Cmta Provision

CTMA-TCCP-RKC CORRELATION MATRIX AND RATIONALE OF AMENDMENTS
CTMA Provision TCCP Provision RKC/ASB Provision Rationale/ Remarks

TITLE 1. PRELIMINARY PROVISIONS
CHAPTER 1. SHORT TITLE
SECTION 100. Short Title. This Act shall be known as the New title
Customs and Tariff Modernization Act of 2008.
CHAPTER 2. GENERAL AND COMMON PROVISIONS New Chapter. The idea of a general
and common provisions is to be able
to reflect as basic customs policy the
standards mandated in the General
Annex of the RKC with which national
legislation is yet to be compliant.
Some standards with which current
national legislation/regulation is
compliant were no longer introduced
here.
SEC. 101. Declaration of Policy. RKC Preamble and proposed provisions to New provision
reflect other mandate / function of BOC
It is the declared policy of the State to promote and secure
international trade, protect government revenue, and
modernize customs and tariff administration by:
Developing and implementing programs aimed at

continuously improving customs systems and processes;
Adopting customs policies, rules, and procedures that are

clear, transparent, and consistent with international
agreements and customs best practices;
Establishing a regime of informed compliance for customs

stakeholders by providing easy access to all public
information, not otherwise confidential and for customs use
only, regarding Customs laws, rules and regulations,
administrative policies and guidelines, procedures and
practices that would enable them to fulfill their obligation to
exercise due diligence in dealing with customs;
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Consulting and cooperating, wherever appropriate, with other
government agencies, and the private sector in customs
policy development and implementation;
Providing parties aggrieved by customs action and/or decision

with administrative and judicial appellate remedy;
Utilizing modern techniques in customs administration such as

risk management and post clearance-based controls, and
maximizing the use of information and communication
technology in carrying out the mandate of customs.
SEC. 102. Definition of Terms. SEC 3519 Words and Phrases Defined. - As used in this Code: Lifted from TCCP Section 3519, as revised The terms included in this section are
and the RKC definition of terms based on those in the TCCP and on
As used in this Code: "Foreign Port" means a port or place outside the jurisdiction of the RKC.
the Philippines.
ADMISSION refers to the act of bringing imported articles
into free zone or non-customs territory directly or through "Port of Entry" is a domestic port open to both foreign and
transit. coastwise trade. The term includes principal ports of entry and
subports of entry. A "principal port of entry is the chief port of
Airway Bill (AWB) is a transport document for airfreight used entry of the collection district wherein it is situated and is the
by airlines and international freight forwarders. The holder or permanent station of the Collector of such port. Subports of
consignee of the bill has the right to claim delivery of the entry are under the administrative jurisdiction of the Collector of
goods when they arrive at the port of destination. It is a the principal port of entry of the district. Whenever the term
contract of carriage that includes carrier conditions, such as "Port of Entry" is used herein, it shall include airport of entry.
limits of liability and claims procedures. In addition, it contains
transport instructions to airlines and carriers, a description of "Coastwise ports" are such domestic ports as are open to
the article, and applicable transportation charges. coastwise trade only. These include all ports, harbors and
places not ports of entry.
Appeal means the act by which a person who is aggrieved
by ANY ACT, decision, ORDER or omission of Customs, "Vessels" includes every sort of boat, craft or other artificial
seeks redress before the Bureau of Customs, the Secretary contrivance used, or capable of being used, as a means of
of Finance, or competent court, as the case may be. transportation on water.
"Articles" when used with reference to importation or "Aircraft" includes any weight -carrying devise or structure for
exportation, includes goods, wares and merchandise and in the navigation of the air.
general anything that may be made the subject of importation
or exportation. "Bill of Lading" includes airway bill of lading.
Assessment means the process of determining the amount "Articles", when used with reference to importation or
of duties and taxes and other charges due on imported exportation, includes goods merchandise and in general
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articles. anything that may be made the subject of importation or
exportation.
Bill of Lading (B/L)" is a transport document for ocean freight
issued by shipping lines, carriers AND INTERNATIONAL "Transit cargo" is article arriving at any port from another port
FREIGHT FORWARDERS OR NON VESSEL OPERATING or place noted in the carrier's manifest and destined for
COMMON CARRIER. The holder or consignee of the bill has transshipment to another local port or to a foreign port.
the right to claim delivery of the goods when they arrive at the
port of destination. It is a contract of carriage that includes "Seized property" means any property seized or held for the
carrier conditions, such as limits of liability and claims satisfaction of any administrative fine or for the enforcement of
procedures. In addition, it contains transport instructions to any forfeiture under the Tariff and Customs Code.
shipping lines and carriers, a description of the article, and
applicable transportation charges. "Tariff and customs laws" includes not only the provisions of
this Code and regulations pursuant thereto but all other laws
Breakbulk is non-containerized cargo which is grouped or and regulations which are subject to enforcement by the
consolidated for shipment and broken down or sub-divided Bureau of Customs or otherwise within its jurisdiction.
INTO UNITIZED CARGO, SUCH AS IN PALLETS, OR
PACKED IN BAGS OR BOXES. "Taxes" includes all taxes, fees and charges imposed by the
Bureau of Customs and the Bureau of Internal Revenue.
Carrier means the person actually transporting goods or in
charge of or responsible for the operation of the means of "Secretary" or "Department head" refers, unless otherwise
transport. specified, to the Secretary of Finance.
Checking the GOODS declaration means the action taken "Commission refers to the Tariff Commission.
by customs to satisfy themselves that the GOODS declaration
"Person" whether singular or plural refers to an individual,
is correctly made out and that the supporting documents
corporation, partnership, association company or any other
required fulfill the prescribed conditions for lodgment.
kind of organization.
Clearance means the accomplishment of the customs
"Dutiable value" refers to the value defined in section two
formalities necessary to allow goods to enter for home use,
hundred one.
warehousing, transit or transshipment, or to be exported or
placed under another customs procedure. "Bulk cargo" refers to products in a mass of one commodity not
packaged, bundled, bottled or otherwise packed.
"Coastwise ports" are such domestic ports as are open to
coastwise trade only. These include all ports, harbors, and "Smuggling" is an act of any person who shall fraudulently
places not ports of entry. import or bring into the Philippines, or assist in so doing, any
article, contrary to law or shall receive, conceal, buy, sell or in
Constructive import/export shall refer to the movement of
any manner facilitate the transportation, concealment, or sale
imported goods to and from free zone and customs territory.
of such article after importation, knowing the same to have
CUSTOMS SHALL MEAN THE BUREAU OF CUSTOMS. been imported contrary to law. It includes the exportation of
articles in a manner contrary to law. Articles subject to this
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Customs AND TARIFF law includes not only the provisions paragraph shall be known as smuggled articles.
of this Act and regulations pursuant thereto but all other laws
and regulations which are subject to enforcement by the "Contrabands" are articles of prohibited importation or
Bureau of Customs or otherwise within its jurisdiction. exportation.
Customs office means any customs administrative unit "Duly Registered" as used in this Act, refers to a person,
competent to perform all or any of the functions enumerated natural or juridical, which is registered with the proper
UNDER THE CUSTOMS AND TARIFF LAWS. government agencies, such as the Bureau of Commerce,
Securities and Exchange Commission, NACIDA, Board of
Domestic Port means a port within the Philippine jurisdiction. Investments, Export Incentives Board or Oil Commission as
now or may hereafter be required by law. (R.A. 9135, April 27,
"Foreign Port" means a port or place outside the jurisdiction of 2001)
the Philippines.
Goods declaration means a statement made in the manner

prescribed by the Customs, by which the persons concerned
indicate the Customs procedure to be applied to the imported
goods and furnish the particulars which Customs require for
its application.
Importation means the act of bringing in of articles from a

foreign territory into the Philippine jurisdiction, whether for
home use, warehousing, OR ADMISSION TO FREE ZONE.
However, entry of imported articles into freeport zone shall be
termed admission to distinguish it from imported articles
brought into the customs territory.
International Freight Forwarder refers to persons responsible

for the assembly and consolidation of shipments into single
lot, and assuming, in most cases, the full responsibility for the
international transport of such shipment from point of receipt
to the point of destination.
Non-Vessel Operating Common Carrier (NOVCC) means a

person, including an international freight forwarder, providing
pointto-point international transport of shipments without
operating or owing the means of transport or equipment. An
NVOCC deals with the shipper and issues its own transport
document (e.g. B/L or AWB) even though it commonly
subcontracts the different stages of transport to vessel,
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aircraft, and truck operators.
"Port of Entry" is a domestic port open to both foreign and

coastwise trade. The term includes principal ports of entry
and subports of entry. A "principal port of entry is the chief
port of entry of the collection district wherein it is situated and
is the permanent station of the Collector of such port.
Subports of entry are under the administrative jurisdiction of
the Collector of the principal port of entry of the district.
Whenever the term "Port of Entry" is used herein, it shall
include airport of entry.
Release of goods means the action by Customs to permit

goods undergoing clearance to be placed at the disposal of
the PERSON CONCERNED.
Refund means the return, in whole or in part, of duties and

taxes paid on goods.
Remission means the reduction or dimunition, in whole or in

part, of duties and taxes where payment has not been made;
the term remission is synonymous with abatement.
Security REFERS TO ANY FORM OF GUARANTY, E.G.,

SURETY BOND, CASH BOND, STANDBY LETTER OF
CREDIT, IRREVOCABLE LETTER OF CREDIT, which
ensures the satisfaction of an obligation to Customs.
"Smuggling" is an act of any person who shall fraudulently

import or bring into the Philippines, or assist in so doing, any
article, contrary to law or KNOWING THE ARTICLE TO HAVE
BEEN IMPORTED CONTRARY TO LAW shall receive,
conceal, buy, sell, DISPOSE or in any manner, facilitate the
transportation, concealment, PURCHASE, sale OR
DISPOSITION of such article after importation.[ It includes
the exportation of articles in a manner contrary to law.
Articles subject to this paragraph shall be known as smuggled
article.
"Taxes" includes all taxes, fees and charges imposed by THE

NATIONAL INTERNAL REVENUE CODE and collected by
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the Bureau of Customs.
Transit means the customs procedure under which goods

are transported under customs control from one customs
office to another or to a free zone.
Transshipment means 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.
SEC. 103. When Importation Begins and Deemed SEC 1202 When Importation Begins and Deemed Terminated. En toto
Terminated. - Importation begins when the carrying vessel or aircraft enters
the jurisdiction of the Philippines with intention to unlade
Importation begins when the carrying vessel or aircraft enters therein. Importation is deemed terminated upon payment of
the jurisdiction of the Philippines with intention to unlade duties, taxes and other charges due upon the articles, or
therein. Importation is deemed terminated upon payment of secured to be paid, at a port of entry and the legal permit for
duties, taxes and other charges due upon the articles, or withdrawal shall have been granted, or in case said are free of
secured to be paid, at a port of entry and the legal permit for duties, taxes and other charges, until they have legally left the
withdrawal shall have been granted, or in case said articles jurisdiction of the customs.
are free of duties, taxes and other charges, until they have
legally left the jurisdiction of the customs.
SEC. 104. COMPETENT CUSTOMS OFFICES. SEC 701 Collection Districts and Ports of Entry Thereof. - For RKC GA Standard 3.1, 3.2, 3.3, 3.4, 3.5 First part of sentence taken from Sec
administrative purposes, the Philippines shall be divided into as 701 the rest is based on RKC.
FOR ADMINISTRATIVE PURPOSES, THE PHILIPPINES many collection districts as necessary, the respective limits of 3.1. Standard
SHALL BE DIVIDED INTO AS MANY COLLECTION which may be changed from time to time by the Commissioner
DISTRICTS AS NECESSARY, THE RESPECTIVE LIMITS of Customs upon approval of the Secretary of Finance. The The Customs shall designate the Customs
OF WHICH MAY BE CHANGED FROM TIME TO TIME BY principal ports of entry for the respective collection districts offices at which goods may be produced
THE COMMISSIONER OF CUSTOMS UPON THE shall be Manila, Manila International Container Port, Ninoy or cleared. In determining the competence
APPROVAL OF THE SECRETARY OF FINANCE. THE Aquino International Airport, Cebu, Iloilo, Davao, Tacloban, and location of these offices and their
LOCATION, STAFF COMPETENCIES AND BUSINESS Zamboanga, Cagayan de Oro, Surigao, Legaspi, Batangas, hours of business, the factors to be taken
HOURS OF THESE OFFICES SHALL TAKE INTO San Fernando, and Subic. into account shall include in particular the
ACCOUNT THE PARTICULAR REQUIREMENTS OF requirements of the trade.
TRADE.
3.2. Standard
At the request of the person concerned

and for reasons deemed valid by the
Customs, the latter shall, subject to the
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availability of resources, perform the
functions laid down for the purposes of a
Customs procedure and practice outside
the designated hours of business or away
from Customs offices. Any expenses
chargeable by the Customs shall be
limited to the approximate cost of the
services rendered.
3.3. Standard
Where Customs offices are located at a

common border crossing, the Customs
administrations concerned shall correlate
the business hours and the competence of
those offices.
3.4. Transitional Standard
At common border crossings, the Customs

administrations concerned shall, whenever
possible, operate joint controls.
Where the Customs intend to establish a

new Customs office or to convert an
existing one at a common border crossing,
they shall, wherever possible, co-operate
with the neighbouring Customs to
establish a juxtaposed Customs office to
facilitate joint controls.
SEC. 105. Owner of Imported Articles. SEC 1203 Owner of Imported Articles. - All articles Imported RKC GA Standard 8.1 The words or airway bill inserted to
into the Philippines shall be held to be the property of the complete reference document type.
All articles Imported into the Philippines shall be held to be the person to whom the same are consigned: and the holder of a 8.1. Standard
property of the person to whom the same are consigned and bill of lading duly endorsed by the consignee therein named,
the holder of a bill of lading OR AIRWAY BILL duly endorsed or, if consigned to order, by the consignor, shall be deemed the Persons concerned shall have the choice
by the consignee therein named, or, if consigned to order, by consignee thereof. The underwriters of abandoned articles and of transacting business with the Customs
the consignor, shall be deemed the consignee thereof. the salvors of articles saved from wreck at sea, a coast or in either directly or by designating a third
any area of the Philippines may be regarded as the
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The underwriters of abandoned articles and the salvors of consignees. party to act on their behalf.
articles saved from wreck at sea, a coast or in any area of the
Philippines may be regarded as the consignees.
SEC. 106. Liability of Importer for Duties AND TAXES SEC 1204 Liability of Importer for Duties. - Unless relieved by RKC GA Standard 4.7 Minor amendment on the title. AND
laws or regulations, the liability for duties, taxes, fees and other TAXES is added to make the
Unless relieved by laws or regulations, the liability for duties, charges attaching on importation constitutes a personal debt 4.7. Standard definition of liability more complete.
taxes, fees and other charges attaching on importation due from the importer to the government which can be
constitutes a personal debt due from the importer to the discharged only by payment in full of all duties, taxes, fees and National legislation shall specify the
government which can be discharged only by payment in full other charges legally accruing. It also constitutes a lien upon person(s) responsible for the payment of
of all duties, taxes, fees and other charges legally accruing. It the articles imported which may be enforced while such articles duties and taxes.
also constitutes a lien upon the articles imported which may are in custody or subject to the control of the government.
be enforced while such articles are in custody or subject to the
control of the government.
SEC. 107. Importations by the Government. SEC 1205 Importations by the Government. - Except those En toto
provided for in Section One Hundred and Five of this Code, all
Except those provided for in Section 800 of this ACT, all importations by the Government for its own use or that of its
importations by the Government for its own use or that of its subordinate branches or instrumentalities, or corporations,
subordinate branches or instrumentalities, or corporations, agencies or instrumentalities owned or controlled by the
agencies or instrumentalities owned or controlled by the government shall be subject to the duties, taxes, fees and
government shall be subject to the duties, taxes, fees and other charges provided for in this code.
other charges provided for in this ACT.
SEC. 108. DECLARANT. See RA9280 (Customs Brokers Act) RKC Definition; RKC GA Standard 3.6 and New provision. Recommended
3.7 provision seeks to find a middle
A DECLARANT IS A PERSON WHO MAKES AND SUBMITS ground between the clamor to limit
TO CUSTOMS GOODS DECLARATION OR IN WHOSE The declarant authority to make import/export
NAME SUCH DECLARATION IS MADE. ANY PERSON declaration to licensed customs
HAVING THE RIGHT TO DISPOSE OF THE GOODS SHALL (a) Persons entitled to act as declarant brokers (even to the exclusion of
BE ENTITLED TO DIRECTLY ACT AS DECLARANT. consignee/owner) and the old law
HOWEVER, WHEN HE AUTHORIZES AN AGENT TO MAKE 3.6. Standard
allowing even third parties (atty-in-fact)
THE DECLARATION IN HIS BEHALF, HE CAN ONLY DO to make a declaration in behalf of
National legislation shall specify the
SO THROUGH AN ACCREDITED CUSTOMS BROKER consignee/owner. The suggested
conditions under which a person is entitled
EXCEPT IN CASE WHEN THE DECLARANT IS A provision allows owner (person with
to act as declarant.
JURIDICAL PERSON IN WHICH CASE IT MAY AUTHORIZE right to dispose of the goods) to
ITS EMPLOYEE OR OFFICER TO MAKE THE 3.7. Standard declare (including employee or officer
DECLARATION IN BEHALF OF THE JURIDICAL PERSON. if person is a juridical entity) or he may
Any person having the right to dispose of appoint a licensed customs broker to
the goods shall be entitled to act as make the declaration. Any other third
party will no longer be authorized to
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declarant. make such declaration. This is
calculated to be compliant with the
RKC standard and at the same time to
give protection to the customs brokers
profession by barring non-customs
broker to act as a declarant.
SEC. 109. RIGHTS AND RESPONSIBILITIES OF THE RKC Definition; RKC GA Standard 3.6, The provision defines clearly that the
DECLARANT. 3.7, 3.8, 3.9, 3.24 importer as the declarant is the one
primarily responsible for the
THE PERSON HAVING THE RIGHT TO DISPOSE SHALL 3.6. Standard truthfulness and accuracy of the
BE RESPONSIBLE FOR THE ACCURACY OF THE declaration made. The customs broker
INFORMATION IN THE GOODS DECLARATION MADE National legislation shall specify the is likewise liable for his declaration to
DIRECTLY OR THROUGH AN AGENT AND SHALL BE conditions under which a person is entitled the extent of what he attests to as true
LIABLE FOR THE DUTIES, TAXES AND OTHER CHARGES to act as declarant. and accurate. A new provision
DUE ON THE IMPORTED ARTICLE. pursuant to RKC standard-- Declarant
3.7. Standard
under certain conditions has the right
THE DECLARANT SHALL SIGN THE GOODS to request for inspection and draw
DECLARATION PERSONALLY OR THROUGH AN Any person having the right to dispose of
the goods shall be entitled to act as sample before making a declaration.
EMPLOYEE OR OFFICER IN CASE OF JURIDICAL Customs must provide rules and
PERSON OR EVEN WHEN ASSISTED BY A LICENSED declarant.
regulations as to when and how to
CUSTOMS BROKER WHO SHALL LIKEWISE SIGN SAID avail to ensure against possible abuse.
(b) Responsibilities of the declarant
GOODS DECLARATION. THE DECLARATION SHALL BE
UNDER OATH UNDER THE PENALTIES OF 3.8. Standard
FALSIFICATION OR PERJURY THAT THE STATEMENTS
CONTAINED IN THE GOODS DECLARATION ARE TRUE The declarant shall be held responsible to
AND CORRECT. SUCH STATEMENTS UNDER OATH the Customs for the accuracy of the
SHALL CONSTITUTE A PRIMA FACIE EVIDENCE OF particulars given in the Goods declaration
KNOWLEDGE OR CONSENT OF THE VIOLATION OF ANY and the payment of the duties and taxes.
APPLICABLE PROVISIONS OF THIS ACT WHEN THE
IMPORTATION IS FOUND TO BE UNLAWFUL. (c) Rights of the declarant
BEFORE FILING OF THE GOODS DECLARATION, THE 3.9. Standard

DECLARANT MAY, UPON REQUEST IN WRITING, AND
FOR SUCH JUSTIFIABLE REASONS AND UNDER SUCH Before lodging the Goods declaration the
CONDITIONS AS THE COMMISSIONER OF CUSTOMS declarant shall be allowed, under such
SHALL DETERMINE, BE ALLOWED TO INSPECT THE conditions as may be laid down by the
GOODS AND TO DRAW SAMPLES FROM THE Customs:
IMPORTATION. THERE SHALL BE NO NEED FOR A
SEPARATE DECLARATION FOR THE SAMPLES a. to inspect the goods; and
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WITHDRAWN UNDER CUSTOMS SUPERVISION b. to draw samples.
PROVIDED, THAT SUCH SAMPLES ARE INCLUDED IN
THE GOODS DECLARATION FOR THE PARTICULAR
CONSIGNMENT CONCERNED.
SEC. 110. GOODS DECLARATION. RKC GA Standards 3.11 to 3.19 New provision. RKC standard
GOODS DECLARATION FORMAT AND CONTENTS The Goods declaration
THE FORMAT OF THE GOODS DECLARATION SHALL (a) Goods declaration format and contents
CONFORM TO INTERNATIONAL STANDARDS.
3.11. Standard
THE DATA REQUIRED IN THE GOODS DECLARATION
SHALL BE LIMITED TO ONLY SUCH PARTICULARS AS The contents of the Goods declaration
ARE DEEMED NECESSARY FOR THE ASSESSMENT AND shall be prescribed by the Customs. The
COLLECTION OF DUTIES AND TAXES, THE paper format of the Goods declaration
COMPILATION OF STATISTICS AND COMPLIANCE WITH shall conform to the UN-layout key.
CUSTOMS AND TARIFF LAWS.
For automated Customs clearance
WHERE THE DECLARANT DOES NOT HAVE ALL THE processes, the format of the electronically
INFORMATION REQUIRED TO MAKE THE GOODS lodged Goods declaration shall be based
DECLARATION, A PROVISIONAL OR INCOMPLETE on international standards for electronic
GOODS DECLARATION SHALL, FOR CERTAIN CASES information exchange as prescribed in the
AND FOR REASONS DEEMED VALID BY CUSTOMS, BE Customs Co-operation Council
ALLOWED TO BE LODGED , PROVIDED THAT IT Recommendations on information
CONTAINS THE PARTICULARS DEEMED NECESSARY BY technology.
THE CUSTOMS FOR THE ACCEPTANCE OF THE ENTRY
FILED AND THAT THE DECLARANT UNDERTAKES TO 3.12. Standard
COMPLETE IT WITHIN A REASONABLE PERIOD OF TIME
The Customs shall limit the data required
AS SPECIFIED BY REGULATIONS.
in the Goods declaration to only such
IF CUSTOMS ACCEPTS A PROVISIONAL OR particulars as are deemed necessary for
INCOMPLETE GOODS DECLARATION, THE TARIFF the assessment and collection of duties
TREATMENT TO BE ACCORDED TO THE GOODS SHALL and taxes, the compilation of statistics and
NOT BE DIFFERENT FROM THAT WHICH WOULD HAVE the application of Customs law.
BEEN ACCORDED HAD A COMPLETE AND CORRECT
3.13. Standard
GOODS DECLARATION BEEN LODGED IN THE FIRST
INSTANCE. Where, for reasons deemed valid by the
Customs, the declarant does not have all
THE RELEASE OF THE GOODS SHALL NOT BE DELAYED
the information required to make the
PROVIDED THAT ANY SECURITY REQUIRED HAS BEEN
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FURNISHED TO ENSURE COLLECTION OF ANY Goods declaration, a provisional or
APPLICABLE DUTIES AND TAXES. incomplete Goods declaration shall be
allowed to be lodged, provided that it
CUSTOMS SHALL REQUIRE THE LODGEMENT OF THE contains the particulars deemed
ORIGINAL GOODS DECLARATION AND ONLY THE necessary by the Customs and that the
MINIMUM NUMBER OF COPIES AS ARE NECESSARY. declarant undertakes to complete it within
a specified period.
DOCUMENTS SUPPORTING THE GOODS DECLARATION
3.14. Standard
IN SUPPORT OF THE GOODS DECLARATION, CUSTOMS
SHALL ONLY REQUIRE DOCUMENTS NECESSARY FOR If the Customs register a provisional or
CUSTOMS CONTROL AND TO ENSURE THAT ALL incomplete Goods declaration, the tariff
REQUIREMENTS OF THE LAW HAVE BEEN COMPLIED treatment to be accorded to the goods
WITH. shall not be different from that which would
have been accorded had a complete and
WHERE CERTAIN SUPPORTING DOCUMENTS CANNOT correct Goods declaration been lodged in
BE LODGED WITH THE GOODS DECLARATION FOR the first instance.
REASONS DEEMED VALID BY THE CUSTOMS, THEY
SHALL ALLOW PRODUCTION OF THOSE DOCUMENTS The release of the goods shall not be
WITHIN A REASONABLE PERIOD AS SPECIFIED BY delayed provided that any security
REGULATION. required has been furnished to ensure
collection of any applicable duties and
CUSTOMS SHALL PERMIT THE LODGEMENT OF taxes.
SUPPORTING DOCUMENTS BY ELECTRONIC MEANS.
3.15. Standard
CUSTOMS SHALL NOT REQUIRE A TRANSLATION OF
THE PARTICULARS OF SUPPORTING DOCUMENTS The Customs shall require the lodgement
EXCEPT WHEN NECESSARY TO PERMIT PROCESSING of the original Goods declaration and only
OF THE GOODS DECLARATION. the minimum number of copies necessary.
(b) Documents supporting the Goods

declaration
3.16. Standard
In support of the Goods declaration the

Customs shall require only those
documents necessary to permit control of
the operation and to ensure that all
requirements relating to the application of
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Customs law have been complied with.
3.17. Standard
Where certain supporting documents

cannot be lodged with the Goods
declaration for reasons deemed valid by
the Customs, they shall allow production
of those documents within a specified
period.
The Customs shall permit the lodgement

of supporting documents by electronic
means.
3.19. Standard
The Customs shall not require a

translation of the particulars of supporting
documents except when necessary to
permit processing of the Goods
declaration.
SEC. 111. LODGEMENT AND REGISTRATION Standard 3.20, 3.22, 3.25 and 3.27 New provision. Declarant may amend
declaration under certain conditions.
CUSTOMS SHALL PERMIT THE LODGING OF THE Lodgement, registration and checking of Customs must issue rules and
GOODS DECLARATION AT ANY DESIGNATED CUSTOMS the Goods declaration regulations to check possible abuse.
OFFICE.
3.20. Standard
GOODS DECLARATION SHALL BE LODGED DURING THE
HOURS DESIGNATED BY THE CUSTOMS. The Customs shall permit the lodging of
the Goods declaration at any designated
CUSTOMS SHALL MAKE PROVISION UNDER SUCH Customs office.
TERMS AND CONDITIONS AS THE COMMISSIONER OF
CUSTOMS MAY ESTABLISH FOR THE FILING OF GOODS 3.22. Standard
DECLARATION AND SUPPORTING DOCUMENTS PRIOR
TO THE ARRIVAL OF THE GOODS. The Goods declaration shall be lodged
during the hours designated by the
CUSTOMS SHALL FOR VALID REASON, PERMIT THE Customs.
DECLARANT TO AMEND THE GOODS DECLARATION
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THAT HAS ALREADY BEEN LODGED, PROVIDED THAT 3.25. Standard
WHEN THE REQUEST IS RECEIVED THEY HAVE NOT
BEGUN TO CHECK THE GOODS DECLARATION OR TO National legislation shall make provision
EXAMINE THE GOODS. for the lodging and registering or checking
of the Goods declaration and supporting
documents prior to the arrival of the
goods.
3.27. Standard
The Customs shall permit the declarant to

amend the Goods declaration that has
already been lodged, provided that when
the request is received they have not
begun to check the Goods declaration or
to examine the goods.
SEC. 112. SPECIAL PROCEDURES FOR AUTHORIZED SAFE Framework New provision. This will lay down the
PERSONS legal basis for an Authorized
Economic Operator program for BoC
FOR AUTHORIZED PERSONS WHO MEET THE CRITERIA under the SAFE Framework.
SET DOWN BY CUSTOMS, INCLUDING HAVING AN
APPROPRIATE RECORD OF COMPLIANCE WITH
CUSTOMS REQUIREMENTS AND A SATISFACTORY
SYSTEM FOR MANAGING THEIR COMMERCIAL
RECORDS, CUSTOMS SHALL PROVIDE FOR:
RELEASE OF THE GOODS ON THE PROVISION OF THE

MINIMUM INFORMATION NECESSARY TO IDENTIFY THE
GOODS AND PERMIT THE SUBSEQUENT COMPLETION
OF THE FINAL GOODS DECLARATION;
CLEARANCE OF THE GOODS AT THE DECLARANT'S

PREMISES OR ANOTHER PLACE AUTHORIZED BY THE
CUSTOMS; AND, IN ADDITION, TO THE EXTENT
POSSIBLE, OTHER SPECIAL PROCEDURES SUCH AS:
ALLOWING A SINGLE GOODS DECLARATION FOR ALL

IMPORTS OR EXPORTS IN A GIVEN PERIOD WHERE
GOODS ARE IMPORTED OR EXPORTED FREQUENTLY
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BY THE SAME PERSON;
USE OF THE AUTHORIZED PERSONS COMMERCIAL

RECORDS TO SELF-ASSESS THEIR DUTY AND TAX
LIABILITY AND, WHERE APPROPRIATE, TO ENSURE
COMPLIANCE WITH OTHER CUSTOMS REQUIREMENTS;
ALLOWING THE LODGEMENT OF GOODS DECLARATION

BY MEANS OF AN ENTRY IN THE RECORDS OF THE
AUTHORIZED PERSON TO BE SUPPORTED
SUBSEQUENTLY BY A SUPPLEMENTARY GOODS
DECLARATION.
THIS SECTION SHALL BE IMPLEMENTED WITHIN FIVE (5)

YEARS FROM THE ENACTMENT OF THIS ACT.
SEC. 113 EXAMINATION OF THE GOODS RKC GA Standard 3.33 to 3.38 New provision. Section 112 (2) states
the general rule that presence of
TIME REQUIRED FOR EXAMINATION OF GOODS Examination of the goods importer/broker not necessary during
examination except when requested
WHEN THE EXAMINATION OF GOODS IS REQUIRED BY (a) Time required for examination of goods by the latter subject to approval, or
CUSTOMS, SUCH EXAMINATION SHALL TAKE PLACE AS when customs so requires. This
SOON AS POSSIBLE AFTER THE GOODS DECLARATION 3.33. Standard
principle is based on international best
HAS BEEN LODGED. customs practice .
When the Customs decide that goods
WHEN SCHEDULING EXAMINATIONS, PRIORITY SHALL declared shall be examined, this
BE GIVEN TO THE EXAMINATION OF LIVE ANIMALS AND examination shall take place as soon as
PERISHABLE GOODS AND TO OTHER GOODS WHICH possible after the Goods declaration has
CUSTOMS CONSIDER AS URGENTLY NEEDING been registered.
EXAMINATION.
3.34. Standard
CUSTOMS AND OTHER AGENCIES CONCERNED SHALL
COME OUT WITH A SYSTEM OF COORDINATION AND When scheduling examinations, priority
JOINT EXAMINATION OF GOODS WHICH MUST BE shall be given to the examination of live
INSPECTED BY THE LATTER UNDER EXISTING animals and perishable goods and to other
LEGISLATION. goods which the Customs accept are
urgently required.
PRESENCE OF THE DECLARANT AT EXAMINATION OF
GOODS 3.35. Transitional Standard
AS A GENERAL RULE, CUSTOMS MAY EXAMINE GOODS If the goods must be inspected by other
competent authorities and the Customs
14
WITHOUT THE PRESENCE OF THE DECLARANT OR AN also schedules an examination, the
AUTHORIZED REPRESENTATIVE. HOWEVER, IF THE Customs shall ensure that the inspections
DECLARANT SO REQUESTS, HE OR AN AUTHORIZED are co-ordinated and, if possible, carried
REPRESENTATIVE SHALL BE ALLOWED TO BE PRESENT out at the same time.
UNLESS SERIOUS, EXCEPTIONAL CIRCUMSTANCES
EXIST TO BAR THEIR PRESENCE. (b) Presence of the declarant at
examination of goods
IF CUSTOMS DEEM IT USEFUL, THEY SHALL REQUIRE
THE DECLARANT TO BE PRESENT OR TO BE 3.36. Standard
REPRESENTED AT THE EXAMINATION OF THE GOODS
TO GIVE THEM ANY ASSISTANCE NECESSARY TO The Customs shall consider requests by
FACILITATE THE EXAMINATION. the declarant to be present or to be
represented at the examination of the
SAMPLING BY THE CUSTOMS goods. Such requests shall be granted
unless exceptional circumstances exist.
SAMPLES SHALL BE TAKEN ONLY WHERE DEEMED
NECESSARY BY CUSTOMS TO ESTABLISH THE TARIFF 3.37. Standard
DESCRIPTION AND/OR VALUE OF GOODS DECLARED
OR TO ENSURE COMPLIANCE WITH CUSTOMS AND If the Customs deem it useful, they shall
RELATED LAWS. SAMPLES DRAWN SHALL BE AS SMALL require the declarant to be present or to be
AS POSSIBLE. represented at the examination of the
goods to give them any assistance
necessary to facilitate the examination.
(c) Sampling by the Customs
3.38. Standard
Samples shall be taken only where

deemed necessary by the Customs to
establish the tariff description and/or value
of goods declared or to ensure the
application of other provisions of national
legislation. Samples drawn shall be as
small as possible.
SEC. 114. ERRORS IN GOODS DECLARATION RKC GA Standard 3.39 New provision laying down the
principle that customs should not
CUSTOMS SHALL NOT IMPOSE SUBSTANTIAL Errors impose excessive sanctions for non-
PENALTIES FOR ERRORS WHERE THEY ARE SATISFIED compliance when error is inadvertent
THAT SUCH ERRORS ARE INADVERTENT AND THAT 3.39. Standard
15
THERE HAS BEEN NO FRAUDULENT INTENT OR GROSS The Customs shall not impose substantial or in good faith.
NEGLIGENCE IN THE COMMISSION THEREOF. WHERE penalties for errors where they are
THEY CONSIDER IT NECESSARY TO DISCOURAGE A satisfied that such errors are inadvertent
REPETITION OF SUCH ERRORS, A PENALTY MAY BE and that there has been no fraudulent
IMPOSED BUT SHALL BE NO GREATER THAN IS intent or gross negligence. Where they
NECESSARY FOR THIS PURPOSE. consider it necessary to discourage a
repetition of such errors, a penalty may be
imposed but shall be no greater than is
necessary for this purpose.
SEC. 115. RELEASE OF GOODS RKC GA Standard 3.42 New provision mandating the
immediate release of goods from
GOODS DECLARED SHALL BE RELEASED AS SOON AS 3.42. Standard customs custody upon payment of
DUTIES AND TAXES AND OTHER LAWFUL CHARGES duties and taxes. RKC standard.
HAVE BEEN PAID OR SECURED TO BE PAID AND/OR When the Customs decide that they
OTHERWISE ALL THE PERTINENT LAWS, RULES AND require laboratory analysis of samples,
REGULATIONS HAVE BEEN COMPLIED WITH. detailed technical documents or expert
advice, they shall release the goods
WHEN CUSTOMS DECIDE THAT THEY REQUIRE before the results of such examination are
LABORATORY ANALYSIS OF SAMPLES, DETAILED known, provided that any security required
TECHNICAL DOCUMENTS OR EXPERT ADVICE, THEY has been furnished and provided they are
SHALL RELEASE THE GOODS BEFORE THE RESULTS OF satisfied that the goods are not subject to
SUCH EXAMINATION ARE KNOWN, PROVIDED THAT ANY prohibitions or restrictions.
SECURITY REQUIRED HAS BEEN FURNISHED AND
PROVIDED THEY ARE SATISFIED THAT THE GOODS ARE
NOT SUBJECT TO PROHIBITIONS OR RESTRICTIONS.
SEC. 116. ABANDONMENT OR DESTRUCTION OF RKC GA Standard 3.44 New provision. This is introduced as a
GOODS general standard to reflect the RKC
Abandonment or destruction of goods mandate. Note however that current
WHEN GOODS HAVE NOT YET BEEN RELEASED FOR legislation provides for abatement or
CONSUMPTION OR WHEN THEY HAVE BEEN PLACED 3.44. Standard refund relief in similar circumstances.
UNDER ANOTHER CUSTOMS PROCEDURE, AND
PROVIDED THAT NO OFFENCE HAS BEEN DETECTED, When goods have not yet been released
THE PERSON CONCERNED SHALL NOT BE REQUIRED for home use or when they have been
TO PAY THE DUTIES AND TAXES OR SHALL BE placed under another Customs procedure,
ENTITLED TO REFUND THEREOF: and provided that no offence has been
detected, the person concerned shall not
WHEN, AT HIS REQUEST, SUCH GOODS ARE be required to pay the duties and taxes or
ABANDONED OR DESTROYED OR RENDERED shall be entitled to repayment thereof:
COMMERCIALLY VALUELESS UNDER CUSTOMS
16
CONTROL, AS CUSTOMS MAY DECIDE. ANY COSTS when, at his request, such
INVOLVED SHALL BE BORNE BY THE PERSON goods are abandoned to the Revenue or
CONCERNED; destroyed or rendered commercially
valueless under Customs control, as the
WHEN SUCH GOODS ARE DESTROYED OR Customs may decide. Any costs involved
IRRECOVERABLY LOST BY ACCIDENT OR FORCE shall be borne by the person concerned;
MAJEURE, PROVIDED THAT SUCH DESTRUCTION OR
LOSS IS DULY ESTABLISHED TO THE SATISFACTION OF when such goods are
CUSTOMS; destroyed or irrecoverably lost by accident
or force majeure, provided that such
ON SHORTAGES DUE TO THE NATURE OF THE GOODS destruction or loss is duly established to
WHEN SUCH SHORTAGES ARE DULY ESTABLISHED TO the satisfaction of the Customs;
THE SATISFACTION OF CUSTOMS.
on shortages due to the nature
ANY WASTE OR SCRAP REMAINING AFTER of the goods when such shortages are
DESTRUCTION SHALL BE LIABLE, IF TAKEN INTO duly established to the satisfaction of the
CONSUMPTION, TO THE DUTIES AND TAXES THAT Customs.
WOULD BE APPLICABLE TO SUCH WASTE OR SCRAP
IMPORTED IN THAT STATE. Any waste or scrap remaining after
destruction shall be liable, if taken into
home use or
exported, to the duties and taxes that

would be applicable to such waste or
scrap imported
or exported in that state.
SEC. 117. DISPOSITION OF ABANDONED GOODS RKC GA 3.45 Transitional standard New provision. This seems to apply to
implied abandonment. That means
WHEN CUSTOMS SELL GOODS WHICH HAVE NOT BEEN 3.45. Transitional Standard that if abandonment is express,
DECLARED WITHIN THE TIME ALLOWED OR COULD NOT importer is not entitled to net proceeds.
BE RELEASED ALTHOUGH NO OFFENCE HAS BEEN When the Customs sell goods which have Relate this to the proposed Forfeiture
DISCOVERED, THE PROCEEDS OF THE SALE, AFTER not been declared within the time allowed Fund in Section 1049.
DEDUCTION OF ANY DUTIES AND TAXES AND ALL or could not be released although no
OTHER CHARGES AND EXPENSES INCURRED, SHALL offence has been discovered, the
BE MADE OVER TO THOSE PERSONS ENTITLED TO proceeds of the sale, after deduction of
RECEIVE THEM OR, WHEN THIS IS NOT POSSIBLE, HELD any duties and taxes and all other charges
AT THEIR DISPOSAL FOR A SPECIFIED PERIOD. and expenses incurred, shall be made
over to those persons entitled to receive
them or, when this is not possible, held at
17
their disposal for a specified period.
SEC. 118. When Duty and Tax is Due on Imported SEC 100 Imported Articles Subject to Duty. RKC General Annex Standards 4.1 and Section 100 is expanded to
Article. 4.2, 4.3, 4.4, 4.5, 4.6, 4.8, 4.9, 4.10, 4.11, incorporate RKC standards 4.1 up to
All articles, when imported from any foreign country into the 4.12, 4.15, 4.16 4.16. A new provision allows deferred
All articles, when imported from any foreign country into the Philippines, shall be subject to duty upon each importation, payment for a period of not less than
Philippines, shall be subject to duty upon each importation, even though previously exported from the Philippines, except A. ASSESSMENT, COLLECTION AND 14 to not more than 30 days. Customs
even though previously exported from the Philippines, except as otherwise specifically provided for in this Code or in other PAYMENT OF DUTIES AND TAXES must issue guidelines when to avail to
as otherwise specifically provided for in this ACT or in other laws. check possible abuse.
laws. 4.1. Standard
DUTIES, TAXES AND OTHER CHARGES SHALL BE PAID National legislation shall define the
PRIOR TO RELEASE FROM CUSTOMS CUSTODY OR circumstances when liability to duties and
PRIOR TO ENTRY INTO THE CUSTOMS TERRITORY IN taxes is incurred.
CASE OF WITHDRAWAL FROM FREE ZONES OR FROM
CBWs. HOWEVER, FOR CERTAIN HIGHLY COMPLIANT 4.2. Standard
AND LOW RISK IMPORTERS OR EXPORTERS AS
The time period within which the
DETERMINED BY REGULATION, THE BUREAU SHALL
applicable duties and taxes are assessed
ALLOW THE DEFERRED PAYMENT OF DUTIES AND
shall be stipulated in national legislation.
TAXES FOR A PERIOD OF NOT LESS THAN 14 DAYS BUT
The assessment shall follow as soon as
NOT EXCEEDING 30 DAYS.
possible after the Goods declaration is
UNPAID DUTIES, TAXES AND ANY OTHER CHARGES, lodged or the liability is otherwise incurred.
SHALL BE SUBJECT TO THE LEGAL INTEREST OF 20%
4.3. Standard
PER ANNUM COMPUTED FROM THE EXPIRATION OF
THE DUE DATE OR IN CASE OF GOODS ADMITTED INTO The factors on which the assessment of
FREE ZONES, FROM THE TIME THE ASSESSMENT IS duties and taxes is based and the
MADE AFTER GOODS ENTER THE CUSTOMS conditions under which they are
TERRITORY. THE LEGAL INTEREST SHALL BE IMPOSED determined shall be specified in national
IN ADDITION TO ANY APPLICABLE FINE OR PENALTY. legislation.
WHEN DUTIES, TAXES AND OTHER CHARGES ARE PAID,
4.4. Standard
THE BUREAU SHALL ISSUE THE NECESSARY RECEIPT
OR ACKNOWLEDGEMENT AS PROOF OF SUCH The rates of duties and taxes shall be set
PAYMENT. out in official publications.
IN CASE OF DEFERRED PAYMENT, CUSTOMS SHALL 4.5. Standard

HAVE 3 YEARS WITHIN WHICH IT MAY TAKE LEGAL
ACTION TO COLLECT DUTIES AND TAXES NOT PAID BY National legislation shall specify the point
THE DUE DATE. in time to be taken into consideration for
the purpose of determining the rates of
18
duties and taxes.
4.6. Standard

methods that may be used to pay the
duties and taxes.
4.8. Standard
National legislation shall determine the

due date and the place where payment is
to be made.
4.9. Standard
When national legislation specifies that the

due date may be after the release of the
goods, that date shall be at least ten days
after the release. No interest shall be
charged for the period between the date of
release and the due date.
4.10. Standard
National legislation shall specify the period

within which the Customs may take legal
action to collect duties and taxes not paid
by the due date.
4.11. Standard
National legislation shall determine the

rate of interest chargeable on amounts of
duties and taxes that have not been paid
by the due date and the conditions of
application of such interest.
4.12. Standard
When the duties and taxes have been

paid, a receipt constituting proof of
19
payment shall be issued to the payer,
unless there is other evidence constituting
proof of payment.
B. DEFERRED PAYMENT OF DUTIES

AND TAXES
4.15. Standard
Where national legislation provides for the

deferred payment of duties and taxes, it
shall specify the conditions under which
such facility is allowed.
4.16. Standard
Deferred payment shall be allowed without

interest charges to the extent possible.
SEC. 119. Effective Date of Rate of Import Duty. RKC GA 4.1 and 4.2, 4.3, 4.4, 4.5, 4.6 Provision amended deleting second
paragraph for not being relevant
Imported articles shall be subject to the rate or rates of import 4.1. Standard anymore and simplifying the first
duty OF THE APPLICABLE TARIFF HEADING at the time of paragraph to make it clearer.
entry or UPON withdrawal from the warehouse for National legislation shall define the
consumption. circumstances when liability to duties and
taxes is incurred.
On article abandoned or forfeited to, or seized by, the
government, and then sold at public auction, the rates of duty 4.2. Standard
and the tariff in force on the date of the auction shall apply:
Provided, That duty based on the weight, volume and quantity The time period within which the
of articles shall be levied and collected on the weight, volume applicable duties and taxes are assessed
and quantity at the time of their entry into the warehouse or shall be stipulated in national legislation.
the date of abandonment, forfeiture and/or seizure. The assessment shall follow as soon as
possible after the Goods declaration is
lodged or the liability is otherwise incurred.
4.3. Standard
The factors on which the assessment of

duties and taxes is based and the
conditions under which they are
determined shall be specified in national
20
legislation.
4.4. Standard
The rates of duties and taxes shall be set

out in official publications.
4.5. Standard
National legislation shall specify the point

in time to be taken into consideration for
duties and taxes.
4.6. Standard

duties and taxes.
SEC. 120. Treatment of Importation. SEC 205 Entry, or Withdrawal from Warehouse, for RKC GA Standards 4.1 and 4.2, 4.3, 4.4, Minor amendment. Have been Paid
Consumption. 4.5, 4.6, Specific Annex D2 is inserted to make clearer the
Imported articles shall be deemed "entered" in the Philippines obligation to pay duties and taxes
for consumption when the specified entry form is properly filed Imported articles shall be deemed "entered" in the Philippines 4.1. Standard upon withdrawal for local consumption
and accepted, together with any related documents required for consumption when the specified entry form is properly filed of goods from bonded warehouse.
by the provisions of this ACT and/or regulations to be filed and accepted, together with any related documents required by National legislation shall define the
with such form at the time of entry, at the port or station by the the provisions of this Code and/or regulations to be filed with circumstances when liability to duties and
customs official designated to receive such entry papers and such form at the time of entry, at the port or station by the taxes is incurred.
any duties, taxes, fees and/or other lawful charges required to customs official designated to receive such entry papers and
be paid at the time of making such entry have been paid or any duties, taxes, fees and/or other lawful charges required to 4.2. Standard
secured to be paid with the customs official designated to be paid at the time of making such entry have been paid or
The time period within which the
receive such monies, provided that the article has previously secured to be paid with the customs official designated to
applicable duties and taxes are assessed
arrived within the limits of the port of entry. receive such monies, provided that the article has previously
shall be stipulated in national legislation.
arrived within the limits of the port of entry.
Imported articles shall be deemed withdrawn" from The assessment shall follow as soon as
warehouse in the Philippines for consumption when the Imported articles shall be deemed wthdrawn" from warehouse possible after the Goods declaration is
specified form is properly filed and accepted, together with in the Philippines for consumption when the specified form is lodged or the liability is otherwise incurred.
any related documents required by any provisions of this ACT properly filed and accepted, together with any related
4.3. Standard
and/or regulations to be filed with such form at the time of documents required by any provisions of this Code and/or
withdrawal, by the customs official designated to receive the regulations to be filed with such form at the time of withdrawal, The factors on which the assessment of
withdrawal entry and any duties, taxes, fees and/or other by the customs official designated to receive the withdrawal duties and taxes is based and the
21
lawful charges HAVE BEEN PAID with the customs official entry and any duties, taxes, fees and/or other lawful charges conditions under which they are
designated to receive such payment. required to be paid at the time of withdrawal have been determined shall be specified in national
deposited with the customs official designated to receive such legislation.
payment.
4.4. Standard
The rates of duties and taxes shall be set

out in official publications.
4.5. Standard
National legislation shall specify the point

in time to be taken into consideration for
duties and taxes.
4.6. Standard

duties and taxes.
Specific Annex D Chapter 1
2. Standard
National legislation shall provide for

Customs warehouses open to any person
having the right to dispose of the goods
(public Customs warehouses).
SEC. 121. DEFERRED PAYMENT FOR GOVERNMENT RKC Standard allowing deferred payment. New provision. Current policy allows
IMPORTATION deferred payment for govt
RKC GA 4.15. Standard importations. This provision will
THE GOVERNMENT OR ANY OF ITS provide for a clear statutory basis for
INSTRUMENTALITIES OR AGENCIES MAY AVAIL OF Where national legislation provides for the such privilege.
DEFERRED PAYMENT FOR ITS IMPORTATIONS UNDER deferred payment of duties and taxes, it
SUCH TERMS AND CONDITIONS THAT SHALL BE shall specify the conditions under which
DETERMINED BY REGULATION TO BE JOINTLY ISSUED such facility is allowed.
BY THE DEPARTMENT OF FINANCE AND THE
DEPARTMENT OF BUDGET MANAGEMENT .
22
SEC. 122. REFUND OF DUTIES AND TAXES RKC GA 4.20. TRANSITIONAL New provision. The refund standard
STANDARD here will clash with the TCCP provision
REFUND SHALL BE GRANTED WHERE IT IS (Sec 1408) which provides that no
ESTABLISHED THAT DUTIES AND TAXES HAVE BEEN 4.20. Transitional Standard shipment shall be assessed at less
OVERCHARGED AS A RESULT OF AN ERROR IN THEIR than the entered value and therefore
ASSESSMENT. Where permission is given by the Customs the latter may have to be repealed as
for goods originally declared for a is proposed in this draft CTMA. This is
WHERE PERMISSION IS GIVEN BY THE CUSTOMS FOR Customs procedure with payment of duties because the new standard allows
GOODS ORIGINALLY DECLARED FOR A CUSTOMS and taxes to be placed under another refund for overcharged assessment as
PROCEDURE WITH PAYMENT OF DUTIES AND TAXES TO Customs procedure, repayment shall be in the case of erroneous declaration on
BE PLACED UNDER ANOTHER CUSTOMS PROCEDURE, made of any duties and taxes charged in value on the part of the
REFUND SHALL BE MADE OF ANY DUTIES AND TAXES excess of the amount due under the new declarant/importer. If sec 1408
CHARGED IN EXCESS OF THE AMOUNT DUE UNDER procedure. subsists a refund based on such over-
THE NEW PROCEDURE SUBJECT TO SUCH assessment by wrongly entered value
REGULATION ISSUED FOR THE PURPOSE. cannot hold water. Another new
provision disallows refund when
REFUND SHALL NOT BE GRANTED IF THE AMOUNT
amount is PhP5 thousand or less.
INVOLVED IS LESS THAN FIVE THOUSAND PESOS.
HOWEVER, THE SECRETARY OF FINANCE IN
CONSULTATION WITH THE COMMISSIONER, MAY
CHANGE THE MINIMUM AMOUNT SPECIFIED IN THIS
ACT TAKING INTO ACCOUNT SUCH FACTORS AS
INFLATION OR DEFLATION.
SEC. 123. SECURITY Standard 5.3, 5.4, 5.5, 5.6, 5.7 New provision. Policy is set down
adopting the liberal RKC standard on
CUSTOMS REGULATION SHALL PROVIDE THE FORMS 5.3. Standard security to be required by customs.
AND AMOUNT OF SECURITY THAT ARE REQUIRED TO Importer may choose the kind of
GUARANTEE THE PAYMENT OF DUTIES AND TAXES AND Any person required to provide security security to put subject to approval by
OTHER OBLIGATIONS PROVIDED FOR IN THIS ACT. shall be allowed to choose any form of customs. Customs may now require no
security provided that it is acceptable to security in cases where it is satisfied
UNLESS THE FORM OF THE SECURITY IS FIXED IN THIS the Customs. that obligation will be met. It also sets
ACT, ANY PERSON REQUIRED TO PROVIDE SECURITY down a ceiling on the amount of
SHALL BE ALLOWED TO CHOOSE ANY FORM OF 5.4. Standard
security to be imposed, which is not to
SECURITY PROVIDED THAT IT IS ACCEPTABLE TO be in excess of the potential liability.
CUSTOMS. Where national legislation provides, the
Customs shall not require security when
CUSTOMS SHALL NOT REQUIRE SECURITY WHEN THEY they are satisfied that an obligation to the
ARE SATISFIED THAT AN OBLIGATION TO THE Customs will be fulfilled.
CUSTOMS WILL BE FULFILLED.
23
WHEN SECURITY IS REQUIRED TO ENSURE THAT THE 5.5. Standard
OBLIGATIONS ARISING FROM A CUSTOMS PROCEDURE
WILL BE FULFILLED, THE CUSTOMS SHALL ACCEPT A When security is required to ensure that
GENERAL SECURITY, IN PARTICULAR FROM the obligations arising from a Customs
DECLARANTS WHO REGULARLY DECLARE GOODS AT procedure will be fulfilled, the Customs
DIFFERENT OFFICES IN THE CUSTOMS TERRITORY shall accept a general security, in
UNDER SUCH TERMS AND CONDITIONS AS THE particular from declarants who regularly
COMMISSIONER MAY DETERMINE. declare goods at different offices in the
Customs territory.
WHERE SECURITY IS REQUIRED, THE AMOUNT OF
SECURITY TO BE PROVIDED SHALL BE AS LOW AS 5.6. Standard
POSSIBLE AND, IN RESPECT OF THE PAYMENT OF
DUTIES AND TAXES, SHALL NOT EXCEED THE AMOUNT Where security is required, the amount of
POTENTIALLY CHARGEABLE. security to be provided shall be as low as
possible and, in respect of the payment of
WHERE SECURITY HAS BEEN FURNISHED, IT SHALL BE duties and taxes, shall not exceed the
DISCHARGED AS SOON AS POSSIBLE AFTER THE amount potentially chargeable.
CUSTOMS ARE SATISFIED THAT THE OBLIGATIONS
UNDER WHICH THE SECURITY WAS REQUIRED HAVE 5.7. Standard
BEEN DULY FULFILLED.
Where security has been furnished, it shall
be discharged as soon as possible after
the Customs are satisfied that the
obligations under which the security was
required have been duly fulfilled.
SEC. 124. CUSTOMS CONTROL RKC GA Standard 6.1, 6.2, 6.3, 6.5, 6.7, New provision. Customs has now a
6.8, 6.10 legal basis to create or ask for fund to
ALL GOODS, INCLUDING MEANS OF TRANSPORT, support international networking
WHICH ENTER OR LEAVE THE CUSTOMS TERRITORY, 6.1. Standard efforts.
REGARDLESS OF WHETHER THEY ARE LIABLE TO
DUTIES AND TAXES, SHALL BE SUBJECT TO CUSTOMS All goods, including means of transport,
CONTROL WHICH SHALL BE LIMITED TO THAT which enter or leave the Customs territory,
NECESSARY TO ENSURE COMPLIANCE WITH CUSTOMS regardless of whether they are liable to
AND RELATED LAWS. duties and taxes, shall be subject to
Customs control.
IN THE APPLICATION OF CUSTOMS CONTROL, THE
CUSTOMS SHALL USE AUDIT-BASED CONTROLS AND 6.2. Standard
RISK MANAGEMENT SYSTEMS AND ADOPT A
COMPLIANCE MEASUREMENT STRATEGY TO SUPPORT Customs control shall be limited to that
necessary to ensure compliance with the
24
RISK MANAGEMENT. Customs law.
CUSTOMS SHALL SEEK TO COOPERATE WITH OTHER 6.3. Standard

CUSTOMS ADMINISTRATIONS AND AIM AT CONCLUDING
MUTUAL ADMINISTRATIVE ASSISTANCE AGREEMENTS In the application of Customs control, the
TO ENHANCE CUSTOMS CONTROL. Customs shall use risk management.
CUSTOMS SHALL CONSULT AND COOPERATE WITH 6.5. Standard

OTHER GOVERNMENT REGULATORY AGENCIES,
INCLUDING FREE AND SPECIAL ECONOMIC ZONE The Customs shall adopt a compliance
AUTHORITIES, AND THE CUSTOMS STAKEHOLDERS IN measurement strategy to support risk
GENERAL TO ENHANCE CUSTOMS CONTROL. management.
CUSTOMS SHALL EVALUATE TRADERS COMMERCIAL 6.6. Standard

SYSTEMS WHERE THOSE SYSTEMS HAVE AN IMPACT
Customs control systems shall include
ON CUSTOMS OPERATIONS TO ENSURE COMPLIANCE
audit-based controls.
WITH CUSTOMS REQUIREMENTS.
6.7. Standard
The Customs shall seek to co-operate with

other Customs administrations and seek to
conclude mutual administrative assistance
agreements to enhance Customs control.
6.8. Standard
The Customs shall seek to co-operate with

the trade and seek to conclude
Memoranda of Understanding to enhance
Customs control.
6.10. Standard
The Customs shall evaluate traders

commercial systems where those systems
have an impact on Customs operations to
ensure compliance with Customs
requirements.
25
SEC. 125. APPLICATION OF INFORMATION AND RKC GA Standard 7.1, 7.2 and 7.3 New provision establishing policy on
COMMUNICATION TECHNOLOGY the use of ICT technology in customs
7.1. Standard administration.
CUSTOMS SHALL APPLY INFORMATION AND
COMMUNICATION TECHNOLOGY TO ENHANCE The Customs shall apply information
CUSTOMS CONTROL AND SUPPORT A COST- technology to support Customs
EFFECTIVE AND EFFICIENT CUSTOMS OPERATIONS operations, where it is cost-effective and
GEARED TOWARDS A PAPERLESS CUSTOMS efficient for the Customs and for the trade.
ENVIRONMENT USING INTERNATIONALLY ACCEPTED The Customs shall specify the conditions
STANDARDS. for its application.
THE INTRODUCTION OF INFORMATION AND 7.2. Standard

COMMUNICATION TECHNOLOGY SHALL BE CARRIED
OUT IN CONSULTATION WITH ALL RELEVANT PARTIES When introducing computer applications,
DIRECTLY AFFECTED, TO THE GREATEST EXTENT the Customs shall use relevant
POSSIBLE. internationally accepted standards.
7.3. Standard
The introduction of information technology

shall be carried out in consultation with all
relevant parties directly affected, to the
greatest extent possible.
SEC. 126. RELATIONSHIP BETWEEN CUSTOMS AND RKC GA Standard 8.1, 8.3, 8.4 New provision adopting policy on how
THIRD PARTIES to treat third parties transacting with
8.1. Standard customs.
PERSONS CONCERNED SHALL HAVE THE CHOICE OF
TRANSACTING BUSINESS WITH CUSTOMS EITHER Persons concerned shall have the choice
DIRECTLY OR BY DESIGNATING A THIRD PARTY TO ACT of transacting business with the Customs
ON THEIR BEHALF. either directly or by designating a third
party to act on their behalf.
THE CUSTOMS TRANSACTIONS WHERE THE PERSON
CONCERNED ELECTS TO DO BUSINESS ON HIS OWN 8.3. Standard
ACCOUNT SHALL NOT BE TREATED LESS FAVOURABLY
OR BE SUBJECT TO MORE STRINGENT REQUIREMENTS The Customs transactions where the
THAN THOSE CUSTOMS TRANSACTIONS WHICH ARE person concerned elects to do business
HANDLED FOR THE PERSON CONCERNED BY A THIRD on his own account shall not be treated
PARTY. less favourably or be subject to more
stringent requirements than those
A PERSON DESIGNATED AS A THIRD PARTY SHALL Customs transactions which are handled
26
HAVE THE SAME RIGHTS AS THE PERSON WHO for the person concerned by a third party.
DESIGNATED HIM IN THOSE MATTERS RELATED TO
TRANSACTING BUSINESS WITH CUSTOMS. 8.4. Standard
A person designated as a third party shall

have the same rights as the person who
designated him in those matters related to
transacting business with the Customs.
SEC. 127. INFORMATION OF GENERAL APPLICATION RKC GA Standard 9.1, 9.2 New provision. Transparency
standard.
TO FOSTER AN INFORMED COMPLIANCE REGIME, 9.1. Standard
CUSTOMS SHALL ENSURE THAT ALL RELEVANT AND
AVAILABLE INFORMATION OF GENERAL APPLICATION The Customs shall ensure that all relevant
PERTAINING TO CUSTOMS LAW, NOT OTHERWISE information of general application
CONFIDENTIAL OR FOR CUSTOMS USE ONLY IS pertaining to Customs law is readily
READILY ACCESSIBLE TO ANY INTERESTED PERSON available to any interested person.
FOR LEGITIMATE USE.
9.2. Standard
WHEN INFORMATION THAT HAS BEEN MADE AVAILABLE
MUST BE AMENDED DUE TO CHANGES IN CUSTOMS When information that has been made
LAW, ADMINISTRATIVE ARRANGEMENTS OR available must be amended due to
REQUIREMENTS, CUSTOMS SHALL, AS FAR AS MAY BE changes in Customs law, administrative
FEASIBLE, MAKE THE REVISED INFORMATION READILY arrangements or requirements, the
AVAILABLE SUFFICIENTLY IN ADVANCE OF THE ENTRY Customs shall make the revised
INTO FORCE OF THE CHANGES TO ENABLE information readily available sufficiently in
INTERESTED PERSONS TO TAKE ACCOUNT OF THEM, advance of the entry into force of the
UNLESS ADVANCE NOTICE IS PRECLUDED. changes to enable interested persons to
take account of them, unless advance
notice is precluded.
SEC. 128. INFORMATION OF A SPECIFIC NATURE RKC GA 9.4, 9.7 New provision. Transparency
standard.
SUBJECT TO REGULATION ISSUED FOR THE PURPOSE, 9.4. Standard
CUSTOMS SHALL PROVIDE INFORMATION AS MAY BE
AVAILABLE AND IS NOT OTHERWISE CONFIDENTIAL OR At the request of the interested person, the
FOR CUSTOMS USE ONLY, RELATING TO A SPECIFIC Customs shall provide, as quickly and as
MATTER AS REQUESTED BY AN INTERESTED PERSON accurately as possible, information relating
FOR LEGITIMATE USE. to the specific matters raised by the
interested person and pertaining to
CUSTOMS MAY REQUIRE THE PAYMENT OF A Customs law.
27
REASONABLE FEE IN PROVIDING SUCH INFORMATION 9.7. Standard
OF A SPECIFIC NATURE TO INTERESTED PARTIES.
When the Customs cannot supply
information free of charge, any charge
shall be limited to the approximate cost of
the services rendered.
SEC. 129. DECISIONS AND RULINGS RKC GA Standard 9.8, 9.9 New provision Transparency standard
AT THE WRITTEN REQUEST OF THE PERSON 9.8. Standard

CONCERNED, CUSTOMS SHALL NOTIFY THEIR
DECISION IN WRITING WITHIN A PERIOD SPECIFIED IN At the written request of the person
THIS ACT. WHERE THE DECISION IS ADVERSE TO THE concerned, the Customs shall notify their
PERSON CONCERNED, THE REASONS SHALL BE GIVEN decision in writing within a period specified
AND THE RIGHT OF APPEAL ADVISED. in national legislation. Where the decision
is adverse to the person concerned, the
CUSTOMS, SHALL, WITHIN THE BOUNDS OF ITS reasons shall be given and the right of
MANDATE UNDER THIS ACT, ISSUE BINDING RULINGS appeal advised.
AT THE REQUEST OF THE INTERESTED PERSON ON
MATTERS PERTAINING TO IMPORTATION OR 9.9. Standard
EXPORTATION OF GOODS, PROVIDED THAT IT HAS ALL
THE INFORMATION THEY DEEM NECESSARY. The Customs shall issue binding rulings at
the request of the interested person,
provided that the Customs have all the
information they deem necessary.
SEC. 130. RIGHT OF APPEAL, FORMS AND GROUND RKC GA Standard 10.2, 10.7, 10.8, 10.9 New provision. Standard policy on
appellate relief.
ANY PERSON WHO IS DIRECTLY AFFECTED BY A 10.2. Standard
DECISION OR OMISSION OF CUSTOMS PERTAINING TO
HIS IMPORTATION OR EXPORTATION OR LEGAL CLAIM Any person who is directly affected by a
SHALL HAVE A RIGHT OF APPEAL. decision or omission of the Customs shall
have a right of appeal.
AN APPEAL IN WRITING SHALL BE LODGED WITHIN THE
SUFFICIENT TIME PERIOD AS SPECIFIED IN THIS ACT 10.7. Standard
OR BY REGULATION STATING THE GROUNDS ON
WHICH IT IS BEING MADE. An appeal shall be lodged in writing and
shall state the grounds on which it is being
CUSTOMS SHALL NOT, AS A MATTER OF COURSE, made.
REQUIRE THAT ANY SUPPORTING EVIDENCE BE
LODGED TOGETHER WITH THE APPEAL BUT SHALL, IN 10.8. Standard
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APPROPRIATE CIRCUMSTANCES, ALLOW A A time limit shall be fixed for the
REASONABLE TIME FOR THE LODGEMENT OF SUCH lodgement of an appeal against a decision
EVIDENCE. of the Customs and it shall be such as to
allow the appellant sufficient time to study
the contested decision and to prepare an
appeal.
10.9. Standard
Where an appeal is to the Customs they

shall not, as a matter of course, require
that any supporting evidence be lodged
together with the appeal but shall, in
appropriate circumstances, allow a
reasonable time for the lodgement of such
evidence.
CHAPTER 3. TYPES OF IMPORTATION
SEC. 131. FREE AND REGULATED IMPORTATIONS AND New provision. This is the first attempt
EXPORTATIONS to statutorily define freely and
regulated importations. Only
UNLESS OTHERWISE PROVIDED BY LAW OR prohibited importation is defined in
REGULATION, ALL ARTICLES MAY BE FREELY the TCCP. Also the word exportation
IMPORTED INTO AND EXPORTED FROM THE is included as the TCCP only mentions
PHILIPPINES WITHOUT NEED FOR IMPORT AND importation. The provision also sets
EXPORT PERMITS, CLEARANCES OR LICENSES. down the policy on when the import
permit or license must be secured.
ARTICLES SUBJECT TO GOVERNMENT REGULATION This allows certain leeway to clear
MAY BE BROUGHT IN OR EXPORTED ONLY AFTER certain regulated goods instead of
SECURING THE REQUIRED IMPORT OR EXPORT subjecting them to undue sanctions
PERMITS, CLEARANCES, LICENSES, AND THE LIKE, such as seizure which does not serve
PRIOR TO IMPORTATION OR EXPORTATION; AND IF primary goals of customs.
ALLOWED BY GOVERNING LAWS OR REGULATIONS,
AFTER ARRIVAL OF THE ARTICLES BUT PRIOR TO
RELEASE FROM CUSTOMS CUSTODY IN CASE OF
IMPORTATION.
SEC. 132. Prohibited Importations AND EXPORTATIONS. SEC 101 Prohibited Importations. Minor amendments. Infringing goods
already included in the list of prohibited
The importation into AND EXPORTATION FROM the imports and so with those defined in
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Philippines of the following articles ARE prohibited: binding international agreements. This
is good for our IPR and other
(a) Dynamite, gunpowder, ammunitions and other The importation into the Philippines of the following articles is international agreement compliance
explosives, firearms and weapons of war, and parts thereof, prohibited: status.
except when authorized by law;
(a) Dynamite, gunpowder, ammunitions and other
(b) Written or printed articles in any form containing explosives, firearms and weapons of war, and parts thereof,
any matter advocating or inciting treason, or rebellion, except when authorized by law.
insurrection, sedition or subversion against the Government of
the Philippines, or forcible resistance to any law of the (b) Written or printed articles in any form containing any
Philippines, or containing any threat to take the life of, or inflict matter advocating or inciting treason, or rebellion, insurrection,
bodily harm upon any person in the Philippines; sedition or subversion against the Government of the
Philippines, or forcible resistance to any law of the Philippines,
(c). Written or printed articles, negatives or or containing any threat to take the life of, or inflict bodily harm
cinematographic film, photographs, engravings, lithographs, upon any person in the Philippines.
objects, paintings, drawings or other representation of an
obscene or immoral character; (c). Written or printed articles, negatives or
cinematographic film, photographs, engravings, lithographs,
(d) Articles, instruments, drugs and substances objects, paintings, drawings or other representation of an
designed, intended or adapted for producing unlawful obscene or immoral character.
abortion, or any printed matter which advertises or describes
or gives directly or indirectly information where, how or by (d) Articles, instruments, drugs and substances
whom unlawful abortion is produced; designed, intended or adapted for producing unlawful abortion,
or any printed matter which advertises or describes or gives
(e) Roulette wheels, gambling outfits, loaded dice, directly or indirectly information where, how or by whom
marked cards, machines, apparatus or mechanical devices unlawful abortion is produced.
used in gambling or the distribution of money, cigars,
cigarettes or other articles when such distribution is (e) Roulette wheels, gambling outfits, loaded dice,
dependent on chance, including jackpot and pinball machines marked cards, machines, apparatus or mechanical devices
or similar contrivances, or parts thereof; used in gambling or the distribution of money, cigars, cigarettes
or other articles when such distribution is dependent on
(f) Lottery and sweepstakes tickets except those chance, including jackpot and pinball machines or similar
authorized by the Philippine Government, advertisements contrivances, or parts thereof.
thereof, and lists of drawings therein;
(f) Lottery and sweepstakes tickets except those
(g) Any article manufactured in whole or in part of authorized by the Philippine Government, advertisements
gold, silver or other precious metals or alloys thereof, the thereof, and lists of drawings therein.
stamps, brands or marks or which do not indicate the actual
fineness of quality of said metals or alloys;.- (g) Any article manufactured in w hole or in part of gold,
silver or other precious metals or alloys thereof, the stamps,
(h) Any adulterated or misbranded articles of food or brands or marks or which do not indicate the actual fineness of
30
any adulterated or misbranded drug in violation of the quality of said metals or alloys.
provisions of the "Food and Drugs Act";
(h) Any adulterated or misbranded articles of food or
(i) Marijuana, opium, poppies, coca leaves, heroin or any adulterated or misbranded drug in violation of the
any other narcotics or synthetic drugs which are or may provisions of the "Food and Drugs Act".
hereafter be declared habit forming by the President of the
Philippines, or any compound, manufactured salt, derivative, (i) Marijuana, opium, poppies, coca leaves, heroin or
or preparation thereof, except when imported by the any other narcotics or synthetic drugs which are or may
Government of the Philippines or any person duly authorized hereafter be declared habit forming by the President of the
by the Dangerous Drugs Board, for medicinal purposes only; Philippines, or any compound, manufactured salt, derivative, or
preparation thereof, except when imported by the Government
(j) Opium pipes and parts thereof, of whatever of the Philippines or any person duly authorized by the
material; Dangerous Drugs Board, for medicinal purposes only.
(k) INFRINGING GOODS AS DEFINED UNDER THE (j) Opium pipes and parts thereof, of whatever
INTELLECTUAL PROPERTY CODE AND RELATED LAWS; material.
AND
(k) All other articles and parts thereof, the importation of which
(I) All other articles and parts thereof, the importation AND is prohibited by law or rules and regulations issued by
EXPORTATION of which is prohibited by law or rules and competent authority.
regulations issued by competent authority, AND
INTERNATIONAL AGREEMENTS TO WHICH THE
PHILIPPINES IS SIGNATORY.
THE PROHIBITION TO IMPORT OR EXPORT ARTICLES AS

