hh) Port of Entry refers to a domestic port open to both domestic and
international trade, including principal ports of entry and subports of entry. A
principal port of entry is the chief port of entry of the Customs District wherein it is
situated and is the permanent station of the District Collector of such
port. Subports of entry are under the administrative jurisdiction of the District
Collector of the principal port of entry of the Customs District. Port of entry as
used in this Act shall include airport of entry;cralawlawlibrary
(ii) Port of Discharge, also called Port of Unloading, refers to a place where a
vessel, ship, aircraft or train unloads its shipments, from where they will be
dispatched to their respective consignees;cralawlawlibrary
(kk) Release of Goods refers to the action by the Bureau to permit goods
undergoing clearance to be placed at the disposal of the party
concerned;cralawlawlibrary
(ll) Refund refers to the return, in whole or in part, of duties and taxes paid on
goods;cralawlawlibrary
(mm) Security refers to any form of guaranty, such as a surety bond, cash bond,
standby letter of credit or irrevocable letter of credit, which ensures the
satisfaction of an obligation to the Bureau;cralawlawlibrary
(nn) Smuggling refers to the fraudulent act of importing any goods into the
Philippines, or the act of assisting in receiving, concealing, buying, selling,
disposing or transporting such goods, with full knowledge that the same has
been fraudulently imported, or the fraudulent exportation of goods. Goods
referred to under this definition shall be known as smuggled
goods;cralawlawlibrary
(oo) Taxes refer to all taxes, fees and charges imposed under this Act and the
National Internal Revenue Code (NIRC) of 1997, as amended, and collected by
the Bureau;cralawlawlibrary
(pp) Technical Smuggling refers to the act of importing goods into the country
by means of fraudulent, falsified or erroneous declaration of the goods to its
nature, kind, quality, quantity or weight, for the purpose of reducing or avoiding
payment of prescribed taxes, duties and other charges;cralawlawlibrary
(qq) Tentative Release refers to a case where the assessment is disputed and
pending review, an importer may put up a cash bond equivalent to the duties
and taxes due on goods before the importer can obtain the release of said
goods;cralawlawlibrary
(rr) Transit refers to the customs procedure under which goods, in its original
form, are transported under customs control from one customs office to
another, or to a free zone;cralawlawlibrary
(ss) Transshipment refers to the customs procedure under which goods are
transferred under customs control from the importing means of transport to the
exporting means of transport within the area of one customs office, which is the
office of both importation and exportation;cralawlawlibrary
(tt) Traveler refers to any person who temporarily enters the territory of a country
in which he or she does not normally resides (non-resident), or who leaves that
territory, and any person who leaves the territory of a country in which he or she
normally resides (departing resident) or who returns to that territory (returning
resident); and
(uu) Third Party refers to any person who deals directly with the Bureau, for and
on behalf of another person, relating to the importation, exportation, movement
or storage of goods.
(a) The duties, taxes and other charges due upon the goods have been paid or
secured to be paid, at the port of entry unless the goods are free from duties,
taxes and other charges and legal permit for withdrawal has been granted: or
(b) In case the goods are deemed free of duties, taxes and other charges, the
goods have legally left the jurisdiction of the Bureau.
Sec. 104. When Duty and Tax are Due on Imported Goods. Except as otherwise
provided for in this Act or in other laws, all goods, when imported into the
Philippines, shall be subject to duty upon importation, including goods previously
exported from the Philippines.
Unpaid duties, taxes and other charges, shall incur legal interest of twenty
percent (20%) per annum computed from the date of final assessment under
Section 429 of this Act, when payment becomes due and demandable. The
legal interest shall likewise accrue on any fine or penalty imposed.
Upon payment of the duties, taxes and other charges, the Bureau shall issue the
necessary receipt or document as proof of such payment.
Sec. 105. Effective Date of Rate of Import Duty. Imported goods shall be
subject to the import duty rates under the applicable tariff heading that are
effective at the date of importation or upon withdrawal from the warehouse for
consumption. In case of withdrawal from free zones for introduction to the
customs territory, the duty rate at the time of withdrawal shall be applicable on
the goods originally admitted, whether withdrawn in its original or advanced
form.
In case of goods sold at customs public auction, the duty rates at the date of
the auction, shall apply for purposes of implementing Section 1143(a) of this Act.
Sec. 106. Declarant. A declarant may be a consignee or a person who has the
right to dispose of the goods. The declarant shall lodge a goods declaration
with the Bureau and may be:ChanRoblesVirtualawlibrary
(b) The exporter, being the owner of the goods to be shipped out; or
(c) A customs broker acting under the authority of the importer or from a holder
of the bill; or
In case the consignee or the person who has the right to dispose of the goods is
a juridical person, it may authorize a responsible officer of the company to sign
the goods declaration as declarant on its behalf.
The goods declaration submitted to the Bureau shall be processed by the
declarant or by a licensed customs broker: Provided, That for importations, a
transition period of two (2) years from the effectivity of this Act is hereby
provided during which subparagraph (d) of this section shall not be
implemented by the Bureau: Provided, further, That after two (2) years from the
effectivity of this Act, subparagraph (d) of this section shall take into effect
consistent with international standards and customs best practices.
Sec. 107. Rights and Responsibilities of the Declarant. The declarant shall be
responsible for the accuracy of the goods declaration and for the payment of
all duties, taxes and other charges due on the imported goods. The licensed
customs broker shall likewise be responsible for the accuracy of the goods
declaration but shall not be responsible for the payment of duties, taxes and
other charges due on the imported goods.
The declarant shall sign the goods declaration, even when assisted by a
licensed customs broker, who shall likewise sign the goods declaration.
Sec. 108. Penalties for Errors in Goods Declaration. The Bureau shall not impose
substantial penalties for errors when such errors are inadvertent and there was
no fraudulent intent or gross negligence in the commission
thereof: Provided, That in order to discourage repetition of such errors, a penalty
may be imposed but shall not be excessive.
The Bureau shall communicate, exchange and process trade- and logistics-
related information in the national and regional level for the efficient and
prompt clearance of goods and commodities in a technology-neutral and
secured infrastructure for business, industries, and government.
The Bureau shall likewise include as part of its systems and processes, a disaster
preparedness and recovery plan to ensure business continuity by maintaining its
uptime goal for its electronic and online services.
For purposes of customs procedures, electronic documents, permits, licenses or
certificates shall be acceptable and shall have the legal effect, validity or
enforceability as any other document or legal writing: Provided, That when the
prescribed requirements are duly complied with, the Bureau
shall:ChanRoblesVirtualawlibrary
(c) Require and/or accept payments and issue receipts acknowledging such
payments through systems using electronic data messages or electronic
documents.
Sec. 110. Relationship Between the Bureau and Third Parties. Parties may
transact business with the Bureau either directly or through a designated third
party to act on their behalf.
The customs transactions directly transacted by a party shall not be treated less
favorably or be subject to more stringent requirements than those transacted
through a designated third party.
A designated third party shall have the same rights and obligations as the
designating party when transacting business with the Bureau.
To foster an informed compliance regime, the Bureau shall ensure that all
relevant and available information of general application pertaining to customs
operations and procedures which are not confidential or intended for the
Bureau's internal use only, shall be readily accessible to any interested person.
Any new information, amendment or changes in customs law, administrative
procedures or requirements, shall, as far as practicable, be made readily
available prior to its effective date of implementation unless advance notice is
precluded.
The Bureau may require the payment of a reasonable fee in providing such
information. The requested information shall be release d within reasonable time
from the filing of the request and payment of the required fee.
Sec. 113. Decision and Ruling. The Bureau shall, consistent with Section 1502 of
this Act, issue binding and advance decision and ruling at the request of an
interested party on matters pertaining to importation or exportation of goods.
Upon written request of the interested party, the Bureau shall notify the party of
its decision in writing within the period specified in this Act or by regulation.
Should the decision be adverse to the requesting interested party, the reasons
thereof shall be indicated and the party shall be advised of the party's right of
appeal.
The ruling and decision shall be issued by the Bureau within thirty (30) days from
the submission of the necessary documents and information.
Sec. 114. Right of Appeal, Forms and Ground. Any party adversely affected by
a decision or omission of the Bureau pertaining to an importation, exportation, or
any other legal claim shall have the right to appeal within fifteen (15) days from
receipt of the questioned decision or order.
An appeal in writing shall be filed within the period prescribed in this Act or by
regulation and shall specify the grounds thereof.
The Bureau may allow a reasonable time for the submission of supporting
evidence to the appeal.
CHAPTER 3
TYPES OF IMPORTATION
Sec. 116. Free Importation and Exportation. Unless otherwise provided by law
or regulation, all goods may be freely imported into and exported from the
Philippines without need for import and export permits, clearances or licenses.
Sec. 117. Regulated Importation and Exportation. Goods which are subject to
regulation shall be imported or exported only after securing the necessary
goods declaration or export declaration, clearances, licenses, and any other
requirements, prior to importation or exportation. In case of importation,
submission of requirements after arrival of the goods but prior to release from
customs custody shall be allowed but only in cases provided for by governing
laws or regulations.
(a) Written or printed goods in any form containing any matter advocating or
inciting treason, rebellion, insurrection, sedition against the government of the
Philippines, or forcible resistance to any law of the Philippines, or written or
printed goods containing any threat to take the life of, or inflict bodily harm up
on any person in the Philippines;cralawlawlibrary
(d) Any goods manufactured in whole or in part of gold, silver or other precious
metals or alloys and the stamp, brand or mark does not indicate the actual
fineness of quality of the metals or alloys;cralawlawlibrary
(f) Infringing goods as defined under the Intellectual Property Code and related
laws; and
(g) All otter goods or parts thereof which importation and exportation are
explicitly prohibited by law or rules and regulations issued by the competent
authority.
(b) Roulette wheels, gambling outfits, loaded dice, marked cards, machines,
apparatus or mechanical devices used in gambling or the distribution of money,
cigars, cigarettes or other goods when such distribution is dependent on
chance, including jackpot and pinball machines or similar contrivances, or parts
thereof; (c) Lottery and sweepstakes tickets, except advertisements thereof and
lists of drawings therein;cralawlawlibrary
(f) Any other goods whose importation and exportation are restricted.
The restriction to import or export the above stated goods shall include the
restriction on their transit.
CHAPTER 4
RELIEF CONSIGNMENT
Sec. 120. Relief Consignment. Goods such as food, medicine, equipment and
materials for shelter, donated or leased to government institutions and
accredited private entities for free distribution to or use of victims of calamities
shall be treated and entered as relief consignment.
(b) Lodging, registering and checking of the goods declaration and supporting
documents prior to the arrival of the goods, and their release upon
arrival;cralawlawlibrary
(c) Clearance beyond the designated hours of business or away from customs
offices and waiver of any corresponding charges; and
The Department of Finance (DOF) and the Department of Social Welfare and
Development (DSWD) shall jointly issue the rules and regulations for the
implementation of tins provision.
Sec. 121. Duty and Tax Treatment. Relief consignment, as defined in Section
120, imported during a state of calamity and intended for a specific calamity
area for the use of the calamity victims therein, shall be exempt from duties and
taxes.
TITLE II
BUREAU OF CUSTOMS
CHAPTER 1
GENERAL ADMINISTRATION
Sec. 200. Chief Officials of the Bureau. The Bureau shall be headed by a
Commissioner and shall be assisted by at least four (4) but not more than six (6)
Deputy Commissioners.
The Deputy Commissioners shall also be appointed by the President and at least
majority of whom shall come from the ranks of the Bureau.
Sec. 201. Powers and Functions of the Commissioner. The Commissioner shall
have the following powers and functions:ChanRoblesVirtualawlibrary
(a) Exclusive and original jurisdiction, to interpret the provisions of this Act, in
collaboration with other relevant government agencies, subject to review by
the Secretary of Finance;cralawlawlibrary
(c) Review any action or decision of any customs officer performed pursuant to
the provisions of this Act;cralawlawlibrary
(d) Review and decide disputed assessments and other matters related thereto,
subject to review by the Secretary of Finance and exclusive appellate
jurisdiction of the Court of Tax Appeals (CTA);cralawlawlibrary
(e) Delegate the powers vested under this Act to any customs officer with the
rank equivalent to division chief or higher, except for the following powers and
functions:ChanRoblesVirtualawlibrary
(g) Perform all other duties and functions as may be necessary for the effective
implementation of this Act and other customs related laws.
Sec. 202. Functions of the Bureau. The Bureau shall exercise the following duties
and functions:ChanRoblesVirtualawlibrary
(a) Assessment and collection of customs revenues from imported goods and
other dues, fees, charges, fines and penalties accruing under this
Act;cralawlawlibrary
(f) Supervision and control over the entrance and clearance of vessels and
aircraft engaged in foreign commerce;cralawlawlibrary
(g) Supervision and control over the handling of foreign mails arriving in the
Philippines for the purpose of collecting revenues and preventing the entry of
contraband;cralawlawlibrary
(h) Supervision and control on all import and export cargoes, landed or stored in
piers, airports, terminal facilities, including container yards and freight stations for
the protection of government revenue and prevention of entry of
contraband;cralawlawlibrary
(i) Conduct a compensation study with the end view of developing and
recommending to the President a competitive compensation and remuneration
system to attract and retain highly qualified personnel, while ensuring that the
Bureau remains financially sound and sustainable;cralawlawlibrary
(j) Exercise of exclusive original jurisdiction over forfeiture cases under this Act;
and
(k) Enforcement of this Act and all other laws, rules and regulations related to
customs administration.
Sec. 203. Annual Report of the Commissioner. The Commissioner shall submit to
the President, the Congress of the Philippines and the NEDA an annual report on
the performance of the Bureau, on or before March 31 of the following year.
Upon request, the Tariff Commission shall have access to, and the right to be
furnished with copies of liquidated goods declaration and other documents
supporting the goods declaration as finally filed in the Commission on Audit
(COA).
For this purpose, the Bureau shall maintain electronic records of goods
declaration and other documents supporting the declaration.
CHAPTER 2
Sec. 206. Customs Districts. For administrative purposes, the Philippines shall be
divided into as many Customs Districts as necessary, the respective limits of
which may be changed from time to time by the Commissioner, with the
approval of the Secretary of Finance.
Each Customs District shall be supervised by one (1) District Collector, assisted by
as many Deputy District Collectors as may be necessary. The choice of the
location of a District Office, its business hours and the staffing pattern thereof,
shall be based on the particular requirements of each district.
Sec. 207. Ports of Entry. All ports of entry shall be under the supervision and
control of a Customs District. A District Collector shall be assigned in the
principal ports of entry while a Deputy District Collector may be assigned to
other types of ports of entry.
The principal ports of entry shall be located in Aparri, San Fernando, Manila,
Manila International Container Port, Ninoy Aquino International Airport, Subic,
Clark, Batangas, Legaspi, Iloilo, Cebu, Tacloban, Surigao, Cagayan de Oro,
Zamboanga, Davao, Limay and such other ports that may be created pursuant
to this Act.
For the effective enforcement of the Bureau's functions and without hampering
business and commercial operations of the ports, sea ports and airport
authorities and private ports and airport operators shall provide suitable areas
for examination and for other customs equipment free of charge within, a
definite period of time, as agreed with private port and airport operations, if
any.
Sec. 208. Power of the President to Open and Close Any Port. Upon the
recommendation of the Secretary of Finance, the President may open or close
any port of entry. Upon closure of a port of entry, the existing personnel shall he
reassigned by the Commissioner, subject to the approval of the Secretary of
Finance,
Sec. 209. Assignment of Customs Officers and Employees to Other Duties. The
Commissioner, with the approval of the Secretary of Finance, may assign any
employee of the Bureau to any port, service, division or office of the Bureau
within the Bureau's staffing pattern or organizational structure, or may assign any
employee other duties: Provided, That such assignment shall not affect the
employee's tenure of office nor result in a change of status, demotion in rank
and/or salary deduction.
Sec. 210. Duties of the District Collector. The District Collector shall have the
following duties in their assigned Customs District:ChanRoblesVirtualawlibrary
(3) Ensure legal compliance of regulated goods and facilitate the flow of
legitimate trade;cralawlawlibrary
(5) Assess and collect duties, taxes and other charges on imported
goods;cralawlawlibrary
(8) Perform other necessary duties that may be assigned by the Commissioner
for the effective implementation of this Act.
Subject to the supervision and control of the District Collector, the duties and
functions of the District Collector may be delegated to the Deputy District
Collector. The Deputy District Collector assigned to a sub-port shall be under the
supervision and control of the District Collector of the corresponding principal
port.
Sec. 211. Temporary Succession of Deputy District Collector to Position of Acting
District Collector. In the absence or disability of a District Collector or, in case
of vacancy, the Deputy District Collector shall temporarily discharge the duties
of the District Collector. Should there be no Deputy District Collector, the District
Collector shall designate, in writing, a senior ranking customs officer to
temporarily perform the duties of the District Collector. In case there are two (2)
or more senior ranking customs officers with equal length of service, a drawing
of lots shall be undertaken. The District Collector shall report the designation to
the Commissioner within twenty-four (24) hours after the designation.
If required, the District Collector shall affix the official dry seal of the Bureau on all
documents and records requiring authentication.
Sec. 213. Reports of the District Collector to the Commissioner. The District
Collector shall report to the Commissioner any probable or initiated litigation
within the Customs District and shall submit regular monthly reports on all district
transactions.
CHAPTER 3
SBC. 214. Persons Exercising Police Authority. For the effective implementation
of this Act, the following persons are authorized to effect search, seizure, and
arrest:ChanRoblesVirtualawlibrary
(a) Officials of the Bureau, District Collectors, Deputy District Collectors, police
officers, agents, inspectors and guards of the Bureau;cralawlawlibrary
(b) Upon authorization of the Commissioner, officers and members of the Armed
Forces of the Philippines (AFP) and national law enforcement agencies; and
(c) Officials of the BIR on all cases falling within the regular performance of their
duties, when payment of internal revenue taxes is involved.
All officers authorized by the Commissioner to exercise police authority shall at
all times coordinate with the Commissioner.
For this purpose, mission orders shall clearly indicate the specific name carrying
out the mission and the tasks to be carried out.
All seizures pursuant to this section must be effected in accordance with the
provisions on the conduct of seizure proceedings provided for in Chapters 3 and
4 of Title XI of this Act.
Sec. 215. Place Where Authority May be Exercised. All persons exercising
police authority as described in the preceding section shall, only exercise
powers within customs premises as provided for in Section 303 of this Act, and
within the limits of the authority granted by the Commissioner.
Port and airport authorities in all ports of entry shall provide authorized customs
officers with unhampered access to all premises within their administrative
jurisdiction.
Sec. 216. Exercise of Power of Seizure. Any person exercising police authority
under this Act has the power and duty to seize any vessel, aircraft, cargo,
goods, animal or any other movable property when the same is subject to
forfeiture or when they are subject of a fine imposed under this Act.
Sec. 217. Duty of Officer to Disclose Official Character. For the proper exercise
of police authority, any authorized person shall disclose the nature of the
authority upon being questioned at the time of exercise thereof and shall exhibit
the corresponding written authority issued by the Commissioner.
Sec. 219. Authority to Enter Properties. Any person exercising police authority
may, at any time, enter, pass through, and search any land, enclosure,
warehouse, store, building or structure not principally used as a dwelling house.
When a security personnel or any other employee lives in the warehouse, store,
or any building, structure or enclosure that is used for storage of goods, it shall
not be considered as a dwelling house for purposes of this Act.
Such power to search includes removal of any false bottom, partition, bulkhead,
or any other obstruction for the purpose of uncovering any concealed dutiable
or forfeitable goods.
The proceeding herein authorized shall not give rise to any claim for damage
caused to the goods, vessel or aircraft, unless there is gross negligence or abuse
of authority in the exercise thereof.