DEFINED HEREIN SHALL INCLUDE THOSE IN TRANSIT.
TITLE 2. BUREAU OF CUSTOMS
CHAPTER 1. GENERAL ADMINISTRATION
SEC. 200. Chief Officials of the Bureau of Customs. SEC 601 Chief Officials of the Bureau of Customs. -The Basis of changes is the BOC Number of Deputy Commissioners is
Bureau of Customs shall have one chief and four assistant Rationalization Plan submitted to DBM open to enable a continuing legal basis
THE BUREAU OF CUSTOMS SHALL HAVE ONE (1) CHIEF chiefs, to be known respectively as the Commissioner of for restructuring the office of deputy
AND AS MANY ASSISTANT CHIEFS TO BE KNOWN Customs (hereinafter known as the Commissioner) and four (4) commissioners.
RESPECTIVELY AS THE COMMISSIONER OF CUSTOMS Deputy Commissioners of Customs, each one to head (a)
AND DEPUTY COMMISSIONERS OF CUSTOMS AS Customs Revenue Collection Monitoring Group; (b) Customs
PROVIDED FOR UNDER EXISTING LAWS AND Assessment and Operations Coordinating Group; (c)
REGULATIONS. THE COMMISSIONER AND THE DEPUTY Intelligence and Enforcement Group; (d) Internal Administration
COMMISSIONERS OF CUSTOMS SHALL BE APPOINTED Group, who shall each receive an annual compensation in
accordance with the rates prescribed by existing law. The
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BY THE PRESIDENT OF THE PHILIPPINES. Commissioner and the Deputy Commissioners of Customs
shall be appointed by the President of the Philippines. (As
amended by E.O. 127 effective 30 January 1987).
In case of temporary and permanent vacancy, one of the

Deputy Commissioners shall be designated by the Secretary of
Finance to act as Commissioner of Customs, until the
incumbent Commissioner reassumes his duties or the position
is filled by permanent appointment.
SEC. 201. Functions of the Bureau. SEC 602 Functions of the Bureau. - The general duties, Trade Facilitation added as a
powers and jurisdiction of the bureau shall include: function which customs has been
The general duties, powers and jurisdiction of the bureau shall discharging as a result of several
include: a. The assessment and collection of the lawful changes introduced in customs
revenues from imported articles and all other dues, fees, processes based on international
a. Assessment and collection of the lawful revenues charges, fines and penalties accruing under the tariff and agreements and best customs
from imported articles and all other dues, fees, charges, fines customs laws; practices.
and penalties accruing under the tariff and customs laws;
b. The prevention and suppression of smuggling and
b. Prevention and suppression of smuggling and other frauds upon the customs;
other frauds upon the customs;
c. The supervision and control over the entrance and
c. FACILITATION AND SECURITY OF clearance of vessels and aircraft engaged in foreign
INTERNATIONAL TRADE AND COMMERCE THROUGH AN commerce;
INFORMED COMPLIANCE PROGRAM;
d. The enforcement of the tariff and custom laws and
d. Supervision and control over the entrance and all other laws, rules and regulations relating to the tariff and
clearance of vessels and aircraft engaged in foreign customs administration;
commerce;
e. The supervision and control over the handling of
e. Enforcement of the tariff and custom laws and all foreign mails arriving in the Philippines, for the purpose of the
other laws, rules and regulations relating to the tariff and collection of the lawful duty on the dutiable articles thus
customs administration; imported and the prevention of smuggling through the medium
of such mails;
f. Supervision and control over the handling of
foreign mails arriving in the Philippines, for the purpose of the f. Supervise and control all import and export cargoes,
collection of the lawful duty on the dutiable articles thus landed or stored in piers, airports, terminal facilities, including
imported and the prevention of smuggling through the medium container yards and freight stations, for the protection of
of such mails; government revenue;
g. Supervision and control of all import and export g. Exercise exclusive original jurisdiction over seizure
32
cargoes, landed or stored in piers, airports, terminal facilities, and forfeiture cases under the tariff and customs laws
including container yards and freight stations, for the
protection of government revenue;
h. Exercise of exclusive original jurisdiction over

seizure and forfeiture cases under this Act; and
I. SUCH OTHER DUTIES, FUNCTIONS AND

JURISDICTION AS PROVIDED FOR IN THIS ACT AND
OTHER LAWS.
SEC. 202. Annual Report of Commissioner. SEC 607 Annual Report of Commissioner. - The annual report Minor amendment on the name of
of the Commissioner to the President shall, among other Central Bank and the DBM. NEDA is
The annual report of the Commissioner to the President shall, things, contain a compilation of the (a) quantity and value of included as recipient of copies of BoC
among other things, contain a compilation of the (a) quantity the articles imported into the Philippines and the corresponding report.
and value of the articles imported into the Philippines and the amount of custom duties, taxes and other charges assessed
corresponding amount of custom duties, taxes and other and collected on imported articles itemized in accordance with
charges assessed and collected on imported articles itemized the tariff headings and subheadings as appearing the
in accordance with the tariff headings and subheadings as liquidated customs entries provided for in this Code, (b)
appearing in the liquidated customs entries provided for in this percentage collection of the peso value of imports, (c) quantity
Code, (b) percentage collection of the peso value of imports, and value of conditionally -free importations, (d) customs
(c) quantity and value of conditionally-free importations, (d) valuation over and above letters of credit opened, (e) quantity
customs valuation over and above letters of credit opened, (e) and value of tax -free imports, and (f) the quantity and value of
quantity and value of tax-free imports, and (f) the quantity and articles exported from the Philippines as well as the taxes and
value of articles exported from the Philippines as well as the other charges assessed and collected on them for the
taxes and other charges assessed and collected on them for preceding year. Copies of such annual report shall be
the preceding year. Copies of such annual report shall be furnished regularly to the Department of Finance,Tariff
furnished regularly to the Department of Finance, Tariff Commission, NEDA, Central Bank of the Philippines. Board of
Commission, NEDA, BANGKO SENTRAL NG PILIPINAS, Investments, Department of the Budget, and other economic
Board of Investments, Department of Budget AND agencies of the government, on or before December 30, of
MANAGEMENT, and other economic agencies of the each year.
government, on or before December 30, of each year.
For more scientific preparation of the annual report, the
Commissioner shall cause computerization of the data
contained in the liquidated entries filed with the Bureau of
Customs.
SEC. 203. Commissioner to Make Rules and Regulations. SEC 608 Commissioner to Make Rules and Regulations. - The Minor amendment. Same as above.
Commissioner shall, subject to approval of the Secretary of This time on BoC issuances (rules and
33
The Commissioner shall, subject to approval of the Secretary Finance, promulgate all rules and regulations necessary to regulations)
of Finance, promulgate all rules and regulations necessary to enforce the provisions of this Code. He shall also cause the
enforce the provisions of this ACT. He shall also cause the preparation and publication of a customs manual covering up-
preparation and publication of a customs manual covering up- to-date rules and regulations and decisions of the Bureau of
to-date rules and regulations and decisions of the Bureau of Customs. The manual shall be published and made available
Customs. The manual shall be published and made available to the public at least once every quarter within the first month
to the public at least once every quarter within the first month after the end of every quarter. The Secretary of Finance and/or
after the end of every quarter. The Secretary of Finance the Commissioner of Customs shall furnish the Central Bank of
and/or the Commissioner of Customs shall furnish the the Philippines, Board of Investments, the NEDA and the Tariff
BANGKO SENTRAL NG PILIPINAS, Board of Investments, Commission with at least three copies each of every
the NEDA and the Tariff Commission with at least three department order, administrative order, memorandum circulars
copies each of every department order, administrative order, and such rules and regulations which a promulgated from time
memorandum circulars and such rules and regulations which to time for the purpose of implementing the provisions of the
a promulgated from time to time for the purpose of Code.
implementing the provisions of THIS ACT.
SEC. 204. Commissioner to Furnish Copies of Collectors' SEC 609 Commissioner to Furnish Copies of Collectors' Minor amendment. NEDA BIR NSO to
Liquidated Duplicates. Liquidated Duplicates. The Commissioner shall regularly be provided copies of liquidated
furnish the NEDA, the Central Bank of the Philippines, the entries. CB is excluded due to foreign
The Commissioner shall regularly furnish the NEDA, the Tariff Commission a copy of each of all customs import/export exchange liberalization.
NATIONAL STATISTICS OFFICE, BUREAU OF INTERNAL entries as filed with the Bureau of Customs. The Tariff
REVENUE, the Tariff Commission, a copy of each of all Commission or its duly authorized agents shall have access to
customs import/export entries as filed with the Bureau of and the right to copy all the customs liquidated import entries
Customs. The Tariff Commission or its duly authorized agents and other documents appended thereto as finally filed in the
shall have access to and the right to copy all the customs Commission on Audit
liquidated import entries and other documents appended
thereto as finally filed in the Commission on Audit.
CHAPTER 2. PORTS AND COLLECTION DISCTRICTS
SEC. 205. Collection Districts and Ports of Entry Thereof. SEC701 Collection Districts and Ports of Entry Thereof. - For New provision requires National Port
administrative purposes, the Philippines shall be divided into as Authorities to provide free of charge
The principal ports of entry for the RESPECTIVE many collection districts as necessary, the respective limits of appropriate facilities to customs to
COLLECTION DISTRICTS SHALL BE APARRI, SAN which may be changed from time to time by the Commissioner effectively perform its tasks. Expect
FERNANDO, MANILA, MANILA INTERNATIONAL of Customs upon approval of the Secretary of Finance. The some resistance from Port authorities
CONTAINER PORT, NINOY AQUINO INTERNATIONAL principal ports of entry for the respective collection districts and arrastre operators. But for the
AIRPORT, SUBIC, CLARK, BATANGAS, LEGASPI, ILOILO, shall be Manila, Manila International Container Port, Ninoy longest time, BoC has been at the
CEBU, TACLOBAN, SURIGAO, CAGAYAN DE ORO, Aquino International Airport, Cebu, Iloilo, Davao, Tacloban, mercy of these entities in carrying out
ZAMBOANGA, DAVAO, LIMAY AND SUCH OTHER PORTS Zamboanga, Cagayan de Oro, Surigao, Legaspi, Batangas, its mandate.
THAT MAY BE CREATED PURSUANT TO THIS ACT. San Fernando, and Subic.
34
THE SEA PORT AND AIRPORT AUTHORITIES AND
PRIVATE PORT OPERATORS SHALL PROVIDE FREE OF
CHARGE, APPROPRIATE FACILITIES TO ENABLE
CUSTOMS TO EFFECTIVELY PERFORM ITS MANDATE
PURSUANT TO CUSTOMS AND TARIFF LAWS.
SEC. 206. Power of the Secretary of Finance to Open and SEC 702 Power of the President to Open and Close Any Port. - Power was delegated to the Secretary
Close Any Port. The president may open or close any port of entry upon of Finance.
recommendation of the Commissioner and the Secretary of
Finance. When a port of entry is closed, its existing personnel
shall be reassigned to other duties by the Commissioner
The Secretary of Finance may open or close any port of entry subject to the approval of the Secretary of Finance.
upon recommendation of the Commissioner. When a port of
entry is closed, its existing personnel shall be reassigned to
other duties by the Commissioner subject to the approval of
the Secretary of Finance. In all cases, the Secretary of
Finance shall report to the President any action taken on the
opening or closure of any port of entry.
SEC. 207. Designation of Airports of Entry. SEC 1101 Designation of Airports of Entry. - The Secretary of En toto
Finance, upon recommendation the Commissioner and the
The Secretary of Finance, upon recommendation of the Director of the Civil Aeronautics Administration is authorized to
Commissioner and the Director of the Civil Aeronautics designate airports of entry for civil aircraft arriving in the
BOARD is authorized to designate airports of entry for civil Philippines from any place outside thereof and for articles
aircraft arriving in the Philippines from any place outside carried such aircraft. Such airport of entry shall be considered
thereof and for articles carried such aircraft. Such airport of as a port of entry for aliens arriving on such aircraft as a place
entry shall be considered as a port of entry for aliens arriving of quarantine inspection.
on such aircraft as a place of quarantine inspection.
SEC. 208. Assignment of Customs Officers and SEC 703 Assignment of Customs Officers and Employees to BOC Commissioner to assign officer
Employees to Other Duties. Other Duties. - The Commissioner of Customs may, with the with salary grade 25 and below. DOF
approval of the Secretary of Finance, assign any employee of Secretary to assign officer with salary
the Bureau of Customs to any port, service, division or office grade 25 and above
within the Bureau or assign him duties as the best interest of
The Commissioner of Customs may assign any employee or the service may require, in accordance with the staffing pattern
officer of the Bureau of Customs with a civil service salary or organizational set -up as may be prescribed by the
grade below 25 (twenty-five) to any port, service, division or Commissioner of Customs with the approval of the Secretary of
office within the Bureau or assign him duties as the best Finance: Provided, That such assignment shall not affect the
interest of the service may require, in accordance with the tenure of office of the employees nor result in the change of
staffing pattern or organizational set-up as may be prescribed status, demotion in rank and/or deduction in salary.
by law. When the employee or officer sought to be assigned
35
holds a position with a salary grade of 25 (twenty-five) or
above, such order of assignment shall be subject to the
approval by the Secretary of Finance. Provided, that such
assignment shall not affect the tenure of office of the
employees nor result in the change of status, demotion in rank
and/or deduction in salary.
SEC. 209. Authority of Deputy Collectors of Customs. SEC 705 Authority of Deputy Collectors of Customs. - The En toto
deputy collector at a principal port of entry may, in the name of
The deputy collector at a principal port of entry may, in the the District Collector and subject to his supervision and control,
name of the District Collector and subject to his supervision perform any particular act which might be done by the District
and control, perform any particular act which might be done Collector himself; at subports, a deputy collector may, in his
by the District Collector himself. at subports, a deputy own name, exercise the general powers of a collector, subject
collector may, in his own name, exercise the general powers to the supervision and control of the Collector of the subport.
of a collector, subject to the supervision and control of the
Collector of the subport.
Collectors may, with the approval of the Commissioner,

appoint from their force such number of special deputies as
may be necessary for the proper conduct of the public
business, with authority to sign documents and perform such
service as may be specified in writing.
SEC. 210. Jurisdiction of Collector Over Importation of SEC 1206 Jurisdiction of Collector Over Importation of Articles. Minor amendment. Valued for
Articles. - The Collector shall cause all articles entering the jurisdiction customs purposes replaces the word
of his district and destined for importation through his port to be appraisal to make it consistent with
The Collector shall cause all articles entering the jurisdiction entered at the customhouse, shall cause all such articles to be the transaction value system.
of his district and destined for importation through his port to appraised and classified, and shall assess and collect the
be entered at the customhouse, shall cause all such articles to duties, taxes, and other charges thereon, and shall hold
be VALUED FOR CUSTOMS PURPOSES and classified, and possession of all imported articles upon which duties, taxes,
shall assess and collect the duties, taxes, and other charges and other charges have not been paid or secured to be paid,
thereon, and shall hold possession of all imported articles disposing of the same according to law.
upon which duties, taxes, and other charges have not been
paid or secured to be paid, disposing of the same according to
law.
SEC. 211. Jurisdiction of Collector Over Articles of SEC 1207 Jurisdiction of Collector Over Articles of Prohibited Minor amendment. The word
Prohibited Importation AND EXPORTATION. Importation - Where articles are of prohibited importation or exportation was added since TCCP
subject to importation only upon conditions prescribed by law, it only covers importation.
Where articles are of prohibited importation or shall be the duty of the Collector to exercise such jurisdiction in
EXPORTATION OR subject to importation OR respect thereto as will prevent importation or otherwise secure
36
EXPORTATION only upon conditions prescribed by law, it compliance with all legal requirements.
shall be the duty of the Collector to exercise such jurisdiction
in respect thereto as will prevent importation OR
EXPORTATION or otherwise secure compliance with all legal
requirements
SEC. 212. Authority of the Collector of Customs to Hold SEC 1508 Authority of the Collector of Customs to Hold the En toto
the Delivery or Release of Imported Articles. Delivery or Release of Imported Articles. - Whenever any
importer, except the government, has an outstanding and
Whenever any importer, except the government, has an demandable account with the Bureau of Customs, the Collector
outstanding and demandable account with the Bureau of shall hold the delivery of any article imported or consigned to
Customs, the Collector shall hold the delivery of any article such importer unless subsequently authorized by the
imported or consigned to such importer unless subsequently Commissioner of Customs, and upon notice as in seizure
authorized by the Commissioner of Customs, and upon notice cases, he may sell such importation or any portion thereof to
as in seizure cases, he may sell such importation or any cover the outstanding account of such importer; Provided,
portion thereof to cover the outstanding account of such however, That at any time prior to the sale, the delinquent
importer; Provided, however, That at any time prior to the importer may settle his obligations with the Bureau of Customs,
sale, the delinquent importer may settle his obligations with in which case the aforesaid articles may be delivered upon
the Bureau of Customs, in which case the aforesaid articles payment of the corresponding duties and taxes and
may be delivered upon payment of the corresponding duties compliance with all other legal requirements.
and taxes and compliance with all other legal requirements.
SEC. 213. Succession of Deputy Collector to Position of SEC 707 Succession of Deputy Collector to Position of Acting En toto
Acting Collector. Collector. - In the absence or disability of a Collector at any
port or in the case of a vacancy in his office, the temporary
In the absence or disability of a Collector at any port or in discharge of his duties shall devolve upon the deputy collector
case of a vacancy in his office, the temporary discharge of his of the port. Where no deputy collector is available, an official to
duties shall devolve upon the deputy collector of the port. serve in such contingency may be designated in writing by the
Where no deputy collector is available, an official to serve in Collector from his own force. The Collector making such
such contingency may be designated in writing by the designation shall report the same without delay to the
Collector from his own force. The Collector making such Commissioner and the Chairman, Commission on Audit,
designation shall report the same without delay to the forwarding to them the signature of the person so designated.
Commissioner and the Chairman, Commission on Audit,
forwarding to them the signature of the person so designated.
SEC. 214. Designation of Official as Customs Inspector. SEC708 Designation of Official as Customs Inspector. -At a En toto
coastwise port where no customs official or employee is
At a coastwise port where no customs official or employee is regularly stationed, the Commissioner may designate any
regularly stationed, the Commissioner may designate any national, provincial or municipal official of the port to act as an
national, provincial or municipal official of the port to act as an inspector of customs for the purpose of enforcing laws and
inspector of customs for the purpose of enforcing laws and regulations of the Bureau of Customs in the particular port; but
37
regulations of the Bureau of Customs in the particular port; but all such designations shall be made with the consent of the
all such designations shall be made with the consent of the proper Department head of the official so designated.
proper Department head of the official so designated.
SEC. 215. DETERMINATION OF THE DE MINIMIS VALUE. SEC 709 Authority of Collector to Remit Duties. -A Collector RKC GA Standard 4.13 requires express This is to save government resources
shall have discretionary authority to remit the assessment and provision de minimis value or minimum on dutiable import transactions with
THE SECRETARY OF FINANCE, UPON THE collection of custom duties, taxes and other charges when the duty and tax payment insignificant revenue generation.
RECOMMENDATION OF THE COMMISSIONER OF aggregate amount of such duties, taxes and other charges is
CUSTOMS, SHALL ESTABLISH THE DE MINIMIS VALUE less than ten pesos, and he may dispense with the seizure of 4.13. Transitional Standard
OR A MINIMUM AMOUNT OF DUTIES AND TAXES BELOW articles of less than ten pesos in value except in cases of
WHICH NO DUTIES AND TAXES SHALL BE COLLECTED. prohibited importations or the habitual or the intentional National legislation shall specify a
violation of the tariff and customs laws. minimum value and/or a minimum amount
of duties and taxes below which no duties
and taxes will be collected.
SEC. 216. Records to be kept by Customs Officials. SEC 710 Records to be Kept by Customs Officials. - District Minor amendment. The provision on
Collectors, deputy collectors, and other customs officials acting document dry seal was transferred
District Collectors, deputy collectors, and other customs in such capacities are required to keep true, correct and here as being the more appropriate
officials acting in such capacities are required to keep true, permanent records of their official transactions, to submit the section in terms of subject.
correct and permanent records of their official transactions, to same to the inspection of authorized officials at all times, and
submit the same to the inspection of authorized officials at all turn over all records and official papers to their successors or
times, and turn over all records and official papers to their other authorized officials.
successors or other authorized officials.
IN THE OFFICE OF THE COLLECTOR OF A COLLECTION

DISTRICT, THERE SHALL BE KEPT A DOCUMENT DRY
SEAL OF SUCH DESIGN AS THE COMMISSIONER SHALL
PRESCRIBE WITH WHICH SHALL SEAL ALL DOCUMENTS
AND RECORDS REQUIRING AUTHENTICATION IN SUCH
OFFICE.
SEC. 217. Port Regulations. SEC 711 Port Regulations. -A Collector may prescribe local En toto
administrative regulation, not inconsistent with law or the
A Collector may prescribe local administrative regulation, not general bureau regulations, for the government of his port or
inconsistent with law or the general bureau regulations, for the district, the same to be effective upon the approval by the
government of his port or district, the same to be effective Commissioner.
upon the approval by the Commissioner.
38
SEC. 218. Reports of Collector to Commissioner. SEC 712 Reports of Collector to Commissioner. - A Collector En toto
shall immediately make report to the Commissioner concerning
A Collector shall immediately make report to the prospective or newly begun litigation in his district touching
Commissioner concerning prospective or newly begun matters relating to the customs service; and he shall, in such
litigation in his district touching matters relating to the customs form and detail as shall be required by the Commissioner make
service; and he shall, in such form and detail as shall be regular monthly reports of all transactions in his port and
required by the Commissioner make regular monthly reports district.
of all transactions in his port and district.
TITLE 3. CUSTOMS TERRITORY AND CUSTOMS

CONTROL
CHAPTER 1. CUSTOMS TERRITORY
SEC. 300. Territorial Jurisdiction. SEC 603 Territorial Jurisdiction. - For the due and effective En toto
exercise of the powers conferred by law and to the extent
For the due and effective exercise of the powers conferred by requisite therefore, said Bureau shall have the right of
law and to the extent requisite therefor, said Bureau shall supervision and police authority over all seas within the
have the right of supervision and police authority over all seas jurisdiction of the Philippines and over all coasts, ports,
within the jurisdiction of the Philippines and over all coasts, airports, harbors, bays, rivers, and inland waters whether
ports, airports, harbors, bays, rivers, and inland waters navigable or not from the sea.
whether navigable or not from the sea.
When a vessel becomes subject to seizure by reason of an act
When a vessel becomes subject to seizure by reason of an done in Philippine waters in violation of the tariff and customs
act done in Philippine waters in violation of the tariff and laws, a pursuit of such vessel began within the jurisdictional
customs laws, a pursuit of such vessel began within the waters may continue beyond the maritime zone, and the vessel
jurisdictional waters may continue beyond the maritime zone, may be seized on the high seas. Imported articles which may
and the vessel may be seized on the high seas. Imported be subject to seizure for violation of the tariff and customs laws
articles which may be subject to seizure for violation of the may be pursued in their transportation in the Philippines by
tariff and customs laws may be pursued in their transportation land, water or air and such jurisdiction exerted over them at
in the Philippines by land, water or air and such jurisdiction any place therein as may be necessary for the due
exerted over them at any place therein as may be necessary enforcement of the law.
for the due enforcement of the law.
SEC. 301. Jurisdiction Over Premises Used for Customs SEC 604 Jurisdiction Over Premises Used for Customs En toto
Purposes. Purposes. - The Bureau of Customs shall for customs
purposes, have exclusive control, direction and management of
The Bureau of Customs shall, for customs purposes, have customhouses, warehouses, offices, wharves, and other
exclusive control, direction and management of premises in the respective ports of entry, in all cases without
customhouses, warehouses, offices, wharves, and other prejudice to the general police powers of the city or
premises in the respective ports of entry, in all cases without municipality and the Philippine Coast Guard in the exercise of
39
prejudice to the general police powers of the city or its functions wherein such premises are situated.
municipality and the Philippine Coast Guard in the exercise of
its functions wherein such premises are situated.
SEC. 302. Enforcement of Port Regulation of Bureau of SEC 605 Enforcement of Port Regulation of Bureau of En toto
Quarantine. Quarantine. - Customs employees shall cooperate with the
quarantine authorities in the enforcement of the port quarantine
Customs officials and employees shall cooperate with the regulations promulgated by the Bureau of Quarantine and shall
quarantine authorities in the enforcement of the port give effect to the same in so far as connected with matters of
quarantine regulations promulgated by the Bureau of shipping and navigation.
Quarantine and shall give effect to the same in so far as
connected with matters of shipping and navigation.
SEC. 303. Power of the President to Subject Premises to SEC 606 Power of the President to Subject Premises to En toto
Jurisdiction of Bureau of Customs. Jurisdiction of Bureau of Customs. When public wharf, landing
place, street or land, not previously under the jurisdiction of the
When any public wharf, landing place, street or land, not Bureau of Customs, in any port of entry, is necessary or
previously under the jurisdiction of the Bureau of Customs, in desirable for any proper customs purpose, the President of the
any port of entry, is necessary or desirable for any proper Philippines may, by executive order, declare such premises to
customs purpose, the President of the Philippines may, by be under the jurisdiction of the Bureau of Customs thereafter
executive order, declare such premises to be under the the authority of such Bureau in respect thereto shall be fully
jurisdiction of the Bureau of Customs, and thereafter the effective.
authority of such Bureau in respect thereto shall be fully
effective.
SEC. 304. Trespass or Obstruction of Customs Premises. SEC 2201 Trespass or Obstruction of Customs Premises. - No Minor amendment. The wordings of
person other than those with legitimate business with, or the provision were restructured just to
ONLY PERSONS OR THEIR DULY AUTHORIZED employees of, the port or the Bureau of Customs shall be make it clearer.
REPRESENTATIVES with legitimate business with, or allowed to enter the customs premises without a written
employees of, the port or the Bureau of Customs shall be permission of the Collector. No person shall obstruct a
allowed to enter the customs premises. No person shall customhouse, warehouse, office, wharf, street or other
obstruct a customhouse, warehouse, office, wharf, street or premises under the control of the Bureau of Customs, or in any
other premises under the control of the Bureau of Customs, or approaches to that house or premises.
in any of the approaches to that house or premises.
SEC. 305. Special Surveillance for Protection of Customs SEC 2202 Special Surveillance for Protection of Customs En toto
Revenue and Prevention of Smuggling. Revenue and Prevention of Smuggling. In order to prevent
smuggling and to secure the collection of the legal duties,
In order to prevent smuggling and to secure the collection of taxes and other charges, the customs service shall exercise
the legal duties, taxes and other charges, the customs service surveillance over the coast, beginning when a vessel or aircraft
shall exercise surveillance over the coast, beginning when a enters Philippine territory and concluding when the article
40
vessel or aircraft enters Philippine territory and concluding imported therein has been legally passed through the
when the article imported therein has been legally passed customhouse: Provided, That the function of the Philippine
through the customhouse: Provided, That the function of the Coast Guard to prevent and suppress illegal entry, smuggling
Philippine Coast Guard to prevent and suppress illegal entry, and other customs frauds and violations of the maritime law
smuggling and other customs frauds and violations of the and its proper surveillance of vessels entering and/or leaving
maritime law and its proper surveillance of vessels entering the Philippine territory as provided in section 3 (a) of Republic
and/or leaving the Philippine territory as provided in section 3 Act Numbered Fifty -one hundred and seventy -three shall
(a) of Republic Act Numbered Fifty-one hundred and continue to be in force and effect.
seventy-three shall continue to be in force and effect.
SEC. 306. CUSTOMS WAREHOUSE FOR TEMPORARY New Provision, RKC Specific Annex A, New provision. Authorizes Customs to
STORAGE OF ARTICLES. Chapter 2 establish temporary storage prior to
goods declaration. This will provide
SUBJECT TO THE RULES AND REGULATIONS TO BE 2. Standard express legal basis to the creation of
APPROVED BY THE SECRETARY OF FINANCE, THE special warehouses such as in the
COMMISSIONER OF CUSTOMS SHALL ESTABLISH A The Customs shall authorize the concept of airport warehouses (e.g.
SYSTEM FOR TEMPORARY STORAGE OF IMPORTS establishment of temporary stores PAIRCARGO)
PRIOR TO GOODS DECLARATION. whenever they deem it necessary to meet
the requirements of the trade.
CHAPTER 2. COASTWISE TRADE
SEC. 307. Requirement of Manifest in Coastwise Trade. SEC 906 Requirement of Manifest in Coastwise Trade. - Carriage of Goods Coastwise of Specific En toto
Manifests shall be required for cargo and passengers Annex E of RKC
Manifests shall be required for cargo and passengers transported from one place or port in the Philippines to another
transported from one place or port in the Philippines to only when one or both of such places is a port of entry. RKC Specific Annex E Chapter 3
another only when one or both of such places is a port of
entry. 2. Standard
The Customs shall allow goods to be

transported under the carriage of goods
coastwise procedure on board a vessel
carrying other goods at the same time,
provided that they are satisfied that the
goods can be identified and other
requirements will be met.
SEC. 308. Manifest Required Upon Departure from Port SEC 907 Manifest Required Upon Departure from Port of En toto
of Entry. Entry. - Prior to departure from a port of entry, the master of a
vessel licensed for the coastwise trade shall make out and
Prior to departure from a port of entry, the master of a vessel subscribe duplicate manifests of the whole cargo and all of the
41
licensed for the coastwise trade shall make out and subscribe passengers taken on board on such vessels, specifying in the
duplicate manifests of the whole cargo and all of the cargo manifests the marks and numbers of packages, the port
passengers taken on board on such vessels, specifying in the of destination and names of the consignees, together with such
cargo manifests the marks and numbers of packages, the port further information as may be required and in the passengers
of destination and names of the consignees, together with manifest the name, sex, age, residence, port of embarkation,
such further information as may be required and in the and destination of all passengers, together with such further
passengers manifest the name, sex, age, residence, port of information may be required. He shall deliver such manifests to
embarkation, and destination of all passengers, together with the Collector of Customs or other customs officials duly
such further information as may be required. He shall deliver authorized, before whom he shall swear to the best of his
such manifests to the Collector of Customs or other customs knowledge and belief, in respect to the cargo manifests, that
authorized, before whom he shall swear to the best of his the goods therein described, if foreign, were imported legally
knowledge and belief, in respect to the cargo manifests, that and that the duties, taxes and other charges thereon have
the goods therein described, if foreign, were imported legally been paid or secured to be paid, and with respect to the
and that duties, taxes and other charges thereon have been passenger manifests, that the information therein contained is
paid or secured to be paid, and with respect to the passenger true and correct as to all passengers taken on board.
manifests, that the information therein contained is true and Thereupon, the said Collector of Customs or customs official,
correct as to all passengers taken on board. Thereupon, the shall certify the same on the manifests, the original of which he
said Collector of Customs or customs official, shall certify the shall return to the master with a permit specifying thereon,
same on the manifests, the original of which he shall return to generally, the landing on board such vessel and authorizing
the master with a permit specifying thereon, generally, the him to proceed to his port of destination retaining the
landing on board such vessel and authorizing him to proceed duplicates.
to his port of destination retaining the duplicates.
SEC. 309. Manifests Required Prior to Unloading at Port SEC 908 Manifests Required Prior to Unloading at Port of En toto
of Entry. Entry. - Upon arrival at a port of entry a vessel engaged in the
coastwise trade and prior to the unloading of any port of the
Upon arrival at a port of entry a vessel engaged in the cargo, the master shall deliver to the Collector or other proper
coastwise trade and prior to the unlading of any part of the customs official complete manifests of all the cargo and
cargo, the master shall deliver to the Collector or other proper passengers brought into said port, together with the clearance
customs official complete manifests of all the cargo and manifests of cargo and passengers for said port granted port or
passengers brought into said port, together with the clearance ports of entry from which said vessel may have cleared during
manifests of cargo and passengers for said port granted port the voyage.
or ports of entry from which said vessel may have cleared
during the voyage.
SEC. 310. Departure of Vessel Upon Detailed Manifest. SEC 909 Departure of Vessel Upon - Detailed Manifest. - The En toto
owner, agents or consignees of vessels are required to present
The owner, agents or consignees of vessels are required to the proper detailed manifest before departure of the vessel:
present the proper detailed manifest before departure of the Provided, however, That the Commissioner of Customs may by
vessel: Provided, however, that the Commissioner of Customs regulation permit a vessel to depart coastwise from a port of
42
may by regulation permit a vessel to depart coastwise from a entry upon the filing of a general manifest by the master
port of entry upon the filing of a general manifest by the thereof.
master thereof.
TITLE 4. IMPORT CEARANCE AND FORMALITIES
CHAPTER 1. IMPORT AND GOODS DECLARATION
SEC. 400. Articles to be Imported Only Through SEC 1201 Article to be Imported Only Through Customhouse. - The provision is reworded to include
Customhouse. All articles imported Philippines whether subject to duty or not admission into free zones to complete
shall be entered through a customhouse at a port of entry. the current picture on point of entry for
All articles imported into the Philippines shall be entered imported articles.
AND/OR CLEARED through a customhouse at a port of entry
OR MAY BE ADMITTED TO A FREE ZONE, AS THE CASE
MAY BE.
SEC. 401. Importations Subject to GOODS SEC 1302 Import Entries. - All imported articles, except The FOB/FCA value of imported goods
DECLARATION. importations admitted free of duty under Subsection "k", requiring the filing of formal entry was
section one hundred and five of this Code, shall be subject to a increased to P50 thousand pesos to
UNLESS OTHERWISE PROVIDED FOR IN THIS ACT, all formal or informal entry. Articles of a commercial nature make the threshold rule more realistic
imported articles shall be subject to a formal OR informal intended for sale, barter or hire, the dutiable, value of which is in terms of value of money.
entry. Articles of a commercial nature, the FOB OR FCA Two thousand pesos (P2,000.00) or less, and personal and
value of which is FIFTY THOUSAND PESOS (P50,000.00) or household effects or articles, not in commercial quantity,
less AND personal and household effects or articles, not in imported in passenger's baggage, mail or otherwise, for
commercial quantity, imported in passenger's baggage, mail personal use, shall be cleared on an informal entry whenever Instruction from the Secretary of
or otherwise, for personal use, shall be cleared THROUGH an duty, tax or other charges are collectible. Finance was removed.
informal entry whenever duty, tax or other charges are
collectible. ALL OTHER ARTICLES SHALL BE CLEARED The Commissioner may, upon instruction of the Secretary of
THROUGH A FORMAL ENTRY. Finance, for the protection of domestic industry or of the
revenue, require a formal entry, regardless of value, whatever
The Commissioner may, for the protection of GOVERNMENT be the purpose and nature of the importation.
REVENUE OR WHEN PUBLIC INTEREST DEMANDS,
require a formal entry, regardless of value, whatever be the A formal entry may be for immediate consumption, or under
purpose and nature of the importation. irrevocable domestic letter of credit, bank guarantee or bond
for:
A formal entry may be for immediate consumption OR FOR
CUSTOMS BONDED WAREHOUSING under a. Placing the article in customs bonded warehouse;
WAREHOUSING BOND, irrevocable domestic letter of credit,
bank guarantee or OTHER APPROPRIATE FORM OF b. Constructive warehousing and immediate
SECURITY ALLOWED UNDER CUSTOMS REGULATIONS. transportation to other ports of the Philippines upon proper
43
CUSTOMS TRANSIT AND TRANSSHIPMENT SHALL BE examination and appraisal; or
COVERED BY APPROPRIATE GOODS DECLARATION,
THE FORMALITIES AND CONDITIONS OF WHICH SHALL c. Constructive warehousing and immediate
BE GOVERNED BY CUSTOMS REGULATIONS. exportation.
All importations entered under formal entry shall be covered Import entries under irrevocable domestic letter of credit, bank
by a letter of credit or any verifiable COMMERCIAL document guarantee or bond shall be subject to the provisions of Title V,
evidencing payment or IN CASES WHERE THERE IS NO Book II of this Code.
SALE FOR EXPORT, BY ANY COMMERCIAL DOCUMENT
INDICATING THE COMMERCIAL VALUE OF THE ARTICLE All importations entered under formal entry shall be covered by
FOR CUSTOMS PURPOSES a letter of credit or any other verifiable document evidencing
payment. (R.A. 9135, April 27, 2001)
SEC. 402. Entry of Article in Part for Consumption and in SEC 1303 Entry of Article in Part for Consumption and in Part Amended to state more clearly the
Part for Warehousing. for Warehousing.- Import entries of articles covered by one bill policy on the treatment of goods
of lading may be made simultaneously for both consumption entered partly for consumption and
IMPORT ENTRIES OF ARTICLES COVERED BY ONE BILL and warehousing. Where an intent to export the articles is partly for warehousing.
OF LADING OR AIRWAY BILL CONTAINING ARTICLES IN shown by the bill of lading and invoice, the whole or a part of a
PART FOR CONSUMPTION AND IN PART FOR bill of lading (not less than one package ) may be entered for
WAREHOUSING MAY BE BOTH ENTERED warehousing and immediate exportation. Articles received at
SIMULTANEOUSLY AT THE PORT OF DELIVERY ONE any port from another port in the Philippines on any entry for
FOR CONSUMPTION AND THE OTHER FOR immediate transportation may be entered at the port of delivery
WAREHOUSING. either for consumption or warehousing.
Where an intent to export the articles is shown by the bill of

lading and invoice, the whole or a part of a bill of lading (not
less than one package) may be COVERED BY GOODS
DECLARATION FOR TRANSSHIPMENT. Articles UNDER
CUSTOMS TRANSIT received at any port from another port
in the Philippines may be entered at the port of delivery either
for consumption or warehousing.
SEC. 403. IMPORT ENTRY AND INTERNAL REVENUE SEC 1304 Declaration of the Import Entry. - Except in case of Amended some phrases to make the
DECLARATION. informal entry, no entry of article shall be effected until there provision attuned with the new
shall have been submitted to the collector a written declaration valuation system.
Except in case of informal entry, no entry of imported article under penalties of falsification or perjury, in such form as shall
shall be effected until there shall have been submitted to the be prescribed by the Commissioner, containing statements in
collector a written declaration under penalties of falsification or substance as follows:
perjury, in such form as shall be prescribed by the
a. That the entry delivered to the Collector contains a
44
Commissioner, containing statements in substance as follows: full account of the value or price articles, including subject of
the entry;
a. That the entry delivered to the Collector contains a
full account of the value or price of said articles, including b. That the invoice and entry contain a just and faithful
subject of the entry; account of the value or price of said articles including and
specifying the value of all containers or coverings, and that
b. That the invoice and entry contain AN ACCURATE nothing has been omitted, therefrom or concealed whereby the
and faithful account of the value or price of said articles, Government of the Republic of the Philippines be defrauded of
including and specifying the value of all containers or any part of the duties lawfully due on the articles;
coverings, AND OTHER ADJUSTMENTS TO THE PRICE
ACTUALLY PAID OR PAYABLE, and that nothing has been c. That, to the best of the declarant's information and
omitted therefrom or concealed whereby the government of belief, all the invoces and bills of lading to the articles are the
the Republic of the Philippines might be defrauded of any part only ones in existence relating to the importation in question
of the duties AND TAXES lawfully due on the articles; and that they are in the state in which they were actually
received by him;
c. That, to the best of the declarant's information and
belief, all the invoices and bills of lading relating to the articles d. That, to the best of the declarant's information and
are the only ones in existence relating to the importation in belief, the entries, invoices and bills of lading and the
question and that they are in the state in which they were declaration thereon under penalties of falsification of perjury
actually received by him; are in all respects genuine and true, and were made by the
person by whom the same purpose to have been made.
d. That, to the best of the declarant's information and
belief, the entries, invoices and bills of lading OR AIRWAY
BILLS, and the declaration thereon under penalties of
falsification or perjury are in all respects genuine and true; and
e. That, to the best of the declarant's information and

belief, the entries, invoices and bills of lading and the
declaration thereon under penalties of falsification or perjury
are in all respects genuine and true.
SEC. 404. Form and Content of GOODS Declaration. SEC 1306 Forms and Contents of Import Entry. - Import RKC GA Standards 3.10, 3.12. 7.2 and Minor amendments to lay basis for
entries shall be in the required number of copies in such forms 7.4; RKC Specific Annex A, Chapter 1 declaration in electronic format.
GOODS declarations shall be IN SUCH FORM AND in SUCH as prescribed by regulations. They shall be signed by the Standard 8
number of copies as SHALL BE prescribed by regulations. person making the entry of the articles, and shall contain the
They shall contain the names of the importing vessel or names of the importing vessel or aircraft, port of departure and 3.10. Standard
aircraft, port of departure and date of arrival, the number and date of arrival, the number and marks of packages, or the
marks of packages, or the quantity, if in bulk, the nature and quantity, if in bulk, the nature and correct commodity The Customs shall not require a separate
correct commodity description of the articles contained description of the articles contained therein, and its value as Goods declaration in respect of samples
therein, and its value as set forth in a proper invoice to be set forth in a proper invoice to be presented in duplicate the allowed to be drawn under Customs
supervision, provided that such samples
45
presented in duplicate with the entry. entry. are included in the Goods declaration
concerning the relevant consignment.
3.12. Standard
The Customs shall limit the data required

in the Goods declaration to only such
particulars as are deemed necessary for
the assessment and collection of duties
and taxes, the compilation of statistics and
the application of Customs law.
7.2. Standard
When introducing computer applications,

the Customs shall use relevant
internationally accepted standards.
7.4. Standard
New or revised national legislation shall

provide for:
electronic commerce methods

as an alternative to paper-based
documentary requirements;
electronic as well as paper-

based authentication methods;
the right of the Customs to

retain information for their own use and, as
appropriate, to exchange such information
with other Customs administrations and all
other legally approved parties by means of
electronic commerce techniques.
RKC Specific Annex A Chapter 1
8. Standard
Where the Customs require

46
documentation in respect of the production
of the goods to the Customs, this shall not
be required to contain more than the
information necessary to identify the
goods and the means of transport.
SEC. 405. Description of Articles. SEC 1307 Description of Articles. - The description of the COMMON PROVISION, RKC GA A catch-all phrase is added to expand
articles in the import entry must be in sufficient detail to enable Standard 3.19; RKC SA Annex A Chapter the field of information required to be
The description of the articles in the import entry must be in the articles to be identified both for tariff classification and 1 Standard12 furnished in goods declaration to
sufficient detail to enable the articles to be identified both for statistical purposes, and if specifically classified in this Code, in enable customs to do a more
tariff classification and statistical purposes, and if specifically the tariff description of terms of the headings subheadings of 3.19. Standard appropriate assessment.
classified in this ACT in the tariff description of terms of the this Code and in the currency of the invoice; and the quantity
headings or subheadings of this ACT and in the currency of and values of each of the several classes of articles shall be The Customs shall not require a
the invoice, AND IN SUCH OTHER PARTICULARS separately declared according to their respective headings or translation of the particulars of supporting
NECESSARY FOR THE PROPER ASSESSMENT AND subheadings and the totals of each heading or subheading documents except when necessary to
COLLECTION OF DUTIES AND TAXES IN COMPLIANCE shall be duty shown. permit processing of the Goods
WITH CUSTOMS AND RELATED LAWS; and the quantity declaration.
and values of each of the several classes of articles shall be
separately declared according to their respective headings or RKC Specific Annex A Chapter 1 Standard
subheadings and the totals of each heading or subheading 12
shall be duty shown.
12. Recommended Practice
Where the documents produced to the

Customs are made out in a language
which is not specified for this purpose or in
a language which is not a language of the
country into which the goods are
introduced, a translation of the particulars
given in those documents should not be
required as a matter of course.
SEC. 406. Commercial AND NON-COMMERCIAL Invoice. SEC 1308 Commercial Invoice. - Contents of commercial Amended to make provision consistent
invoice of articles imported Philippines shall in all cases set with the new valuation system.
Contents of Commercial invoice of articles imported in the forth all the following:
Philippines shall in all cases set forth all the following:
a. The place where, the date when, and the person by
THE AGREED PRICE PAID OR PAYABLE FOR THE whom and the person to whom the articles are sold or agreed
GOODS; to be sold, or if to be imported otherwise than in pursuance of a
47
The place where, the date when, and the person by whom purchase place from which shipped, the date when the person
and the person to whom the articles are sold or agreed to be to whom and the person by whom they are shipped;
sold, or if to be imported otherwise than in pursuance of a
purchase, the place from which shipped, the date when the b. The port of entry to which the articles are destined;
person to whom and the person by whom they are shipped;
c. A detailed description of the articles according to
All charges upon the articles itemized by name and amount the terms of the heading or subheadings, if specifically
when known to the seller or shipper; or all charges by name, mentioned in this code, otherwise the description must be in
e.g., SELLING commission, insurance, freight, COST OF sufficient detail to enable the articles to be identified both for
cases, containers, coverings and packing, AND ALL OTHER tariff classification and statistical purposes, indicating their
ADJUSTMENTS TO THE PRICE PAID OR PAYABLE, correct commodity description, in customary terms or
included in invoice prices when the amount for such charges commercial designation, including the grade or quality,
are unknown to the seller or shipper; numbers, marks or symbols under which they are sold by the
seller or manufacturer, together with the marks and number of
The port of entry to which the articles are destined; the packages in which the articles are packed;
A detailed description of the articles according to the terms of d. The quantities in the weights and measures of the
the heading or subheadings, if specifically mentioned in this country or place from which the articles are shipped, and in the
ACT, otherwise the description must be in sufficient detail to weights and measures used in this Code;
enable the articles to be identified both for tariff classification
and statistical purposes, indicating their correct commodity e. The purchase price of each article in the currency of
description, in customary terms or commercial designation, the purchase and in the unit of the quantity in which the articles
including the grade or quality, numbers, marks or symbols were bought and sold in the place of country of exportation, if
under which they are sold by the seller or manufacturer, the articles are shipped in pursuance of a purchase or an
together with the marks and number of the packages in which agreement to purchase;
the articles are packed;
f. If the articles are shipped otherwise than in
The quantities in the weights and measures of the country or pursuance of the purchase or an agreement to purchase, the
place from which the articles are shipped, and in the weights value of each article in the unit of quantity in which the articles
and measures used in the ACT; are usually bought and sold, and in the currency in which the
transactions are usually made, or, in the absence of such
The purchase price of each article in the currency of the value, the price in such currency which the manufacturer,
purchase and in the unit of the quantity in which the articles seller, shipper or owner would have received, or was willing to
were bought and sold in the place of country of exportation, if receive, for such articles if sold in the ordinary course of trade
the articles are shipped in pursuance of a purchase or an and in the usual wholesale quantities in the country of
agreement to purchase; and exportation;
If the articles are shipped otherwise than in pursuance of the g. All charges upon the articles itemized by name and
purchase or an agreement to purchase, the value of each amount when known to the seller or shipper; or all charges by
article in the unit of quantity in which the articles are usually name (e.g., commission, insurance, freight, cases, containers,
bought and sold, and in the currency in which the transactions coverings and cost of packing) included in invoice prices when
48
are usually made, or, in the absence of such value, the price the amount for such charges are unknown to the seller or
in such currency which the manufacturer, seller, shipper or shipper;
owner would have received, or was willing to receive, for such
articles if sold in the ordinary course of trade and in the usual h. All discounts, rebates, drawbacks and bounties
wholesale quantities in the country of exportation; separately itemized allowed upon the exportation of the
articles, all internal and excise taxes applicable to the home
Any other facts deemed necessary to THE proper market;
examination, VALUATION and classification of the articles AS
MAY BE PRESCRIBED BY REGULATIONS. i. The current home consumption value or price of
which same, like or similar article is offered or for sale for
TO THE EXTENT POSSIBLE, THE ABOVE exportation to the Philippines, on the date the invoice is
REQUIREMENTS SHALL APPLY FOR GOODS ON prepared or the date of exportation; and,
CONSIGNMENT, SAMPLES OR DONATIONS COVERED
BY A PRO-FORMA INVOICE, CONSIGNMENT INVOICE OR Any other facts deemed necessary to a proper examination,
ANY OTHER NON-COMMERCIAL INVOICE. appraisement and classification of the articles which the
Commissioner may require.
SEC. 407. MODE AND MANNER OF PAYMENT; TRADE New provision adopting as a national
TERMS policy international best trade and
customs practices on mode and
SUBJECT TO EXISTING LAWS AND RULES ON FOREIGN manner of payment/trade/commercial
CURRENCY EXCHANGE, THE INTERNATIONALLY- terms.
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 E.G.,
INCOTERMS 2000, AND ON INTERNATIONAL LETTERS
OF CREDIT SUCH AS THE UNIFORM CUSTOMS AND
PRACTICE FOR DOCUMENTARY CREDITS (UCP 600),
SHALL BE RECOGNIZED.
SEC. 408. REQUEST FOR Classification and VALUATION SEC 1313 Information Furnished on Classification and Value. Minor amendment redefining subject of
RULING. query with respect to customs
a. As to classification. - When an article imported or valuation to make provision in line with
As to classification. - When an article imported or intended to intended to be imported is not specifically classified in this the transaction value system.
be imported is not specifically classified in this ACT, the Code, the interested party, imported or foreign exporter may
interested party, importer or foreign exporter may submit to submit to the Tariff Commission a sample together with a full
the Tariff Commission a sample together with a full description description of its component materials and uses, and request it
49
of its component materials and uses, and request it in writing in writing to indicate the heading under which the article is or
to indicate the heading under which the article is or shall be shall be dutiable, and the Tariff Commission shall comply with
dutiable, and the Tariff Commission shall comply with such such requests within thirty days from receipt thereof if it is
requests within thirty days from receipt thereof if it is satisfied satisfied that the application is made in good faith, in which
that the application is made in good faith, in which case case classification of the article in question upon the particular
classification of the article in question upon the particular importation involved shall be made according to the heading
importation involved shall be made according to the heading indicated by the Tariff Commission: Provided, however, That
indicated by the Tariff Commission: Provided, however, that such rulings of the Tariff Commission on commodity
such rulings of the Tariff Commission on commodity classification, shall be binding upon the Bureau of Customs,
classification, shall be binding upon the Bureau of Customs, unless the Secretary shall rule otherwise.
unless the Secretary OF FINANCE shall rule otherwise.
b. As to Value. - Upon written application of owner or
As to Value. - Upon written application of owner or his agent, his agent, the Collector shall furnish any importer within thirty
the Collector shall ISSUE A VALUATION RULING ON ANY days from receipt thereof the latest information in his
ISSUE RELATING TO THE APPLICATION OF THE RULES possession as to the dutiable value of the articles to be entered
ON CUSTOMS VALUATION within thirty days from receipt at his port, after arrival or upon satisfactory evidence that they
thereof: Provided, That the RULING shall be given only if the have been exported and are enroute to the Philippines:
Collector is satisfied after questioning the importer and Provided, That the information shall be given only if the
examining all pertinent papers presented to him, such as Collector is satisfied after questioning the importer and
invoices, contracts of sale or purchase, orders and other examining all pertinent papers presented to him, such as
commercial documents that the importer is acting in good faith invoices; contracts of sale or purchase, orders other
and is unable to DETERMINE THE PROPER APPLICATION commercial documents that the importer is acting in good faith
OF A SPECIFIC CUSTOMS VALUATION RULE/PRINCIPLE and is unable to obtain proper information as to the dutiable
OR SET OF RULES/PRINCIPLES TO HIS SPECIFIC value of the articles on the date of exportation due to unusual
IMPORTATION. conditions: And, Provided, further, That the information so
given is in no sense an appraisal or binding upon the
Collector's action on appraisal.
SEC. 409. Forwarding of Cargo and Remains of Wrecked SEC 1314 Forwarding of Cargo and Remains of Wrecked En toto
Vessel or Aircraft. Vessel or Aircraft. - When vessels or aircrafts are wrecked
within the Philippines, application must be made to the
When vessels or aircrafts are wrecked within the Philippines, Commissioner by the original owners or consignees of the
application must be made to the Commissioner by the original cargo, or by the underwriters, in case of abandonment to them,
owners or consignees of the cargo, or by the underwriters, in for permission to forward the articles saved from the wreck to
case of abandonment to them, for permission to forward the the ports of destination, in other conveyance, without entry at
articles saved from the wreck to the ports of destination, in the customhouse in the district in which the article was cast
other conveyance, without entry at the customhouse in the ashore or unladen. On receipt of such permission, the articles
district in which the article was cast ashore or unladen. On may be so forwarded with particular manifests thereof, duly
receipt of such permission, the articles may be so forwarded certified by customs officials in charge of the articles.
with particular manifests thereof, duly certified by customs
50
officials in charge of the articles. If the owner of the vessel or aircraft wishes to export the
remains of the wreck, he may be permitted to do so upon
If the owner of the vessel or aircraft wishes to export the proper examination and inspection.
remains of the wreck, he may be permitted to do so upon
proper examination and inspection. The remains of a The remains of a wrecked vessel shall be considered to be not
wrecked vessel shall be considered to be not only the hull and only the hull and rigging of the same but also all sea stores and
rigging of the same but also all sea stores and articles of articles of equipment, such as sails, ropes, chains, anchors
equipment, such as sails, ropes, chains, anchors and so forth. and so forth.
SEC. 410. Derelicts and Articles from Abandoned SEC 1315 Derelicts and Articles from Abandoned Wrecks. - En toto
Wrecks. Derelicts and all articles picked at sea or recovered from
abandoned wrecks, shall be taken possession of in the port or
Derelicts and all articles picked at sea or recovered from district where they shall first arrive, and be retained in the
abandoned wrecks, shall be taken possession of in the port or custody of the Collector, and if not claimed and entered, as the
district where they shall first arrive, and be retained in the case may be, by the owner, underwriter or salvor, shall be
custody of the Collector, and if not claimed and entered, as dealt with as unclaimed property.
the case may be, by the owner, underwriter or salvor, shall be
dealt with as unclaimed property. When such articles are brought into port by lighters or other
craft, each of such vessels shall make entry by manifest of her
When such articles are brought into port by lighters or other cargo.
craft, each of such vessels shall make entry by manifest of her
cargo. If, in case of wreck, there be no customhouse at the point
where the vessel or aircraft is wrecked, coastguard or customs
If, in case of wreck, there be no customhouse at the point official nearest the scene of the wreck shall render all possible
where the vessel or aircraft is wrecked, the coastguard or aid in saving the crew and cargo of the vessel or aircraft, taking
customs official nearest the scene of the wreck shall render all charge of the articles saved and giving immediate notice to the
possible aid in saving the crew and cargo of the vessel or Collector or the nearest customhouse.
aircraft, taking charge of the articles saved and giving
immediate notice to the Collector or the nearest customhouse. In order to prevent any attempt to defraud the revenue the
Collector shall be presented at the salvage of the cargo by
In order to prevent any attempt to defraud the revenue the customs officials detailed for that purpose, who shall examine
Collector shall be presented at the salvage of the cargo by and countersign the inventory made of such cargo and receive
customs officials detailed for that purpose, who shall examine a copy of the same.
and countersign the inventory made of such cargo and
receive a copy of the same. Derelicts and articles salvaged from foreign vessels or aircrafts
picked up at sea, or taken from wreck is prima facie dutiable
Derelicts and articles salvaged from foreign vessels or and may be entered for consumption or warehousing. If
aircrafts picked up at sea, or taken from wreck is prima facie claimed to be of Philippine production, and consequently free,
dutiable and may be entered for consumption or warehousing. proof must be adduced as in ordinary cases of reimportation of
If claimed to be of Philippine production, and consequently articles. Foreign articles landed from a vessel or aircraft in
free, proof must be adduced as in ordinary cases of re-
51
importation of articles. Foreign articles landed from a vessel or distress is dutiable if sold or disposed of in the Philippines.
aircraft in distress is dutiable if sold or disposed of in the
Philippines. Before any article which has been taken from a recent wreck
shall be admitted to entry, the same shall be appraised, and
Before any article which has been taken from a recent wreck the owner or importer shall have the same right to appeal as in
shall be admitted to entry, the same shall be appraised, and ordinary importation.
the owner or importer shall have the same right to appeal as
in ordinary importation. No part of a Philippine vessel or aircraft or her equipment,
wrecked either in Philippine or foreign waters, shall be subject
No part of a Philippine vessel or aircraft or her equipment, to duty.
wrecked either in Philippine or foreign waters, shall be subject
to duty.
CHAPTER 2. EXAMINATION OF GOODS
SEC. 411. Conditions for Examination. SEC 1401 Conditions for Examination. - For the protection of RKC GA Standard 3.32, 3.33, 3.34, 3.35, Major amendment. The general rule on
government revenue and public interest and to prevent the 3.36, 3.37 when physical examination is required
For the protection of government revenue and public interest entry into the country of smuggled or contraband goods, the is laid down. The provision also
and to prevent the entry into the country of smuggled or Commissioner shall, in consultation with the Oversight Special procedures for authorized persons recognizes the authority of customs to
contraband goods, the Commissioner shall, subject to the Committee and subject to approval of the Secretary of Finance, conduct examination thru a non-
approval of the Secretary of Finance, promulgate rules and promulgate the rules and regulations that shall prescribe the 3.32. Transitional Standard intrusive inspection system and to
regulations that shall prescribe the procedure in accordance procedure in accordance with which the examination shall be exempt certain shipments from being
with which the examination shall be undertaken on the For authorized persons who meet criteria
undertaken on the importation and the required quantity or inspected at the border
importation and the required quantity or percentage thereof. specified by the Customs, including having
percentage thereof: Provided, That the imported articles shall
PHYSICAL EXAMINATION OF THE IMPORTED GOODS an appropriate record of compliance with
in any case be subject to the regular physical examination
AND GOODS FOR EXPORT SHALL BE CONDUCTED when: Customs requirements and a satisfactory
when:
system for managing their commercial
IMPORTED GOODS AND GOODS FOR EXPORT ARE (1) The government surveyor's seal on the container records, the Customs shall provide for:
ELECTRONICALLY SELECTED FOR PHYSICAL has been tampered with or broken or the container shows
EXAMINATION; release of the goods on the
signs of having been opened or having its identity changed;
provision of the minimum information
WHEN PHYSICAL EXAMINATION IS NECESSARY TO (2) The container is leaking or damaged; necessary to identify the goods and permit
RESOLVE ISSUES INVOLVING TARIFF CLASSIFICATION, the subsequent completion of the final
CUSTOMS VALUATION, RULES OF ORIGIN; (3) The number, weight, and nature of packages Goods declaration;
indicated in the customs entry declaration and supporting
THE IMPORTED GOODS AND GOODS FOR EXPORT ARE documents differ from that in the manifest; clearance of the goods at the
COVERED BY ALERT/HOLD ORDER ISSUED BY declarant's premises or another place
COMPETENT AUTHORITY; AND (4) The shipment is covered by alert/hold order issued authorized by the Customs; and, in
pursuant to existing orders; addition, to the extent possible, other
DIRECTED BY THE COMMISSIONER OF CUSTOMS ON special procedures such as:
(5) The importer disagrees with the findings as
52
ACCOUNT OF DEROGATORY INFORMATION. contained in the government surveyor's report; or allowing a single Goods
declaration for all imports or exports in a
CUSTOMS MAY ADOPT NON-INTRUSIVE INSPECTION (6) The articles are imported through air freight where given period where goods are imported or
BASED ON INTERNATIONALLY ACCEPTED STANDARDS. the Commissioner or Collector has knowledge that there is a exported frequently by the same person;
variance between the declared and true quantity,
SUBJECT TO RANDOM CHECKING, POST ENTRY AUDIT, measurement, weight and tariff classification (R.A. 7650, April use of the authorized persons
AND UNDER CERTAIN CONDITIONS TO BE PRESCRIBED 06, 1993). commercial records to self-assess their
BY RULES AND REGULATIONS, THE COMMISSIONER OF duty and tax liability and, where
CUSTOMS MAY EXEMPT FROM EXAMINATION appropriate, to ensure compliance with
IMPORTATIONS BELONGING TO IMPORTERS other Customs requirements;
ACCREDITED AS AN AUTHORIZED ECONOMIC
OPERATOR (AEO) OR UNDER ANY EXISTING TRADE allowing the lodgement of the
FACILITATION PROGRAM. Goods declaration by means of an entry in
the records of the authorized person to be
supported subsequently by a
supplementary Goods declaration.
Examination of the goods
(a) Time required for examination of goods
3.33. Standard
When the Customs decide that goods

declared shall be examined, this
examination shall take place as soon as
possible after the Goods declaration has
been registered.
3.34. Standard
When scheduling examinations, priority

shall be given to the examination of live
animals and perishable goods and to other
goods which the Customs accept are
urgently required.
If the goods must be inspected by other

competent authorities and the Customs
53
also schedules an examination, the
Customs shall ensure that the inspections
are co-ordinated and, if possible, carried
out at the same time.
(b) Presence of the declarant at

examination of goods
3.36. Standard
The Customs shall consider requests by

the declarant to be present or to be
goods. Such requests shall be granted
unless exceptional circumstances exist.
3.37. Standard
If the Customs deem it useful, they shall

require the declarant to be present or to be
goods to give them any assistance
necessary to facilitate the examination.
SEC. 412. Determination of Weight and Quantity. SEC 1402 Ascertainment of Weight and Quantity. - Where Minor amendment. Provision is
articles dutiable by weight, and not otherwise specially reworded to make it clearer.
Where articles ARE CUSTOMARILY CONTAINED IN provided for, are customarily contained in packing, packages,
PACKING, PACKAGES, OR RECEPTACLES OF UNIFORM or receptacles of uniform or similar character, it shall be the
OR SIMILAR CHARACTER, it shall be the duty of the duty of the Commissioner, from time to time, to ascertain by
Commissioner, from time to time, to ascertain by tests the tests the weight as quantity of such articles, and the weight of
weight as quantity of such articles, and the weight of the the packing, packages or receptacles thereof, respectively, in
packing, packages or receptacles thereof, respectively, in which the same are customarily imported, and upon such
which the same are customarily imported, and upon such ascertainment, to prescribe rules for estimating the dutiable
ascertainment, to prescribe rules for estimating the dutiable weight or quantity thereof, and thereafter such articles,
weight or quantity thereof, and thereafter such articles, imported in such customary packing, packages or receptacles
imported in such customary packing, packages or receptacles shall be entered, and the duties thereon levied and collected,
shall be entered, and the duties thereon levied and collected, upon the bases of such estimated dutiable weight or quantity:
upon the bases of such estimated dutiable weight or quantity: Provided, That if the importer, consignee or agent shall be
Provided, That if the importer, consignee or agent shall be dissatisfied, with such estimated dutiable weight or quantity,
dissatisfied, with such estimated dutiable weight or quantity, and shall file with the Collector prior to the delivery of the
and shall file with the Collector prior to the delivery of the packages designated for examination a written specification of
54
packages designated for examination a written specification of his objections thereto, or if the Collector shall have reason to
his objections thereto, or if the Collector shall have reasons to doubt the exactness of the prescribed weight or quantity in any
doubt the exactness of the prescribed weight or quantity in instance, it shall be his duty to cause such weights or
any instance, it shall be his duty to cause such weights or quantities to be ascertained.
quantities to be ascertained.
SEC. 413. Duties of Customs Officer Tasked to Examine, SEC 1403 Duties of Customs Officer Tasked to Examine, Minor amendment. Words are
Classify and ASCERTAIN THE VALUE OF Imported Classify and Appraise Imported Articles. -The customs officer changed to make provision consistent
Articles. tasked to examine, classify, and appraise imported articles with the new valuation system.
shall determine whether the packages designated for
The customs officer tasked to examine AND/OR, classify, examination and their contents are in accordance with the
and/OR ASCERTAIN THE VALUE OF imported articles shall declaration in the entry, invoice and other pertinent documents
determine whether the packages designated for examination and shall make a return in such a manner to indicate whether
and their contents are in accordance with the declaration in the articles have been truly and correctly declared in the entry
the entry, invoice and other pertinent documents and shall as regard their quantity, measurement, weight, and tariff
make a return in such a manner to indicate whether the classification and not imported contrary to law. He shall submit
articles have been truly and correctly declared in the IMPORT sample to the laboratory for analysis when feasible to do so
entry as regards their quantity, measurement, weight, and and when such analysis is necessary for the proper
tariff classification and not imported contrary to law. He MAY classification, appraisal, and/or admission into the Philippines
submit sample to the laboratory for analysis when feasible to of imported articles.
do so and when such analysis is necessary for the proper
classification, VALUATION, and/or CLEARANCE into the Likewise, the customs officer shall determine the unit of
Philippines of imported articles. quantity in which they are usually bought and sold and
appraise the imported articles in accordance with Section 201
Likewise, the customs officer shall determine the unit of of this Code.
quantity AND MEASUREMENT in which they are usually
bought and sold, and ASCERTAIN THE VALUE OF the Failure on the part of the customs officer to comply with his
imported articles in accordance with Section 700 of this ACT. duties shall subject him to the penalties prescribed under 3604
of this Code (R.A. 7650, April 06, 1993).
Failure on the part of the customs officer to comply with his
duties shall subject him to the penalties prescribed under Title
15 of this ACT.
SEC. 414. Proceedings and Report of CUSTOMS SEC 1405 Proceedings and Report of Appraisers. - Appraisers Minor amendment to make provision
OFFICERS. shall, by all reasonable ways and means, ascertain, estimate consistent with the new valuation
and determine the value or price of the articles as required by system and with electronic declaration.
CUSTOMS OFFICERS shall, by all reasonable ways and law, any invoice or affidavit thereto or statement of cost, or of
means, ascertain, and determine the value or price of the cost of production to the contrary notwithstanding, and after
articles BASED ON THE MODE OF VALUATION AS revising and correcting the report of the examiners as they may
PRESCRIBED IN THIS ACT shall report in writing on the face judge proper, shall report in writing on the face of the entry the
of the GOODS DECLARATION OR THE ELECTRONIC value so determined, irrespective of whether such value is
55
FORM the value so determined. equal, higher or lower than the invoice and/or entered value of
the articles.
CUSTOMS OFFICERS shall REFLECT HIS EXAMINATION
FINDINGS ON the GOODS DECLARATION OR THE Appraisers shall describe all articles on the face of the entry in
ELECTRONIC FORM in tariff and such terms as will enable tariff and such terms as will enable the Collector to pass upon
the Collector to pass upon the VALUATION and classification the appraisal and classification of the same, which appraisal
of the same, which VALUATION and classification shall be and classification shall be subject to his approval or
subject to his approval or modification, and shall note thereon modification, and shall note thereon the measurements and
the measurements and quantities, and any disagreement with quantities, and any disagreement with the declaration.
the declaration.
SEC. 415. EXAMINATION OF Samples. SEC1406 Appraiser's Samples. - Appraisers shall see that RKC GA Standard 3.10, 3.38 Amended to conform to the RKC
representative and sufficient samples of all kinds of articles standards on samples.
CUSTOMS OFFICERS shall see to it that representative which may be readily sampled are taken under proper receipt 3.10. Standard
SAMPLES TAKEN DURING EXAMINATION SHALL BE and retained for official purposes; but samples of articles
PROPERLY RECEIPTED FOR AND RETAINED WITHIN A identical in quality, material and values shall not be retained, if The Customs shall not require a separate
REASONABLE PERIOD OF TIME The quantity and value of their return is desired, longer than may be required for use in Goods declaration in respect of samples
the samples taken shall be noted IN the SPECIFIED BOX OF contested cases. allowed to be drawn under Customs
THE IMPORT entry OR ELECTRONIC FORM. Such samples supervision, provided that such samples
shall be duly labeled as will definitely identify them with the The quantity and value of the samples taken shall be noted on are included in the Goods declaration
importation for which they are taken. the face of the entry. Such samples shall be duly labeled as will concerning the relevant consignment.
definitely identify them with the importation for which they are
taken. 3.38. Standard
Samples shall be taken only where

deemed necessary by the Customs to
establish the tariff description and/or value
of goods declared or to ensure the
application of other provisions of national
legislation. Samples drawn shall be as
small as possible.
SEC. 416. Readjustment of VALUATION, Classification or SEC 1407 Readjustment of Appraisal, Classification or Return. RKC GA Standards 4.18 to 4.24 on Major amendment. The second ground
Return. -Such appraisal, classification return as finally passed upon grounds for repayment on appraisal re-adjustment if the
and approved or modified by the Collector shall not be altered appraisal is deemed low is being
Such VALUATION, classification or return as finally passed or modified in any manner, except: 4.18. Standard modified to exclude appraisal
upon and approved or modified by the Collector shall not be (customs valuation), for not being
altered or modified in any manner, except: (a) Within one year after payment of the duties, upon Repayment shall be granted where it is compliant with the new valuation
statement of error in conformity with seventeen hundred and established that duties and taxes have system prohibiting the use of arbitrary
Within one year after payment of the duties AND TAXES AND seven hereof, approved by the Collector. been overcharged as a result of an error in value for assessment purposes.
OTHER CHARGES, upon statement of error in conformity Deemed to low is also changed into
56
with Section 909 of this Act, approved by the Collector. (b) Within fifteen days after such payment upon request their assessment. incorrect to remove element of
for reappraisal and/or reclassification addressed to the arbitrariness which is inconsistent
Within fifteen days after such payment upon request for Commissioner by the Collector, if the appraisal and/or 4.19. Standard with RKC standard.
reclassification addressed to the Commissioner by the classification is deemed to be low.
Collector, if the classification is deemed incorrect. Repayment shall be granted in respect of
(c) Upon request for reappraisal and/or reclassification, imported or exported goods which are
Upon FILING OF TIMELY PROTEST BASED ON VALUE in the form of a timely protest addressed to the Collector by the found to have been defective or otherwise
AND/OR CLASSIFICATION ADDRESSED TO THE interested party if the latter should be dissatisfied with the not in accordance with the agreed
COLLECTOR BY THE interested party if the latter should be appraisal or return. specifications at the time of importation or
dissatisfied with the ASSESSMENT. exportation and are returned either to the
(d) Upon demand by the Commissioner of Customs supplier or to another person designated
Upon demand by the Commissioner of Customs after the after the completion of compliance audit pursuant to the by the supplier, subject to the following
completion of A POST CLEARANCE audit pursuant to the provisions of this Code.(R.A. 9135, April 27, 2001) conditions:
provisions of this ACT.
the goods have not been
worked, repaired or used in the country of
importation, and are re-exported within a
reasonable time;

worked, repaired or used in the country to
which they
were exported, and are re-imported within

a reasonable time.
Use of the goods shall, however, not

hinder the repayment if such use was
indispensable to discover the defects or
other circumstances which caused the
reexportation or re-importation of the
goods.
As an alternative to re-exportation or re-

importation, the goods may be abandoned
to the Revenue or destroyed or rendered
commercially valueless under Customs
control, as the Customs may decide. Such
abandonment or destruction shall not
entail any cost to the Revenue.
57
Where permission is given by the Customs

for goods originally declared for a
Customs procedure with payment of duties
and taxes to be placed under another
Customs procedure, repayment shall be
made of any duties and taxes charged in
excess of the amount due under the new
procedure.
4.21. Standard
Decisions on claims for repayment shall

be reached, and notified in writing to the
persons concerned, without undue delay,
and repayment of amounts overcharged
shall be made as soon as possible after
the verification of claims.
4.22. Standard
Where it is established by the Customs

that the overcharge is a result of an error
on the part of the Customs in assessing
the duties and taxes, repayment shall be
made as a matter of priority.
4.23. Standard
Where time limits are fixed beyond which

claims for repayment will not be accepted,
such limits shall be of sufficient duration to
take account of the differing circumstances
pertaining to each type of case in which
repayment may be granted.
4.24. Standard
Repayment shall not be granted if the

amount involved is less than the minimum
58
amount specified in national legislation.
SEC. 417. Delivery of Articles to Holder of Bill of Lading SEC 1501 Delivery of Articles to Holder of Bill of Lading. - A Amended o include airway bill.
OR AIRWAY BILL. Collector who makes a delivery of a shipment, upon the
surrender of the bill of lading, to person who by the terms
A Collector who makes a delivery of a shipment, upon the thereof appears to be the consignee or lawful holder of the bill
surrender of the bill of lading OR AIRWAY BILL, to person shall not be liable on account of any defect in the bill or
who by the terms thereof appears to be the consignee or irregularity in its negotiation, unless he has notice of the same.
lawful holder of the bill shall not be liable on account of any
defect in the bill or irregularity in its negotiation, unless he has
notice of the same.
SEC. 418. Delivery of Articles Without Production of Bill SEC 1502 Delivery of Articles Without Production of Bill of To comply with 3.41 of the RKC General This is an open policy issue. The
of Lading OR AIRWAY BILL. Lading. - No Collector shall deliver imported articles to any Annex. workshop group expressed reservation
person without the surrender by such person of the bill of in amending the provision to allow
No Collector shall deliver imported articles to any person lading covering said article, except on written order of the 3.41. Standard delivery based on acceptable
without the surrender by such person of the bill of lading OR carrier or agent of the importing vessel or aircraft, in which documents other than the bill of lading
AIRWAY BILL covering said article, except on written order of case neither the Government nor the Collector shall be held If the Customs are satisfied that the or airway bill as current customs
the carrier or agent of the importing vessel or aircraft, in which liable for any damages arising from wrongful delivery of the declarant will subsequently accomplish all control infrastructure may not be ready
case neither the Government nor the Collector shall be held articles: Provided, however, That where delivery of articles is the formalities in respect of clearance they for such a liberal policy. Section 1502
liable for any damages arising from wrongful delivery of the made against such written order of the carrier or agent of the shall release the goods, provided that the is therefore being retained except the
articles: Provided, however, That where delivery of articles is importing vessel or aircraft, the Collector may, for customs declarant produces a commercial or addition of the word airway bill. This
made against such written order of the carrier or agent of the purpose s, require the production of an exact copy of the bill of official document giving the main may be considered as an open issue.
importing vessel or aircraft, the Collector may, for customs lading therefor. particulars of the consignment concerned
purposes, require the production of an exact copy of the bill of and acceptable to the Customs, and that
lading therefor. security, where required, has been
furnished to ensure collection of any
applicable duties and taxes.
Recommended in the Legislative

Agenda/Gap Analysis conducted by PACT
SEC. 419. Delivery Upon Order of Importer. SEC 1504 Delivery Upon Order of Importer. - An importer of Provision reworded to simplify the
record may authorize delivery to another person by writing language.
An importer of record may authorize delivery to another upon the face of the warehouse withdrawal entry his orders to
person by writing upon the face of the warehouse withdrawal that effect. Such authority to deliver the article entered for
entry his orders to that effect. Such authority to deliver the warehousing in accordance with section nineteen hundred and
article entered for warehousing in accordance with Section four shall not relieve the importer and his cash deposit,
805 shall not relieve the importer and THE SECURITY irrevocable domestic letter of credit, bank guarantee or bond
POSTED from liability for the payment of the duties, taxes from liability for the payment of the duties, taxes and other
59
and other charges due on the said article unless the person to charges due on the said article unless the person to whom the
whom the delivery was authorized to be made assumes such delivery was authorized to be made assumes such liability by
liability by complying with the requirements of above- complying with the requirements of above mentioned section.
mentioned section.
SEC. 420. Withholding Delivery Pending Satisfaction of SEC 1505 Withholding Delivery Pending Satisfaction of Lien. - En toto.
Lien. When the Collector is duly notified in writing of a lien for freight,
lighterage or general average upon any imported articles in his
When the Collector is duly notified in writing of a lien for custody, he shall withhold the delivery of the same until he is
freight, lighterage or general average upon any imported satisfied that the claim has been paid or secured.
articles in his custody, he shall withhold the delivery of the
same until he is satisfied that the claim has been paid or In case of a disagreement, as to the amount due between the
secured. party filling the lien and the importer regarding the amount of
the freight and lighterage based upon the quantity or weights of
In case of a disagreement, as to the amount due between the the articles imported, the Collector may deliver the articles
party filing the lien and the importer regarding the amount of upon payment of the freight and lighterage due on the quantity
the freight and lighterage based upon the quantity or weights or weight actually landed as shown by the return of the proper
of the articles imported, the Collector may deliver the articles official or by other means to his satisfaction.
upon payment of the freight and lighterage due on the quantity
or weight actually landed as shown by the return of the proper
official or by other means to his satisfaction.
SEC. 421. Customs Expenses Constituting Charges on SEC 1506 Customs Expenses Constituting Charges on A new policy is set requiring that all
Articles. Articles. - All expenses incurred by the customs service for the expenses relating to inspection shall
handling or storage of articles and other necessary operations be borne by the importer based on
All expenses incurred by the customs service for the handling in connection therewith, or incident to its seizure, shall be international best customs practice.
or storage of articles and other necessary operations in charged against such articles, and shall constitute a lien upon
connection therewith, or incident to its seizure, shall be it.
chargeable against such articles, and shall constitute a lien
upon it. THE COST OF EXAMINATION SHALL AT ALL
TIMES BE FOR THE ACCOUNT OF THE IMPORTER OR
EXPORTER.
SEC. 422. Fine or Surcharge on Articles. SEC 1507 Fine or Surcharge on Articles. - No article which is Minor amendment on terminology
liable for any fine or surcharge imposed under the tariff and
No article which is liable for any fine or surcharge imposed customs laws shall be delivered until the same shall have been
under the CUSTOMS AND tariff laws shall be delivered until paid or secured by cash deposit, irrevocable domestic letter of
the same shall have been paid or secured by cash deposit, credit, bank guarantee or bond.
irrevocable domestic letter of credit, bank guarantee or bond.
60
CHAPTER 3. ASSESSMENT AND LIQUIDATION
SEC. 423. Liquidation and Record of Entries. SEC 1601 Liquidation and Record of Entries. - If the Collector Minor amendment. Appraiser is
shall approve the returns of the appraiser and the report of the changed to customs officer to be in
If the Collector shall approve the returns of the CUSTOMS weights, gauge or quantity, the liquidation shall be made on the line with the transaction value system.
OFFICER and the report of the weights, gauge or quantity, the face of the entry showing the particulars thereof, initiated by
liquidation shall be made on the face of the entry showing the the customs assessor, approved by the chief customs
particulars thereof, initiated by the customs assessor, assessor, and recorded in the record of liquidations.
approved by the chief customs assessor, and recorded in the
record of liquidations. A daily record of all entries liquidated shall be posted in public
corridor of the customhouse, stating the name of the vessel or
A daily record of all entries liquidated shall be posted in public aircraft, the port from which she arrived, the date of her arrival,
corridor of the customhouse, name of the vessel or aircraft, the name of the importer, and the serial number and the date
the port from which she arrived, the date of her arrival, the of the entry. The daily record must also be kept by the
name of the importer, and the serial number and the date of Collector of all additional duties, taxes and other charges found
the entry. The daily record must also be kept by the collector upon liquidation, and notice shall promptly be sent to the
of all additional duties, taxes and other charges found upon interested parties.
liquidation, and notice shall promptly be sent to the interested
parties.
SEC. 424. Tentative Liquidation. SEC 1602 Tentative Liquidation. - If to determine the exact RKC General Annex Standard 3.14 Provision amended to be compliant
amount due under the law in part some future action is with the RKC standard providing for
If to determine the exact amount due under the law in WHOLE required, the liquidation shall be deemed to be tentative as to 3.14. Standard remedy of tentative liquidation/release
OR IN part some future action is required, the liquidation shall the item or items affected and shall to that extent be subject to to importers in case some future action
be deemed to be tentative as to the item or items affected and future and final readjustment and settlement within a six (6) If the Customs register a provisional or is needed (outside of his control) to
shall to that extent be subject to future and final readjustment months from date of tentative liquidation. The entry in such incomplete Goods declaration, the tariff clear the goods.
and settlement within a period of THREE (3) months from case shall be stamped Tentative Liquidation." treatment to be accorded to the goods
date of tentative liquidation WHICH MAY BE EXTENDED ON shall not be different from that which would
JUSTIFIABLE GROUNDS FOR A PERIOD NOT TO EXCEED have been accorded had a complete and
THREE (3) MONTHS. The entry in such case shall be correct Goods declaration been lodged in
stamped tentative liquidation. the first instance.
THE DISTRICT COLLECTOR SHALL ALLOW THE The release of the goods shall not be
RELEASE OF IMPORTATION UNDER TENTATIVE delayed provided that any security
LIQUIDATION UPON THE POSTING OF SUFFICIENT required has been furnished to ensure
SECURITY TO COVER THE APPLICABLE DUTIES AND collection of any applicable duties and
TAXES. taxes.
SEC. 425. Finality of Liquidation. SEC 1603 Finality of Liquidation. When articles have been Minor amendment on terminology.
entered and passed free of duty or final adjustments of duties
When articles have been entered and passed free of duty or made, with subsequent delivery, such entry and passage free
61
final adjustments of duties made, with subsequent delivery, of duty or settlements of duties will, after the expiration of three
such entry and passage free of duty or settlements of duties (3) years from the date of the final payment of duties, in the
will, after the expiration of three (3) years from the date of the absence of fraud or protest or compliance audit pursuant to the
final payment of duties, in the absence of, fraud or protest or provisions of this Code, be final and conclusive upon all
compliance audit pursuant to the provisions of this ACT, be parties, unless the liquidation of the import entry was merely
final and conclusive upon all parties, unless the liquidation of tentative." (R.A. 9135, April 27, 2001)
the GOODS DECLARATION was merely tentative.
SEC. 426. Treatment of Fractions in the Liquidation. SEC 1604 Treatment of Fractions in the Liquidation. - In En toto
determining the total amount duties, taxes, surcharges, and/or
In determining the total amount of taxes, surcharges, and/or other charges to be paid on entries, a fraction of a peso less
other charges to be paid on entries, a fraction of a peso less than fifty centavos shall be disregarded, and a fraction of a
than fifty centavos shall be disregarded, and a fraction of a peso amounting to fifty centavos or more shall be considered
peso amounting to fifty centavos or more shall be considered as one peso. In case of overpayment or underpayment of
as one peso. In case of overpayment or, underpayment of duties, taxes, surcharges and/or other charges paid on entries,
duties, taxes, surcharges and/or other charges entries, where where the amount involved is less than ten pesos, no refund or
the amount involved is less than ten pesos, no refund or collection shall be made.
collection shall be made.
CHAPTER 4. SPECIAL PROCEDURES
SEC. 427. TRAVELLERS AND PASSENGER BAGGAGE. RKC Specific Annex J, Chapter 1 New provision to reflect KC standard
CUSTOMS SHALL PROVIDE SIMPLIFIED CUSTOMS 1. Standard

PROCEDURE, BASED ON INTERNATIONAL
AGREEMENTS AND CUSTOMS BEST PRACTICES, FOR The Customs facilities applicable to
TRAVELLER AND BAGGAGE PROCESSING INCLUDING travellers shall be governed by th e
THE MEANS OF TRANSPORT. provisions of this Chapter and, insofar as
applicable, by the provisions of the
TRAVELLERS SHALL BE PERMITTED TO EXPORT General Annex.
GOODS FOR COMMERCIAL PURPOSES, SUBJECT TO
COMPLIANCE WITH THE NECESSARY EXPORT 2. Standard
FORMALITIES AND PAYMENT OF EXPORT
DUTIES/TAXES/CHARGES, IF ANY. The Customs facilities provided for in this
Chapter shall apply to travellers
irrespective of their citizenship/nationality.
SEC. 428. POSTAL MAILS. RKC Specific Annex J, Chapter 2, New provision to reflect RKC standard
Standard 9
POSTAL ITEMS OR MAILS SHALL MEAN LETTER-POST
AND PARCELS, AS DESCRIBED IN INTERNATIONAL
62
PRACTICES AND AGREEMENTS, SUCH AS THE ACTS OF 9. Standard
THE UNIVERSAL POSTAL UNION CURRENTLY IN FORCE,
WHEN CARRIED BY OR FOR POSTAL SERVICES. When all the information required by the
Customs is available from the CN22 or
THE CLEARANCE OF POSTAL ITEMS OR MAIL, CN23 and supporting documents, the form
INCLUDING THE COLLECTION OF THE APPLICABLE CN22 or CN23 shall be the Goods
DUTIES AND TAXES ON SUCH ITEMS OR GOODS, SHALL declaration, except in the case of:
BE EFFECTED QUICKLY USING A SIMPLIFIED
PROCEDURE. goods having a value
exceeding an amount specified in national
WHEN ALL THE INFORMATION REQUIRED BY THE legislation;
CUSTOMS ARE AVAILABLE FROM THE SPECIAL
DECLARATION FORM FOR POSTAL ITEMS AS PROVIDED goods which are subject to
IN THE ACTS OF THE UNIVERSIAL UNION OR SIMLAR prohibitions or restrictions or to export
INTERNATIONAL AGREEEMENTS, THE FORM AND duties and taxes;
SUPPORTING DOCUMENTS SHALL BE THE GOODS
DECLARATION, EXCEPT IN THE CASE OF: goods the exportation of which
must be certified;
GOODS HAVING A VALUE EXCEEDING THE AMOUNT
REQUIRED FOR THE FILING OF A GOODS DECLARATION imported goods intended to be
AS DETERMINED BY THE COMMISSIONER OF CUSTOMS; placed under a Customs procedure other
than clearance for home use.
GOODS WHICH ARE SUBJECT TO PROHIBITIONS OR
RESTRICTIONS OR TO EXPORT DUTIES AND TAXES; In these cases, a separate Goods
declaration shall be required.
GOODS THE EXPORTATION OF WHICH MUST BE
CERTIFIED;
IMPORTED GOODS INTENDED TO BE PLACED UNDER A

CUSTOMS PROCEDURE OTHER THAN CLEARANCE FOR
HOME USE.
IN THESE CASES, A SEPARATE GOODS DECLARATION

SHALL BE REQUIRED.
SEC. 429. RELIEF CONSIGNMENTS. RKC Specific Annex J, Chapter 5., New provision to reflect RKC standard
Standards 3 ,4 an 5
WHEN THERE IS DECLARATION OF A STATE OF
CALAMITY, CLEARANCE OF RELIEF CONSIGNMENTS 3. Standard
SHALL BE A MATTER OF PRIORTY AND SUBJECT TO A
In the case of relief consignments the
63
SIMPLIFIED CUSTOMS PROCEDURE. Customs shall provide for :
CUSTOMS SHALL PROVIDE FOR : lodging of a simplified Goods

declaration or of a provisional or
LODGING OF A SIMPLIFIED GOODS DECLARATION OR incomplete Goods declaration subject to
OF A PROVISIONAL OR INCOMPLETE GOODS completion of the declaration within a
DECLARATION SUBJECT TO COMPLETION OF THE specified period;
DECLARATION WITHIN A SPECIFIED PERIOD;
lodging and registering or
LODGING AND REGISTERING OR CHECKING OF THE checking of the Goods declaration and
GOODS DECLARATION AND SUPPORTING DOCUMENTS supporting documents prior to the arrival
PRIOR TO THE ARRIVAL OF THE GOODS, AND THEIR of the goods, and their release upon
RELEASE UPON ARRIVAL; arrival;
CLEARANCE OUTSIDE THE DESIGNATED HOURS OF clearance outside the

BUSINESS OR AWAY FROM CUSTOMS OFFICES AND designated hours of business or away
THE WAIVER OF ANY CHARGES IN THIS RESPECT; AND from Customs offices and the waiver of
any charges in this respect; and
EXAMINATION AND/OR SAMPLING OF GOODS ONLY IN
EXCEPTIONAL CIRCUMSTANCES. examination and/or sampling of
goods only in exceptional circumstances.
THE SECRETARY OF FINANCE UPON THE
RECOMMENDATION OF THE COMMISSIONER OF 4. Recommended Practice
CUSTOMS SHALL PROVIDE RULES AND REGULATIONS
TO CARRY OUT THIS PROVISION. Clearance of relief consignments should
be granted without regard to the country of
origin, the country from which arrived or
country of destination.
In the case of relief consignme nts any

economic export prohibitions or
restrictions and any export duties or taxes
otherwise payable should be waived.
Relief consignments received as gifts by

approved organizations for use by or
under the control of such organizations, or
64
for distribution free of charge by them or
under their control, should be admitted
free of import duties and taxes and free of
economic import prohibitions or
restrictions.
TITLE 5. EXPORT CLEARANCE AND FORMALITIES
CHAPTER 1. EXPORT CLEARANCE AND DECLARATION
SEC. 500. EXPORT DECLARATION New provision. For the first time
national customs law to include subject
ALL ARTICLES EXPORTED FROM THE PHILIPPINES, on export which is covered currently
WHETHER SUBJECT TO EXPORT DUTY OR NOT, SHALL by another special law. This is to
BE DECLARED THROUGH A COMPETENT CUSTOM stress the growing importance of
OFFICE. EXPORT DECLARATION SHALL BE IN SUCH export activities in customs
FORM AS PRESCRIBED BY REGULATIONS. THEY SHALL administration.
BE SIGNED BY THE PERSON MAKING THE
DECLARATION AND SHALL CONTAIN THE NUMBER AND
MARKS OF PACKAGES, OR THE QUANTITY, IF IN BULK,
THE NATURE AND CORRECT COMMODITY
DESCRIPTION OF THE ARTICLES CONTAINED THEREIN,
AND THE VALUE THEREOF.
THE DESCRIPTION OF THE ARTICLES IN THE EXPORT

DECLARATION MUST BE IN SUFFICIENT DETAIL TO
ENABLE THE ARTICLES TO BE IDENTIFIED BOTH FOR
TARIFF CLASSIFICATION AND STATISTICAL PURPOSES,
AND IN THE TARIFF DESCRIPTION OF TERMS OF THE
HEADINGS OR SUBHEADINGS OF THIS ACT.
SEC. 501. LODGEMENT AND PROCESSING OF EXPORT New provision

DECLARATION.
THE BUREAU OF CUSTOMS SHALL PROMULGATE

RULES AND REGULATIONS TO ALLOW MANUAL AND
ELECTRONIC LODGEMENT AND PROCESSING OF THE
EXPORT DECLARATION.
TITLE 6. CUSTOMS TRANSIT AND TRANSSHIPMENT The provision draws the clear line
between transit and transhipment
65
activities which terminologies customs
have been using loosely resulting at
times to confusion. With the new
definitions based on RKC standards,
such problem is envisioned to be
finally addressed.
CHAPTER 1. CUSTOMS TRANSIT
SEC. 600. CUSTOMS TRANSIT IN THE CUSTOMS Lifted from RKC Specific Annex E Chapter New provision to reflect RKC standard.
TERRITORY. 1, Standards 2, 3, 4, 5, 6, 7, 8, 20 and 25 Second paragraph of this provision
may likely adversely affect RA
CUSTOMS SHALL ALLOW ARTICLES TO BE 3. Standard 9334/implementing Revenue
TRANSPORTED UNDER CUSTOMS TRANSIT IN THE Regulation on transited excisable
CUSTOMS TERRITORY: Goods being carried under Customs cigarettes /liquor. Hence, an open
transit shall not be subject to the payment policy issue.
FROM PORT OF ENTRY TO ANOTHER PORT OF ENTRY of duties and taxes, provided the
AS EXIT POINT FOR OUTRIGHT EXPORTATION ; conditions laid down by the Customs are
complied with and that any security
FROM PORT OF ENTRY TO ANOTHER PORT OF required has been furnished.
ENTRY/INLAND CUSTOMS OFFICE;
4. Standard
FROM INLAND CUSTOMS OFFICE TO A PORT OF ENTRY
AS EXIT POINT FOR OUTRIGHT EXPORTATION; National legislation shall specify the
persons who shall be responsible to the
FROM ONE PORT OF ENTRY/INLAND CUSTOMS OFFICE Customs for compliance with the
TO ANOTHER PORT OF ENTRY/INLAND CUSTOMS obligations incurred under Customs
OFFICE . transit, in particular for ensuring that the
goods are produced intact at the office of
ARTICLES BEING CARRIED UNDER CUSTOMS TRANSIT destination in accordance with the
SHALL NOT BE SUBJECT TO THE PAYMENT OF DUTIES conditions imposed by the Customs.
AND TAXES, PROVIDED THE CONDITIONS LAID DOWN
BY THE CUSTOMS ARE COMPLIED WITH AND THAT ANY 5. Recommended Practice
SECURITY AND/OR INSURANCE REQUIRED HAS BEEN
FURNISHED. CUSTOMS SHALL SPECIFY THE PERSONS The Customs should approve persons as
WHO SHALL BE RESPONSIBLE FOR COMPLIANCE WITH au thorized consignors and authorized
THE OBLIGATIONS INCURRED UNDER CUSTOMS consignees when they are satisfied that
TRANSIT, IN PARTICULAR FOR ENSURING THAT THE the prescribed conditions laid down by the
GOODS ARE PRESENTED INTACT AT THE OFFICE OF Customs are met.
DESTINATION IN ACCORDANCE WITH THE CONDITIONS
66
IMPOSED. Formalities at the office of departure
ANY COMMERCIAL OR TRANSPORT DOCUMENT (a) Goods declaration for Customs transit
SETTING OUT CLEARLY THE NECESSARY PARTICULARS
SHALL BE ACCEPTED AS THE DESCRIPTIVE PART OF 6. Standard
THE GOODS DECLARATION FOR CUSTOMS TRANSIT
AND THIS ACCEPTANCE SHALL BE NOTED ON THE Any commercial or transport document
DOCUMENT. THE CUSTOMS SHALL ACCEPT AS THE setting out clearly the necessary
GOODS DECLARATION FOR CUSTOMS TRANSIT ANY particulars shall be accepted as the
COMMERCIAL OR TRANSPORT DOCUMENT FOR THE descriptive part of the Goods declaration
CONSIGNMENT CONCERNED WHICH MEETS ALL THE for Customs transit and this acceptance
CUSTOMS REQUIREMENTS. THIS ACCEPTANCE SHALL shall be noted on the document.
BE NOTED ON THE DOCUMENT. CUSTOMS AT THE
OFFICE OF DEPARTURE SHALL TAKE ALL NECESSARY
ACTION TO ENABLE THE OFFICE OF DESTINATION TO The Customs should accept as the Goods
IDENTIFY THE CONSIGNMENT AND TO DETECT ANY declaration for Customs transit any
UNAUTHORIZED INTERFERENCE. commercial or transport document for the
consignment concerned which meets all
TRANSFER OF THE ARTICLES FROM ONE MEANS OF
the Customs requirements. This
TRANSPORT TO ANOTHER SHALL BE ALLOWED
acceptance should be noted on the
WITHOUT CUSTOMS AUTHORIZATION, PROVIDED THAT
document.
ANY CUSTOMS SEALS OR FASTENINGS ARE NOT
BROKEN OR INTERFERED WITH. FAILURE TO FOLLOW (b) Sealing and identification of
A PRESCRIBED ITINERARY OR TO COMPLY WITH A
consignments
PRESCRIBED TIME LIMIT SHOULD NOT ENTAIL THE
COLLECTION OF ANY DUTIES AND TAXES POTENTIALLY 8. Standard
CHARGEABLE, PROVIDED THE CUSTOMS ARE
SATISFIED THAT ALL OTHER REQUIREMENTS HAVE The Customs at the office of departure
BEEN MET. shall take all necessary action to enable
the office of destination to identify the
consignment and to detect any
unauthorized interference.
20. Standard
Transfer of the goods from one means of

transport to another shall be allowed wi
thout Customs authorization, provided that
any Customs seals or fastenings are not
broken or interfered with.
67
Failure to follow a prescribed itinerary or to

comply with a prescribed time limit should
not entail the collection of any duties and
taxes potentially chargeable, provided the
Customs are satisfied that all other
requirements have been met.
SEC. 601. Bonding of Carrier Transporting Articles Under SEC 2102 Bonding of Carrier Transporting Articles Under the Minor amendment increasing amount
the Preceding Section. Preceding Section. - A carrier engaged in conveying imported of bond to PHP50 thousand (from
articles under the preceding section from a port of importation PHP10 thousand) and introducing
A carrier engaged in conveying imported articles FOR to other shall give security in the nature of a general transit in the provision in line with
TRANSIT under the preceding section from a port of transportation bond, in a sum not less than ten thousand pesos RKC standard.
importation to other ports shall give security in the nature of a (P10,000.00) conditioned that the carrier shall transport and
general transportation bond, in a sum not less than FIFTY deliver without delay, and in accordance with law and
THOUSAND (P50,000.00) conditioned that the carrier shall regulations, to the Collector at the port of destination all articles
transport and deliver without delay, and in accordance with delivered to such carrier and that all proper charges and
law and regulations, to the Collector at the port of destination expenses incurred by the customs authorities or at their
all articles delivered to such carrier and that all proper charges instance by reason of transshipments shall be duly paid.
and expenses incurred by the customs authorities or at their
instance by reason of TRANSFER shall be duly paid.
SEC. 602. Entry for TRANSIT TO ANOTHER PORT SEC 2101 Entry for Immediate Transportation. - Articles RKC standard on Security and use of Major amendment. The title of the
entered for constructive warehousing and immediate Transit as the accepted term for internal section was changed from Entry for
Articles entered for TRANSIT to other ports of the Philippines transportation under transit manifest to other ports of the transfer from port to port or to freezone. immediate transportation to Entry for
may be transported under SUFFICIENT SECURITY, upon Philippines without appraisement may be transported under transit to another port. Provision was
proper examination AS MAY BE NECESSARY and consigned irrevocable domestic letter of credit, bank guarantee or bond, also restructured by introducing
to the Collector at the port of destination, who will allow entry upon proper examination consigned to the Collector at the port transit and simplifying the guaranty
to be made at his port. of destination, who will allow entry to be made at his port by the requirement by alluding to sufficient
consignee. security instead of enumerating the
Articles received at any port from another port of the types of security. Also it makes clear
Philippines on A TRANSIT PERMIT may be entered at the Articles received at any port from another port of the the need for transfer to freezone to be
port of delivery either for consumption or warehousing. Philippines on an entry for immediate transportation may be covered by transit permit upon
ARTICLES ENTERED INTO FREE ZONES AS DEFINED IN entered at the port of delivery either for consumption or admission. This will make uniform the
TITLE 8, CHAPTER 3 OF THIS ACT SHALL BE COVERED warehousing. name of the document that customs
BY A TRANSIT PERMIT UPON ADMISSION INTO FREE will use for such transfers to freezone
ZONES. coming from any port of entry in the
68
Philippines.
CHAPTER 2. CUSTOMS TRANSSHIPMENT
SEC. 603. CUSTOMS TRANSSHIPMENT. Lifted from RKC Specific Annex E, New provision
Chapter 2, Standards 2, 5 and 8
GOODS ADMITTED FOR TRANSHIPMENT SHALL NOT BE
SUBJECT TO THE PAYMENT OF DUTIES AND TAXES, 2. Standard
PROVIDED THE CONDITIONS LAID DOWN BY THE
CUSTOMS ARE COMPLIED WITH. ANY COMMERCIAL OR Goods admitted to transhipment shall not
TRANSPORT DOCUMENT SETTING OUT CLEARLY THE be subject to the payment of duties and
NECESSARY PARTICULARS SHALL BE ACCEPTED AS taxes, provided the conditions laid down
THE DESCRIPTIVE PART OF THE GOODS DECLARATION by the Customs are complied with.
FOR TRANSHIPMENT AND THIS ACCEPTANCE SHALL BE
NOTED ON THE DOCUMENT. 5. Standard
THE EXPORTATION OF GOODS DECLARED FOR Any commercial or transport document

TRANSSHIPMENT SHALL BE MADE WITHIN 30 DAYS setting out clearly the necessary
FROM ARRIVAL OF THE CARRIER FROM THE FOREIGN particulars shall be accepted as the
TERRITORY, SUBJECT TO EXTENSION FOR VALID descriptive part of the Goods declaration
REASONS AND UPON APPROVAL OF THE for transhipment and this acceptance shall
COMMISSIONER OF CUSTOMS. be noted on the document.
8. Standard
When the Customs fix a time limit for the

exportation of goods declared for
transhipment, it shall be sufficient for the
purposes of transhipment.
SEC. 604. Articles Entered for OUTRIGHT Exportation. SEC 2103 Articles Entered for Immediate Exportation. - Where Specific Annex C Chapter 1 Standard 3 Provision is amended to reflect RKC
an intent to export the articles is shown by the bill of lading, standard.
Where an intent to export the articles is shown by the bill of invoice, manifest, or other satisfactory evidence, the whole or a 3. Standard
lading, AIRWAY BILL, invoice, manifest, or other satisfactory part of a bill (not less than one package) may be entered for
evidence, the whole or a part of a bill (not less than one immediate exportation under bond. The Collector shall The Customs shall not require evidence of
package) may be entered for immediate exportation under designate the vessel or aircraft in which the articles are laden the arrival of the goods abroad as a matter
TRANSSHIPMENT bond. constructively as a warehouse to facilitate the direct transfer of of course.
the articles to the exporting vessel or aircraft.
Unless it shall appear by the bill of lading, AIRWAY BILL,
invoice, manifest, or other satisfactory evidence, that articles
arriving in the Philippines are destined for transshipment, no
69
exportation thereof will be permitted.
Upon the exportation of the articles, and the production of

CERTIFICATE OF INSPECTION AND LOADING of the same
beyond the limits of the Philippines, the irrevocable domestic
letter of credit, bank guaranty or bond shall be released.
CUSTOMS SHALL NOT REQUIRE EVIDENCE, SUCH AS A

CERTIFICATE OF LANDING, OF THE ARRIVAL OF THE
TRANSHIPPED ARTICLES ABROAD.
TITLE 7. IMPORT DUTY AND TAX Sec 2 Anti Smuggling Bill (ASB) The working group has not found any
need to introduce any amendment to
Section 201 of TCCP. The ASB is
recommending a redefinition of the
transaction value by providing
additional conditions regarding the
nature of the sale (e.g. competitive
conditions; ordinary course of trade;
not involving discounts) which are not
only not provided in the definition of
customs value under the WTO TV
system but are actually changing it. It
also proposing a bonding system
within the dispute settlement provision
of Section 201 that has nothing to do
with customs valuation. In other words
ASB Sec 2 is introducing a subject
matter not germane to the section. It
also proposing to legislate on the
specifics of valuation dispute
settlement (e.g. role of reference
values) when that can be taken care of
as it is being taken care of by
administrative regulations. In other
words no need to legislate the VCRC
process in detail and with standards of
decision making that are not consistent
with the TV system. The remedy
against misdeclaration as to customs
70
value, etc is enforcement or better
implementation and not amending the
valuation law which is adequate as
asset of rules on customs value
determination.
CHAPTER 1. BASIS OF IMPORT DUTY
SEC. 700. Basis of Dutiable Value Transaction Value SEC 201 Basis of Dutiable Value. - En toto
System.
(A) Method One. Transaction Value. The dutiable
(A) Method One. - Transaction Value. - The dutiable value of an imported article subject to an ad valorem rate of
value of an imported article subject to an ad valorem rate of duty shall be the transaction value, which shall be the price
duty shall be the transaction value, which shall be the price actually paid or payable for the goods when sold for export to
actually paid or payable for the goods when sold for export to the Philippines, adjusted by adding:
the Philippines, adjusted by adding:
(1) The following to the extent that they are incurred by
:(1) The following to the extent that they are incurred the buyer but are not included in the price actually paid or
by the buyer but are not included in the price actually paid or payable for the imported goods:
payable for the imported goods:
(a) Commissions and brokerage fees (except buying
(a) Commissions and brokerage fees (except buying commissions);
commissions);
(b) Cost of containers;
(b) Cost of containers;
(c) The cost of packing, whether for labour or materials;
(c) The cost of packing, whether for labour or
materials; (d) The value, apportioned as appropriate, of the
following goods and services: materials, components, parts
(d) The value, apportioned as appropriate, of the and similar items incorporated in the imported goods; tools;
following goods and services: materials, components, parts dies; moulds and similar items used in the production of
and similar items incorporated in the imported goods; tools; imported goods; materials consumed in the production of the
dies; moulds and similar items used in the production of imported goods; and engineering, development, artwork,
imported goods; materials consumed in the production of the design work and plans and sketches undertaken elsewhere
imported goods; and engineering, development, artwork, than in the Philippines and necessary for the production of
design work and plans and sketches undertaken elsewhere imported goods, where such goods and services are supplied
than in the Philippines and necessary for the production of directly or indirectly by the buyer free of charge or at a reduced
imported goods, where such goods and services are supplied cost for use in connection with the production and sale for
directly or indirectly by the buyer free of charge or at a export of the imported goods;
reduced cost for use in connection with the production and
(e) The amount of royalties and license fees related to
71
sale for export of the imported goods; the goods being valued that the buyer must pay either directly
or indirectly, as a condition of sale of the goods to the buyer;
(e) The amount of royalties and license fees related to
the goods being valued that the buyer must pay either directly (2) The value of any part of the proceeds of any
or indirectly, as a condition of sale of the goods to the buyer; subsequent resale, disposal or use of the imported goods that
accrues directly or indirectly to the seller;
(2) The value of any part of the proceeds of any
subsequent resale, disposal or use of the imported goods that (3) The cost of transport o f the imported goods from
accrues directly or indirectly to the seller; the port of exportation to t he port of entry in the Philippines;
(3) The cost of transport of the imported goods from (4) Loading, unloading and handling charges
the port of exportation to the port of entry in the Philippines; associated with the transport of the imported goods from the
country of exportation to the port of entry in the Philippines;
(4) Loading, unloading and handling charges and
associated with the transport of the imported goods from the
country of exportation to the port of entry in the Philippines; (5) The cost of insurance.
and
All additions to the price actually paid or payable shall be made
(5) The cost of insurance. only on the basis of objective and quantifiable data.
All additions to the price actually paid or payable shall be No additions shall be made to the price actually paid or
made only on the basis of objective and quantifiable data. payable in determining the customs value except as provided
in this Section: Provided, That Method One shall not be used in
No additions shall be made to the price actually paid or determining the dutiable value of imported goods if:
payable in determining the customs value except as provided
in this Section: Provided, That Method One shall not be used (a) There are restrictions as to the disposition or use of
in determining the dutiable value of imported goods if: the goods by the buyer other than restrictions which:
(a) There are restrictions as to the disposition or use (i) Are imposed or required by law or by Philippine
of the goods by the buyer other than restrictions which: authorities;
(i) Are imposed or required by law or by Philippine (ii) Limit the geographical area in which the goods may
authorities; be resold; or
(ii) Limit the geographical area in which the goods (iii) Do not substantially affect the value of the goods.
may be resold; or
(b) The sale or price is subject to some condition or
(iii) Do not substantially affect the value of the goods. consideration for which a value cannot be determined with
respect to the goods being valued;
(b) The sale or price is subject to some condition or
consideration for which a value cannot be determined with (c) Part of the proceeds of any subsequent resale,
disposal or use of the goods by the buyer will accrue directly or
72
respect to the goods being valued; indirectly to the seller, unless an appropriate adjustment can be
made in accordance with the provisions hereof; or
(c) Part of the proceeds of any subsequent resale,
disposal or use of the goods by the buyer will accrue directly (d) The buyer and the seller are related to one another,
or indirectly to the seller, unless an appropriate adjustment and such relationship influenced the price of the goods. Such
can be made in accordance with the provisions hereof; or persons shall be deemed related if:
(d) The buyer and the seller are related to one (i) They are officers or directors of one another's
another, and such relationship influenced the price of the businesses;
goods. Such persons shall be deemed related if:
(ii) They are legally recognized partners in business;
(i) They are officers or directors of one another's
businesses; (iii) There exists an employer employee relationship
between them;
(ii) They are legally recognized partners in business;
(iv) Any person directly or indirectly owns, controls or
(iii) There exists an employer-employee relationship holds five percent (5%) or more of the outstanding voting stock
between them; or shares of both seller and buyer;
(iv) Any person directly or indirectly owns, controls or (v) One of them directly or indirectly controls the other;
holds five percent (5%) or more of the outstanding voting
stock or shares of both seller and buyer; (vi) Both of them are directly or indirectly controlled by a
third person;
(v) One of them directly or indirectly controls the other;
(vii) Together they directly or indirectly control a third
(vi) Both of them are directly or indirectly controlled by person; or
a third person;
(viii) They are members of the same family, including
(vii) Together they directly or indirectly control a third those related by affinity or consanguinity up to the fourth civil
person; or degree.
(viii) They are members of the same family, including Persons who are associated in business with one another in
those related by affinity or consanguinity up to the fourth civil that one is the sole agent, sole distributor or sole
degree. concessionaire, however described, of the other shall be
deemed to be related for the purposes of this Act if they fall
Persons who are associated in business with one another in within any of the eight (8) cases above.
that one is the sole agent, sole distributor or sole
concessionaire, however described, of the other shall be (B) Method Two. Transaction Value of Identical
deemed to be related for the purposes of this Act if they fall Goods. Where the dutiable value cannot be determined under
within any of the eight (8) cases above. method one, the dutiable value shall be the transaction value
of identical goods sold for export to the Philippines and
(B) Method Two. - Transaction Value of Identical exported at or about the same time as the goods being valued.
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Goods. - Where the dutiable value cannot be determined "Identical goods shall mean goods which are the same in all
under method one, the dutiable value shall be the transaction respects, including physical characteristics, quality and
value of identical goods sold for export to the Philippines and reputation. Minor differences in appearances shall not preclude
exported at or about the same time as the goods being goods otherwise conforming to the definition from being
valued. "Identical goods shall mean goods which are the regarded as identical.
same in all respects, including physical characteristics, quality
and reputation. Minor differences in appearances shall not (C) Method Three. Transaction Value of Similar
preclude goods otherwise conforming to the definition from Goods. Where the dutiable value cannot be determined under
being regarded as identical. the preceding method, the dutiable value shall be the
transaction value of similar goods sold for export to the
(C) Method Three. - Transaction Value of Similar Philippines and exported at or about the same time as the
Goods. - Where the dutiable value cannot be determined goods being valued. "Similar goods" shall mean goods which,
under the preceding method, the dutiable value shall be the although not alike in all respects, have like characteristics and
transaction value of similar goods sold for export to the like component materials which enable them to perform the
Philippines and exported at or about the same time as the same functions and to be commercially interchangeable. The
goods being valued. "Similar goods" shall mean goods which, quality of the goods, their reputation and the existence of a
although not alike in all respects, have like characteristics and trademark shall be among the factors to be considered in
like component materials which enable them to perform the determining whether goods are similar.
same functions and to be commercially interchangeable. The
quality of the goods, their reputation and the existence of a If the dutiable value still cannot be determined through the
trademark shall be among the factors to be considered in successive application of the two immediately preceding
determining whether goods are similar. methods, the dutiable value shall be determined under method
four or, when the dutiable value still cannot be determined
If the dutiable value still cannot be determined through the under that method, under method five, except that, at the
successive application of the two immediately preceding request of the importer, the order of application of methods four
methods, the dutiable value shall be determined under and five shall be reversed: Provided, however, That if the
method four or, when the dutiable value still cannot be Commissioner of Custom deems that he will experience real
determined under that method, under method five, except difficulties in determining the dutiable value using method five,
that, at the request of the importer, the order of application of the Commissioner of Customs may refuse such a request in
methods four and five shall be reversed: Provided, however, which event the dutiable value shall be determined under
That if the Commissioner of Custom deems that he will method four, if it can be so determined.
experience real difficulties in determining the dutiable value
using method five, the Commissioner of Customs may refuse (D) Method Four. Deductive Value. The dutiable
such a request in which event the dutiable value shall be value of the imported goods under this method shall be the
determined under method four, if it can be so determined. deductive value which shall be based on the unit price at which
the imported goods or identical or similar imported goods are
(D) Method Four. - Deductive Value. - The dutiable sold in the Philippines, In the same condition as when
value of the imported goods under this method shall be the imported, in the greatest aggregate quantity, at or about the
deductive value which shall be based on the unit price at time of the importation of the goods being valued, to persons
which the imported goods or identical or similar imported not related to the persons from whom they buy such goods,
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goods are sold in the Philippines, in the same condition as subject to deductions for the following:
when imported, in the greatest aggregate quantity, at or about
the time of the importation of the goods being valued, to (1) Either the commissions usually paid or agreed to be
persons not related to the persons from whom they buy such paid or the additions usually made for profit and general
goods, subject to deductions for the following: expenses in connection with sales in such country of imported
goods of the same class or kind;
(1) Either the commissions usually paid or agreed to
be paid or the additions usually made for profit and general (2) The usual costs of transport and insurance and
expenses in connection with sales in such country of imported associated costs incurred within the Philippines; and
goods of the same class or kind;
(3) Where appropriate, the costs and charges referred
(2) The usual costs of transport and insurance and to in subsection (A) (3), (4) and (5); and
associated costs incurred within the Philippines;
(4) The customs duties and other national taxes
(3) Where appropriate, the costs and charges referred payable in the Philippines by reason of the importation or sale
to in subsection (A) (3), (4) and (5); and of the goods.
(4) The customs duties and other national taxes If neither the imported goods nor identical nor similar imported
payable in the Philippines by reason of the importation or sale goods are sold at or about the time of importation of the goods
of the goods. being valued in the Philippines in the conditions as imported,
the customs value shall, subject to the conditions set forth in
If neither the imported goods nor identical nor similar imported the preceding paragraph hereof, be based on the unit price at
goods are sold at or about the time of importation of the goods which the imported goods or identical or similar imported goods
being valued in the Philippines in the conditions as imported, sold in the Philippines in the condition as imported at the
the customs value shall, subject to the conditions set forth in earliest date after the importation of the goods being valued
the preceding paragraph hereof, be based on the unit price at but before the expiration of ninety (90) days after such
which the imported goods or identical or similar imported importation.
goods sold in the Philippines in the condition as imported at
the earliest date after the importation of the goods being If neither the imported goods nor identical nor similar imported
valued but before the expiration of ninety (90) days after such goods are sold in the Philippines in the condition as imported,
importation. then, if the importer so requests, the dutiable value shall be
based on the unit price at which the imported goods, after
If neither the imported goods nor identical nor similar imported further processing, are sold in the greatest aggregate quantity
goods are sold in the Philippines in the condition as imported, to persons in the Philippines who are not related to the persons
then, if the importer so requests, the dutiable value shall be from whom they buy such goods, subject to allowance for the
based on the unit price at which the imported goods, after value added by such processing and deductions provided
further processing, are sold in the greatest aggregate quantity under Subsections (D)(1), (2), (3) and (4) hereof.
to persons in the Philippines who are not related to the
persons from whom they buy such goods, subject to (E) Method Five. Computed Value. The dutiable
allowance for the value added by such processing and value under this method shall be the computed value which
deductions provided under Subsections (D)(1), (2), (3) and (4)
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hereof. shall be the sum of:
(E) Method Five. - Computed Value. - The dutiable (1) The cost or the value of materials and fabrication or
value under this method shall be the computed value which other processing employed in producing the imported goods;
shall be the sum of:
(2) The amount for profit and general expenses equal
(1) The cost or the value of materials and fabrication to that usually reflected in the sale of goods of the same class
or other processing employed in producing the imported or kind as the goods being valued which are made by
goods; producers in the country of exportation for export to the
Philippines;
(2) The amount for profit and general expenses equal
to that usually reflected in the sale of goods of the same class (3) The freight, insurance fees and other transportation
or kind as the goods being valued which are made by expenses for the importation of the goods;
producers in the country of exportation for export to the
Philippines; (4) Any assist, if its value is not included under
paragraph (1) hereof; and
(3) The freight, insurance fees and other
transportation expenses for the importation of the goods; (5) The cost of containers and packing, if their values
are not included under paragraph (1) hereof.
(4) Any assist, if its value is not included under
paragraph (1) hereof; and The Bureau of Customs shall not require or compel any person
not residing in the Philippines to produce for examination, or to
(5) The cost of containers and packing, if their values allow access to, any account or other record for the purpose of
are not included under paragraph (1) hereof. determining a computed value However, information supplied
by the producer of the goods for the purposes of determining
The Bureau of Customs shall not require or compel any the customs value may be verified in another country with the
person not residing in the Philippines to produce for agreement of the producer and provided they will give sufficient
examination, or to allow access to, any account or other advance notice to the government of the country in question
record for the purpose of determining a computed value. and the latter does not object to the investigation.
However, information supplied by the producer of the goods
for the purposes of determining the customs value may be (F) Method Six. Fallback Value. If the dutiable value
verified in another country with the agreement of the producer cannot be determined under the preceding methods described
and provided they will give sufficient advance notice to the above, it shall be determined by using other reasonable means
government of the country in question and the latter does not and on the basis of data available in the Philippines.
object to the investigation.
If the importer so requests, the importer shall be informed in
(F) Method Six. - Fallback Value. - If the dutiable writing of the dutiable value determined under Method Six and
value cannot be determined under the preceding methods the method used to determine such value.
described above, it shall be determined by using other
reasonable means and on the basis of data available in the No dutiable value shall be determined under Method Six on the
Philippines. If the importer so requests, the importer shall be
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informed in writing of the dutiable value determined under basis of:
Method Six and the method used to determine such value.
(1) The selling price in the Philippines of goods
No dutiable value shall be determined under Method Six on produced in the Philippines;
the basis of:
(2) A system that provides for the acceptance for
(1) The selling price in the Philippines of goods customs purposes of the higher of two alternative values;
produced in the Philippines;
(3) The price of goods in the domestic market of the
(2) A system that provides for the acceptance for country of exportation;
customs purposes of the higher of two alternative values;
(4) The cost of production, other than computed
(3) The price of goods in the domestic market of the values, that have been determined for identical or similar
country of exportation; goods in accordance with Method Five hereof;
(4) The cost of production, other than computed (5) The price of goods for export to a country other than
values, that have been determined for identical or similar the Philippines;
goods in accordance with Method Five hereof;
(6) Minimum customs values; or
(5) The price of goods for export to a country other
than the Philippines; (7) Arbitrary or fictitious values.
(6) Minimum customs values; or If in the course of determining the dutiable value of imported
goods, it becomes necessary to delay the final determination of
(7) Arbitrary or fictitious values. such dutiable value, the importer shall nevertheless be able to
secure the release of the imported goods upon the filing of a
If in the course of determining the dutiable value of imported sufficient guarantee in the form of a surety bond, a deposit,
goods, it becomes necessary to delay the final determination cash or some other appropriate instrument in an amount
of such dutiable value, the importer shall nevertheless be able equivalent to the imposable duties and taxes on the imported
to secure the release of the imported goods upon the filing of goods in question conditioned upon the payment of customs
a sufficient guarantee in the form of a surety bond, a deposit, duties and taxes for which the imported goods may be liable:
cash or some other appropriate instrument in an amount Provided, however, That goods, the importation of which is
equivalent to the imposable duties and taxes on the imported prohibited by law shall not be released under any circumstance
goods in question conditioned upon the payment of customs whatsoever.
duties and taxes for which the imported goods may be liable:
Provided, however, That goods, the importation of which is Nothing in this Section shall be construed as restricting or
prohibited by law shall not be released under any calling into question the right of the Collector of Customs to
circumstance whatsoever. satisfy himself as to the truth or accuracy of any statement,
document or declaration presented for customs valuation
Nothing in this Section shall be construed as restricting or purposes. When a declaration has been presented and where
calling into question the right of the Collector of Customs to the customs administration has reason to doubt the truth or
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satisfy himself as to the truth or accuracy of any statement, accuracy of the particulars or of documents produced in
document or declaration presented for customs valuation support of this declaration, the customs administration may ask
purposes. When a declaration has been presented and where the importer to provide further explanation, including
the customs administration has reason to doubt the truth or documents or other evidence, that the declared value
accuracy of the particulars or of documents produced in represents the total amount actually paid or payable for the
support of this declaration, the customs administration may imported goods, adjusted in accordance with the provisions of
ask the importer to provide further explanation, including Subsection (A) hereof.
documents or other evidence, that the declared value
represents the total amount actually paid or payable for the If, after receiving further information, or in the absence of a
imported goods, adjusted in accordance with the provisions of response, the customs administration still has reasonable
Subsection (A) hereof. doubts about the truth or accuracy of the declared value, it
may, without prejudice to an importer's right to appeal pursuant
If, after receiving further information, or in the absence of a to Article 11 of the World Trade Organization Agreement on
response, the customs administration still has reasonable customs valuation, be deemed that the customs value of the
doubts about the truth or accuracy of the declared value, it imported goods cannot be determined under Method One.
may, without prejudice to an importer's right to appeal Before taking a final decision, the Collector of Customs shall
pursuant to Article 11 of the World Trade Organization communicate to the importer, in writing if requested, his
Agreement on customs valuation, be deemed that the grounds for doubting the truth or accuracy of the particulars or
customs value of the imported goods cannot be determined documents produced and give the importer a reasonable
under Method One. Before taking a final decision, the opportunity to respond. When a final decision is made, the
Collector of Customs shall communicate to the importer, in customs administration shall communicate to the importer in
writing if requested, his grounds for doubting the truth or writing its decision and the grounds therefor." (As amended by
accuracy of the particulars or documents produced and give Republic Act No. 9135 dated 27 April 2001)
the importer a reasonable opportunity to respond. When a
final decision is made, the customs administration shall
communicate to the importer in writing its decision and the
grounds therefor.
SEC. 701. Basis of Dutiable Weight. SEC 202 Bases of Dutiable Weight. En toto
On articles that are subject to specific rate of duty, based on On articles that are subject to specific rate of duty, based on
weight, the duty shall be ascertained as follows: weight, the duty shall be ascertained as follows:
(a) When articles are dutiable by the gross weight, the (a) When articles are dutiable by the gross weight, the
dutiable weight thereof shall be the weight of same, together dutiable weight thereof shall be the weight of same, together
with the weight of all containers, packages, holders and with the weight of all containers, packages, holders and
packing, of any kind, in which said articles are contained, held packing, of any kind, in which said articles are contained, held
or packed at the time of importation. or packed at the time of importation.
(b) When articles are dutiable by the legal weight, the (b) When articles are dutiable by the legal weight, the
dutiable weight thereof shall be the weight of same, together dutiable weight thereof shall be the weight of same, together
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with the weight of the immediate containers, holders and/or with the weight of the immediate containers, holders and/or
packing in which such articles are usually contained, held or packing in which such articles are usually contained, held or
packed at the time of importation and/or, when imported in packed at the time of importation and/or, when imported in
retail packages, at the time of their sale to the public in usual retail packages, at the time of their sale to the public in usual
retail quantities:Provided, That when articles are packed in retail quantities:
single container, the weight of the latter shall be included in
the legal weight. Provided, That when articles are packed in single container,
the weight of the latter shall be included in the legal weight.
(c) When articles are dutiable by the net weight, the
dutiable weight thereof shall be only the actual weight of the (c) When articles are dutiable by the net weight, the
articles at the time of importation, excluding the weight of the dutiable weight thereof shall be only the actual weight of the
immediate and all other containers, holders or packing in articles at the time of importation, excluding the weight of the
which such articles are contained, held or packed. immediate and all other containers, holders or packing in which
such articles are contained, held or packed.
(d) Articles affixed to cardboard, cards, paper, wood or
similar common material shall be dutiable together with the (d) Articles affixed to cardboard, cards, paper, wood or
weight of such holders. similar common material shall be dutiable together with the
weight of such holders.
(e) When a single package contains imported articles
dutiable according to different weights, or to weight and value, (e) When a single package contains imported articles
the common exterior receptacles shall be prorated and the dutiable according to different weights, or to weight and value,
different proportions thereof treated in accordance with the the common exterior receptacles shall be prorated and the
provisions of this ACT as to the dutiability or non-dutiability of different proportions thereof treated in accordance with the
such packing. provisions of this Code as to the dutiability or non dutiability of
such packing
SEC. 702. Exchange Rate. SEC 203 Rate of Exchange. En toto
For the assessment and collection of import duty upon For the assessment and collection of import duty upon
imported articles and for other purposes, the value and prices imported articles and for other purposes, the value and prices
thereof quoted in foreign currency shall be converted into the thereof quoted in foreign currency shall be converted into the
currency of the Philippines at the current rate of exchange or currency of the Philippines at the current rate of exchange or
value specified or published, from time to time, by the value specified or published, from time to time, by the Central
BANGKO SENTRAL NG PILIPINAS. Bank of the Philippines.
CHAPTER 2. SPECIAL DUTIES AND TRADE REMEDY

MEASURES
SEC. 703. Marking Duty. SEC 303 Marking of Imported Articles and Containers. En toto
Marking of Articles. Except as hereinafter provided, every a. Marking of Articles. Except as hereinafter
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article of foreign origin (or its container, as provided in provided, every article of foreign origin (or its container, as
subsection "b" hereof) imported into the Philippines shall be provided in subsection "b" hereof) imported into the Philippines
marked in any official language of the Philippines and in a shall be marked in any official language of the Philippines and
conspicuous place as legibly, indelibly and permanently as the in a conspicuous place as legibly, indelibly and permanently as
nature of the article (or container) will permit in such manner the nature of the article (or container) will permit in such
as to indicate to an ultimate purchaser in the Philippines the manner as to indicate to an ultimate purchaser in the
name of the country of origin of the article. The Commissioner Philippines the name of the country of origin of the article. The
of Customs shall, with the approval of the department head, Commissioner of Customs shall, with the approval of the
issue rules and regulations to department head, issue rules and regulations to
1. Determine the character of words and 1. Determine the character of words and phrases or
phrases or abbreviation thereof which shall be acceptable as abbreviation thereof which shall be acceptable as indicating
indicating the country of origin and prescribe any reasonable the country of origin and prescribe any reasonable method of
method of marking, whether by printing, stenciling, stamping, marking, whether by printing, stenciling, stamping, branding,
branding, labelling or by any other reasonable method, and a labelling or by any other reasonable method, and a
conspicuous place on the article or container where the conspicuous place on the article or container where the
marking shall appear. marking shall appear.
2. Require the addition of any other words 2. Require the addition of any other words or symbols
or symbols which may be appropriate to prevent deception or which may be appropriate to prevent deception or mistake as
mistake as to the origin of the article or as to the origin of any to the origin of the article or as to the origin of any other article
other article with which such imported article is usually with which such imported article is usually combined
combined subsequent to importation but before delivery to an subsequent to importation but before delivery to an ultimate
ultimate purchaser; and purchaser; and
3. Authorize the exception of any article 3. Authorize the exception of any article from the
from the requirements of marking if: requirements of marking if:
Such article is incapable of being marked; a. Such article is incapable of being marked;
Such article cannot be marked prior to shipment to the b. Such article cannot be marked prior to shipment to
Philippines without injury; the Philippines without injury;
Such article cannot be marked prior to shipment to the c. Such article cannot be marked prior to shipment to
Philippines, except at an expense economically prohibitive of the Philippines, except at an expense economically prohibitive
its importation; of its importation;
The marking of a container of such article will reasonably d. The marking of a container of such article will
indicate the origin of such article; reasonably indicate the origin of such article;
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Such article is a crude substance; e. Such article is a crude substance;
Such article is imported for use by the importer and not f. Such article is imported for use by the importer and
intended for sale in its imported or any other form; not intended for sale in its imported or any other form;
Such article is to be processed in the Philippines by the g. Such article is to be processed in the Philippines by
importer or for his account otherwise than for the purpose of t he importer o r f or his account otherwise than for the purpose
concealing the origin of such article and in such manner that of concealing the origin of such article and in such manner that
any mark contemplated by this section would necessarily be any mark contemplated by this section would necessarily be
obliterated, destroyed or permanently concealed; obliterated, destroyed or permanently concealed;
An ultimate purchaser, by reason of the character of such h. An ultimate purchaser, by reason of the character of
article or by reason of the circumstances of its importation such article or by reason of the circumstances of its importation
must necessarily know the country of origin of such article must necessarily know t he country of origin of such article
even though it is not marked to indicate its origin; even though it is not marked to indicate its origin;
Such article was produced more than twenty years prior to its i. Such article was produced more than twenty years
importation into the Philippines; or prior to its importation into the Philippines; or
Such article cannot be marked after importation except at an j. Such article cannot be marked after importation
expense which is economically prohibitive, and the failure to except at an expense which is economically prohibitive, and
mark the article before importation was not due to any the failure to mark the article before importation was not due to
purpose of the importer, producer, seller or shipper to avoid any purpose of the importer, producer, seller or shipper to
compliance with this section. avoid compliance with this section.
Marking of Containers. - Whenever an article is excepted b. Marking of Containers. Whenever an article is