Sec. 222. Authority to Search Vehicles, Other Carriers, Persons and Animals.
Upon reasonable cause, any person exercising police authority may open and
examine any box, trunk, envelope, or other container for purposes of
determining the presence of dutiable or prohibited goods. This authority includes
the search of receptacles used for the transport of human remains and dead
animals. Such authority likewise includes the power to stop, search, and
examine any vehicle or carrier, person or animal suspected of holding or
conveying dutiable or prohibited goods.
Sec. 223. Authority to Search Persons Arriving From Foreign Countries. Upon
reasonable cause, travelers arriving from foreign countries may be subjected to
search and detention by the customs officers. The dignity of the person under
search and detention shall be respected at all times. Female inspectors may be
employed for the examination and search of persons of their own sex.
Sec. 224. Power to Inspect and Visit. The Commissioner or any customs officer
who is authorized in writing by the Commissioner, may demand evidence of
payment of duties and taxes on imported goods openly for sale or kept in
storage. In the event that the interested party fails to produce such evidence
within fifteen (15) days, the goods may be seized and subjected to forfeiture
proceedings: Provided, That during the proceedings, the interested party shall
be given the opportunity to prove or show the source of the goods and the
payment of duties and taxes thereon: Provided, further, That when the warrant
of seizure has been issued but subsequent documents presented evidencing
proper payment are found to be authentic and in order, the District Collector
shall, within fifteen (15) days from the receipt of the motion to quash or recall the
warrant, cause the immediate release of the goods seized, subject to clearance
by the Commissioner: Provided, finally, That the release thereof shall not be
contrary to law.
TITLE III
CHAPTER 1
CUSTOMS JURISDICTION
Sec. 300. Customs Jurisdiction. For the effective implementation of this Act, the
Bureau shall exercise jurisdiction over all seas within Philippine territory and all
coasts, ports, airports, harbors, bays, rivers and inland waters whether navigable
or not from the sea and any means of conveyance.
The Bureau shall pursue imported goods subject to seizure during its transport by
land, water and air and shall exercise jurisdiction as may be necessary for the
effective enforcement of this Act. When a vessel or aircraft becomes subject to
seizure for violation of this Act, a pursuit of such vessel or aircraft which began
within the territorial waters or air space may continue beyond the same, and the
vessel or aircraft may be seized in the high seas or international air space.
CHAPTER 2
CUSTOMS CONTROL
Sec. 301. Customs Control Over Goods. All goods, including means of
transport, entering or leaving the customs territory, regardless of whether they
are liable to duties and taxes, shall be subject to customs control to ensure
compliance with this Act.
Sec. 303. Control Over Premises Used for Customs Purposes. The Bureau shall,
for customs purposes, have exclusive control, direction and management of
customs offices, facilities, warehouses, ports, airports, wharves, infrastructure and
other premises in the Customs Districts, in all cases without prejudice to the
general police powers of the local government units (LGUs), the Philippine Coast
Guard and of law enforcement agencies in the exercise of their respective
functions.
Sec. 306. Special Surveillance for the Protection of Customs Revenue and
Prevention of Smuggling. The Bureau shall conduct surveillance on vessels or
aircrafts entering Philippine territory and on imported goods entering the
customs office: Provided, That the function of the Philippine Coast Guard to
prevent and suppress the illegal entry of these goods, smuggling and other
forms of customs fraud and violations of maritime law and its proper surveillance
of vessels entering and/or leaving Philippine territory as provided in Republic Act
No. 9993, otherwise known as the "Philippine Coast Guard Law of 2009", shall
continue to be in force
Sec. 307. Temporary Storage of Goods. Subject to the rules and regulations to
be issued by the Secretary of Finance, the Commissioner shall establish a system
for temporary storage of imports prior to goods declaration in case of
abandoned or overstaying-goods.
TITLE IV
CHAPTER 1
GOODS DECLARATION
Sec. 400. Goods to be Imported through Customs Office. All goods imported
into the Philippines shall be entered through a customs office at a port of entry,
or may be admitted to or removed from a free zone as defined in this Act, as
the case may be.
Sec. 402. Goods Declaration for Consumption. All goods declaration for
consumption shall be cleared through a formal entry process except for the
following goods which shall be cleared through an informal entry
process:ChanRoblesVirtualawlibrary
(a) Goods of a commercial nature with Free on Board (FOB) or Free Carrier At
(FCA) value of less than fifty thousand pesos (P50,000.00). Every three (3) years
after the effectivity of this Act, the Secretary of Finance shall adjust this amount
as provided herein to its present value, using the Consumer Price Index (CPI) as
published by the PSA; and
(b) Personal and household effects or goods, not in commercial quantity,
imported in a passenger's baggage or mail.
The Commissioner may adjust the value of goods of commercial nature that
shall be cleared through an informal entry process without prejudice to the
periodic adjustment period in subparagraph (a) of this section.
Sec. 403. Provisional Goods Declaration. Where the declarant does not have
all the information or supporting documents required to complete the goods
declaration, the lodging of a provisional goods declaration may be
allowed: Provided, That it substantially contains the necessary information
required by the Bureau and the declarant undertakes to complete the
information or submit the supporting documents within forty-five (45) days from
the filing of the provisional goods declaration, which period may be extended
by the Bureau for another forty-five (45) days for valid reasons.
If the Bureau accepts a provisional goods declaration, the duty treatment of the
goods shall not be different from that of goods with complete declaration. 'I
Goods under a provisional goods declaration may be released upon posting of
any required security equivalent to the amount ascertained to be the
applicable duties and taxes.
Sec. 404. Owner of Imported Goods. All goods imported into the Philippines
shall be deemed to be the property of the consignee or the holder of the bill of
lading, airway bill or other equivalent transport document if duly endorsed by
the consignee therein, or, if consigned to order, duly endorsed by the consignor.
The underwriters of abandoned goods and the salvors of goods saved from
wreck at sea, coast, or in any area of the Philippines, may be regarded as the
consignees. Sec. 405. Liability of Importer for Duties and Taxes. Unless relieved
by laws or regulations, the liability for duties, taxes, fees, and other charges
attached to importation constitutes a personal debt due and demandable
against the importer in favor of the government and shall be discharged only
upon payment of duties, taxes, fees and other charges. It also constitutes alien
on the imported goods which may be enforced while such goods are under
customs' custody.
Sec. 407. Goods Declaration and Period of Filing. . As far as practicable, the
format of the goods declaration shall conform with international standards. The
data required in the goods declaration shall be limited to such particulars that
are deemed necessary for the assessment and collection of duties and taxes,
the compilation of statistics and compliance with this Act. The Bureau shall
require the electronic lodgement of the goods declaration.
The Bureau shall only require supporting documents necessary for customs
control to ensure that all requirements of the law have been complied with.
Translation of supporting documents shall not be required except when
necessary.
Goods declaration must be lodged within fifteen (15) days from the date of
discharge of the last package from the vessel or aircraft. The period to file the
goods declaration may, upon request, be extended on valid grounds for
another fifteen (15) days: Provided, That the request is made before the
expiration of the original period within which to file the goods
declaration: Provided, however, That the period of the lodgement of the goods
declaration maybe adjusted by the Commissioner.
Sec. 408. Lodgement and Amendment of Goods Declaration. The Bureau shall
permit the electronic lodgement of the goods declaration at any designated
customs office. The Bureau shall, for valid reason and under terms and
conditions provided by regulation, permit the declarant to amend the goods
declaration that has already been lodged: Provided, That the request to amend
the goods declaration, together with the intended amendments, must be
received prior to final assessment or examination of the goods.
Sec. 409. Advance Lodgement and Clearance. The Bureau may provide for
the lodgement and clearance of goods declaration and supporting documents
prior to the arrival of the goods under such terms and conditions as may be
provided by rules and regulations to be promulgated under this Act.
Sec. 410. Entry of Goods in Part for Consumption and in Part for Warehousing.
Goods declaration covered by one bill of lading or airway bill over goods which
are meant in part for consumption and in part for warehousing may be both
entered simultaneously for release at the port of entry.
Sec. 411. Contents of Goods Declaration. Goods declaration shall contain the
names of the consignee, importing vessel or aircraft port of departure, port of
destination and date of arrival, the number and marks of packages, or the
quantity, if in bulk, the nature and correct commodity description of the goods
contained therein, its value as set forth in a proper invoice, and such other
information as may be required by rules and regulations. Where the declarant
does not have all the information required to make the goods declaration, a
provisional or incomplete goods declaration shall, for certain cases and for
reasons deemed valid by the Bureau, be allowed to be lodged: Provided, That it
contains the particulars deemed necessary by the Bureau for the acceptance
of the entry filed and that the declarant undertakes to complete it within forty-
five (45) days from the filing of the provisional goods declaration in accordance
with Section 403 of this Act
(a) The invoice and goods declaration contain an accurate and faithful
account of the prices paid or payable for the goods and other adjustments to
the price actually paid or payable, and that nothing has been omitted
therefrom or concealed whereby the government of the Republic of the
Philippines might be defrauded of any part of the duties and taxes lawfully due
on the goods; and
(b) To the best of the declarant's information and belief, all the invoices and bills
of lading or airway bills relating to the goods are the only ones in existence
relating to the importation in question, and that these documents are in the
same state as when they were received by the declarant, and the declaration
thereon are in all respects genuine and true.
Sec. 413. Description of Goods. Under such terms and conditions prescribed
under the rules and regulations, the description of the goods in the goods
declaration must be sufficient and specific in detail to enable the goods to be
identified for customs valuation, statistical purposes, and classification to the
appropriate tariff heading and subheading in the currency of the invoice, and
in such other particulars necessary for the proper assessment and collection of
duties and taxes. The quantity and value of each of the several classes of goods
shall be separately declared according to their respective headings or
subheadings and the totals of each heading or subheading shall be duly shown.
(b) The adjustments to the price paid or to be paid as defined in Section 701(1)
of this Act, if not yet included in the invoice, as may be
applicable;cralawlawlibrary
(c) The names of the buyer, seller, and the time and place of
sale;cralawlawlibrary
(f) The quantities in the weights or measures of the goods shipped; and
(g) Any other fact deemed necessary for the proper examination, customs
valuation, and tariff classification of the goods as may be prescribed by rules
and regulations.
To the extent possible, the above requirements shall also apply to goods
imported but not covered by sale, such as goods on consignment or lease,
samples, or donations, covered by a consignment, pro forma invoice, or other
noncommercial invoice.
Sec. 415. Mode of Payment and Terms of Trade. Subject to existing laws and
rules on foreign currency exchange, the internationally accepted standards
and practices on the mode of payment or remittance covering import and
export transactions, including standards developed by international trading
bodies such as the International Chamber of Commerce (ICC) on trading terms
(incoterms) and on international letters of credit such as the Uniform Customs
and Practice for Documentary Credits (UCPDC), shall be recognized.
The owner of the vessel or aircraft may be permitted to export the remains of
the wreck upon proper examination and inspection. The remains of a wrecked
vessel shall include not only its hull and rigging, but also all sea stores, goods and
equipment, such as sails, ropes and chain anchors.
Sec. 418. Derelicts and Goods from Abandoned Wrecks. Derelicts and all
goods recovered from sea or from abandoned wrecks shall be under the
jurisdiction of the port where the goods arrive, and shall be retained in the
custody of the Bureau. If not claimed by the owner, underwriter or salvor, the
same shall be deemed as property of the government.
When such goods are brought into port by lighters or other craft, each vessel
shall submit a manifest of their respective cargo.
The customs officer nearest the scene of the wreck shall take charge of the
goods saved and shall give immediate notice to the District Collector or the
nearest customs office.
In order to prevent any attempt to commit fraud, the District Collector shall be
represented at the salvage of the cargo by customs officers who shall examine
and receive the inventory made on the cargo.
Derelicts and goods salvaged from foreign vessels or aircrafts recovered from
sea or wreck are prima faciedutiable and may be entered for consumption or
warehousing. If claimed to be of Philippine production, and consequently
conditionally duty-free, proof must be submitted as in ordinary cases of
reimportation of goods. Foreign goods landed from a vessel or aircraft in distress
is dutiable if sold or disposed of in the Philippines.
Before any goods taken from a recent wreck are admitted to the customs
territory, the same shall be appraised, and the owner or importer shall have the
same right to appeal as in ordinary importation.
CHAPTER 2
EXAMINATION OF GOODS
As a general rule, the Bureau may examine the goods in the presence of the
declarant or an authorized representative. Examination of the goods in the
absence of the declarant or authorized representative may be allowed in
exceptional circumstance and for valid and justifiable grounds, as may be
defined by regulations promulgated by the Secretary of Finance, upon
recommendation of the Commissioner. The Bureau may require the declarant
to be present or to be represented at the examination of the goods or to render
any assistance necessary to facilitate the examination.
The Bureau shall take samples of the goods only when needed to establish the
tariff description and value of goods declared, or to ensure compliance with this
Act. Samples drawn shall be as minimal as possible.
(d) There are issues and controversies surrounding the goods declaration and
the import clearance process; or
(e) The importer or declarant requests for the examination of the goods.
Sec. 421. Duties of Customs Officer Tasked to Examine the Imported Goods., In
the examination, classification, and valuation of the goods, the customs officer
shall:ChanRoblesVirtualawlibrary
(a) Determine whether the packages for examination and their contents are in
accordance with the goods declaration, invoice and other pertinent
documents;cralawlawlibrary
(b) Take samples of the imported goods for examination or laboratory analysis
when necessary;cralawlawlibrary
(c) Issue a receipt for a sample taken and retained during examination; and
(d) Report whether the goods have been correctly declared as to value,
quantity, measurement, weight, tariff classification and not imported contrary to
law.
Failure on the part of the customs officer to perform the above duties shall be
penalized according to Section 1431 of Title XIV of this Act.
Sec. 423. Determination of the De Minimis Value. No duties and taxes shall be
collected on goods with an FOB or FCA value often thousand pesos (P10,000.00)
or below. The Secretary of Finance shall adjust the de minimis value as provided
herein every three (3) years after the effectivity of this Act. The value herein
stated shall be adjusted to its present value using the CPI, as published by the
PSA.
Sec. 424. Duty of Customs Officer Tasked to Assess Imported Goods. For
purposes of assessing duties and taxes on imported goods, the customs officer
shall classify, value, and determine the duties and taxes to be paid. The customs
officer shall prepare and submit an assessment report as established under this
Act.
The District Collector may allow the release of the imported goods under
tentative assessment upon the posting of sufficient security to cover the
applicable duties and taxes equivalent to the amount that is disputed.
(1) Within one (1) year after payment of the duties, upon statement of error in
conformity with Section 912 of this Act, as approved by the District
Collector;cralawlawlibrary
(2) Within fifteen (15) days after such payment, upon request for reappraisal or
reclassification addressed to the Commissioner by the District Collector, if the
appraisal or classification is deemed to be low;cralawlawlibrary
(3) Upon request for reappraisal and/or reclassification, in the form of a timely
protest addressed to the District Collector by the interested party if the latter
should be dissatisfied with the appraisal or return; or
Sec. 428. Assessment of Duty on Less Than Entered Value. Duty shall not be
assessed in any case upon an amount less than the entered value, unless by
direction of the Commissioner in cases when the importer certifies at the time of
entry that the entered value is higher than the dutiable value and that the
goods are so entered in order to meet increases made by the appraiser in
similar cases then pending re-appraisement; and the lower assessment shall be
allowed only when the importer's contention is sustained by a final decision, and
shall appear that such action of the importer was taken in good faith after due
diligence and inquiry.
Sec. 429. Final Assessment. Assessment shall be deemed final fifteen (15) days
after receipt of the notice of assessment by the importer or consignee.
Sec. 430. Period of Limitation. In the absence of fraud and when the goods
have been finally assessed and released, the assessment shall be conclusive
upon all parties three (3) years from the date of final payment of duties and
taxes, or upon completion of the post clearance audit.
Sec. 431. Release of Goods after Payment of Duties and Taxes. Goods
declared shall be released when duties and taxes and other lawful charges
have been paid or secured and all the pertinent laws, rules and regulations
have been complied with.
Sec. 432. Release of Goods to the Holder of Bill of Lading or Airway Bill. Any
customs officer who releases goods to the consignee or lawful holder of the bill
of lading or airway bill shall not be liable for any defect or irregularity in its
negotiation unless the customs officer has notice of the defect or irregularity.
Sec. 433. Release of Goods Without Production, of Bill of Lading or Airway Bill.
No customs officer shall release goods to any person without the submission of
the bill of lading or airway bill covering the goods, except on written order of the
carrier or agent of the vessel or aircraft, in which case neither the government
nor the customs officer shall be held liable for any damage arising from wrongful
release of the goods: Provided, That when the release of goods is made against
such written order, the customs officer shall require the submission of a copy of
the bill.
Sec. 434. Release of Goods Upon Order of Importer. An importer may issue a
written authorization for the release of goods stored in a bonded warehouse to
another person. Such authorization shall not relieve the importer from liability for
the duties, taxes and other charges due on the goods unless the person to
whom the release was authorized assumes such liability.
Sec. 435. Withholding Release Pending Satisfaction of Lien. When the District
Collector is duly notified through a lawful order of a competent court of a Hen
for freight, lighterage or general average upon any imported goods, the District
Collector shall withhold the release of the goods unless the claim has been paid
or secured. In case of disagreement, the District Collector may release the
goods after payment of the freight and lighterage due on the quantity or
weight landed as actually determined.
Sec. 436. Fine or Surcharge on Goods. Goods subject to any fine or surcharge
shall be released only after the payment of the fine or surcharge.
CHAPTER 4
SPECIAL PROCEDURES
Sec. 437. Traveler and Passenger Baggage. The Bureau shall provide simplified
customs procedure for traveler and baggage processing based on international
agreements and customs best practices.
Sec. 438. Postal Item or Mail. Postal item or mail shall include letter-post and
parcels, as described in international practices and agreements, such as the
Acts of the Universal Postal Union (AUPU), currently in force.
When all the information required by the customs are available in the special
declaration form for postal items as provided in the AUPU or similar international
agreements, the special declaration form and supporting documents shall be
the goods declaration. However, a separate goods declaration shall be
required for the following:ChanRoblesVirtualawlibrary
(a) Goods whose value fall within the level that the Commissioner has
determined to be taxable and thus must be covered by a goods
declaration;cralawlawlibrary
(d) Imported goods under a customs procedure other than for consumption. '
Sec. 439. Express Shipment The Bureau shall provide simplified customs
procedures based on international standards and customs best practices for air
shipments considered as time-sensitive and requiring pre-arrival
clearance. Express shipments of accredited air express cargo operators may be
released prior to the payment of the duty, tax and other charges upon posting
of a sufficient security.
TITLE V
CHAPTER 1
Sec. 500. Export Declaration. All goods exported from the Philippines, whether
subject to export duty or not, shall be declared through a competent customs
office through an export declaration, duly signed electronically or otherwise by
the party making the declaration.
The description of the goods in the export declaration must contain sufficient
and specific information for statistical purposes as well as for the proper
valuation and classification of the goods.
Sec. 502. Lodgement and Processing of Export Declaration. The Bureau shall
promulgate rules and regulations to allow manual and electronic lodgement
and processing of the export declaration.
Sec. 503. Rules of Origin.. Pursuant to the applicable rules of origin, the Bureau
or any other designated government agency may determine the origin of
goods for export and, if appropriate, issue the corresponding certificates of
origin. However, the exporter may adopt a self-certification
system: Provided, That it is duly accredited by the Bure au or any other
authorized government agencies.
TITLE VI
CHAPTER 1
CUSTOMS TRANSIT
Sec. 600. Customs Transit in the Customs Territory. Customs transit within the
customs territory shall be allowed for goods except those intended for
consumption, to be transported as follows:ChanRoblesVirtualawlibrary
(a) From port of entry to another port of entry as exit point for outright
exportation;cralawlawlibrary
(c) From inland customs office to a port of entry as exit point for outright
exportation; and
(d) From one port of entry or inland customs office to another port of entry or
inland customs office.
A transit permit is required for goods transported under customs transit. However,
transfer of goods in customs transit from one means of transport to another shall
be allowed: Provided, That any customs seal or fastening is not broken or
tampered.
The party responsible for the compliance of the obligations imposed on customs
transit shall ensure that the goods are presented intact and in due course at the
customs office of destination. Failure to comply with the aforementioned
obligations or like-wise failure to follow a prescribed itinerary or period for
delivery of the goods may immediately subject the goods to the corresponding
duties, taxes and other applicable fines, penalties, and surcharges.
SBC. 601. Duty and Tax on Goods Intended for Transit. Transit goods admitted
for storage in a customs bonded warehouse, or for outright exportation at the
port of destination or inland customs office, and goods intended for transit
covered by Republic Act No. 10668, otherwise known as "An Act Allowing
Foreign Vessels to Transport and Co-Load Foreign Cargoes for Domestic
Transshipment and for Other Purposes", shall not be subject to the payment of
duties and taxes at the port of entry: Provided, That any conditions and security
required by the Bureau are complied with.
Goods for consumption and other goods intended for customs transit not
covered by the immediately preceding paragraph shall be subject to the
payment of duties and taxes at the port of discharge.
Sec. 602. Carrier's Security. Carriers that transport imported goods that shall be
placed under customs transit from a port of entry to other ports, shall post a
general transportation security amounting to at least fifty thousand pesos
(P50,000.00). Such security shall ensure the complete and immediate delivery of
goods to the customs officer at the port of destination and the payment of
pertinent customs charges and expenses and other transfer costs. The amount
of the security may be adjusted by the Commissioner, upon approval of the
Secretary of Finance.
CHAPTER 2
CUSTOMS TRANSSHIPMENT
Sec. 603. Customs Transshipment. Goods admitted for transshipment shall not
be subject to the payment of duties and taxes: Provided, That the goods
declaration for customs transshipment particularly indicates such nature of the
goods, duly supported by commercial or transport documents or evidence as
required by the Bureau.
Goods for transshipment must be exported from the Philippines within thirty (30)
days from arrival thereof. The Commissioner may allow an extension of such
period after the establishment of valid reasons.
Unless it shall appear in the bill of lading, airway bill, invoice, manifest, or other
satisfactory evidence, that goods arriving in the Philippines are destined for
transshipment, no exportation thereof will be permitted except under entry for
immediate reexportation under sufficient security in an amount equal to the
ascertained duties, taxes and other charges.
Upon the reexportation of the goods, and the production of proof of landing
beyond the limits of the Philippines, the security shall be released.
TITLE VII
CHAPTER 1
BASIS OF VALUATION
Where the customs value cannot be determined under the provisions of Section
701 of this Act, it is to be determined by proceeding sequentially through the
succeeding sections hereof to the first such section under which the customs
value can be determined. Except as provided in Section 704 of this Act, it is only
when the customs value cannot be determined under the provisions of a
particular section that the provisions of the next section in the sequence can be
used.
If the importer does not request that the order of Sections 704 and 705 of this Act
be reversed, the normal order of the sequence is to be followed. If the importer
so requests but it is impossible to determine the customs value under Section 705
of this Act, the customs value shall be determined under Section 704.
When the customs value cannot be determined under Sections 701 through 705,
it may be determined under Section 706 of this Act.
Sec. 701, Transaction Value System Method One. The transaction value shall
be the price actually paid or payable for the goods when sold for export to the
Philippines adjusted in accordance with the provisions of tins
section: Provided, That:ChanRoblesVirtualawlibrary
(a) There are no restrictions as to the disposition or use of the goods by the buyer
other than restrictions which:ChanRoblesVirtualawlibrary
(ii) Limit the geographical area in which the goods may be resold; or
(b) The sale or price is not subject to some condition or consideration for which a
value cannot be determined with respect to the goods being valued; and
(c) The buyer and the seller are not related, or where the buyer and the seller
are related, that the transaction value is acceptable for customs purposes
under the provisions hereof.
(viii) They are members of the same family, including those related by affinity or
consanguinity up to the fourth civil degree.
Persons who are associated in business with one another in that one is the sole
agent, sole distributor or sole concessionaire, however described, of the other
shall be deemed to be related for the purposes of this Act if they fall within, any
of the eight (8) cases cited in the preceding paragraph.
(a) The transaction value in sales to unrelated buyers of identical or similar goods
for export to the same country of importation;cralawlawlibrary
(b) The customs value of identical or similar goods as determined under the
provisions of Section 704 of this Act; or
(c) The customs value of identical or similar goods are determined under the
provisions of Section 705 of this Act.
In determining the transaction value, the following shall be added to the price
actually paid or payable for the imported goods:ChanRoblesVirtualawlibrary
(1) To the extent that they are incurred by the buyer but are not included in the
price actually paid or payable for the imported
goods:ChanRoblesVirtualawlibrary
(e) Amount of royalties and license fees related to the goods being valued that
the buyer must pay either directly or indirectly, as a condition of sale of the
goods to the buyer.
(2) Value of any part of the proceeds of any subsequent resale, disposal or use
of the imported goods that accrues directly or indirectly to the
seller;cralawlawlibrary
(3) Cost of transport of the imported goods from the port of exportation to the
port of entry in the Philippines;cralawlawlibrary
(4) Loading, unloading and handling charges associated with the transport of
the imported goods from, the country of exportation to the port of entry in the
Philippines; and
All additions to the price actually paid or payable shall be made only on the
basis of objective and quantifiable data.
Sec. 702. Transaction Value of Identical Goods Method Two. Where the
dutiable value cannot be determined under method one, the dutiable value
shall be the transaction value of identical goods sold for export to the Philippines
and exported at or about the same time as the goods being valued. For
purposes of this section, "Identical goods" refer to goods which are the same in
all respects, including physical characteristics, quality and reputation. Minor
differences in appearances shall not preclude goods otherwise conforming to
the definition from being regarded as identical.
If, in applying this section, more than one transaction value of identical goods
are found, the lowest value shall be used to determine the customs value.
Sec. 703. Transaction Value of Similar Goods - Method Three. Where the
dutiable value cannot be determined under the preceding method, the
dutiable value shall be the transaction value of similar goods sold for export to
the Philippines and exported at or about the same time as the goods being
valued. For purposes of this section, "Similar goods" refer to goods which,
although not alike in all respects, have like characteristics and similar
component materials which enable them to perform the same functions and to
be commercially interchangeable. The quality of the goods, its reputation and
the existence of a trademark shall be among the factors to be considered in
determining whether goods are similar.
If, in applying this section, more than one transaction value of identical goods
are found, the lowest such value shall be used to determine the customs value.
Sec. 704. Deductive Value Method Four. Where the dutiable value cannot
be determined under the preceding method, the dutiable value shall be the
deductive value unless otherwise requested by the importer as provided in
Section 700 hereof. The deductive value which shall be based on the unit price
at which the imported goods or identical or similar imported goods are sold in
the Philippines, in the same condition as when imported, in the greatest
aggregate quantity, at or about the time of the importation of the goods being
valued, to persons not related to the persons from whom they buy such goods,
subject to deductions for the following:ChanRoblesVirtualawlibrary
(1) Either the commissions usually paid or agreed to be paid or the additions
usually made for profit and general expenses in connection with sales in such
country of imported goods of the same class or kind;cralawlawlibrary
(2) The usual costs of transport and insurance and associated costs incurred
within the Philippines;cralawlawlibrary
(3) Where appropriate, the costs of: (i) transport of the imported goods from the
port of exportation to the port of entry in the Philippines; (ii) loading, unloading
and handling charges associated with the transport of the imported goods from
the country of exportation to the port of entry in the Philippines; and (iii)
insurance; and
(4) The customs duties and other national taxes payable in the Philippines by
reason of the importation or sale of the goods.
If neither the imported goods nor identical nor similar imported goods are sold at
or about the time of importation of the goods being valued in the Philippines in
the conditions they were imported, the customs value shall, subject to the
conditions set forth in the preceding paragraph, be based on the unit price at
which the imported goods or identical or similar imported goods sold in the
Philippines in the condition they were imported and at the earliest date after the
importation of the goods being valued, but before the expiration of ninety (90)
days after such importation.
If neither the imported goods nor identical nor similar imported goods are sold in
the Philippines in the condition as imported, then, if the importer so requests, the
dutiable value shall be based on the unit price at which the imported goods,
after further processing, are sold in the greatest aggregate quantity to persons in
the Philippines who are not related to the persons from whom they buy such
goods, subject to allowance for the value added by such processing and
deductions provided under subsections (1), (2), (3) and (4) hereof.
Sec. 705. Computed Value Method Five. Where the dutiable value cannot
be determined under the preceding method, the dutiable value shall be the
computed value of the sum of:ChanRoblesVirtualawlibrary
(1) The cost or the value of materials and fabrication or other processing
employed in producing the imported goods;cralawlawlibrary
(2) The amount for profit and general expenses equal to that usually reflected in
the sale of goods of the same class or kind as the goods being valued which are
made by producers in the country of exportation for export to the
Philippines;cralawlawlibrary
(3) The freight, insurance fees and other transportation expenses for the
importation of the goods;cralawlawlibrary
(4) Any assist, if its value is not included under paragraph (1) hereof; and
(5) The cost of containers and packing, if their values are not included under
paragraph (1) hereof.
The Bureau shall not require or compel any person not residing in the Philippines
to produce for examination, or to allow access to, any account or other record
for the purpose of determining a computed value. However, information
supplied by the producer of the goods for the purposes of determining the
customs value may be verified in another country with the agreement of the
producer and provided that said producer will give sufficient advance notice to
the government of the country in question and that the latter does not object to
the investigation.
(2) A system that provides for the acceptance for customs purposes of the
higher of two (2) alternative values;cralawlawlibrary
(4) The cost of production, other than computed values, that have been
determined for identical or similar goods in accordance with method five
hereof;cralawlawlibrary
(5) The price of goods for export to a country other than the
Philippines;cralawlawlibrary
Sec. 708. Exchange Rate. For the assessment and collection of import duty
upon imported goods and for other purposes, the value and prices thereof
quoted in foreign currency shall be converted into the currency of the
Philippines at the current rate of exchange or value specified or published, from
time to time, by the Bangko Sentral ng Pilipinas (BSP).
CHAPTER 2
Nothing in this section limits or affects any other powers of the Bureau with
respect to the disposition of the goods or any liability of the importer or any
other person with respect to an offense committed in the importation of the
goods.
Sec. 710. Marking of Imported Goods and Containers. (A) Marking of Goods,
Except as hereinafter provided, all goods of foreign origin imported into the
Philippines or their containers, as provided in subsection (B) hereof shall be
conspicuously marked in any official language of the Philippines as legibly,
indelibly and permanently as the nature of the goods or container will permit
and in such manner as to indicate to an ultimate purchaser in the Philippines the
name of the country of origin of the goods. Pursuant thereto, the Commissioner
shall, with the approval of the Secretary of Finance:ChanRoblesVirtualawlibrary
(1) Determine the character of words and phrases or abbreviation thereof which
shall be acceptable as indicating the country of origin and prescribe any
reasonable method of marking, whether by printing, stenciling, stamping,
branding, labeling or by any other reasonable method, and in a conspicuous
place on the goods or container where the marking' shall
appear;cralawlawlibrary
(2) Require the addition of other words or symbols which may be appropriate to
prevent deception or mistake as to the origin of the goods or as to the origin of
any other goods with which such imported goods is usually combined
subsequent to importation but before delivery to an ultimate purchaser; and
(3) Authorize the exception of any goods from the requirements of marking
if:ChanRoblesVirtualawlibrary
(ii) Such goods cannot be marked prior to shipment to the Philippines without
injury;cralawlawlibrary
(iii) Such goods cannot be marked prior to shipment to the Philippines, except at
an expense economically prohibitive of their importation;cralawlawlibrary
(iv) The marking of a container of such goods will reasonably indicate the origin
of such goods;cralawlawlibrary
(vi) Such goods are imported for use by the importer and not intended for sale in
their imported or any other form;cralawlawlibrary
(vii) Such goods are to be processed in the Philippines by the importer or for the
importer's account other than for the purpose of concealing the origin of such
goods and in such manner that any mark contemplated by this section would
necessarily be obliterated, destroyed, or permanently
concealed;cralawlawlibrary
(ix) Such goods were produced more than twenty (20) years prior to their
importation into the Philippines; or
(B) Marking of Containers. Whenever goods are exempt under paragraph (3)
of subsection (A) of this section from the requirements of marking, the
immediate container, if any, of such goods, or such other container or
containers of such goods, shall be marked in such manner as to indicate to an
ultimate purchaser in the Philippines the name of the country of origin of such
goods in any official language of the Philippines, subject to all provisions of this
section, including the same exceptions as are applicable to goods under
paragraph (3) of subsection (A).
(C) Pine for Failure to Mark. If, at the time of importation any good or its
container, as provided in subsection (B) hereof, is not marked in accordance
with the requirements of this section, there shall be levied, collected, and paid
upon such good a marking duty of five percent (5%) of dutiable value, which
shall be deemed to have accrued at the time of importation,
(E) The failure or refusal of the owner or importer to mark the goods as herein
required within a period of thirty (30) days after due notice shall constitute as an
act of abandonment of said goods and their disposition shall be governed by
the provisions of this Act relative to abandonment of imported goods.
Sec. 711. Dumping Duty.
The provisions of Republic Act No. 8752, otherwise known as the "Anti-Dumping
Act of 1999", are hereby adopted.
Sec. 712. Safeguard Duty. The provisions of Republic Act No. 8800, otherwise
known as the "Safeguard Measures Act", are hereby adopted.
The provisions of Republic Act No. 8751, otherwise known as "An Act
Strengthening the Mechanisms for the Imposition of Countervailing Duties on
Imported Subsidized Products, Commodities or Articles of Commerce in Order to
Protect Domestic Industries from Unfair Trade Competition, Amending for the
Purpose Section 302, Part 2, Title II, Book I of Presidential Decree No. 1464",
otherwise known as the "Tariff and Customs Code of the Philippines, as
Amended", are hereby adopted.
(a) When the President finds that the public interest will be served thereby, the
President shall, by proclamation, specify and declare new or additional duties in
an amount not exceeding one hundred percent (100%) ad valorem upon
goods wholly or in part the growth or product of, or imported in a vessel of any
foreign country whenever the President shall find as a fact that such
country:ChanRoblesVirtualawlibrary
(c) Any proclamation issued by the President under this section shall, if the
President deems it consistent with the interest of the Philippines, extend to the
whole of any foreign country or may be confined to any subdivision or
subdivisions thereof: Provided, That the President may, whenever the public
interest requires, suspend, revoke, supplement or amend any such
proclamation.
(d) All goods imported contrary to the provisions of this section shall be forfeited
to the government of the Philippines and shall be liable to be seized, prosecuted
and condemned in like manner and under the same regulations, restrictions,
and provisions as may from time to time be established for the recovery,
collection, distribution, and remission or forfeiture to the government by the tariff
and customs laws. Whenever the provision of this section shall be applicable to
importations into the Philippines of goods wholly or in part the growth or product
of any foreign country, it shall be applicable thereto, whether such goods are
imported directly or indirectly.
(e) It shall be the duty of the Commission to ascertain and at all times be
informed whether any of the discriminations against the commerce of the
Philippines enumerated in subsections (a) and (b) of this section are practiced
by any country; and if and when such discriminatory acts are disclosed, it shall
be the duty of the Commission to bring the matter to the attention of the
President, and to recommend measures to address such discriminatory acts.
(f) The Secretary of Finance shall make such rules and regulations as are
necessary for the execution of a proclamation that the President may issue in
accordance with the provisions of this section.
TITLE VIII
CHAPTER 1
CONDITIONALLY TAX AND/OR DUTY-EXEMPT IMPORTATION
(b) Equipment for use in the salvage of vessels or aircrafts, not available locally,
upon identification and the giving of a security in an amount equal to one
hundred percent (100%) of the ascertained duties, taxes and other charges
thereon, conditioned for the exportation thereof or payment of corresponding
duties, taxes and other charges within six (6) months from the date of
acceptance of the goods declaration: Provided, That the Bureau may extend
the time for exportation or payment of duties, taxes and other charges for a
term not exceeding sis (6) months from the expiration of the original
period;cralawlawlibrary
(c) Cost of repairs, excluding the value of the goods used, made in foreign
countries upon vessels or aircraft documented, registered or licensed in the
Philippines, upon proof satisfactory to the Bureau: (1) that adequate facilities for
such repairs are not afforded in the Philippines; or (2) that such vessels or
aircrafts, while in the regular course of their voyage or flight, were compelled by
stress of weather or other casualty to put into a foreign port to make such repairs
in order to secure the safety, seaworthiness, or airworthiness of the vessels or
aircrafts to enable them to reach their port of destination;cralawlawlibrary
(d) Goods brought into the Philippines for repair, processing or reconditioning to
be reexported upon completion of the repair, processing or
reconditioning: Provided, That the Bureau shall require security equal to one
hundred percent (100%) of the duties, taxes and other charges thereon,
conditioned for the exportation thereof or payment of the corresponding duties,
taxes and other charges within six (6) months from the date of acceptance of
the goods declaration;cralawlawlibrary
(e) Medals, badges, cups, and other small goods bestowed as trophies or prizes,
or those received or accepted as honorary distinction;cralawlawlibrary
For purposes of this section, the phrase "returning residents" shall refer to
nationals who have stayed in a foreign country for a period of at least sis (6)
months. Returning residents shall have tax and duty exemption on personal and
household effects: Provided, That:ChanRoblesVirtualawlibrary
(i) Three hundred fifty thousand pesos (P350,000.00) for those who have stayed
in a foreign country for at least ten (10) years and have not availed of this
privilege within ten (10) years prior to returning resident's arrival;cralawlawlibrary
(ii) Two hundred fifty thousand pesos (P250,000.00) for those who have stayed in
a foreign country for a period of at least five (5) but not more than ten (10) years
and have not availed of this privilege within five (5) years prior to returning
resident's arrival; or
(iii) One hundred fifty thousand pesos (P150,000.00) for those who have stayed in
a foreign country for a period of less than five (5) years and have not availed of
this privilege within six (6) months prior to returning resident's arrival.
Every three (3) years after the effectivity of this Act, the Secretary of Finance
shall adjust the amount herein stated to its present value using the CPI as
published by the PSA.
(g) Residents of the Philippines, OFWs or other Filipinos while residing abroad or
upon their return to the Philippines shall be allowed to bring in or send to their
families or relatives in the Philippines balikbayan boxes which shall be exempt
from applicable duties and taxes imposed under the NIRC of 1997, as
amended: Provided, That balikbayan boxes shall contain personal and
household effects only and shall neither be in commercial quantities nor
intended for barter, sale or for hire and that the FCA value of which shall not
exceed one hundred fifty thousand pesos (P150,000.00): Provided, further, That
every three (3) years after the effectivity of this Act, the Secretary of Finance
shall adjust the amount herein stated to its present value using the CPI as
published by the PSA: Provided, finally, That residents of the Philippines, OFWs or
other Filipinos can only avail of this privilege up to three (3) times in a calendar
year. Any amount in excess of the allowable non-dutiable value shall be subject
to the applicable duties and taxes;cralawlawlibrary
(l) For purposes of this Act, OFWs refer to holders of valid passports duly issued by
the Department of Foreign Affairs (DFA) and certified by the Department of
Labor and Employment (DOLE) or the Philippine Overseas Employment
Administration (POEA) for overseas employment purposes. They cover all
Filipinos, working in a foreign country under employment contracts, regardless of
their professions, skills or employment status in a foreign country; and (2)
Calendar Year refers to the period from January 1 to December 31.