under subdivision (3) of subsection "a" of this section from the excepted under subdivision (3) of subsection "a" of this section
requirements of marking, the immediate container, if any, of from the requirements of marking, the immediate container, if
such article, or such other container or containers of such any, of such article, or such other container or containers of
article as may be prescribed by the Commissioner of Customs such article as may be prescribed by the Commissioner of
with the approval of the department head, shall be marked in Customs with the approval of the department head, shall be
such manner as to indicate to an ultimate purchaser in the marked in such manner as to indicate to an ultimate purchaser
Philippines the name of the country of origin of such article in in the Philippines the name of the country of origin of such
any official language of the Philippines, subject to all article in any official language of the Philippines, subject to all
provisions of this section, including the same exceptions as provisions of this section, including the same exceptions as are
are applicable to articles under subdivision (3) of subsection applicable to articles under subdivision (3) of subsection "a".
"a".
c. Marking Duty for Failure to Mark. If at the time of
Marking Duty for Failure to Mark. - If at the time of importation importation any article (or its container, as provided in
any article (or its container, as provided in subsection "b" subsection "b" hereof), is not marked in accordance with the
hereof), is not marked in accordance with the requirements of requirements of this section, there shall be levied, collected
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this section, there shall be levied, collected and paid upon and paid upon such article a marking duty of 5 percent ad
such article a marking duty of 5 percent ad valorem, which valorem, which shall be deemed to have accrued at the time of
shall be deemed to have accrued at the time of importation, importation, except when such article is exported or destroyed
except when such article is exported or destroyed under under customs supervision and prior to the final liquidation of
customs supervision and prior to the final liquidation of the the corresponding entry.
corresponding entry.
d. Delivery Withheld Until Marked. No imported
Delivery Withheld Until Marked. No imported article held in article held in customs custody for inspection, examination or
customs custody for inspection, examination or appraisement appraisement shall be delivered until such article and/or its
shall be delivered until such article and/or its containers, containers, whether released or not from customs custody,
whether released or not from customs custody, shall have shall have been marked in accordance with the requirements
been marked in accordance with the requirements of this of this section and until the amount of duty estimated to be
section and until the amount of duty estimated to be payable payable under subsection "c" of this section shall have been
under subsection "c" of this section shall have been deposited. Nothing in this section shall be construed as
deposited. Nothing in this section shall be construed as excepting any article or its container from the particular
excepting any article or its container from the particular requirements of marking provided for in any provision of law.
requirements of marking provided for in any provision of law.
e. The failure or refusal of the owner or importer to
The failure or refusal of the owner or importer to mark the mark the articles as herein required within a period of thirty
articles as herein required within a period of thirty days after days after due notice shall constitute as an act of
due notice shall constitute as an act of abandonment of said abandonment of said articles and their disposition shall be
articles and their disposition shall be governed by the governed by the provisions of this Code relative to
provisions of this ACT relative to abandonment of imported abandonment of imported articles.
articles.
SEC.704. Dumping Duty. SEC 301 Anti Dumping Duty. as amended by Republic Act No. 8752 En toto
dated 12 August 1999
(a) Whenever any product, commodity or article of "(a) Whenever any product, commodity or article of
commerce imported into the Philippines at an export price less commerce imported into the Philippines at an export price less
than its normal value in the ordinary course of trade for the than its normal value in the ordinary course of trade for the like
like product, commodity or article destined for consumption in product, commodity or article destined for consumption in the
the exporting country is causing or is threatening to cause exporting country is causing or is threatening to cause material
material injury to a domestic industry, or materially retarding injury to a domestic industry, or materially retarding the
the establishment of a domestic industry producing the like establishment of a domestic industry producing the like
product, the Secretary of Trade and Industry, in the case of product, the Secretary of Trade and Industry, in the case of
non-agricultural product, commodity or article, or the non agricultural product, commodity or article, or the Secretary
Secretary of Agriculture, in the case of agricultural product, of Agriculture, in the case of agricultural product, commodity or
commodity or article (both of whom are hereinafter referred to article (both of whom are hereinafter referred to as the
as the Secretary, as the case may be), after formal Secretary, as the case may be), after formal investigation and
investigation and affirmative finding of the Tariff Commission affirmative finding of the Tariff Commission (hereinafter
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(hereinafter referred to as the Commission), shall cause the referred to as the Commission), shall cause the imposition of
imposition of an anti-dumping duty equal to the margin of an anti dumping duty equal to the margin of dumping on such
dumping on such product, commodity or article and on like product, commodity or article and on like product, commodity
product, commodity or article thereafter imported to the or article thereafter imported to the Philippines under similar
Philippines under similar circumstances, in addition to circumstances, in addition to ordinary duties, taxes and
ordinary duties, taxes and charges imposed by law on the charges imposed by law on the imported product, commodity
imported product, commodity or article. However, the or article. However, the anti dumping duty may be less than the
anti-dumping duty may be less than the margin if such lesser margin if such lesser duty will be adequate to remove the injury
duty will be adequate to remove the injury to the domestic to the domestic industry. Even when all the requirements f or t
industry. Even when all the requirements for the imposition he imposition have been fulfilled, the decision on whether or
have been fulfilled, the decision on whether or not to impose a not to impose a definitive anti dumping duty remains the
definitive anti-dumping duty remains the prerogative of the prerogative of the Commission. It may consider, among others,
Commission. It may consider, among others, the effect of the effect of imposing an anti dumping duty on the welfare of
imposing an anti-dumping duty on the welfare of consumers consumers and/or the general public, and other related local
and/or the general public, and other related local industries. industries.
"In the case where products are not imported directly from the "In the case where products are not imported directly from the
country of origin but are exported to the Philippines from an country of origin but are exported to the Philippines from an
intermediate country, the price at which the products are sold intermediate country, the price at which the products are sold
from the country of export in the Philippines shall normally be from the country of export in the Philippines shall normally be
compared with the comparable price in the country of export. compared with the comparable price in the country of export.
However, comparison may be made with the price in the However, comparison may be made with the price in the
country of origin, if for example, the products are merely country of origin, if for example, the products are merely
transshipped through the country of export, or such products transshipped through the country of export, or such products
are not produced in the country of export, or there is no are not produced in the country of export, or there is no
comparable price for them in the country of export. comparable price for them in the country of export.
(b) Initiation of Action. An anti-dumping investigation (b) Initiation of Action. Ananti-dumping investigation
may be initiated upon receipt of a written application from any may be initiated upon receipt of a written application from any
person whether natural or juridical, representing a domestic person whether natural or juridical, representing a domestic
industry, which shall include evidence of: a) dumping, b) industry, which shall include evidence of: a) dumping, b) injury,
injury, and c) causal link between the dumped imports and the and c) causal link between the dumped imports and the alleged
alleged injury. Simple assertion, unsubstantiated by relevant injury. Simple assertion, unsubstantiated by relevant evidence,
evidence, cannot be considered sufficient to meet the cannot be considered sufficient to meet the requirements of
requirements of this paragraph. The application shall contain this paragraph. The application shall contain such information
such information as is reasonably available to the applicant on as is reasonably available to the applicant on the following: 1)
the following: 1) the identity of the applicant and a description the identity of the applicant and a description of the volume
of the volume and the value of the domestic production of the and the value of the domestic production of the like product of
like product of the applicant; 2) a complete description of the the applicant; 2) a complete description of the alleged dumped
alleged dumped product, the name of the country of origin or product, the name of the country of origin or export under
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export under consideration, the identity of each known consideration, the identity of each known exporter or foreign
exporter or foreign producer, and a list of known persons producer, and a list of known persons importing the product
importing the product under consideration; 3) information on under consideration; 3) information on the normal value of the
the normal value of the product under consideration in the product under consideration in the country of origin or export;
country of origin or export; and 4) information on the evolution and 4) information on the evolution of the volume of the alleged
of the volume of the alleged dumped imports, the effect of dumped imports, the effect of these imports on the price of the
these imports on the price of the like product in the domestic like product in the domestic market, and the consequent impact
market, and the consequent impact of the imports on the of the imports on the domestic industry.
domestic industry.
"Philippine Trade, Agriculture or Finance Attaches and other
"Philippine Trade, Agriculture or Finance Attaches and other Consular Officials or Attaches in the concerned exporting
Consular Officials or Attaches in the concerned exporting member countries are mandated to furnish the applicant
member countries are mandated to furnish the applicant pertinent information or documents to support his complaint
pertinent information or documents to support his complaint within a period not exceeding thirty (30) days from receipt of a
within a period not exceeding thirty (30) days from receipt of a request.
request.
"The application shall be filed with the Secretary of Trade and
"The application shall be filed with the Secretary of Trade and Industry in the case of non agricultural product, commodity or
Industry in the case of non-agricultural product, commodity or article, or with the Secretary of Agriculture in the case of
article, or with the Secretary of Agriculture in the case of agricultural product, commodity or article. The Secretary shall
agricultural product, commodity or article. The Secretary shall require the petitioner to post a surety bond in such reasonable
require the petitioner to post a surety bond in such reasonable amount as to answer for any and all damages which the
amount as to answer for any and all damages which the importer may sustain by reason of the filing of a frivolous
importer may sustain by reason of the filing of a frivolous petition. He shall immediately release the surety bond upon
petition. He shall immediately release the surety bond upon making an affirmative preliminary determination.
making an affirmative preliminary determination.
"The application shall be considered to have been made "by or
"The application shall be considered to have been made "by on behalf of the domestic industry" if it is supported by those
or on behalf of the domestic industry" if it is supported by domestic producers whose collective output constitutes more
those domestic producers whose collective output constitutes than fifty percent (50%) of the total production of the like
more than fifty percent (50%) of the total production of the like product produced by that portion of the domestic industry
product produced by that portion of the domestic industry expressing either support for or opposition to the application. In
expressing either support for or opposition to the application. cases involving an exceptionally large number of producers,
In cases involving an exceptionally large number of the degree of support and opposition may be determined by
producers, the degree of support and opposition may be using a statistically valid sampling technique or by consulting
determined by using a statistically valid sampling technique or their representative organizations. However, no investigation
by consulting their representative organizations. However, no shall be initiated when domestic producers expressly
investigation shall be initiated when domestic producers supporting the application account for less than twenty five
expressly supporting the application account for less than percent (25%) of total production of the like product produced
twenty-five percent (25%) of total production of the like by the domestic industry.
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product produced by the domestic industry. "In exceptional circumstances, the Philippines may be divided
into two or more competitive markets and the producers within
"In exceptional circumstances, the Philippines may be divided each market may be regarded as a separate industry if (a) the
into two or more competitive markets and the producers within producers within such market have the dominant market share;
each market may be regarded as a separate industry if (a) the and (b) the demand in that market is not substantially supplied
producers within such market have the dominant market by other producers elsewhere in the Philippines.
share; and (b) the demand in that market is not substantially
supplied by other producers elsewhere in the Philippines. "If, in special circumstances, the Secretary decides to initiate
an investigation without having received a written application
"If, in special circumstances, the Secretary decides to initiate by or on behalf of a domestic industry for the initiation of such
an investigation without having received a written application investigation, he shall proceed only if he has sufficient
by or on behalf of a domestic industry for the initiation of such evidence of dumping, injury and a causal link, to justify the
investigation, he shall proceed only if he has sufficient initiation of an investigation.
evidence of dumping, injury and a causal link, to justify the
initiation of an investigation. "Within five (5) working days from receipt of a properly
documented application, the Secretary shall examine the
"Within five (5) working days from receipt of a properly accuracy and adequacy of the petition to determine whether
documented application, the Secretary shall examine the there is sufficient evidence to justify the initiation of
accuracy and adequacy of the petition to determine whether investigation. If there is no sufficient evidence to justify
there is sufficient evidence to justify the initiation of initiation, the Secretary shall dismiss the petition and properly
investigation. If there is no sufficient evidence to justify notify the Secretary of Finance, the Commissioner of Customs,
initiation, the Secretary shall dismiss the petition and properly and other parties concerned regarding such dismissal. The
notify the Secretary of Finance, the Commissioner of Secretary shall extend legal, technical, and other assistance to
Customs, and other parties concerned regarding such the concerned domestic producers and their organizations at
dismissal. The Secretary shall extend legal, technical, and all stages of the anti dumping action.
other assistance to the concerned domestic producers and
their organizations at all stages of the anti-dumping action. "(c) Notice to the Secretary of Finance. Upon receipt of
the application, the Secretary shall, without delay, notify the
"(c) Notice to the Secretary of Finance. - Upon receipt Secretary of Finance and furnish him with a complete copy of
of the application, the Secretary shall, without delay, notify the the application, or information in case the initiation is made on
Secretary of Finance and furnish him with a complete copy of his own motion including its annexes, if any. The Secretary o f
the application, or information in case the initiation is made on Finance s hall immediately inform the Commissioner of
his own motion including its annexes, if any. The Secretary of Customs regarding the filing and pendency of the application or
Finance shall immediately inform the Commissioner of information and instruct him to gather and to furnish the
Customs regarding the filing and pendency of the application Secretary within five (5) days from receipt of the instructions of
or information and instruct him to gather and to furnish the the Secretary of Finance copies of all import entries and
Secretary within five (5) days from receipt of the instructions relevant documents covering such allegedly dumped product,
of the Secretary of Finance copies of all import entries and commodity or article which entered the Philippines during the
relevant documents covering such allegedly dumped product, last twelve (12) months preceding the date of application. The
commodity or article which entered the Philippines during the Commissioner of Customs shall also make such similar
last twelve (12) months preceding the date of application. The
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Commissioner of Customs shall also make such similar additional reports on the number, volume, and value of the
additional reports on the number, volume, and value of the importation of the allegedly dumped product, commodity or
importation of the allegedly dumped product, commodity or article to the Secretary every ten (110) days thereafter.
article to the Secretary every ten (10) days thereafter.
"(d) Notice to Exporting Member Country. Upon
"(d) Notice to Exporting Member-Country. - Upon receipt of a properly documented application and before
receipt of a properly documented application and before proceeding to initiate an investigation, the Secretary shall notify
proceeding to initiate an investigation, the Secretary shall the government of the exporting country about the impending
notify the government of the exporting country about the anti dumping investigation. However, the Secretary shall refrain
impending anti-dumping investigation. However, the Secretary from publicizing the application for the initiation of the
shall refrain from publicizing the application for the initiation of investigation before a decision has been made to initiate an
the investigation before a decision has been made to initiate investigation.
an investigation.
"(e) Notice to Concerned Patties and Submission of
"(e) Notice to Concerned Patties and Submission of Evidences. Within two (2) days from initiation of the
Evidences. - Within two (2) days from initiation of the investigation and after having notified the exporting country,
investigation and after having notified the exporting country, the Secretary shall identify all interested parties, i.e., protestee
the Secretary shall identify all interested parties, i.e., importer, exporter and/or foreign producer, notify and require
protestee-importer, exporter and/or foreign producer, notify them to submit within thirty (30) days from receipt of such
and require them to submit within thirty (30) days from receipt notice evidences and information or reply to the questionnaire
of such notice evidences and information or reply to the to dispute the allegations contained in the application. At this
questionnaire to dispute the allegations contained in the point, the respondent is given the opportunity to present
application. At this point, the respondent is given the evidences to prove that he is not involved in dumping. He shall
opportunity to present evidences to prove that he is not furnish them with a copy of the application and its annexes
involved in dumping. He shall furnish them with a copy of the subject to the requirement to protect confidential information.
application and its annexes subject to the requirement to The notice shall be deemed to have been received five (5)
protect confidential information. The notice shall be deemed to days from the date on which it was sent to the respondent or
have been received five (5) days from the date on which it transmitted to the appropriate diplomatic representative of the
was sent to the respondent or transmitted to the appropriate exporting member, or an official representative of the exporting
diplomatic representative of the exporting member, or an territory. If the respondent fails to submit his answer, he shall
official representative of the exporting territory. If the be declared in default, in which case, the Secretary shall make
respondent fails to submit his answer, he shall be declared in such preliminary determination of the case on the basis of the
default, in which case, the Secretary shall make such information available, among others, the facts alleged in the
preliminary determination of the case on the basis of the petition and the supporting information and documents
information available, among others, the facts alleged in the supplied by the petitioner.
petition and the supporting information and documents
supplied by the petitioner. "(f) Preliminary Determination. Not later than thirty
(30) working days from receipt of the answer of the respondent
"(f) Preliminary Determination. - Not later than thirty importer, exporter, foreign producer, exporting member
(30) working days from receipt of the answer of the country, and other interested parties, the Secretary shall, on
86
respondent importer, exporter, foreign producer, exporting the basis of the application of the aggrieved party and the
member-country, and other interested parties, the Secretary answer of the respondent/s and their respective supporting
shall, on the basis of the application of the aggrieved party documents or information, make a preliminary determination of
and the answer of the respondent/s and their respective the application for the imposition of an anti dumping duty.
supporting documents or information, make a preliminary
determination of the application for the imposition of an "In the preliminary determination, the Secretary shall
anti-dumping duty. essentially determine the following:
"In the preliminary determination, the Secretary shall "(1.) P rice difference between the export p rice and t he
essentially determine the following: normal value of the article in question in the country of export
or origin;
"(1.) Price difference between the export price and the
normal value of the article in question in the country of export "(2) The presence and extent of material injury or threat
or origin; of injury to the domestic industry producing like product or the
material retardation of the establishment of a domestic
"(2) The presence and extent of material injury or threat industry; and
of injury to the domestic industry producing like product or the
material retardation of the establishment of a domestic "(3) The causal relationship between the allegedly
industry; and dumped product, commodity or article and the material injury or
threat of material injury to the affected domestic industry or
"(3) The causal relationship between the allegedly material retardation of the establishment of the domestic
dumped product, commodity or article and the material injury industry.
or threat of material injury to the affected domestic industry or
material retardation of the establishment of the domestic "The preliminary finding of the Secretary, together with the
industry. records of the case shall, within three (3) days, be transmitted
b y t he Secretary to the Commission for its immediate formal
"The preliminary finding of the Secretary, together with the investigation. In case his preliminary finding is affirmative, the
records of the case shall, within three (3) days, be transmitted burden of proof is shifted to the respondent to rebut the
by the Secretary to the Commission for its immediate formal preliminary finding. The Secretary shall immediately issue,
investigation. In case his preliminary finding is affirmative, the through the Secretary of Finance, written instructions to the
burden of proof is shifted to the respondent to rebut the Commissioner of Customs to impose within three (3) days from
preliminary finding. The Secretary shall immediately issue, receipt of instructions a cash bond equal to the provisionally
through the Secretary of Finance, written instructions to the estimated anti dumping duty but not greater than the
Commissioner of Customs to impose within three (3) days provisionally estimated margin of dumping in addition to any
from receipt of instructions a cash bond equal to the other duties, taxes and charges imposed by law on like articles.
provisionally estimated anti-dumping duty but not greater than The cash bond shall be deposited with the government
the provisionally estimated margin of dumping in addition to depository bank and shall be held in trust for the respondent.
any other duties, taxes and charges imposed by law on like Moreover, the posting of the cash bond shall only be required
articles. The cash bond shall be deposited with the no sooner than sixty (60) days from the date of initiation of the
government depository bank and shall be held in trust for the investigation. The date of initiation of the investigation is
respondent. Moreover, the posting of the cash bond shall only deemed to be the date the Secretary publishes such notice in
87
be required no sooner than sixty (60) days from the date of two (2) newspapers of general circulation. The Secretary shall
initiation of the investigation. The date of initiation of the cause such publication immediately after a decision to initiate
investigation is deemed to be the date the Secretary publishes the investigation has been made. The provisional anti dumping
such notice in two (2) newspapers of general circulation. The duty may only be imposed for a four (4) month period which
Secretary shall cause such publication immediately after a may be extended to six (6) months upon request by the
decision to initiate the investigation has been made. The exporters representing a significant percentage of the trade
provisional anti-dumping duty may only be imposed for a four involved. However, a provisional anti dumping duty lower than
(4) month period which may be extended to six (6) months the provisionally estimated margin of dumping can be imposed
upon request by the exporters representing a significant for a period of six (6) to nine (9) months, if it is deemed
percentage of the trade involved. However, a provisional sufficient to remove or prevent the material injury.
anti-dumping duty lower than the provisionally estimated
margin of dumping can be imposed for a period of six (6) to "(g) Termination of Investigation. The Secretary or the
nine (9) months, if it is deemed sufficient to remove or prevent Commission as the case may be, shall motu proprio terminate
the material injury. the investigation at any stage of the proceedings if the
provisionally estimated margin of dumping is less than two
"(g) Termination of Investigation. - The Secretary or the percent (2%) of export price or the volume of dumped imports
Commission as the case may be, shall motu proprio terminate or injury is negligible. The volume of dumped imports from a
the investigation at any stage of the proceedings if the particular country shall normally be regarded as negligible if it
provisionally estimated margin of dumping is less than two accounts for less than three percent (3%) of the imports of the
percent (2%) of export price or the volume of dumped imports like article in the Philippines unless countries which individually
or injury is negligible. The volume of dumped imports from a account for less than three percent (3%) of the imports of the
particular country shall normally be regarded as negligible if it like article in the Philippines collectively account for more than
accounts for less than three percent (3%) of the imports of the seven percent (7%) of the total imports of that article.
like article in the Philippines unless countries which
individually account for less than three percent (3%) of the "(h) Investigation of the Commission. Within three (3)
imports of the like article in the Philippines collectively account working days upon its receipt of the records of the case from
for more than seven percent (7%) of the total imports of that the Secretary, the Commission shall start the formal
article. investigation and shall accordingly notify in writing all parties on
record and, in addition, give public notice of the exact initial
"(h) Investigation of the Commission. - Within three (3) date, time and place of the formal investigation through the
working days upon its receipt of the records of the case from publication of such particulars and a concise summary of the
the Secretary, the Commission shall start the formal petition in two (2) newspapers of general circulation.
investigation and shall accordingly notify in writing all parties
on record and, in addition, give public notice of the exact initial "In the formal investigation, the Commission shall essentially
date, time and place of the formal investigation through the determine the following:
publication of such particulars and a concise summary of the
petition in two (2) newspapers of general circulation. "(1) If the article in question is being imported into, or
sold in the Philippines at a price less than its normal value; and
"In the formal investigation, the Commission shall essentially the difference, if any, between the export price and the normal
determine the following: value of the article.
88
"(1) If the article in question is being imported into, or "(2) The presence and extent of material injury or the
sold in the Philippines at a price less than its normal value; threat thereof to the domestic industry, or the material
and the difference, if any, between the export price and the retardation of the establishment of a domestic industry;
normal value of the article;
"(3) The existence of a casual relationship between the
"(2) The presence and extent of material injury or the allegedly dumped product, commodity or article and the
threat thereof to the domestic industry, or the material material injury or threat of material injury to the affected
retardation of the establishment of a domestic industry; domestic industry, or material retardation of the establishment
of a domestic industry;
"(3) The existence of a casual relationship between the
allegedly dumped product, commodity or article and the "(4) The anti dumping duty to be imposed; and
material injury or threat of material injury to the affected
domestic industry, or material retardation of the establishment "(5) The duration of the imposition of the anti dumping
of a domestic industry; duty.
"(4) The anti-dumping duty to be imposed; and "The formal investigation shall be conducted in a summary
manner. No dilatory tactics or unnecessary or unjustified
"(5) The duration of the imposition of the anti-dumping delays shall be allowed and the technical rules of evidence
duty. used in regular court proceedings shall not be applied.
"The formal investigation shall be conducted in a summary "In case any and all of the parties on record fail to submit their
manner. No dilatory tactics or unnecessary or unjustified answers to questionnaires/position papers within the
delays shall be allowed and the technical rules of evidence prescribed period, the Commission shall base its findings on
used in regular court proceedings shall not be applied. the best available information.
"In case any and all of the parties on record fail to submit their "The Commission shall complete the formal investigation and
answers to questionnaires/position papers within the submit a report of its findings, whether favorable or not, to the
prescribed period, the Commission shall base its findings on Secretary within one hundred twenty (120) days from receipt of
the best available information. the records of the case: Provided, however, That the
Commission shall, before a final determination is made, inform
"The Commission shall complete the formal investigation and all the interested parties in writing of the essential facts under
submit a report of its findings, whether favorable or not, to the consideration which from the basis for the decision to apply
Secretary within one hundred twenty (120) days from receipt definitive measures. Such disclosure should take place in
of the records of the case: Provided, however, That the sufficient time for the parties to defend their interests.
Commission shall, before a final determination is made,
inform all the interested parties in writing of the essential facts "(i) Determination of Material Injury or Threat Thereof.
under consideration which from the basis for the decision to The presence and extent of material injury to the domestic
apply definitive measures. Such disclosure should take place industry, as a result of the dumped imports shall be determined
in sufficient time for the parties to defend their interests. on the basis of positive evidence and shall require an objective
examination of, but shall not be limited to the following:
"(i) Determination of Material Injury or Threat Thereof.
89
- The presence and extent of material injury to the domestic "(1) The rate of increase and amount of imports, either
industry, as a result of the dumped imports shall be in absolute terms or relative to production or consumption in
determined on the basis of positive evidence and shall require the domestic market;
an objective examination of, but shall not be limited to the
following: "(2) The effect of the dumped imports on the price in the
domestic market for like product, commodity or article, that is,
"(1) The rate of increase and amount of imports, either whether there has been a significant price undercutting by the
in absolute terms or relative to production or consumption in dumped imports as compared with the price of like product,
the domestic market; commodity or article in the domestic market, or whether the
effect of such imports is otherwise to depress prices to a
"(2) The effect of the dumped imports on the price in significant degree or prevent price increases, which otherwise
the domestic market for like product, commodity or article, that would have occurred, to a significant degree; and
is, whether there has been a significant price undercutting by
the dumped imports as compared with the price of like "(3) The effect of the dumped imports o n t he domestic
product, commodity or article in the domestic market, or producers or the resulting retardation o f the establishment of a
whether the effect of such imports is otherwise to depress domestic industry manufacturing like product, commodity or
prices to a significant- degree or prevent price increases, article, including an evaluation of all relevant economic factors
which otherwise would have occurred, to a significant degree; and indices having a bearing on the state of the domestic
and industry concerned, such as, but not limited to, actual or
potential decline in output, sales, market share, profits,
"(3) The effect of the dumped imports on the domestic productivity, return on investments, or utilization of capacity;
producers or the resulting retardation of the establishment of a factors affecting domestic prices; the magnitude of dumping;
domestic industry manufacturing like product, commodity or actual and potential negative effects on cash flow, inventories,
article, including an evaluation of all relevant economic factors employment, wages, growth, and ability to raise capital or
and indices having a bearing on the state of the domestic investments.
industry concerned, such as, but not limited to, actual or
potential decline in output, sales, market share, profits, "The extent of injury of the dumped imports to the domestic
productivity, return on investments, or utilization of capacity; industry shall be determined by the Secretary and the
factors affecting domestic prices; the magnitude of dumping; Commission upon examination of all relevant evidence. Any
actual and potential negative effects on cash flow, inventories, known factors other than the dumped imports which at the
employment, wages, growth, and ability to raise capital or same time are injuring the domestic industry shall also be
investments. examined and the injuries caused by these factors must not be
attributed to the dumped imports. The relevant evidence m ay
"The extent of injury of the dumped imports to the domestic include, but shall not be limited to, the following:
industry shall be determined by the Secretary and the
Commission upon examination of all relevant evidence. Any "(1) The volume and value of imports not sold at
known factors other than the dumped imports which at the dumping prices;
same time are injuring the domestic industry shall also be
examined and the injuries caused by these factors must not "(2) Contraction in demand or changes in consumption
be attributed to the dumped imports. The relevant evidence pattern;
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may include, but shall not be limited to the following: "(3) Trade restrictive practices and competition between
foreign and domestic producers;
"(1) The volume and value of imports not sold at
dumping prices; "(4) Developments in technology; and
"(2) Contraction in demand or changes in consumption "(5) Export performance and productivity of the
pattern; domestic industry.
"(3) Trade restrictive practices and competition "A determination of threat of material injury shall be based on
between foreign and domestic producers; facts and not merely on allegation, conjecture or remote
possibility. The change in circumstances which will create a
"(4) Developments in technology; and situation in which the dumping will cause injury must be clearly
foreseen and imminent. In making a determination regarding
"(5) Export performance and productivity of the the existence of a threat of material injury, the following shall
domestic industry. be considered, inter lia, collectively:
"A determination of threat of material injury shall be based on "(1) A significant rate of increase of the dumped imports
facts and not merely on allegation, conjecture or remote in the domestic market indicating the likelihood of substantially
possibility. The change in circumstances which will create a increased importation;
situation in which the dumping will cause injury must be
clearly foreseen and imminent. In making a determination "(2) Sufficient freely disposable, or an imminent,
regarding the existence of a threat of material injury, the substantial increase in capacity of the exporter indicating the
following shall be considered, inter alia, collectively: likelihood of substantially increased dumped exports to the
domestic market, taking into account the availability of other
"(1) A significant rate of increase of the dumped export markets to absorb any additional exports;
imports in the domestic market indicating the likelihood of
substantially increased importation; "(3) Whether imports are entering at prices that will
have a significant depressing or suppressing effect on
"(2) Sufficient freely disposable, or an imminent, domestic prices and will likely increase demand for further
substantial increase in capacity of the exporter indicating the imports; and
likelihood of substantially increased dumped exports to the
domestic market, taking into account the availability of other "(4) Inventories of the product being investigated.
export markets to absorb any additional exports;
(j) Voluntary Price Undertaking Anti-dumping
"(3) Whether imports are entering at prices that will investigation maybe suspended or terminated without the
have a significant depressing or suppressing effect on imposition of provisional measures or anti-dumping duties upon
domestic prices and will likely increase demand for further receipt of the commission of a satisfactory voluntary price
imports; and undertaking executed by the exporter or foreign producer
under oath and accepted by the affected industry that he will
"(4) Inventories of the product being investigated. increase his price or will cease exporting to the Philippines at a
dumped price, thereby eliminating the material injury to the
(j) Voluntary Price Undertaking Anti-dumping
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investigation maybe suspended or terminated without the domestic industry producing like product. Price increases
imposition of provisional measures or anti-dumping duties under such undertakings shall not be higher than necessary to
upon receipt of the commission of a satisfactory voluntary eliminate the margin of dumping.
price undertaking executed by the exporter or foreign
producer under oath and accepted by the affected industry "A price undertaking shall be accepted only after a preliminary
that he will increase his price or will cease exporting to the affirmative determination of dumping and injury caused by such
Philippines at a dumped price, thereby eliminating the material dumping has been made. No price undertaking shall take effect
injury to the domestic industry producing like product. Price unless it is approved by the Secretary after a recommendation
increases under such undertakings shall not be higher than by the Commission.
necessary to eliminate the margin of dumping.
"Even if the price undertaking is acceptable, the investigation
"A price undertaking shall be accepted only after a preliminary shall nevertheless be continued and completed by the
affirmative determination of dumping and injury caused by Commission if the exporter or foreign producer so desires or
such dumping has been made. No price undertaking shall upon advice of the Secretary. The undertaking shall
take effect unless it is approved by the Secretary after a automatically lapse in case of a negative finding. In case of any
recommendation by the Commission. affirmative finding, the undertaking shall continue, consistent
with the provisions of Article VI of the GATT 1994.
"Even if the price undertaking is acceptable, the investigation
shall nevertheless be continued and completed by the "(k) Cumulation of Imports. When imports of products,
Commission if the exporter or foreign producer so desires or commodities or articles from more than one country are
upon advice of the Secretary. The undertaking shall simultaneously the subject of an anti dumping investigation,
automatically lapse in case of a negative finding. In case of the Secretary or the Commission may cumulatively assess the
any affirmative finding, the undertaking shall continue, effects of such imports only if the Secretary and the
consistent with the provisions of Article VI of the GATT 1994. Commission are convinced that:
"(k) Cumulation of Imports. - When imports of "(1) The margin of dumping established in relation to the
products, commodities or articles from more than one country imports from each country is more than de minimis as defined
are simultaneously the subject of an anti-dumping in Subsection G;
investigation, the Secretary or the Commission may
cumulatively assess the effects of such imports only if the "(2) The volume of such imports from each country is
Secretary and the Commission are convinced that: not negligible, also as defined in Subsection G; and
"(1) The margin of dumping established in relation to "(3) A cumulative assessment of the effects of such
the imports from each country is more than de minimis as imports is warranted in the light of the conditions of competition
defined in Subsection G; between the imported products, commodities or articles, and
the conditions of competition between the imported products
"(2) The volume of such imports from each country is and the like domestic products, commodities or articles.
not negligible, also as defined in Subsection G; and
"(I) Imposition of the Anti Dumping Duty. The
"(3) A cumulative assessment of the effects of such Secretary shall, within ten (10) days from receipt of the
imports is warranted in the light of the conditions of affirmative final determination by the Commission, issue a
92
competition between the imported products, commodities or Department Order imposing an anti dumping duty on the
articles, and the conditions of competition between the imported product, commodity or article, unless he has earlier
imported products and the like domestic products, accepted a price undertaking from the exporter or foreign
commodities or articles. producer. He shall furnish the Secretary of Finance with the
copy of the order and request the latter to direct the
"(I) Imposition of the Anti-Dumping Duty. - The Commissioner of Customs to collect within three (3) days from
Secretary shall, within ten (10) days from receipt of the receipt thereof the definitive antidumping duty.
affirmative final determination by the Commission, issue a
Department Order imposing an anti-dumping duty on the "In case a cash bond has been filed, the same shall be applied
imported product, commodity or article, unless he has earlier to the anti dumping duty assessed. If the cash bond is in
accepted a price undertaking from the exporter or foreign excess of the anti dumping duty assessed, the remainder shall
producer. He shall furnish the Secretary of Finance with the be returned to the importer immediately including interest
copy of the order and request the latter to direct the earned, if any: Provided, That no interest shall be payable by
Commissioner of Customs to collect within three (3) days from the government on the amount to be returned. If the assessed
receipt thereof the definitive anti-dumping duty. anti dumping duty is higher than the cash bond filed, the
difference shall not be collected.
"In case a cash bond has been filed, the same shall be
applied to the anti-dumping duty assessed. If the cash bond is "Upon determination of the anti dumping duty, the
in excess of the anti-dumping duty assessed, the remainder Commissioner of Customs shall submit to the Secretary,
shall be returned to the importer immediately including interest through the Secretary of Finance, certified reports on the
earned, if any: Provided, That no interest shall be payable by disposition of the cash bond and the amounts of the anti
the government on the amount to be returned. If the assessed dumping duties collected.
anti-dumping duty is higher than the cash bond filed, the
difference shall not be collected. "In case of a negative finding by the Commission, the
Secretary shall issue, after the lapse of the period for the
"Upon determination of the anti-dumping duty, the petitioner to appeal to the Court of Tax Appeals, through the
Commissioner of Customs shall submit to the Secretary, Secretary of Finance, an order for the Commissioner of
through the Secretary of Finance, certified reports on the Customs for the immediate release of the cash bond to the
disposition of the cash bond and the amounts of the importer. In addition, all the parties concerned shall also be
anti-dumping duties collected. properly notified of the dismissal of the case.
"In case of a negative finding by the Commission, the "(m) Period Subject to Anti Dumping Duty. An anti
Secretary shall issue, after the lapse of the period for the dumping duty may be levied retroactively from the date the
petitioner to appeal to the Court of Tax Appeals, through the cash bond has been imposed and onwards, where a final
Secretary of Finance, an order for the Commissioner of determination of injury is made, or in the absence of provisional
Customs for the immediate release of the cash bond to the measures, a threat of injury has led to actual injury. Where a
importer. In addition, all the parties concerned shall also be determination of threat of injury or material retardation is made,
properly notified of the dismissal of the case. anti dumping duties may be imposed only from the date of
determination thereof and any cash bond posted shall be
"(m) Period Subject to Anti-Dumping Duty. - An released in an expeditious manner. However, an anti dumping
anti-dumping duty may be levied retroactively from the date duty may be levied on products which were imported into the
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the cash bond has been imposed and onwards, where a final country not more than ninety (90) days prior to the date of
determination of injury is made, or in the absence of application of the cash bond, when the authorities determine
provisional measures, a threat of injury has led to actual for the dumped product in question that:
injury. Where a determination of threat of injury or material
retardation is made, anti-dumping duties may be imposed only "(1) There is a history of dumping which caused injury or
from the date of determination thereof and any cash bond that the importer was, or should have been, aware that the
posted shall be released in an expeditious manner. However, exporter practices dumping and that such dumping would
an anti-dumping duty may be levied on products which were cause injury; and
imported into the country not more than ninety (90) days prior
to the date of application of the cash bond, when the "(2) The injury is caused by massive dumped imports of
authorities determine for the dumped product in question that: a product in a relatively short time which in light of the timing
and the volume of the dumped imports and other
"(1) There is a history of dumping which caused injury circumstances (such as rapid build up of inventories of the
or that the importer was, or should have been, aware that the imported product) is likely to seriously undermine the remedial
exporter practices dumping and that such dumping would effect of the definitive antidumping duty to be applied:
cause injury; and Provided, That the importers concerned have been given an
opportunity to comment.
"(2) The injury is caused by massive dumped imports
of a product in a relatively short time which in light of the "No duties shall be levied retroactively pursuant to herein
timing and the volume of the dumped imports and other subsection on products entered for consumption prior to the
circumstances (such as rapid build-up of inventories of the date of initiation of the investigation.
imported product) is likely to seriously undermine the remedial
effect of the definitive antidumping duty to be applied: (n) Computation of Anti-Dumping Duty. If the normal
Provided, That the importers concerned have been given an value of an article cannot be determined, the provisions for
opportunity to comment. choosing alternative normal value under Article Vi of GATT
1994 shall apply.
"No duties shall be levied retroactively pursuant to herein
subsection on products entered for consumption prior to the "If possible, an individual margin of dumping shall be
date of initiation of the investigation. determined for each known exporter or producer of t he article
u rider investigation. I n cases w here t he number of exporters,
(n) Computation of Anti-Dumping Duty. If the normal producers, importers or types of products involved is so large
value of an article cannot be determined, the provisions for as to make such determination impracticable, the Secretary
choosing alternative normal value under Article VI of GATT and the Commission may limit their examination either to a
1994 shall apply. reasonable number of interested parties or products by using
samples which are statistically valid on the basis of information
"If possible, an individual margin of dumping shall be available to them at the time of the selection, or to the largest
determined for each known exporter or producer of the article percentage of volume of exports from the country in question
under investigation. In cases where the number of exporters, which can reasonably be investigated.
producers, importers or types of products involved is so large
as to make such determination impracticable, the Secretary "However, if a non selected exporter or producer submits
and the Commission may limit their examination either to a information, the investigation must extend to that exporter or
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reasonable number of interested parties or products by using producer unless this will prevent the timely completion of the
samples which are statistically valid on the basis of investigation.
information available to them at the time of the selection, or to
the largest percentage of volume of exports from the country "New exporters or producers who have not exported to the
in question which can reasonably be investigated. Philippines during the period of investigation will be subject to
an accelerated review. No anti dumping duties shall b a
"However, if a non-selected exporter or producer submits imposed during the review. Cash bonds may be requested to
information, the investigation must extend to that exporter or ensure that in case of affirmative findings, anti dumping duties
producer unless this will prevent the timely completion of the can be levied retroactively to the date of initiation of the review.
investigation.
"(o) Duration and Review of the Anti Dumping Duty.
"New exporters or producers who have not exported to the As a general rule, the imposition of an antidumping duty shall
Philippines during the period of investigation will be subject to remain in force only as long as and to the extent necessary to
an accelerated review. No anti-dumping duties shall be counteract dumping which is causing or threatening to cause
imposed during the review. Cash bonds may be requested to material injury to the domestic industry or material retardation
ensure that in case of affirmative findings, anti-dumping duties of the establishment of such industry.
can be levied retroactively to the date of initiation of the
review. "However, the need for the continued imposition of the anti
dumping duty may be reviewed by the Commission when
"(o) Duration and Review of the Anti-Dumping Duty. - warranted motu proprio, or upon the direction of the Secretary,
As a general rule, the imposition of an antidumping duty shall taking into consideration the need to protect the existing
remain in force only as long as and to the extent necessary to domestic industry against dumping.
counteract dumping which is causing or threatening to cause
material injury to the domestic industry or material retardation "Any interested party with substantial positive information may
of the establishment of such industry. also petition the Secretary for a review of the continued
imposition of the anti dumping duty: Provided, That a
"However, the need for the continued imposition of the reasonable period of time has elapsed since the imposition of
anti-dumping duty may be reviewed by the Commission when the anti dumping duty. Interested parties shall have the right to
warranted motu proprio, or upon the direction of the request the Secretary to examine: 1) whether the continued
Secretary, taking into consideration the need to protect the imposition of the anti dumping duty is necessary to offset
existing domestic industry against dumping. dumping; and 2) whether the injury would likely continue or
recur if the anti dumping duty were removed or modified, or
"Any interested party with substantial positive information may both.
also petition the Secretary for a review of the continued
imposition of the anti-dumping duty: Provided, That a "If the Commission determines that the anti dumping duty is no
reasonable period of time has elapsed since the imposition of longer necessary or warranted, the Secretary shall, upon its
the anti-dumping duty. Interested parties shall have the right recommendation, issue a department order immediately
to request the Secretary to examine: 1) whether the continued terminating the imposition of the anti dumping duty. All parties
imposition of the anti-dumping duty is necessary to offset concerned shall be notified accordingly of such termination,
dumping; and 2) whether the injury would likely continue or including the Secretary of Finance and the Commissi6ner of
recur if the anti-dumping duty were removed or modified, or
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both. Customs.
"If the Commission determines that the anti-dumping duty is "The duration of the definitive anti dumping duty s hall not
no longer necessary or warranted, the Secretary shall, upon exceed five (5) years from the date of its imposition (or from
its recommendation, issue a department order immediately the date of the most recent review if that review has covered
terminating the imposition of the anti-dumping duty. All parties both dumping and injury) unless the Commission has
concerned shall be notified accordingly of such termination, determined in a review initiated before that date on their own
including the Secretary of Finance and the Commissioner of initiative or upon a duly substantiated request made by or on
Customs. behalf of the domestic industry within a reasonable time period
prior to the termination date that the termination of the anti
"The duration of the definitive anti-dumping duty shall not dumping duty will likely lead to the continuation or recurrence
exceed five (5) years from the date of its imposition (or from of dumping and injury.
the date of the most recent review if that review has covered
both dumping and injury) unless the Commission has "The provisions of this Section regarding evidence and
determined in a review initiated before that date on their own procedures shall apply to any review carried out under this
initiative or upon a duly substantiated request made by or on Subsection and any such review should be carried out
behalf of the domestic industry within a reasonable time expeditiously and should be conducted not later than one
period prior to the termination date that the termination of the hundred fifty (150) days from the date of initiation of such
anti-dumping duty will likely lead to the continuation or review.
recurrence of dumping and injury.
"(p) Judicial Review. Any interested party in an anti
"The provisions of this Section regarding evidence and dumping investigation who is adversely affected by a final
procedures shall apply to any review carried out under this ruling in connection with the imposition of an anti dumping duty
Subsection and any such review should be carried out may file with the Court of Tax Appeals, a petition for the review
expeditiously and should be conducted not later than one of such ruling within thirty (30) days from his receipt of notice of
hundred fifty (150) days from the date of initiation of such the final ruling: Provided, however, That the filing of such
review. petition for review shall not in any way stop, suspend, or
otherwise hold the imposition or collection, as the case may be,
"(p) Judicial Review. - Any interested party in an of the anti dumping duty on the imported product, commodity
anti-dumping investigation who is adversely affected by a final or article. The rules of procedure of the court on the petition for
ruling in connection with the imposition of an anti-dumping review filed with the Court of Tax Appeals shall be applied.
duty may file with the Court of Tax Appeals, a petition for the
review of such ruling within thirty (30) days from his receipt of "(q) Public Notices. The Secretary or the Commission
notice of the final ruling: Provided, however, That the filing of shall inform in writing all interested parties on record and, in
such petition for review shall not in any way stop, suspend, or addition, give public notices by publishing in two (2)
otherwise hold the imposition or collection, as the case may newspapers of general circulation when:
be, of the anti-dumping duty on the imported product,
commodity or article. The rules of procedure of the court on "(1) Initiating an investigation;
the petition for review filed with the Court of Tax Appeals shall
be applied. "(2) Concluding or suspending investigation;
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"(q) Public Notices. - The Secretary or the Commission (3) Making any preliminary or final determination
shall inform in writing all interested parties on record and, in whether affirmative or negative;
addition, give public notices by publishing in two (2)
newspapers of general circulation when: "(4) Making a decision to accept or to terminate an
undertaking; and
"(1) Initiating an investigation;
"(5) Terminating a definitive anti dumping duty.
"(2) Concluding or suspending investigation;
Commissioner of Customs a list of imported products
(3) Making any preliminary or final determination susceptible to unfair trade practices. The Commissioner of
whether affirmative or negative; Customs is hereby mandated to submit to the Secretary
monthly reports covering importations of said products,
"(4) Making a decision to accept or to terminate an including but not limited to the following:
undertaking; and
"(1) Commercial invoice;
"(5) Terminating a definitive anti-dumping duty.
"(2) Bill of lading;
The Secretary shall regularly submit to the Commissioner of
Customs a list of imported products susceptible to unfair trade "(3) Import entries; and
practices. The Commissioner of Customs is hereby mandated
to submit to the Secretary monthly reports covering "(4) Pre shipment reports.
importations of said products, including but not limited to the
following: "Failure to comply with the submission of such report as
provided herein shall hold the concerned officials liable and
"(1) Commercial invoice; shall be punished with a fine not exceeding the equivalent of
six (6) months salary or suspension not exceeding one (1)
"(2) Bill of lading; year.
"(3) Import entries; and "(s) Definition of Terms. For purposes of this Act, the
following definitions shall apply:
"(4) Pre-shipment reports.
"(1) Anti dumping duty refers to a special duty imposed
"Failure to comply with the submission of such report as on the importation of a product, commodity or article of
provided herein shall hold the concerned officials liable and commerce into the Philippines at less than its normal value
shall be punished with a fine not exceeding the equivalent of when destined for domestic consumption in the exporting
six (6) months salary or suspension not exceeding one (1) country, which is the difference between the export price and
year. the normal value of such product, commodity or article.
"(s) Definition of Terms. - For purposes of this ACT, the "(2) Export price refers to (1) the ex factory price at the
following definitions shall apply: point of sale for export; or (2) the F.O.B. price at the point of
shipment. In cases where (1) or (2) cannot be used, then the
"(1) Anti-dumping duty refers to a special duty imposed export price may be constructed based on such reasonable
97
on the importation of a product, commodity or article of basis as the Secretary or th6 Commission may determine.
commerce into the Philippines at less than its normal value
when destined for domestic consumption in the exporting "(3) Normal value refers to a comparable price at the
country, which is the difference between the export price and date of sale of the like product, commodity or article in the
the normal value of such product, commodity or article. ordinary course of trade when destined for consumption in the
country of export.
"(2) Export price refers to (1) the ex-factory price at the
point of sale for export; or (2) the F.O.B. price at the point of "(4) Domestic industry refers to the domestic producers
shipment. In cases where (1) or (2) cannot be used, then the as a whole of the like product or to those of them whose
export price may be constructed based on such reasonable collective output of the product constitutes a major related to
basis as the Secretary or the Commission may determine. the exporters or importers or are themselves importers of the
allegedly dumped product, the term 'domestic industry' may be
"(3) Normal value refers to a comparable price at the interpreted as referring to the rest of the producers.
date of sale of the like product, commodity or article in the
ordinary course of trade when destined for consumption in the "(5) Dumped import product refers to any product,
country of export. commodity or article of commerce introduced into the
Philippines at an export price less than its normal value in the
"(4) Domestic industry refers to the domestic producers ordinary course of trade, for the like product, commodity or
as a whole of the like product or to those of them whose article destined for consumption in the exporting country, which
collective output of the product constitutes a major proportion is causing or is threatening to cause material injury to a
of the total domestic production of that product, except when domestic industry, or materially retarding the establishment of
producers are related to the exporters or importers or are a domestic industry producing the like product.
themselves importers of the allegedly dumped product, the
term 'domestic industry' may be interpreted as referring to the "(6) Like product refers to a product which is identical or
rest of the producers. alike in all respects to the product under consideration, or in
the absence of such a product, another product which,
"(5) Dumped import product refers to any product, although not alike in all respects, has characteristics closely
commodity or article of commerce introduced into the resembling those of the product under consideration.
Philippines at an export price less than its normal value in the
ordinary course of trade, for the like product, commodity or "(7) Non selected exporter or producer refers to an
article destined for consumption in the exporting country, exporter or producer who has not been initially chosen as
which is causing or is threatening to cause material injury to a among the selected exporters or producers of the product
domestic industry, or materially retarding the establishment of under investigation.
a domestic industry producing the like product.
"(t) Administrative Support. Upon the effectivity of this
"(6) Like product refers to a product which is identical Act, the Departments of Trade and Industry, Agriculture and
or alike in all respects to the product under consideration, or in the Tariff Commission, shall ensure the efficient and effective
the absence of such a product, another product which, implementation of this Act by creating a special unit within their
although not alike in all respects, has characteristics closely agencies that will undertake the functions relative to the
resembling those of the product under consideration. disposition of antidumping cases. All anti dumping duties
collected shall be earmarked for the strengthening of the
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"(7) Non-selected exporter or producer refers to an capabilities of these agencies to undertake their responsibilities
exporter or producer who has not been initially chosen as under this Act." (As amended by Republic Act No. 8752 dated
among the selected exporters or producers of the product 12 August 1999)
under investigation.
"(t) Administrative Support. - Upon the effectivity of

this Act, the Departments of Trade and Industry, Agriculture
and the Tariff Commission, shall ensure the efficient and
effective implementation of this ACT by creating a special unit
within their agencies that will undertake the functions relative
to the disposition of antidumping cases. All anti-dumping
duties collected shall be earmarked for the strengthening of
the capabilities of these agencies to undertake their
responsibilities under this Act.
SEC. 705. SAFEGUARD DUTY. RA 8800 New provision. The working group
found it may be of use to incorporate
THE PROVISIONS OF R.A. 8800, OTHERWISE KNOWN AS RA8800 into the draft bill for ease of
AN ACT PROTECTING LOCAL INDUSTRIES BY reference as far as trade remedy
PROVIDING SAFEGUARD MEASURES TO BE measures are concerned.
UNDERTAKEN IN RESPONSE TO INCREASED IMPORTS
AND PROVIDING PENALTIES FOR VIOLATION THEREOF,
AND ITS IMPLEMENTING RULES SHALL BE APPLICABLE
IN THE ASSESSMENT AND COLLECTION BY THE
BUREAU OF CUSTOMS OF THE APPROPRIATE
SAFEGUARD DUTY ON IMPORTED ARTICLES.
SEC. 706. Countervailing Duty. SEC 302 Countervailing Duty. - RA 8751 dated 07 August 1999 En toto
Whenever any product, commodity or article of commerce is Whenever any product, commodity or article of commerce is
granted directly or indirectly by the government in the country granted directly or indirectly by the government in the country
or origin or exportation, any kind or form of specific subsidy or origin or exportation, any kind or form of specific subsidy
upon the production, manufacture or exportation of such upon the production, manufacture or exportation of such
product, commodity or article, and the importation of such product, commodity or article, and the importation of such
subsidized product, commodity or article has caused or subsidized product, commodity or article has caused or
threatens to cause material injury to a domestic industry or threatens to cause material injury to a domestic industry or has
has materially retarded the growth or prevents the materially retarded the growth or prevents the establishment of
establishment of a domestic industry as determined by the a domestic industry as determined by the Tariff Commission
Tariff Commission (hereinafter referred to as the (hereinafter referred to as the 'Commission'), the Secretary of
'Commission'), the Secretary of Trade and Industry, in the Trade and Industry, in the case of nonagricultural product,
case of non-agricultural product, commodity or article, or the commodity or article, or the Secretary of Agriculture, in the
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Secretary of Agriculture, in the case of agricultural product, case of agricultural product, commodity or article (both of
commodity or article (both of whom are hereinafter simply whom are hereinafter simply referred to as 'the Secretary,' as
referred to as 'the Secretary,' as the case may be) shall issue the case may be) shall issue a department order imposing a
a department order imposing a countervailing duty equal to countervailing duty equal to the ascertained amount of the
the ascertained amount of the subsidy. The same levy shall subsidy. The same levy shall be imposed on the like product,
be imposed on the like product, commodity or article commodity or article thereafter imported to the Philippines
thereafter imported to the Philippines charges imposed by law charges imposed by law on such imported product, commodity
on such imported product, commodity or article. or article.
Initiation of Action. - A countervailing action may be initiated (A) Initiation of Action. A countervailing action may be
by the following: initiated by the following:
(1) Any person, whether natural or juridical, who has (1) Any person, whether natural or juridical, who has
an interest to protect, by filing a verified petition for the an interest to protect, by filing a verified petition for the
imposition of a countervailing duty by or on behalf of the imposition of a countervailing duty by or on behalf of the
domestic industry; domestic industry;
(2) The Secretary of Trade and Industry or the (2) The Secretary of Trade and Industry or the
Secretary of Agriculture, as the case may be, in special Secretary of Agriculture, as the case may be, in special
circumstances where there is sufficient evidence of an circumstances where there is sufficient evidence of an
existence of a subsidy, injury and causal link. existence of a subsidy, injury and causal link.
Requirements. - A petition shall be filed with the Secretary (B) Requirements. A petition shall be filed with the
and shall be accompanied by documents, if any, which are Secretary and shall be accompanied by documents, if any,
reasonably available to the petitioner and which contain which are reasonably available to the petitioner and which
information supporting the facts that are essential to establish contain information supporting the facts that are essential to
the presence of the elements for the imposition of a establish the presence of the elements for the imposition of a
countervailing duty, and shall further state, among others: countervailing duty, and shall further state, among others:
(1) The domestic industry to which the petitioner (1) The domestic industry to which the petitioner
belongs and the particular domestic product, commodity or belongs and the particular domestic product, commodity or
article or class of domestic product, commodity or article article or class of domestic product, commodity or article being
being prejudiced; prejudiced;
(2) The number of persons employed, the total capital (2) The number of persons employed, the total capital
invested, the production and sales volume, and the aggregate invested, the production and sales volume, and the aggregate
production capacity of the domestic industry that has been production capacity of the domestic industry that has been
materially injured or is threatened to be materially injured or materially injured or is threatened to be materially injured or
whose growth or establishment has been materially retarded whose growth or establishment has been materially retarded or
or prevented; prevented;
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(3) The name and address of the known importer, (3) The name and address of the known importer,
exporter, or foreign producer, the country of origin or export, exporter, or foreign producer, the country of origin or export,
the estimated aggregate or cumulative quantity, the port and the estimated aggregate or cumulative quantity, the port and
the date of arrival, the GOODS declaration of the imported the date of arrival, the import entry declaration of the imported
product, commodity or article, as well as the nature, the extent product, commodity or article, as well as the nature, the extent
and the estimated amount of the subsidy thereon; and and the estimated amount of the subsidy thereon; and
(4) Such other particulars, facts or allegations as are (4) Such other particulars, facts or allegations as are
necessary to justify the imposition of countervailing duty on necessary to justify the imposition of countervailing duty on the
the imported product, commodity or article. imported product, commodity or article.
A petition for the imposition of a countervailing duty shall be A petition for the imposition of a countervailing duty shall be
considered to have been made 'by or on behalf of the considered to have been made 'by or on behalf of the domestic
domestic industry' if it is supported by those domestic industry' if it is supported by those domestic producers whose
producers whose collective output constitutes more than fifty collective output constitutes more than fifty percent (50%) of
percent (50%) of the total production of the like product the total production of the like product produced by that portion
produced by that portion of the domestic industry expressing of the domestic industry expressing either support for or
either support for or opposition to the application. However, an opposition to the application. However, an investigation shall
investigation shall be initiated only when domestic producers be initiated only when domestic producers supporting the
supporting the application account for at least twenty-five application account for at least twenty five percent (25%) of the
percent (25%) of the total production of the like product total production of the like product produced by the domestic
produced by the domestic industry. In cases involving an industry. In cases involving an exceptionally large number of
exceptionally large number of producers, degree of support or producers, degree of support or opposition may be determined
opposition may be determined by using statistically valid by using statistically valid sampling techniques or by consulting
sampling techniques or by consulting their representative their representative organizations.
organizations.
Within ten (10) days from his receipt of the petition or
Within ten (10) days from his receipt of the petition or information, the Secretary shall review the accuracy and
information, the Secretary shall review the accuracy and adequacy of the information or evidence provided in the
adequacy of the information or evidence provided in the petition to determine whether there is sufficient basis to justify
petition to determine whether there is sufficient basis to justify the initiation of an investigation. If there is no sufficient basis to
the initiation of an investigation. If there is no sufficient basis justify the initiation of an investigation, the Secretary shall
to justify the initiation of an investigation, the Secretary shall dismiss the petition and shall properly notify the Secretary of
dismiss the petition and shall properly notify the Secretary of Finance, the Commissioner of Customs and other parties
Finance, the Commissioner of Customs and other parties concerned regarding such dismissal. The Secretary shall
concerned regarding such dismissal. The Secretary shall extend legal, technical and other assistance to the concerned
extend legal, technical and other assistance to the concerned domestic producers and their organizations at all stages of the
domestic producers and their organizations at all stages of the countervailing action.
countervailing action.
(C) Notice to the Secretary of Finance. Upon his
Notice to the Secretary of Finance. - Upon his receipt of the receipt of the petition, the Secretary shall, without delay,
101
petition, the Secretary shall, without delay, furnish the furnish the Secretary of Finance with a summary of the
Secretary of Finance with a summary of the essential facts of essential facts of the petition, and request the latter to
the petition, and request the latter to immediately inform the immediately inform the Commissioner of Customs regarding
Commissioner of Customs regarding such petition and to such petition and to instruct him to gather and secure all import
instruct him to gather and secure all import entries covering entries covering such allegedly subsidized product, commodity
such allegedly subsidized product, commodity or article or article without liquidation. The Commissioner of Customs
without liquidation. The Commissioner of Customs shall shall submit to the Secretary a complete report on the number,
submit to the Secretary a complete report on the number, volume, and value of the importation of the allegedly
volume, and value of the importation of the allegedly subsidized product, commodity or article within ten (10) days
subsidized product, commodity or article within ten (10) days from his receipt of the instruction from the Secretary of
from his receipt of the instruction from the Secretary of Finance, and to make similar additional reports every ten (10)
Finance, and to make similar additional reports every ten (10) days thereafter.
days thereafter.
(D) Notice to and Answer of Interested Parties. Within
Notice to and Answer of Interested Parties. - Within five (5) five (5) days from finding of the basis to initiate an
days from finding of the basis to initiate an investigation, the investigation, the Secretary shall notify all interested parties,
Secretary shall notify all interested parties, and shall furnish and shall furnish them with a copy of the petition and its
them with a copy of the petition and its annexes, if any. The annexes, if any. T he interested p arties s hall, not later than
interested parties shall, not later than thirty (30) days from thirty (30) days from their receipt o f t he notice, submit their
their receipt of the notice, submit their answer, including such answer, including such relevant evidence or information as is
relevant evidence or information as is reasonably available to reasonably available to them to controvert the allegations of
them to controvert the allegations of the petition. If they fail to the petition. If they fail to submit their answer, the Secretary
submit their answer, the Secretary shall make such shall make such preliminary determination of the case on the
preliminary determination of the case on the basis of the facts basis of the facts and/or information available.
and/or information available.
The Secretary shall avoid, unless a decision has been made to
The Secretary shall avoid, unless a decision has been made initiate an investigation, any publicizing of the petition.
to initiate an investigation, any publicizing of the petition. However, after receipt of a properly documented petition and
However, after receipt of a properly documented petition and before proceeding to initiate an investigation, he shall notify the
before proceeding to initiate an investigation, he shall notify government of the exporting country about the impending
the government of the exporting country about the impending investigation.
investigation.
(E) Preliminary Determination. Within twenty (20) days
Preliminary Determination. - Within twenty (20) days from his from his receipt of the answer of the interested parties, the
receipt of the answer of the interested parties, the Secretary Secretary shall, on the basis of the petition of the aggrieved
shall, on the basis of the petition of the aggrieved party and party and the answer of such interested parties and their
the answer of such interested parties and their respective respective supporting documents or information, make a
supporting documents or information, make a preliminary preliminary determination on whether or not a prima facie case
determination on whether or not a prima facie case exists for exists for the imposition of a provisional countervailing duty in
the imposition of a provisional countervailing duty in the form the form of a cash bond equal to the provisionally estimated
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of a cash bond equal to the provisionally estimated amount of amount of subsidy. Upon finding of a prima facie case, the
subsidy. Upon finding of a prima facie case, the Secretary Secretary shall immediately issue, through the Secretary of
shall immediately issue, through the Secretary of Finance, a Finance, a written instruction to the Commissioner of Customs
written instruction to the Commissioner of Customs to collect to collect the cash bond, in addition to the corresponding
the cash bond, in addition to the corresponding ordinary ordinary duties, taxes and other charges imposed by law on
duties, taxes and other charges imposed by law on such such product, commodity or article. The posting of a cash bond
product, commodity or article. The posting of a cash bond shall be required not earlier than sixty (60) days from the date
shall be required not earlier than sixty (60) days from the date of initiation of the investigation. The cash bond shall be
of initiation of the investigation. The cash bond shall be deposited with a government depository bank and shall be held
deposited with a government depository bank and shall be in trust for the respondent importer. The application of the cash
held in trust for the respondent importer. The application of bond shall not exceed four (4) months.
the cash bond shall not exceed four (4) months.
The Secretary shall immediately transmit his preliminary
The Secretary shall immediately transmit his preliminary findings together with the records of the case to the
findings together with the records of the case to the Commission for its formal investigation.
Commission for its formal investigation.
(F) Termination of Investigation by the Secretary or the
Termination of Investigation by the Secretary or the Commission. The Secretary or the Commission, as the case
Commission. - The Secretary or the Commission, as the case may be, shall motu proprio terminate the investigation at any
may be, shall motu proprio terminate the investigation at any stage of the proceedings if the amount of subsidy is de minimis
stage of the proceedings if the amount of subsidy is de as defined in existing international trade agreements of which
minimis as defined in existing international trade agreements the Republic of the Philippines is a party; or where the volume
of which the Republic of the Philippines is a party; or where of the subsidized imported product, commodity or article, actual
the volume of the subsidized imported product, commodity or or potential, or the injury is negligible.
article, actual or potential, or the injury is negligible.
(G) Formal Investigation by the Commission.
Formal Investigation by the Commission. - Immediately upon Immediately upon its receipt of the records of the case from the
its receipt of the records of the case from the Secretary, the Secretary, the Commission shall commence the formal
Commission shall commence the formal investigation and investigation and shall accordingly notify in writing all interested
shall accordingly notify in writing all interested parties and, in parties and, in addition, give public notice of such investigation
addition, give public notice of such investigation in two (2) in two (2) newspapers of general circulation.
newspapers of general circulation.
In the formal investigation, the Commission shall essentially
In the formal investigation, the Commission shall essentially determine:
determine:
(1) The nature and amount of the specific subsidy
(1) The nature and amount of the specific subsidy being enjoyed by the imported product, commodity or article in
being enjoyed by the imported product, commodity or article in question;
question;
(2) The presence and extent of the material injury or
(2) The presence and extent of the material injury or the threat thereof to, or the material retardation of the growth,
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the threat thereof to, or the material retardation of the growth, or the prevention of the establishment of, the affected domestic
or the prevention of the establishment of, the affected industry; and
domestic industry; and
(3) The existence of a causal relationship between the
(3) The existence of a causal relationship between the allegedly subsidized imported product, commodity or article
allegedly subsidized imported product, commodity or article and the material injury or threat thereof to, or the material
and the material injury or threat thereof to, or the material retardation of the growth, or the prevention of the
retardation of the growth, or the prevention of the establishment of, the affected domestic industry.
establishment of, the affected domestic industry.
The Commission is hereby authorized to require any interested
The Commission is hereby authorized to require any party to allow it access to, or otherwise provide, necessary
interested party to allow it access to, or otherwise provide, information to enable the Commission to expedite the
necessary information to enable the Commission to expedite investigation. In case any interested party refuses access to, or
the investigation. In case any interested party refuses access otherwise does not provide, necessary information within a
to, or otherwise does not provide, necessary information reasonable period of time or significantly impedes the
within a reasonable period of time or significantly impedes the investigation, a final determination shall be made on the basis
investigation, a final determination shall be made on the basis of the facts available.
of the facts available.
The formal investigation shall be conducted in a summary
The formal investigation shall be conducted in a summary manner. No dilatory tactics nor unnecessary or unjustified
manner. No dilatory tactics nor unnecessary or unjustified delays shall be allowed, and the technical rules or evidence s
delays shall be allowed, and the technical rules or evidence s hall not be applied strictly.
hall not be applied strictly.
(H) Determination of the Existence of Subsidy. A
Determination of the Existence of Subsidy. - A subsidy is subsidy is deemed to exist:
deemed to exist:
(1) When the government or any public body in the
(1) When the government or any public body in the country of origin or export of the imported product, commodity
country of origin or export of the imported product, commodity or article extends financial contribution to the producer,
or article extends financial contribution to the producer, manufacturer or exporter of such product, commodity or article
manufacturer or exporter of such product, commodity or in the form of:
article in the form of:
(a) Direct transfer of funds such as grants, loans or
(a) Direct transfer of funds such as grants, loans or equity infusion; or
equity infusion; or
(b) Potential direct transfer of funds or assumption of
(b) Potential direct transfer of funds or assumption of liabilities such as loan guarantees; or
liabilities such as loan guarantees; or
(c) Foregone or uncollected government revenue that
(c) Foregone or uncollected government revenue that is otherwise due from the producer, manufacturer o r exporter
is otherwise due from the producer, manufacturer o r exporter of the product, commodity or article: Provided, That the
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of the product, commodity or article: Provided, That the exemption of any exported product, commodity or article from
exemption of any exported product, commodity or article from duty or tax imposed on like product, commodity or article when
duty or tax imposed on like product, commodity or article destined for consumption in the country of origin and/or export
when destined for consumption in the country of origin and/or or the refunding of such duty or tax, shall not be deemed to
export or the refunding of such duty or tax, shall not be constitute a grant of a subsidy: Provided, further, That should a
deemed to constitute a grant of a subsidy: Provided, further, product, commodity or article be allowed drawback by the
That should a product, commodity or article be allowed country of origin or export, only the ascertained or estimated
drawback by the country of origin or export, only the amount by which the total amount of duties and/or internal
ascertained or estimated amount by which the total amount of revenue taxes was discounted or reduced, if any, shall
duties and/or internal revenue taxes was discounted or constitute a subsidy; or
reduced, if any, shall constitute a subsidy; or
(d) Provision of goods or services other than general
(d) Provision of goods or services other than general infrastructure; or
infrastructure; or
(e) Purchases of goods from the producer,
(e) Purchases of goods from the producer, manufacturer or exporter;
manufacturer or exporter; or
(f) Payments to a funding mechanism; or
(f) Payments to a funding mechanism; or
(g) Other financial contributions to a private body to
(g) Other financial contributions to a private body to carry out one or more of the activities mentioned in
carry out one or more of the activities mentioned in subparagraphs (a) to (0 above; or
subparagraphs (a) to (0 above; or
(h). Direct or indirect income or price support; and
(h). Direct or indirect income or price support; and
(2) When there is a benefit conferred.
(2) When there is a benefit conferred.
(I) Determination of Specific Subsidy. In the
Determination of Specific Subsidy. - In the determination of determination of whether or not a subsidy is specific, the
whether or not a subsidy is specific, the following principles following principles shall apply:
shall apply:
(1) Where the government or any public body in the
(1) Where the government or any public body in the country of origin or export of the imported product, commodity
country of origin or export of the imported product, commodity or article explicitly limits access to a subsidy to certain
or article explicitly limits access to a subsidy to certain enterprises, such subsidy shall be specific;
enterprises, such subsidy shall be specific;
(2) Where such government or public body through a
(2) Where such government or public body through a law or regulation establishes objective criteria and conditions
law or regulation establishes objective criteria and conditions governing the eligibility for, and the amount of, a subsidy,
governing the eligibility for, and the amount of, a subsidy, specificity shall not exist: Provided, That the eligibility is
specificity shall not exist: Provided, That the eligibility is automatic and that such criteria or conditions are strictly
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automatic and that such criteria or conditions are strictly adhered to. Objective criteria shall mean those which are
adhered to. Objective criteria shall mean those which are neutral, do not favor certain enterprises over others, and are
neutral, do not favor certain enterprises over others, and are economic in nature and horizontal in application, such as
economic in nature and horizontal in application, such as number of employees or size of enterprise;
number of employees or size of enterprise;
(3) In case a subsidy appears to be non specific
(3) In case a subsidy appears to be non-specific according to subparagraphs (1) and (2) above, but there are
according to subparagraphs (1) and (2) above, but there are reasons to believe that the subsidy may in fact be specific,
reasons to believe that the subsidy may in fact be specific, factors that may be considered are: use of a subsidy program
factors that may be considered are: use of a subsidy program by a limited number of certain enterprises for a relatively longer
by a limited number of certain enterprises for a relatively period; granting of disproportionately large amounts of subsidy
longer period; granting of disproportionately large amounts of to certain enterprises; and exercise of wide and unwarranted
subsidy to certain enterprises; and exercise of wide and discretion for granting a subsidy; and
unwarranted discretion for granting a subsidy; and
(4) A subsidy which is limited to certain enterprises
(4) A subsidy which is limited to certain enterprises located within a designated geographical region within the
located within a designated geographical region within the territory of the government or public body in the country of
territory of the government or public body in the country of origin or export shall be specific.
origin or export shall be specific.
(J) Determination of Injury. The presence and extent
Determination of Injury. - The presence and extent of material of material injury or threat thereof to a domestic industry, or the
injury or threat thereof to a domestic industry, or the material material retardation of the growth, or the prevention of the
retardation of the growth, or the prevention of the establishment of a nascent enterprise because of the
establishment of a nascent enterprise because of the subsidized imports, shall be determined by the Secretary or the
subsidized imports, shall be determined by the Secretary or Commission, as the case may be, on the basis of positive
the Commission, as the case may be, on the basis of positive evidence and shall require an objective examination of:
evidence and shall require an objective examination of:
(1) The volume of the subsidized imports, that is,
(1) The volume of the subsidized imports, that is, whether there has been a significant increase either absolute
whether there has been a significant increase either absolute or relative to production or consumption in the domestic
or relative to production or consumption in the domestic market;
market;
(2) The effect of the subsidized imports on prices in the
(2) The effect of the subsidized imports on prices in domestic market for the like product, commodity or article, that
the domestic market for the like product, commodity or article, is, whether there has been a significant price undercutting, or
that is, whether there has been a significant price whether the effect of such imports is otherwise to depress
undercutting, or whether the effect of such imports is prices to a significant degree or to prevent price increases,
otherwise to depress prices to a significant degree or to which otherwise would have occurred to a significant degree;
prevent price increases, which otherwise would have occurred
to a significant degree; (3) The effect of the subsidized imports on the domestic
producers of the like product, commodity or article, including an
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(3) The effect of the subsidized imports on the evaluation of all relevant economic factors and indices having a
domestic producers of the like product, commodity or article, bearing on the state of the domestic industry concerned, such
including an evaluation of all relevant economic factors and as, but not limited to, actual and potential decline in output,
indices having a bearing on the state of the domestic industry sales, market share, profits, productivity, return on
concerned, such as, but not limited to, actual and potential investments, or utilization of capacity; factors affecting
decline in output, sales, market share, profits, productivity, domestic prices; actual or potential negative effects on the
return on investments, or utilization of capacity; factors cash flow, inventories, employment, wages, growth, ability to
affecting domestic prices; actual or potential negative effects raise capital or investments and, in the case of agriculture,
on the cash flow, inventories, employment, wages, growth, whether there has been an increased burden on the support
ability to raise capital or investments and, in the case of programs of the national government; and
agriculture, whether there has been an increased burden on
the support programs of the national government; and (4) Factors other than the subsidized imports which at
the same time are injuring the domestic industry, such as:
(4) Factors other than the subsidized imports which at volumes and prices of non subsidized imports of the product,
the same time are injuring the domestic industry, such as: commodity or article in question; contraction in demand or
volumes and prices of non-subsidized imports of the product, changes in the patterns of consumption; trade restrictive
commodity or article in question; contraction in demand or practices of and competition between the foreign and domestic
changes in the patterns of consumption; trade restrictive producers; developments in technology and the export
practices of and competition between the foreign and performance and productivity of the domestic industry.
domestic producers; developments in technology and the
export performance and productivity of the domestic industry. In determining threat of material injury, the Secretary or the
Commission, as the case may be, shall decide on the basis of
In determining threat of material injury, the Secretary or the facts and not merely allegation, conjecture or remote
Commission, as the case may be, shall decide on the basis of possibility. The change in circumstances which would create a
facts and not merely allegation, conjecture or remote situation in which the subsidized imports would cause injury
possibility. The change in circumstances which would create a should be clearly foreseen and imminent considering such
situation in which the subsidized imports would cause injury relevant factors as:
should be clearly foreseen and imminent considering such
relevant factors as: (I) Nature of the subsidy in question and the trade
effects likely to arise therefrom;
(I) Nature of the subsidy in question and the trade
effects likely to arise therefrom; (2) Significant rate of increase of subsidized imports
into the domestic market indicating the likelihood of
(2) Significant rate of increase of subsidized imports substantially increased importations;
into the domestic market indicating the likelihood of
substantially increased importations; (3) Sufficient freely disposable, or an imminent
substantial increase in, capacity of the exporter of such
(3) Sufficient freely disposable, or an imminent subsidized imported product, commodity or article indicating
substantial increase in, capacity of the exporter of such the likelihood of substantially increased subsidized imports to
subsidized imported product, commodity or article indicating the domestic market, taking into account the availability of
the likelihood of substantially increased subsidized imports to
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the domestic market, taking into account the availability of other markets to absorb the additional exports;
other markets to absorb the additional exports;
(4) Whether these subsidized imports are entering at
(4) Whether these subsidized imports are entering at prices that will have a significant depressing or suppressing
prices that will have a significant depressing or suppressing effect on domestic prices, and will likely increase demand for
effect on domestic prices, and will likely increase demand for further imports; and
further imports; and
(5) Inventories of the product, commodity or article
(5) Inventories of the product, commodity or article being investigated.
being investigated.
In the case where the effect of the subsidized import will
In the case where the effect of the subsidized import will materially retard the growth or prevent the establishment of a
materially retard the growth or prevent the establishment of a domestic industry, information on employment, capital
domestic industry, information on employment, capital investments, production and sales, and production capacity of
investments, production and sales, and production capacity of said domestic industry can be augmented or substituted by
said domestic industry can be augmented or substituted by showing through a factual study, report or other data that an
showing through a factual study, report or other data that an industry which has potential to grow domestically is adversely
industry which has potential to grow domestically is adversely affected by the subsidized import. For this purpose, the
affected by the subsidized import. For this purpose, the Department of Trade and Industry for non agricultural products,
Department of Trade and Industry for non-agricultural and the Department of Agriculture for agricultural products,
products, and the Department of Agriculture for agricultural shall conduct continuing studies to identify and determine the
products, shall conduct continuing studies to identify and specific industries, whether locally existing or not, which have
determine the specific industries, whether locally existing or the potential to grow or to be established domestically and
not, which have the potential to grow or to be established whose growth or establishment will be retarded or prevented
domestically and whose growth or establishment will be by a subsidized import.
retarded or prevented by a subsidized import.
(K) Cumulation of Imports. When imports of products,
Cumulation of Imports. - When imports of products, commodities or articles from more than one (1) country are
commodities or articles from more than one (1) country are simultaneously the subject of an investigation for the imposition
simultaneously the subject of an investigation for the of a countervailing duty, the Secretary or the Commission, as
imposition of a countervailing duty, the Secretary or the the case may be, may cumulatively assess the effects of such
Commission, as the case may be, may cumulatively assess imports only if:
the effects of such imports only if:
(1) The amount of subsidization established in relation
(1) The amount of subsidization established in to the imports from each country is more than de minimis as
relation to the imports from each country is more than de defiridd in existing international trade agreements of which the
minimis as defind in existing international trade agreements of Republic of the Philippines is a party; and
which the Republic of the Philippines is a party;
(2) The volume of such imports from each country is
(2) The volume of such imports from each country is not negligible; and
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not negligible; and (3) A cumulative assessment of the effects of such
imports is warranted in the light of the conditions of competition
(3) A cumulative assessment of the effects of such between the imported products, commodities or articles, and
imports is warranted in the light of the conditions of the conditions of competition between the imported products,
competition between the imported products, commodities or commodities or articles and the like domestic products,
articles, and the conditions of competition between the commodities or articles.
imported products, commodities or articles and the like
domestic products, commodities or articles. (L) Public Notices and Consultation Proceedings. The
Secretary or the Commission, as the case may be, shall make
Public Notices and Consultation Proceedings. - The Secretary public notices and conduct consultation with the government of
or the Commission, as the case may be, shall make public the exporting country when:
notices and conduct consultation with the government of the
exporting country when: (1) Initiating an investigation;
(1) Initiating an investigation; (2) Concluding or suspending an investigation;
(2) Concluding or suspending an investigation; (3) Making a preliminary or final determination;
(3) Making a preliminary or final determination; (4) Making a decision to accept an undertaking or the
termination of an undertaking; and
(4) Making a decision to accept an undertaking or the
termination of an undertaking; and (5) Terminating a definitive countervailing duty.
(5) Terminating a definitive countervailing duty. (M) Voluntary Undertaking. When there is an offer from
any exporter of subsidized imports to revise its price, or where
Voluntary Undertaking. - When there is an offer from any the government of the exporting country agrees to eliminate or
exporter of subsidized imports to revise its price, or where the limit the subsidy or take other measures to that effect, the
government of the exporting country agrees to eliminate or Commission shall determine if the offer is acceptable and
limit the subsidy or take other measures to that effect, the make the necessary recommendation to the Secretary. If the
Commission shall determine if the offer is acceptable and undertaking is accepted, the Secretary may advise the
make the necessary recommendation to the Secretary. If the Commission to terminate, suspend or continue the
undertaking is accepted, the Secretary may advise the investigation. The Secretary may also advise the Commission
Commission to terminate, suspend or continue the to continue its investigation upon the request of the
investigation. The Secretary may also advise the Commission government of the exporting country. The voluntary
to continue its investigation upon the request of the undertaking shall lapse if there is a negative finding of the
government of the exporting country. The voluntary presence of a subsidy or material injury. In the event of a
undertaking shall lapse if there is a negative finding of the positive finding of subsidization and material injury, the
presence of a subsidy or material injury. In the event of a undertaking will continue, consistent with its terms and the
positive finding of subsidization and material injury, the provisions of this section.
undertaking will continue, consistent with its terms and the
(N) Final Determination and Submission of Report by
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provisions of this section. the Commission. The Commission shall complete the formal
investigation and submit a report of its findings to the Secretary
Final Determination and Submission of Report by the within one hundred twenty (120) days from receipt of the
Commission. - The Commission shall complete the formal records of the case: Provided, however, That it shall, before a
investigation and submit a report of its findings to the final determination is made, inform all the interested parties of
Secretary within one hundred twenty (120) days from receipt the essential facts under consideration which form the basis for
of the records of the case: Provided, however, That it shall, the decision to impose a countervailing duty. Such disclosure
before a final determination is made, inform all the interested should take place in sufficient time for the parties to defend
parties of the essential facts under consideration which form their interests.
the basis for the decision to impose a countervailing duty.
Such disclosure should take place in sufficient time for the (O) Imposition of Countervailing Duty. The Secretary
parties to defend their interests. shall, within ten (10) days from his receipt of an affirmative final
determination by the Commission, issue a department order
Imposition of Countervailing Duty. - The Secretary shall, within imposing the countervailing duty on the subsidized imported
ten (10) days from his receipt of an affirmative final product, commodity or article. He shall furnish the Secretary of
determination by the Commission, issue a department order Finance with the copy of the order and request the latter to
imposing the countervailing duty on the subsidized imported direct the Commissioner of Customs to cause the
product, commodity or article. He shall furnish the Secretary countervailing duty to be levied, collected and paid, in addition
of Finance with the copy of the order and request the latter to to any other duties, taxes and charges imposed by law on such
direct the Commissioner of Customs to cause the product, commodity or article.
countervailing duty to be levied, collected and paid, in addition
to any other duties, taxes and charges imposed by law on In case of an affirmative final determination by the
such product, commodity or article. Commission, the cash bond shall be applied to the
countervailing duty assessed. If the cash bond is in excess of
In case of an affirmative final determination by the the countervailing duty assessed, the remainder shall be
Commission, the cash bond shall be applied to the returned to the importer immediately: Provided, That no
countervailing duty assessed. If the cash bond is in excess of interest shall be payable by the government on the amount to
the countervailing duty assessed, the remainder shall be be returned. If the cash bond is less than the countervailing
returned to the importer immediately: Provided, That no duty assessed, the difference shall not be collected.
interest shall be payable by the government on the amount to
be returned. If the cash bond is less than the countervailing If the order of the Secretary is unfavorable to the petitioner, the
duty assessed, the difference shall not be collected. Secretary shall, after the lapse of the period for appeal to the
Court of Tax Appeals, issue through the Secretary of Finance a
If the order of the Secretary is unfavorable to the petitioner, department order for the immediate release of the cash bond to
the Secretary shall, after the lapse of the period for appeal to the importer.
the Court of Tax Appeals, issue through the Secretary of
Finance a department order for the immediate release of the (P) Duration and Review of Countervailing Duty. As a
cash bond to the importer. general rule, any imposition of countervailing duty shall remain
in force only as long as and to the extent necessary to
Duration and Review of Countervailing Duty. As a general counteract a subsidization which is causing or threatening to
rule, any imposition of countervailing duty shall remain in force cause material injury. However, the need for the continued
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only as long as and to the extent necessary to counteract a imposition of the countervailing duty may be reviewed by the
subsidization which is causing or threatening to cause Commission when warranted, motu proprio or upon direction of
material injury. However, the need for the continued the Secretary.
imposition of the countervailing duty may be reviewed by the
Commission when warranted, motu proprio or upon direction Any interested party may also petition the Secretary for a
of the Secretary. review of the continued imposition of the countervailing duty:
Provided, That at least six (6) months have elapsed since the
Any interested party may also petition the Secretary for a imposition of the countervailing duty, and upon submission of
review of the continued imposition of the countervailing duty: positive information substantiating the need for a review.
Provided, That at least six (6) months have elapsed since the Interested parties may request the Secretary to examine: (1)
imposition of the countervailing duty, and upon submission of whether the continued imposition of the countervailing duty is
positive information substantiating the need for a review. necessary to offset the subsidization; and/or (2) whether the
Interested parties may request the Secretary to examine: (1) injury will likely continue or recur if the countervailing duty is
whether the continued imposition of the countervailing duty is removed or modified.
necessary to offset the subsidization; and/or (2) whether the
injury will likely continue or recur if the countervailing duty is If the Commission determines that the countervailing duty is no
removed or modified. longer necessary or warranted, the Secretary shall, upon its
recommendation, immediately issue a department order
If the Commission determines that the countervailing duty is terminating the imposition of the countervailing duty and shall
no longer necessary or warranted, the Secretary shall, upon notify all parties concerned, including the Commissioner of
its recommendation, immediately issue a department order Customs through the Secretary of Finance, of such
terminating the imposition of the countervailing duty and shall termination.
notify all parties concerned, including the Commissioner of
Customs through the Secretary of Finance, of such Notwithstanding the provisions of the preceding paragraphs of
termination. this subsection, any countervailing duty shall be terminated on
a date not later than five (5) years from the date of its
Notwithstanding the provisions of the preceding paragraphs of imposition (or from the date of the most recent review if that
this subsection, any countervailing duty shall be terminated on review has covered both subsidization and material injury),
a date not later than five (5) years from the date of its unless the Commission has determined, in a review initiated at
imposition (or from the date of the most recent review if that least six (6) months prior to the termination date upon the
review has covered both subsidization and material injury), direction of the Secretary or upon a duly substantiated request
unless the Commission has determined, in a review initiated by or on behalf of the domestic industry, that the termination of
at least six (6) months prior to the termination date upon the the countervailing duty will likely lead to the continuation or
direction of the Secretary or upon a duly substantiated request recurrence of the subsidization and material injury.
by or on behalf of the domestic industry, that the termination
of the countervailing duty will likely lead to the continuation or The procedure and evidence governing the disposition of the
recurrence of the subsidization and material injury. petition for the imposition of countervailing duty shall equally
apply to any review carried out under this subsection. Such
The procedure and evidence governing the disposition of the review shall be carried out expeditiously and shall be
petition for the imposition of countervailing duty shall equally concluded not later than ninety (90) days from the date of the
apply to any review carried out under this subsection. Such
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review shall be carried out expeditiously and shall be initiation of such a review.
concluded not later than ninety (90) days from the date of the
initiation of such a review. (Q) Judicial Review. Any interested party who is
adversely affected by the department order of the Secretary on
Judicial Review. - Any interested party who is adversely the imposition of the countervailing duty may file with the Court
affected by the department order of the Secretary on the of Tax Appeals a petition for review of such order within thirty
imposition of the countervailing duty may file with the Court of (30) days from his receipt of notice thereof: Provided, however,
Tax Appeals a petition for review of such order within thirty That the filing of such petition for review shall not in any way
(30) days from his receipt of notice thereof: Provided, stop, suspend or otherwise toll the imposition and collection of
however, That the filing of such petition for review shall not in the countervailing duty on the imported product, commodity or
any way stop, suspend or otherwise toll the imposition and article.
collection of the countervailing duty on the imported product,
commodity or article. The petition for review shall comply with the same
requirements, follow the same rules of procedure, and be
The petition for review shall comply with the same subject to the same disposition as in appeals in connection
requirements, follow the same rules of procedure, and be with adverse rulings on tax matters to the Court of Tax
subject to the same disposition as in appeals in connection Appeals.
with adverse rulings on tax matters to the Court of Tax
Appeals. (R) Definition of Terms. For purposes of this
subsection, the term:
Definition of Terms. - For purposes of this subsection, the
term: (1) 'Domestic industry' shall refer to the domestic producers as
a whole of the like product, commodity or article or to those of
(1) 'Domestic industry' shall refer to the domestic producers them whose collective output of the product, commodity or
as a whole of the like product, commodity or article or to those article constitutes a major proportion of the total d domestic
of them whose collective output of the product, commodity or production of those products, except that when producers a re
article constitutes a major proportion of the total domestic related to the exporters or importers or are themselves
production of those products, except that when producers are importers of the allegedly subsidized product or a like product
related to the exporters or importers or are themselves from other countries, the term 'domestic industry' may be
importers of the allegedly subsidized product or a like product interpreted as referring to the rest of the producers. In case the
from other countries, the term 'domestic industry' may be market in the Philippines is divided into two or more
interpreted as referring to the rest of the producers. In case competitive markets, the term 'domestic industry' shall refer to
the market in the Philippines is divided into two or more the producers within each market although their production
competitive markets, the term 'domestic industry' shall refer to does not constitute a significant portion of the total domestic
the producers within each market although their production industry: Provided, That there is a concentration of subsidized
does not constitute a significant portion of the total domestic imports into such a separate market: and Provided, further,
industry: Provided, That there is a concentration of subsidized That the subsidized imports are causing injury to the producers
imports into such a separate market: and Provided, further, of all or almost all of the production within such market.
That the subsidized imports are causing injury to the
producers of all or almost all of the production within such (2) 'Interested parties' shall include:
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market. (a) An exporter or foreign producer or the importer of a
product subject to investigation, or the government of the
(2) 'Interested parties' shall include: exporting country or a trade or business association a majority
of the members of which are producers, exporters or importers
(a) An exporter or foreign producer or the importer of a of such product;
product subject to investigation, or the government of the
exporting country or a trade or business association a majority (b) A producer of the like product in the Philippines or
of the members of which are producers, exporters or a trade and business association a majority of the members of
importers of such product; which produce the like product in the Philippines; and
(b) A producer of the like product in the Philippines or (c) Labor unions that are representative of the industry
a trade and business association a majority of the members of or coalitions of producers and/or labor unions.
which produce the like product in the Philippines; and
(3) 'Like product' shall mean a product, commodity or
(c) Labor unions that are representative of the article which is identical, i.e., alike in all respects to the product,
industry or coalitions of producers and/or labor unions. commodity or article or in the absence of such product,
commodity or article, another product, commodity or article
which, although not alike in all respects, has characteristics
closely resembling those of the imported product, commodity
(3) 'Like product' shall mean a product, commodity or
or article under consideration.
article which is identical, i.e., alike in all respects to the
product, commodity or article or in the absence of such An inter agency committee composed of the Secretaries of
product, commodity or article, another product, commodity or Trade and Industry, Agriculture, and Finance, the Chairman of
article which, although not alike in all respects, has the Tariff Commission, and the Commissioner of Customs shall
characteristics closely resembling those of the imported promulgate all rules and regulations necessary for the effective
product, commodity or article under consideration. implementation of this section. (As amended by Republic Act
No. 8751 dated 07 August 1999)
An inter-agency committee composed of the Secretaries of
Trade and Industry, Agriculture, and Finance, the Chairman of
the Tariff Commission, and the Commissioner of Customs
shall promulgate all rules and regulations necessary for the
effective implementation of this section.
SEC. 707. Special Duty Discrimination by Foreign Sec. 304 Discrimination by Foreign Countries. En toto
Countries.
a. The President. when he finds that the public interest
a. The President, when he finds that the public will be served thereby, shall by proclamation specify and
interest will be served thereby, shall by proclamation specify declare new or additional duties in an amount not exceeding
and declare new or additional duties in an amount not one hundred (100) per cent ad valorem upon articles wholly or
exceeding one hundred (100) per cent ad valorem upon in part the growth or product of, or imported in a vessel of, any
articles wholly or in part the growth or product of, or imported foreign country whenever he shall find as a fact that such
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in a vessel of, any foreign country whenever he shall find as a country
fact that such country
1. Imposes, directly or indirectly, upon the disposition
1 Imposes, directly or indirectly, upon the disposition or transportation in transit through or re exportation from such
or transportation in transit through or re-exportation from such country of any article wholly or in part the growth or product of
country of any article wholly or in part the growth or product of the Philippines, any unreasonable charge, exaction, regulation
the Philippines, any unreasonable charge, exaction, regulation or limitation which is not equally enforced upon the like articles
or limitation which is not equally enforced upon the like of every foreign country; or
articles of every foreign country; or
2. Discriminates in fact against the commerce of the
2. Discriminates in fact against the commerce of the Philippines, directly or indirectly, by law or administrative
Philippines, directly or indirectly, by law or administrative regulation or practice, by or in respect to any customs,
regulation or practice, by or in respect to any customs, tonnage, or port duty, fee, charge, exaction, classification,
tonnage, or port duty, fee, charge, exaction, classification, regulation, condition, restriction or prohibition, in such manner
regulation, condition, restriction or prohibition, in such manner as to place the commerce of the Philippines at a disadvantage
as to place the commerce of the Philippines at a disadvantage compared with the commerce of any foreign country.
compared with the commerce of any foreign country.
b. If at any time the President shall find it to be a fact
b. If at any time the President shall find it to be a fact that any foreign country has not only discriminated against the
that any foreign country has not only discriminated against the commerce of the Philippines, as aforesaid, but has, after the
commerce of the Philippines, as aforesaid, but has, after the issuance of a proclamation as authorized in subsection "a" of
issuance of a proclamation as authorized in subsection "a" of this section, maintained or increased its said discrimination
this section, maintained or increased its said discrimination against the commerce of the Philippines, the President is
against the commerce of the Philippines, the President is hereby authorized, if he deems it consistent with the interests
hereby authorized, if he deems it consistent with the interests of the Philippines, to issue a further proclamation directing that
of the Philippines, to issue a further proclamation directing such product of said country or such article imported in its
that such product of said country or such article imported in its vessels as he shall deem consistent with the public interests,
vessels as he shall deem consistent with the public interests, shall be excluded from importation into the Philippines.
shall be excluded from importation into the Philippines.
c. Any proclamation issued by the President under this
c. Any proclamation issued by the President under section shall, if he deems it consistent with the interest of the
this section shall, if he deems it consistent with the interest of Philippines, extend to the whole of any foreign country or may
the Philippines, extend to the whole of any foreign country or be confined to any subdivision or subdivisions thereof; and the
may be confined to any subdivision or subdivisions thereof; President shall, whenever he deems the public interests
and the President shall, whenever he deems the public require, suspend, revoke, supplement or amend any such
interests require, suspend, revoke, supplement or amend any proclamation.
such proclamation.
d. All articles imported contrary to the provisions of
d. All articles imported contrary to the provisions of this section shall be forfeited to the Government of the
this section shall be forfeited to the Government of the Philippines and shall be liable to be seized, prosecuted and
Philippines and shall be liable to be seized, prosecuted and condemned in like manner and under the same regulations,
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condemned in like manner and under the same regulations, restrictions and provisions as may from time to time be
restrictions and provisions as may from time to time be established for the recovery, collection, distribution and
established for the recovery, collection, distribution and remission or forfeiture to the government by the tariff and
remission or forfeiture to the government by the tariff and customs laws. Whenever the provision of this section shall be
customs laws. Whenever the provision of this section shall be applicable to importations into the Philippines of articles wholly
applicable to importations into the Philippines of articles or in part the growth or product of any foreign country, they
wholly or in part the growth or product of any foreign country, shall be applicable thereto, whether such articles are imported
they shall be applicable thereto, whether such articles are directly or indirectly.
imported directly or indirectly.
e. It shall be the duty of the Commission to ascertain
e. It shall be the duty of the Commission to ascertain and at all times to be informed whether any of the
and at all times to be informed whether any of the discriminations against the commerce of the Philippines
discriminations against the commerce of the Philippines enumerated in subsections "a" and "b" of this section are
enumerated in subsections "a" and "b" of this section are practiced by any country; and if and when such discriminatory
practiced by any country; and if and when such discriminatory acts are disclosed, it shall be the duty of the Commission to
acts are disclosed, it shall be the duty of the Commission to bring the matter to the attention of the President, together with
bring the matter to the attention of the President, together with recommendations.
recommendations.
f. The Secretary of Finance shall make such rules and
f. The Secretary of Finance shall make such rules regulations as are necessary for the execution of such
and regulations as are necessary for the execution of such proclamation as the President may issue in accordance with
proclamation as the President may issue in accordance with the provisions of this section.
the provisions of this section.
TITLE 8. TAX AND DUTY DEFERMENT, PREFERENCE