(h) Wearing apparel, goods of personal adornment, toilet goods, portable tools
and instruments, theatrical costumes and similar effects accompanying
travelers, or tourists, or arriving within a reasonable time before or after their
arrival in the Philippines, which, are necessary and appropriate for the wear and
use of such persons according to the nature of the journey, their comfort and
convenience: Provided, That this exemption shall not apply to goods intended
for other persons or for barter, sale or hire: Provided, however, That the Bureau
may require either a written commitment or a security in an amount equal to
one hundred percent (100%) of the ascertained duties, taxes and other charges
thereon, conditioned for the exportation thereof or payment of the
corresponding duties, taxes and other charges within three (3) months from the
date of acceptance of the goods declaration: Provided, further, That the
Bureau may extend the time for exportation or payment of duties, taxes and
other charges for a term not exceeding three (3) months from the expiration of
the original period.
(j) Goods used exclusively for public entertainment, and for display in public
expositions, or for exhibition or competition for prizes, and devices for projecting
pictures and parts and appurtenances thereof, upon identification,
examination, and appraisal and the giving of a security in an amount equal to
one hundred percent (100%) of the ascertained duties, taxes and other charges
thereon, conditioned for exportation thereof or payment of the corresponding
duties, taxes and other charges within three (3) months from the date of
acceptance of the goods declaration: Provided, That the Bureau may extend
the time for exportation or payment of duties, taxes and other charges for a
term not exceeding three (3) months from the expiration of the original period;
and technical and scientific films when imported by technical, cultural and
scientific institutions, and not to be exhibited for profit: Provided, further, That if
any of the films is exhibited for profit, the proceeds therefrom shall be subject to
confiscation, in addition to the penalty provide under this Act;cralawlawlibrary
(k) Goods brought by foreign film producers directly and exclusively used for
mailing or recording motion picture films on location in the Philippines, upon their
identification, examination and appraisal and the giving of a security in an
amount equal to one hundred percent (100%) of the ascertained duties, taxes
and other charges thereon, conditioned for exportation thereof or payment of
the corresponding duties, taxes and other charges within three (3) months from
the date of acceptance of the goods declaration, unless extended by the
District Collector for another three (3) months; photographic and
cinematographic films, underdeveloped, exposed outside the Philippines by
resident Filipino citizens or by producing companies of Philippine registry where
the principal actors and artists employed for the production are Filipinos, upon
affidavit by the importer and identification that such exposed films are the same
films previously exported from the Philippines, As used in this paragraph, the
terms "actors" and "artists" include the persons operating the photographic
camera or other photographic and sound recording apparatus by which the
film is made;cralawlawlibrary
(l) Importations for the official use of foreign embassies, legations and other
agencies of foreign governments: Provided, That those foreign countries accord
like privileges to corresponding agencies of the Philippines. Goods imported for
the personal or family use of members and attaches of foreign embassies,
legations, consular officers and other representatives of foreign
governments: Provided, however, That such privilege shall be accorded under
special agreements between, the Philippines and the countries which they
represent: Provided, further, That the privilege may be granted only upon
specific instructions of the Secretary of Finance pursuant to an official request of
the DFA on behalf of members or attaches of foreign embassies, legations,
consular officers and other representatives of foreign governments.
(m) Imported goods donated to or, for the account of the Philippine
government or any duly registered relief organization, not operated for profit, for
free distribution among the needy, upon certification by the DSWD or the
Department of Education (DepED), or the Department of Health (DOH), as the
case may be;cralawlawlibrary
(n) Containers, holders and other similar receptacles of any material including
kraft paper bags for locally manufactured cement for export, including
corrugated boxes for bananas, mangoes, pineapples and other fresh fruits for
export, except other containers made of paper, paperboard and textile fabrics,
which are of such character as to be readily identifiable and/or reusable for
shipment or transportation of goods shall be delivered to the importer thereof
upon identification, examination and appraisal and the giving of a security in an
amount equal to one hundred percent (100%) of the ascertained duties, taxes
and other charges thereon, within six (6) months from the date of acceptance
of the goods declaration;cralawlawlibrary
(o) Supplies which are necessary for the reasonable requirements of the vessel
or aircraft in its voyage or flight outside the Philippines, including goods
transferred from a bonded warehouse in any Customs District to any vessel or
aircraft engaged in foreign trade, for use or consumption of the passengers or its
crew on board such vessel or aircraft as sea or air stores; or goods purchased
abroad for sale on board a vessel or aircraft as saloon stores or air store
supplies: Provided, That any surplus or excess of such vessel or aircraft supplies
arriving from foreign ports or airports shall be dutiable;cralawlawlibrary
(p) Goods and salvage from, vessels recovered after a period of two (2) years
from the date of filing the marine protest or the time when the vessel was
wrecked or abandoned, or parts of a foreign vessel or its equipment, wrecked
or abandoned in Philippine waters or elsewhere: Provided, That goods and
salvage recovered within the said period of two (2) years shall be
dutiable;cralawlawlibrary
(q) Coffins or urns containing human remains, bones or ashes, used personal
and household effects (not merchandise) of the deceased person, except
vehicles, the FCA value of which does not exceed one hundred fifty thousand
pesos (P15 0,000.00), upon identification as such: Provided, That every three (3)
years after the effectivity of this Act, the value herein stated shall be adjusted to
its present value using the CPI as published by the PSA;cralawlawlibrary
(r) Samples of the kind, in such quantity and of such dimension or construction
as to render them unsaleable or of no commercial value; models not adapted
for practical use; and samples of medicines, properly marked "sample-sale
punishable by law", for the purpose of introducing new goods in the Philippine
market and imported only once in a quantity sufficient for such purpose by a
person duly registered and identified to be engaged in that
trade: Provided, That importations under this subsection shall be previously
authorized by the Secretary of Finance: Provided, however, That importation of
sample medicines shall have been previously authorized by the Secretary of
Health, and that such samples are new medicines not available in the
Philippines; Provided, further, That samples not previously authorized or properly
marked in accordance with this section shall be levied the corresponding tariff
duty.
Commercial samples, except those that are not readily and easily identifiable as
in the case of precious and semi-precious stones, cut or uncut, and jewelry set
with precious or semi-precious stones, the value of any single importation of
which does not exceed FCA value of fifty thousand pesos (P50.000.00) upon the
giving of a security in an amount equal to the ascertained duties, taxes and
other charges thereon, conditioned for the exportation of said samples within
three (3) months from the date of the acceptance of the goods declaration or
in default thereof, the payment of the corresponding duties, taxes and other
charges: Provided, That if the FCA value of any single consignment of such
commercial samples exceeds fifty thousand pesos (P50,000.00), the importer
thereof may select any portion of the same not exceeding the FCA value of fifty
thousand pesos (P50.000.00) for entry under the provision of this subsection, and
the excess of the consignment may be entered in bond, or for consumption, as
the importer may elect: Provided, further. That every three (3) years after the
effectivity of this Act, the Secretary of Finance shall adjust the amount herein
stated to its present value using the CPI as published by the PSA. (s) Animals,
except race horses, and plants for scientific, experimental propagation or
breeding, and for other botanical, zoological and national defense purposes:
Provided, That no live trees, shoots, plants, moss and bulbs, tubers and seeds for
propagation purposes may be imported under this section, except by order of
the government or other duly authorized institutions: Provided, however, That the
free entry of animals for breeding purposes shall be restricted to animals of
recognized breed, duly registered in the record or registry established for that
breed, and certified as such by the Bureau of Animal Industry
(BAI):ChanRoblesVirtualawlibrary
Provided, further, That the certification of such record, and pedigree of such
animal duly authenticated by the proper custodian of such record or registry,
shall be submitted to the District Collector, together with the affidavit of the
owner or importer that such animal is the animal described in said certificate of
record and pedigree: Provided, finally, That the animals and plants are certified
by the NEDA as necessary for economic development;cralawlawlibrary
(u) Philippine goods previously exported from the Philippines and returned
without having been advanced in value or improved in condition by any
process of manufacturing or other means, and upon which no drawback or
bounty has been allowed, including instruments and implements, tools of trade,
machinery and equipment, used abroad by Filipino citizens in the pursuit of their
business, occupation or profession; and foreign goods previously imported when
returned after having been exported and loaned for use temporarily abroad
solely for exhibition, testing and experimentation, for scientific or educational
purposes; and foreign containers previously imported which have been used in
packing exported Philippine goods and returned empty if imported by or for the
account of the person or institution who exported them from the Philippines and
not for sale, barter or hire subject to identification: Provided, That Philippine
goods falling under this subsection upon which drawback or bounty have been,
allowed shall, upon reimportation thereof, be subject to a duty under this
subsection equal to the amount of such drawback or bounty;cralawlawlibrary
(v) Aircraft, equipment and machinery, spare parts, commissary and catering
supplies, aviation gas, fuel and oil, whether crude or refined except when
directly or indirectly used for domestic operations, and such other goods or
supplies imported by and for the use of scheduled airlines operating under
congressional franchise: Provided, That such goods or supplies are not locally
available in reasonable quantity, qualify and price and are necessary or
incidental to the proper operation of the scheduled airline importing the
same;cralawlawlibrary
(w) Machineries, equipment, tools for production, plans to convert mineral ores
into saleable form, spare parts, supplies, materials, accessories, explosives,
chemicals, and transportation and communications facilities imported by and
for the use of new mines and old mines which resume operations, when certified
to as such by the Secretary of the Department of Environment and Natural
Resources (DENR), upon the recommendation of the Director of Mines and
Geosciences Bureau, for a period ending five (5) years from the first date of
actual commercial production of saleable mineral products: Provided, That
such goods are not locally available in reasonable quantity, quality and price
and are necessary or incidental in the proper operation of the mine; and
aircrafts imported by agro-industrial companies to be used by them in their
agriculture and industrial operations or activities, spare parts and accessories
thereof, when certified to as such by the Secretary of the Department of
Agriculture (DA) or the Secretary of the Department of Trade and Industry (DTI),
as the case may be;cralawlawlibrary
(x) Spare parts of vessels or aircraft of foreign registry engaged in foreign trade
when brought into the Philippines exclusively as replacements or for the
emergency repair thereof, upon proof satisfactory to the District Collector that
such spare parts shall be utilized to secure the safety, seaworthiness or
airworthiness of the vessel or aircraft, to enable it to continue its voyage or
flight;cralawlawlibrary
(y) Goods exported from the Philippines for repair, processing or reconditioning
without having been substantially advanced in value, and subsequently
reimported in its original form and in the same state: Provided, That in case the
reimported goods advanced in value, whether or not in their original state, the
value added shall be subject to the applicable duty rate of the tariff heading of
the reimported goods; and
(z) Trailer chassis when imported by shipping companies for their exclusive use in
handling containerized cargo, upon posting a security in an amount equal to
one hundred percent (100%) of the ascertained duties, taxes and other charges
due thereon, to cover a period of one (1) year from the date of acceptance of
the entry, which period, for meritorious reasons, may be extended by the
Commissioner from year to year, subject to the following
conditions:ChanRoblesVirtualawlibrary
(1) That they shall be properly identified and registered with the Land
Transportation Office (LTO);cralawlawlibrary
(2) That they shall be subject to customs supervision fee to be fixed by the
District Collector and subject to the approval of the
Commissioner;cralawlawlibrary
(3) That they shall be deposited in the customs territory when not in use; and
(4) That upon the expiration of the period prescribed above, duties and taxes
shall be paid unless otherwise reexported.
(aa) Any officer or employee of the DFA, including any attache, civil or military
or member of the staff assigned to a Philippine diplomatic mission abroad by
the Department or any similar officer or employee of other departments
assigned to any Philippine consular office abroad, or any AFP military personnel
accorded assimilated diplomatic rank or on duty abroad who is returning from a
regular assignment abroad, for reassignment
to the home office, or who dies, resigns, or is retired from the service, after the
approval of this Act, shall be exempt from the payment of all duties and taxes
on personal and household effects, including one (1) motor car which must
have been ordered or purchased prior to the receipt by the mission or consulate
of the order of recall, and which must be registered in the name of the officer or
employee: Provided, That this exemption shall apply only to the value of the
motor car and to the aggregate assessed value of the personal and household
effects, the latter not to exceed thirty percent (30%) of the total amount
received by the officer or employee in salary and allowances during the latest
assignment abroad, but not to exceed four (4) years: Provided, however, That
this exemption shall not be availed of more than once every four (4)
years: Provided, further, That the officer or employee concerned must have
served abroad for not less than two (2) years.
CUSTOMS WAREHOUSES
(1) The manufacturer shall file sufficient security for the faithful observance of all
laws, rules and regulations applicable thereto; (2) The application for the
establishment of bonded warehouses must be made in writing and filed with the
customs officer, describing the premises, the location, and capacity of the
same, and the purpose for which the building is to be used, pursuant to Section
804 of this Act;cralawlawlibrary
(3) From the receipt of the application, the customs officer shall examine the
premises, evaluate its location, construction, and means provided for the
safekeeping of the goods;cralawlawlibrary
(4) The customs officer may authorize the establishment of the customs bonded
warehouse, and accept a bond for its operation and maintenance if the
applicant was compliant with the prescribed requirements; and
(5) The operator of the bonded warehouse shall pay an annual supervision fee
in an amount to be fixed by the Commissioner.
Subject to consultation with the NEDA and the DTI, and based on prevailing
economic circumstances, the Secretary of Finance may, upon the
recommendation of the Commissioner, create or dissolve certain types of
warehouses.
Upon receipt of such application, the District Collector shall examine the
premises of such proposed warehouse, particularly its location, construction and
storage facilities. The District Collector, with the approval of the Commissioner,
may authorize the establishment of customs warehouses, and accept the
required security for its operation and maintenance. The operator of such CBW
and CFW shall pay an annual supervision fee, as determined by the
Commissioner.
Upon lawful demand, the operator of a CBW or CFW shall allow authorized
representatives of the Bureau access to the premises at a reasonable time, and
to all documents, books and records of accounts pertaining to the operations of
the CBW or CFW.
In case of loss of the goods stored in a CBW or CFW due to operator's gross
negligence or willful misconduct, the operator shall be liable for the payment of
duties and taxes due thereof. The government assumes no legal responsibility
over the safekeeping of goods stored in any customs warehouse, yard or
premises.
Sec. 806. Customs Control Over CBWs and CFWs. The Bureau shall, for customs
purposes, exercise control over, direct and manage CBWs and CFWs pursuant
to Section 303 of this Act and likewise over the goods thereat pursuant to
Section 301 of this Act: Provided, That the Bureau shall not be liable for any loss
or damage of the goods stored for safekeeping in any CBW, CFW, yard or
premises.
Sec. 807. Discontinuance of CBW and CFW. The use of any CBW and CFW may
be discontinued by the District Collector when conditions so warrant, or upon
receipt of a written request from the operator thereof: Provided, That all the
requirements of the laws and regulations have been complied with by said
operator. Where dutiable goods are stored in such premises, the same must be
removed at the risk and expense of the operator: Provided, however, That the
premises shall not be relinquished, and its use shall not be discontinued until after
a careful examination of the account of the warehouse shall have been made.
Discontinuance of the use of any warehouse shall be effective upon approval
thereof by the District Collector who shall, within ten (10) days, inform the
Commissioner of such action in writing.
Notice of discontinuance made by the operator shall not result in the discharge
from any duties, taxes, fees and other charges imposed on dutiable goods in
said warehouse.
Sec. 808. Warehousing Security on Goods Stored in CBWs. For goods declared
in the entry for warehousing in CBWs, the District Collector shall require the
importer to post a sufficient security equivalent to the computed duties, taxes
and other charges, conditioned upon the withdrawal of the goods within the
period prescribed by Section 811 of this Act or the payment of duties, taxes and
other charges and compliance with all importation requirements.
Sec. 810. Release of Goods from CFWs. Imported goods shall be released
when the goods declaration is electronically lodged, together with any related
document required by any provision of this Act and other regulations. All goods
entered into the CFWs shall be subject to the filing of a goods declaration within
the period specified under Section 407 of this Act.
Sec. 811. Period of Storage in CBWs. Goods entered for warehousing may
remain in a CBW for a maximum period of one (1) year from the time of its arrival
thereat. For perishable goods, the storage period shall be three (3) months from
the date of arrival, extendable for valid reasons, and upon written request, to
another three (3) months. Goods not withdrawn after the expiration of the
prescribed period shall be deemed as abandoned, as provided under Section
1129 of this Act.
The Commissioner shall, in consultation with the Secretary of Trade and Industry,
establish a reasonable storage period limit beyond one (1) year for bonded
goods for manufacturing and intended for exp ort, the processing into finished
products of which requires a longer period based on industry standard and
practice, subject to the approval of the Secretary of Finance.
Sec. 812. Exemption from Duty of Goods in CBWs. Goods duly entered for
warehousing in CBWs shall be exempt from duty and tax within the allowed
period for storage unless withdrawn for consumption, exportation or transit to a
free zone or another CBW, in which case, such withdrawal will be subject to the
applicable rules and regulations on the liquidation of the warehousing entry.
FREE ZONES
Sec. 814. When Goods are Admitted and Withdrawn. Imported goods shall be
admitted into a free zone when the goods declaration, together with required
documents as required by existing laws and regulations, are electronically
lodged with the Bureau and other relevant government authorities at the time
of admission.
Imported goods shall be withdrawn from the free zone for entry to the customs
territory when the goods declaration is electronically lodged, together with
required documents at the time of the withdrawal from the free zone.
Sec. 815. Exemption from Duty and Tax of Goods in Free Zones. Unless
otherwise provided by law and in accordance with the respective laws, rules
and regulations of the free zone authorities, goods admitted into a free zone
shall not be subject to duty and tax.
Sec. 816. Movement of Goods into and from Free Zones. The entry of goods
into a free zone, whether directly or through the customs territory, shall be
covered by the necessary goods declaration for admission or transit. Withdrawal
from the free zone into the customs territory shall be covered by the necessary
goods declaration for consumption or warehousing.
Transfer of goods from one free zone into another free zone shall likewise be
covered by the necessary transit permit.
The implementing rules and regulations on the transit of goods admitted into,
exported from, withdrawn into the customs territory, and moved between free
zones shall be formulated and issued jointly by the Bureau and the free zone
authorities.
Sec. 817. Coordination With Free Zone Authority. To ensure compliance with
customs laws and regulations, the Bureau shall coordinate with the governing
authority of the free zone.
CHAPTER4
STORES
(b) Goods necessary for the operation and maintenance of vessels, aircrafts, or
trains including fuel and lubricants but excluding spare parts and equipment
which are either on board upon arrival or are taken on board during the stay in
the customs territory of vessels, aircrafts, or trains used, or intended to be used, in
international traffic for the transport of persons for remuneration or for the
industrial or commercial transport of goods, whether or not for remuneration.
Sec. 819. Stores to be Taken Away. For purposes of this chapter, "stores to be
taken away" means goods for sale to the passengers and the crew of vessels,
aircrafts, or trains with a view to being landed, which are either on board upon
arrival or are taken on board during the stay in the customs territory of vessels,
aircrafts, or trains used, or intended to be used, in international traffic for the
transport of persons for remuneration or for the industrial or commercial transport
of goods, whether or not for remuneration.
Sec. 820. Exemption from Duties and Taxes of Stores. Customs treatment of
stores should apply uniformly, regardless of the country of registration or
ownership of vessels, aircraft, or trains. Stores which are carried in a vessel,
aircraft, or train arriving in the customs territory shall be exempted from import
duties and taxes provided that they remain on board. Stores for consumption by
the passengers and the crew imported as provisions on international express
vessels, aircrafts, or trains shall be exempted from import duties and
taxes: Provided, That:ChanRoblesVirtualawlibrary
(a) Such goods are purchased only in the countries crossed by the international
vessels and aircrafts in question; and
(b) Any duties and taxes chargeable on such goods in the country where they
were purchased are paid.
When an aircraft is to land at one or more airports in the customs territory, the
Bureau should allow the issuance of stores for consumption on board both
during the stay of the aircraft at such intermediate airports and during its flight
between such airports.
The Bureau shall require a carrier to take appropriate measures to prevent any
unauthorized use of the stores including sealing of the stores, when necessary. It
shall require the removal of stores from the vessel, aircraft, or trains for storage
elsewhere during its stay in the customs territory only when the Bureau considers
it necessary.
Vessels, aircrafts, or trains which depart for an ultimate foreign destination shall
be entitled to take on board, exempted from duties and taxes, the
following:ChanRoblesVirtualawlibrary
(1) Stores in such quantities as the Bureau deems reasonable with due regard to
the number of the passengers and the crew, to the length of the voyage or
Sight, and to any quantity of such stores already on board; and
(2) Stores necessary for the operation and maintenance of a vessel, aircraft, or
train, in such quantities as are deemed reasonable for operation and
maintenance during the voyage or flight, after due regard of the quantity of
such stores already on board.
Replenishment of stores that are exempted from duties and taxes shall be
allowed for vessels, aircrafts, or trains which have arrived in the customs territory,
and which need to replenish their stores for the journey to their final destination
in the customs territory, subject to the same conditions provided in this Chapter.
Sec. 821. Goods Declaration for Stores. When a declaration concerning stores
on board vessels arriving in the customs territory is required by the Bureau, the
information required shall be kept to the minimum and as may be necessary for
customs control.
The quantities of stores which are supplied to vessels during its stay in the
customs territory should be recorded on the required goods declaration
concerning stores.
When a vessel, aircraft, or train arrives in the customs territory, stores on board
shall:ChanRoblesVirtualawlibrary
TITLE IX
CHAPTER 1
DUTY DRAWBACK
Sec. 900. Basis of Duty Drawback. (A) On Fuel Used for Propulsion of Vessels.
On all fuel imported into the Philippines used for propulsion of vessels engaged
in trade with foreign countries, or in the coastwise trade, a refund or tax credit
shall be allowed not exceeding ninety-nine percent (99%) of the duty imposed
by law upon such fuel, which shall be paid or credited under such rules and
regulations as may be prescribed by the Commissioner with the approval of the
Secretary of Finance.
(B) On Petroleum Oils and Oils Obtained from Bituminous Minerals, Crude,
Eventually Used for Generation of Electric Power and for the Manufacture of
City Gas. On petroleum oils and oils obtained from bituminous materials, crude
oil imported by nonelectric utilities, sold directly or indirectly, in the same form or
after processing, to electric utilities for the generation of electric power and for
the manufacture of city gas, a refund or tax credit shall be allowed not
exceeding fifty percent (50%) of the duty imposed by law upon such oils, which
shall be paid or credited under such rules and regulations as may be prescribed
by the Commissioner with the approval of the Secretary of Finance.
(1) The actual use of the imported materials in the production or manufacture of
the goods exported with their quantity, value, and amount of duties paid
thereon, should be established satisfactorily;cralawlawlibrary
(2) The duties refunded or credited shall not exceed one hundred percent
(100%) of duties paid on the imported materials used;cralawlawlibrary
(4) The exportation shall be made within one (1) year after the importation of
materials used and claim of refund or tax credit shall be filed within six (6)
months from the date of exportation; and
(5) When two or more products result from the use of the same imported
materials, an apportionment shall be made on its equitable basis.
Sec. 901. Payment of Drawbacks. Eligible claims for refund or tax credit shall be
paid or granted by the Bureau to claimants within sixty (60) days after receipt of
properly accomplished claims: Provided, That a registered enterprise under
Republic Act No. 5186, otherwise known as the "Investment Incentives Act", or
Republic Act No. 6135, otherwise known as the "Export Incentives Act of 1970",
which has previously enjoyed tax credits based on customs duties paid on
imported raw materials and supplies, shall not be entitled to a drawback under
this section with respect to the same importation subsequently processed and
reexported.
Sec. 903. Refund of Duties and Taxes. Refund shall be granted where it is
established that duties and taxes have been overcharged as a result of an error
in the assessment or goods declaration.
Where permission is given by the Bureau for goods originally declared for a
customs procedure with payment of duties and taxes to be placed under
another customs procedure, a refund shall be made of any duties and taxes
charged in excess of the amount due under the new procedure, subject to such
regulation issued for the purpose.
A refund shall not be granted if the amount of duties and taxes involved is less
than five thousand pesos (P5,000.00): Provided, That the Secretary of Finance, in
consultation with the Commissioner, may adjust the minimum amount specified
in this Act, taking into account the CPI as published by the PSA.
Sec. 904. Abatement of Duties and Taxes. When goods have not yet been
released for consumption or have been placed under another customs
procedure, provided that no other offense or violation has been committed, the
declarant shall neither be required to pay the duties and taxes nor be entitled to
refund thereof in any of the following cases:ChanRoblesVirtualawlibrary
(a) When, at the request of the declarant, the goods are abandoned, or as
determined by the Bureau, the goods are destroyed or rendered commercially
valueless while under customs control. Any cost herein incurred shall be borne
by the declarant;cralawlawlibrary
(c) When there are shortages due to the nature of the goods.
(a) While 'within the territory of any port of entry, prior to unloading' under the
Bureau's supervision;cralawlawlibrary
(c) While in transit from the port of entry to any port in the Philippines; and
(d) While released under sufficient security for export except in case of loss by
theft.
(a) The goods have not been worked, repaired, or used in the country of
importation, and are reexported within, a reasonable time; and
(b) The goods have not been worked, repaired, or used in the country to which,
they were exported, and are reimported within a reasonable time.
Use of the goods shall, however, not hinder the refund if such use was
indispensable to discover the defects or other circumstances which caused the
reexportation or reimportation of the goods.
Sec. 912. Refund Arising from Correction of Errors. Manifest clerical errors made
on an invoice or entry, errors in return of weight, measure and gauge, when duly
certified under penalties of falsification or perjury by the surveyor or examining
officer when there are such officers at the port, and errors in the distribution of
charges on invoices not involving any question of law and certified under
penalties of falsification or perjury by the examining customs officer, may be
corrected in the computation of duties, if such errors are discovered before the
payments of duties, or if discovered within one (1) year after release from
customs custody of imported goods upon written request and notice of error
from the importer, or upon statement of error certified by the District Collector.
For the purpose of correcting errors specified in the next preceding paragraph,
the Bureau is authorized to make refunds within the statutory time limit.
Sec. 913. Claims for Refund. All claims and application for refund of duties and
taxes shall be made in writing and filed with the Bureau within twelve (12)
months from the date of payment of duties and taxes.
The importer may file an appeal of a denial of a claim for refund or abatement,
whether it is a full or partial denial, with the Commissioner within thirty (30) days
from the date of the receipt of the denial. The Commissioner shall render a
decision within thirty (30) days from the receipt of all the necessary documents
supporting the application. Within thirty (30) days from receipt of the decision of
the Commissioner, the case may also be appealed to the CTA.
TITLE X
Sec. 1000. Audit and Examination of Records. Within three (3) years from the
date of final payment of duties and taxes or customs clearance, as the case
may be, the Bureau may conduct an audit examination, inspection, verification,
and investigation of records pertaining to any goods declaration, which shall
include statements, declarations, documents, and electronically generated or
machine readable data, for the purpose of ascertaining the correctness of the
goods declaration and determining the liability of the importer for duties, taxes
and other charges, including any fine or penalty, to ensure compliance with this
Act.
Sec. 1001. Scope of the Audit. The audit of importers shall be conducted when
firms are selected by a computer-aided risk management system, the
parameters of which are to be based on objective and quantifiable data,
subject to the approval of the Secretary of Finance upon recommendation of
the Commissioner. The criteria for selecting firms to be audited shall
include:ChanRoblesVirtualawlibrary
(a) Relative magnitude of customs revenue to be generated from the firm; (b)
The rates of duties of the firm's imports;cralawlawlibrary
A customs officer is not entitled to enter the premises under this section unless,
before so doing, the officer produces to the person occupying or apparently in
charge of the premises written evidence of the fact of being duly authorized.
The person occupying or apparently in charge of the premises entered by an
officer shall provide the officer with all reasonable facilities and assistance for
the effective exercise of the officer's authority under this section.
Unless otherwise provided herein or in other provisions of law, the Bureau may, in
case of disobedience, invoke the aid of the proper regional trial court within
whose jurisdiction the matter falls. The court may punish contumacy or refusal as
contempt. In addition, the fact that the importer or customs broker denies the
authorized customs officer full and free access to importation records during the
conduct of a post clearance audit shall create a presumption of inaccuracy in
the transaction value declared for their imported goods and constitute grounds
for the Bureau to conduct a reassessment of such goods.
Sec. 1003. Requirement to Keep Records. (a) All importers are required to keep
at their principal place of business, in the manner prescribed by regulations to
be issued by the Commissioner and for a period of three (3) years from the date
of final payment of duties and taxes or customs clearance, as the case may be,
all records pertaining to the ordinary course of business and to any activity or
information contained in the records required by this title in connection with any
such activity.
For purposes of the post clearance audit and Section 1005 of this Act, the term
importer shall include the following:ChanRoblesVirtualawlibrary
(1) The terms and conditions of the importation are controlled by the person
placing the order; or
(2) The circumstances and nature of the relationship between the person
placing the order and the importer or supplier are such that the former may be
considered as the beneficial or true owner of the imported goods; or
(3) The person placing the order had prior knowledge that they will be used in
the manufacture or production of the imported goods.
(b) All parties engaged in customs clearance and processing are required to
keep at their principal place of business, in the manner prescribed by
regulations to be issued by the Commissioner and for a period of three (3) years
from the date of filing of the goods declaration, copies of the abovementioned
records covering the transactions handled.
(c) Locators or persons authorized to bring imported goods into free zones, such
as the special economic zones and free ports, are required to keep subject-
records of all its activities, including in whole or in part, records on imported
goods withdrawn from said zones into the customs territory for a period of three
(3) years from the date of filing of the goods declaration.
Failure to keep the records required by this Act shall constitute a waiver of this
right to contest the results of the audit based on records kept by the Bureau.
(b) Summon the person liable for duties and taxes or required to file goods
declaration, or any officer or employee of such person, or any person having
possession, custody, or care of the books of accounts and other accounting
records containing entries relating to the business of the person liable for duties
and taxes, or any other person, to appear before the Commissioner or the duly
authorized representative at a time and place specified in the summons and to
produce such books, papers, records, or other data, and to give
testimony;cralawlawlibrary
(c) Take such, testimony of the person concerned, under oath, as may be
relevant or material to such inquiry; or
Sec. 1005. Failure to Pay Correct Duties and Taxes on Imported Goods. Any
person who, after being subjected to post clearance audit and examination as
provided in Section 1000 of this Act, is found to have incurred deficiencies in.
duties and taxes paid for imported goods, shall be penalized according to two
(2) degrees of culpability subject to any mitigating, aggravating, or
extraordinary factors that are clearly established by available evidence as
described hereunder:ChanRoblesVirtualawlibrary
(b) Fraud. When the material false statement or act in connection with the
transaction was committed or omitted knowingly, voluntarily and intentionally,
as established by clear and convincing evidence, the offender who is charged
for committing fraud and is found guilty thereof, shall be penalized with a fine
equivalent to six (6) times of the revenue loss and/or imprisonment of not less
than two (2) years, but not more than eight (8) years.
Sec. 1006. Records to be Kept by the Bureau. The Bureau shall keep a
database of importer and broker profiles which shall include a record of audit
results and the following information and papers:ChanRoblesVirtualawlibrary
(b) The company structure, which shall include, but not limited to, incorporators
and board of directors key officers, and organizational
structure;cralawlawlibrary
The Bureau shall furnish the BIR and the DOF a copy of the final audit results
within thirty (30) days from the issuance thereof.
TITLE XI
CHAPTER 1
ADVANCE RULING AND DISPUTE SETTLEMENT
The application for a valuation ruling shall be filed with the Commissioner who
shall issue a ruling within thirty (30) days from submission of the application form
and supporting documents as may be required by rules and regulations.
When the valuation method of goods not subject of an application for advance
valuation ruling or the declared customs value is in dispute, the matter shall be
resolved in accordance with Section 1106 of this Act on "protest".
Sec. 1102. Ruling on the Rules of Origin. An importer or exporter may file a
written application for a ruling on whether the goods qualify as originating under
the rules of origin of the applicable preferential trade agreement. The
application for an advance ruling on origin shall be filed with the Commissioner
who shall act on the application within thirty (30) days from receipt of the
application and supporting documents as may be required by rules and
regulations.
When the declared origin of the goods, not subject of a request for advance
ruling on origin, is in dispute, the matter shall be resolved in accordance with
Section 1106 of this Act on "protest".
CHAPTER 2
PROTEST
Sec. 1106. Protest When a ruling or decision of the District Collector or customs
officer involving goods with valuation, rules of origin, and other customs issues is
made, except the fixing of fines in seizure cases, the party adversely affected
may appeal by way of protest against such ruling or decision by presenting to
the Commissioner at the time when payment of the amount claimed to be due
the government is made, or within fifteen (15) days thereafter, a written protest
setting forth the objection to the ruling or decision in question and the reasons
therefore.
Sec. 1107. Protest Exclusive Remedy in Protestable Case. In all cases subject to
protest, the interested party who desires to have the action of the District
Collector reviewed, shall file a protest as provided in Section 1106 of this Act,
otherwise the action of the District Collector shall be final and conclusive.
Sec. 1108. Form and Scope of Protest. A protest shall be filed in accordance
with the prescribed rules and regulations promulgated under this section. It shall
specify the particular decision or ruling of the District Collector for which protest
is being made, and shall indicate the particular ground or grounds upon which
the protesting party bases the claim for relief. The scope of a protest shall be
limited to the particular goods subject of a goods declaration, but any number
of issues may be raised in a protest with reference to the goods declaration
constituting the subject matter of the protest.
Sec. 1109. Samples to be Furnished by Protesting Parties. If the nature of the
goods permit, importers filing protests involving questions of fact must, upon
demand, present to the Commissioner samples of the goods which are the
subject matter of the protest. The samples of the goods shall be verified by the
customs officer who made the classification, against which the protests are filed.
Sec. 1110. Decision in Protest. When a protest is filed in proper form, the
Commissioner shall render a decision within thirty (30) days from receipt of the
protest. In case the protest is sustained, in whole or in part, the appropriate order
shall be made, and the entry reassessed, if necessary.
CHAPTER 3
ALERT ORDERS
Sec. 1111. Alert Orders. Alert orders are written orders issued by customs
officers as authorized by the Commissioner on the basis of derogatory
information regarding possible noncompliance with this Act. An alert order will
result in the suspension of the processing of the goods declaration and the
conduct of physical or nonintrusive inspection of the goods within forty-eight
(48) hours from issuance of the order. Within forty-eight (48) hours or, in the case
of perishable goods, within twenty-four (24) hours from inspection, the alerting
officer shall recommend the continuance of processing of goods in ease of a
negative finding, or issuance of a warrant of seizure and detention if a
discrepancy between the declaration and actual goods is found. The Bureau's
information system shall immediately reflect the imposition or lifting of an alert
order.
An alert order may be issued only after lodgement of the goods declaration
and prior to the release of goods from customs custody. Under no
circumstances shall, the suspension of the processing of goods declaration be
allowed except through an alert order issued by an authorized customs officer.
The costs of the physical inspection shall be borne by the Bureau: Provided, That
such cost shall be reimbursed by the owner prior to the release of the goods if
the physical inspection results in the assessment of additional duties or taxes or
the issuance of a warrant of seizure.
The Bureau shall create a central clearing house for alert orders and shall submit
reports quarterly on the status thereof.
Sec. 1112. Alert Orders on Perishable Goods. When the subject of the alert
order are perishable goods, the Bureau shall attach to the recommendation a
certificate stating that the goods are perishable.
CHAPTER 4
Sec. 1113. Property Subject to Seizure and Forfeiture. Property that shall be
subject to seizure and forfeiture include:ChanRoblesVirtualawlibrary
(a) Any vehicle, vessel or aircraft, including cargo, which shall be used
unlawfully in the importation or exportation of goods or in conveying or
transporting smuggled goods in commercial quantities into or from any
Philippine port or place. The mere carrying or holding on board of smuggled
goods in commercial quantities shall subject such vehicle, vessel, aircraft, or any
other craft to forfeiture: Provided, That the vehicle, vessel, aircraft or any other
craft is not used as a common carrier which has been chartered or leased for
purposes of conveying or transporting persons or cargo;cralawlawlibrary
(b) Any vessel engaging in the coastwise trade which shall have on board
goods of foreign growth, produce, or manufacture in excess of the amount
necessary for sea stores, without such goods having been properly entered or
legally imported;cralawlawlibrary
(c) Any vessel or aircraft into which shall be transferred cargo unloaded contrary
to law prior to the arrival of the importing vessel or aircraft at the port of
destination;cralawlawlibrary
(d) Any part of the cargo, stores, or supplies of a vessel or aircraft arriving from a
foreign port which is unloaded before arrival at the vessel's or aircraft's port of
destination and without authority from the customs officer; but such cargo, ship,
or aircraft stores and supplies shall not be forfeited if such unloading was due to
accident, stress of weather, or other necessity and is subsequently approved by
the District Collector;cralawlawlibrary
(e) Goods which are fraudulently concealed in or removed contrary to law from
any public or private warehouse, container yard, or container freight station
under customs supervision;cralawlawlibrary
(i) Any package of imported goods which is found upon examination to contain
goods not specified in the invoice or goods declaration including all other
packages purportedly containing imported goods similar to those declared in
the invoice or goods declaration to be the contents of the misdeclared
package;cralawlawlibrary
(j) Boxes, cases, trunks, envelopes, and other containers of whatever character
used as receptacle or as device to conceal goods which are subject to
forfeiture under this Act or which are so designed as to conceal the character of
such goods;cralawlawlibrary
(k) Any conveyance actually used for the transport of goods subject to forfeiture
under this Act, with its equipage or trappings, and any vehicle similarly used,
together with its equipment and appurtenances. The mere conveyance of
smuggled goods by such transport vehicle shall be sufficient cause for the
outright seizure and confiscation of such transport vehicle but the forfeiture shall
not be effected if it is established that the owner of the means of conveyance
used as aforesaid, is engaged as common carrier and not chartered or leased,
or that the agent in charge thereof at the time, has no knowledge of the
unlawful act; and
(1) Without going through a customs office, whether the act was consummated,
frustrated, or attempted;cralawlawlibrary
(2) Found in the baggage of a person arriving from abroad and undeclared by
such person;cralawlawlibrary
(5) Through any other practice or device contrary to law by means of which
such goods entered through a customs office to the prejudice of the
government.
Sec. 1114. Properties not Subject to Forfeiture in, the Absence of Prima Facie
Evidence. The forfeiture of the vehicle, vessel, or aircraft shall not be effected if
it is established that the owner thereof or the agent in charge of the means of
conveyance used as aforesaid has no knowledge of or participation in the
unlawful act: Provided, That a prima facie presumption shall exist against the
vehicle, vessel, or aircraft under any of the following
circumstances:ChanRoblesVirtualawlibrary
(b) If the owner is not in the business for which the conveyance is generally used;
and
Sec. 1116. Seizure or Release of Goods. The District Collector shall issue an
order of release or a warrant of seizure within five (5) days, or two (2) days in
case of perishable goods, upon the recommendation of the alerting officer or
any other customs officer. The District Collector shall immediately make a report
of such seizure or release to the Commissioner.