AND EXEMPTION
CHAPTER 1. CONDITIONALLY FREE IMPORTATION
SEC. 800. Conditionally-Free Importation SECTION 105. Conditionally-Free Importations. RKC Specific Annex F Chapter 1 Standard Provision is amended setting the
2 threshold amount of security for
The following articles shall be exempt from the payment of The following articles shall be exempt from the payment of conditionally free imports at 100
import duties upon compliance with the formalities prescribed import duties upon compliance with the formalities prescribe in, 2. Standard percent of potential liability for duties
in, the regulations which shall be promulgated by the or with, the regulations which shall be promulgated by the and taxes to be in line with the RKC
Commissioner of Customs with the approval of the Secretary Commissioner of Customs with the approval of the Secretary of Goods admitted for inward processing standard on guaranty amount limit.
of Finance; Provided, That any article sold, bartered, hired or Finance; Provided, That any article sold, bartered, hired or shall be afforded total conditional relief Also introduced is outward
used for purposes other than that they were intended for used for purposes other than that they were intended for from import duties and taxes. However, processing in Sub section y which is
without prior payment of the duty, tax or other charges which without prior payment of the duty, tax or other charges which import duties and taxes may be collected included in the RKC standard for
would have been due and payable at the time of entry if the would have been due and payable at the time of entry if the on any products, including waste, deriving conditionally free imports. Amount of
article had been entered without the benefit of this section, article had been entered without the benefit of this section, from the processing or manufacturing of privilege for personal effects etc is
shall be subject to forfeiture and the importation shall shall be subject to forfeiture and the importation shall goods admitted for inward processing that raised to PHP50,000 from PHP10,000
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constitute a fraudulent practice against customs laws; constitute a fraudulent practice against customs revenue are not exported or treated in such a way keep up with present economic
Provided, further, That a sale pursuant to a judicial order or in punishable under Section Thirty six hundred and two, as as to render them commercially conditions.
liquidation of the estate of a deceased person shall not be amended, of this Code; Provided, further, That a sale pursuant
subject to the preceding proviso, without prejudice to the to a judicial order or in liquidation of the estate of a deceased
payment of duties, taxes and other charges; Provided, finally, person shall not be subject to the preceding proviso, without
That the President may upon recommendation of the prejudice to the payment of duties, taxes and other charges; RKC GA Standards 5.4 and 5.6
Secretary of Finance, suspend, disallow or completely Provided, finally, That the President may upon
5.4. Standard
withdraw, in whole or in part, any of the conditionally-free recommendation of the Secretary of Finance, suspend,
importation under this section: disallow or completely withdraw, in whole or in part, any of the Where national legislation provides, the
conditionally free importation under this section: Customs shall not require security when
Aquatic products (e.g., fishes, crustaceans, mollusks, marine
they are satisfied that an obligation to the
animals, seaweeds, fish oil, roe), caught or gathered by a. Aquatic products (e.g., fishes, crustaceans,
Customs will be fulfilled.
fishing vessels of Philippine registry: Provided, That they are mollusks, marine animals, seaweeds, fish oil, roe), caught or
imported in such vessels or in crafts attached thereto: And gathered by fishing vessels of Philippine registry: Provided,
provided, further, That they have not been landed in any That they are imported in such vessels or in crafts attached
foreign territory or, if so landed, they have been landed solely thereto: And provided, further, That they have not been landed 5.6. Standard
for transshipment without having been advanced in condition; in any foreign territory or, if so landed, they have been landed
solely for transshipment without having been advanced in Where security is required, the amount of
Equipment for use in the salvage of vessels or aircrafts, not condition; security to be provided shall be as low as
available locally, upon identification and the giving of a bond possible and, in respect of the payment of
in an amount equal to ONE HUNDRED PERCENT the b. Equipment for use in the salvage of vessels or duties and taxes, shall not exceed the
ascertained duties, taxes and other charges thereon, aircrafts, not available locally, upon identification and the giving amount potentially chargeable.
conditioned for the exportation thereof or payment of of a bond in an amount equal to one and one half times the
corresponding duties, taxes and other charges within six (6) ascertained duties, taxes and other charges thereon, RKC Specific Annex B, Chapter 3
months from the date of acceptance of the import entry: conditioned for the exportation thereof or payment of
Provided, That the Collector of Customs may extend the time corresponding duties, taxes and other charges within six (6) 2. Standard
for exportation or payment of duties, taxes and other charges months from the date of acceptance of the import entry:
for a term not exceeding six (6) months from the expiration of Provided, That the Collector of Customs may extend the time National legislation shall enumerate the
the original period; for exportation or payment of duties, taxes and other charges cases in which relief from import duties
for a term not exceeding six (6) months from the expiration of and taxes is granted.
Cost of repairs, excluding the value of the article used, made the original period;
in foreign countries upon vessels or aircraft documented,
registered or licensed in the Philippines, upon proof c. Cost of repairs, excluding the value of the article
3. Standard
satisfactory to the Collector of Customs (1) that adequate used, made in foreign countries upon vessels or aircraft
facilities for such repairs are not afforded in the Philippines, or documented, registered or licensed in the Philippines, upon
Relief from import duties and taxes shall
(2) that such vessels or aircrafts, while in the regular course of proof satisfactory to the Collector of Customs (1) that adequate
not be limited to goods imported directly
her voyage or flight, was compelled by stress of weather or facilities for such repairs are not afforded in the Philippines, or
from abroad but shall also be granted for
other casualty to put into a foreign port to make such & repairs (2) that such vessels or aircrafts, while in the regular course of
goods already placed under another
in order to secure the safety, seaworthiness or airworthiness her voyage or flight, was compelled by stress of weather or
Customs procedure.
of the vessel or aircraft to enable her to reach her port of other casualty to put into a foreign port to make such & repairs
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destination; in order to secure the safety, seaworthiness or airworthiness of 4. Recommended Practice
the vessel or aircraft to enable her to reach her port of
Articles brought into the Philippines for repair, processing or destination; Relief from import duties and taxes should
reconditioning to be re-exported upon completion of the be granted without regard to the country of
repair, processing or reconditioning: Provided, That the d. Articles brought into the Philippines for repair, origin of the goods or the country from
Collector of Customs shall require the giving of a bond in an processing or reconditioning to be re exported upon completion which they arrived, except where an
amount equal ONE HUNDRED PERCENT the ascertained of the repair, processing or reconditioning: Provided, That the international instrument provides for
duties, taxes and other charges thereon, conditioned for the Collector of Customs shall require the giving of a bond in an reciprocity.
exportation thereof or payment of the corresponding duties, amount equal to one and one half times the ascertained duties,
taxes and other charges within six (6) months from the date of taxes and other charges thereon, conditioned for the
acceptance of the GOODS DECLARATION; exportation thereof or payment of the corresponding duties,
taxes and other charges within six (6) months from the date of 5. Standard
Medals, badges, cups and other small articles bestowed as acceptance of the import entry ,
trophies or prizes, or those received or accepted as honorary National legislation sh all enumerate the
distinction; e. Medals, badges, cups and other small articles cases in which prior authorization is
bestowed as trophies or prizes, or those received or accepted required for relief from import duties and
Personal and household effects belonging to residents of the as honorary distinction; taxes and specify the authorities
Philippines returning from abroad including jewelry, precious empowered to grant such authorization.
stones and other articles of luxury which were formally f. Personal and household effects belonging to Such cases shall be as few as possible.
declared and listed before departure and identified under oath residents of the Philippines returning from abroad including
before the Collector of Customs when exported from the jewelry, precious stones and other articles of luxury which were 6. Recommended Practice
Philippines by such returning residents upon their departure formally declared and listed before departure and identified
Contracting Parties should consider
therefrom or during their stay abroad; personal and household under oath before the Collector of Customs when exported
granting relief from import duties and taxes
effects including wearing apparel, articles of personal from the Philippines by such returning residents upon their
for goods specified in international
adornment (except luxury items), toilet articles, instruments departure therefrom or during their stay abroad; personal and
instruments under the conditions laid down
related to one's profession and analogous personal or household effects including wearing apparel, articles of
therein, and also give careful
household effects, excluding vehicles, watercrafts, aircrafts, personal adornment (except luxury items), toilet articles,
consideration to the possibility of acceding
and animals purchased in foreign countries by residents of the instruments related to one's profession and analogous
to those international instruments.
Philippines which were necessary, appropriate and normally personal or household effects, excluding vehicles, watercrafts,
used for their comfort and convenience during their stay aircrafts, and animals purchased in foreign countries by
abroad, accompanying them on their return, or arriving within residents of the Philippines which were necessary, appropriate
a reasonable time which, barring unforeseen and fortuitous and normally used for their comfort and convenience during 7. Recommended Practice
events, in no case shall exceed sixty (60) days after the their stay abroad, accompanying them on their return, or
owner's return: Provided, That the personal and household arriving within a reasonable time which, barring unforeseen Relief from import duties and taxes and
effects shall neither be in commercial quantities nor intended and fortuitous events, in no case shall exceed sixty (60) days from economic prohibitions and
for barter, sale or for hire and that the total dutiable value of after the owner's return: Provided, That the personal and restrictions should be granted in respect of
which shall not exceed FIFTY Thousand Pesos (P50,000.00): household effects shall neither be in commercial quantities nor the following goods under the conditions
Provided further, That the returning resident has not intended for barter, sale o r h ire and t hat t he total dutiable specified, and provided that any other
previously availed of the privilege under this section within value o f which s hall not exceed Ten Thousand Pesos (P requirements set out in national legislation
three hundred sixty-five (365) days prior to his arrival: 10,000.00): Provided further, That the returning resident has
117
Provided, finally, That a fifty per cent (50%) ad valorem duty not previously availed of the privilege under this section within for such relief are complied with:
across the board shall be levied and collected on the personal three hundred sixty five (365) days prior to his arrival:
and household effects (except luxury items) in excess of Provided, finally, That a fifty per cent (50%) ad valorem duty a. therapeutic substances of
FIFTY Thousand Pesos (50,000.00). For purposes of this across the board shall be levied and collected on the personal human origin, blood grouping and tissue
section, the phrase "returning residents" shall refer to and household effects (except luxury items) in excess of Ten typing reagents, where they are consigned
nationals who have stayed in a foreign country for a period of Thousand Pesos (P10,000.00). For purposes of this section, to institutions or laboratories approved by
at least six (6) months. the phrase "returning residents" shall refer to nationals who the competent authorities;
have stayed in a foreign country for a period of at least six (6)
f-1. In addition to the privilege granted under the immediately months.
preceding paragraph, returning overseas contract workers
shall have the privilege to bring in, duty and tax free, used f-1. In addition to the privilege granted under the immediately b. samples of no commercial
home appliances, limited to one of every kind once in a given preceding paragraph, returning overseas contract workers shall value which are regarded by the Customs
calendar year accompanying them on their return, or arriving have the privilege to bring in, duty and tax free, used home to be of negligible value and which are to
within a reasonable time which, barring unforeseen and appliances, limited to one of every kind once in a given be used only for soliciting orders for goods
fortuitous events, in no case shall exceed sixty (60) days after calendar year accompanying them on their return, or arriving of the kind they represent;
the owner's return upon presentation of their original passport within a reasonable time which, barring unforeseen and
at the Port of Entry: Provided, That any excess of FIFTY fortuitous events, in no case shall exceed sixty (60) days after
Thousand Pesos (P50,000.00) for personal and household the owner's return upon presentation of their original passport c. removable articles other than
effects and/or of the number of duty and tax-free appliances at the Port of Entry: Provided, That any excess of Ten industrial, commercial or agricultural plant
as provided for under this section, shall be subject to the Thousand Pesos (P10,000.00) for personal and household or equipment, intended for the personal
corresponding duties and taxes provided under this Code. For effects and/or of the number of duty and tax-free appliances as and professional use of a person or
purposes of this section, the following words/phrases shall be provided for under this section, shall be subject to the members of his family which are brought
understood to mean: (a) Overseas Contract Workers corresponding duties and taxes provided under this Code. For into the country with that person or
Holders of Valid passports duly issued by the Department of purposes of this section, the following words/phrases shall be separately for the purpose of removal of
Foreign Affairs and Certified by the Department of Labor and understood to mean: (a) Overseas Contract Workers Holders his residence to the country;
Employment/Philippine Overseas Employment Agency for of Valid passports duly issued by the Department of Foreign
overseas employment purposes. It covers all nationals Affairs and Certified by the Department of Labor and
working in a foreign country under employment contracts Employment/Philippine Overseas Employment Agency for
including Middle East Contract Workers, entertainers, overseas employment purposes. It covers all nationals working d. effects inherited by a person
domestic helpers, regardless of their employment status in the in a foreign country under employment contracts including who, at the time of the death of t he
foreign country. (b) Calendar Year shall cover the period Middle East Contract Workers, entertainers, domestic helpers, deceased, has his principal residence in
from January 1 to December 31. regardless of their employment status in the foreign country. the country of importation and provided
(b) Calendar Year shall cover the period from January 1 to that such personal effects were for the
Wearing apparel, articles of personal adornment, toilet December 31. personal use of the deceased;
articles, portable tools and instrument. theatrical costumes
and similar effects accompanying travelers, or tourists, or g. Wearing apparel, articles of personal adornment,
arriving within a reasonable time before or after their arrival in toilet articles, portable tools and instrument. theatrical
the Philippines, which are necessary and appropriate for the costumes and similar effects accompanying travelers, or e. personal gifts, excluding
wear and use of such persons according to the nature of the tourists, or arriving within a reasonable time before or after alcohol, alcoholic beverages and tobacco
journey, their comfort and convenience: Provided, That this their arrival in the Philippines, which are necessary and goods, not exceeding a total value to be
118
exemption shall not apply to articles intended for other appropriate for the wear and use of such persons according to specified in national legislation on the
persons or for barter, sale or hire: Provided, further, That the the nature of the journey, their comfort and convenience: basis of retail value;
Collector of Customs may. in his discretion, require either a Provided, That this exemption shall not apply to articles
written commitment o r a bond in an amount equal to ONE intended for other persons or for barter, sale or hire: Provided,
HUNDRED PERCENT the ascertained duties, taxes and further, That the Collector of Customs may. in his discretion,
other charges conditioned for the exportation thereof or require either a written commitment o r a bond i n a n a mount f. goods such as foodstuffs,
payment of the corresponding duties, taxes and other charges equal to one and one half times the ascertained duties, taxes medicaments, clothing and blankets sent
within three (3) months from the date of acceptance of the and other charges conditioned for the exportation thereof or as gifts to an approved charitable or
GOODS DECLARATION: And Provided, finally, That the payment of the corresponding duties, taxes and other charges philanthropic organization for distribution
Collector of Customs may extend the time for exportation or within three (3) months from the date of acceptance of the free of charge to needy persons by the
payment of duties, taxes and other charges for a term not import entry: And Provided, finally, That t he Collector o f organization or under its control;
exceeding three (3) months from the expiration of the original Customs may extend the time for exportation or payment of
period; duties, taxes and other charges for a term not exceeding three
(3) months from the expiration of the original period; g. awards to persons resident in
g-1. Personal and household effects and vehicles belonging
the country of importation subject to the
to foreign consultants and experts hired by, and/or rendering g-1 Personal and household effects and vehicles belonging to
production of any supporting documents
service to, the government, and their staff or personnel and foreign consultants and experts hired by, and/or rendering
required by the Customs;
families, accompanying them or arriving within a reasonable service to, the government, and their staff or personnel and
time before or after their arrival in the Philippines, in quantities families, accompanying them or arriving within a reasonable
and of the kind necessary and suitable to the profession, rank time before or after their arrival in the Philippines, in quantities
or position of the person importing them, for their own use and and of the kind necessary and suitable to the profession, rank h. materials for the construction,
not for barter, sale or hire provided that, the Collector of or position of the person importing them, for their own use and upkeep or ornamentation of m ilitary
Customs may in his discretion require either a written not for barter, sale or hire provided that, the Collector of cemeteries; coffins, funerary urns and
commitment or a bond in an amount equal to ONE HUNDRED Customs may in his discretion require either a written ornamental funerary articles imported by
PERCENT the ascertained duties, taxes and other charges commitment or a bond in an amount equal to one and one half organizations approved by the competent
upon the articles classified under this subsection; conditioned times the ascertained duties, taxes and other charges upon the authorities;
for the exportation thereof or payment of the corresponding articles classified under this subsection; conditioned for the
duties, taxes and other charges within six (6) months after the exportation thereof or payment of the corresponding duties,
expiration of their term or contract; And Provided, finally, That taxes and other charges within six (6) months after the
the Collector of Customs may extend the time for exportation expiration of their term or contract; And Provided, finally, That i. documents, forms, publications,
or payment of duties, taxes and other charges for term not the Collector of Customs may extend the time for exportation reports and other articles of no commercial
exceeding six (6) months from the expiration of the original or payment of duties, taxes and other charges for term not value specified in national legislation;
period; exceeding six (6) months from the expiration of the original
period;
h. Professional instruments and implements, tools of j. religious objects used for

Professional instruments and implements, tools of trade, trade, occupation or employment, wearing apparel, domestic worship; and
occupation or employment, wearing apparel, domestic animals, and personal and household effects belonging to
animals, and personal and household effects belonging to persons coming to settle in the Philippines or Filipinos and/or
persons coming to settle in the Philippines or Filipinos and/or their families and descendants who are now residents or
k. products imported for testing,
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their families and descendants who are now residents or citizens of other countries, such parties hereinafter referred to provided that the quantities imported do
citizens of other countries, such parties hereinafter referred to as Overseas Filipinos, in quantities and of the class suitable to not exceed those strictly necessary for
as Overseas Filipinos, in quantities and of the class suitable to the profession, rank or position of the persons importing them, testing, and that the products are used up
the profession, rank or position of the persons importing them, for their own use and not for barter or sale, accompanying such during testing or that remaining products
for their own use and not for barter or sale, accompanying persons, or arriving within a reasonable time, in the discretion are re-exported or rendered commercially
such persons, or arriving within a reasonable time, in the of the Collector of Customs, before or after the arrival of their valueless under Customs control.
discretion of the Collector of Customs, before or after the owners, which shall not be later than February 28, 1979 upon
arrival of their owners, which shall not be later than February the production of evidence satisfactory to the Collector of
28, 1979 upon the production of evidence satisfactory to the Customs that such persons are actually coming to settle in the
Collector of Customs that such persons are actually coming to Philippines, that change of residence was bona fide and that
settle in the Philippines, that change of residence was bona the privilege of free entry was never granted to them before or
fide and that the privilege of free entry was never granted to that such person qualifies under the provisions of Letters of
them before or that such person qualifies under the provisions Instructions 105, 163 and 210, and that the articles are brought
of Letters of Instructions 105, 163 and 210, and that the from their former place of abode, shall be exempt from the
articles are brought from their former place of abode, shall be payment of customs, duties and taxes: Provided, That vehicles,
exempt from the payment of customs, duties and taxes: vessels, aircrafts, machineries and other similar articles for use
Provided, That vehicles, vessels, aircrafts, machineries and in manufacture, shall not be classified hereunder;
other similar articles for use in manufacture, shall not be
classified hereunder; i. Articles used exclusively for public entertainment,
and for display in public expositions, or for exhibition or
Articles used exclusively for public entertainment, and for competition for prizes, and devices for projecting pictures and
display in public expositions, or for exhibition or competition parts and appurtenances thereof, upon identification,
for prizes, and devices for projecting pictures and parts and examination, and appraisal and the giving of a bond in an
appurtenances thereof, upon identification, examination, and amount equal to one and one half times the ascertained duties,
appraisal and the giving of a bond in an amount equal to ONE taxes and other charges thereon, conditioned for exportation
HUNDRED PERCENT the ascertained duties, taxes and thereof or payment of the corresponding duties, taxes and
other charges thereon, conditioned for exportation thereof or other charges within six (6) months from the date of
payment of the corresponding duties, taxes and other charges acceptance of the import entry; Provided, That the Collector of
within six (6) months from the date of acceptance of the Customs may extend the time for exportation or payment of
GOODS DECLARATION; Provided, That the Collector of duties, taxes and other charges f or a term not exceeding six
Customs may extend the time for exportation or payment of (6) months from the expiration of the original period; and
duties, taxes and other charges for a term not exceeding six technical and scientific films when imported by technical,
(6) months from the expiration of the original period; and cultural and scientific institutions, and not to be exhibited for
technical and scientific films when imported by technical, profit: Provided, further, That if any of the said films is exhibited
cultural and scientific institutions, and not to be exhibited for for profit, the proceeds therefrom shall be subject to
profit: Provided, further, That if any of the said films is confiscation, in addition to the penalty provided under Section
exhibited for profit, the proceeds therefrom shall be subject to Thirty six hundred and ten as amended, of this Code;
confiscation, in addition to the penalty provided under Section
1535 as amended, of this ACT; j. Articles brought by foreign film producers directly
and exclusively used for making or recording motion picture
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Articles brought by foreign film producers directly and films on location in the Philippines, upon their identification,
exclusively used for making or recording motion picture films examination and appraisal and the giving of a bond in an
on location in the Philippines, upon their identification, amount equal to one and one half times the ascertained duties,
examination and appraisal and the giving of a bond in an taxes and other charges thereon, conditioned for exportation
amount equal to ONE HUNDRED PERCENT the ascertained thereof or payment of the corresponding duties, taxes and
duties, taxes and other charges thereon, conditioned for other charges within six (6) months from the date of
exportation thereof or payment of the corresponding duties, acceptance of the import entry, unless extended by the
taxes and other charges within six (6) months from the date of Collector of Customs for another six (6) months ; photographic
acceptance of the GOODS DECLARATION, unless extended and cinematographic films, underdeveloped, exposed outside
by the Collector of Customs for another six (6) months; the Philippines by resident Filipino citizens or by producing
photographic and cinematographic films, underdeveloped, companies of Philippine registry where the principal actors and
exposed outside the Philippines by resident Filipino citizens or artists employed for the production are Filipinos, upon affidavit
by producing companies of Philippine registry where the by the importer and identification that such exposed films are
principal actors and artists employed for the production are the same films previously exported from the Philippines As
Filipinos, upon affidavit by the importer and identification that used in this paragraph, the terms "actors" and "artists" include
such exposed films are the same films previously exported the persons operating the photographic camera or other
from the Philippines as used in this paragraph, the terms photographic and sound recording apparatus by which the film
"actors" and "artists" include the persons operating the is made;
photographic camera or other photographic and sound
recording apparatus by which the film is made; k. Importations for the official use of foreign
embassies, legations, and other agencies of foreign
Importations for the official use of foreign embassies, governments: Provided, That those foreign countries accord
legations, and other agencies of foreign governments: like privileges to corresponding agencies of the Philippines.
Provided, that those foreign countries accord like privileges to
corresponding agencies of the Philippines. Articles imported for the personal or family use of the members
and attaches of foreign embassies, legations, consular officers
Articles imported for the personal or family use of the and other representatives of foreign governments: Provided,
members and attaches of foreign embassies, legations, That such privilege shall be accorded under special
consular officers and other representatives of foreign agreements between the Philippines and the countries which
governments: Provided, That such privilege shall be accorded they represent: And Provided, further, That the privilege may
under special agreements between the Philippines and the be granted only upon specific instructions of the Secretary of
countries which they represent: And provided, further, That Finance in each instance which be issued only upon request of
the privilege may be granted only upon specific instructions of the Department of Foreign Affairs;
the Secretary of Finance in each instance which be issued
only upon request of the Department of Foreign Affairs; l. Imported articles donated to, or for the account of,
any duly registered relief organization, not operated for profit,
Imported articles donated to, or for the account of, any duly for free distribution among the needy, upon certification by the
registered relief organization, not operated for profit, for free Department of if Social Services and Development or the
distribution among the needy, upon certification by the Department of Education, Culture and Sports. as the case may
Department of Social WELFARE and Development (DSWD) be;
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or the Department of Education (DepEd), as the case may be; m. Containers, holders and other similar receptacles of
any material including kraft paper bags for locally
Containers, holders and other similar receptacles of any manufactured cement for export, including corrugated boxes
material including kraft paper bags for locally manufactured for bananas, pineapples and other fresh fruits for export,
cement for export, including corrugated boxes for bananas, except other containers made of paper, paperboard and textile
pineapples and other fresh fruits for export, except other fabrics, which are of such character as to be readily identifiable
containers made of paper, paperboard and textile fabrics, and/or reusable for shipment or transportation of goods shall
which are of such character as to be readily identifiable and/or be delivered to the importer thereof upon identification
reusable for shipment or transportation of goods shall be examination and appraisal and the giving of a bond in an
delivered to the importer thereof upon identification amount equal to one and one half times the ascertained duties,
examination and appraisal and the giving of a bond in an taxes and other charges within six (6) months from the date of
amount equal to ONE HUNDRED PERCENT the ascertained acceptance of the import entry;
duties, taxes and other charges within six (6) months from the
date of acceptance of the import entry; n. Supplies which are necessary for the reasonable
requirements of the vessel or aircraft in her voyage or flight
Supplies which are necessary for the reasonable outside the Philippines, including articles transferred from a
requirements of the vessel or aircraft in her voyage or flight bonded warehouse any collection district to any vessel or
outside the Philippines, including articles transferred from a aircraft engaged in foreign trade, for use or consumption the
bonded warehouse in any collection district to any vessel or passengers or its crew on board such vessel o r aircrafts as
aircraft engaged in foreign trade, for use or consumption of sea or air stores; o r article purchased abroad for sale on board
the passengers or its crew on board such vessel or aircrafts a vessel or aircraft as saloon stores or air store supplies
as sea or air stores; or article purchased abroad for sale on Provided, That any surplus or excess of such vessel or aircraft
board a vessel or aircraft as saloon stores or air store supplies supplies arriving from foreign ports or airports shall be dutiable;
Provided, that any surplus or excess of such vessel or aircraft
supplies arriving from foreign ports or airports shall be o. Articles and salvage from vessels recovered after a
dutiable; period of two (2) years from the date of filling the marine
protest or the time when the vessel was wrecked or
Articles and salvage from vessels recovered after a period of abandoned, or parts of a foreign vessel or her equipment,
two (2) years from the date of filling the marine protest or the wrecked or abandoned in Philippine waters or elsewhere:
time when the vessel was wrecked or abandoned, or parts of Provided That articles and salvage recovered within the said
a foreign vessel or her equipment, wrecked or abandoned in period of two (2) years shall be dutiable;
Philippine waters or elsewhere: Provided that articles and
salvage recovered within the said period of two (2) years shall p. Coffins or urns containing human remain, bones or
be dutiable; ashes, used personal and household effects (not merchandise)
of the deceased person, except vehicles, the value of which
Coffins or urns containing human remain, bones or ashes, does not exceed Ten Thousand Pesos (P10,000), upon
used personal and household effects (not merchandise) of the identification as such;
deceased person, except vehicles, the value of which does
not exceed FIFTY Thousand Pesos (P50,000), upon q. Samples of the kind, in such quantity and of such
identification as such; dimension or construction as to render them unsalable or of no
appreciable commercial value; models not adapted for practical
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Samples of the kind, in such quantity and of such dimension use; and samples of medicines, properly marked "sample sale
or construction as to render them unsalable or of no punishable by law", for the purpose of introducing a new article
appreciable commercial value; models not adapted for in the Philippine market and imported only once in a quantity
practical use; and samples of medicines, properly marked sufficient for such purpose by a person duly registered and
"sample-sale punishable by law", for the purpose of identified to be engaged in that trade: Provided, That
introducing a new article in the Philippine market and imported importations under this subsection shall be previously
only once in a quantity sufficient for such purpose by a person authorized by the Secretary of Finance: Provided, however,
duly registered and identified to be engaged in that trade: That importation of sample medicine shall be previously
Provided, that importations under this subsection shall be authorized by the Secretary of Health that such samples are
previously authorized by the Secretary of Finance: Provided, new medicines not available in the Philippines: Provided,
however, that importation of sample medicine shall be finally, That samples not previously authorized and/or properly
previously authorized by the Secretary of Health that such marked in accordance with this section shall be levied the
samples are new medicines not available in the Philippines: corresponding tariff duty.
Provided, finally, that samples not previously authorized
and/or properly marked in accordance with this section shall Commercial samples, except those that are not readily and
be levied the corresponding tariff duty. easily identifiable (e.g., precious and semi precious stones, cut
or uncut, and jewelry set with precious or semi precious
Commercial samples, except those that are not readily and stones), the value of any single importation of which does not
easily identifiable (e.g., precious and semi-precious stones, exceed ten thousand pesos (P10,000) upon the giving of a
cut or uncut, and jewelry set with precious or semi-precious bond in an amount equal to twice the ascertained duties, taxes
stones), the value of any single importation of which does not and other charges thereon, conditioned for the exportation of
exceed FIFTY thousand pesos (P50,000) upon the giving of a said samples within six (6) months from the date of t he
bond in an amount equal to the ascertained duties, taxes and acceptance o f the import entry or in default t hereof, t he
other charges thereon, conditioned for the exportation of said payment o f t he corresponding duties, taxes and other
samples within six (6) months from the date of the acceptance charges. If the value of any single consignment of such
of the GOODS DECLARATION or in default thereof, t he commercial samples exceeds ten thousand pesos (P1 0,000),
payment of the corresponding duties, taxes and other the importer thereof may select any portion of same not
charges. If the value of any single consignment of such exceeding in value of ten thousand pesos (P10,000) f or entry
commercial samples exceeds FIFTY thousand pesos u rider the consumption, as the importer may elect;
(P50,000), the importer thereof may select any portion of
same not exceeding in value of FIFTY thousand pesos r. Animals (except race horses), and plants for
(P50,000) for entry under the provision of this subsection, and scientific, experimental, propagation, botanical, breeding,
the excess of the consignment may be entered in bond, or for zoological and national defense purposes: Provided, That no
consumption, as the importer may elect; live trees, shoots, plants, moss, and bulbs, tubers and seeds
for propagation purposes may be imported under this section,
Animals (except race horses), and plants for scientific, except by order of the Government or other duly authorized
experimental, propagation, botanical, breeding, zoological and institutions: Provided, further, That the free entry of animals for
national defense purposes: Provided, that no live trees, breeding purposes shall be restricted to animals of recognized
shoots, plants, moss, and bulbs, tubers and seeds for breed. duly registered in the book of record established for that
propagation purposes may be imported under this section, breed, certified as such by the Bureau of Animal Industry:
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except by order of the Government or other duly authorized Provided, furthermore, That certificate of such record, and
institutions: Provided, further, that the free entry of animals for pedigree of such animal duly authenticated by the proper
breeding purposes shall be restricted to animals of recognized custodian of such book of record, shall be produced and
breed. duly registered in the book of record established for submitted to the Collector of Customs, together with affidavit of
that breed, certified as such by the Bureau of Animal Industry: the owner or importer, that such animal is the animal described
Provided, furthermore, that certificate of such record, and in said certificate of record and pedigree: And Provided, finally,
pedigree of such animal duly authenticated by the proper That the animals and plants are certified by the National
custodian of such book of record, shall be produced and Economic and Development Authority as necessary for
submitted to the Collector of Customs, together with affidavit economic development;
of the owner or importer, that such animal is the animal
described in said certificate of record and pedigree: And s. Economic, technical, vocational, scientific,
provided, finally, that the animals and plants are certified by philosophical, historical, and cultural books and/or publications:
the National Economic and Development Authority as Provided, That those which may have already been imported
necessary for economic development; but pending release by the Bureau of Customs at the effectivity
of this Decree may still enjoy the privilege herein provided
Economic, technical, vocational, scientific, philosophical, upon certification by the Department of Education, Culture and
historical, and cultural books and/or publications: Provided, Sports that such imported books and/or publications are for
that those which may have already been imported but pending economic, technical, vocational, scientific, philosophical,
release by the Bureau of Customs at the effectivity of this ACT historical or cultural purposes or that the same are educational,
may still enjoy the privilege herein provided upon certification scientific or cultural materials covered by the International
by the Department of Education that such imported books Agreement on Importation of Educational Scientific and
and/or publications are for economic, technical, vocational, Cultural Materials signed by the President of the Philippines on
scientific, philosophical, historical or cultural purposes or that August 2, 1952, or other agreements binding upon the
the same are educational, scientific or cultural materials Philippines.
covered by the International Agreement on Importation of
Educational Scientific and Cultural Materials signed by the Educational, scientific and cultural materials covered by
President of the Philippines on August 2, 1952, or other international agreements or commitments binding upon the
agreements binding upon the Philippines. Philippine Government so certified by the Department of
Education, Culture and Sports.
Educational, scientific and cultural materials covered by
international agreements or commitments binding upon the Bibles, missals, prayer books, Koran, Ahadith and other
Philippine Government so certified by the Department of religious books of similar nature and extracts therefrom,
Education. hymnal and hymns for religious uses;
Bibles, missals, prayer books, Koran, Ahadith and other t. Philippine articles previously exported from the
religious books of similar nature and extracts therefrom, Philippines and returned without having been advanced in
hymnal and hymns for religious uses; value or improved in condition by any process of manufacture
or other means, and upon which no drawback or bounty has
Philippine articles previously exported from the Philippines been allowed, including instruments and implements, tools of
and returned without having been advanced in value or trade, machinery and equipment, used abroad by Filipino
improved in condition by any process of manufacture or other citizens in the pursuit of their business, occupation or
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means, and upon which no drawback or bounty has been profession; and foreign articles previously imported when
allowed, including instruments and implements, tools of trade, returned after having been exported and loaned for use
machinery and equipment, used abroad by Filipino citizens in temporarily abroad solely for exhibition, testing and
the pursuit of their business, occupation or profession; and experimentation, for scientific or educational purposes; and
foreign articles previously imported when returned after foreign containers previously imported which have been used
having been exported and loaned for use temporarily abroad in packing exported Philippine articles and returned empty if
solely for exhibition, testing and experimentation, for scientific imported by or for the account of the person or institution who
or educational purposes; and foreign containers previously exported them from the Philippines and not for sale, barter or
imported which have been used in packing exported hire subject to identification: Provided, That any Philippine
Philippine articles and returned empty if imported by or for the article falling under this subsection upon which drawback or
account of the person or institution who exported them from bounty has been allowed shall, upon re importation thereof, be
the Philippines and not for sale, barter or hire subject to subject to a duty under this subsection equal to the amount of
identification: Provided, that any Philippine article falling under such drawback or bounty;
this subsection upon which drawback or bounty has been
allowed shall, upon re-importation thereof, be subject to a duty u. Aircraft, equipment and machinery, spare parts
under this subsection equal to the amount of such drawback commissary and catering supplies, aviation gas, fuel and oil,
or bounty; whether crude or refined, and such other articles or supplies
imported by and for the use of scheduled airlines operating
Aircraft, equipment and machinery, spare parts commissary under Congressional franchise: Provided, That such articles or
and catering supplies, aviation gas, fuel and oil, whether supplies are not locally available in reasonable quantity, quality
crude or refined, and such other articles or supplies imported and price and are necessary or incidental for the proper
by and for the use of scheduled airlines operating under operation of the scheduled airline importing the same;
Congressional franchise: Provided, that such articles or
supplies are not locally available in reasonable quantity, v. Machineries, equipment, tools for production, plants
quality and price and are necessary or incidental for the to convert mineral ores into saleable form, spare parts,
proper operation of the scheduled airline importing the same; supplies, materials, accessories, explosives, chemicals, and
transportation and communication facilities imported by and for
Machineries, equipment, tools for production, plants to convert the use of new mines and old mines which resume operations,
mineral ores into saleable form, spare parts, supplies, when certified to as such by the Secretary of Agriculture and
materials, accessories, explosives, chemicals, and Natural Resources upon the recommendation of the Director of
transportation and communication facilities imported by and Mines, for a period ending five (5) years from the first date of
for the use of new mines and old mines which resume actual commercial production of saleable mineral products:
operations, when certified to as such by the Secretary of Provided, That such articles are not locally available in
Agriculture and Natural Resources upon the recommendation reasonable quantity, quality and price and are necessary or
of the Director of Mines, for a period ending five (5) years from incidental in the proper operation of the mine; and aircrafts
the first date of actual commercial production of saleable imported by agro industrial companies to be used by them in
mineral products: Provided, that such articles are not locally their agriculture and industrial operations or activities, spare
available in reasonable quantity, quality and price and are parts and accessories thereof;
necessary or incidental in the proper operation of the mine;
and aircrafts imported by agro-industrial companies to be w. Spare parts of vessels or aircraft of foreign registry
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used by them in their agriculture and industrial operations or engaged in foreign trade when brought into the Philippines
activities, spare parts and accessories thereof; exclusively as replacements or for the emergency repair
thereof, upon proof satisfactory to the Collector of Customs
Spare parts of vessels or aircraft of foreign registry engaged that such spare parts shall be utilized to secure the safety,
in foreign trade when brought into the Philippines exclusively seaworthiness or airworthiness of the vessel or aircraft, to
as replacements or for the emergency repair thereof, upon enable it to continue its voyage or flight ;
proof satisfactory to the Collector of Customs that such spare
parts shall be utilized to secure the safety, seaworthiness or x. Articles of easy identification exported from the
airworthiness of the vessel or aircraft, to enable it to continue Philippines for repair and subsequently reimported upon proof
its voyage or flight; satisfactory to the Collector of Customs that such articles is not
capable :r being repaired locally: Provided, That the cost of the
Articles of easy identification exported from the Philippines for repairs made to any such article shall pay a rate of duty of
repair, PROCESSING OR RECONDITIONING and thirty percent ad valorem;
subsequently reimported upon proof satisfactory to the
Collector of Customs that such articles is not capable of being y. Trailer chassis when imported by shipping
repaired, PROCESSED OR RECONDITIONED locally: companies for their exclusive use in handling containerized
Provided, That A THIRTY PERCENT AD VALOREM SHALL cargo, upon posting a bond in an amount equal to one and one
BE IMPOSED ON the cost of repair, PROCESSING OR half times the ascertained duties, taxes and other charges due
RECONDITIONING ON such article. thereon to cover a period of one year from the date of
acceptance of the entry, which period for meritorious reasons
Trailer chassis when imported by shipping companies for their may, be extended by the Commissioner of Customs from year
exclusive use in handling containerized cargo, upon posting a to year, subject to the following conditions:
bond in an amount equal to ONE HUNDRED PERCENT the
ascertained duties, taxes and other charges due thereon to 1. That they shall be properly identified and registered
cover a period of one year from the date of acceptance of the with the Land Transportation Commission;
entry, which period for meritorious reasons may, be extended
by the Commissioner of Customs from year to year, subject to 2. That they shall be subject to customs supervision
the following conditions: fee to be fixed by the Collector of Customs and subject to the
approval of the Commissioner of Customs;
That they shall be properly identified and registered with the
Land Transportation OFFICE; 3. That they shall be deposited in the Customs zone
when not in use; and
That they shall be subject to customs supervision fee to be
fixed by the Collector of Customs and subject to the approval 4. That upon the expiration of the period prescribed
of the Commissioner of Customs; above, duties and taxes shall be paid unless otherwise re
exported.
That they shall be deposited in the Customs zone when not in
use; and The provisions of Sec. 105 of Presidential Decree No. 34,
dated October 27, 1972, to the contrary notwithstanding any
That upon the expiration of the period prescribed above, officer or employee of the Department of Foreign Affairs,
including any attache, civil or military or member of his staff
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duties and taxes shall be paid unless otherwise re-exported. assigned to a Philippine diplomatic mission abroad by his
Department or any similar officer o7 employee assigned to a
The provisions of Sec. 105 of Presidential Decree No. 34, Philippine consular office abroad, or any personnel of the
dated October 27, 1972, to the contrary notwithstanding any Reparations Mission in Tokyo or AFP military personnel
officer or employee of the Department of Foreign Affairs, detailed with SEATO or any AFP military personnel accorded
including any attache, civil or military or member of his staff assimilated diplomatic rank or duty abroad who is returning
assigned to a Philippine diplomatic mission abroad by his from a regular assignment abroad, for reassignment to his
Department or any similar officer of employee assigned to a Home office, or who dies. resigns, or is retired from the service,
Philippine consular office abroad, or any personnel of the after the approval of this Decree, shall be exempt from the
Reparations Mission in Tokyo or AFP military personnel payment of all duties and taxes on his personal and household
detailed with SEATO or any AFP military personnel accorded effects, including one motor car which must have been ordered
assimilated diplomatic rank or duty abroad who is returning or purchased prior to the receipt by the mission or consulate of
from a regular assignment abroad, for reassignment to his his order of recall, and which must be registered in his name:
Home office, or who dies, resigns, or is retired from the Provided, however, That this exemption shall apply only to the
service, after the approval of this Decree, shall be exempt value of the motor car and to the aggregate assessed value of
from the payment of all duties and taxes on his personal and said personal and household effects the latter not to exceed
household effects, including one motor car which must have thirty per centum (30%) of the total amount received by such
been ordered or purchased prior to the receipt by the mission officer or employee in salary and allowances during his latest
or consulate of his order of recall, and which must be assignment abroad but not to exceed four years; Provided,
registered in his name: Provided, however, That this further, That this exemption shall not be availed of oftener than
exemption shall apply only to the value of the motor car and to once every four years; And, Provided, finally, That the officer or
the aggregate assessed value of said personal and household employee concerned must have served abroad for not less
effects the latter not to exceed thirty per centum (30%) of the than two years.
total amount received by such officer or employee in salary
and allowances during his latest assignment abroad but not to The provisions of general and special laws, including those
exceed four years; Provided, further, That this exemption shall granting fanchises, to the contrary notwithstanding, there shall
not be availed of oftener than once every four years; And, be no exemptions whatsoever from the payment of customs
Provided, finally, That the officer or employee concerned must duties except those provided for in this Code; those granted to
have served abroad for not less than two years. government agencies, instrumentalities or government owned
or controlled corporations with existing contracts,
The provisions of general and special laws, including those commitments, agreements, or obligations (requiring such
granting fanchises, to the contrary notwithstanding, there shall exemption) with foreign countries; international institutions,
be no exemptions whatsoever from the payment of customs associations or organizations entitled to exemption pursuant to
duties except those provided for in this Code; those granted to agreements or special laws; and those that may be granted by
government agencies, instrumentalities or government-owned the President upon prior recommendation of the National
or controlled corporations with existing contracts, Economic and Development Authority in the interest of national
commitments, agreements, or obligations (requiring such economic development.
exemption) with foreign countries; international institutions,
associations or organizations entitled to exemption pursuant
to agreements or special laws; and those that may be granted
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by the President upon prior recommendation of the National
Economic and Development Authority in the interest of
national economic development.
CHAPTER 2. CUSTOMS BONDED WAREHOUSE Section 2005 on bonded smelting

warehouse proposed to be deleted.
Reason: No need for a separate
provision governing smelting since it is
no different from ordinary warehouses.
(This is an open policy issue)
SEC. 801. Establishment and Supervision of Warehouses. SEC 1901 Establishment and Supervision of Warehouses. - En toto
When the business of the port requires such facilities, the
When the business of the port requires such facilities, the Collector subject to the approval of the Commissioner shall
Collector subject to the approval of the Commissioner shall designate and establish warehouses for use as public and
designate and establish warehouses for use as public and private bonded warehouses, sheds or yards, or for other
private bonded warehouses, sheds or yards, or for other special purposes.
special purposes. All such warehouses and premises shall be
subject to the supervision of the Collector, who shall impose All such warehouses and premises shall be subject to the
such conditions as may be deemed necessary for the supervision of the Collector, who shall impose such conditions
protection of the revenue and of the articles stored therein. as may be deemed necessary for the protection of the revenue
andof the articles stored therein.
SEC. 802. Types of Warehouses. New Provision in so far as

enumerating types of warehouses in a
Warehouses may be classified as follows: single provision for ease of reference.
1. Public Bonded Warehouse
2. Private Bonded Warehouse
3. Manufacturing Bonded Warehouse
4. INDUSTRY-SPECIFIC CUSTOMS BONDED

WAREHOUSE
5. Common CUSTOMS BONDED WAREHOUSE
6. CONTAINER YARD/CONTAINER FREIGHT STATION
Subject to consultation with NEDA and DTI, and oversight by

Congress, and based on prevailing economic circumstance,
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the Commissioner may create other types of warehouses.
SEC. 803. Responsibility of Operators. SEC 1902 Responsibility of Operators. - The operators of En toto
bonded warehouse in case of loss of the imported articles
The operators of bonded warehouse in case of loss of the stored shall be liable for the payment of duties and taxes due
imported articles stored shall be liable for the payment of thereon.
duties and taxes due thereon. The government assumes no
legal responsibility in respect to the safekeeping of articles The government assumes no legal responsibility in respect to
stored in any customs warehouses, sheds, yards or the safekeeping of article stored in any customs warehouse,
premises. sheds, yards or premises.
SEC. 804. Establishment of Bonded Warehouses. SEC 1903 Bonded Warehouses. - Application for the En toto
establishment of bonded warehouses must be made in writing
Application for the establishment of bonded warehouse must and filed with the Collector, describing the premises, the
be made in writing and filed with the Collector, describing the location, and capacity of the same and the purpose for which
premises, the location, and capacity of the same, and the the building is to be used.
purpose for which the building is to be used.
Upon receipt of such application, the Collector shall cause an
Upon receipt of such application, the Collector shall cause an examination of the premises with reference particularly to its
examination of the premises, with reference particularly to its location, construction and means provided for the safekeeping
location, construction and means provided for the safekeeping of articles and if found satisfactory, he may authorize its
of articles and if found satisfactory, he may authorize its establishment, and accept a bond for its operation and
establishment, and accept a bond for its operation and maintenance. The operator of such bonded warehouse shall
maintenance. The operator of such bonded warehouse shall pay an annual supervision fee in an amount to be fixed by the
pay an annual supervision fee in an amount to be fixed by the Commissioner. The bonded warehouse officers and other
Commissioner. The bonded warehouse officers and other employees thereof shall be regular customs employees who
employees thereof shall be regular employees who shall be shall be appointed in accordance with the Civil Service Law,
appointed in accordance with the Civil Service Law, rules and rules and regulations.
regulations.
SEC. 805. Irrevocable Domestic Letter of Credit or Bank SEC 1904 Irrevocable Domestic Letter of Credit or Bank Section 31 of the ASB and RKC General En toto. Section 31 of Anti-Smuggling
Guarantee or Warehousing Bond. Guarantee or Warehousing Bond- After articles declared in the Annex 5.3 . bill is proposing the posting of
entry for warehousing shall have been examined and the irrevocable LC or Bank Guaranty
After articles declared in the entry for warehousing shall have duties, taxes and other charges shall have been determined, 5.3. Standard which appears to be in conflict with
been examined and the duties, taxes and other charges shall the Collector shall require from the importer an irrevocable RKC GA Standard 5.3
have been determined, the Collector shall require from the domestic letter of credit, bank guarantee or bond equivalent to Any person required to provide security
importer, an irrevocable letter of credit, bank guarantee or the amount of such duties, taxes and other charges shall be allowed to choose any form of
bond equivalent to the amount of such duties, taxes and other conditioned upon the withdrawal of articles within the period security provided that it is acceptable to
charges conditioned upon the withdrawal of the articles within prescribed by section nineteen hundred and eight of this Code the Customs.
the period prescribed by Section 808 of this ACT and for and for payment of any duties, taxes and other charges to
payment of any duties, taxes and other charges to which the which the articles shall be then subject and upon compliance
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articles shall be then subject and upon compliance with all with all legal requirements regarding their importation.
legal requirements regarding their importation.
SEC. 806. Discontinuance of Warehouses. SEC 1905 Discontinuance of Warehouses. - The use of any Section 32 of the ASB En toto. Anti-Smuggling Bill proposes
warehouse may be discontinued by the Collector at any time to allow industry group to
The use of any warehouse may be discontinued by the when conditions so warrant, or, in case of private warehouse, recommend to collector
Collector at any time when conditions so warrant, or, in case upon receipt of written request to that effect from the operator discontinuance of warehousing
of private warehouse, upon receipt of written request to that thereof of the premises, provided all the requirements of the operations. Working group consensus
effect from the operator thereof of the premises, provided all law and regulations have been complied with by said operator. is no need to legislate because rules
the requirements of the law and regulations have been Where the dutiable article is stored in such premises, the same already exist mandating disciplinary
complied with by said operator. Where the dutiable article is must be removed at the risk and expense of the operator and action against erring bonded
stored in such premises, the same must be removed at the the premises shall not be relinquished, nor discontinuance of warehouses that includes closure.
risk and expense of the operator and the premises shall not its use authorized, until a careful examination of the account of Private sector may provide intelligence
be relinquished, nor discontinuance of its use authorized, until the warehouse shall have been made. Discontinuance of any information at any time. Bureau as a
after a careful examination of the account of the warehouse warehouse shall be effective upon official notice and approval government and publicly accountable
shall have been made. Discontinuance of any warehouse thereof by the Collector. agency should retain exclusive
shall be effective upon official notice and approval thereof by authority to enforce warehousing laws
the Collector. and regulations. Empowering the
private sector who are not accountable
public officers opens he floodgate fro
harassment especially against private
competitors.
SEC. 807. Withdrawal of Articles from Bonded SEC 1907 Withdrawal of Articles from Bonded Warehouse. Section 34 of the ASB En toto
Warehouse. Articles entered under irrevocable domestic letter of credit,
bank guarantee or bond may be withdrawn at any time for
Articles entered under irrevocable domestic letter of credit, consumption for transportation to another port, for exportation
bank guarantee or bond may be withdrawn at any time for or for delivery on board a vessel or aircraft engaged in foreign
consumption for transportation to another port, for exportation trade for use on board such vessel or aircraft as sea stores or
or for delivery on board a vessel or aircraft engaged in foreign aircraft stores after liquidation of the entry. The withdrawal
trade for use on board such vessel or aircraft as sea stores or must be made by a person or firm duly authorized by the
aircraft stores after liquidation of the entry. The withdrawal former, whose authority must appear in writing upon the face of
must be made by a person or firm duly authorized by the the withdrawal entry.
former, whose authority must appear in writing upon the face
of the withdrawal entry.
SEC. 808. Period of Storage in Bonded Warehouse. SEC 1908 Limit to Period of Storage in Bonded Warehouse. - RKC Specific Annex D Chapter 1 Major amendment. Storage period rule
Articles duly entered for warehousing may remain in bonded Standard 11 set at 1 year except for perishable
Articles duly entered for warehousing may remain in bonded warehouses for a maximum period of one year from the time of goods which is set at 3 months with
warehouses for a MAXIMUM period of one year from the time arrival at the port of entry. Articles not withdrawn at the RKC Specific Annex D Chapter 1 another 3 months extension (6 months
of arrival at the port of entry. FOR PERISHABLE ARTICLES Standard 11 which mandates that storage
130
AS DEFINED BY REGULATION, THE STORAGE PERIOD expiration of the prescribed period shall be sold at public period should not be less than one (1) maximum). For certain types of
SHALL BE THREE (3) MONTHS FROM DATE OF ARRIVAL, auction by the Collector. extendible year except for perishable industries that require a longer storage
EXTENDIBLE UPON WRITTEN REQUEST TO ANOTHER goods. Sec 35 ASB period on account of the nature of the
THREE (3) MONTHS FOR VALID REASONS Articles not manufacturing schedule, the storage
withdrawn at the expiration of the prescribed period shall be 11. Standard period can be more than 1 year based
DEEMED AS ABANDONED AS PROVIDED UNDER on industry-set standard. The ASB
SECTION 1029 OF THIS ACT. The Customs shall fix the authorized recommendation to set the maximum
maximum duration of storage in a period of storage to 9 months (6
HOWEVER, THE COMMISSIONER OF CUSTOMS SHALL, Customs warehouse with due regard to months initial plus 3 months extension)
IN CONSULTATION WITH THE SECRETARY OF TRADE the needs of the trade, and in the case of is not in line with the RKC standard.
AND INDUSTRY, ESTABLISH A REASONABLE STORAGE non-perishable goods it shall be not less
PERIOD LIMIT BEYOND ONE YEAR FOR BONDED than one year.
ARTICLES FOR MANUFACTURING FOR EXPORT 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. 809. Establishment of Bonded Manufacturing SEC 2001 Establishment of Bonded Manufacturing En toto
Warehouses. Warehouses. - All articles manufactured in whole or in part of
imported materials, and intended for exportation without being
All articles manufactured in whole or in part of imported charged with duty, shall, in order to be so manufactured and
materials, and intended for exportation without being charged exported, be made and manufactured in bonded manufacturing
with duty, shall, in order to be so manufactured and exported, warehouses under such rules and regulations as the
be made and manufactured in bonded manufacturing Commissioner of Customs with the approval of the Secretary of
warehouses under such rules and regulations as the Finance, shall prescribe: Provided, That the manufacturer of
Commissioner of Customs with the approval of the Secretary such articles shall first file a satisfactory bond for the faithful
of Finance, shall prescribe: Provided, That the manufacturer observance of all laws, rules and regulations applicable
of such articles shall first file a satisfactory bond for the faithful thereto.
observance of all laws, rules and regulations applicable
thereto.
SEC. 810. Exemption from Duty. SEC 2002 Exemption from Duty. - The provision is amended to be
consistent with the new storage period
a. Whenever articles manufactured in any bonded a. Whenever articles manufactured in any bonded standard. Please note that for bonded
manufacturing warehouse established under the provisions of manufacturing warehouse established under the provisions of materials for manufacturing the
the preceding section shall be exported directly therefrom or the preceding section shall be exported directly therefrom or general storage limit of 1 year may be
shall be duly laden for immediate exportation under the shall be duly laden for immediate exportation under the extendible for 3 months upon approval
supervision of the proper official, such articles shall be exempt supervision of the proper official, such articles shall be exempt by the Commissioner. This is to allow
from duty. from duty. some flexibility to customs and to
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b. Any imported material used in the manufacture of b. Any imported material used in the manufacture of bonded warehouse operators to make
such articles, and any package, covering, brand and label such articles, and any package, covering, brand and label used the necessary adjustment in extreme
used in putting up the same may, under the regulation in putting up the same may, under the regulation prescribed by meritorious cases where the 1 year
prescribed by the Commissioner, with the approval of the the Commissioner, with the approval of the Secretary of period cannot be complied for reasons
Secretary of Finance, be conveyed without the payment of Finance, be conveyed without the payment of duty into any beyond the control of the warehouse
duty into any bonded manufacturing warehouse, and imported bonded manufacturing warehouse, and imported articles may, operator. The extension privilege is
articles may, under the aforesaid regulations, be transferred under the aforesaid regulations, be transferred without the consistent with the RKC standard
without the payment of duty from any bonded warehouse into payment of duty from any bonded warehouse into any bonded setting the minimum storage period to
any bonded manufacturing warehouse, or to duly accredited manufacturing warehouse, or to duly accredited sub - 1 year which means a longer storage
sub-contractors of manufacturers who shall process the same contractors of manufacturers who shall process the same into period can be adopted by the member-
into finished products for exports and deliver such finished finished products for exports and deliver such finished products economy.
products back to the bonded manufacturing warehouse, back to the bonded manufacturing warehouse, therefrom to be
therefrom to be exported; but this privilege shall not be held to exported; but this privilege shall not be held to apply to
apply to implements, machinery or apparatus to be used in implements, machinery or apparatus to be used in the
the construction or repair of any bonded manufacturing construction or repair of any bonded manufacturing
warehouse: Provided, however, That the materials transferred warehouse: Provided, however, That the materials transferred
or conveyed into any bonded manufacturing warehouse shall or conveyed into any bonded manufacturing warehouse shall
be used in the manufacture of articles for exportation within a be used in the manufacture of articles for exportation within a
period of ONE (1) YEAR OR SUCH STORAGE PERIOD AS period of nine (9) months from date of such transfer or
MAY BE ESTABLISHED PURSUANT TO SECTION 808 OF conveyance into the bonded manufacturing warehouse, which
THIS ACT, from date of such transfer or conveyance into the period may for sufficient reasons be further extended for not
bonded manufacturing warehouse, which period may for more then three (3) months by the Commissioner. Materials
VALID reasons be further extended for not more than three not used in the manufacture of articles for exportation within
(3) months by the Commissioner. Materials not used in the the prescribed period shall pay the corresponding duties:
manufacture of articles for exportation within the prescribed Provided, further, That the operation of embroidery and apparel
period shall pay the corresponding duties: Provided, further, firms shall continue to be governed by Republic Act Numbered
That the operation of embroidery and apparel firms shall Thirty -one hundred and thirty seven
continue to be governed by Republic Act Numbered
Thirty-one hundred and thirty-seven.
SEC. 811. Procedure for Withdrawal. SEC 2003 Procedure for Withdrawal. -Articles received into ASB section 40 recommends destruction En toto. The Working Groups
such bonded manufacturing warehouse or articles of waste materials recommendation is to retain the
Articles received into such bonded manufacturing warehouse manufactured therein may be withdrawn or removed therefrom provision to enable government to
or articles manufactured therein may be withdrawn or for direct shipment and for immediate exportation in bond generate additional revenue from
removed therefrom for direct shipment and for immediate under the supervision of the proper customs officer, who shall wastages.
exportation in bond under the supervision of the proper certify to such shipment and exportation, or lading for
customs officer, who shall certify to such shipment and immediate exportation as the case may be, describing the
exportation, or lading for immediate exportation as the case articles by their mark or otherwise, the quantity, the date of
may be, describing the articles by their mark or otherwise, the exportation, in the name of the vessel of aircraft: Provided,
quantity, the date of exportation, in the name of the vessel of That the waste and by -products incident to the process of
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aircraft: Provided, That the waste and by-products incident to manufacture in said bonded warehouse may be withdrawn for
the process of manufacture in said bonded warehouse may domestic consumption upon payment of duty equal to the duty
be withdrawn for domestic consumption upon payment of duty which would be assessed and collected pursuant to law as if
equal to the duty which would be assessed and collected such waste or by-products were imported from a foreign
pursuant to law as if such waste or by-products were imported country: Provided, further, That all waste materials may be
from a foreign country: Provided, further, That all waste disposed under government supervision. All labor performed
materials may be disposed under government supervision. All and services rendered under these provisions shall be under
labor performed and services rendered under these provisions the supervision of a proper customs officer and at the expense
shall be under the supervision of a proper customs officer and of the manufacturer.
at the expense of the manufacturer.
SEC. 812. Verification by the Commissioner. SEC 2004 Verification by the Commissioner. - A careful En toto
account shall be kept by the Collector of all articles delivered
A careful account shall be kept by the Collector of all articles by him to any bonded manufacturing warehouse, and a sworn
delivered by him to any bonded manufacturing warehouse, monthly return, verified by the customs officer In-charge, shall
and a sworn monthly return, verified by the customs officer-in- be made by the manufacturer containing a detailed statement
charge, shall be made by the manufacturer containing a of all the imported articles used by him in the manufacture of
detailed statement of all imported articles used by him in the the exported articles.
manufacture of the exported articles.
All documents, books and records of accounts concerning the
All documents, books and records of accounts concerning the operation of any bonded manufacturing warehouse shall, upon
operation of any bonded manufacturing warehouse shall, demand, be made available to the Collector or his
upon demand, be made available to the Collector or his representative for examination and/or audit.
representative for examination and/or audit.
Before commencing business the operator of any bonded
Before commencing business the operator of any bonded manufacturing warehouse shall file with the Commissioner a
manufacturing warehouse shall file with the Commissioner a list of all the articles intended to be manufactured in such
list of all the articles intended to be manufactured in such warehouse, and state the formula of manufacture and the
warehouse, and state the formula of manufacture and the names and quantities of the ingredients to be used therein.
names and quantities of the ingredients to be used therein.
CHAPTER 3. FREE ZONES (PEZA ZONES AND New Chapter. Purpose is to recognize
FREEPORT ZONES) in the CTMA the existence of free and
special economic zones.
SEC. 813. FREE ZONES. RKC Specific Annex D Chapter 2 New provision
UNLESS OTHERWISE PROVIDED BY LAW, FREE ZONES, 2. Standard

SUCH AS SPECIAL ECONOMIC ZONES REGISTERED
WITH PEZA UNDER R.A. NO. 7916, DULY CHARTERED OR National legisl ation shall specify the
LEGISLATED FREEPORTS UNDER R.A. NO. 9400, THE requirements relating to the establishment
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CAGAYAN SPECIAL ECONOMIC ZONE AND FREEPORT, of free zones, the kinds of goods
R.A. NO. 7922; AND THE ZAMBOANGA CITY SPECIAL admissible to such zones and the nature
ECONOMIC ZONE, R.A. NO. 7903, AND SUCH OTHER of the operations to which goods may be
FREEPORTS AS MAY HEREINEAFTER BE ESTABLISHED subjected in them.
OR CREATED BY LAW, SHALL NOT BE SUBJECT TO
DUTY AND TAX.
ENTRY INTO SUCH FREE ZONES, WHETHER DIRECTLY

OR THROUGH THE CUSTOMS TERRITORY, SHALL BE
COVERED BY THE NECESSARY TRANSIT PERMIT AND
WITHDRAWAL FROM FREE ZONES INTO THE CUSTOMS
TERRITORY SHALL BE COVERED BY THE NECESSARY
GOODS DECLARATION FOR CONSUMPTION OR FOR
WAREHOUSING.
TRANSFER OF ARTICLES FROM ONE FREE ZONE INTO

ANOTHER FREE ZONE SHALL LIKEWISE BE COVERED
BY THE NECESSARY TRANSIT PERMIT.
CHAPTER 4. STORES New provision. Purpose is to reflect

the standard in the RKC.
SEC. 814. STORES FOR CONSUMPTION. RKC Specific Annex J, Chapter 4 New provision
STORES FOR CONSUMPTION MEANS : E5./ F3.
- ARTICLES INTENDED FOR CONSUMPTION BY stores for consumption means :

THE PASSENGERS AND THE CREW ON BOARD
VESSELS OR AIRCRAFT, WHETHER OR NOT SOLD; AND - goods intended for consumption by the
passengers and the crew on board
- ARTICLES NECESSARY FOR THE OPERATION vessels, aircraft or trains, whether or not
AND MAINTENANCE OF VESSELS OR AIRCRAFT sold; and
INCLUDING FUEL AND LUBRICANTS BUT EXCLUDING
SPARE PARTS AND EQUIPMENT; WHICH ARE EITHER - goods necessary for the operation and
ON BOARD UPON ARRIVAL OR ARE TAKEN ON BOARD maintenance of vessels, aircraft or trains
DURING THE STAY IN THE CUSTOMS TERRITORY OF including fuel and lubricants but excluding
VESSELS OR AIRCRAFT USED, OR INTENDED TO BE spare parts and equipment; which are
USED, IN INTERNATIONAL TRAFFIC FOR THE either on board upon arrival or are taken
TRANSPORT OF PERSONS FOR REMUNERATION OR on board during the stay in the Customs
FOR THE INDUSTRIAL OR COMMERCIAL TRANSPORT OF territory of vessels, aircraft or trains used,
or intended to be used, in international
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GOODS, WHETHER OR NOT FOR REMUNERATION. traffic for the transport of persons for
remuneration or for the industrial or
commercial transport of goods, whether or
not for remuneration;
SEC. 815. STORES TO BE TAKEN AWAY RKC Specific Annex J, Chapter 4 New provision
STORES TO BE TAKEN AWAY MEANS ARTICLESS FOR E6./ F4.

SALE TO THE PASSENGERS AND THE CREW OF
VESSELS AND AIRCRAFT WITH A VIEW TO BEING stores to be taken away means goods for
LANDED, WHICH ARE EITHER ON BOARD UPON sale to the passengers and the crew of
ARRIVAL OR ARE TAKEN ON BOARD DURING THE STAY vessels and aircraft with a view to being
IN THE CUSTOMS TERRITORY OF VESSELS AND landed, which are either on board upon
AIRCRAFT USED, OR INTENDED TO BE USED, IN arrival or are taken on board during the
INTERNATIONAL TRAFFIC FOR THE TRANSPORT OF stay in the Customs territory of vessels
PERSONS FOR REMUNERATION OR FOR THE and aircraft used, or intended to be used,
INDUSTRIAL OR COMMERCIAL TRANSPORT OF GOODS, in international traffic for the transport of
WHETHER OR NOT FOR REMUNERATION. persons for remuneration or for the
industrial or commercial transport of
goods, whether or not for remuneration.
SEC. 816. EXEMPTION FROM DUTIES AND TAXES OF RKC Specific Annex J, Chapter 4 New provision
STORES Standard 15, 16, 17
CUSTOMS TREATMENT OF STORES SHOULD APPLY 15. Standard

EQUALLY, REGARDLESS OF THE COUNTRY OF
REGISTRATION OR OWNERSHIP OF VESSELS, Vessels and aircraft which depart for an
AIRCRAFT. STORES WHICH ARE CARRIED IN A VESSEL ultimate foreign destination shall be
OR AIRCRAFT ARRIVING IN THE CUSTOMS TERRITORY entitled to take on board, exempted from
SHALL BE EXEMPTED FROM IMPORT DUTIES AND duties and taxes:
TAXES PROVIDED THAT THEY REMAIN ON BOARD.
STORES FOR CONSUMPTION BY THE PASSENGERS a. stores in such quantities as the
AND THE CREW IMPORTED AS PROVISIONS ON Customs deem reasonable having regard
INTERNATIONAL EXPRESS VESSELS OR AIRCRAFTS to the number of the passengers and the
SHOULD BE EXEMPTED FROM IMPORT DUTIES AND crew, to the length of the voyage or flight
TAXES PROVIDED THAT: and to any quantities of such stores
already on board; and
SUCH GOODS ARE PURCHASED ONLY IN THE
COUNTRIES CROSSED BY THE INTERNATIONAL VESELS b. stores for consumption
AND AIRCRAFTS IN QUESTION; AND necessary for their operation and
maintenance, in such quantities as are
135
ANY DUTIES AND TAXES CHARGEABLE ON SUCH deemed reasonable for operation and
GOODS IN THE COUNTRY WHERE THEY WERE maintenance during the voyage or flight
PURCHASED ARE PAID. having regard also to any quantities of
such stores already on board.
STORES FOR CONSUMPTION NECESSARY FOR THE
OPERATION AND MAINTENANCE OF VESSELS AND 16. Standard
AIRCRAFT WHICH ARE ON BOARD THESE MEANS OF
TRANSPORT ARRIVING IN THE CUSTOMS TERRITORY Replenishment of stores exemp ted from
SHALL BE EXEMPTED FROM IMPORT DUTIES AND duties and taxes shall be allowed for
TAXES PROVIDED THAT THEY REMAIN ON BOARD vessels and aircraft which have arrived in
WHILE THESE MEANS OF TRANSPORT ARE IN THE the Customs territory and which need to
CUSTOMS TERRITORY. replenish their stores for the journey to
their final destination in the Customs
CUSTOMS SHALL ALLOW THE ISSUE OF STORES FOR territory.
CONSUMPTION ON BOARD DURING THE STAY OF A
VESSEL IN THE CUSTOMS TERRITORY IN SUCH 17. Standard
QUANTITIES AS THE CUSTOMS DEEM REASONABLE
HAVING REGARD TO THE NUMBER OF THE The Customs shall allow stores for
PASSENGERS AND THE CREW AND TO THE LENGTH OF consumption supplied to vessels and
THE STAY OF THE VESSEL IN THE CUSTOMS aircraft during their stay in the Customs
TERRITORY. CUSTOMS SHOULD ALLOW THE ISSUE OF territory to be issued under the same
STORES FOR CONSUMPTION ON BOARD BY THE CREW conditions as are applicable in this
WHILE THE VESSEL IS UNDERGOING REPAIRS IN A Chapter to stores for consumption held on
DOCK OR SHIPYARD, PROVIDED THAT THE STAY IN A board arriving vessels and aircraft.
DOCK OR SHIPYARD IS CONSIDERED TO BE OF
REASONABLE DURATION.
WHEN AN AIRCRAFT IS TO LAND AT ONE OR MORE

AIRPORTS IN THE CUSTOMS TERRITORY, CUSTOMS
SHOULD ALLOW THE ISSUE OF STORES FOR
CONSUMPTION ON BOARD BOTH DURING THE STAY OF
THE AIRCRAFT AT SUCH INTERMEDIATE AIRPORTS AND
DURING ITS FLIGHT BETWEEN SUCH AIRPORTS.
CUSTOMS SHALL REQUIRE THE CARRIER TO TAKE

APPROPRIATE MEASURES TO PREVENT ANY
UNAUTHORIZED USE OF THE STORES INCLUDING
SEALING OF THE STORES, WHEN NECESSARY. THE
CUSTOMS SHALL REQUIRE THE REMOVAL OF STORES
FROM THE VESSEL OR AIRCRAFT FOR STORAGE
ELSEWHERE DURING THEIR STAY IN THE CUSTOMS
136
TERRITORY ONLY WHEN THEY CONSIDER IT
NECESSARY.
VESSELS AND AIRCRAFT WHICH DEPART FOR AN

ULTIMATE FOREIGN DESTINATION SHALL BE ENTITLED
TO TAKE ON BOARD, EXEMPTED FROM DUTIES AND
TAXES:
STORES IN SUCH QUANTITIES AS THE CUSTOMS DEEM

REASONABLE HAVING REGARD TO THE NUMBER OF
THE PASSENGERS AND THE CREW, TO THE LENGTH OF
THE VOYAGE OR FLIGHT AND TO ANY QUANTITIES OF
SUCH STORES ALREADY ON BOARD; AND
STORES FOR CONSUMPTION NECESSARY FOR THEIR

OPERATION AND MAINTENANCE, IN SUCH QUANTITIES
AS ARE DEEMED REASONABLE FOR OPERATION AND
MAINTENANCE DURING THE VOYAGE OR FLIGHT
HAVING REGARD ALSO TO ANY QUANTITIES OF SUCH
STORES ALREADY ON BOARD.
REPLENISHMENT OF STORES EXEMPTED FROM DUTIES

AND TAXES SHALL BE ALLOWED FOR VESSELS AND
AIRCRAFT 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. THE
CUSTOMS SHALL ALLOW STORES FOR CONSUMPTION
SUPPLIED TO VESSELS AND AIRCRAFT DURING THEIR
STAY IN THE CUSTOMS TERRITORY TO BE ISSUED
UNDER THE SAME CONDITIONS AS ARE APPLICABLE IN
THIS CHAPTER TO STORES FOR CONSUMPTION HELD
ON BOARD ARRIVING VESSELS AND AIRCRAFT.
SEC. 817. GOODS DECLARATION FOR STORES Lifted from RKC Specific Annex J, Chapter New provision
4, Standards 1 to 20.
WHEN A DECLARATION CONCERNING STORES ON
BOARD VESSELS ARRIVING IN THE CUSTOMS 1. Standard
TERRITORY IS REQUIRED BY THE CUSTOMS, THE
INFORMATION REQUIRED SHALL BE KEPT TO THE Customs treatment of stores shall be
MINIMUM NECESSARY FOR THE PURPOSES OF governed by the provisions of this Chapter
137
CUSTOMS CONTROL. and, insofar as applicable, by the
provisions of the General Annex.
THE QUANTITIES OF STORES WHICH ARE ALLOWED BY
THE CUSTOMS TO BE ISSUED FROM THE STORES HELD 2. Recommended Practice
ON BOARD SHOULD BE RECORDED ON THE
DECLARATION CONCERNING STORES PRODUCED TO Customs treatment of stores should apply
THE CUSTOMS UPON ARRIVAL OF THE VESSEL IN THE equally, regardless of the country of
CUSTOMS TERRITORY AND NO SEPARATE FORM registration or ownership of vessels,
SHOULD BE REQUIRED TO BE LODGED WITH THE aircraft or trains.
CUSTOMS IN RESPECT THEREOF. THE QUANTITIES OF
STORES WHICH ARE SUPPLIED TO VESSELS DURING Stores on board arriving vessels, aircraft
THEIR STAY IN THE CUSTOMS TERRITORY SHOULD BE or trains
RECORDED ON ANY DECLARATION CONCERNING
(a) Exemption from import duties and
STORES WHICH HAS BEEN REQUIRED BY CUSTOMS.
taxes
CUSTOMS SHALL NOT REQUIRE THE PRESENTATION
3. Standard
OF A SEPARATE DECLARATION OF STORES REMAINING
ON BOARD AIRCRAFT. NO SEPARATE DECLARATION Stores which are carried in a vessel or
CONCERNING STORES SHOULD BE REQUIRED UPON aircraft arriving in the Customs territory
DEPARTURE OF VESSELS FROM THE CUSTOMS shall be exempted from import duties and
TERRITORY. WHEN A DECLARATION IS REQUIRED taxes provided that they remain on board.
CONCERNING STORES TAKEN ON BOARD VESSELS OR
AIRCRAFT UPON DEPARTURE FROM THE CUSTOMS 4. Recommended Practice
TERRITORY, THE INFORMATION REQUIRED SHALL BE
KEPT TO THE MINIMUM NECESSARY FOR THE Stores for consumption by the passengers
PURPOSE OF CUSTOMS CONTROL. and the crew imported as provisions on
international express trains should be
STORES ON BOARD VESSELS AND AIRCRAFT HAVING exempted from import duties and taxes
ARRIVED IN THE CUSTOMS TERRITORY SHALL BE provided that:
ALLOWED:
a. such goods are purchased only
TO BE CLEARED FOR HOME USE OR TO BE PLACED in the countries crossed by the
UNDER ANOTHER CUSTOMS PROCEDURE, SUBJECT TO international train in question; and
COMPLIANCE WITH THE CONDITIONS AND
FORMALITIES APPLICABLE IN EACH CASE; OR b. any duties and taxes
chargeable on such goods in the country
SUBJECT TO PRIOR AUTHORIZATION BY THE CUSTOMS, where they were purchased are paid.
TO BE TRANSFERRED RESPECTIVELY TO OTHER
VESSELS OR AIRCRAFT IN INTERNATIONAL TRAFFIC. 5. Standard
Stores for consumption necessary for the

138
operation and maintenance of vessels,
aircraft and trains which are on board
these means of transport arriving in the
Customs territory shall be exempted from
import duties and taxes provided that they
remain on board while these means of
transport are in the Customs territory.
(b) Documentation
6. Standard
When a declaration concerning stores on

board vessels arriving in the Customs
territory is required by the Customs, the
information required shall be kept to the
minimum necessary for the purposes of
Customs control.
The quantitie s of stores which are allowed

by the Customs to be issued from the
stores held on board should be recorded
on the declaration concerning stores
produced to the Customs upon arrival of
the vessel in the Customs territory and no
separate form should be required to be
lodged with the Customs in respect
thereof.
The quantities of stores which are supplied

to vessels during their stay in the Customs
territory should be recorded on any
declaration concerning stores which has
been required by the Customs.
9. Standard
139
The Customs shall not require the
presentation of a separate declaration of
stores remaining on board aircraft.
(c) Issue of stores for consumption
10. Standard
The Customs shall allow the issue of

stores for consumption on board during
the stay of a vessel in the Customs
territory in such quantities as the Customs
deem reasonable having regard to the
number of the passengers and the crew
and to the length of the stay of the vessel
in the Customs territory.
The Customs should allow the issue of

stores for consumption on board by the
crew while the vessel is undergoing
repairs in a dock or shipyard, provided that
the stay in a dock or shipyard is
considered to be of reasonable duration.
When an aircraft is to land at one or more

airports in the Customs territory, the
Customs should allow the issue of stores
for consumption on board both during the
stay of the aircraft at such intermediate
airports and during its flight between such
airports.
(d) Customs control
13. Standard
The Customs shall require the carrier to
140
take appropriate measures to prevent any
unauthorized use of the stores including
sealing of the stores, when necessary.
14. Standard
The Customs shall require the removal of

stores from the vessel, aircraft or train for
storage elsewhere during their stay in the
Customs territory only when they consider
it necessary.
Supply of stores exempted from duties

and taxes
15. Standard
Vessels and aircraft which depart for an

ultimate foreign destination shall be
entitled to take on board, exempted from
duties and taxes:
a. stores in such quantities as the

Customs deem reasonable having regard
to the number of the passengers and the
crew, to the length of the voyage or flight
and to any quantities of such stores
already on board; and
b. stores for consumption

necessary for their operation and
maintenance, in such quantities as are
deemed reasonable for operation and
maintenance during the voyage or flight
having regard also to any quantities of
such stores already on board.
16. Standard
Replenishment of stores exemp ted from

duties and taxes shall be allowed for
141
vessels and aircraft 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.
17. Standard
The Customs shall allow stores for

consumption supplied to vessels and
aircraft during their stay in the Customs
territory to be issued under the same
conditions as are applicable in this
Chapter to stores for consumption held on
board arriving vessels and aircraft.
Departure
No separate declaration concerning stores

should be required upon departure of
vessels from the Customs territory.
19. Standard
When a declaration is required concerning

stores taken on board vessels or aircraft
upon departure from the Customs territory,
the information required shall be kept to
the minimum necessary for the purpose of
Customs control.
Other disposal of stores
20. Standard
Stores on board vessels, aircraft and

trains having arrived in the Customs
territory shall be allowed:
a. to be cleared for home use or

142
to be placed under another Customs
procedure, subject to compliance with the
conditions and formalities applicable in
each case; or
b. subject to prior authorization by

the Customs, to be transferred
respectively to other vessels, aircraft or
trains in international traffic.
TITLE 9. DRAWBACK AND REFUND
CHAPTER 1. DRAWBACK
SEC. 900. Basis of Duty Drawback. SEC 106 Drawbacks. En toto
On Fuel Used for Propulsion of Vessels. - On all fuel imported a. On Fuel Used for Propulsion of Vessels. On all fuel
into the Philippines used for propulsion of vessels engaged in imported into the Philippines used for propulsion of vessels
trade with foreign countries, or in the coastwise trade, a engaged in trade with foreign countries, or in the coastwise
refund or tax credit shall be allowed not exceeding ninety-nine trade, a refund or tax credit shall be allowed not exceeding
(99) per cent of the duty imposed by law upon such fuel, ninety nine (99) per cent of the duty imposed by law upon such
which shall be paid or credited under such rules and fuel, which shall be paid or credited u rider such rules and
regulations as maybe prescribed by the Commissioner of regulations as maybe prescribed by the Commissioner of
Customs with the approval of the Secretary of Finance. Customs with the approval of the Secretary of Finance.
On Petroleum Oils and Oils Obtained from Bituminous b. On Petroleum Oils and Oils Obtained from
Minerals, Crude Eventually Used for Generation of Electric Bituminous Minerals, Crude Eventually Used for Generation of
Power and for the Manufacture of City Gas. - On petroleum Electric Power and for the Manufacture of City Gas. On
oils and oils obtained from bituminous materials, crude oils petroleum oils and oils obtained from bituminous materials,
imported by non-electric utilities, sold directly or indirectly, in crude oils imported by non electric utilities, sold directly or
the same form or after processing, to electric utilities for the indirectly, in the same form or after processing, to electric
generation of electric power and for the manufacture of city utilities for the generation of electric power and for the
gas, a refund or tax credit shall be allowed not exceeding fifty manufacture of city gas, a refund or tax credit shall be allowed
per cent (50%) of the duty imposed by law upon such oils, not exceeding fifty per cent (50%) of the duty imposed by law
which shall be paid or credited under such rules and upon such oils, which shall be paid or credited under such
regulations as may be prescribed by the Commissioner of rules and regulations as may be prescribed by the
Customs with the approval of the Secretary of Finance. Commissioner of Customs with the approval of the Secretary of
Finance.
On Articles made from Imported Materials. - Upon exportation
of articles manufactured or produced in the Philippines, c. On Articles made from Imported Materials. Upon
including the packing, covering, putting up, marking or exportation of articles manufactured or produced in the
143
labeling thereof either in whole or in part of imported materials Philippines, including the packing, covering, putting up,
for which duties have been paid, refund or tax credit shall be marking or labeling thereof either in whole or in part of
allowed for the duties paid on the imported materials so used imported materials for which duties have been paid, refund or
including the packing, covering, putting up, marking or tax credit shall be allowed for the duties paid on the imported
labeling thereof, subject to the following conditions: materials so used including the packing, covering, putting up,
marking or labeling thereof, subject to the following conditions:
1. The actual use of the imported materials in the production
of manufacture of the article exported with their quantity, 1. The actual use of the imported materials in the
value, and amount of duties paid thereon, having been production of manufacture of the article exported with their
established; quantity, value, and amount of duties paid thereon, having
been established;
2. The duties refunded or credited shall not exceed
one hundred (100) percent of duties paid on the imported 2. The duties refunded or credited shall not exceed
materials used; one hundred (100) per cat of duties paid on the imported
materials used;
3. There is no determination by the National
Economic and Development Authority of the requirement for 3. There is no determination by the National Economic
certification on non-availability of locally-produced or and Development Authority of the requirement for certification
manufactured competitive substitutes for the imported on non availability of locally produced or manufactured
materials used at the time of importation: competitive substitutes for the imported materials used at the
time of importation:
4. The exportation shall be made within one (1) year
after the importation of materials used and claim of refund or 4. The exportation shall be made within one (1) year
tax credit shall be filed within six (6) months from the date of after the importation of materials used and claim of refund or
exportation; tax credit shall be filed within six (6) months from the date of
exportation;
5 When two or more products result from the use of
the same imported materials, an apportionment shall be made 5 When two or more products result from the use of
on its equitable basis. the same imported materials, an apportionment shall be made
on its equitable basis.
For every application of a drawback, there shall be paid to and
collected by the Bureau of Customs as filing, processing and For every application of a drawback, there shall be paid to and
supervision fees the sum of Five Hundred Pesos (500.00) collected by the Bureau of Customs as filing, processing and
which amount may be increased or decreased when the need supervision fees the sum of Five Hundred Pesos (500.00)
arises by the Secretary of Finance upon the recommendation which amount may be increased or decreased when the need
of the Commissioner of Customs. arises by the Secretary of Finance upon the recommendation
of the Commissioner of Customs.
Payment of Partial Drawbacks. - The Secretary of Finance
may, upon recommendation of the Commissioner of Customs, d. Payment of Partial Drawbacks. The Secretary of
promulgate rules and regulations allowing partial payments of Finance may, upon recommendation of the Commissioner of
Customs, promulgate rules and regulations allowing partial
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drawbacks under this section. payments of drawbacks under this section.
Payment of the Drawbacks. - Claims for refund or tax credit e. Payment of the Drawbacks. Claims for refund or
eligible for such benefits shall be paid or granted by the tax credit eligible for such benefits shall be paid or granted by
Bureau of Customs to claimants within sixty (60) days after the Bureau of Customs to claimants within sixty (60) days after
receipt of properly accomplished claims: Provided, That a receipt of properly accomplished claims: Provided, That a
registered enterprise under Republic Act Number Fifty-one registered enterprise under Republic Act Number Fifty one
hundred and eighty-six or Republic Act Numbered Sixty-one hundred and eighty six or Republic Act Numbered Sixty one
hundred and thirty five which has previously enjoyed tax credit hundred and thirty five which has previously enjoyed tax credit
based on customs duties paid on imported raw materials and based on customs duties paid on imported raw materials and
supplies, shall not be entitled to drawback under this section, supplies, shall not be entitled to drawback under this section,
with respect to the same importation subsequently processed with respect to the same importation subsequently processed
and re-exported: Provided, further, That if as a result of the and re exported: Provided, further, That if as a result of the
refund or tax credit by way of drawback of customs duties, refund or tax credit by way of drawback of customs duties,
there would necessarily result a corresponding refund or there would necessarily result a corresponding refund or credit
credit of internal revenue taxes on the same importation, the of internal revenue taxes on the same importation, the
Collector of Customs shall likewise certify the same to the Collector of Customs shall likewise certify the same to the
Commissioner of Customs who shall cause the said refund or Commissioner of Customs who shall cause the said refund or
tax credit of internal revenue taxes to be paid, refunded or tax credit of internal revenue taxes to be paid, refunded or
credited in favor of the importer, with advice to the credited in favor of the importer, with advice to the
Commissioner of Internal Revenue. Commissioner of Internal Revenue.
SEC. 901. PRESCRIPTION OF DRAWBACK CLAIM. New provision. Prescriptive period for
drawback claim was provided for
ALL CLAIMS AND APPLICATION FOR DRAWBACK SHALL administrative convenience and to
PRESCRIBE IF THE CLAIM IS NOT FILED WITHIN 1 YEAR prevent abuse in case of claims dating
FROM DATE OF IMPORTATION IN CASE OF PARAGRAPH back in time.
1 AND 2 OF THE PRECEEDING SECTION AND WITHIN 1
YEAR FROM DATE OF EXPORTATION IN CASE OF
PARAGRAPH 3 OF THE PRECEEDING SECTION.
CHAPTER 2. ABATEMENT AND REFUND
SEC. 902. Abatement for Damage Incurred During SEC 1701 Abatement for Damage Incurred During Voyage. - En toto
Voyage. Except as herein specially provided, no abatement of duties
shall be made on account of damage incurred or deterioration
Except as herein specially provided, no abatement of duties suffered during the voyage of importation; and duties will be
shall be made on account of damage incurred or deterioration assessed on the actual quantity imported, as shown by the
suffered during the voyage of importation; and duties will be return of weighers, gauges, measurers, examiners or
assessed on the actual quantity imported, as shown by the appraisers, as the case may be.
return of weighers, gauges, measurers, examiners or
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appraisers, as the case may be.
SEC. 903. Abatement or Refund of Duty on Missing SEC 1702 Abatement or Refund of Duty on Missing Package. - En toto
Package. When any package or packages appearing on the manifest or
bill of lading are missing, an abatement or refund of the duty
When any package or packages appearing on the manifest or thereon and shall be made if it is certified, under penalties of
bill of lading are missing, an abatement or refund of the duty falsification or perjury, by the importer or consignee, and upon
thereon and shall be made if it is certified, under penalties of production of proof satisfactory to the Collector that the
falsification or perjury, by the importer or consignee, and upon package or packages in question have not been imported in to
production of proof satisfactory to the Collector that the the Philippines contrary to law.
package or packages in question have not been imported in to
the Philippines contrary to law.
SEC. 904. Abatement or Refund for Deficiency in SEC 1703 Abatement or Refund for Deficiency in Contents of En toto
Contents of Packages. Packages. - If, upon opening any package, a deficiency or
absence of any article or of part of the contents thereof as
If, upon opening any package, a deficiency or absence of any called for by the invoice shall be found to exist, such deficiency
article or of part of the contents thereof as called for by the shall be certified, under penalties of falsification or perjury , to
invoice shall be found to exist, such deficiency shall be the Collector by the examiner and appraiser; and upon the
certified, under penalties of falsification or perjury, to the production of proof satisfactory to the Collector showing that
Collector by the examiner and appraiser; and upon the the shortage occurred before the arrival of the article in the
production of proof satisfactory to the Collector showing that Philippines, the proper abatement or refund of the duty shall be
the shortage occurred before the arrival of the article in the made.
Philippines, the proper abatement or refund of the duty shall
be made.
SEC. 905. Abatement or Refund of Duties on Articles SEC 1704 Abatement or Refund of Duties on Articles Lost or En toto
Lost or Destroyed After Arrival. Destroyed After Arrival. - A Collector may abate or refund the
amount of duties accruing or paid, and may likewise make a
A Collector may abate or refund the amount of duties accruing corresponding allowance on the irrevocable domestic letter of
or paid, and may likewise make a corresponding allowance on credit, bank guarantee, or the entry bond or other document
the irrevocable domestic letter of credit, bank guarantee, or upon satisfactory proof of injury, destruction, or loss by theft,
the entry bond or other document upon satisfactory proof of fire or other causes of any article as follow:
injury, destruction, or loss by theft, fire or other causes of any
article as follow: a. While within the limits of any port of entry prior to
unlading under customs supervisions;
While within the limits of any port of entry prior to unlading
under customs supervisions; b. While remaining in customs custody after unlading;
While remaining in customs custody after unlading; c. While in transit under irrevocable domestic letter of
credit, bank guarantee or bond with formal entry in accordance
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While in transit under irrevocable domestic letter of credit, with section one thousand three hundred two from the port of
bank guarantee or bond with formal entry in accordance with entry to any port in the Philippines;
Section 401 from the port of entry to any port in the
Philippines; d. While released under irrevocable domestic letter of
credit, bank guarantee or bond for export except in case of loss
While released under irrevocable domestic letter of credit, by theft.
bank guarantee or bond for export except in case of loss by
theft.
SEC. 906. ABATEMENT AND REFUND OF DEFECTIVE RKC GA Standard 4.19. New provision. A new provision on
ARTICLES abatement for defective articles is
4.19. Standard provided to reflect the RKC standard.
UNDER SAFETY GUIDELINES TO BE SET BY THE
COMMISSIONER OF CUSTOMS WITH THE APPROVAL OF Repayment shall be granted in respect of
THE SECRETARY OF FINANCE, REFUND SHALL BE imported or exported goods which are
GRANTED IN RESPECT OF IMPORTED OR EXPORTED found to have been defective or otherwise
GOODS WHICH ARE FOUND TO HAVE BEEN DEFECTIVE not in accordance with the agreed
OR OTHERWISE NOT IN ACCORDANCE WITH THE specifications at the time of importation or
AGREED SPECIFICATIONS AT THE TIME OF exportation and are returned either to the
IMPORTATION OR EXPORTATION AND ARE RETURNED supplier or to another person designated
EITHER TO THE SUPPLIER OR TO ANOTHER PERSON by the supplier, subject to the following
DESIGNATED BY THE SUPPLIER, SUBJECT TO THE conditions:
FOLLOWING CONDITIONS:
THE GOODS HAVE NOT BEEN WORKED, REPAIRED OR worked, repaired or used in the country of
USED IN THE COUNTRY OF IMPORTATION, AND ARE RE- importation, and are re-exported within a
EXPORTED WITHIN A REASONABLE TIME; reasonable time;
THE GOODS HAVE NOT BEEN WORKED, REPAIRED OR the goods have not been
USED IN THE COUNTRY TO WHICH THEY WERE worked, repaired or used in the country to
EXPORTED, AND ARE RE-IMPORTED WITHIN A which they
REASONABLE TIME.
USE OF THE GOODS SHALL, HOWEVER, NOT HINDER a reasonable time.
THE REFUND IF SUCH USE WAS INDISPENSABLE TO
DISCOVER THE DEFECTS OR OTHER CIRCUMSTANCES Use of the goods shall, however, not
WHICH CAUSED THE REEXPORTATION OR RE- hinder the repayment if such use was
IMPORTATION OF THE GOODS. indispensable to discover the defects or
AS AN ALTERNATIVE TO RE-EXPORTATION OR RE- reexportation or re-importation of the
IMPORTATION, THE GOODS MAY BE EXPRESSLY
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ABANDONED OR DESTROYED OR RENDERED goods.
COMMERCIALLY VALUELESS UNDER CUSTOMS
CONTROL, AS THE CUSTOMS MAY DECIDE. SUCH As an alternative to re-exportation or re-
ABANDONMENT OR DESTRUCTION SHALL NOT ENTAIL importation, the goods may be abandoned
ANY COST TO THE CUSTOMS. to the Revenue or destroyed or rendered
SEC. 907. Abatement of Duty on Dead or Injured Animals. SEC 1705 Abatement of Duty on Dead or Injured Animals. - En toto
Where it is certified, under penalties of falsification or perjury,
Where it is certified, under penalties of falsification or perjury, and upon production of proof satisfactory to the Collector that
and upon production of proof satisfactory to the Collector that an animal which is the subject of importation dies or suffers
an animal which is the subject of importation dies or suffers injury before arrival, or while in customs custody, the duty shall
injury before arrival, or while in customs custody, the duty be correspondingly abated by him, provide the carcass of any
shall be correspondingly abated by him, provide the carcass dead animal remaining on board or in customs custody be
of any dead animal remaining on board or in customs custody removed in the manner required by the Collector and at the
be removed in the manner required by the Collector and at the expense of the importer.
expense of the importer.
SEC. 908. Investigation Required in Case of Abatements SEC 1706 Investigation Required in Case of Abatements and Provision is amended to exclude
and Refunds. Refunds. - The Collector shall, in all cases of allowances, bonded warehouse from the
abatements, or refunds of duties, cause an examination or exceptionary clause covering non-
The Collector shall, in all cases of allowances, abatements, or report in writing to be made as to any fact discovered during abatement or no-refund when loss or
refunds of duties, cause an examination or report in writing to such examination which tends to account for the discrepancy destruction occurs in bonded public or
be made as to any fact discovered during such examination or difference and cause the corresponding adjustment to be private warehouse. The amendment
which tends to account for the discrepancy or difference and made on the import entry: Provided, That no abatement or was recommended by Philexport on
cause the corresponding adjustment to be made on the refund of duties, taxes and other charges shall be allowed on the argument that the bonded
GOODS DECLARATION: Provided, That no abatement or articles lost or destroyed in bonded public or private warehouse is still within customs
refund of duties, taxes and other charges shall be allowed on warehouses outside customs zone. custody and therefore any loss or
articles lost or destroyed in public or private warehouses destruction occurring therein should be
outside customs zone. the responsibility not only of the
operator but of customs as well.
SEC. 909. Correction of Errors. - Refund of Excess SEC 1707 Correction of Errors. - Refund of Excess Payments. En toto
Payments. - Manifest clerical errors made in an invoice or entry, errors in
return of weight, measure and gauge, when duly certified to,
Manifest clerical errors made in an invoice or entry, errors in under penalties of falsification or perjury, by the surveyor or
return of weight, measure and gauge, when duly certified to, examining official (when there are such officials at the port),
under penalties of falsification or perjury, by the surveyor or and errors in the distribution of charges on invoices not
148
examining official (when there are such officials at the port), involving any question of law and certified to, under penalties
and errors in the distribution of charges on invoices not of falsification or perjury, by the examining official, may be
involving any question of law and certified to, under penalties corrected in the computation of duties, if such errors be
of falsification or perjury, by the examining official, may be discovered before the payments of duties, or if discovered
corrected in the computation of duties, if such errors be within one year after the final liquidation, upon written request
discovered before the payments of duties, or if discovered and notice of error from the importer, or upon statement of
within one year after the final liquidation, upon written request error certified by the Collector.
and notice of error from the importer, or upon statement of
error certified by the Collector. For the purpose of correcting errors specified in the next
preceding paragraph the Collector is authorized to reliquidate
For the purpose of correcting errors specified in the next entries and collect additional charges, or to make refunds on
preceding paragraph the Collector is authorized to reliquidate statement of errors within the statutory time limit.
entries and collect additional charges, or to make refunds on
statement of errors within the statutory time limit.
SEC. 910. Claim for Refund of Duties and Taxes. SEC1708 Claim for Refund of Duties and Taxes and Mode of RKC GA Standards 4.18 to 4.24 on Provision amended to delete and
Payment. - All claims for refund of duties shall be made in Repayment second paragraph of Section 1708
All claims for refund of duties shall be made in writing and writing and forwarded to the Collector to whom such duties are TCCP and insert the word and taxes
forwarded to the Collector to whom such duties are paid, who paid, who upon receipt of such claim, shall verify the same by 4.18. Standard after duties in the first paragraph to
upon receipt of such claim, shall verify the same by the the records of his Office, and if found to be correct and in simplify process and consolidate
records of his Office, and if found to be correct and in accordance with law, shall certify the same to the Repayment shall be granted where it is refund function in favour of the
accordance with law, shall certify the same to the Commissioner with his recommendation together with all established that duties and taxes have Bureau. Also a prescriptive period of
Commissioner with his recommendation together with all necessary papers and documents. Upon receipt by the been overcharged as a result of an error in one year is set for administrative
necessary papers and documents. Upon receipt by the Commissioner of such certified claim he shall cause the same their assessment. expedience and prevent abuse against
Commissioner of such certified claim he shall cause the same to be paid if found correct. old claims.
to be paid if found correct. 4.19. Standard
If a result of the refund of customs duties there would
ALL CLAIMS AND APPLICATION FOR REFUND UNDER Repayment shall be granted in respect of
necessarily result a corresponding refund of internal revenue
THIS CHAPTER SHALL PRESCRIBE IF THE PROPERLY imported or exported goods which are
taxes on the same importation, the Collector shall likewise
ACCOMPLISHED CLAIM IS NOT FILED WITHIN ONE (1) found to have been defective or otherwise
certify the same to the Commissioner who shall cause the said
YEAR FROM DATE OF IMPORTATION. not in accordance with the agreed
taxes to be paid, refunded, or tax credited in favor of the
specifications at the time of importation or
importer, with advice to the Commissioner of Internal Revenue.
exportation and are returned either to the
supplier or to another person designated
by the supplier, subject to the following
conditions:

worked, repaired or used in the country of
importation, and are re-exported within a
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reasonable time;

worked, repaired or used in the country to
which they

a reasonable time.
Use of the goods shall, however, not

hinder the repayment if such use was
indispensable to discover the defects or
reexportation or re-importation of the
goods.
As an alternative to re-exportation or re-

importation, the goods may be abandoned
to the Revenue or destroyed or rendered
Where permission is given by the Customs

for goods originally declared for a
Customs procedure with payment of duties
and taxes to be placed under another
Customs procedure, repayment shall be
made of any duties and taxes charged in
excess of the amount due under the new
procedure.
4.21. Standard
Decisions on claims for repayment shall

be reached, and notified in writing to the
persons concerned, without undue delay,
and repayment of amounts overcharged
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shall be made as soon as possible after
the verification of claims.
4.22. Standard
Where it is established by the Customs

that the overcharge is a result of an error
on the part of the Customs in assessing
the duties and taxes, repayment shall be
made as a matter of priority.
4.23. Standard
Where time limits are fixed beyond which

claims for repayment will not be accepted,
such limits shall be of sufficient duration to
take account of the differing circumstances
pertaining to each type of case in which
repayment may be granted.
4.24. Standard
Repayment shall not be granted if the

amount involved is less than the minimum
amount specified in national legislation.
TITLE 10. ADMINISTRATIVE AND JUDICIAL

PROCEDURES
CHAPTER 1. EXERCISE OF POLICE AUTHORITY
SEC. 1000. Persons Having Police Authority. SEC 2203 Persons Having Police Authority. - For the Provision amended to include other
enforcement of the tariff and customs laws, the following persons who can exercise Police
For the enforcement of the tariff and customs laws, the persons are authorized to effect searches, seizures and arrests Authority as deputized by the
following persons are authorized to effect searches, seizures conformably with the provisions of said laws. Commissioner. This is in recognition of
and arrests conformably with the provisions of said laws. the creation of task forces on customs
a. Officials of the Bureau of Customs, district by the President every now and then.
Officials of the Bureau of Customs, district collectors, deputy collectors, deputy collectors, police officers, agents, inspectors What is stressed in the law is the need
collectors, police officers, agents, inspectors and guards of and guards of the Bureau of Customs; for these persons to be deputized by
the Bureau of Customs; the Commissioner of Customs as a
b. Officers of the Philippine Navy and other members statutory requirement for the exercise
Officers and members of the Armed Forces of the
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Philippines and national law enforcement agencies when of the Armed Forces of the Philippines and national law of police powers.
authorized by the Commissioner; enforcement agencies when authorized by the Commissioner;
Officials of the Bureau of Internal Revenue on all cases falling c. Officials of the Bureau of Internal Revenue on all
within the regular performance of their duties, when the cases falling within the regular performance of their duties,
payment of internal revenue taxes is involved; when the payment of internal revenue taxes are involved;
Officers generally empowered by law to effect arrests and d. Officers generally empowered by law to effect
execute processes of courts, when acting under the direction arrests and execute processes of courts, when acting under
of the Collector; the direction of the Collector.
OFFICERS OF OTHER GOVERNMENT AGENCIES DULY In order to avoid conflicts, and insure coordination among
DEPUTIZED BY THE COMMISSIONER OF CUSTOMS. these persons having authority to effect searches, seizures
and arrests for the effective enforcement of, and conformably
ALL OFFICERS AUTHORIZED OR DEPUTIZED BY THE with tariff and customs laws, the Secretary of Finance, shall,
COMMISSIONER TO EXERCISE POLICE AUTHORITY subject to the approval of the President of the Philippines,
SHALL AT ALL TIMES COORDINATE WITH THE LATTER. define the scope, areas covered, procedures and conditions
governing the exercise of such police authority including
In order to avoid conflicts, and insure coordination among custody and responsibility for the goods seized. The rules and
these persons having authority to effect searches, seizures regulations to this effect shall be furnished to all the
and arrests for the effective enforcement of, and conformably government agencies and personnel concerned for their
with CUSTOMS AND tariff laws, the Secretary of Finance, guidance and compliance, and shall be published in a
shall, subject to the approval of the President of the newspaper of general circulation.
Philippines, define the scope, areas covered, procedures and
conditions governing the exercise of such police authority
including custody and responsibility for the goods seized. The
rules and regulations to this effect shall be furnished to all the
government agencies and personnel concerned for their
guidance and compliance, and shall be published in a
newspaper of general circulation.
SEC. 1001. Place Where Authority May be Exercised. SEC 2204 Place Where Authority May be Exercised. - All Provision amended to provide
persons conferred with powers in the preceding section may Customs unhampered access to all
All persons conferred with powers in the preceding section exercise the same at any place within the jurisdiction of the premises of the Customs Zone within
may exercise the same at any place within the jurisdiction of Bureau of Customs. the jurisdiction of Port authorities and
the Bureau of Customs. allowing BOC to exercise Police
Authority within Freeport zone subject
to proper coordination with the
governing authority of the zone. It also
THE BUREAU OF CUSTOMS SHALL EXERCISE POLICE
enable the Commissioner of Customs
AUTHORITY IN ALL AREAS DEFINED IN SECTION 300 OF
to sit as ex-oficio member of the board
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THIS ACT. PORT AUTHORITIES SHALL PROVIDE of free and special economic zone
AUTHORIZED CUSTOMS OFFICIALS WITH UNHAMPERED authorities. Rationale: to provide legal
ACCESS TO ALL PREMISES OF THE CUSTOMS ZONE basis for cooperation between
WITHIN THEIR ADMINISTRATIVE JURISDICTION. customs and free zones in effectively
implementing customs and free zone
.THE BUREAU OF CUSTOMS MAY EXERCISE laws alike in as much as their
OVERSIGHT POLICE AUTHORITY IN ECONOMIC OR operations and concerns are closely
FREE PORT ZONE SUBJECT TO PROPER interlinked.
COORDINATION WITH THE GOVERNING AUTHORITY OF
THE ZONE. FOR THIS PURPOSE, TO ENSURE
CONSISTENCY AND HARMONY IN THE FORMULATION
AND IMPLEMENTATION OF CUSTOMS POLICIES
AFFECTING THE ZONE, THE COMMISSIONER OF
CUSTOMS SHALL SIT AS AN EX-OFICIO MEMBER OF
THE BOARD OF DIRECTORS OF ALL ECONOMIC OR
FREEPORT ZONE AUTHORITIES.
SEC. 1002. Exercise of Power of Seizure and Arrest. SEC 2205 Exercise of Power of Seizure and Arrest. - It shall En toto
be within the power of Customs official or person authorized as
It shall be within the power of a customs official or person aforesaid, and it shall be his duty, to make seizure of any
authorized as aforesaid, and it shall be his duty, to make vessel, aircraft, cargo, article, animal or other movable
seizure of any vessel, aircraft, cargo, article, animal or other property, when the same is subject to forfeiture or liable for any
movable property, when the same is subject to forfeiture or fine imposed under tariff and customs laws, rules and
liable for any fine imposed under tariff and customs laws, regulations, such power to be exercised in conformity with the
rules and regulations, such power to be exercised in law and the provisions of this Code: Provided, That the powers
conformity with the law and the provisions of this Code: of the Fisheries Commissions to make arrests, searches and
Provided, that the powers of the Bureau of Fisheries and seizures as provided in section four paragraphs "g" and "I" of
Aquatic Resources to make arrests, searches and seizures Republic Act Numbered Thirty-five hundred and twelve, and
as provided in Section Four paragraphs "G" and "I" of the Philippine Coast Guard under Republic Act Fifty-one
Republic Act numbered Thirty-five hundred and twelve, and hundred and seventy -three shall continue to be in force and
the Philippine Coast guard under Republic Act numbered effect.
Fifty-one hundred and seventy-three shall continue to be in
force and effect.
SEC.1003. Duty of Officer or Official to Disclose Official SEC 2206 Duty of Officer or Official to Disclose Official En toto
Character. Character. - It shall be the duty of any person exercising
authority as aforesaid, upon being questioned at the time of the
It shall be the duty of any person exercising authority as exercise thereof, to make known his official character as an
aforesaid, upon being questioned at the time of the exercise officer or official of the Government, and if his authority is
thereof, to make known his official character as an officer or derived from special authorization in writing to exhibit the same
official of the Government, and if his authority is derived from
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special authorization in writing to exhibit the same for for inspection, if demanded.
inspection, if demanded.
SEC. 1004. Authority to Require Assistance AND SEC 2207 Authority to Require Assistance. - Any person Provision amended expanding scope
INFORMATION. exercising police authority under the customs and tariff laws of assistance to include information
may demand assistance of any police officer when such from the national police and the armed
Any person exercising police authority under the customs and assistance shall be necessary to effect any search, seizure or forces.
tariff laws may demand assistance AND/OR REQUEST arrest which may be lawfully made or attempted by him. It shall
INFORMATION FROM any PHILIPPINE NATIONAL POLICE be the duty of any police officer upon whom such requisition is
AFP, AND OTHER NATIONAL LAW ENFORCEMENT made to give such lawful assistance in the matter as may be
AGENCY PERSONNEL when such assistance AND/OR required.
INFORMATION shall be necessary to effect any search,
seizure or arrest which may be lawfully made or attempted by
him. It shall be the duty of any PERSON upon whom such
request is made to give such lawful assistance in the matter
as may be required.
SEC. 1005. Right of CUSTOMS Police Officer to Enter SEC 2208 Right of Police Officer to Enter Inclosure. - For the Provision amended to include
Inclosure. more effective discharge of his official duties, any person principally used as before dwelling
exercising the powers herein conferred, may at any time enter, to stress the point that only an
For the more effective discharge of his official duties, any pass through, or search any land or inclosure or any enclosure used purely as primarily for
person exercising the powers herein conferred, may at any warehouse, store or other building, not being a dwelling house. dwelling which is exempt from
time enter, pass through, or search any land or inclosure or warrantless search.
any warehouse, store or other building, not being A warehouse, store or other building or inclosure used for the
PRINCIPALLY USED AS a dwelling house. keeping or storage of a become a dwelling house within the
meaning hereof merely by reason of the fact that the person as
A warehouse, store or other building or inclosure used for the watchman lives in the place, nor will the fact that his family
keeping or storage of article does not become a dwelling stays there with him alter the case.
house within the meaning hereof merely by reason of the fact
that the person as watchman lives in the place, nor will the
fact that his family stays there with him alter the case.
SEC. 1006. Search of Dwelling House. SEC 2209 Search of Dwelling House. - A dwelling house may Minor amendment Competent court
be entered and search only upon warrant issued by a Judge of replaces judge
A dwelling house may be entered and searched only upon the Court or such other responsible officers as may be
warrant issued by a COMPETENT Court upon sworn authorized by law upon sworn application showing probable
application showing probable cause and particularly cause and particularly describing the place to be searched or
describing the place to be searched and person or thing to be thing to be seized.
seized.
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SEC. 1007. Right to Search Vessels or Aircrafts and SEC 2210 Right to Search Vessels or Aircrafts and Persons or En toto
Persons or Articles Conveyed Therein. Articles Conveyed Therein. It shall be lawful for any official or
person exercising police authority under the provisions of this
It shall be lawful for any official or person exercising police Code to go aboard any vessel or aircraft within the limits of any
authority under the provisions of this ACT to board any vessel collection district, and to inspect, search and examine or
or aircraft within the limits of any collection district, and to aircraft and any trunk, package, box or envelope on board, and
inspect, search and examine said vessel or aircraft and any to search any person on board vessel or aircraft if under way,
trunk, package, box or envelope on board, and to search any to use all necessary force to compel compliance; and if it shall
person on board the said vessel or aircraft if under way, to appear that any breach or violation of the customs and tariff
use all necessary force to compel compliance; and if it shall laws of the Philippines has been committed, whereby or in
appear that any breach or violation of the customs and tariff consequence of which such vessels or aircrafts, or the article,
laws of the Philippines has been committed, whereby or in or any part thereof, on board of or imported by such vessel or
consequence of which such vessels or aircrafts, or the article, aircraft, is liable to forfeiture to make seizure of the same or
or any part thereof, on board of or imported by such vessel or any part thereof.
aircraft, is liable to forfeiture to make seizure of the same or
any part thereof. The power of search hereinabove given, shall extend to the
removal of any false bottom bulkhead or other obstruction, so
The power of search hereinabove given shall extend to the far as may be necessary to enable the officer to discover
removal of any false bottom, partition, bulkhead or other whether any dutiable or forfeitable articles may be concealed
obstruction, so far as may be necessary to enable the officer therein.
to discover whether any dutiable or forfeitable articles may be
concealed therein. No proceeding herein shall give rise to any claim for the
damage thereby caused to article or vessel or aircraft.
No proceeding herein shall give rise to any claim for the
damage thereby caused to article or vessel or aircraft.
SEC. 1008. Right to Search Vehicles, ANIMALS and SEC 2211 Right to Search Vehicles, Beasts and Persons. - It Minor amendment. Beast changed to
Persons. shall also be lawful for exercising authority as aforesaid to animal to be more generic and cover
open and examine any box, trunk, envelope or other container, any type of animal that can be used as
It shall also be lawful for exercising authority as aforesaid to wherever found when he has reasonable cause to suspect the carrier.
open and examine any box, trunk, envelope or other presence therein of dutiable or prohibited article introduced into
container, wherever found when he has reasonable cause to the Philippines contrary to law, and likewise to stop, search
suspect the presence therein of dutiable or prohibited article and examine any vehicle person reasonably suspected of
introduced into the Philippines contrary to law, and likewise to holding or conveying such article as aforesaid.
stop, search and examine any vehicle, ANIMAL or person
reasonably suspected of holding or conveying such article as
aforesaid.
SEC. 1009. Search of Persons Arriving From Foreign SEC 2212 Search of Persons Arriving From Foreign Countries. Specific Annex J 1.10 of the RKC Provision is amended to set down the
Contries. -All persons coming Philippines from foreign countries shall be rule on when inspection (personal
liable to detention and search by the customs authorities under search) of traveller or passenger is
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PERSONAL SEARCHES OF TRAVELERS FOR PURPOSES such regulations as may be prescribed relative thereto. 11. Standard allowed.
OF CUSTOMS CONTROL SHALL BE CARRIED OUT ONLY
WHEN THERE ARE REASONABLE GROUNDS TO Female inspectors may be employed for the examination and Goods carried by travellers shall be stored
SUSPECT THE COMMISSION OF SMUGGLING OR OTHER search of persons of their own sex. or kept, subject to the conditions
CUSTOMS AND RELATED OFFENCES. prescribed by the Customs, pending
clearance under the appropriate Customs
THE EXAMINATION AND SEARCH OF PERSONS SHALL procedure, re-exportation or other disposal
BE CONDUCTED BY PERSONS OF THE SAME GENDER. in accordance with national legislation in
the following cases:
at the traveller s request;
when the goods concerned

cannot be cleared immediately; or
where the other provisions of

this Chapter do not apply to such goods.
SEC. 1010. POWER TO INSPECT AND VISIT. SEC 2536 Seizure of Other Articles. - The Commissioner of Provision amended to include a
Customs and Collector of Customs and/or any other customs proviso allowing the quashal of the
The Commissioner of Customs and DISTRICT Collector of officer, with the prior authorization in writing by the warrant issued under the visitorial
Customs and/or any other customs officer, with the prior Commissioner, may demand evidence of payment of duties power of the Bureau without need for
authorization in writing by the Commissioner, may demand and taxes on foreign articles openly offered for sale or kept in clearance from the Department of
evidence of payment of duties and taxes on foreign articles storage, and if no such evidence can be produced, such Finance by way of an exception to the
openly offered for sale, or kept in storage, and if no such articles may be seized and subjected to forfeiture proceedings: rule on WSD decisions favourable to
evidence can be produced, such articles may be seized and Provided, however, That during such proceedings the person the claimant needs clearance from
subjected to forfeiture proceedings: Provided, however, that or entity for whom such articles have been seized shall be DOF. Also added is the proviso that
during such proceedings the person or entity for whom such given the opportunity to prove or show the source of such the release of the goods so seized
articles have been seized shall be given the opportunity to articles and the payment of duties and taxes thereon. shall not be contrary to law. Rationale:
prove or show the source of such articles and the payment of The exception on clearance
duties and taxes thereon. PROVIDED FURTHER, THAT requirement is justified on the fact that
WHEN THE WARRANT OF SEIZURE AND DETENTION under this provision the goods were
HAS BEEN ISSUED AND SUBSEQUENT DOCUMENTS seized while the same are no longer in
EVIDENCING PROPER PAYMENT PRESENTED WERE customs custody thus creating a
FOUND TO BE AUTHENTIC AND IN ORDER,THE DISTRICT presumption that they were released
COLLECTOR SHALL, UPON MOTION, QUASH OR RECALL from customs in order except that
THE WARRANT AND CAUSE THE IMMEDIATE RELEASE customs needs to satisfy itself that
OF THE ARTICLES SEIZED SUBJECT TO CLEARANCE BY indeed duties and taxes on these
THE COMMISSIONER, PROVIDED THAT THE RELEASE goods displayed or stored in place
THEREOF IS NOT CONTRARY TO LAW. other than dwelling were actually paid.
On the other hand, the proviso re
156
contrary to law is meant to exclude
seized items that have other violations
of the law such that their release would
be in derogation of such legislative
mandate.
CHAPTER 2. PAYMENT UNDER PROTEST
SEC. 1011. Protest and Payment Upon Protest in Civil SEC 2308 Protest and Payment Upon Protest in Civil Matters. Provision amended to change
Matters. - When a ruling or decision of the Collector is made whereby liquidation to assessment because
liability for duties, taxes, fees or other charges are determined, the current policy on entry liquidation is
When a ruling or decision of the Collector is made whereby except the fixing of fines in seizure cases, the partly adversely post liquidation which can happen at a
liability for duties, taxes, fees or other charges are affected may protest such ruling or decision by presenting to future time. Payment after assessment
determined, except the fixing of fines in seizure cases, the the Collector at the time when payment of the amount claimed looks more physically realistic because
party adversely affected may protest such ruling or decision to be due the government is made, or within (15) days payment is done after assessment and
by presenting to the Collector at the time when payment of the thereafter, a written protest setting forth his objection to the not after liquidation.
amount claimed to be due the government is made, or within ruling or decision in question with the reason's therefore. No
(15) days thereafter, a written protest setting forth his protest shall be considered unless payment of the amount due
objection to the ruling or decision in question with the reason's after final liquidation has first been made and the
therefore. No protest shall be considered unless payment of corresponding docket fee, as provided for in Section 3301.
the amount due after final ASSESSMENT has first been
made and the corresponding docket fee, as provided for in
Section 1400.
SEC. 1012. Protest Exclusive Remedy in Protestable SEC 2309 Protest Exclusive Remedy in Protestable, Case. - En toto
Case. In all cases subject to protest, the interested party who desires
to have the action of the Collector reviewed, shall make a
In all cases subject to protest, the interested party who protest, otherwise the action of the Collector shall be final and
desires to have the action of the Collector reviewed, shall conclusive against him, except as to matters collectible for
make a protest, otherwise the action of the Collector shall be manifest error in the manner prescribed in section one
final and conclusive against him, except as to matters thousand seven hundred and seven hereof.
collectible for manifest error in the manner prescribed in
Section 909 hereof.
SEC. 1013. Form and Scope of Protest. SEC 2310 Form and Scope of Protest. - Every protest shall be En toto
filed in accordance prescribed rules and regulations
Every protest shall be filed in accordance with the prescribed promulgated under this section and shall point out the
rules and regulations promulgated under this section and shall particular decision or ruling of the Collector to which exception
point out the particular decision or ruling of the Collector to is taken or objection made, and shall indicate with reasonable
which exception is taken or objection made, and shall indicate precision the particular ground or grounds upon which the
with reasonable precision the particular ground or grounds
157
upon which the protesting party bases his claim for relief. The protesting party bases his claim for relief.
scope of a protest shall be limited to the subject matter of a
single adjustment or other independent transaction, but any The scope of a protest shall be limited to the subject matter of
number of issue may be raised in a protest with reference to a single adjustment independent transaction, but any number
the particular item or items constituting the subject matter of of issue may be raised in a protest with reference to the
the protest. particular item or items constituting the subject matter of the
protest.
SEC. 1014. Samples to be Furnished by Protesting SEC 2311 Samples to be Furnished by Protesting Parties. - If En toto
Parties. the nature of the articles permit, importers filing protests
involving questions of fact must, upon demand, supply the
If the nature of the articles permit, importers filing protests Collector with samples of the articles which are the subject
involving questions of fact must, upon demand, supply the matter of the protest. Such samples shall be verified by the
Collector with samples of the articles which are the subject customs official who made the classification against which the
matter of the protest. Such samples shall be verified by the protest are filed.
customs official who made the classification against which the
protests are filed.
CHAPTER 3. SEIZURE AND FORFEITURE
SEC. 1015. Warrant for Detention of Property-Cash Bond. SEC 2301 Warrant for Detention of Property-Cash Bond. - Provision amended establishing the
Upon making any, seizure, the Collector shall issue a warrant exclusive authority of the Collector to
THE COLLECTOR OF CUSTOMS SHALL HAVE THE for the detention of the property; and if the owner or importer determine probable cause and issue
EXCLUSIVE AUTHORITY TO ISSUE A WARRANT FOR THE desires to secure the release of the property for legitimate use, warrant of seizure and detention. It
DETENTION OF THE PROPERTY UPON DETERMINATION the Collector shall, with the approval of the Commissioner of also modifies the rule on the release of
OF PROBABLE CAUSE AS PROVIDED FOR IN THIS ACT. Customs, surrender it upon the filing of a cash bond, in an seized articles for legitimate use by
IN ALL SEIZURE PROCEEDINGS, the Collector MAY , amount to be fixed by him, conditioned upon the payment of allowing any other sufficient security
UPON MOTION BY THE IMPORTER OR CONSIGNEE, AND the appraised value of the article and/or any fine, expenses than cash bond to grant flexibility to
with the approval of the Commissioner of Customs, ALLOW and costs which may be adjudged in the case: Provided, That customs to release seized goods not
THE RELEASE OF SEIZED ARTICLES FOR LEGITIMATE such importation shall not be released under any bond when otherwise prohibited or whose
USE UNDER CASH BOND OR SUFFICIENT SECURITY in there is prima facie evidence of fraud in the importation of the importation was not attended with
the amount to be fixed by him, conditioned upon the payment article: Provided, further, That articles the importation of which fraud rather than keep them with no
of the appraised value of the article and/or any fine, expenses is prohibited by law shall not be released under any significant benefit to the government.
and costs which may be adjudged in the case; Provided, that circumstance whomsoever, Provided, finally, That nothing in Worse the goods may just deteriorate
there is no prima facie evidence of fraud in the importation of this section shall be construed as relieving the owner or or be exposed to the elements to the
the articles:, provided further, that the articles the importation importer from any criminal liability which may arise from any prejudice of everyone.
of which is prohibited by law shall not be released under any violation of law committed in connection with the importation of
circumstance whatsoever. Provided finally, That nothing in the article (R.A. 7651, June 04, 1993).
this section shall be construed as relieving the owner or
importer from any criminal liability which may arise from any
violation of law committed in connection with the importation
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of the article (R.A. 7651, June 04, 1993)
SEC. 1016. Report of Seizure to Commissioner and SEC 2302 Report of Seizure to Commissioner and Chairman, En toto
Chairman, Commission on Audit. Commission on Audit. -When a seizure is made for any cause,
the Collector of the district wherein the seizures is effected
When a seizure is made for any cause, the Collector of the shall immediately make report thereof to the Commissioner
district wherein the seizures is effected shall immediately and Chairman of the Commission on Audit.
make report thereof to the Commissioner and Chairman of the
Commission on Audit.
SEC. 1017. Notification to Owner or Importer. SEC 2303 Notification to Owner or Importer. - The Collector En toto
shall give the owner or importer of the property or his agent a
The Collector shall give the owner or importer of the property written notice of the seizure and shall give him an opportunity
or his agent a written notice of the seizure and shall give him to be heard in reference to the delinquency which was the
an opportunity to be heard in reference to the delinquency occasion of such seizure.
which was the occasion of such seizure.
For the purpose of giving such notice and of all other
For the purpose of giving such notice and of all other proceedings in the matter of such seizure, the importer,
proceedings in the matter of such seizure, the importer, consignee or person holding the bill of lading shall be deemed
consignee or person holding the bill of lading shall be deemed to be the "owner" of the article included in the bill.
to be the "owner" of the article included in the bill.
For the same purpose, "agent" shall be deemed to include not
For the same purpose, "agent" shall be deemed to include not only any agent in fact of the owner of the seized property but
only any agent in fact of the owner of the seized property but also any person having responsible possession of the property
also any person having responsible possession of the at the time of the seizure, if the owner or his agent in fact is
property at the time of the seizure, if the owner or his agent in unknown or cannot be reached.
fact is unknown or cannot be reached.
SEC. 1018. Notification to Unknown Owner. SEC 2304 Notification to Unknown Owner. - Notice to an En toto
unknown owner shall be effected by posting for fifteen days in
Notice to an unknown owner shall be effected by posting for the public corridor of the customhouse of the district in which
fifteen days in the public corridor of the customhouse of the the seizure was made, and, in the discretion of the
district in which the seizure was made, and, in the discretion Commissioner, by publication in a newspaper or by such other
of the Commissioner, by publication in a newspaper or by means as he shall consider desirable.
such other means as he shall consider desirable.
SEC. 1019. Description, VALUATION and Classification of SEC 2305 Description, Appraisal and Classification of Seized The word used in the amendment is
Seized Property. Property. - The Collector shall also cause a list and particular valuation but this should be taken to
description and/or classification of the property seized to be mean the appraised value of the
The Collector shall also cause a list and particular description prepared and an appraisement of the same, like, or similar goods in the context of its local
and/or classification of the property seized to be prepared and article at its wholesale value in the local market in the usual market value as required in Section
159
a VALUATION of the same, like, or similar article at its wholesale quantities in the ordinary course of trade to be made 1015 CTMA and not in the context of
wholesale value in the local market in the usual wholesale by at least two appraising officials, if there are such officials at valuation for customs assessment
quantities in the ordinary course of trade to be made by at or near the place of seizure. In the absence of those officials, purposes under Section 700 CTMA.
least two appraisers . then by two competent and disinterested citizens of the
Philippines, to be selected by him for that purpose, residing at
or near the place of seizure, which list and appraisement shall
be properly attested to by the Collector and the persons
making the appraisal.
SEC. 1020. Proceedings in Case of Property Belonging to SEC 2306 Proceedings in Case of Property Belonging to Minor amendment on wordings to
Unknown Parties. Unknown Parties. - If, within fifteen days after the notification make provision clearer as to
prescribed in section twenty-three hundred and four of this intendment.
If, within fifteen days after the notification prescribed in Code, no owner or agent can be found or appears before the
Section 1018 of this ACT, no owner or agent can be found or Collector, the latter shall declare the property forfeited to the
appears before the Collector, the latter shall declare the government to be sold at auction in accordance with law.
property forfeited IN FAVOR OF the government to be sold at
auction OR DISPOSED OF in accordance with law.
SEC. 1021. Settlement of Case by Payment of Fine or SEC 2307 Settlement of Case by Payment of Fine or Provision amended to set redemption
Redemption of Forfeited Property. Redemption of Forfeited Property. - Subject to approval of the value on settlement sat 150% of
Commissioner, the district collector may, while the case is still landed cost. This is because it is much
Subject to approval of the Commissioner, the district collector pending, except when there is fraud, accept the settlement of easier to establish the landed cost
may, while the case is still pending, except when there is any seizure case provided that the owner, importer, exporter, (more transparent) than the appraised
fraud, accept the settlement of any seizure case provided that or consignee or his agent shall offer to pay to the collector a (commercial) value. While landed cost
the owner, importer, exporter, or consignee or his agent shall fine imposed by him upon the property, or in case of forfeiture, is normally smaller the additional 50%
offer to pay to the collector a fine imposed by him upon the the owner, exporter, importer or consignee or his agent shall of its value is calculated to make it
property, or in case of forfeiture, the owner, exporter, importer offer to pay for the domestic market value of the seized article. close to the normal benchmark of
or consignee or his agent shall offer to pay for ONE The Commissioner may accept the settlement of any seizure appaised value. Also, the amount of
HUNDRED FIFTY PERCENT OF THE LANDED COST of the case on appeal in the same manner. settlement/ fine is fixed at 30% to do
seized article. The Commissioner may accept the settlement away with discretion in the imposition
of any seizure case on appeal in the same manner. Upon payment of the fine as determined by the district collector of fine which based on experience has
which shall be in amount not less than twenty percentum (20%) not been imposed in a consistent,
Upon payment of the fine as determined by the district nor more than eighty percentum (80%) of the landed cost of worse ,transparent manner.
collector which shall be in amount EQUIVALENT TO 30% OF the seized imported article or the F.O.B. value of the seized
THE landed cost of the seized imported article, the property article for export, or payment of the domestic market value, the
shall be forthwith released and all liabilities which may or property shall be forthwith released and all liabilities which may
might attach to the property by virtue of the offence which was or might attach to the property by virtue of the offence which
the occasion of the seizure and all liability which might have was the occasion of the seizure and all liability which might
been incurred under any SECURITY given by the owner or have been incurred under any cash deposit or bond given by
agent in respect to such property shall thereupon be deemed the owner or agent in respect to such property shall thereupon
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to be discharged. be deemed to be discharged.
Settlement of any seizure case by payment of the fine or Settlement of any seizure case by payment of the fine or
redemption of forfeited property shall not be allowed in any redemption of forfeited property shall not be allowed in any
case where the importation is absolutely prohibited or where case where the importation is absolutely prohibited or where
the release of the property would be contrary to law. the release of the property would be contrary to law.
SEC. 1022. Seizure of Vessel or Aircraft for Delinquency SEC 2534 Seizure of Vessel or Aircraft for Delinquency of En toto
of Owner or Officer. Owner or Officer. - When the owner, agent, master, pilot in
command or other responsible officer of any vessel or aircraft
When the owner, agent, master, pilot in command or other becomes liable to be fined under the tariff and customs laws on
responsible officer of any vessel or aircraft becomes liable to account of a delinquency in the discharge of a duty imposed
be fined under the tariff and customs laws on account of a upon him with reference to the said vessel or aircraft, the
delinquency in the discharge of a duty imposed upon him with vessel or aircraft itself may be seized and subjected in an
reference to the said vessel or aircraft, the vessel or aircraft administrative proceeding for the satisfaction of the fine for
itself may be seized and subjected in an administrative which such person would have been liable.
proceeding for the satisfaction of the fine for which such
person would have been liable.
SEC. 1023. DETERMINATION OF PROBABLE CAUSE AND SEC 2535 Burden of Proof in Seizure and/or Forfeiture. - In all Provision reworded to conform with
Burden of Proof in Seizure and/or Forfeiture proceedings taken for the seizure and/or forfeiture of any Section 1015 CTMA on the exclusive
PROCEEDINGS. vessel, vehicle, aircraft, beast or articles under the provisions authority of the District Collector of
of the tariff and customs laws, the burden of proof shall lie Customs.
NO WARRANT OF SEIZURE AND DETENTION SHALL BE upon the claimant: Provided, That probable cause shall be first
ISSUED WITHOUT PRIOR DETERMINATION BY THE shown for the institution of such proceedings and that seizure
COLLECTOR OF CUSTOMS OF PROBABLE CAUSE FOR and/or forfeiture was made under the circumstances and in the
THE INSTITUTION OF SEIZURE PROCEEDINGS AND manner described in the preceding sections of this Code.
THAT SUCH SEIZURE AND/OR FORFEITURE WAS MADE
UNDER THE CIRCUMSTANCES AND IN THE MANNER
DESCRIBED IN THIS ACT; PROVIDED THAT, IN ALL
PROCEEDINGS TAKEN FOR THE SEIZURE AND
FORFEITURE OF ANY VESSEL, VEHICLE, AIRCRAFT,
ANIMALS OR ARTICLES UNDER THIS ACT, THE BURDEN
OF PROOF SHALL LIE UPON THE CLAIMANT.
Sec. 1024. RULES AND REGULATIONS ON SEIZURES New provision. Commissioner is

AND FORFEITURES. mandated to issue rules and
regulations on seizure & forfeiture
THE COMMISSIONER OF CUSTOMS SHALL proceedings to make the proceedings
PROMULGATE RULES AND REGULATIONS GOVERNING more transparent.
THE CONDUCT OF SEIZURE AND FORFEITURE
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PROCEEDINGS UNDER THE PRECEDING SECTIONS OF
THIS CHAPTER.
CHAPTER 4. DECISION IN PROTEST AND SEIZURE