SBC. 1117. Warrant of Seizure or Order of Release. The District Collector shall
have the authority to issue a warrant of seizure of the goods upon determination
of the existence of probable cause and in case of nonexistence thereof, the
issuance of order of release. In case the District Collector issued an order of
release, the District Collector shall immediately transmit all the records to the
Commissioner who shall automatically review within forty-eight (48) hours, or
within twenty-four (24) hours in case of perishable goods. When no decision is
made by the Commissioner within the prescribed period, the imported goods
shall be deemed released.
The lifting of the alert order shall be issued by the District Collector only upon the
affirmation of the decision of the District Collector by the Commissioner, or after
the lapse of the period of review by the Commissioner, whichever is earlier.
Sec. 1119. Service of Warrant of Seizure. The District Collector shall cause the
service of warrant of seizure to the owner or importer of the goods or the
authorized representative thereof. The owner or importer shall be given an
opportunity to be heard during the forfeiture proceedings.
For the purpose of serving the warrant, the importer, consignee, or person
holding the bill of lading or airway bill shall be deemed the "owner" of the goods.
For the same purpose, "authorized representative" shall include any agent of the
owner and if the owner or the agent is unknown, any person having possession
of the goods at the time of the seizure.
Sec. 1123. Burden of Proof in Forfeiture Proceedings. In all proceedings for the
forfeiture of any vehicle, vessel, aircraft, or goods under this Act, the burden of
proof shall be borne by the claimant.
Upon payment of the fine or payment of the redeemed value, the goods shall
be released and all liabilities which may attach to the goods shall be
discharged without prejudice to the filing of administrative or criminal case.
Sec. 1125. Decision in Forfeiture Cases. In forfeiture cases, the District Collector
shall issue an order for hearing within fifteen (15) days, or five (5) days in case of
perishable goods, from issuance of the warrant. The District Collector shall render
a decision within thirty (30) days upon termination of the hearing, or within ten
(10) days in case of perishable goods. The decision shall include a declaration of
forfeiture, the imposition of a fine or such other action as may be proper.
CHAPTER 5
The decision of the Commissioner may be served through the recognized modes
of service under existing law.
Sec. 1127. Automatic Review in Forfeiture Cases. The Commissioner shall
automatically review any decision by the District Collector adverse to the
government. The entire records of the case shall be elevated within five (5) days
from the promulgation of the decision. The Commissioner shall decide on the
automatic review within thirty (30) days, or within ten (10) days in the case of
perishable goods, from receipt of the records. When no decision is rendered
within the prescribed period or when a decision adverse to the government is
rendered by the Commissioner involving goods with FOB or FCA value of ten
million pesos (P10,000,000.00) or more, the records of the decision of the
Commissioner, or of the District Collector under review, as the case may be, shall
be automatically elevated within five (5) days for review by the Secretary of
Finance. The decision issued by the Secretary of Finance, whether or not a
decision was rendered by the Commissioner within thirty (30) days, or within ten
(10) days in the case of perishable goods, from receipt of the records, shall be
final upon the Bureau.
CHAPTER 6
ABANDONMENT
Sec. 1129. Abandonment, Kinds and Effects of. Imported goods are deemed
abandoned under any of the following
circumstances:ChanRoblesVirtualawlibrary
(a) When the owner, importer, or consignee of the imported goods expressly
signifies in writing to the District Collector the intention to abandon the same; or
(b) When the owner, importer, consignee, or interested party after due notice,
fails to file the goods declaration within the prescribed period in Section 407 of
this Act: Provided, That the term goods declaration shall include provisional or
incomplete goods declaration deemed valid by the Bureau as provided in
Section 403 of this Act. For this purpose, it is the duty of the District Collector to
post a list of all packages discharged and their consignees, whether
electronically or physically in the District Office, or send a notice to the
consignee within five (5) days from the date of discharge; or
(c) Having filed such goods declaration, the owner, importer, consignee or
interested party after due notice, fails to pay the assessed duties, taxes and
other charges thereon, or, if the regulated goods failed to comply with Section
117 of this Act, within fifteen (15) days from the date of final
assessment: Provided, That if such regulated goods are subject of an alert order
and the assessed duties, taxes and other charges thereof are not paid within
fifteen (15) days from notification by the Bureau of the resolution of the alert
order, the same shall also be deemed abandoned; or
(d) Having paid the assessed duties, taxes and other charges, the owner,
importer or consignee or interested party after due notice, fails to claim the
goods within thirty (30) days from payment. For this purpose, the arrastre or
warehouse operator shall report the unclaimed goods to the District Collector
for disposition pursuant to the provisions of this Act; or
(e) When the owner or importer fails to claim goods in customs bonded
warehouses within the prescribed period.
The due notice requirement under this section may be provided by the Bureau
through electronic notice or personal service: Provided, That for non-regular
importers, notification shall be by registered mail or personal service. For this
purpose, the accreditation of importers, exporters, and other third parties shall
include provision for mandatory receipt of electronic notices.
If the Bureau has not disposed of the abandoned goods, the owner or importer
of goods impliedly abandoned may, at any time within thirty (30) days after the
lapse of the prescribed period to file the declaration, reclaim the goods
provided that all legal requirements have been complied with and the
corresponding duties, taxes and other charges, without prejudice to charges
and fees due to the port or terminal operator, as well as expenses incurred have
been paid before the release of the goods from customs custody.
When the Bureau sells goods which have been impliedly abandoned, although
no offense has been discovered, the proceeds of the sale, after deduction of
any duty and tax and all other charges and expenses incurred as provided in
Section 1143 of this Act, shall be turned over to those persons entitled to receive
them or, when this is not possible, held at their disposal for a specified period.
After the lapse of the specified period, the balance shall be transferred to the
forfeiture fund as provided in Section 1151 of this Act.
CHAPTER 7
CHAPTER 8
Sec. 1132. Remedies for the Collection of Duties, Taxes, Fines, Surcharges,
Interests, and Other Charges. The civil remedies for the collection of import
duties, taxes, fees, or charges resulting from the conduct of a post clearance
audit shall be obtained by:ChanRoblesVirtualawlibrary
The Bureau shall advance the amounts needed to defray costs of collection by
means of civil or criminal action, including the preservation or transportation of
personal property distrained and the advertisement and sale thereof, as well as
of real property and improvements thereon.
In case the importer or the person in possession and control of the property
sought to be placed under constructive distraint refuses or fails to sign the
receipt herein referred to, the customs officer effecting the constructive distraint
shall proceed to prepare a list of such property and, in the presence of two (2)
witnesses, leave a copy thereof in the premises where the property distrained is
located, after which the said property shall be deemed to have been placed
under constructive distraint.
Sec. 1134. Summary Remedies. (A) Distraint of Personal Property. Upon failure
of the person owing any delinquent duty, tax and other charges to pay at the
time required, the Commissioner shall seize and distraint the goods, chattels or
effects, and the personal property, including stocks and other securities, debts,
credits, bank accounts, and interests in and rights to personal property of such
persons, in sufficient quantity to satisfy the duty, tax or other charge and the
expenses of the distraint and the cost of the subsequent sale.
The officer serving the warrant of distraint shall make or cause to be made an
account of the goods, chattels, effects, or other personal property distrained, a
copy of which, signed by the said officer, shall be left either with the owner or
person from whose possession such goods, chattels, or effects or other personal
property were taken, or at the dwelling or other place of business of such person
and with someone of suitable age and discretion, to which list shall be added a
statement of the sum demanded and note of the time and place of sale.
Stocks and other securities shall be distrained by serving a copy of the warrant
of distraint upon the importer and upon the president, manager, treasurer, or
other responsible officer of the corporation, company or association, which
issued the said stocks or securities.
Debts and credits shall be distrained by leaving with the person owing the debts
or having in his/her possession or under his/her control such credits, or with
his/her agent, a copy of the warrant of distraint. The warrant of distraint shall be
sufficient authority to the person owing the debts or having in his possession or
under his control any credits belonging to the importer to pay to the
Commissioner the amount of such debts of credits.
A report on the distraint shall, within ten (10) days from receipt of the warrant, be
submitted by the Commissioner to the Secretary of Finance: Provided, That the
Commissioner shall have the power to lift such order of distraint subject to the
rules and regulations promulgated pursuant to this Act.
(B) Levy on Real Property. After the expiration of the period within which to pay
the duty, tax and other charges as prescribed in this section, real property may
be levied upon, before, simultaneously, or after the distraint of personal property
belonging to the importer. To this end, the Commissioner or the duly authorized
representative shall prepare a duly authenticated certificate showing the name
of the importer and the amounts of the duty and tax and penalty due. The
certificate shall operate with the force of a legal execution throughout the
Philippines.
The levy shall be effected by writing upon the certificate a description of the
property on which levy is made. At the same time, written notice of the levy shall
be mailed to or served upon the register of deeds of the province or city where
the property is located and upon the importer, or if the latter is not in the
Philippines, upon the agent or the manager of the business from which the
liability arose, or if there be none, to the occupant of the property in question.
In case the warrant of levy on real property is not issued before or simultaneously
with the warrant of distraint on personal property, and the personal property of
the importer is not sufficient to satisfy the duty and tax due, the Commissioner or
a duly authorized representative shall, within thirty (30) days after execution of
the distraint, proceed with the levy on the real property of the importer.
Within ten (10) days after receipt of the warrant, a report on any levy shall be
submitted by the levying officer to the Commissioner: Provided, That the
Commissioner may lift such warrants of levy issued, subject to the rules and
regulations promulgated pursuant to this Act.
CHAPTER 9
JUDICIAL PROCEEDINGS
Sec. 1135. Supervision and Control over Criminal and Civil Proceedings. Civil
and criminal actions and proceedings instituted on behalf of the Government
under the authority of this Act or other laws enforced by the Bureau shall be
brought in the name of the government of the Philippines and shall be
prosecuted and handled by the Bureau with the assistance of the Department
of Justice (DOJ): Provided, That the determination of the existence of probable
cause and the subsequent filing of any criminal or civil case with the proper
court against violators of this Act shall exclusively belong to the DOJ: Provided,
however,That no civil or criminal action for the recovery of duties or the
enforcement of any fine, penalty or forfeiture under this Act shall be filed in
court without the approval of the Commissioner.
Sec. 1136. Review by the CTA. Unless otherwise provided in this Act or by any
other law, the party aggrieved by the ruling or decisions of the Commissioner
may appeal to the CTA, in the manner and within the period prescribed by law
and regulations. Decisions of the Secretary of Finance when required by this Act,
may likewise be appealed to the CTA.
Unless an appeal is made to the CTA in the manner and within the period
prescribed by law and regulations, the ruling or decision of the Commissioner or
the Secretary of Finance shall be final and executory.
Sec. 1137. Exclusive Jurisdiction of the Bureau. Jurisdiction over imported goods
and goods for exportation shall be exclusive to the Bureau, or the Secretary of
Finance, when under review by the latter, subject to the proceedings described
in this title.
Except for the CIA, no court may issue any order or decision until all the
remedies for administrative appeal have been exhausted.
Sec. 1138. Fraud Investigation and Prosecution. No criminal case for violation
of this title shall be instituted without the approval of the Commissioner pursuant
to the provisions of this Act.
The Bureau shall have the power to investigate and institute smuggling cases
committed within its jurisdiction: Provided, That in case of inquest, the same may
be instituted by the apprehending customs officer.
CHAPTER 10
Sec. 1139. Goods Subject to Disposition. Goods in customs custody that are in
the following conditions and status shall be subject to
disposition:ChanRoblesVirtualawlibrary
(b) Goods entered under warehousing entry but not withdrawn, or those whose
duties and taxes have not been paid within the period prescribed under Section
811 of this Act;cralawlawlibrary
(c) Forfeited goods, other than prohibited, restricted and regulated goods; after
liability have been established by the proper administrative or judicial
proceedings in conformity with the provisions of this Act; and
(d) Goods subject to a valid lien for customs duties, taxes and other charges
collectible by the Bureau, after the expiration of the period allowed for payment
thereof.
Sec. 1140. Place of Disposition of Goods. Upon the order of the District
Collector, goods may be sold or otherwise disposed of at the port where the
goods are located, unless the Commissioner shall direct its transfer to another
port.
For purposes of donating the goods as above described, goods suitable for
shelter or consisting of foodstuffs, clothing materials or medicines may be
donated to the DSWD.
Sec. 1143. Disposition of Proceeds. The following expenses and obligations shall
be paid from the proceeds of the sale in the order
provided:ChanRoblesVirtualawlibrary
(e) Arrastre and private storage charges and demurrage charges; and
For this purpose, perishable goods shall include goods liable to perish or be
wasted, or those that depreciate greatly in value while stored, or which cannot
be kept without great disproportionate expense. The Bureau shall proceed to
advertise and sell the same at auction upon notice as shall be deemed to be
reasonable. Sec. 1145. Disposition of Goods Injurious to Public Health. Goods in
the custody of the Bureau which, in the opinion of the District Collector are
injurious to public health, shall be seized. The District Collector shall, if the matter
is not disposable under the provisions relating to food and drugs, appoint three
(3) members to constitute a Board to examine the goods. The Board shall be
composed of one (1) representative from either the DOH or other appropriate
government agency or the local government unit (LGU) concerned, and two
(2) representatives from the Bureau. If the goods are found to be injurious to
public health, the Board shall report this to the District Collector, who shall order
its destruction in an appropriate manner or order its reexportation in
accordance with this Act.
The District Collector shall immediately coordinate with the health and
quarantine officers at the port of entry for the disposition of goods injurious to
public health.
(b) Roulette wheels, gambling outfits, loaded dice, marked cards, machines,
apparatus or mechanical devices used in gambling or the distribution of money,
cigars, cigarettes, or other goods when such distribution is dependent on
chance, including jackpot and pinball machines or similar contrivances, or parts
thereof shall be turned over to the appropriate government body or
agency;cralawlawlibrary
(c) Lottery and sweepstakes tickets, except advertisements thereof, and lists of
drawings therein shall be turned over to the appropriate government body or
agency;cralawlawlibrary
(e) Opium pipes and parts thereof, of whatever material, shall be turned over to
the Dangerous Drugs Board; and
(f) All other restricted goods which are highly dangerous to be kept or handled
shall be destroyed in a manner as the District Collector deems appropriate.
Otherwise, the restricted goods shall be turned over to the proper government
agency for appropriate handling.
Sec. 1149. Disposition of Unsold Goods for Want of Bidders. Goods subject to
sale at public auction by the Bureau shall be sold at a price not less than the
landed cost of the goods adjusted for normal depreciation.
Goods which remain unsold after at least two (2) public biddings either due to
the lack of bidders or for the lack of an acceptable bid, may be donated to
another government agency or declared for official use of the Bureau. If the
goods are not suitable either for official use or donation, these may be subject
to reexport as government property or sold through a negotiated sale. In case
of negotiated sale, the same shall be subject to the approval of the Secretary of
Finance and executed in the presence of a representative of the COA. For
purposes of donating the goods as above described, goods suitable for shelter
or consisting of foodstuffs, clothing materials or medicines may be donated to
the DSWD.
Sec. 1151. Forfeiture Fund. All proceeds from public auction sales after
deduction of the charges as provided in Section 1143 of this Act and subject to
the claim of the owner or importer of an impliedly abandoned goods as
provided in Section 1130 of this Act, shall be deposited in an account to be
known as Forfeiture Fund.
The Fund shall be in the name of and shall be managed by the Bureau which is
hereby authorized, subject to the usual government accounting rules and
regulations, to utilize it for the following purposes:ChanRoblesVirtualawlibrary
(d) To support the modernization program and other operational efficiency and
trade facilitation initiatives of the Bureau.
The DOF and the Department of Budget and Management (DBM) shall, upon
the recommendation of the Bureau, issue a joint regulation to implement the
provisions of this section.
TITLE XII
THIRD PARTIES
CHAPTER 1
Sec. 1200. Customs Brokers and Other Service Providers. Upon the
recommendation of the Commissioner, the Secretary of Finance shall issue the
necessary rules and regulations for the registration of customs brokers and the
accreditation of other customs service providers to ensure compliance with this
Act and the rules and regulations that shall be promulgated to implement it.
CHAPTER 2
Sec. 1201. Ports Open to Vessels and Aircrafts Engaged in Foreign Trade.
Vessels and aircrafts engaged in foreign trade shall visit designated ports of
entry only except as otherwise especially allowed by law: Provided, That no
existing and valid government contract covering the handling of import and
export cargo shall be diminished or impaired. Every vessel or aircraft arriving
within a Customs District of the Philippines from a foreign port shall dock at the
designated port of entry and shall be subject to the authority of the District
Collector of the port while within its jurisdiction.
(b) The original manifest of all cargoes destined for the port, to be returned with
the endorsement of the boarding officers;cralawlawlibrary
(c) Three (3) copies of the original manifest, one of which, upon certification by
the boarding officer as to the correctness of the copy, shall be returned to the
master;cralawlawlibrary
(h) The original copy of all through cargo manifest, for deposit with the customs
officer who has jurisdiction over the vessel while in port;cralawlawlibrary
(i) The passengers manifest containing the names of all foreigners, in conformity
with the requirements of the immigration laws in force in the
Philippines;cralawlawlibrary
(j) One (1) copy of the original duplicate of fully accomplished bill of
lading;cralawlawlibrary
(k) The shipping goods and register of the vessel of Philippine registry; and
Sec. 1204. Manifest Required of Vessel from Foreign Port. Every vessel from a
foreign port must have on board a complete manifest of all its cargoes.
A true and complete copy of the cargo manifest shall be electronically sent in
advance by the shipping company, NVOCC, freight forwarder, cargo
consolidator, or their agents within the cut-off period as may be determined by
the Bureau before the arrival of the carrying vessel at the port of entry. Upon
arrival of the carrying vessel, the shipping company, NVOCC, freight forwarder,
cargo consolidator, or their agents shall provide two (2) hard copies of the
cargo manifest to the Bureau in case the port of entry is either the Port of Manila
(PoM) or the Manila International Container Port (MICP), and one (1) copy only
in the case of the other ports of entry.
Sec. 1206. Manifests for the Commission on Audit and District Collector. Upon
arrival of a vessel from a foreign port, the Bureau shall provide electronic copies
of the manifest to the Chairperson of the COA. The master shall immediately
present to the District Collector the original copy of the cargo manifest properly
endorsed by the boarding officer, and for inspection, the ship's register, or other
documents in lieu thereof, together with the clearance and other papers
granted to the vessel at the port of departure for the Philippines.
Sec. 1207. Production of Philippine Crew. The master of a Philippine vessel
returning from abroad shall produce the entire crew listed in the vessel's shipping
crew manifest. If any member is missing, the master shall produce proof
satisfactory to the District Collector that the member has died, or absconded,
has been forcibly impressed into another service, or has been discharged. In
case of discharge in a foreign country, the master shall produce a certificate
from the consul, vice consul, or consular agent of the Philippines there residing,
showing that such discharge was effected with the consent of the aforesaid
representative of the Philippines.
Sec. 1208. Record of Arrival and Entry of Vessels and Aircraft. A record shall be
made and kept open to public inspection in every Customs District of the date
of arrival and entry of all vessels and aircraft.