CASES; APPEAL
SEC. 1025. Decision or Action of Collector in Protest and SEC 2312 Decision or Action of Collector in Protest and Minor amendment. If necessary
Seizure Cases. Seizure Cases. - When a protest in proper form is presented in inserted after reliquidated in the last
a case where protest is required, the Collector shall issue an sentence of the first paragraph to
When a protest in proper form is presented in a case where order for hearing within fifteen (15) days from receipt of the make provision more factual.
protest is required, the Collector shall issue an order for protest and hear the matter thus presented. Upon the
hearing within fifteen (15) days from receipt of the protest and termination of the hearing, the Collector shall render a decision
hear the matter thus presented. Upon the termination of the within thirty (30) days, and if the protest is sustained, in whole
hearing, the Collector shall render a decision within thirty (30) or in part, he shall make the appropriate order, the entry
days, and if the protest is sustained, in whole or in part, he reliquidated necessary.
shall make the appropriate order, the entry reliquidated IF
NECESSARY. In seizure cases, the Collector, after a hearing shall in writing
make a declaration of forfeiture or fix the amount of the fine or
In seizure cases, the Collector, after a hearing shall in writing take such other action as may be proper.
make a declaration of forfeiture or fix the amount of the fine or
take such other action as may be proper.
SEC. 1026. Review of Commissioner. SEC 2313 Review of Commissioner. - The person aggrieved Several words in the provision are
by the decision or Collector in any matter presented upon amended/modified and new words
The person aggrieved by the decision or Collector in any protest or by his action in any case of seizure may, within introduced to more clearly define the
matter presented upon protest or by his action in any case of fifteen (15) days after notification on writing by the Collector of conditions and timelines of the
seizure may, within fifteen (15) days after notification in writing his actions or decisions, file a written notice to the Collector appeals/review process.
by the Collector of his actions or decisions, file a written notice with a copy furnished to the Commissioner of his intention to
to the Collector with a copy furnished to the Commissioner of appeal the action or decision of the Collector to the
his intention to appeal the action or decision of the Collector to Commissioner. Thereupon the Collector shall forthwith transmit
the Commissioner. Thereupon the Collector shall forthwith all the records of proceedings to the Commissioner, who shall Process on automatic review was
transmit all the records of proceedings to the Commissioner, approve, modify or reverse the action or decision of the revised
who shall approve, modify or reverse the action or decision of Collector and take such steps and make such orders as may
the Collector and take such steps and make such orders as be necessary to give effect to his decision: Provided, That
may be necessary to give effect to his decision: Provided, when an appeal is filed beyond the period herein prescribed,
That when an appeal is filed beyond the period herein the same shag be deemed dismissed.
prescribed, the same shall be deemed dismissed.
If in any seizure proceedings, the Collector renders a decision
If in any seizure proceedings involving imported articles adverse to the Government, such decision shall be
whose appraised value is Two Million pesos (PHP2,000,000) automatically reviewed by the Commissioner and the records
or more, the Collector renders AFTER THE TERMINATION of the case elevated within five (5) days from the promulgation
162
OF THE PROCEEDING, a decision adverse to the of the decision of the Collector. The Commissioner shall render
Government, such decision shall be automatically reviewed by a decision on the automatic appeal within thirty (30) days from
the Commissioner and the records of the case elevated within receipts of the records of the case by the Commissioner no
five (5) days from the promulgation of the decision of the decision is rendered or the decision involves imported articles
Collector. The Commissioner shall REVIEW a decision on the whose published value if five million pesos (P5,000,000.00) or
automatic appeal within thirty (30) days from receipt of the more, such decision shall be deemed automatically appealed
records of the case by the Commissioner who shall uphold, to the Secretary of Finance and the records of the proceedings
modify, or reverse the action or decision of the collector . shall be elevated within five (5) days from the promulgation of
WHEN no decision is rendered within the 30-day review the decision of the Commissioner or of the Collector under
period, the decision of the Collector under automatic review, appeal, as the case may be: Provided, further, That if the
shallbe deemed upheld and shall become final and executory. decision of the Commissioiner or of the Collector under appeal,
as the case may be, is affirmed by the Secretary of Finance, or
if within thirty (30) days from receipt of the proceedings by the
Secretary of Finance, or of the Commissioner, or of the
Collector under appeal, as the case may be, shall become final
and executory.
In any seizure proceeding, the release of imported articles shall

not be allowed unless apd until a decision of the Collector has
been confirmed in writing by the Commissioner of Customs
(R.A. 7651, June 04, 1993).
SEC. 1027. Notice of Decision of Commissioner. SEC 2314 Notice of Decision of Commissioner. - Notice of the En toto
decision of the Commissioner shall be given to the party by
Notice of the decision of the Commissioner shall be given to whom the case was brought before him for review, and in
the party by whom the case was brought before him for seizure cases such notice shall be effected by personal service
review, and in seizure cases such notice shall be effected by if practicable.
personal service if practicable.
CHAPTER 5. ABANDONMENT
SEC. 1028. Abandonment, Kinds and Effects of. SEC 1801 Abandonment, Kinds and Effects of - An imported RKC GA Standard 3.24 Provision amended to be compliant
article is deemed abandoned under any of the following with RKC.Period within which to file
An imported article is deemed abandoned under any of the circumstances: 3.24. Standard entry still 30 days but extendible
following circumstances: pursuant to RKC GA Standard 3.24;
a. When the owner, importer, consignee of the At the request of the declarant and for Period to claim still 15 days but
When the owner, importer, consignee of the imported article imported article expressly signifies in writing to the Collector of reasons deemed valid by the Customs, the extendible, both on valid grounds.
expressly signifies in writing to the Collector of Customs his Customs his intention to abandon; or latter shall extend the time limit prescribed
intention to abandon; or for lodging the Goods declaration.
b. When the owner, importer, consignee or interested
When the owner, importer, consignee or interested party after party after due notice, fails to file an entry within thirty (30) New provision providing for bonded
163
due notice BY PERSONAL SERVICE, fails to file an entry days, which shall not be extendible, from the date of discharge articles other than for manufacturing
within thirty (30) days from the date of discharge of the last of the last package from the vessel or aircraft, or having filed for export not withdrawn within storage
package from the vessel or aircraft, or having filed such entry, such entry, fails to claim his importation within fifteen (15) days, period deemed abandoned. This
fails to claim his importation within fifteen (15) days, from the which shall not likewise be extendible, from the date of posting pertains to bonded goods that are not
date of posting of the notice to claim such importation; OR of the notice to claim such importation. used for manufacturing for export.
Bonded articles for manufacturing for
WHEN BONDED ARTICLES OTHER THAN FOR Any person who abandons an article or who fails to claim his export are governed by Section 810(b)
MANUFACTURING FOR EXPORT ARE NOT WITHDRAWN importation as provided for in the preceding paragraph shall be of the Act.
WITHIN THE STORAGE PERIOD PRESCRIBED IN deemed to have renounced all his interests and property rights
SECTION 808 OF THIS ACT. therein (R.A. 7651, June 04, 1993).
Any person who abandons an article or who fails to claim his Provision of Notice modified to include
importation as provided for in the preceding paragraph shall Personal Service. This will effectively
be deemed to have renounced all his interests and property modify the 30-day-from-last-
rights therein. discharge benchmark since notice to
the consignee/importer is legally
THE PERIOD TO FILE THE GOODS DECLARATION OR necessary.
CLAIM THE GOODS MAY UPON WRITTEN REQUEST, BE
EXTENDED ON VALID GROUNDS FOR FIFTEEN (15)
DAYS; PROVIDED, THAT THE REQUEST IS MADE
BEFORE THE EXPIRATION OF THE ORIGINAL PERIOD
WITHIN WHICH TO FILE THE GOODS DECLARATION OR
CLAIM THE GOODS, AS THE CASE MAY BE.
SEC. 1029. Abandonment of Imported Articles. SEC 1802 Abandonment of Imported Articles. - An abandoned Minor amendment
article shall ipso facto be deemed the property of the
An abandoned article shall ipso facto be deemed the property Government and shall be disposed of in accordance with the
of the Government and shall be disposed of in accordance provisions of this Code.
with the provisions of this Code. Nothing in this section shall
be construed as relieving the owner or importer from any Nothing in this section shall be construed as relieving the
criminal liability which may arise from any violation of law owner or importer from any criminal liability which may arise
committed in connection with the importation of the from any violation of law committed in connection with the
abandoned article. importation of the abandoned article.
Any official or employee of the Bureau of Customs or of other Any official or employee of the Bureau of Customs or of other
government agencies having knowledge of the existence of government agencies having knowledge of the existence of an
an abandoned article or having control or custody of such abandoned article or having control or custody of such
abandoned article, fails to report to the Collector within abandoned article, fails to report to the Collector within twenty-
twenty-four (24) hours from the time the article is deemed four (24) hours from the time the article is deemed abandoned
abandoned shall be punished with the penalties prescribed in shall be punished with the penalties prescribed in Paragraph 1,
164
TITLE 14 of this ACT. Section 3604 of this Code (R.A. 7651, June 04, 1993).
SEC. 1030. Disposition of Imported Articles Remaining SEC 1210 Disposition of Imported Articles Remaining on RKC standard 3.23 and 3.24 Provision amended to be consistent
on Vessel After Time for Unlading. Vessel After Time for Unlading. - Imported articles remaining with the amended provision on
on board any vessel after the expiration of the said period for 3.23. Standard express and implied abandonment as
Imported articles remaining on board any vessel after the discharge and not reported for transshipment to another port, well as to be complaint with the RKC
expiration of the said period for discharge, and not reported may be unladen by the customs authorities and stored at the Where national legislation lays down a standards.
for transshipment to another port, may be unladen by the vessel's expense. time limit for lodging the Goods
customs authorities and stored at the vessel's expense. declaration, the time allowed shall be
Unless prevented by causes beyond the vessel's control, such sufficient to enable the declarant to
Unless prevented by causes beyond the vessel's control, such as port congestion, strikes, riots or civil commotions, failure of complete the Goods declaration and to
as port congestion, strikes, riots or civil commotions, failure of vessel's gear, bad weather, and similar causes, articles so obtain the supporting documents required.
vessel's gear, bad weather, and similar causes, articles so stored shall be entered within thirty (30) days, which shall not
stored shall be entered within thirty (30) days, from the date of be extendible, from the date of discharge of the last package 3.24. Standard
discharge of the last ARTICLE/package/CONTAINER from from the vessel or aircraft and shall be claimed within fifteen
the vessel or aircraft and shall be claimed within fifteen (15) At the request of the declarant and for
(15) days, which shall not likewise be extendible from the date
days from the date of posting of the notice to claim in reasons deemed valid by the Customs, the
of posting of the notice to claim in conspicuous places in the
conspicuous places in the Bureau of Customs. If not entered latter shall extend the time limit prescribed
Bureau of Customs. If not entered or not claimed, it shall be
or not claimed, it shall be disposed of in accordance with the for lodging the Goods declaration.
disposed of in accordance with the provisions of this code
provisions of this code. (R.A. 7651, June 04, 1993).
THE PERIOD TO FILE THE GOODS DECLARATION MAY,

UPON WRITTEN REQUEST, BE EXTENDED ON VALID
GROUNDS FOR ANOTHER FIFTEEN (15) DAYS
PROVIDED THE REQUEST IS FILED PRIOR TO THE
EXPIRATION OF THE ORIGINAL PERIOD PRESCRIBED IN
THIS SECTION.
CHAPTER 6. OTHER ADMINISTRATIVE PROCEEDINGS
SEC. 1031. Authority of Commissioner to make SEC 2316 Authority of Commissioner to make Compromise. - Provision amended where authority of
Compromise. Subject to the approval of the Secretary of Finance, the Commissioner to make compromise
Commissioner of Customs may compromise any case arising expanded to include duties and taxes.
The Commissioner of Customs may compromise any case under this Code or other laws or part of laws enforced by the The expanded authority is calculated
arising under this Code or other laws or part of laws enforced Bureau of Customs involving the imposition of fines, to speed up the resolution of customs
by the Bureau of Customs involving the COLLECTION of surcharges and forfeitures unless otherwise specified by law. disputes and settlement and
DUTIES AND TAXES, IMPOSITION OF fines, surcharges and enforcement of accountabilities to
forfeitures unless otherwise specified by law. enhance government revenue.
Proposed power is similar to one
granted to BIR Commissioner.
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Approval of the Secretary of Finance
was removed
CHAPTER 7. CIVIL REMEDIES FOR COLLECTION OF New civil remedies for the collection of
DUTIES AND TAXES unpaid duties and taxes that are
similar to or patterned after those
found i the National Internal Revenue
Code are being introduced to
strengthen the capacity of customs to
recover unpaid duties and taxes.
SEC. 1032. REMEDIES FOR THE COLLECTION OF New provision

DUTIES, TAXES, FINE, SURCHARGES INCLUDING
DAMAGES, INTEREST AND OTHER CHARGES OF
DELINQUENT IMPORTERS.
THE CIVIL REMEDIES FOR THE COLLECTION OF IMPORT

DUTIES, TAXES, FEES OR CHARGES, AND ANY
INCREMENT THERETO RESULTING FROM
DELINQUENCY SHALL BE:
(A) BY DISTRAINT OF GOODS, CHATTELS, OR EFFECTS,

AND OTHER PERSONAL PROPERTY OF WHATEVER
CHARACTER, INCLUDING STOCKS AND OTHER
SECURITIES, DEBTS, CREDITS, BANK ACCOUNTS AND
INTEREST IN AND RIGHTS TO PERSONAL PROPERTY,
AND BY LEVY UPON REAL PROPERTY AND INTEREST IN
RIGHTS TO REAL PROPERTY; AND
(B) BY CIVIL OR CRIMINAL ACTION.
EITHER OF THESE REMEDIES OR BOTH

SIMULTANEOUSLY MAY BE PURSUED IN THE
DISCRETION OF THE AUTHORITIES CHARGED WITH THE
COLLECTION OF SUCH TAXES: PROVIDED, HOWEVER,
THAT THE REMEDIES OF DISTRAINT AND LEVY SHALL
NOT BE AVAILED OF WHERE THE AMOUNT OF DUTIES
AND TAX INVOLVED IS NOT MORE THAN TEN
166
THOUSAND PESOS (P10,000).
THE BUREAU OF CUSTOMS 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.
SEC. 1033. CONSTRUCTIVE DISTRAINT OF THE New provision

PROPERTY.
TO SAFEGUARD THE INTEREST OF THE GOVERNMENT,

THE COMMISSIONER OF CUSTOMS MAY PLACE UNDER
CONSTRUCTIVE DISTRAINT THE PROPERTY OF A
DELINQUENT IMPORTER TAXPAYER WHO, IN HIS
OPINION, IS RETIRING FROM ANY BUSINESS SUBJECT
TO DUTY AND TAX, OR IS INTENDING TO LEAVE THE
PHILIPPINES OR TO REMOVE HIS PROPERTY
THEREFROM OR TO HIDE OR CONCEAL HIS PROPERTY
OR TO PERFORM ANY ACT TENDING TO OBSTRUCT THE
PROCEEDINGS FOR COLLECTING THE DUTY AND TAX
DUE OR WHICH MAY BE DUE FROM HIM.
THE CONSTRUCTIVE DISTRAINT OF PERSONAL

PROPERTY SHALL BE EFFECTED BY REQUIRING THE
TAXPAYER OR ANY PERSON HAVING POSSESSION OR
CONTROL OF SUCH PROPERTY TO SIGN A RECEIPT
COVERING THE PROPERTY DISTRAINED AND OBLIGATE
HIMSELF TO PRESERVE THE SAME INTACT AND
UNALTERED AND NOT TO DISPOSE OF THE SAME IN
ANY MANNER WHATSOEVER, WITHOUT THE EXPRESS
AUTHORITY OF THE COMMISSIONER.
IN CASE THE TAXPAYER OR THE PERSON HAVING THE

POSSESSION AND CONTROL OF THE PROPERTY
SOUGHT TO BE PLACED UNDER CONSTRUCTIVE
DISTRAINT REFUSES OR FAILS TO SIGN THE RECEIPT
HEREIN REFERRED TO, THE REVENUE OFFICER
EFFECTING THE CONSTRUCTIVE DISTRAINT SHALL
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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. 1034. SUMMARY REMEDIES. Based on a similar provision in the NIRC New provision
(A) DISTRAINT OF PERSONAL PROPERTY. - UPON THE

FAILURE OF THE PERSON OWING ANY DELINQUENT
DUTY AND TAX OR DELINQUENT REVENUE TO PAY THE
SAME AT THE TIME REQUIRED, THE COMMISSIONER OF
CUSTOMS SHALL SEIZE AND DISTRAINT ANY 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 CHARGE, TOGETHER WITH
ANY INCREMENT THERETO INCIDENT TO
DELINQUENCY, AND THE EXPENSES OF THE DISTRAINT
AND THE COST OF THE SUBSEQUENT SALE.
A REPORT ON THE DISTRAINT SHALL, WITHIN TEN (10)

DAYS FROM RECEIPT OF THE WARRANT, BE
SUBMITTED BY THE DISTRAINING OFFICER TO THE
COMMISSIONER OF CUSTOMS: PROVIDED, THAT THE
COMMISSIONER OR HIS DULY AUTHORIZED
REPRESENTATIVE SHALL, SUBJECT TO RULES AND
REGULATIONS PROMULGATED BY THE SECRETARY OF
FINANCE, UPON RECOMMENDATION OF THE
COMMISSIONER, HAVE THE POWER TO LIFT SUCH
ORDER OF DISTRAINT.
(B) LEVY ON REAL PROPERTY. - AFTER THE

EXPIRATION OF THE TIME REQUIRED TO PAY THE
DELINQUENT DUTY AND TAX OR DELINQUENT
REVENUE AS PRESCRIBED IN THIS SECTION, REAL
PROPERTY MAY BE LEVIED UPON, BEFORE
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SIMULTANEOUSLY OR AFTER THE DISTRAINT OF
PERSONAL PROPERTY BELONGING TO THE
DELINQUENT TAXPAYER. TO THIS END, THE
COMMISSIONER OF CUSTOMS OR HIS DULY
AUTHORIZED REPRESENTATIVE SHALL PREPARE A
DULY AUTHENTICATED CERTIFICATE SHOWING THE
NAME OF THE TAXPAYER AND THE AMOUNTS OF THE
DUTY AND TAX AND PENALTY DUE FROM HIM. SAID
CERTIFICATE SHALL OPERATE WITH THE FORCE OF A
LEGAL EXECUTION THROUGHOUT THE PHILIPPINES.
LEVY SHALL BE EFFECTED BY WRITING UPON SAID

CERTIFICATE A DESCRIPTION OF THE PROPERTY UPON
WHICH LEVY IS MADE. AT THE SAME TIME, WRITTEN
NOTICE OF THE LEVY SHALL BE MAILED TO OR SERVED
UPON THE REGISTER OF DEEDS FOR THE PROVINCE
OR CITY WHERE THE PROPERTY IS LOCATED AND
UPON THE DELINQUENT TAXPAYER, OR IF HE BE
ABSENT FROM THE PHILIPPINES, TO HIS AGENT OR
THE MANAGER OF THE BUSINESS IN RESPECT TO
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
TAXPAYER IS NOT SUFFICIENT TO SATISFY HIS DUTY
AND TAX DELINQUENCY, THE COMMISSIONER OF
CUSTOMS OR HIS DULY AUTHORIZED
REPRESENTATIVE SHALL, WITHIN THIRTY (30) DAYS
AFTER EXECUTION OF THE DISTRAINT, PROCEED WITH
THE LEVY ON THE TAXPAYER'S REAL PROPERTY.
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, HOWEVER, THAT THE
COMMISSIONER OR HIS DULY AUTHORIZED
REPRESENTATIVE, SUBJECT TO RULES AND
169
REGULATIONS PROMULGATED BY THE SECRETARY OF
FINANCE, UPON RECOMMENDATION OF THE
COMMISSIONER, SHALL HAVE THE AUTHORITY TO LIFT
WARRANTS OF LEVY ISSUED IN ACCORDANCE WITH
THE PROVISIONS HEREOF.
UPON RECOMMENDATION OF THE COMMISSIONER OF

CUSTOMS, THE SECRETARY OF FINANCE SHALL ISSUE
THE NECESSARY RULES AND REGULATIONS FOR THE
EXERCISE OF THE SUMMARY REMEDIES PROVIDED IN
THE HEREIN SECTION.
CHAPTER 8. JUDICIAL PROCEEDINGS
SEC. 1035. Supervision and Control Over Criminal and SEC 2401 Supervision and Control Over Criminal and Civil ASB Section 45. Provision amended to reflect the
Civil Proceedings. Proceedings. - Civil and criminal actions and proceedings pertinent provision of RA9135 and the
instituted in behalf of the government under the authority of this provision under Section 1200 on the
Civil and criminal actions and proceedings instituted in behalf Code or other law enforced by the Bureau shall be brought in requisite authority of the
of the government under the authority of this ACT or other law the name of the government of the Philippines and shall be Commissioner of Customs/Collector of
enforced by the Bureau shall be brought in the name of the conducted by customs officers but no civil or criminal action for Customs in the institution of cases
government of the Philippines and shall be conducted by the recovery of duties or the enforcement of any fine, penalty Section 45 of the Anti-Smuggling Bill
customs officers but no civil action for the recovery of duties or forfeiture under this Code shall be filed in court without the proposes, among others, that the
or the enforcement of any fine, penalty or forfeiture OR approval of the Commissioner. (R.A. 9135, April 27, 2001) investigation and prosecution of
CRIMINAL ACTION FOR VIOLATIONS under this ACT shall criminal cases be transferred to
be filed in court without the approval of the Commissioner Customs (DoJ, traditionally). The
WITHOUT PREJUDICE TO SECTION 1200 OF THIS ACT. consensus was that such move has
many legal hurdles to overcome, such
as, lack of independence, hierarchy of
approving authority, appellate review
of findings, etc. This is an open policy
issue.
SEC. 1036. Review by Court of Tax Appeals. SEC 2402 Review by Court of Tax Appeals. - The party En toto
aggrieved by the ruling of the Commissioner in any matter
The party aggrieved by the ruling of the Commissioner in any brought before him upon protest or by his action or ruling in
matter brought before him upon protest or by his action or any case of seizure may appeal to the Court of Tax Appeals, in
ruling in any case of seizure may appeal to the Court of Tax the manner and within the period prescribed by law and
Appeals, in the manner and within the period prescribed by regulations.
law and regulations.
Unless an appeal is made to the Court of Tax Appeals in the
Unless an appeal is made to the Court of Tax Appeals in the manner and within the period prescribe by laws and
170
manner and within the period prescribe by laws and regulations, the action or ruling of the Commissioner shall be
regulations, the action or ruling of the Commissioner shall be final and conclusive.
final and conclusive.
CHAPTER 9. DISPOSITION OF PROPERTY IN CUSTOMS Secs 48 to 54 ASB The ASB has several proposals
CUSTODY regarding the mode of disposition of
forfeited/abandoned goods. Sale
through auction is being eliminated
and in lieu thereof export sale is
suggested as the primary mode. The
proposal would need the creation of a
new infrastructure in the Bureau to
handle the activity, develop
competence in export marketing, not to
mention capital outlay for goods
inventory and other export supply
chain concerns. Also, export marketing
is not one of the major functions or
goals of any customs administration.
The proposal therefore does not fall
within the international best customs
practices which focus customs efforts
at providing clearance services and
enforcing the customs laws. The
consensus instead was to retain the
auction sale mode but to create a
forfeiture fund that will be used, among
others, to cover the costs of inventory
and sale or disposition of these goods,
including the possibility of outsourcing
the function for better efficiency
without losing control. Most goods at
auction are sold are far less than their
original value due to deterioration
resulting from poor inventory handling.
SEC. 1037. Property Subject to Sale. SEC 2601 Property Subject to Sale. - Property in customs En toto
custody shall be subject to sale under the conditions
Property in customs custody shall be subject to sale under the hereinafter provided:
171
conditions hereinafter provided: a. Abandoned articles;
Abandoned articles; b. Articles entered under warehousing entry not

withdrawn nor the duties and taxes paid thereon within the
Articles entered under warehousing entry not withdrawn nor period described under Section 1908 of this Code;
the duties and taxes paid thereon within the period described
under Section 808 of this ACT; c. Seized property, other than contraband, after
liability to sale shall have been established by proper
Seized property, other than contraband, after liability to sale administrative or judicial proceedings in conformity with the
shall have been established by proper administrative or provisions of this Code; and
judicial proceedings in conformity with the provisions of this
ACT; and d. Any article subject to a valid lien for customs duties,
taxes or other charges collectible by the Bureau of Customs,
Any article subject to a valid lien for customs duties, taxes or after the expiration of the period allowed for the satisfaction of
other charges collectible by the Bureau of Customs, after the the same. (R.A. 7651, June 04,1993)
expiration of the period allowed for the satisfaction of the
same. (R.A. 7651, June 04,1993)
SEC. 1038. Place of Sale or Other Disposition of Property. SEC 2602 Place of Sale or Other Disposition of Property. - En toto
Property within the purview of this Part of this Code shall be
Property within the purview of this Part of this ACT shall be sold, or otherwise disposed of, upon the order of the Collector
sold, or otherwise disposed of, upon the order of the Collector of the port where the property in question is found, unless the
of the port where the property in question is found, unless the Commissioner shall direct its conveyance for such purpose to
Commissioner shall direct its conveyance for such purpose to some other port.
some other port.
SEC. 1039. Mode of Sale. SEC 2603 Mode of Sale. - In the absence of any special En toto
provision, subject to the provisions of Section 2601 above
In the absence of any special provision, subject to the provided, property subject to sale by the customs authorities
provisions of Section 1038 above provided, property subject shall be sold at public auction within thirty (30) days after ten
to sale by the customs authorities shall be sold at public (10) days notice of such sale shall have been conspicuously
auction within thirty (30) days after ten (10) days notice of posted at port and such other advertisement as may appear to
such sale shall have been conspicuously posted at port and the Collector to be advisable in the particular case.
such other advertisement as may appear to the Collector to
be advisable in the particular case.
SEC. 1040. Disposition of Proceeds. SEC 2605 Disposition of Proceeds. - The following charges En toto
shall be paid from the proceeds of the in the order named:
The following charges shall be paid from the proceeds of the
in the order named: a. Expenses of appraisal, advertisement of sale.
172
Expenses of appraisal, advertisement and sale. b. Duties except in the case of abandoned and
forfeited articles.
Duties except in the case of abandoned and forfeited articles.
c. Taxes and other charges due the Government.
Taxes and other charges due the Government.
d. Government storage charges.
Government storage charges.
e. Arrastre and private storage charges.
Arrastre and private storage charges.
f. Freight, lighterage or general average, on the
Freight, lighterage or general average, on the voyage of voyage of importation, of which due notice shall have been
importation, of which due notice shall have been given to the given to the Collector.
Collector.
SEC. 1041. Disposition of Surplus from the Proceeds of SEC 2606 Disposition of Surplus from the Proceeds of Sale of RKC GA Standard 3.45 Amended to reflect proposed provision
Sale of Abandoned or Forfeited or Acquired Articles. Abandoned or Forfeited or Acquired Articles. Except in the creating forfeiture fund under Sec
case of the sale of abandoned or forfeited articles, and articles 3.45. Transitional Standard 1050 of this Act.
Except in the case of the sale of abandoned or forfeited which are not claimed by payment of duties, taxes and other
articles, and articles which are not claimed by payment of charges and compliance with all legal requirements within the When the Customs sell goods which have
duties, taxes and other charges and compliance with all legal prescribed period, any surplus remaining after the satisfaction not been declared within the time allowed
requirements within the prescribed period, any surplus of all unlawful charges as aforesaid shall be retained by the or could not be released although no
remaining after the satisfaction of all unlawful charges as Collector for ten (10) days subject to the call of the owner. offence has been discovered, the
aforesaid shall be retained by the Collector for ten (10) days proceeds of the sale, after deduction of
subject to the call of the owner. Upon failure of the owner to claim such surplus within this any duties and taxes and all other charges
period, the Collector shall deposit such amount in a special and expenses incurred, shall be made
Upon failure of the owner to claim such surplus within this trust fund which shall be used solely for the purpose of over to those persons entitled to receive
period, the Collector shall deposit such amount in THE financingthe compulsory acquisition of imported goods by the them or, when this is not possible, held at
FORFEITURE FUND CREATED UNDER THIS ACT. government as provided in Section 2317 hereof. their disposal for a specified period.
In all such cases the Collector shall report fully his action in In all such cases the Collector shall report fully his action in the
the matter, together with all the particulars, to the matter, together with all the particulars, to the Commissioner
Commissioner and to the Chairman on Audit. and to the Chairman on Audit. After one year, the unused
amounts in such special trust funds, except for an amount
necessary to finance forced government acquisitions before
the first auction of the succeeding year, shall be turned over to
the Bureau of Treasury as customs receipts. (R.A. 9135, April
27, 2001)
SEC. 1042. Disposition of Articles Liable to Deterioration. SEC 2607 Disposition of Articles Liable to Deterioration. - En toto
Perishable articles shall be deposited in any appropriate
Perishable articles shall be deposited in any appropriate bonded warehouse; and, if not immediately entered for export
173
bonded warehouse; and, if not immediately entered for export or for transportation from the vessel or aircraft in which
or for transportation from the vessel or aircraft in which imported or entered for consumption and the duties and taxes
imported or entered for consumption and the duties and taxes paid thereon, such articles may be sold at auction, after such
paid thereon, such articles may be sold at auction, after such public notice, not exceeding three days, as the necessities of
public notice, not exceeding three days, as the necessities of the case permit.
the case permit.
When seizure shall be made of property which, in the opinion
When seizure shall be made of property which, in the opinion of the Collector, is liable to perish or be wasted or to depreciate
of the Collector, is liable to perish or be wasted or to greatly in value by keeping or which cannot be kept without
depreciate greatly in value by keeping or which cannot be great disproportionate expense, whether such property
kept without great disproportionate expense, whether such consists of live animals or of any article, the appraiser shall so
property consists of live animals or of any article, the certify in his appraisal, then the Collector may proceed lo
appraiser shall so certify in his appraisal, then the Collector advertise and sell the same at auction, upon notice as he shall
may proceed lo advertise and sell the same at auction, upon deem to be reasonable.
notice as he shall deem to be reasonable.
The same disposition may be made of any warehoused articles
The same disposition may be made of any warehoused when the opinion of the Collector it is likely that the cost of
articles when the opinion of the Collector it is likely that the depreciation, damage, leakage, or other causes, may so
cost of depreciation, damage, leakage, or other causes, may reduce its value as to be insufficient to pay the duties, taxes
so reduce its value as to be insufficient to pay the duties, and other charges due thereon, if should be permitted to be so
taxes and other charges due thereon, if should be permitted to kept and be subjected to sale in the usual course.
be so kept and be subjected to sale in the usual course.
SEC. 1043. Disposition of Articles Unfit for Use or Sale or SEC 2608 Disposition of Articles Unfit for Use or Sale or En toto
Injurious to Public Health. Injurious to Public Health. - When any article, which in the
opinion of the Collector, is a menace to public health, is seized
When any article, which in the opinion of the Collector, is a or otherwise comes into the custody of the Bureau of Customs,
menace to public health, is seized or otherwise comes into the the Collector of the port shall, if the matter is not disposable
custody of the Bureau of Customs, the Collector of the port under the provisions relating to food and drugs, appoint a
shall, if the matter is not disposable under the provisions board of three members to examine the article. Whenever
relating to food and drugs, appoint a board of three members possible, one member shall be a representative of the
to examine the article. Whenever possible, one member shall Department of Health or of local health officer, and the two
be a representative of the Department of Health or of local others shall be responsible officials of the Bureau of Customs
health officer, and the two others shall be responsible officials at least one of whom shall be an appraiser. Such board shall
of the Bureau of Customs at least one of whom shall be an examine said article, and if the same is found a be unfit or a
appraiser. Such board shall examine said article, and if the menace to the public health, the board shall so report in writing
same is found a be unfit or a menace to the public health, the to the Collector, who shall forthwith order its destruction in such
board shall so report in writing to the Collector, who shall manner as the case may require.
forthwith order its destruction in such manner as the case may
require. Health authorities at port of entry shall collaborate with the
174
Health authorities at port of entry shall collaborate with the collectors in such matters with reasonable dispatch.
collectors in such matters with reasonable dispatch.
SEC. 1044. Disposition of Contraband. SEC 2609 Disposition of Contraband. - Article of prohibited En toto
importation or exportation, known as contraband, shall, in the
Article of prohibited importation or exportation, known as absence of special provision, be dealt with as follows:
contraband, shall, in the absence of special provision, be dealt
with as follows: a. Dynamite, gunpowder, ammunition and other
explosives, firearms and weapons of war and parts thereof,
Dynamite, gunpowder, ammunition and other explosives, shall be turned over to the Armed Forces of the Philippines;
firearms and weapons of war and parts thereof, shall be
turned over to the Armed Forces of the Philippines; b. If the article in question is highly dangerous to be
kept or handled, it shall forthwith be destroyed;
If the article in question is highly dangerous to be kept or
handled, it shall forthwith be destroyed; c. Contraband coin or bullion, foreign currencies and
negotiable instruments shall accrue to the Stabilization Fund of
Contraband coin or bullion, foreign currencies and negotiable the Central Bank subject to the payment of the expenses
instruments shall accrue to the Stabilization Fund of the incident to seizure, including the reward to the informer, if any;
BANGKO SENTRAL NG PILIPINAS subject to the payment of
the expenses incident to seizure, including the reward to the d. Other contraband of commercial value and capable
informer, if any; of legitimate use may be sold under such restrictions as will
insure its use for legitimate purposes only; but if the thing is
Other contraband of commercial value and capable of unfit for use or the Collector is of the opinion that, if sold, it
legitimate use may be sold under such restrictions as will would be used for unlawful purposes, it shall be destroyed in
insure its use for legitimate purposes only; but if the thing is such manner as the Collector shall direct.
unfit for use or the Collector is of the opinion that, if sold, it
would be used for unlawful purposes, it shall be destroyed in
such manner as the Collector shall direct.
SEC. 1045. Disposition of Unsold Articles for Want of SEC 2610 Disposition of Unsold Articles for Want of Bidders. - En toto
Bidders. Articles subject to sale at public auction by Customs authorities
shall be sold at a price not less than the wholesale value or
Articles subject to sale at public auction by Customs price in the domestic market of these or similar articles in the
authorities shall be sold at a price not less than the wholesale usual wholesale quantities and in the ordinary course of trade
value or price in the domestic market of these or similar as determined in accordance with section twenty-three
articles in the usual wholesale quantities and in the ordinary hundred and five of this Code.
course of trade as determined in accordance with Section
1019 of this ACT. When any article remains unsold in at least two public biddings
for want of bidders or for the lack of an acceptable bid, and the
When any article remains unsold in at least two public article is perishable and/or suitable for official use, then the
biddings for want of bidders or for the lack of an acceptable Collector shall report the matter immediately to the
175
bid, and the article is perishable and/or suitable for official Commissioner of Customs who may, subject to the approval of
use, then the Collector shall report the matter immediately to the Secretary of Finance, authorize the official use of that
the Commissioner of Customs who may, subject to the article by the Bureau of Customs to promote the intensive
approval of the Secretary of Finance, authorize the official use collection of taxes and/or to help prevent or suppress
of that article by the Bureau of Customs to promote the smuggling and other frauds upon the Customs, and if the
intensive collection of taxes and/or to help prevent or article is not suitable for such use, then it may be channeled to
suppress smuggling and other frauds upon the Customs, and the official use of other offices of the National Government. If
if the article is not suitable for such use, then it may be the article is suitable for shelter or consists of foodstuffs,
channeled to the official use of other offices of the National clothing materials or medicines then that article shall be given
Government. If the article is suitable for shelter or consists of to government charitable institutions through the Department of
foodstuffs, clothing materials or medicines then that article Social Services and Development.
shall be given to government charitable institutions through
the Department of Social Services and Development. If the article offered for sale is not suitable either for official use
or charity, then the same may be reexported as government
If the article offered for sale is not suitable either for official property through the Department of Trade or any other
use or charity, then the same may be reexported as government entity through barter or sale. If the article cannot
government property through the Department of Trade or any be disposed of as provided above, the Collector shall report the
other government entity through barter or sale. If the article matter immediately to the Commissioner who may, subject to
cannot be disposed of as provided above, the Collector shall the approval of the Secretary of Finance, dispose of the article
report the matter immediately to the Commissioner who may, to the best advantage of the government in a negotiated
subject to the approval of the Secretary of Finance, dispose of private sale which shall be consummated in the presence of a
the article to the best advantage of the government in a representative of the Commission on Audit, in the manner
negotiated private sale which shall be consummated in the provided for by this Code.
presence of a representative of the Commission on Audit, in
the manner provided for by this ACT.
SEC. 1046. Treatment of Dangerous Explosives. SEC 2611 Treatment of Dangerous Explosives. - Gunpowder En toto
or other dangerous or explosive substances, including
Gunpowder or other dangerous or explosive substances, firecrackers, shall not be deposited in a bonded warehouse,
including firecrackers, shall not be deposited in a bonded and when not entered for immediate use, transportation or
warehouse, and when not entered for immediate use, export, shall be subject to such disposition, in the discretion of
transportation or export, shall be subject to such disposition, the Commissioner of Customs, consistent with public safety.
in the discretion of the Commissioner of Customs, consistent
with public safety. Expenses incurred in such disposition shall Expenses incurred in such disposition shall constitute a lien on
constitute a lien on the articles and a charge against the the articles and a charge against the owner.
owner.
SEC. 1047. Disposition of Smuggled Articles. SEC 2612 Disposition of Smuggled Articles. - Smuggled En toto
articles, after liability to seizure or forfeiture shall have been
Smuggled articles, after liability to seizure or forfeiture shall established by proper administrative or judicial proceedings in
have been established by proper administrative or judicial
176
proceedings in conformity with the provisions of this ACT, conformity with the provisions of this Code, shall be disposed
shall be disposed of as provided for in Section 1046: of as provided for in section twenty -six hundred and ten:
Provided, That articles whose importation is prohibited under Provided, That articles whose importation is prohibited under
Section 132 sub -paragraphs b, c, d, e and j shall, upon order Section One Hundred Two sub -paragraphs b, c, d, e and j
to the Collector in writing, be burned or destroyed, in such shall, upon order to the Collector in writing, be burned or
manner as the case may require as to render them absolutely destroyed, in such manner as the case may require as to
worthless, in the presence of a representative each from the render them absolutely worthless, in the presence of a
Commission on Audit, DEPARTMENT of Justice, Bureau of representative each from the Commission on Audit, Ministry of
Customs, and if possible, any representative of the private Justice, Bureau of Customs, and if possible, any representative
sector. of the private sector.
SEC. 1048. FORFEITURE FUND New provision. The proposed forfeiture

fund is patterned after US customs
ALL THE NET PROCEEDS OF SALE OF ARTICLES model. It is designed to logistically
ENUMERATED IN SECTION 1038 OF THIS ACT EXCEPT empower customs to better manage its
PARAGRAPH (A) ON IMPLIED ABANDONMENT SHALL BE inventory and disposition of
DEPOSITED IN AN ACCOUNT TO BE KNOWN AS seized/abandoned/forfeited goods
FORFEITURE FUND. IN CASE OF SALE OF GOODS THAT through possible private outsourcing,
ARE IMPLIEDLY ABANDONED, ONLY THE PORTION OF facilitate abandonment and seizure
THE PROCEEDS PERTAINING TO DUTIES AND TAXES proceedings, as well as their eventual
AND OTHER CHARGES DUE ON THE ARTICLES SHALL disposition as may be the case, and
ALSO BE DEPOSITED IN SAID FUND. THE FUND SHALL support its clearance facilitation
BE IN THE NAME OF AND TO BE MANAGED BY THE programs and intelligence and
BUREAU OF CUSTOMS WHICH IS HEREBY AUTHORIZED, enforcement operations. The fund
SUBJECT TO THE USUAL GOVERNMENT ACCOUNTING covers need proceeds of all auction
RULES AND REGULATIONS, TO UTILIZE THE SAME FOR sales except in the case of implied
THE FOLLOWING PURPOSES: abandonment where under the RKC
standards, customs is duti-bound to
TO OUTSOURCE, SUBJECT TO THE RULES ON return surplus of proceeds net of
GOVERNMENT PROCUREMENT ESTABLISHED BY LAW, duties and taxes and other auction
THE MANAGEMENT OF THE INVENTORY, SAFEKEEPING, expenses to the consignee (Section
MAINTENANCE, AND SALE OF ARTICLES ENUMERATED 116 of this Act). The Fund is proposed
IN SECTION 1039 OF THIS ACT TO PRIVATE SERVICE to be managed by BoC subject to
PROVIDERS; PROVIDED, THAT THE BUREAU OF regulation to be jointly issued by DoF
CUSTOMS SHALL RETAIN JURISDICTIONAL CONTROL and DBM and to the usual government
AND SUPERVISION OVER THESE ARTICLES AS WELL AS accounting rules.
THE OPERATIONS OF THE SERVICE PROVIDER SO
CONTRACTED;
TO FACILITATE CUSTOMS ABANDONMENT AND
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SEIZURE AND FORFEITURE PROCEDINGS AND THE
DISPOSITION OF ABANDONED AND FORFEITED
ARTICLES, PARTICULARLY THOSE TO BE DISPOSED OF
OTHER THAN THROUGH PUBLIC SALE;
TO ENHANCE CUSTOMS INTELLIGENCE AND

ENFORCEMENT CAPABILITY TO PREVENT SMUGGLING;
TO SUPPORT THE COMPUTERIZATION PROGRAM AND

OTHER OPERATIONAL EFFICIENCY AND TRADE
FACILITATION INITIATIVES OF THE BUREAU OF
CUSTOMS.
THE DEPARTMENT OF FINANCE AND THE DEPARTMENT

OF BUDGET MANAGEMENT SHALL, UPON THE
RECOMMENDATION OF THE BUREAU OF CUSTOMS,
ISSUE A JOINT REGULATION TO IMPLEMENT THE
PROVISIONS OF THIS ACT.
TITLE 11. POST CLEARANCE AUDIT
SEC. 1100. Requirement to Keep Records. SEC 3514 Requirement to Keep Records. All importersvare Patterned after international PEA practice Major amendment. Coverage of Audit
required to keep at their principal place of business, in expanded to include persons or
All importers are required to keep at their principal place of thevmanner prescribed by regulations to be issued by the entities other than the named
business, in the manner prescribed by regulations to be Commissioner of Customs and for a period of three (3) years importer/consignee. This is intended to
issued by the Commissioner of customs and for a period of from the date of importation, all the records of their cover entities that are importing
three (3) years from the date of importation, all records importations and/or books of accounts, business and computer through third parties (named
WHICH: systems and all customs commercial data including payment consignee) which are not acting
records relevant for the verification of the accuracy of the independently of said entities;
PERTAIN TO ANY SUCH ACTIVITY, OR TO THE transaction value declared by the importers/customs brokers beneficial owners; agents acting in
INFORMATION CONTAINED IN THE RECORDS REQUIRED on the import entry. behalf of importers so as to make
BY THIS TITLE IN CONNECTION WITH ANY SUCH effective the exercise of PEA power
ACTIVITY; AND All brokers are required to keep at their principal place of over imports. Under the current law,
business, in the manner prescribed by regulations to be issued PEAs audit authority is limited only to
ARE NORMALLY KEPT IN THE ORDINARY COURSE OF by the Commissioner of Customs and for a period of three (3) the importer or named consignee.
BUSINESS. years from the date of importation copies of the above Under the implementing rules (CAO 5-
mentioned records covering transactions that they handle. 2001) importer was by regulation
(R.A. 9135, Apri127,2001) expanded to include beneficial owner
FOR THE PURPOSES OF THE POST ENTRY AUDIT AND which expansion by mere
SECTION 1103 OF THIS TITLE, THE TERM IMPORTER administrative fiat appears legally
178
INCLUDES THE FOLLOWING: weak, hence the required amendment.
IMPORTER-OF-RECORD OR CONSIGNEE,
OWNER/DECLARANT, OR OTHER PARTY WHO --
A new provision is requiring
IMPORTS ARTICLES INTO THE PHILIPPINES OR locators/operators in special economic
WITHDRAWS SUCH ARTICLES INTO THE PHILIPPINE and free port zones to keep records to
CUSTOMS TERRITORY FOR CONSUMPTION OR the extent that their activities involve
WAREHOUSING; , FILES A CLAIM FOR REFUND OR withdrawal or removal from these
DRAWBACK;, OR TRANSPORTS OR STORES SUCH zones. Such obligation is necessary to
ARTICLES CARRIED OR HELD UNDER BOND, OR ensure that withdrawal or removal of
zone-bound goods complies with
KNOWINGLY CAUSES THE IMPORTATION OR customs laws, particularly with respect
TRANSPORTATION OR STORAGE OF IMPORTED to valuation and tariff classification.
ARTICLES REFERRED TO ABOVE, OR THE FILING OF
REFUND OR DRAWBACK CLAIM. ;
AGENT OF ANY PARTY DESCRIBED IN PARAGRAPH (1);

OR
PERSON WHOSE ACTIVITIES REQUIRE THE FILING OF A

GOODS DECLARATION.
PERSON ORDERING IMPORTED ARTICLES FROM A

LOCAL IMPORTER/SUPPLIER IN A DOMESTIC
TRANSACTION SHALL BE EXEMPTED FROM THIS
SECTION UNLESS - -
THE TERMS AND CONDITIONS OF THE IMPORTATION

ARE CONTROLLED BY THE PERSON PLACING THE
ORDER; OR
THE CIRCUMSTANCES AND NATURE OF THE

RELATIONSHIP BETWEEN THE PERSON PLACING THE
ORDER AND THE IMPORTER/SUPPLIER ARE SUCH THAT
THE FORMER MAY BE CONSIDERED AS THE
BENEFICIAL OR TRUE OWNER OF THE IMPORTED
ARTICLES; OR
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ASSISTS WERE FURNISHED BY THE PERSON PLACING
THE ORDER WITH KNOWLEDGE THAT THEY WILL BE
USED IN THE MANUFACTURE OR PRODUCTION OF THE
IMPORTED ARTICLES.
All CUSTOMS brokers are required to keep at their principal

place of business, in the manner prescribed by regulations to
be issued by the Commissioner of Customs and for a period
of three (3) years from the date of importation copies of the
above mentioned records covering transactions that they
handle and all other parties engaged in customs clearance
and processing.
LOCATORS OR PERSONS AUTHORIZED TO BRING

IMPORTED ARTICES INTO FREE ZONES, SUCH AS THE
SPECIAL ECONOMIC ZONES AND FREE PORTS, ARE
REQUIRED TO KEEP SUBJECT RECORDS TO THE
EXTENT THAT THEIR ACTIVITIES INCLUDE IN WHOLE OR
IN PART THE WITHDRAWAL OF IMPORTED ARTICLES
FROM SAID ZONES INTO THE CUSTOMS TERRITORY.
SEC 1101. Compliance Audit or Examination of Records. SEC 3515 Compliance Audit or Examination of Records. Major amendment. The provision on
The importers/customs brokers shall allow any customs officer documents/records t required to be
The importer/customs broker shall allow any customs officer authorized by the Bureau of Customs to enter during office kept is revised with the qualifying
authorized by the Bureau of Customs to enter during office hours any premises or place where the records referred to in words which may be relevant to the
hours any premises or place where the records referred to in the preceding section are kept to conduct audit examination, investigation or inquiry to make it
the preceding section are kept to conduct audit examination, inspection, verification and/or investigation of those records more general in scope to lessen
inspection, verification and/or investigation of those records either in relation to specific transactions or to the adequacy chance of being challenged. However,
DESCRIBED IN THE AUDIT NOTICE WITH REASONABLE and integrity of the manual or electronic system or systems by the proposed provision also mandates
SPECIFICITY, WHICH MAY BE RELEVANT TO SUCH which such records are created and stored. For this purpose, a that the audit should describe with
INVESTIGATION OR INQUIRY. For this purpose, a duly duly authorized customs officer shall have full and free access reasonable specifity the documents
authorized officer shall have full and free access to all to all books, records, and documents necessary or relevant for that will be reviewed to prevent
records (WHICH FOR PURPOSES OF THIS SECTION the purpose of collecting the proper duties and taxes. arbitrariness and possible fishing
INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS, expedition.
DECLARATIONS, DOCUMENTS AND ELECTRONICALLY In addition, the authorized customs officer may make copies of,
GENERATED OR MACHINE READABLE DATA) for the or take extracts from any such documents. The records or
purpose of ASCERTAINING THE CORRECTNESS OF THE documents must, as soon as practicable after copies of such
DECLARATION IN THE IMPORT ENTRY AND have been taken, be returned to the person in charge of such
DETERMINING THE LIABILITY OF THE IMPORTER FOR documents.
DUTIES, TAXES, AND OTHER CHARGES, INCLUDING
A copy of any such document certified by or on behalf of the
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ANY FINE/S AND/OR PENALTY/IES, OR OTHERWISE FOR importer/broker is admissible in evidence in all courts as if it
ENSURING COMPLIANCE WITH CUSTOMS AND TARIFF were the original.
LAWS..
An authorized customs officer is not entitled to enter any
A copy of any such document certified by or on behalf of the premises under this Section unless, before so doing, the officer
importer is admissible in evidence in all courts as if it were the produces to the person occupying or apparently in charge of
original. the premises written evidence of the fact that he or she is an
authorized officer. The person occupying or apparently in
An authorized customs officer is not entitled to enter any charge of the premises entered by an officer shall provide the
premises under this section unless, before so doing, the officer with all reasonable facilities and assistance for the
officer produces to the person occupying or apparently in effective exercise of powers under this Section.
charge of the premises written evidence of the fact that he or
she is an authorized officer. The person occupying or Unless otherwise provided herein or in other provisions of law,
apparently in charge of the premises entered by an officer the Bureau of Customs may, in case of disobedience, invoke
shall provide the officer with all reasonable facilities and the aid of the proper regional trial court within whose
assistance for the effective exercise of powers under this jurisdiction the matter falls. The court may punish contumacy or
section. refusal as contempt. In addition, the fact that the
importer/broker denies the authorized customs officer full and
Unless otherwise provided herein or in other provisions of law, free access to importation records during the conduct of a post-
the Bureau of Customs may, in case of disobedience, invoke entry audit shall create a presumption of inaccuracy in the
the aid of the proper regional trial court within whose transaction value declared for their imported goods and
jurisdiction the matter falls. The court may punish contumacy constitute grounds for the Bureau of Customs to conduct a re-
or refusal as contempt. In addition, the fact that the assessment of such goods.
importer/broker denies the authorized customs officer full and
free access to importation records during the conduct of a This is without prejudice to the criminal sanctions imposed by
post-entry audit shall create a presumption of inaccuracy in this Code and administrative sanctions that the Bureau of
the transaction value declared for their imported goods and Customs may impose against contumacious importers under
constitute grounds for the Bureau of Customs to conduct a re- existing laws and regulations including the authority to hold
assessment of such goods. delivery or release of their imported articles. (R.A. 9135, April
27, 2001)
This is without prejudice to the criminal sanctions imposed by
this ACT and administrative sanctions that the Bureau of
Customs may impose against contumacious importers under
existing laws and regulations including the authority to hold
delivery or release of their imported articles.
SEC 1102 . POWER OF THE COMMISSIONER TO OBTAIN New provision. New provision
INFORMATION AND ISSUE SUMMONS. empowering Customs to issue
summons in relation to PEA
FOR THE EFFECTIVE IMPLEMENTATION OF THE POST investigation. Based on experience, it
ENTRY AUDIT FUNCTIONS OF THE BUREAU OF is difficult to effectively carry out the
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CUSTOMS, THE COMMISSIONER OF CUSTOMS IS PEA mandate without the coercive
HEREBY AUTHORIZED: powers being sought in this provision.
A) TO OBTAIN ON A REGULAR BASIS FROM ANY

PERSON IN ADDITION TO THE PERSON WHO IS THE
SUBJECT OF A POST CLEARANCE AUDIT OR
INVESTIGATION, OR FROM ANY OFFICE OR OFFICER OF
THE NATIONAL AND LOCAL GOVERNMENTS,
GOVERNMENT AGENCIES AND INSTRUMENTALITIES,
INCLUDING THE BANGKO SENTRAL NG PILIPINAS AND
GOVERNMENT-OWNED OR -CONTROLLED
CORPORATIONS, ANY INFORMATION SUCH AS, BUT
NOT LIMITED TO, COSTS AND VOLUME OF
PRODUCTION, RECEIPTS OR SALES AND GROSS
INCOMES OF TAXPAYERS, AND THE NAMES,
ADDRESSES, AND FINANCIAL STATEMENTS OF
CORPORATIONS, REGIONAL OPERATING
HEADQUARTERS OF MULTINATIONAL COMPANIES,
JOINT ACCOUNTS, ASSOCIATIONS, JOINT VENTURES
OR CONSORTIA AND REGISTERED PARTNERSHIPS,
AND THEIR MEMBERS, WHOSE BUSINESS OPERATIONS
OR ACTIVITES ARE DIRECTLY OR INDIRECTLY
INVOLVED IN THE IMPORTATION AND/OR EXPORTATION
OF IMPORTED ARTICLES OR PRODUCTS
MANUFACTURED FROM IMPORTED COMPONENT
MATERIALS;
B) TO SUMMON THE PERSON LIABLE FOR

DUTIES AND TAXES OR REQUIRED TO FILE AN ENTRY,
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 HIS DULY
AUTHORIZED REPRESENTATIVE AT A TIME AND PLACE
SPECIFIED IN THE SUMMONS AND TO PRODUCE SUCH
BOOKS, PAPERS, RECORDS, OR OTHER DATA, AND TO
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GIVE TESTIMONY;
C) TO TAKE SUCH TESTIMONY OF THE PERSON

CONCERNED, UNDER OATH, AS MAY BE RELEVANT OR
MATERIAL TO SUCH INQUIRY.
D) To obtain information from banks or other financial

institutions on commercial documents and records pertaining
specifically to payments relevant to import transaction.
THE PROVISIONS OF THE FOREGOING PARAGRAPHS

NOTWITHSTANDING, NOTHING IN THIS SECTION SHALL
BE CONSTRUED AS GRANTING THE COMMISSIONER
THE AUTHORITY TO INQUIRE INTO BANK DEPOSITS OF
PERSONS OR ENTITES MENTIONED IN THIS TITLE.
SEC. 1103. Failure to Pay Correct Duties and Taxes on SEC 3611 Failure to Pay Correct Duties and Taxes on RKC GA Standard 3.39 on the non- Major amendment. Penalty regime
Imported Goods. Imported Goods. Any person who, after being subjected to imposition of substantial penalties on reduced to 2 (Negligence and Fraud).
postentry audit and examination as provided in Section 3515 of inadvertent errors or simple negligence Amount of penalty fix at 50% of
Any person who, after being subjected to post entry audit and Part 2, Title VII hereof, is found to have incurred deficiencies in deficiency on duties, taxes and other
examination as provided in Section 1101 hereof, is found to duties and taxes paid for imported goods, shall be penalized 3.39. Standard charges, and 100% landed cost. This
have incurred deficiencies in duties and taxes paid for according to three (3) degrees of culpability subject to any is in line with the RKC standard on
imported goods, shall be penalized according to TWO (2) mitigating, aggravating or extraordinary factors that are clearly The Customs shall not impose substantial penalty impositions that call for
degrees of culpability subject to any mitigating, aggravating or established by the available evidence: penalties for errors where they are reasonableness. This principle is
extraordinary factors that are clearly established by the satisfied that such errors are inadvertent enunciated in Section 113 of this Act.
available evidence: (a) Negligence - When a deficiency results from an and that there has been no fraudulent
offender's failure, through an act or acts of omission or intent or gross negligence. Where they
Negligence - When a deficiency results from an offender's commission, to exercise reasonable care and competence to consider it necessary to discourage a
failure, through an act or acts of omission or commission, to ensure that a statement made is correct, it shall be determined repetition of such errors, a penalty may be
exercise reasonable care and competence to ensure that a to be negligent and punishable by a fine equivalent to not less imposed but shall be no greater than is
statement made is correct, it shall be determined to be than one-half (1/2) but not more than two (2) times the revenue necessary for this purpose.
negligent and punishable by a fine equivalent to FIFTY loss.
PERCENT (50%) not less than one-half (1/2) but not more
than two (2) times the revenue loss] THE DEFICIENCY IN (b) Gross Negligence - When a deficiency results from
DUTIES, TAXES, AND OTHER CHARGES. an act or acts of omission or commission done with actual
knowledge or wanton disregard for the relevant facts and with
Fraud - When the material false statement or act in indifference to or disregard for the offender's obligation under
connection with the transaction was committed or omitted the statute, it shall be determined to be grossly negligent and
knowingly, voluntarily and intentionally, as established by punishable by a fine equivalent to not less than two and a half
clear and convincing evidence, it shall be determined to be (2 1/2) but not more than four (4) times the revenue loss.
fraudulent and be punishable by a fine equivalent to ONE
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HUNDRED PERCENT (100%) OF THE LANDED COST OF (c) Fraud - When the material false statement or act in
EVERY IMPORTATION FOUND TO HAVE FRAUDULENT connection with the transaction was committed or omitted
DEFICIENCIES IN DUTIES AND TAXES and imprisonment knowingly, voluntarily and intentionally, as established by clear
of not less than two (2) years but not more than eight (8) and convincing evidence, it shall be determined to be
years. fraudulent and be punishable by a fine equivalent to not less
than five (5) times but not more than eight (8) times the
The decision of the Commissioner of Customs, upon proper revenue loss and imprisonment of not less than two (2) years
hearing, to impose penalties as prescribed in this Section may but not more than eight (8) years.
be appealed in accordance with Section 1037 hereof.
The decision of the Commissioner of Customs, upon proper
hearing, to impose penalties as prescribed in this Section may
be appealed in accordance with Section 2402 hereof. (R.A.
9135, April 27, 2001)
SEC. 1104. Records to be Kept by Customs. SEC 3518 . Records to be Kept by Customs. The Bureau of En toto
Customs shall likewise keep a record of audit results in a
The Bureau of Customs shall likewise keep a record of audit database of importer and broker profiles, to include but not be
results in a database of importer and broker profiles, to limited to:
include but not be limited to:
(a) Articles of Incorporation;
Articles of Incorporation;
(b) The company structure, which shall include but not
The company structure, which shall include but not be limited be limited to:
to:
(1) Incorporators and Board of Directors;
Incorporators and Board of Directors;
(2) Key officers; and
Key officers; and
(3) Organizational structure;
Organizational structure;
(c) Key importations;
Key importations;
(d) Privileges enjoyed;
Privileges enjoyed;
(e) Penalties; and
Penalties; and
(f) Risk category (ies). (R.A. 9135, April 27, 2001)
Risk category (ies).
TITLE 12. CUSTOMS FRAUD
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SEC. 1200. FRAUD INVESTIGATION AND PROSECUTION New provision defining the power and
function to investigate and prosecute
NO CRIMINAL CASE FOR VIOLATION OF THIS TITLE criminal cases involving fraud against
SHALL BE INSTITUTED WITHOUT THE APPROVAL OF customs.
THE COMMISSIONER OF CUSTOMS OR THE DISTRICT
COLLECTOR OF CUSTOMS PURSUANT TO THE
SUCCEEDING PARAGRAPH.
THE DISTRICT COLLECTOR SHALL HAVE THE POWER