Sec. 1209. Arrest of Vessel or Aircraft Departing Before Entry Made. When a
vessel or aircraft arriving within the limits of a Customs District from a foreign port
departs or attempts to depart before entry shall have been made, not being
thereunto compelled by stress of weather, duress of enemies, or other necessity,
the District Collector of the port may cause the arrest and bring back such
vessel or aircraft to the most convenient port with the assistance of other
concerned agencies.
Sec. 1210. Discharge of Ballast. When not brought to port as goods, ballast of
no commercial value may be discharged upon permit granted by the District
Collector for the purpose.
Sec. 1212. Entrance of Vessel through Necessity. When a vessel from a foreign
port is compelled, by stress of weather or other necessity to put into any other
port than that of its destination, the master within twenty-four (24) hours after its
arrival, shall make a protest under oath setting forth the causes or circumstances
of such necessity. This protest, if not made before the District Collector, must be
produced and lodged with the District Collector.
Within the same time, the master shall make a report to the District Collector if
any part of the cargo was unloaded from necessity or lost by casualty before
arrival, and produce sufficient proof to the District Collector of such necessity or
casualty before the latter who shall give the approval thereto and the
unloading shall be deemed to have been lawfully effected.
Sec. 1213. Unloading of Vessel in Port from Necessity. If a situation arises where
the unloading of the vessel is required pending sojourn in port, the District
Collector shall, upon sufficient proof of the necessity, grant a permit therefore,
and the goods shall be unloaded and stored under the supervision of customs
officers.
At the request of the master of the vessel or the owner thereof, the District
Collector may grant permission to enter the port and pay duties, taxes and
other charges on, and dispose of, such part of the cargo as may be perishable
in nature or as may be necessary to defray the expenses attending the vessel.
Upon departure, the cargo, or a part thereof, may be reloaded on board the
vessel, and the vessel may proceed with the same to its destination, subject only
to the charge for storing and safekeeping of the goods and the fees for
entrance and clearance. No port charges shall be collected on vessels entering
through stress of weather, duress or other urgent necessities.
Sec. 1214. Entry and Clearance of Vessels of a Foreign Government. The entry
and clearance of transport or supply ship of a foreign government shall be in
accordance with the agreement by and between the Philippines and the
foreign government.
Sec. 1215. Clearance of Vessel for Foreign Port. Before a clearance shall be
granted to any vessel bound to a foreign port, the master or the agent thereof
shall present to the District Collector the following properly authenticated
documents:ChanRoblesVirtualawlibrary
(a) A bill of health from the quarantine officer or officer of the public health
service in the port;cralawlawlibrary
(b) Three (3) copies of the manifest of export cargo, one of which, upon
certification by the customs officer as to the correctness of the copy, shall be
returned to the master;cralawlawlibrary
(c) Two (2) copies of the passengers list, showing foreigners and other
passengers;cralawlawlibrary
(f) A certificate from the Philippine Postal Corporation to the effect that it
received timely notice of the sailing of the vessel: Provided, That the District
Collector shall not permit any vessel to sail for a foreign port if the master or
agent thereof refuses to receive bags of mail delivered to the same by the
Philippine Postal Corporation for transport upon reasonable compensation. In
case the Postmaster General and the master or agent do not come to an
agreement concerning the amount of the compensation to be paid for the
carriage of the mail, the matter shall be submitted for decision to a Board of
Referees to be composed of three (3) members appointed, respectively, by the
Philippine Postal Corporation, the agency of the company to which the vessel
concerned belongs, and the Bureau, who shall fix a reasonable rate of
compensation.
Sec. 1216. Detention of Warlike Vessel Containing Arms and Munitions. District
Collectors shall report to the proper authorities or detain any vessel of
commercial registry manifestly built for warlike purposes and about to depart
from the Philippines with a cargo consisting principally of arms and munitions of
war,
(a) All cargoes conveyed on the vessel, destined for the Philippines, have been
duly discharged or accounted for;cralawlawlibrary
(b) A true copy of the outgoing cargo manifest has been furnished to the
Bureau;cralawlawlibrary
(d) If clearing without passenger, the vessel will not carry upon the instant
voyage, from the Philippine port; any passenger of any class, or other person not
entered upon the ship's declaration.
Sec. 1218. Extension of Time for Clearance. At the time of clearance, the
master of a departing vessel shall be required to indicate the time of intended
departure, and if the vessel should remain in port forty-eight (48) hours after the
time indicated, the master shall report to the District Collector for an extension of
time of departure, and without such extension the original clearance shall be
nullified.
(B) Scheduled Arrivals. Such advance notice will not be required in the case of
an airline arriving in accordance with the regular schedule filed with the District
Collector for the Customs District in which the place of first landing area is
situated, and also with the quarantine and immigration officers-in-charge of
such place.
Sec. 1221. Report of Arrival and Entry of Aircraft. The pilot-in-command of any
aircraft arriving from a foreign port or place shall immediately report its arrival to
the District Collector at the airport of entry or to the customs officer detailed to
meet the aircraft at the place of first landing. Upon arrival, such aircraft shall be
boarded by a quarantine officer, and after pratique or health clearance is
granted, shall be boarded by a customs officer; subsequently no person shall be
permitted to board or leave the aircraft without the permission of the customs
officer. The pilot-in-command or any other authorized agent of the owner or
operator of the aircraft shall make the necessary entry. No such aircraft shall,
without previous permission from the District Collector, depart from the place of
first landing or discharge goods, passengers, or baggage.
Sec. 1222. Documents Required in Making Entry for Aircraft. (a) For the purpose
of making entry, there shall be presented to the boarding customs officer four
(4) copies of a general declaration which shall contain the following data,
unless any of such data is otherwise presented on a separate official
form:ChanRoblesVirtualawlibrary
(7) Cargo manifest showing information as to airway bill number, the number of
packages related to each airway bill number, nature of goods, destination, and
gross weight, together with a copy of each airway bill securely attached
thereto;cralawlawlibrary
(b) The general declaration shall be written in English and duly signed by the
pilot-in-command or operator of the aircraft, or the authorized agent. The
section on health, and customs clearances, however, shall be signed only by
the pilot-in-command or when necessary, by a crew member when the general
declaration itself has been signed by a non-crew member. If the aircraft does
not carry cargoes or passengers, such facts must be shown in the manifest.
(c) A cargo manifest shall in no case be changed or altered after entry of the
aircraft, except by means of an amendment by the pilot-in-command or
authorized agent thereof, under oath, and attached to the original
manifest: Provided, That after the invoice and/or goods declaration covering an
importation have been received and recorded in the office of the appraiser, no
amendment shall be allowed except when it is obvious that a clerical error or
any other discrepancy has been committed without any fraudulent intent in the
preparation of the manifest, the discovery of which could not have been made
until after complete examination of the importation.
Sec. 1223. Manifests for the Commission on Audit (COA) and District Collector.
Upon arrival of an aircraft from a foreign port, the Bureau shall provide
electronic copies of the manifest to the Chairperson of the COA. The master
shall immediately present to the District Collector the original copy of the cargo
manifest properly endorsed by the boarding officer, and for inspection, the
aircraft's register or other documents in lieu thereof, together with the clearance
and other papers granted to the aircraft at the port of departure for the
Philippines.
Sec. 1224. Clearance of Aircraft for Foreign Port. (a) Any aircraft bound to a
foreign port shall, before departure, be granted clearance by the Commissioner
at an airport of entry where such aircraft has been authorized to make its
landing; and
(7) Export cargo manifest showing information as to airway bill number, the
number of packages related to each airway bill number, nature of goods,
destination, and gross weight, together with a copy of each airway bill securely
attached thereto; and
(a) All cargoes conveyed on the aircraft destined to the Philippines have been
duly discharged and accounted for; and
(b) The aircraft has not received nor will convey any letter or packet not
enclosed in properly stamped envelope sufficient to cover postage, except
those relating to the cargo of the aircraft, and that there was delivery to the
proper foreign port of all mails placed on board said aircraft before clearance
from the Philippines.
If an aircraft is cleared to depart without passengers, the aircraft shall not carry
any passenger thereon.
A record shall be made and kept open to public inspection in every customs
office at an airport of entry of the dates of arrival and entry of all aircraft.
CHAPTER 3
Third parties transacting with the Bureau shall be liable for acts committed in
violation of this Act and related laws.
CHAPTER 4
(a) Release of the goods upon provision of the minimum information necessary
to identify the goods and permit the subsequent completion of the final goods
declaration;cralawlawlibrary
(ii) Use of commercial records to self-assess their duty and tax liability and, where
appropriate, to ensure compliance with other customs requirements; and
Sec. 1228. Trade Facility for AEO. The Secretary of Finance shall, upon the
recommendation of the Commissioner, issue the necessary
rules:ChanRoblesVirtualawlibrary
(a) To supervise and regulate the conduct and operations of the AEO s,
consistent with international best practices, the World Customs Organization
(WCO) framework of standards to secure and facilitate global trade, and other
international conventions and agreements;cralawlawlibrary
(b) To develop a trade facilitation program for AEOs and other authorized
persons consistent with international best practices and international
conventions and agreements; and
(c) To recognize existing facilities where the authority or right to operate AEOs
has been granted by the relevant government agency or regulator through a
contract, where the Bureau shall:ChanRoblesVirtualawlibrary
(iii) Ensure that the term of the certificate of authority shall be coterminous with
the applicable government contract or any extension thereof.
The Bureau shall implement the provisions of this chapter without interfering, or
impeding AEO operations as well as existing operations of wharves, container
yards, container freight stations, warehouses, examination areas and other
facilities located in customs territory and/or in airports and seaports. The Bureau
shall likewise ensure that any subsequent rules, regulations, orders or
memoranda issued in relation to AEOs shall be consistent with the appropriate
government agency's or regulator's prevailing operating procedures and
international hest practices.
TITLE XIII
Sec. 1300. Customs Dues, Fees and Charges. For services rendered and
documents issued by the Bureau, dues, fees and charges shall be collected as
may be provided under existing regulations issued by the Secretary of Finance,
upon the recommendation of the Commissioner.
Sec. 1301. General Provision on the Authority to Increase or Decrease Dues, Fees
and Charges. The Secretary of Finance may, upon the recommendation of the
Commissioner, increase or decrease the dues, fees and charges collectible by
the Bureau to protect the interest of the government.
TITLE XIV
CHAPTER 1
(a) Imprisonment of not less than thirty (30) days and one (1) day but not more
than six (6) months, or a fine of not less than twenty-five thousand pesos
(P25,000.00) but not more than seventy-five thousand pesos (P75,000.00), or
both, if the appraised value of the goods unlawfully imported, to be determined
in the manner prescribed under this Act, including duties and taxes, of the
goods unlawfully imported does not exceed two hundred fifty thousand pesos
(P250,000.00);cralawlawlibrary
(b) Imprisonment of not less than six (6) months and one (1) day but not more
than one (1) year, or a fine of not less than seventy-five thousand pesos
(P75,000.00) but not more than one hundred fifty thousand pesos (P150,000.00),
or both, if the appraised value of the goods unlawfully imported, to be
determined in the manner prescribed under this Act, including duties and taxes,
exceeds two hundred fifty thousand pesos (P250,000.00) but not more than five
hundred thousand pesos (P500,000.00);cralawlawlibrary
(c) Imprisonment of not less than one (1) year and one (1) day but not more
than three (3) years, or a fine of not less than one hundred fifty thousand pesos
(P150,000.00) but not more than three hundred thousand pesos (P300,000.00) or
both, if the appraised value of the goods unlawfully imported, to be determined
in the manner prescribed under this Act, including duties and taxes, exceeds
five hundred thousand pesos (P500,000.00) but not more than one million pesos
(P 1,000,000.00);cralawlawlibrary
(d) Imprisonment of not less than three (3) years and one (1) day but not more
than six (6) years, or a fine of not less than three hundred thousand pesos
(P300,000.00) but not more than one million five hundred thousand pesos (P
1,500,000.00), or both, if the appraised value of the goods unlawfully imported,
to be determined in the manner prescribed under this Act, including duties and
taxes, exceeds one million pesos (P1,000,000.00) but not more than five million
pesos (P5,000,0 00.00);cralawlawlibrary
(e) Imprisonment of not less than six (6) years and one (1) day but not more than
twelve (12) years, or a fine of not less than one million five hundred thousand
pesos (P 1,500,000.00) but not more than fifteen million pesos (P15,000,000.00), or
both, if the appraised value of the goods unlawfully imported, to be determined
in the manner prescribed under this Act, including duties and taxes, exceeds
five million pesos (P5,000,000.00) but not more than fifty million pesos
(P50,000,000.00);cralawlawlibrary
(f) Imprisonment of not less than twelve (12) years and one (1) day but not more
than twenty (20) years, or a fine of not less than fifteen mill-inn pesos
(P15,000,000.00) but not more than fifty million pesos (P50,000,000.00), or both, if
the appraised value of the goods unlawfully imported, to be determined in the
manner prescribed under this Act, including duties and taxes, exceeds fifty
million pesos (P50,000,000.00) but not more than two hundred million pesos
(P200,000,000.00);cralawlawlibrary
(h) The penalty of prision mayor shall be imposed when the crime of serious
physical injuries shall have been committed, and the penalty of reclusion
perpetua shall be imposed when the crime of homicide shall have been
committed by reason or on the occasion of the unlawful importation.
When, upon trial for violation of this section, the defendant is shown to have had
possession of the goods in question, possession shall be deemed sufficient
evidence to authorize conviction unless the defendant shall explain the
possession to the satisfaction of the court: Provided, That each act of unlawful
importation or exportation shall be deemed as a separate offense: Provided,
however, That payment of the tax due after apprehension shall not constitute a
valid defense in any prosecution, under this section: Provided, further, That
outright smuggling shall also be punishable under this section: Provided,
finally,That the rights and privileges provided in this Act for the importers,
consignees, exporters, service providers, third parties and other third parties who
committed this offense shall be revoked.
Sec. 1402. Failure or Refusal of Party to Give Evidence or Submit Documents for
Assessment. When the owner, importer or consignee of any imported goods, or
the agent of either, fails or refuses, upon lawful demand in writing by any
customs officer to appear, lawfully depose, or submit to examination or to
answer any material question or refuses to produce records, accounts or
invoices in possession pertaining to the value, classification or disposition of the
goods in question and deemed material in assessing the same, the District
Collector shall assess a surcharge of twenty percent (20%) on the dutiable value
of the goods which is the subject of the importation.
Sec. 1403. Other Fraudulent Practices Against Customs Revenue. Any person
who makes or attempts to make any entry of imported or exported goods by
means of any false or fraudulent statement, document or practice or knowingly
and willfully files any false or fraudulent claim for payment of drawback or
refund of duties shall, for each act, be punished in accordance with the
penalties prescribed in Section 1401 of this Act.
Sec. 1404. Failure to Declare Baggage. Whenever dutiable goods are not
declared by any person arriving within the Philippines, such goods shall be
seized and the person may obtain release of such goods, if not imported
contrary to any law, upon payment of a surcharge equivalent to thirty percent
(30%) of the landed cost of such goods, in addition to all duties, taxes and other
charges due. Nothing in this section shall preclude the filing of criminal action
against the offender.
Sec. 1407. Unlawful Boarding or Leaving of Vessel or Aircraft. If, upon arrival at
the Philippine port, any master of a vessel or pilot-in-command of an aircraft
engaged in a foreign trade permits any person to board or leave the vessel or
aircraft without the permission of the customs officer-in-charge, the owner or
operator of such vessel or aircraft shall he liable for a fine of not less than one
hundred thousand pesos (100,000.00) but not more than three hundred
thousand pesos (P300,000.00).
Sec. 1408. Unloading of Cargo Before Arrival at Port of Entry. If, upon the arrival
within the limits of any Customs District of the Philippines of any vessel or aircraft
engaged in foreign trade, the master or pilot-in-command thereof permits any
part of the cargo to be unloaded before arrival at the port of entry, and without
authority from a proper customs officer, the owner, operator, or agent of such
vessel or aircraft shall he liable for a fine of not less five hundred thousand pesos
(P500,000.00) but not more than two million pesos (P2,000,000.00): Provided, That
no fine shall accrue upon satisfactory proof to the proper District Collector that
the unloading was rendered necessary by stress of weather, accident or other
necessity: Provided, however, That the fine imposed herein shall be without
prejudice to the application of fines or penalties provided under Section 1401 of
this Act.
Sec. 1409. Unloading of Cargo at Improper Time or Place After Arrival. The
owner or operator of any vessel or aircraft from which cargo is discharged upon
arrival in the Philippines at a time or place other than that designated by the
District Collector, shall be fined not less one hundred thousand pesos
(P100,000.00) but not more than three hundred thousand pesos (P300,000.00):
Provided, That no fine shall accrue upon satisfactory proof to the proper District
Collector that the unloading was rendered necessary by stress of weather,
accident or other necessity.
Sec. 1410. Failure to Exhibit or Deposit Documents. When the master of a vessel
or pilot-in-command of an aircraft engaged in foreign trade fails to submit to
the District Collector at the time of entry of the vessel or aircraft the register or
other documents in lieu thereof, together with the clearance and other
documents granted by the customs officers to the vessel or aircraft at the last
foreign port of departure, or fails to exhibit any certificate or other documents
required to be then exhibited, the owner or operator of such vessel or aircraft
shall be liable for a fine of not less than one hundred thousand pesos
(P100.000.00) but not more than three hundred thousand pesos (P300,000.00).
If the transit time from port of origin to port of entry is at least seventy-two (72)
hours, the shipping or forwarding agent of the carrier or the vessel who fails to
submit the manifest at least twenty-four (24) hours before entry shall likewise be
liable for a fine of not less than one hundred thousand pesos (P100,000.00) but
not more than three hundred thousand pesos (P300,000.00).
The owner, operator, or agent of a vessel or aircraft shall be liable for the
payment of the same fine when a package or goods listed in the manifest does
not tally materially in character or otherwise with the description thereof in the
manifest.
Sec. 1417. False Statement of Vessel's or Aircraft's Destination. When the master
or pilot-in-command of a vessel or aircraft loaded with goods shall make a false
statement as to the next destination of such vessel or aircraft when that
information is required by a customs officer, the owner or operator of such vessel
or aircraft shall be liable for a fine of not less than one hundred thousand pesos
(P100,000.00) but not more than three hundred thousand pesos (P300,000.00).
The arrival of a vessel or aircraft at a different port other than the one it had
been originally authorized and cleared for without having been impelled to do
so by necessity, shall be prima facie proof that the original statement of the
actual destination of the vessel or aircraft was false.
Sec. 1418. Affixing Seals. Any person who, without authority, affixes or attaches
a customs seal, fastening, or any mark, or fastening purporting to be a customs
seal, to any vessel, aircraft, vehicle, warehouse, or package, shall be penalized
with imprisonment of not less than six (6) months and one (1) day but not more
than one (1) year, and shall be liable for a fine of not less than one hundred
thousand pesos (P100,000.00) but not more than three hundred thousand pesos
(P300,000.00). If the offender is a foreigner, the offender shall be deported after
serving the sentence. If the offender is a public officer or employee, the
offender shall suffer an additional penalty of perpetual disqualification to hold
public office and disqualification from exercising the right to vote and to
participate in any election.
Sec. 1419. Breaking of Seal Placed by Customs Officers. If any seal placed by a
customs officer upon any vessel or aircraft or compartment thereof, or upon any
box, trunk or other package of goods on board is broken, the owner, operator,
or agent of the vessel or aircraft shall be liable for a fine of not less than one
hundred thousand pesos (P100,000.00) but not more than three hundred
thousand pesos (P300,000.00) for each broken or destroyed seal.
Sec. 1421. Removal, Breakage, and Alteration of Marks. Any person who,
without authority, willfully removes, breaks, injures, defaces or alters any customs
seal or other fastening or mark placed upon any vessel, vehicle, on land, sea or
air, warehouse or package containing merchandise or baggage in bond or in
customs custody, shall be punished with the penalty prescribed in Section 1420
hereof.
Sec. 1424. Removing Goods from Customs Custody. Any person who enters
any warehouse, or any vehicle loaded with or containing merchandise with
intent to unlawfully remove therefrom any merchandise or baggage in such
vessel, vehicle or warehouse or otherwise in customs custody or control, or any
person who receives or transports any merchandise or baggage unlawfully
removed from any such vessel, vehicle or warehouse, or shall aid or abet such
removal, shall suffer the penalties provided in Section 1401 hereof.
Sec. 1425. Failure to Pay Duties, Taxes and Other Charges. For failure to pay
the duties, taxes and other charges of an assessment within fifteen (15) days
from the date of final assessment, a surcharge of ten percent (10%) of the total
assessed amount or balance thereon shall be added and collected, which
surcharge shall be increased to twenty-five percent (25%) if the delinquency
lasts for more than one (1) year.
Sec. 1427. Failure to Keep Importation Records and Full Access to Customs
Officers. Any person who fails to keep all the records of importations or books
of accounts, business and computer systems and all customs commercial data
in the manner prescribed under this Act, shall be punished with imprisonment of
not less than three (3) years and one (1) day but not more than six (6) years
and/or a fine of one million pesos (Pl,000,000.00). This penalty shall likewise be
imposed against importers and brokers who deny an authorized customs officer
full and free access to such records, books of accounts, business and computer
systems, and all customs commercial data including payment records, without
prejudice to the imposition of the administrative sanctions by the Bureau against
contumacious importers, including the authority to hold delivery or release of
their imported goods.
Sec. 1429. Other Offenses. The owner or operator of a vessel, aircraft or train
shall be liable for a fine for the following acts:ChanRoblesVirtualawlibrary
(a) For anchoring at any dock, pier, wharf, quay, or bulkhead other than a port
of entry, a fine of not less than five hundred thousand pesos (P500,000.00) but
not more than one million pesos (P1,000,000.00) for overseas
vessels;cralawlawlibrary
(b) For dumping of garbage or slops over the sides of the vessel within three (3)
miles from the nearest coastline, a fine of not less than one million pesos
(P1,000,000.00) but not more than ten million pesos
(P10,000,000.00);cralawlawlibrary
(c) For dumping or causing to spread crude oil, kerosene, or gasoline in the bay
or at the piers within three (3) miles from the nearest coastline, a fine of not less
than one million pesos (P1,000,000.00) but not more than ten million pesos (P
10,000,000.00) for each offense;cralawlawlibrary
(d) For loading gasoline or any other petroleum products at a place other than
that designated, by the regulations, a fine of not less than five hundred
thousand pesos (P500,000.00) but not more than one million pesos
(P1,000,000.00) for each offense;cralawlawlibrary
(e) For causing the emission and spread of harmful gas, fumes and chemicals, a
fine of not less than one million pesos (P1,000,000.00) but not more than ten
million pesos (P10,000,000.00) for each offense; and
(f) For transporting hazardous waste, radioactive waste and other toxic
substances as provided under the Basel Convention and Republic Act No. 6969,
otherwise known as the "Toxic Substances and Hazardous and Nuclear Wastes
Control Act of 1990", the penalty shall be forfeiture of the vessel in favor of the
government.
The fines imposed herein shall be without prejudice to the application of fines or
penalties provided under special laws and regulations.
Sec. 1430. Violations of this Act and Rules and Regulations in General. Any
person who violates any other provision of this Act or the rules and regulations
issued pursuant thereto, shall be penalized with imprisonment of not less than
thirty (30) days and one (1) day but not more than one (1) year, or be liable for
a fine of not less than one hundred thousand pesos (P100,000.00) but not more
than three hundred thousand pesos (P300,000.00), or both. If the offender is a
foreigner, the offender shall be deported after serving the sentence. If the
offender is a public officer or employee, the offender shall be disqualified from
holding public office, from exercising the right to vote and to participate in any
public election for ten (10) years.
CHAPTER 2
Sec. 1431. Statutory Offenses of Officers and Employees. Every officer, agent,
or employee of the Bureau or of any other agency of the government charged
with the enforcement of the provisions of this Act, who shall be found guilty of
any delinquency as described below shall be penalized with imprisonment of
not less than six (6) years and one (1) day but not more than twelve (12) years,
and perpetual disqualification to hold public office, from exercising the right to
vote and to participate in any public election and a fine of not less than five
hundred thousand pesos (P500,000.00), but not more than one million pesos
(P1,000,000.00):ChanRoblesVirtualawlibrary
(b) Knowingly demanding other or greater sums that are authorized by law or
receive any fee, compensation, or reward except as by law prescribed, for the
performance of any duty;cralawlawlibrary
(c) Willfully neglecting to give receipts, as required by law, for any sum collected
in the performance of duty, or who willfully neglect to perform any of the duties
enjoined bylaw;cralawlawlibrary
(f) Negligently or designedly permitting the violation of the law by any other
person;cralawlawlibrary
(g) Making or signing for any false entry or entries in any book, making or signing
any false certificate or return in any case where the law requires the making by
them of such entry certificate or return;cralawlawlibrary
All the benefits due from service in the government, including separation and
retirement benefits, of an officer, agent, or employee of the Bureau or of any
other agency of the government charged with the enforcement of the
provisions of this Act found guilty of the foregoing violations shall be forfeited.
Sec. 1432. Failure to Report Fraud. Any employee of the Bureau who has
knowledge of any fraud committed against the government pertaining to
customs revenue, and who fails to report all information relative thereto to the
District Collector, shall be penalized with imprisonment of not less than six (6)
years and one (1) day but not more than twelve (12) years and a fine of not less
than five hundred thousand pesos (P500,000.00) but not more than one million
pesos (1,000,000.00). The offender shall suffer the additional penalty of perpetual
disqualification to hold public office, to vote and to participate in any election.
All the benefits of the offender due from service in the government, including
separation and retirement benefits, shall be forfeited.
Sec. 1433. Liability for Other Offenses. The fines and penalties imposed in this
chapter shall be without prejudice to the application of fines or penalties
provided under Chapter 1 of this title and special laws and regulations.
TITLE XV
MISCELLANEOUS PROVISIONS
Sec. 1500. Information, Decisions, and Rulings. The Bureau shall ensure that all
information of general application pertaining to customs, including revisions or
amendments thereto, shall be available to the general public.
Sec. 1501. Period to Issue Ruling. Unless otherwise provided in this Act, the
issuing authority shall act on the application for ruling within thirty (30) days from
receipt of the application and supporting documents as may be required by
regulation. Within three (3) days from issuance of a ruling, the issuing authority
shall notify the requesting party of such ruling.
Sec. 1505. Authority of Official to Administer Oaths and Take Testimony. The
Commissioner, District Collectors and their deputies, and other customs officers
especially deputized by the District Collector shall have authority to administer
oaths and take testimony in connection with any matter within the jurisdiction of
the Bureau and, in connection therewith, may require the production of
relevant papers, documents, books and records in accordance with law.
Sec. 1506. General Security. In cases where securities are required to be given
under the provisions of this Act and related customs laws, the District Collector,
instead of requiring separate special security where transactions of a particular
party are numerous, may accept general security extending over such periods
of time and covering such transactions of the party in question as may be
satisfactory to the District Collector.
Sec. 1507. Security. The Bureau shall prescribe the forms and amount of
security required to guarantee the payment of duties and taxes and other
obligations provided for in this Act.
Any party required to provide security shall have the option to choose from any
form of security prescribed by the Bureau. The Bureau may not require security if
satisfied that an obligation to the Bureau will be fulfilled, but shall require and
accept a general security from declarants who regularly declare goods at
different offices in customs territory under such terms and conditions as maybe
determined by the Commissioner.
The required amount of security shall be the lowest possible and shall not
exceed the amount of imposable duties, taxes and other charges.
When the obligation under which the security was required has been satisfied,
the security shall be discharged immediately.
Sec. 1510. District Collector Not Liable in Respect to Ruling in Customs Cases.
Every District Collector or other officials of the Bureau shall not be in any way
personally liable on account of any official ruling or decision as to which the
person claiming to be aggrieved has the right to obtain either an administrative
or judicial review. Except for misdelivery of goods, a District Collector may not, in
the absence of abuse of authority, be liable to any person for any loss
occasioned either by the official act or the acts of the subordinates.
TITLE XVI
CHAPTER I
TARIFF COMMISSION
Sec. 1600. Chief Officials of the Tariff Commission and Qualifications. The
officials of the Tariff Commission shall consist of a Chairperson and two (2)
Commissioners to be appointed by the President of the Philippines. The
Chairperson and the Commissioners shall be natural-born citizens of the
Philippines, of good moral character and proven integrity, and who, by
experience and academic training possess the necessary qualifications requisite
for developing expert knowledge of tariff and trade related matters. During their
terms of office, the Chairperson and the Commissioners shall not engage in the
practice of any profession, or intervene directly or indirectly in the management
or control of any private enterprise which may, in anyway, be affected by the
functions of their office. They shall not be, directly or indirectly, financially
interested in any contract with the government, or any subdivision or
instrumentality thereof.
Sec. 1602. Official Seal. The Commission is authorized to adopt an official seal.
Sec. 1603. Functions of the Commission. The Commission shall have the
following functions:ChanRoblesVirtualawlibrary
(b) Study the impact of tariff policies and programs on national competitiveness
and consumer welfare in line with the economic objectives of the
government;cralawlawlibrary
(d) Issue advance rulings on tariff classification of imported goods and render
rulings on disputes over tariff classification of goods pursuant to Section 1100 of
this Act, except in cases involving goods on which the Commission has provided
advance ruling on tariff classification;cralawlawlibrary
(e) Provide the President and Congress with independent analysis, information
and technical support on matters related to tariff and nontariff measures
affecting Philippine industries and exports for policy guidance;cralawlawlibrary
(f) Analyze the nature and composition, and the classification of goods
according to tariff commodity classification and heading number for customs
and other related purposes, which information shall be furnished the NEDA, DTI,
DA, DOF, DENR, and BSP;cralawlawlibrary
(g) Review the trade agreements for negotiation and trade agreements
entered into by the Philippines and make recommendations, if necessary, on
the consistency of the terms of the agreements with the national policy
objectives;cralawlawlibrary
(h) Conduct public consultations and public hearings pursuant to its functions;
and
Sec. 1604. Reports of the Commission. The Commission shall place at the
disposal of the President and any Member of the Congress of the Philippines all
information at its command. It shall conduct such investigation and submit
reports as may be required by the President and the Congress of the Philippines.
It shall likewise report to the President and Congress on the first Monday of
December of each year and hereafter, a statement of methods adopted and a
summary of all reports made during the year.
Sec. 1606. Sworn and Verified Statements. The Commission may order the
taking of sworn statements at any stage of any proceeding or investigation
before it. The sworn statements must be made before a person duly authorized
to administer oaths.
CHAPTER 2
FLEXIBLE TARIFF
Sec. 1608. Flexible Clause. (a) In the interest of the general welfare and
national security, and, subject to the limitations prescribed under this Act, the
President, upon the recommendation of the NEDA, is hereby empowered
to:ChanRoblesVirtualawlibrary
(1) Increase, reduce, or remove existing rates of import duty including any
necessary change in classification. The existing rates may be increased or
decreased to any level, in one or several stages, but in no case shall the
increased rate of import duty be higher than a maximum of one hundred
percent (100%) ad valorem; (2) Establish import quotas or ban imports of any
commodity, as may be necessary; and
(3) Impose an additional duty on all imports not exceeding ten percent (10%) ad
valorem whenever necessary: Provided, That upon periodic investigations by the
Commission and recommendation of the NEDA, the President may cause a
gradual reduction of rates of import duty granted in Section 1611 of this Act,
including those subsequently granted pursuant to this section.
(c) The power of the President to increase or decrease rates of import duty
within the limits fixed in subsection (a) hereof shall include the authority to
modify the form of duty. In modifying the form of duty, the corresponding ad
valorem or specific equivalents of the duly with respect to imports from the
principal competing foreign country for the most recent representative period
shall be used as basis.
(d) Any order issued by the President pursuant to the provisions of this section
shall take effect thirty (30) days after promulgation, except in the imposition of
additional duty not exceeding ten percent (10%) ad valorem which shall take
effect at the discretion of the President.
(e) The power delegated to the President as provided for in this section shall be
exercised only when Congress is not in session.
The NEDA shall promulgate rules and regulations necessary to carry out the
provisions of this section.
Sec. 1609. Promotion of Foreign Trade. (a) For the purpose of expanding
foreign markets for Philippine products as a means of assisting in the economic
development of the country, in overcoming domestic unemployment, in
increasing the purchasing power of the Philippine peso, and in establishing and
maintaining better relations between the Philippines and other countries, the
President, shall, from time to time:ChanRoblesVirtualawlibrary
(b) The duties and other import restrictions as modified in subsection (a) of this
section, shall apply to goods which are the growth, produce, or manufacture of
the specific country, whether imported directly or indirectly, with which the
Philippines has entered into a trade agreement: Provided, That the President
may suspend the application of any concession to goods which are the growth,
produce, or manufactured product of the specific country because of acts or
policies which tend to defeat the purposes set in this section, including the
operations of international cartels; and the duties and other import restrictions as
negotiated shall be in force and effect from and after such time as specified in
the order, without prejudice to the Philippine commitments in any ratified
international agreement or treaty.
(c) Nothing in this section shall be construed to give any authority to cancel or
reduce in any manner the indebtedness of any foreign country to the Philippines
or any claim of the Philippines against any foreign country.
(d) Before any trade agreement is concluded with any foreign government or
instrumentality thereof, reasonable public notice of the intention to negotiate an
agreement with such government or instrumentality shall be given in order that
interested persons may have an opportunity to present their views to the
Commission. The Commission shall seek information and advice from the DTI, DA,
DOF, DENR, DFA and BSP, and from such other sources as it may deem
appropriate.
(1) The Commission shall determine whether or not the domestic industry has
suffered or is being threatened with injury and whether or not the wholesale
prices at which the domestic products are sold are reasonable, taking into
account the cost of raw materials, labor, overhead, a fair return on investment,
and the overall efficiency of the industry.
(2) The NEDA shall evaluate the report of the Commission and submit
recommendations to the President.
(3) Upon receipt of the report of the findings and recommendations of the
NEDA, the President may prescribe adjustments in the rates of import duties,
withdraw, modify or suspend, in whole or in part, any concession under any
trade agreement, establish import quota, or institute such other import
restrictions, as the NEDA recommends to be necessary in order to fully protect
domestic industry and the consumers, subject to
the condition that the wholesale prices of the domestic products shall be
reduced to, or maintained at, the level recommended by the NEDA unless, for
good cause shown, an increase thereof, as recommended by the NEDA is
authorized by the President. Should increases be made without such authority,
the NEDA shall immediately notify the President who shall allow the importation
of competing-products in such quantities as to protect the public from the
unauthorized increase in wholesale prices.
(f) This section shall not prevent the effectivity of any executive agreement or
any future preferential trade agreement with any foreign country.
(g) The NEDA and the Commission shall promulgate such reasonable
procedures, rules and regulations as they may deem necessary to execute their
respective functions under this section.
CHAPTER 3
Sec. 1610. General Rules for the Interpretation (GRI). The classification of goods
and its tariff nomenclature as provided pursuant to this Act shall be governed by
the following principles:ChanRoblesVirtualawlibrary
(1) The titles of sections, chapters and subchapters are provided for easy
reference only. For legal purposes, classification shall be determined according
to the terms of the headings and any relative section or chapter notes and,
provided such headings or notes do not otherwise require, according to the
following1 provisions:ChanRoblesVirtualawlibrary
(3) When by application of Rule 2(b) or for any other reason, goods are, prima
facie, classifiable under two (2) or more headings, classification shall be
effected as follows:ChanRoblesVirtualawlibrary
(a) The heading which provides the most specific description shall be preferred
to headings providing a more general description. However, when two (2) or
more headings each refer to part only of the materials or substances contained
in mixed or composite goods or to part only of the items in a set put up for retail
sale, those headings are to be regarded as equally specific in relation to those
goods, even if one of them gives a more complete or precise description of the
goods.
(c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be
classified under the heading which occurs last in numerical order among those
which equally merit consideration;cralawlawlibrary
(4) Goods which cannot be classified in accordance with the above Rules shall
be classified under the heading appropriate to the goods to which they are
most akin.
(5) In addition to the foregoing provisions, the following Rules shall apply with
respect to the goods referred to therein:ChanRoblesVirtualawlibrary
(a) Camera cases, musical instrument cases, gun cases, drawing instrument
cases, necklace cases and similar containers, specially shaped or fitted to
contain specific goods or set of goods, suitable for long-term use and presented
with the goods for which they are intended, shall be classified with such goods
when of a kind normally sold therewith. The Rule does not, however, apply to
containers which give the whole its essential character; and
(b) Subject to the provisions of Rule 5(a), packing materials and packing
containers presented with the goods therein shall be classified with the goods if
they are of a kind normally used for packing such goods. However, this provision
does not apply when such packing materials or packing containers are clearly
suitable for repetitive use.
Sec. 1611. Tariff Nomenclature and Rates of Impart Duty. The provisions of
Section 104 on Rates of Import Duty of Presidential Decree No. 1464, otherwise
known as the Tariff and Customs Code of the Philippines of 1978, as amended,
specifically providing for the tariff sections, chapters, headings and subheadings
and the rates of import duty, shall still apply and shall supplement this Act. There
shall be levied, collected and paid upon all imported goods the rates of duty
indicated thereon except as otherwise specifically provided for in this
Act: Provided, That the maximum rate shall not exceed one hundred percent
(100%) ad valorem.
The rates of duty provided or subsequently fixed pursuant to Sections 1608 and
1609 of this Act shall be subject to periodic investigation by the Tariff Commission
and may be revised by the President, upon the recommendation of the NEDA.
It shall also apply to all products, whether imported directly or indirectly, of all
foreign countries, which do not discriminate against Philippine export products.
An additional one hundred percent (100%) across-the-board duty shall be
levied on the products of any foreign country which discriminates against
Philippine export products.
Sec. 1612. Tariff Nomenclature and Rates of Export Duty. The provisions of
Section 514 on Export Products Subject to Duty and Rates of Presidential Decree
No. 1464, otherwise known as the Tariff and Customs Code of 1978, as
amended, specifically providing for the export products subject to duty and
rates, shall still apply and shall supplement this Act.
TITLE XVII
(3) Status report on administrative, civil and criminal actions initiated against
persons.
TITLE XVIII
FINAL PROVISIONS
Sec. 1800. Implementing Rules and Regulations. The Secretary of Finance shall,
upon the recommendation of the Commissioner, promulgate the necessary
rules and regulations for the effective implementation of this Act.
Sec. 1803. Repealing Clause. Presidential Decree No. 1464, otherwise known as
the Tariff and Customs Code of the Philippines of 19785 as amended, and
Presidential Decree No. 1853 which require any applicant for letter of credit
covering imports to deposit the full amount of duties due on the importation, are
hereby expressly repealed. All other laws, acts, presidential decrees, executive
orders, rules and regulations or parts thereof inconsistent with the provisions of
this Act are hereby expressly repealed, amended or modified accordingly.
Sec. 1804. Separability Clause. If any provision of this Act is declared invalid or
unconstitutional, the remaining provisions or parts shall remain in full force and
effect.
Sec. 1805. Effectivity. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.
Approved:chanroblesvirtuallawlibrary
This Act which is a consolidation of House Bill No. 5525 and Senate Bill No. 2968
was finally passed by the House of Representatives and the Senate on February
2, 2016.