TO INVESTIGATE AND INSTITUTE SMUGGLING CASES
COMMITTED WITHIN HIS JURISDICTION PROVIDED THAT
IN CASE OF INQUEST, THE SAME MAY BE INSTITUTED
BY THE APPREHENDING CUSTOMS OFFICERS.
TITLE 13. THIRD PARTIES
CHAPTER 1. CUSTOMS BROKERS
SEC. 1300. Practice of Customs Broker Profession. RA 9280 Standard 3.7 of the RKC General Annex, New provision empowering customs
RA No. 9280, specifically Section 27 through Department-level regulation to
UPON RECOMMENDATION OF THE COMMISSIONER OF should be amended require the accreditation of Licensed
CUSTOMS, THE SECRETARY OF FINANCE SHALL ISSUE Customs Brokers to ensure
THE NECESSARY RULES AND REGULATIONS FOR THE 3.7. Standard compliance with customs laws.
ACCREDITATION OF CUSTOMS BROKERS AND FOR
ENSURING THEIR COMPLIANCE WITH CUSTOMS LAWS, Any person having the right to dispose of
RULES AND REGULATIONS. the goods shall be entitled to act as
declarant.
CHAPTER 2. CARRIERS, VESSELS AND AIRCRAFTS
SEC. 1301. Ports Open to Vessels AND AIRCRAFTS SEC 1001 Ports Open to Vessels Engaged in Foreign Trade. - Last paragraph recommended for
Engaged in Foreign Trade - Duty of Vessel to Make Entry. Duty of Vessel to Make Entry. - Vessels engaged in the foreign deletion for being unnecessary.
trade shall touch at ports of entry only, except as otherwise
Vessels and aircrafts engaged in the foreign trade shall touch specially allowed; and every such vessel arriving within a
at ports of entry only, except as otherwise specially allowed; customs collection district of the Philippines from a foreign port
and every such vessel OR AIRCRAFT arriving within a make entry at the port of entry for such district and shall be
customs collection district of the Philippines from a foreign subject to the authority of the Collector of the port while within
port make entry at the port of entry for such district and shall his jurisdiction.
be subject to the authority of the Collector of the port while
within his jurisdiction. The master of any war vessel employed by any foreign
government shall not be required to report, enter on arrival in
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the Philippines, unless engaged in the transportation of articles
in the way of trade.
SEC. 1302. Control of Customs Official Over Boarding or SEC 1002 Control of Customs Official Over Boarding or En toto
Leaving of Incoming Vessel and Over Other Vessel Leaving of Incoming Vessel and Over Other Vessel
Approaching the Former. Approaching the Former. - Upon the arrival in port of any
vessel engaged in foreign trade, it shall be unlawful for any
Upon the arrival in port of any vessel engaged in foreign person (except the pilot, consul, quarantine officials, custom
trade, it shall be unlawful for any person (except the pilot, officials or other duly authorized persons ) to board or leave the
consul, quarantine officials, custom officials or other duly vessel without permission of the customs official in charge; and
authorized persons ) to board or leave the vessel without it shall likewise be unlawful for any tugboat, rowboat or other
permission of the customs official in charge; and it shall craft to go along side and take any person aboard such vessel
likewise be unlawful for any tugboat, rowboat or other craft to or take any person therefrom, except as aforesaid, or loiter
go along side and take any person aboard such vessel or take near or along side such vessel. Unauthorized tugboats, and
any person therefrom, except as aforesaid, or loiter near or other vessels shall keep away from such vessel engaged in
along side such vessel. Unauthorized tugboats, and other foreign trade at a distance of not less than fifty meters.
vessels shall keep away from such vessel engaged in foreign
trade at a distance of not less than fifty meters.
SEC. 1303. Quarantine Certificate for Incoming Vessel or SEC 1003 Quarantine Certificate for Incoming Vessel. - Entry En toto
Aircraft. of a vessel from a foreign port or place outside of the
Philippines shall not be permitted until it has obtained a
Entry of a vessel or aircraft from a foreign port or place quarantine certificate issued by the Bureau of Quarantine.
outside of the Philippines shall not be permitted until it has
obtained a quarantine certificate issued by the Bureau of
Quarantine.
SEC. 1304. Documents to be Produced by the Master SEC 1004 Documents to be Produced by the Master Upon Minor amendment to make the
Upon Entry of Vessel. Entry of Vessel. - For the purpose making entry of a vessel provision more attuned with maritime
engaged in foreign trade, the master thereof shall present the standards/language.
For the purpose making entry of a vessel engaged in foreign following document duly certified by him, to the customs
trade, the master thereof shall present the following document boarding officials:
duly certified by him, to the customs boarding officials:
a. The original manifest of all cargo destined for the
THE VESSELS GENERAL DECLARATION port, to be returned with the indorsement of the boarding
officials;
The original manifest of all cargo destined for the port, to be
returned with the indorsement of the boarding officials; b. Three copies of the same manifest, one of which,
upon certification by the boarding official as to the correctness
Three copies of the same manifest, one of which, upon of the copy, shall be returned to the master;
certification by the boarding official as to the correctness of
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the copy, shall be returned to the master; c. A copy of the cargo storage plan;
A copy of the cargo storage plan; d. Two copies of store list;
Two copies of store list; e. One copy of passenger list;
One copy of passenger list; f. One copy of the crew list;
One copy of the crew list; g. The original of all through cargo manifest, for
deposit, while in port, with customs official in charge of the
The original of all through cargo manifest, for deposit, while in vessel;
port, with customs official in charge of the vessel;
h. A passenger manifest of all aliens, in conformity
A passenger manifest of all aliens, in conformity with the with the requirements of the immigration laws in force in the
requirements of the immigration laws in force in the Philippines;
Philippines;
i. One copy of the original duplicate of bills of lading
One copy of the original duplicate of bills of lading fully fully accomplished;
accomplished;
j. The shipping articles and register of the vessel of
The shipping articles and register of the vessel of Philippine Philippine registry.
registry.
AND SUCH OTHER RELATED DOCUMENTS.
SEC. 1305. Manifest Required of Vessel from Foreign SEC 1005 Manifest Required of Vessel from Foreign Port. - RKC Standard 8 of Specific Annex A : En toto
Port. Every vessel from a foreign port must have on board a Arrival of Goods in a Customs Territory,
complete manifest of all her cargo. Chapter 1: Formalities prior to the
Every vessel from a foreign port must have on board a Lodgement of the Goods Declaration
complete manifest of all her cargo. All of the cargo intended to be landed at a port in the
Philippines must be described in separate manifests for each 8. Standard
All of the cargo intended to be landed at a port in the port of call therein. Each manifest shall include the port of
Philippines must be described in separate manifests for each departure and the port of delivery with the marks, numbers, Where the Customs require
port of call therein. Each manifest shall include the port of quantity and description of the packages and the names of the documentation in respect of the production
departure and the port of delivery with the marks, numbers, consignees thereof. Every vessel from a foreign port must have of the goods to the Customs, this shall not
quantity and description of the packages and the names of the on board complete manifests of passengers and their be required to contain more than the
consignees thereof. Every vessel from a foreign port must baggage, in the prescribed form, setting forth their destination information necessary to identify the
have on board complete manifests of passengers and their and all particulars required by immigration laws, and every goods and the means of transport.
baggage, in the prescribed form, setting forth their destination such vessel shall have prepared for presentation to the proper
and all particulars required by immigration laws, and every customs official upon arrival in ports of the Philippines a
such vessel shall have prepared for presentation to the proper complete list of all sea stores then on board. If the vessel does
customs official upon arrival in ports of the Philippines a not carry cargo or passengers, the manifest must show that no
187
complete list of all sea stores then on board. If the vessel cargo or passenger, as the case may be, is carried from the
does not carry cargo or passengers, the manifest must show port of departure to the port of destination in the Philippines.
that no cargo or passenger, as the case may be, is carried
from the port of departure to the port of destination in the A cargo manifest shall in no case be changed or altered after
Philippines. entry of vessel, except by means of an amendment by the
master, consignee or agent thereof, under oath, and attached
A cargo manifest shall in no case be changed or altered after to the original manifest: Provided, however, That after the
entry of vessel, except by means of an amendment by the invoice and/or entry covering an importation have been
master, consignee or agent thereof, under oath, and attached received and recorded in the office of the appraiser, no
to the original manifest: Provided, however, That after the amendment of the manifest shall be allowed, except when it is
invoice and/or entry covering an importation have been obvious that a clerical error or any other discrepancy has been
received and recorded in the office of the appraiser, no committed in the preparation of the manifest, without any
amendment of the manifest shall be allowed, except when it is fraudulent intent, discovery of which would not have been
obvious that a clerical error or any other discrepancy has made until after examination of the importation has been
been committed in the preparation of the manifest, without completed.
any fraudulent intent, discovery of which would not have been
made until after examination of the importation has been
completed.
SEC. 1306. Translation of Manifest. SEC 1006 Translation of Manifest. - The cargo manifest and Minor amendment replacing official
each copy thereof shall be accompanied by a translation into language by English to make the
The cargo manifest and each copy thereof shall be the official language of the Philippines, if originally written in provision more specific.
accompanied by a translation IN ENGLISH, if originally another language.
written in another language.
SEC. 1307. Manifests for Commission on Audit and SEC 1007 Manifests for Commission on Audit and Collector. - En toto
Collector. Papers to be Deposited with Consul. - Immediately after the
arrival of a vessel from a foreign port, the master shall deliver
Papers to be Deposited with Consul. - Immediately after the or mail to the Chairman, Commission on Audit, Manila, a copy
arrival of a vessel from a foreign port, the master shall deliver of the cargo manifests properly indorsed by the boarding
or mail to the Chairman, Commission on Audit, Manila, a copy officer, and the master shall immediately present to the
of the cargo manifests properly indorsed by the boarding Collector the original copy of the cargo manifests properly
officer, and the master shall immediately present to the endorsed by the boarding officer, and, for inspection, the ship's
Collector the original copy of the cargo manifests properly register or other documents in lieu thereof, together with the
endorsed by the boarding officer, and, for inspection, the clearance and other papers granted to the vessel at the port of
ship's register or other documents in lieu thereof, together departure for the Philippines.
with the clearance and other papers granted to the vessel at
the port of departure for the Philippines.
SEC. 1308. Transit Cargo. SEC 1008 Transit Cargo. - When, transit cargo from a foreign En toto
port or other local ports is forwarded from the port of
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When, transit cargo from a foreign port or other local ports is importation separate manifest, in triplicate, shall be presented
forwarded from the port of importation separate manifest, in by each carrier.
triplicate, shall be presented by each carrier.
SEC. 1309. Clearance of Foreign Vessels To and From SEC 1009 Clearance of Foreign Vessels To and From En toto
Coastwise Ports. Coastwise Ports. - Passengers or articles arriving from abroad
upon a foreign vessel may be carried by the same vessel
Passengers or articles arriving from abroad upon a foreign through any port of entry to the port of destination in the
vessel may be carried by the same vessel through any port of Philippines or articles intended for export may be carried in a
entry to the port of destination in the Philippines or articles foreign vessel through a Philippine port.
intended for export may be carried in a foreign vessel through
a Philippine port. Upon such reasonable condition as he may impose, the
Commissioner may clear foreign vessels for any port and
Upon such reasonable condition as he may impose, the authorize the conveyance therein of either articles or
Commissioner may clear foreign vessels for any port and passengers brought from abroad upon such vessels; and he
authorize the conveyance therein of either articles or may likewise, upon such conditions as he may impose, allow a
passengers brought from abroad upon such vessels; and he foreign vessel to take cargo and passengers at any port and
may likewise, upon such conditions as he may impose, allow convey the same, upon such vessel to a foreign port.
a foreign vessel to take cargo and passengers at any port and
convey the same, upon such vessel to a foreign port.
SEC. 1310. Production of Philippine Crew. SEC 1011 Production of Philippine Crew. - The master of a En toto
Philippine vessel returning from abroad shall produce the entire
The master of a Philippine vessel returning from abroad shall crew listed in the vessel's shipping articles; and if any member
produce the entire crew listed in the vessel's shipping articles; be missing, the master shall produce proof satisfactory to the
and if any member be missing, the master shall produce proof Collector that such member has died, absconded, has been
satisfactory to the Collector that such member has died, forcibly impressed into other service, or has been discharged;
absconded, has been forcibly impressed into other service, or and in case of discharge in. a foreign country, he shall
has been discharged; and in case of discharge in. a foreign produce a certificate from the consul, vice- consul or consular
country, he shall produce a certificate from the consul, vice- agent of the Philippines there residing, showing that such
consul or consular agent of the Philippines there residing, discharge was effected with the consent of the representative
showing that such discharge was effected with the consent of of the Philippines aforesaid.
the representative of the Philippines aforesaid.
SEC. 1311. Record of Arrival and Entry of Vessels. SEC 1012 Record of Arrival and Entry of Vessels. - A record En toto
shall be made and kept open to public inspection in every
A record shall be made and kept open to public inspection in customhouse of the date of arrival and entry of all vessels.
every customhouse of the date of arrival and entry of all
vessels.
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SEC. 1312. Arrest of Vessel Departing Before Entry Made. SEC 1013 Arrest of Vessel Departing Before Entry Made. - Minor amendment to involve other
When a vessel arriving within the limits of a collection district government agencies in the arrest of
When a vessel arriving within the limits of a collection district from a foreign port departs or attempts to depart before entry vessels.
from a foreign port departs or attempts to depart before entry shall have been made, not being thereunto compelled by
shall have been made, not being thereunto compelled by stress of weather, duress of enemies, or other necessity, the
stress of weather, duress of enemies, or other necessity, the Collector of the port or the commander of any revenue cutter
Collector of the port may arrest and bring back such vessel to may arrest and bring back such vessel to the most convenient
the most convenient port WITH ASSISTANCE OF OTHER port.
CONCERNED AGENCIES.
SEC. 1313. Discharge of Ballast. SEC 1014 Discharge of Ballast. - When not brought to port as En toto
article, ballast of no commercial value may be discharged upon
When not brought to port as article, ballast of no commercial permit granted by the Collector for such purpose.
value may be discharged upon permit granted by the Collector
for such purpose.
SEC. 1314. Time of Unlading Cargo. SEC 1015 Time of Unlading Cargo. -Articles brought in a En toto
vessel from a foreign port shall be unladen only during regular
Articles brought in a vessel from a foreign port shall be working hours or regular work days. Unlading at any other time
unladen only during regular working hours or regular work or day may or be done upon authority of the Collector
days. Unlading at any other time or day may or be done upon conditioned on the payment of losses and overtime pay by the
authority of the Collector conditioned on the payment of interested parties.
losses and overtime pay by the interested parties.
SEC. 1315. Entrance of Vessel Through Necessity. SEC 1016 Entrance of Vessel Through Necessity. - When a En toto
vessel from a foreign port is compelled, by stress of weather or
When a vessel from a foreign port is compelled, by stress of other necessity to put into any other port than that of her
weather or other necessity to put into any other port than that destination, the master within twenty-four hours after her
of her destination, the master within twenty-four hours after arrival, shall make protest under oath setting forth the causes
her arrival, shall make protest under oath setting forth the or circumstances of such necessity. This protest, if not made
causes or circumstances of such necessity. This protest, if not before the Collector, must be produced to him, and a copy
made before the Collector, must be produced to him, and a thereof lodged with him.
copy thereof lodged with him.
Within the same time, the master shall make a report to the
Within the same time, the master shall make a report to the Collector if any part of the cargo was unladen from necessity or
Collector if any part of the cargo was unladen from necessity lost by casualty before arrival, and such fact should be made to
or lost by casualty before arrival, and such fact should be appear by sufficient proof to the Collector who shall give his
made to appear by sufficient proof to the Collector who shall approval thereto and the unlading shall be deemed to have
give his approval thereto and the unlading shall be deemed to been lawfully effected.
have been lawfully effected.
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SEC. 1316. Unlading of Vessel in Port from Necessity. SEC 1017 Unlading of Vessel in Port from Necessity. -If the En toto
situation is such as to require the unlading of the vessel
If the situation is such as to require the unlading of the vessel pending sojourn in port, the Collector shall, upon sufficient
pending sojourn in port, the Collector shall, upon sufficient proof of the necessity, grant a permit therefore, and the articles
proof of the necessity, grant a permit therefore, and the shall be unladen and stored under the supervision of the
articles shall be unladen and stored under the supervision of customs authorities,
the customs authorities.
At the request of the master of the vessel or the owner thereof,
At the request of the master of the vessel or the owner the Collector may grant permission to enter and pay duties,
thereof, the Collector may grant permission to enter and pay taxes and other charges on, and dispose of, such a part of the
duties, taxes and other charges on, and dispose of, such a cargo as may be perishable nature or as may be necessary to
part of the cargo as may be perishable nature or as may be defray the expenses attending the vessel.
necessary to defray the expenses attending the vessel.
Upon departure, the cargo, or a residue thereof, may be
Upon departure, the cargo, or a residue thereof, may be reladen on board the vessel, and the vessel may proceed with
reladen on board the vessel, and the vessel may proceed with the same to her destination, subject only to the charge for
the same to her destination, subject only to the charge for storing and safe -keeping of the articles and the fees for
storing and safekeeping of the articles and the fees for entrance and clearance.
entrance and clearance.
No port charges shall be collected on vessels entering through
No port charges shall be collected on vessels entering stress of weather or other causes above described.
through stress of weather or other causes above described.
SEC. 1317. Entry and Clearance of Vessels of a Foreign SEC 1018 Entry and Clearance of Vessels of a Foreign En toto
Government. Government. - The entry and clearance transport or supply
ship of a foreign government shall be in accordance with the
The entry and clearance transport or supply ship of a foreign agreement by and between the Philippines and the foreign
government shall be in accordance with the agreement by and government.
between the Philippines and the foreign government.
SEC. 1318. Clearance of Vessel for Foreign Port. SEC 1019 Clearance of Vessel for Foreign Port. - Before a Minor amendment by changing
clearance shall be granted to any vessel bound to a foreign consular certificate with clearance
Before a clearance shall be granted to any vessel bound to a port, the master, or the agent thereof, shall present to the from last port of entry which is the
foreign port, the master, or the agent thereof, shall present to Collector the following properly authenticated documents: international best practice
the Collector the following properly authenticated documents:
a. A bill of health from the quarantine official or official
A bill of health from the quarantine official or official of the of the public health service in the port.
public health service in the port.
b. Three copies of the manifest of export cargo, one of
Three copies of the manifest of export cargo, one of which, which, upon certification by the customs official as to the
upon certification by the customs official as to the correctness
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of the copy, shall be returned to the master. correctness of the copy, shall be returned to the master.
Two copies of the passenger list, showing alien and other c. Two copies of the passenger list, showing alien and
passengers. other passengers.
The register and shipping articles, if the vessel is of Philippine d. The register and shipping articles, if the vessel is of
registry. Philippine registry.
CLEARANCE OF LAST PORT OF ENTRY. e. The consular certificate of entry, if the vessel is of
foreign registry, when required.
A certificate of the Bureau of Posts to the effect that it
received timely notice of the sailing of the Vessel: Provided, f. A certificate of the Bureau of Posts to the effect that
That the Collector shall not permit any vessel to sail for a it received timely notice of the sailing of the Vessel: Provided,
foreign port if the master or agent thereof refuses to receive That the Collector shall not permit any vessel to sail for a
bags of mail delivered to the same by the Bureau of Posts for foreign port if the master or agent thereof refuses to receive
transportation for a reasonable compensation, In case the bags of mail delivered to the same by the Bureau of Posts for
Director of Posts and said master or agent do not come to an transportation for a reasonable compensation, In case the
agreement concerning the amount of the compensation to be Director of Posts and said master or agent do not come to an
paid for the carriage of the mail, the matter shall be submitted agreement concerning the amount of the compensation to be
for decision to a Board of Referees composed of three paid for the carriage of the mail, the matter shall be submitted
members appointed, respectively, by the Bureau of Posts, the for decision to a Board of Referees composed of three
agency of the company to which the vessel concerned members appointed, respectively, by the Bureau of Posts, the
belongs, and the Bureau of Customs, which board shall fix a agency of the company to which the vessel concerned
reasonable rate of compensation. belongs, and the Bureau of Customs, which board shall fix a
reasonable rate of compensation.
SEC. 1319. Detention of Warlike Vessel Containing Arms SEC 1020 Detention of Warlike Vessel Containing Arms and Minor amendment to expand obligation
and Munitions. Munitions. - Collectors shall detain any vessel of commercial of collector in case of warlike vessels
registry manifestly built for warlike purposes and about to to report the same to proper
Collectors shall REPORT TO THE PROPER AUTHORITIES depart from the Philippines with a cargo consisting principally authorities.
OR detain any vessel of commercial registry manifestly built of arms and munitions of war, when the number of men
for warlike purposes and about to depart from the Philippines shipped on board or other circumstances render it probable
with a cargo consisting principally of arms and munitions of that such vessel is intended to be employed by the owner or
war, when the number of men shipped on board or other owners to cruise or commit hostilities upon the subjects,
circumstances render it probable that such vessel is intended citizens, or property of any foreign prince or state, or of any
to be employed by the owner or owners to cruise or commit colony, district, or people with whom the Philippines is at
hostilities upon the subjects, citizens, or property of any peace, until the decision of the President of the Philippines be
foreign prince or state, or of any colony, district, or people with had thereon, or until the owner or owners shall give bond or
whom the Philippines is at peace, until the decision of the security, in double the value of the vessel and cargo, that she
President of the Philippines be had thereon, or until the owner will not be so employed, if in the discretion of the Collector
or owners shall give bond or security, in double the value of such bond will prevent the violation of the provisions of this
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the vessel and cargo, that she will not be so employed, if in section.
the discretion of the Collector such bond will prevent the
violation of the provisions of this section.
SEC. 1320. Manifest of Export Cargo to be Delivered to SEC 1021 Manifest of Export Cargo to be Delivered to En toto
Chairman, Commission on Audit. Chairman, Commission on Audit. -The master shall, prior to
departure, deliver mail to the Chairman, Commission on Audit,
The master shall, prior to departure, deliver mail to the Manila, the returned copy of the manifest of export cargo.
Chairman, Commission on Audit, Manila, the returned copy of
the manifest of export cargo.
SEC. 1321. Oath of Master of Departing Vessel. SEC 1022 Oath of Master of Departing Vessel. - The master En toto
of such departing vessel shall state under oath to the effect:
The master of such departing vessel shall state under oath to
the effect: a. That all cargo conveyed on said vessel, with
destination to the Philippines, has been duly discharged or
That all cargo conveyed on said vessel, with destination to the accounted for.
Philippines, has been duly discharged or accounted for.
b. That he has mailed or delivered to the Chairman,
That he has mailed or delivered to the Chairman, Commission Commission on Audit a true copy of the outgoing cargo
on Audit a true copy of the outgoing cargo manifest. manifest.
That he has not received and will not convey any letters or c. That he has not received and will not convey any
packets not, enclosed in properly stamped envelope sufficient letters or packets not, enclosed in properly stamped envelope
to cover postage, except those relating to the vessel, and that sufficient to cover postage, except those relating to the vessel,
he has delivered at the proper foreign port all mails placed on and that he has delivered at the proper foreign port all mails
board his vessel before her last clearance from the placed on board his vessel before her last clearance from the
Philippines. Philippines.
That if clearing without passenger, the vessel will not carry d. That if clearing without passenger, the vessel will
upon the instant voyage, from the Philippine port, any not carry upon the instant voyage, from the Philippine port, any
passenger of any class, or other person not entered upon the passenger of any class, or other person not entered upon the
ship's declaration. ship's declaration.
SEC. 1322. Extension of Time for Clearance. SEC 1023 Extension of Time for Clearance. -At the time of Minor amendment changing of no
clearance, the master of a departing vessel shall be required to effect to nullified.
At the time of clearance, the master of a departing vessel indicate the time of intended departure, and if the vessel
shall be required to indicate the time of intended departure, should remain in port forty-eight hours after the time indicated
and if the vessel should remain in port forty-eight hours after the master shall report to the Collector for an extension of time
the time indicated the master shall report to the Collector for of departure, and without such extension the original clearance
an extension of time of departure, and without such extension
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the original clearance shall be NULLIFIED. shall be of no effect.
SEC. 1323. Advance Notice of Arrival. SEC 1102 Advance Notice of Arrival. - (a) Non-scheduled Minor amendment
Arrivals. - Before an aircraft comes any area in the Philippines
(a) Non-scheduled Arrivals. - Before an aircraft comes into from any place outside thereof, a timely notice of the intended
any area in the Philippines from any place outside thereof, a flight shall be furnished to the Collector or other customs officer
timely notice of the intended flight shall be furnished to the in charge at or nearest the intended place of first landing such
Collector or other customs officer in charge at or nearest the area, and to the quarantine and immigration officers in charge
intended place of first landing such area, and to the at or nearest such place of landing. If dependable facilities for
quarantine and immigration officers in charge at or nearest giving notice are not available before departure, any radio
such place of landing. If dependable facilities for giving notice equipment of the p shall be used if this will result in the giving
are not available before departure, any radio equipment of the of adequate and timely notice during its approach, otherwise
PLACE shall be used if this will result in the giving of landing shall be made at a place where the necessary facilities
adequate and timely notice during its approach, otherwise do exist before coming into any area in Philippines. If, upon
landing shall be made at a place where the necessary landing in any area, the government officers have not arrived,
facilities do exist before coming into any area in Philippines. If, the pilot -in-command shall hold the aircraft and any baggage
upon landing in any area, the government officers have not and article thereon intact and keep the passengers and crew
arrived, the pilot-in-command shall hold the aircraft and any members in a segregated place until the inspecting officers
baggage and article thereon intact and keep the passengers arrive.
and crew members in a segregated place until the inspecting
officers arrive. (b) Scheduled Arrivals - Such advance notice will not be
required in the case of aircraft scheduled airline arriving in
(b) Scheduled Arrivals - Such advance notice will not be accordance with the regular schedule filed with the Collector
required in the case of scheduled airline arriving in for the Customs district in which the place of first landing in the
accordance with the regular schedule filed with the Collector area is situated, and also with the Quarantine and immigration
for the Customs district in which the place of first landing in officials in charge of such place.
the area is situated, and also with the Quarantine and
immigration officials in charge of such place.
SEC. 1324. Landing at International Airport of Entry. SEC 1103 Landing at International Airport of Entry. - Except in En toto
the case of emergency or forced landings, aircraft arriving in
Except in the case of emergency or forced landings, aircraft the Philippines from any foreign port or place shall make the
arriving in the Philippines from any foreign port or place shall first landing at an international airport of entry, unless
make the first landing at an international airport of entry, permission to land elsewhere than at an international airport of
unless permission to land elsewhere than at an international entry is first obtained from the Commissioner. In such cases,
airport of entry is first obtained from the Commissioner. In the owner, operator, or person in charge of the aircraft shall
such cases, the owner, operator, or person in charge of the pay the expenses incurred in inspecting the aircraft, articles,
aircraft shall pay the expenses incurred in inspecting the passengers and baggage carried thereon, and such aircraft
aircraft, articles, passengers and baggage carried thereon, shall be subject to the authority of the Collector at the airport
and such aircraft shall be subject to the authority of the while within his jurisdiction.
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Collector at the airport while within his jurisdiction. Should an emergency or forced landing be made by an aircraft
coming into the Philippines from place outside thereof, the
Should an emergency or forced landing be made by an pilot-in-command shall not allow any article, baggage,
aircraft coming into the Philippines from place outside thereof, passenger or crew member to be removed or to depart from
the pilot-in-command shall not allow any article, baggage, the landing place without permission of a customs officer,
passenger or crew member to be removed or to depart from unless such removal or departure is necessary for purposes of
the landing place without permission of a customs officer, safety, communication with customs authorities, or
unless such removal or departure is necessary for purposes preservation of life, health or property. As soon as practicable,
of safety, communication with customs authorities, or the pilot -in-command, or a member of the crew in charge, or
preservation of life, health or property. As soon as practicable, the owner of the aircraft, shall communicate with the custom
the pilot -in-command, or a member of the crew in charge, or officer at the intended place of first landing or at the nearest
the owner of the aircraft, shall communicate with the custom international airport or other customs port of entry in the area
officer at the intended place of first landing or at the nearest and make a full report of the circumstances of the flight and of
international airport or other customs port of entry in the area the emergency or forced landing.
and make a full report of the circumstances of the flight and of
the emergency or forced landing.
SEC. 1325. Report of Arrival and Entry OF AIRCRAFT. SEC1104 Report of Arrival and Entry. - The pilot -in -command Minor amendment (Health
of any aircraft arriving from a foreign port or place shall Clearance) parenthetically inserted for
The pilot -in -command of any aircraft arriving from a foreign immediately report his arrival to the Collector at the airport of a clearer meaning of pratique.
port or place shall immediately report his arrival to the entry or to the customs officer detailed to meet the aircraft at
Collector at the airport of entry or to the customs officer the place of first landing. Such aircraft upon arrival shall be
detailed to meet the aircraft at the place of first landing. Such boarded by quarantine officer and after pratique is granted
aircraft upon arrival shall be boarded by quarantine officer and shall be boarded by customs officer, and no person shall
after pratique (HEALTH CLEARANCE) is granted shall be permitted to board or leave the aircraft without the permission
boarded by customs officer, and no person shall permitted to of the customs officer in charge.
board or leave the aircraft without the permission of the
customs officer-in-charge. The pilot-in-command or any other authorized agent of the
owner or operator of the aircraft shall make the necessary
The pilot-in-command or any other authorized agent of the entry. No such aircraft shall, without previous permission
owner or operator of the aircraft shall make the necessary therefor from the collector, depart from the place of first landing
entry. No such aircraft shall, without previous permission or discharge articles, passengers or baggage.
therefor from the collector, depart from the place of first
landing or discharge articles, passengers or baggage.
SEC. 1326. Documents Required in Making Entry FOR SEC 1105 Documents Required in Making Entry. Minor amendment. Item 9, a catch-all
AIRCRAFT. phrase is added to cover ever-
a. For the purpose of making entry, there shall be changing nature of related documents
For the purpose of making entry, there shall be presented to presented to the customs boarding officer four copies of a that may be required in the future.
the customs boarding officer four copies of a general general declaration which shall contain the following data,
declaration which shall contain the following data, unless any unless any of such data is otherwise presented on a separate
195
of such data is otherwise presented on a separate official official form:
form:
1. Name of owner or operator of aircraft, registration
Name of owner or operator of aircraft, registration marks and marks and nationality of aircraft, and flight number of
nationality of aircraft, and flight number of identification; identification;
2. Points of clearance and entry, and date of arrival;

Points of clearance and entry, and date of arrival;
3. Health and customs clearance at the last airport of
Health and customs clearance at the last airport of departure; departure;
Itinerary of aircraft, including information as to airport of origin 4. Itinerary of aircraft, including information as to
and departure dates; airport of origin and departure dates;
Names and nationality of crew members; 5. Names and nationality of crew members;
Passenger manifest showing places of embarkation and 6. Passenger manifest showing places of embarkation
destination; and destination;
Cargo manifest showing information as to airway bill number, 7. Cargo manifest showing information as to airway bill
the number of packages related to each airway bill number, number, the number of packages related to each airway bill
nature of goods, destination, and gross weight, together with a number, nature of goods, destination, and gross weight,
copy of each airwaybill securely attached thereto; and together with a copy of each airwaybill securely attached
thereto; and
Store list.
8. Store list
AND SUCH OTHER DOCUMENTS AS MAYBE REQUIRED
BY CUSTOMS. b. The general declaration shall be written in English
and duly signed by the pilot-in-command or operator of the
The general declaration shall be written in English and duly aircraft, or the authorized agent. The Health Section thereon,
signed by the pilot-in-command or operator of the aircraft, or however, shall be signed only by the pilot-in-command or when
the authorized agent. The Health Section thereon, however, necessary, by a crew member when the general declaration
shall be signed only by the pilot-in-command or when itself has been signed by a non -crew member. If the aircraft
necessary, by a crew member when the general declaration does not carry cargo or passengers such facts must be shown
itself has been signed by a non-crew member. If the aircraft in the manifests.
does not carry cargo or passengers such facts must be shown
in the manifests. c. Cargo manifest shall in no case be changed or
altered after entry of the aircraft, except by means of an
Cargo manifest shall in no case be changed or altered after amendment by the pilot -in -command or authorized agent
entry of the aircraft, except by means of an amendment by thereof, under oath, and attached to the original manifest:
the pilot -in -command or authorized agent thereof, under Provided, however, That after the invoice and/or entry covering
oath, and attached to the original manifest: Provided,
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however, That after the invoice and/or entry covering an an importation have been received and recorded in the office
importation have been received and recorded in the office of of the appraiser, no amendment shall be allowed except when
the appraiser, no amendment shall be allowed except when it it is obvious that a clerical error or any other discrepancy has
is obvious that a clerical error or any other discrepancy has been committed without any fraudulent intent in the preparation
been committed without any fraudulent intent in the of the manifest, discovery of which could not have been made
preparation of the manifest, discovery of which could not have until after examination of the importation has been completed.
been made until after examination of the importation has been
completed.
SEC. 1327. Manifest for Commission on Audit. SEC 1106 Manifest for Commission on Audit. - The pilot-in- En toto
command or authorized agent of an aircraft, upon arrival from a
The pilot-in-command or authorized agent of an aircraft, upon foreign port, shall deliver or mail to the Chairman, Commission
arrival from a foreign port, shall deliver or mail to the on Audit, a copy of the general declaration properly indorsed
Chairman, Commission on Audit, a copy of the general by the customs Boarding Officer.
declaration properly indorsed by the customs Boarding
Officer.
SEC. 1328. Clearance of Aircraft for Foreign Port. SEC 1111 Clearance of Aircraft for Foreign Port. En toto
Any aircraft bound to a foreign port shall, before departure, a. Any aircraft bound to a foreign port shall, before
clear at an airport of entry or at the same place where such departure, clear at an airport of entry or at the same place
aircraft has been authorized to make its landing by the where such aircraft has been authorized to make its landing by
Commissioner. the Commissioner
Before clearance shall be granted to an aircraft bound to a b. Before clearance shall be granted to an aircraft
foreign port, there shall be presented to the Collector or to bound to a foreign port, there shall be presented to the
the customs officer detailed at the place of departure four Collector or to the customs officer detailed at the place of
copies of a general declaration signed by the pilot-in- departure four copies of a general declaration signed by the
command or authorized agent of an aircraft which shall pilot-in-command or authorized agent of an aircraft which shall
contain the following data: contain the following data:
Name of owner or operator of aircraft, registration marks and 1. Name of owner or operator of aircraft, registration
nationality of aircraft, and flight number of identification; marks and nationality of aircraft, and flight number of
identification;
Point of clearance, data thereof and destination',
2. Point of clearance, data thereof and destination,
Health and customs clearance;
3. Health and customs clearance;
Itinerary of aircraft, including information as to airport of
destination and departure date; 4. Itinerary of aircraft, including information as to
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Names and nationality of crew members; airport of destination and departure date;
Passenger manifest showing place of destination; 5. Names and nationality of crew members;
Export cargo manifest showing information as to airwaybill 6. Passenger manifest showing place of destination;
number, the number of packages related to each airwaybill
number, nature of goods, destination, and gross weight, 7. Export cargo manifest showing information as to
together with a copy of each airwaybill securely attached airwaybill number, the number of packages related to each
thereto; and airwaybill number, nature of goods, destination, and gross
weight, together with a copy of each airwaybill securely
Store list showing stores laden. attached thereto; and
8. Store list showing stores laden.
SEC. 1329. Oath of Person in Charge of Departing SEC 1112 Oath of Person in Charge of Departing Aircraft. - En toto
Aircraft. The pilot -in -command i agent of such departing aircraft shall
also state under oath to the effect that:
The pilot-in-command or authorized agent of such departing
aircraft shall also state under oath to the effect that: a. All cargo conveyed on said aircraft destined to the
Philippines has been duly discharged and accounted for.
All cargo conveyed on said aircraft destined to the Philippines
has been duly discharged and accounted for. b. He has mailed or delivered to the Commission on
Audit a true copy of the outward general declaration.
He has not received nor will convey any letter or packet not
enclosed in properly stamped envelope sufficient to cover c. He has not received nor will convey any letter or
postage, except those relating to the cargo of the aircraft, and packet not enclosed in properly stamped envelope sufficient to
that he has delivered to the proper foreign port all mails cover postage, except those relating to the cargo of the
placed on board said aircraft before clearance from the aircraft, and that he has delivered to the proper foreign port all
Philippines. mails placed on board said aircraft before clearance from the
Philippines.
If clearing without passengers, the aircraft will not carry upon
departure any passenger. d. If clearing without passengers, the aircraft will not
carry upon departure any passenger.
A record shall be made and kept open to public inspection in
every customhouse at an airport of entry of the dates of arrival A record shall be made and kept open to public inspection in
and entry of all aircrafts. every customhouse at an airport the dates of arrival and entry
of all aircrafts.
CHAPTER 3. OTHER THIRD PARTIES
SEC. 1330. SUPERVISION AND REGULATION OF THIRD RKC GA Standards 8.2, 8.3, 8.4, 8.6 and New provision. This will help customs
regulate and at the same time
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PARTIES. 8.7 enhance third party transactions with
BoC for better control and
THIRD PARTIES TRANSACTING WITH CUSTOMS IN 8.2. Standard coordination.
BEHALF OF IMPORTERS AND CONSIGNEES SHALL BE
TREATED EQUALLY AS IF THEY ARE THEMSELVES THE National legislation shall set out the
IMPORTERS OR CONSIGNEES. conditions under which a person may act
for and on behalf of another person in
THIRD PARTIES TRANSACTING WITH CUSTOMS SHALL dealing with the Customs and shall lay
BE LIABLE FOR ACTS COMMITTED IN VIOLATION OF down the liability of third parties to the
THIS ACT AND RELATED LAWS. Customs for duties and taxes and for any
irregularities.
CUSTOMS, THE SECRETARY OF FINANCE SHALL ISSUE 8.3. Standard
RULES AND REGULATIONS FOR THE BUREAU OF
CUSTOMS TO SUPERVISE AND REGULATE ALL THIRD The Customs transactions where the
PARTIES DEALING DIRECTY WITH THE BUREAU FOR person concerned elects to do business
AND IN BEHALF OF ANOTHER PERSON IN RELATION TO on his own account shall not be treated
THE IMPORTATION , EXPORTATION, MOVEMENT, less favourably or be subject to more
STORAGE AND CLEARANCE OF GOODS. THIRD stringent requirements than those
PARTIES AS PROVIDED IN THIS SECTION MAY REFER Customs transactions which are handled
TO, AMONG OTHERS, LOGISTICS PROVIDERS, for the person concerned by a third party.
IMPORTERS, EXPORTERS, CUSTOMS BROKERS,
CARRIERS, AIRLINES, SHIPPING LINES, SHIPPING 8.4. Standard
AGENTS, FORWARDERS, CONSOLIDATORS, PORT AND
A person designated as a third party shall
TERMINAL OPERATORS, AND WAREHOUSE OPERATOR.
have the same rights as the person who
THE RULES AND REGULATIONS SHALL PROVIDE FOR
designated him in those matters related to
SPECIFIC CONDITIONS WHEN THIRD PARTIES MAY OR
transacting business with the Customs.
MAY NOT DIRECTLY TRANSACT WITH CUSTOMS AND
SHALL PROVIDE A WRITTEN NOTICE IN CASE SUCH 8.6. Standard
THIRD PARTIES ARE, FOR VALID REASONS, BARRED
FROM TRANSACTING WITH CUSTOMS. The Customs shall specify the
circumstances under which they are not
prepared to transact business with a third
party.
8.7. Standard
The Customs shall give written notification

to the third party of a decision not to
transact business.
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CHAPTER 4. AUTHORIZED ECONOMIC OPERATORS WCO SAFE FRAMEWORK New provision to lay down the
(AEO) AND AUTHORIZED PERSONS statutory predicate for an Authorized
Economic Operator (AEO) program in
line with the SAFE Framework which
complements the RKC objective of
facilitating international trade through
adoption of policies geared towards
simplifying and harmonizing customs
procedures.
SEC. 1331. AEO AND OTHER AUTHORIZED PERSONS. WCO SAFE Framework New provision

CUSTOMS, THE SECRETARY OF FINANCE SHALL ISSUE
THE NECESSARY RULES:
TO SUPERVISE AND REGULATE AUTHORIZED

ECONOMIC OPERTORS (AEO), CONSISTENT WITH
INTERNATIONAL BEST PRACTICES, THE WCO
FRAMEWORK OF STANDARDS TO SECURE AND
FACILITATE GLOBAL TRADE, AND OTHER
INTERNATIONAL CONVENTIONS AND AGREEMENTS;
AND
TO DEVELOP TRADE FACILITATION PROGRAMS FOR

AEOs AND OTHER AUTHORIZED PERSONS
CONSISTENT WITH INTERNATIONAL BEST PRACTICES
AND INTERNATIONAL CONVENTIONS AND
AGREEMENTS.
TITLE 14. CUSTOMS FEES AND CHARGES
SEC. 1400. Customs DUES, Fees and Charges. SEC 3301 Customs Fees and Charges. - For services Provision amended by simply
rendered and documents issued by the Bureau of Customs, authorizing the Secretary of Finance to
For services rendered and documents issued by the Bureau the following fees shall be charged and collected, by affixing fix nature and amount of fees,
of Customs, fees, DUES AND CHARGES shall be collected documentary customs stamps in the correct amount upon the including the requirement for
AS MAY BE PROVIDED UNDER EXISTING REGULATIONS document or any other paper which is the subject of the charge documentary customs stamps. His is
ISSUED BY THE SECRETARY OF FINANCE, UPON THE and by the cancellation of such stamps in the manner intended to provide flexibility in the
RECOMMENDATION OF THE COMMISSIONER. prescribed by the Commissioner, and no such document or fixing and updating of customs fees,
any other paper shall be issued or granted by any customs dues and charges.
official until the correct amount of stamps shall have been
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affixed and cancelled: Provided, however, That fees of twenty
pesos or over may be paid in cash.
For each amendment allowed to a foreign inward manifest

.....P30.00
For each permit to others than passengers to take cigars

aboard ship, per thousand cigars ..... 30.00
For each permit (to other than passengers) to take cigarettes

aboard ship, per thousand cigarettes ..... 30.00
For each original import or export entry exceeding fifty pesos in

value ..... 30.00
For each entry for immediate transportation in bond ..... 30.00
For each original internal revenue entry ..... 30.00
For each original withdrawal entry from any bonded warehouse

..... 30.00
For each bond accepted or renewed ..... 30.00
For each approval of application in respect to transaction

covered by general bond ..... 30.00
For every formal protest filed before the Collector of Customs

..... 50.00
For each appeal in protest and seizure cases ..... 50.00
For each certificate not herein above specified, exclusive of

such are made in the course of routine administration in the
bureau which do not subserve any special pecuniary interest of
the party concerned therein ..... 30.00
SEC. 1401. Effect of Failure to Affix Stamp upon SEC 3303 Effect of Failure to Affix Stamp upon Document. - En toto
Document. No document or any other paper upon which no documentary
customs stamps have been affixed and cancelled shall be
No document or any other paper upon which no documentary received or recognized by any customs officials.
customs stamps have been affixed and cancelled shall be
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received or recognized by any customs officials.
SEC. 1402. General Provision on the Authority to Increase SEC 1402 General Provision on the Authority to Increase or Major amendment authorizing the
or Decrease Fees and Charges. Decrease Fees and Charges. - The rates of the fees and Secretary of Finance to increase or
charges in all ports in the Philippines shall be those now decrease fees dues and other
The Secretary of Finance may, upon recommendation of the provided for under section thirty-three hundred and one of this charges. This is to complement the
Commissioner of Customs, increase or decrease the fees, Code: Provided, However, That the Secretary of Finance may, preceding provision.
dues and charges collectible by the Bureau of Customs to upon recommendation of the Commissioner of Customs,
protect the interest of the Government. increase or decrease the said fees, dues and charges
collectible by the Bureau of Customs to protect the interest of
the Government.
TITLE 15. OFFENCES AND PENALTIES
SEC. 1500. Failure to Pay Liquidated Charges. SEC 2501 Failure to Pay Liquidated Charges. - For failure to Provision amended replacing public
pay the amount of liquidated duties taxes and other charges of notice in customhouse with due
For failure to pay the amount of liquidated duties AND taxes a Iiquidation within ten (10) working days after the notice of notice for a more effective notification.
and other charges of a Iiquidation within ten (10) working days liquidation shall have been publicly posted in the customhouse,
after DUE notice of liquidation, surcharge of ten percent surcharge of ten percent (10%) of the total amount or balance
(10%) of the total amount or balance found upon liquidation found upon liquidation shall be added thereto and collected
shall be added thereto and collected therewith, which therewith, which surcharge shall be increased to twenty-five
surcharge shall be increased to twenty-five percent (25%) if percent (25%) if the delinquency lasts for more than one year.
the delinquency lasts for more than one year.
SEC. 1501. Unauthorized Withdrawal of Imported Articles SEC 2501-A Unauthorized Withdrawal of Imported Articles SEC. 2502. - Repealed by P.D. 1679. Provision amended to add Duties to
From Bonded Warehouse. From Bonded Warehouse. - Upon any unauthorized withdrawal March 6. 1980 Taxes to make it clearer that the
of imported articles stored in a custom bonded warehouse, a basis of the surcharge is both and not
Upon any unauthorized withdrawal of imported articles stored surcharge of fifty percent (50%) of duties, taxes, custom fees just taxes.
in a custom bonded warehouse, a surcharge of fifty percent and charges, found to be due and unpaid, shall be added
(50%) of duties, taxes, custom fees and charges, found to be thereto and collected. The surcharge shall be increased by
due and unpaid, shall be added thereto and collected. The twenty-five percent (25%) annually of the unpaid taxes if the
surcharge shall be increased by twenty-five percent (25%) delinquency lasts for more than one year.
annually of the unpaid DUTIES AND taxes if the delinquency
lasts for more than one year.
SEC.1502. MISDECLARATION, MISCLASSIFICATION, SEC 2503 Undervaluation, Misclassification and Major amendment. The concept,
UNDERVALUATION in GOODS DECLARATION. Misdeclaration in Entry. - When the dutiable value of the hence the definition, of undervaluation
imported articles shall be so declared and entered that the has been revised to make it consistent
MISDECLARATION AS TO QUANTITY, OR WEIGHT, OR duties, based on the declaration of the importer on the face of with the new valuation system which
MEASUREMENT, OR THE DESCRIPTION OF THE the entry would be less by ten percent (10%) than importers does not allow reference value as
ARTICLE RESULTING IN MISCLASSIFICATION OCCURS description on the face of the entry would less by ten percent primary basis for customs valuation.
202
WHEN THERE IS A DISCREPANCY OF TEN PERCENT (10%) than should be legally collected based on the tariff The current definition of
(10%) OR MORE BUT NOT EXCEEDING THIRTY PERCENT classification, of when the dutiable weight, measurement or undervaluation is premised on the
(30%) IN DUTY BETWEEN WHAT IS FOUND UPON quantity of imported articles is found upon examination to existence of a reference price (in the
EXAMINATION AND WHAT IS DECLARED. IN CASE OF exceed by ten percent (10%) or more than the entered weight, form of published-Revision Orders--or
SUCH MISDECLARATION, A SURCHARGE EQUIVALENT measurement or quantity, a surcharge shall be collected from establishedpreviously applied
TO ONE HUNDRED PERCENT (100%) OF THE the importer in an amount of not less than the difference customs value; at one time, the GS
DIFFERENCE BETWEEN THE FULL DUTY AS FOUND AND between the full duty and the estimated duty based upon the CRF reported valueall these were
THAT AS DECLARED SHALL BE IMPOSED. NO declaration of the importer, nor more than twice of such legally recognized as the customs
SURCHARGE SHALL BE IMPOSED WHEN THE difference: Provided, That an undervaluation, misdeclaration in value) against which a value
DISCREPANCY IN DUTY IS LESS THAN TEN PERCENT weight, measurement or quantity of more than thirty percent declaration can be compared and
(10%). (30%) between the value, weight, measurement or quantity when a discrepancy of 30% or more is
declared in the entry, and the actual value, weight, quantity, or found there is a prima facie
MISCLASSIFICATION OCCURS WHEN THE AN measurement shall constitute a prima facie evidence of fraud presumption of fraud subjecting the
INCORRECT TARIFF HEADING IS USED RESULTING IN A penalized under Section 2530 of this Code: Provide, further, goods to seizure and forfeiture. In
DISCREPANCY IN DUTY BY TEN PERCENT (10%) OR That any misdeclared or undeclared imported article/items contrast, under the Transaction value
MORE BUT NOT EXCEEDING THIRTY PERCENT (30%). IN found upon examination shall ipso facto be forfeited in favor of regime, there is no reference price
CASE OF MISCLASSIFICATION, A SURCHARGE the Government to be disposed of pursuant to the provisions of (customs value) to speak of other than
EQUIVALENT TO ONE HUNDRED PERCENT (100%) OF this Code. (initially at least) the declared
THE DIFFERENCE BETWEEN THE FULL DUTY AS FOUND transaction value which is the price
AND THAT AS DECLARED SHALL BE IMPOSED. NO When the undervaluation, misdescription, misclassification or paid or payable for the goods plus the
SURCHARGE SHALL BE IMPOSED WHEN THE misdeclaration in the import entry is intentional, the importer legal adjustments. This means that
DISCREPANCY IN DUTY IS LESS THAN TEN PERCENT shall be subject to penal provision under Section 3602 of this customs value is presumptively what
(10%); OR WHEN THE THE DECLARED TARIFF HEADING Code (R.A. 7651, June 04, 1993). the importer declares under Method 1.
IS REJECTED IN A FORMAL CUSTOMS DISPUTE This is the law under Section 201 as
SETTLEMENT PROCESS INVOLVING DIFFICULT OR amended by RA 9135. So if customs
HIGHLY TECHNICAL QUESTION OF TARIFF value is the declared transaction value
CLASSIFICATION; OR WHEN THE TARIFF (subject to challenge, of course) then
CLASSIFICATION DECLARATION RELIED ON AN there is no basis to make a
OFFICIAL GOVERNMENT RULING OR INFORMATION. discrepancy computation at that point
except when it can be established that
A DISCREPANCY IN MISDECLARATION OR IN (a) the invoice presented is fake (in
MISCLASSIFICATION MENTIONED ABOVE OF MORE which case this becomes a fraudulent
THAN THIRTY PERCENT (30%) SHALL CONSTITUTE A importation subject to seizure o
PRIMA FACIE EVIDENCE OF FRAUD PENALIZED UNDER account of submission of fake
SECTION 1200 OF THIS ACT; PROVIDED, THAT ANY document but not on account of any
UNDECLARED ARTICLES/ITEMS SHALL IPSO FACTO BE computed discrepancy); (b) the the
FORFEITED IN FAVOR OF THE GOVERNMENT TO BE price paid or payable or the adjustment
DISPOSED OF PURSUANT TO THE PROVISIONS OF THIS declared is not complete and if the
ACT. nondisclosure is intentional goods can
be subject to seizure on account of
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WHEN THE MISDECLARATION OR MISCLASSIFICATION misrepresentation but not on account
IS INTENTIONAL OR FRAUDULENT, THE ARTICLES of any computed discrepancy; or (c)
SHALL BE SUBJECT TO SEIZURE AND FORFEITURE the wrong method (e.g. Method 1
PROCEEDINGS REGARDLESS OF THE AMOUNT OF THE instead of method 2 was applied by
DISCREPANCY WITHOUT PREJUDICE TO THE the declarant as in the case of
APPLICATION OF PENAL PROVISIONS UNDER SECTION consignmentno sale for export which
1526 OF THIS ACT AGAINST THE IMPORTER AND/OR is an essential condition for the use of
OTHER PERSON OR PERSONS WHO WILFULLY Method 1-again if the misuse was
PARTICIPATED IN THE FRAUDULENT ACT. deliberate, shipment can be subject to
seizure on account of fraud but not on
WHEN THE DISCREPANCY MENTIONED IN THE account of a computed percentage
FOREGOING IS ESTABLISHED DURING POST ENTRY discrepancy.
AUDIT, THE PERTINENT PROVISIONS OF TITLE 11 OF
THIS ACT ON POST ENTRY AUDIT SHALL GOVERN.
THERE IS UNDERVALUATION WHEN (A) THE CUSTOMS To maintain the current definition of
VALUE DECLARATION IN THE IMPORT ENTRY FAILS TO undervaluation would result in legally
DISCLOSE IN FULL THE PRICE ACTUALLY PAID OR absurd situation. Example. Declared
PAYABLE AND/OR ANY DUTIABLE ADJUSTMENT TO THE value is USD100 per unit CIF. Buyer
PRICE ACTUALLY PAID OR PAYABLE FOR THE and seller are related which is
IMPORTED ARTICLES; OR, (B) WHEN IT USES AN disclosed. Customs challenged value
INCORRECT VALUATION METHOD OR OTHERWISE HAS before dispute settlement unit (VCRC).
NOT PROPERLY OBSERVED THE VALUATION RULES Customs established that the
UNDER THE TRANSACTION VALUE SYSTEM, RESULTING relationship influenced the price paid
IN A DISCREPANCY IN DUTY BETWEEN THE CORRECT or payable. Declared value is rejected
TRANSACTION VALUE UNDER THE APPLICABLE and alternate method adopted. Under
METHOD AND THAT AS DECLARED. the alternate method customs value
was ruled as USD140 per unit which is
WHEN THE UNDERVALUATION IS ESTABLISHED more than 30% discrepancy. Will
WITHOUT NEED TO GO THROUGH THE FORMAL customs now subject goods to
DISPUTE SETTLEMENT PROCESS REQUIRED UNDER seizure? Under RA9135 which
THE TRANSACTION VALUE SYSTEM PROVIDED FOR IN adopted the WTO TV system, the
THIS ACT, A SURCHARGE SHALL BE IMPOSED IN AN answer is no because this is a simple
AMOUNT EQUAL TO ONE HUNDRED PERCENT(100%) OF case of customs valuation dispute. The
THE DIFFERENCE BETWEEN THE FULL DUTY AS amount of discrepancy between the
ESTABLISHED AND THAT AS DECLARED. NO decided value and the declared value
SURCHARGE SHALL BE IMPOSED WHEN THE cannot give rise to the application of
DISCREPANCY IN DUTY IS LESS HAN TEN PERCENT Section 2503 because such penalty is
(10%); OR THE DECLARED VALUE IS REJECTED AS A not only not provided in the TV system
RESULT OF AN OFFICIAL RULING OR DECISION UNDER but is inconsistent with the spirit of TV
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THE CUSTOMS DISPUTE SETTLEMENT PROCESS valuation principle that does not
INVOLVING DIFFICULT OR HIGHLY TECHNICAL penalize the importer because he
QUESTION RELATING TO THE APPLICATION OF loses in a dispute settlement. If there
CUSTOMS VALUATION RULES; OR THE VALUE was a finding of fraud, as for instance
DECLARATION RELIED UPON AN OFFICIAL the fact of relationship was
GOVERNMENT RULING OR INFORMATION. intentionally not disclosed, then that is
altogether a different case, an
WHEN THE UNDERVALUATION IS ATTENDED WITH enforcement and not a valuation one.
FRAUD, SUCH AS WHEN A FALSE INVOICE OR FAKE OR Again the goods may be seized on
ALTERED DOCUMENT SUPPORTING THE DECLARED account of wilful misrepresentation but
CUSTOMS VALUE IS SUBMITTED, OR OTHERWISE A not because of a percentage
FALSE STATEMENT OR INFORMATION IS KNOWINGLY computation discrepancy which has no
MADE, AND IS UNCOVERED AT THE TIME CUSTOMS place in the TV regime.
STILL HAS PHYSICAL CUSTODY OF OR CONTROL OVER
THE IMPORTED ARTICLES, THE SAME SHALL BE
SUBJECT TO SEIZURE AND FORFEITURE
PROCEEDINGS, WITHOUT PREJUDICE TO THE Another absurd outcome is when the
APPLICATION OF THE PENAL PROVISIONS UNDER 30% or more discrepancy was
SECTION 1526 OF THIS ACT AGAINST THE IMPORTER uncovered during customs audit where
AND/OR OTHER PERSON OR PERSONS WHO WILFULLY goods have long been released from
PARTICIPATED IN THE FRAUDULENT ACT. customs. How would customs now
implement Section 2503 when physical
WHEN THE UNDERVALUATION, FRAUDULENT OR NOT, or juridical control over the goods is
IS ESTABLISHED DURING POST ENTRY AUDIT, THE essential to the issuance of a Warrant
PERTINENT PROVISIONS OF TITLE 11 OF THIS ACT ON of Seizure and Detention? If customs
POST ENTRY AUDIT SHALL GOVERN. applies 2503 on erring (non-fraudulent)
shipments at the time of entry
lodgement but does not as it cannot
apply it to shipments long gone during
customs audit, this may well be a case
of selective enforcement (double
standard)
The proposed provision simply takes

away the percentage discrepancy as
basis for presumptive fraud that
warrants seizure in defining
undervaluation and establishing the
appropriate penalty when the declared
205
value fro reason other than fraud is
rejected by customs.
With respect to misdescription is

misdeclaration as to quantity, etc, the
current Section 2305 is substantially
retained except misclassification is
now added in the presumptive fraud
and that the surcharge regime is
simplified by adopting a single penalty
tier and providing for certain due
exemption from the imposition of
surcharge
SEC. 1503. Failure or Refusal of Party to Give Evidence SEC 2504 Failure or Refusal of Party to Give Evidence or Major amendment to provide customs
or Submit Documents for Examination. Submit Documents for Examination. When the owner, importer PEA more teeth in enforcing the law.
or consignee of any imported articles, or the agent of either,
When the owner, importer or consignee of any imported fails or refuses, upon lawful demand in writing by any customs
articles, or the agent of either, fails or refuses, upon lawful official to appear, make oath or submit himself to examination
demand in writing by any customs official to appear, make or to answer any material question or refuses to produce
oath or submit himself to examination or to answer any records, accounts or invoices in his possession pertaining to
material question or refuses to produce records, accounts or the value, classification or disposition of the article in question
invoices in his possession pertaining to the value, and deemed material in appraising the same, the Collector
classification or disposition of the article in question and shall assess a surcharge of twenty percentum ad valorem on
deemed material in appraising the same, the Collector shall the article which is the subject of the importation.
assess a surcharge of twenty percentum ad valorem on the
article which is the subject of the importation.
SEC. 1504. Failure to Declare Baggage. SEC 2505 Failure to Declare Baggage. - Whenever any Amended replacing treble with
dutiable article is found in the baggage of any person arriving thrice.
Whenever any dutiable article is found in the baggage of any within in the Philippines which is not included in the baggage
person arriving within in the Philippines which is not included declaration, such article shall be seized and the person in
in the baggage declaration, such article shall be seized and whose baggage it is found may obtain release of such article, if
the person in whose baggage it is found may obtain release of not imported contrary to any law upon payment of treble and
such article, if not imported contrary to any law upon payment appraised value of such article plus all duties, taxes and other
of THRICE THE appraised value of such article plus all charges due thereon unless it shall be established to the
duties, taxes and other charges due thereon unless it shall be satisfaction of the Collector that the failure to mention or
established to the satisfaction of the Collector that the failure declare such dutiable article was without fraud.
206
to mention or declare such dutiable article was without fraud. Nothing in this section shall preclude the bringing of criminal
action against the offender.
Nothing in this section shall preclude the bringing of criminal
action against the offender.
SEC. 1505. Breach of Bond. SEC 2506 Breach of Bond. - Upon breach of bond required to En toto
be filed under the tariff and customs laws, the Collector subject
Upon breach of bond required to be filed under the tariff and to the approval of ft Commissioner may accept in satisfaction
customs laws, the Collector subject to the approval of the thereof a smaller sum than that mentioned in the penalty
Commissioner may accept in satisfaction thereof a smaller clause of the bond, but in no case less than the amount
sum than that mentioned in the penalty clause of the bond, necessary to indemnify the Government for the damage
but in no case less than the amount necessary to indemnify occasioned by such breach.
the Government for the damage occasioned by such breach.
SEC. 1506. Vessel, SEACRAFT or Aircraft Departing SEC 2513 Vessel or Aircraft Departing Before Entry Made. - Amended to include seacraft and to
Before Entry Made. Any vessel or aircraft arriving within the limits of a collection increase amount of fine to realistic
district from a foreign port which departs before the entry is level.
Any vessel, SEACRAFT or aircraft arriving within the limits of made, without being compelled to do so by stress of weather,
a collection district from a foreign port which departs before pursuit or duress of enemies, or other necessity, shall be fined
the entry is made, without being compelled to do so by stress in the sum not exceeding five thousand pesos.
of weather, pursuit or duress of enemies, or other necessity,
shall be fined in the sum not NOT LESS THAN THIRTY
THOUSAND PESOS(P30,000) BUT NOT MORE THAN ONE
HUNDRED THOUSAND PESOS (P100,000).
SEC. 1507. Obstruction to Boarding Official. SEC 2514 Obstruction to Boarding Official. - If the master or Amended as to amount of fine
pilot in command or any member of the complement of any
If the master or pilot-in-command or any member of the vessel or aircraft arriving at the Philippine port obstructs or
complement of any vessel or aircraft arriving at the Philippine hinders any official from lawfully going on board such vessel or
port obstructs or hinders any official from lawfully going on aircraft for the purpose of enforcing the customs and tariff laws,
board such vessel or aircraft for the purpose of enforcing the or international causes any such official to be so obstructed or
customs and tariff laws, or intentionally causes any such hindered, the vessel or aircraft shall be fined in a sum not
official to be so obstructed or hindered, the vessel or aircraft exceeding five thousand pesos.
shall be fined in a sum not LESS THAN THIRTY THOUSAND
PESOS (P30,0000 BUT NOT MORE THAN ONE HUNDRED
THOUSAND PESOS(P100,000).
SEC. 1508. Unlawful Boarding or Leaving of Vessel or SEC2515 Unlawful Boarding or Leaving of Vessel or Aircraft. - Same as above
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
If upon arrival at the Philippine port, any master of a vessel or permits any person to board or leave the vessel or aircraft
207
pilot-in-command of an aircraft engaged in a foreign trade without the permission of the customs official in charge, such
permits any person to board or leave the vessel or aircraft vessel or aircraft shall be fined In a sum not exceeding five
without the permission of the customs official in charge, such thousand pesos.
vessel or aircraft shall be fined in a sum not LESS THAN
THIRTY THOUSAND PESOS(P30,000) BUT NOT MORE
THAN ONE HUNDRED THOUSAND PESOS (P100,000).
SEC. 1509. Failure to Deliver or Receive Mail. SEC2516 Failure to Deliver or Receive Mail. - if the master of Same as above
a vessel or the pilot in command of an aircraft arriving at the
If the master of a vessel or the pilot-in-command of an aircraft Philippine port fails or refuses to deliver to the postmaster of
arriving at the Philippine port fails or refuses to deliver to the the nearest post office, as required by law or contract, all mail
postmaster of the nearest post office, as required by law or matters on board such vessel or aircraft and destined for the
contract, all mail matters on board such vessel or aircraft and particular port, the vessel or aircraft shall be fined in a sum not
destined for the particular port, the vessel or aircraft shall be exceeding one thousand pesos.
fined in a sum not exceeding one thousand pesos.
When any vessel or aircraft which is required by law or contract
When any vessel or aircraft which is required by law or to carry mail matter departs from a port or place where mail
contract to carry mail matter departs from a port or place should be received, without giving the postmaster or other
where mail should be received, without giving the postmaster postal official a reasonable opportunity to deliver to the vessel
or other postal official a reasonable opportunity to deliver to or aircraft or its proper officer or agent, any mail matter
the vessel or aircraft or its proper officer or agent, any mail addressed to or destined for the port or place to which the
matter addressed to or destined for the port or place to which vessel or aircraft is bound, such vessel or aircraft shall be fined
the vessel or aircraft is bound, such vessel or aircraft shall be in a sum not exceeding one thousand pesos.
fined in a sum not LESS THAN THIRTY THOUSAND PESOS
(P30,000) BUT NOT MORE THAT ONE HUNDRED
THOUSAND PESOS (P100,000).
SEC. 1510. Unlading of Cargo Before Arrival at Port of SEC 2517 Unlading of Cargo Before Arrival at Port of Same as above
Destination. Destination. - If, upon the arrival within the limits of any
collection district of the Philippines of any vessel or aircraft
If, upon the arrival within the limits of any collection district of engaged in foreign trade, the master or pilot in command
the Philippines of any vessel or aircraft engaged in foreign thereof permits any part of the cargo to be unladen before her
trade, the master or pilot-in-command thereof permits any part arrival at her port of destination, and without authority from a
of the cargo to be unladen before her arrival at her port of proper customs official, such vessel or aircraft shall be fined a
destination, and without authority from a proper customs sum not less than thirty thousand pesos (P30,000.00) but not
official, such vessel or aircraft shall be fined a sum not less exceeding one hundred thousand pesos (P100,000.00),
than thirty thousand pesos (P30,000.00) but not exceeding provided that no fine shall accude, upon satisfactory proof to
one hundred thousand pesos (P100,000.00), provided that no the proper collector that the unlading was rendered necessary
fine shall accrue, upon satisfactory proof to the proper by stress of weather, accident or other necessity.
collector that the unlading was rendered necessary by stress
208
of weather, accident or other necessity.
SEC. 1511. Unlading of Cargo at Improper Time or Place SEC 2518 Unlading of Cargo at Improper Time or Place After Same as above
After Arrival. Arrival. - Any vessel or aircraft, which after arrival at her port of
destination in the Philippines, discharges cargo at any time or
Any vessel or aircraft, which after arrival at her port of place other than that designated by the Collector shall be fined
destination in the Philippines, discharges cargo at any time or in a sum not less than thirty thousand pesos (P30,000.00) and
place other than that designated by the Collector shall be not exceeding one hundred thousand pesos (P100,000.00),
fined in a sum not less than thirty thousand pesos provided that no fine shall accrue upon satisfactory proof to the
(P30,000.00) and not exceeding one hundred thousand pesos proper collector that the unlading was rendered necessary by
(P100,000.00), provided that no fine shall accrue upon stress of weather, accident or other necessity.
satisfactory proof to the proper collector that the unlading was
rendered necessary by stress of weather, accident or other
necessity.
SEC. 1512. Failure to Exhibit or Deposit Documents. SEC 2519 Failure to Exhibit or Deposit Documents. - When Same as above
the master of a vessel or pilot in command of an aircraft
When the master of a vessel or pilot-in-command of an engaged in foreign trade fails to exhibit to the Collector at the
aircraft engaged in foreign trade fails to exhibit to the Collector time of entry of his vessel or aircraft the register or other paper
at the time of entry of his vessel or aircraft the register or other in lieu thereof, together with the clearance and other papers
paper in lieu thereof, together with the clearance and other granted by the customs officials to his vessel or aircraft at the
papers granted by the customs officials to his vessel or last foreign port of departure, or fails to exhibit any certificate or
aircraft at the last foreign port of departure, or fails to exhibit other documents required to be then exhibited, such vessel or
any certificate or other documents required to be then aircraft shall be fined in a sum not exceeding five thousand
exhibited, such vessel or aircraft shall be fined in a sum not pesos.
LESS THAN THIRTY THOUSAND PESOS (P30,000) BUT
NOT MORE THAN ONE HUNDRED THOUSAND PESOS Such vessel shall be liable for the payment of the aforesaid
(P100,000). fine if the master, within forty eight hours, after arrival, shall fail
to deliver to the proper consular officer of his nation such
Such vessel shall be liable for the payment of the aforesaid document as are required by law to be deposited with him, or,
fine if the master, within forty eight hours, after arrival, shall if after having made such deposit, the master shall fail to
fail to deliver to the proper consular officer of his nation such produce to the Collector the required evidence that the same
document as are required by law to be deposited with him, or, has been effected.
if after having made such deposit, the master shall fail to
produce to the Collector the required evidence that the same
has been effected.
SEC. 1513. Bringing of Unmanifested Arms, Explosives or SEC 2520 Bringing of Unmanifested Arms, Explosives or War Same as above
War Equipment. Equipment. - Any vessel or aircraft arriving at a port in the
Philippines having firearms, gunpowder, cartridges, dynamite
Any vessel or aircraft arriving at a port in the Philippines or any other explosives, munitions or equipment of war
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having firearms, gunpowder, cartridges, dynamite or any other concealed on board the vessel or not contained in the manifest
explosives, munitions or equipment of war concealed on of the vessel or aircraft, shall be fined a sum of not less than
board the vessel or not contained in the manifest of the vessel thirty thousand pesos (P30,000.00) but not exceeding one
or aircraft, shall be fined a sum of not less than ONE hundred thousand pesos (P100,000.00).
HUNDRED THOUSAND PESOS (P100,000) BUT NOT
MORE THAN FIVE HUNDRED THOUSAND PESOS
(P500,000.00).
SEC. 1514. Failure to Supply ADVANCE AND Requisite SEC 2521 Failure to Supply Requisite Manifests. - If any Amount of fine is increased and
Manifests. vessel or aircraft enters or departs from port of entry without obligation of shipping/forwarding agent
submitting the proper manifests to the customs authorities, or of the carrier to submit manifest within
If any vessel or aircraft enters or departs from port of entry shall enter or depart conveying unmanifested cargo other than 24 hours before entry for cargoes with
without submitting the proper manifests to the customs as stated in the next proceeding section hereof, such vessel or transport period from country of origin
authorities, or shall enter or depart conveying unmanifested aircraft shall be fined in a sum not less than ten thousand to port of entry is at least 72 hours, is
cargo other than as stated in the next preceding section pesos (P10,000.00) but not exceeding thirty thousand pesos established
hereof, such vessel or aircraft shall be fined in a sum not less (P30,000.00).
than THIRTY thousand pesos (P30,000.00) but not
exceeding FIFTY thousand pesos (P50,000.00). The same fine shall be imposed upon any arriving or departing
vessel or aircraft If the master or pilot in command shall fail to
IF THE TRANSIT TIME FROM PORT OF ORIGIN TO PORT deliver or mail to the Commission on Audit a true copy of the
OF ENTRY IS AT LEAST SEVENTY TWO (72) HOURS,THE manifest of the incoming or outgoing cargo, as required by law.
SHIPPING/FORWARDING AGENT OF THE CARRIER OR
THE VESSEL WHO FAILS TO SUBMIT MANIFEST AT
LEAST TWENTY FOUR (24) HOURS BEFORE ENTRY
SHALL LIKEWISE BE FINED IN A SUM OF NOT LESS
THAN THIRTY THOUSAND PESOS (P30,000) BUT NO
EXCEEDING FIFTY THOUSAND PESOS (P50,000).
The same fine shall be imposed upon any arriving or

departing vessel or aircraft if the master or pilot-in-command
shall fail to deliver or mail to the Commission on Audit a true
copy of the manifest of the incoming or outgoing cargo, as
required by law.
SEC. 1515.- Disappearance of Manifested Article. SEC 2522 Disappearance of Manifested Article. When any Amount of fine increased and provision
package or article mentioned in the manifest shall not be duty reworded to make it clearer.
When any package or article mentioned in the manifest IS forthcoming upon the arrival of the vessel or aircraft shall be
NOT UNLADEN AT THE PORT OF DESTINATION upon the fined in a sum not exceeding two thousand pesos (P2,000.00)
arrival of the vessel or aircraft THE LATTERS AGENT shall unless the disappearance of the package or article in question
be fined in a sum not exceeding TWENTY thousand pesos was not due to the negligence of the master of the vessel or
(P20,000.00) unless the disappearance of the package or pilot in command of an aircraft and explained to the satisfaction
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article in question was not due to the negligence of the master of the Collector.
of the vessel or pilot-in-command of an aircraft and explained
to the satisfaction of the Collector. The vessel or aircraft shall be liable for the payment of the
same fine when a package or article listed in the manifest does
The vessel or aircraft shall be liable for the payment of the not tally materially in character Sor otherwise with the
same fine when a package or article listed in the manifest description thereof in the manifest.
does not tally materially in character or otherwise with the
description thereof in the manifest.
SEC. 1516. Discrepancy Between Actual and Declared SEC 2523 Discrepancy Between Actual and Declared Weight
Weight of Manifested Article. of Manifested Article. - If the gross weight of any article or
package described in the manifest exceeds by more than
If the gross weight of any article or package described in the twenty (20) percent the gross weight as declared in the
manifest exceeds by more than twenty (20) percent the gross manifest or bill of lading thereof, and the Collector shall be of
weight as declared in the manifest or bill of lading thereof, and the opinion that such discrepancy was due to the carelessness
the Collector shall be of the opinion that such discrepancy or incompetency of the master or pilot in command, owner or
was due to the carelessness or incompetency of the master or employee of the vessel or aircraft, a fine of not more than
pilot-in-command, owner or employee of the vessel or aircraft, fifteen (15) percentum of he value of the package or article in
a fine of not more than fifteen (15) percentum of he value of respect to which the deficiency exists, may be imposed upon
the package or article in respect to which the deficiency the importing vessel or aircraft.
exists, may be imposed upon the importing vessel or aircraft.
SEC. 1517. Delivery of Cargo Not Agreeing with the SEC 2524 Delivery of Cargo Not Agreeing with the Masters or Amended as to amount of fine
Masters or Pilots in Command Report. Pilots in Command Report. When a vessel or aircraft arriving
from a foreign port is compelled by necessity to put into
When a vessel or aircraft arriving from a foreign port is another port than the port than the port of her destination and
compelled by necessity to put into another port than the port permission is granted by the Collector for the unlading of the
of her destination and permission is granted by the Collector vessel or aircraft or the delivery of any part of her cargo and it
for the unlading of the vessel or aircraft or the delivery of any shall be found that the delivery of the cargo does not agree
part of her cargo and it shall be found that the delivery of the with the master's or the pilot's in command report, and the
cargo does not agree with the master's or the pilot's in discrepancy is not satisfactory explained, the vessel or aircraft
command report, and the discrepancy is not satisfactory shall be fined in a sum not exceeding five thousand
explained, the vessel or aircraft shall be fined in a sum not pesos(P5,000.00).
LESS THAN THIRTY THOUSAND PESOS (P30,000) BUT
NOT LESS THAN ONE HUNDRED THOUSAND PESOS
(P100,000).
SEC. 1518. Breaking of Seal Placed by Customs Officials. SEC 2525 Breaking of Seal Placed by Customs Officials. If Same as above
any seal place by a customs official upon any vessel or aircraft
If any seal place by a customs official upon any vessel or or compartment thereof, or upon any box, trunk or other
aircraft or compartment thereof, or upon any box, trunk or package of article on board any vessel or aircraft shall be fined
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other package of article on board any vessel or aircraft shall a sum not exceeding ten thousand pesos (P10,000.00) for
be fined a sum not LESS THAN FIFTY THOUSAND PESOS each seal so broken or destroyed.
(P50,000) for each seal so broken or destroyed.
SEC. 1519. Breaking of Lock or Fastening Placed by SEC 2526 Breaking of Lock or Fastening Placed by Customs Same as above
Customs Officials. Officials. - If any lock or other fastening device place by a
customs official upon any hatch door, or other means of
If any lock or other fastening device place by a customs communication with the hold of a vessel or aircraft, or other
official upon any hatch door, or other means of part thereof, for the security of the same during the night time,
communication with the hold of a vessel or aircraft, or other shall be unlawfully opened, broken or removed, or if any of the
part thereof, for the security of the same during the night time, articles contained in the hold or in the other compartments so
shall be unlawfully opened, broken or removed, or if any of the secured shall be clandestinely abstracted and landed, the
articles contained in the hold or in the other compartments so vessel or aircraft shall be fined in a sum not exceeding ten
secured shall be clandestinely abstracted and landed, the thousand (P10,000.00) pesos.
vessel or aircraft shall be fined in a sum not LESS THAN
THIRTY THOUSAND PESOS (P30,000) BUT NOT MORE
THAN ONE HUNDRED THOUSAND PESOS.
SEC. 1520. Disappearance of Trunk or Package Specially SEC 2527 Disappearance of Trunk or Package Specially same
Noted by Customs Official. Noted by Customs Official. - When any box, trunk or other
package of article is found by a customs official on any
When any box, trunk or other package of article is found by a incoming vessel or aircraft separate form the rest of the cargo
customs official on any incoming vessel or aircraft separate or in any unusual or improper place on such vessel or aircraft
from the rest of the cargo or in any unusual or improper place and the same shall be noted by him, with proper description,
on such vessel or aircraft and the same shall be noted by him, and the attention of the master or pilot in command or other
with proper description, and the attention of the master or responsible officer of the vessel or aircraft is called thereto, the
pilot-in-command or other responsible officer of the vessel or vessel or aircraft shall be fined in a sum not exceeding ten
aircraft is called thereto, the vessel or aircraft shall be fined in thousand pesos (P 10,000.00) for every such package which
a sum not LESS THAN THIRTY THOUSAND PESOS may subsequently be missing and unaccounted for upon the
(P30,000) for every such package which may subsequently be arrival of the vessel or aircraft at the port of entry.
missing and unaccounted for upon the arrival of the vessel or
aircraft at the port of entry.
SEC. 1521. False Statement of Vessel's or Aircrafts SEC 2528 False Statement of Vessel's or Aircrafts same
Destination. Destination. - When the master or pilot in command of a vessel
or aircraft laden with articles shall make a false statement as to
When the master or pilot-in-command of a vessel or aircraft the next destination of such vessel or aircraft when information
laden with articles shall make a false statement as to the next concerning the same is required of him by a customs official,
destination of such vessel or aircraft when information such vessel or aircraft shall be fined in a sum not exceeding
concerning the same is required of him by a customs official, ten thousand pesos (P10,000.00); and the circumstances that
such vessel or aircraft shall be fined in a sum not LESS THAN a vessel or aircraft after clearing for a certain port of destination
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THIRTY THOUSAND PESOS(P30,000) BUT NOT ONE goes to some other port, not being impelled to do so by
THAN ONE HUNDRED THOUSAND PESOS(P100,000); and necessity, shall be prima facie proof that the original statement
the circumstances that a vessel or aircraft after clearing for a of the vessel's or aircraft's actual destination was false.
certain port of destination goes to some other port, not being
impelled to do so by necessity, shall be prima facie proof that
the original statement of the vessel's or aircraft's actual
destination was false.
SEC. 1522. Other Offences. SEC 2529 Other Offences. - A vessel shall be fined in an same
amount hereafter fixed for:
A vessel shall be fined in an amount hereafter fixed for:
1. Anchoring at any dock, pier, wharf, quay, or
Anchoring at any dock, pier, wharf, quay, or bulkhead without bulkhead without rat guards, two hundred pesos (P200.00) for
rat guards, FIVE THOUSAND PESOS (P5,000) for coastwise coastwise vessels, and one thousand pesos (P1,000.00) for
vessels, and TEN thousand pesos (P10,000.00) for overseas overseas vessels;
vessels;
2. Dumping garbage or slops over the sides within
Dumping garbage or slops over the sides within three miles three miles from the nearest coastline, one thousand pesos
from the nearest coastline, one HUNDRED thousand pesos (P1,000.00);
(P100,000.00);
3. Dumping or causing to spread crude oil, kerosene
Dumping or causing to spread crude oil, kerosene or gasoline or gasoline in the bay or at the piers within three miles from the
in the bay or at the piers within three miles from the nearest nearest coastline, one thousand pesos (P1,000.00) for each
coastline, one HUNDRED thousand pesos (P100,000.00) for offence;
each offence;
4. Loading gasoline at a place other than that
Loading gasoline at a place other than that designated by the designated by the regulations, one thousand pesos
regulations, one HUNDRED thousand pesos (P100,000.00) (P1,000.00) for each offence;
for each offence;
5. Causing the emission and spread of harmful gas,
Causing the emission and spread of harmful gas, fumes and fumes and chemicals, five thousand pesos (P5,000.00) for
chemicals, TWO thousand THOUSAND pesos (P200,000.00) each offence.
for each offence.
SEC. 1523. Property Subject to Forfeiture Under THIS SEC 2530 Property Subject to Forfeiture Under Tariff and En toto
ACT. Customs Laws. - Any vehicle, vessel or aircraft, cargo, article
and other objects shall, under the following conditions be
Any vehicle, vessel or aircraft, cargo, article and other objects subjected to forfeiture:
shall, under the following conditions be subjected to forfeiture:
a. Any vehicle, vessel or aircraft, including cargo,
Any vehicle, vessel or aircraft, including cargo, which shall be which shall be used unlawfully in the importation or exportation
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used unlawfully in the importation or exportation of articles or of articles or in conveying and/or transporting contraband or
in conveying and/or transporting contraband or smuggled smuggled articles in commercial quantities into or from any
articles in commercial quantities into or from any Philippine Philippine port or place. The mere carrying or holding on board
port or place. The mere carrying or holding on board of of contraband or smuggled articles in commercial quantities
contraband or smuggled articles in commercial quantities shall shall subject such vessel, vehicle, aircraft, or any other craft to
subject such vessel, vehicle, aircraft, or any other craft to forfeiture: Provided, That the vessel, or aircraft or any other
forfeiture: Provided, That the vessel, or aircraft or any other craft is not used as duly authorized common carrier and as
craft is not used as duly authorized common carrier and as such a carrier it is not chartered or leased;
such a carrier it is not chartered or leased;
b. Any vessel engaging in the coastwise which shall
Any vessel engaging in the coastwise which shall have on have on board any article of foreign growth, produce, or
board any article of foreign growth, produce, or manufacture manufacture in excess of the amount necessary for sea stores,
in excess of the amount necessary for sea stores, without without such article having been properly entered or legally
such article having been properly entered or legally imported; imported;
Any vessel or aircraft into which shall be transferred cargo c. Any vessel or aircraft into which shall be transferred
unladen contrary to law prior to the arrival of the importing cargo unladen contrary to law prior to the arrival of the
vessel or aircraft at her port of destination; importing vessel or aircraft at her port of destination;
Any part of the cargo, stores or supplies of a vessel or aircraft d. Any part of the cargo, stores or supplies of a vessel
arriving from a foreign port which is unladen before arrival at or aircraft arriving from a foreign port which is unladen before
the vessel's or aircraft's port of destination and without arrival at the vessel's or aircraft's port of destination and
authority from the customs officials; but such cargo, ship or without authority from the customs officials; but such cargo,
aircraft stores and supplies shall not be forfeited if such ship or aircraft stores and supplies shall not be forfeited if such
unlading was due to accident, stress of weather or other unlading was due to accident, stress of weather or other
necessity and is subsequently approved by the Collector; necessity and is subsequently approved by the Collector;
Any article which is fraudulently concealed in or removed e. Any article which is fraudulently concealed in or
contrary to law from any public or private warehouse, removed contrary to law from any public or private warehouse,
container yard or container freight station under customs container yard or container freight station under customs
supervision; supervision;
Any article the importation or exportation of which is effected f. Any article the importation or exportation of which is
or attempted contrary to law, or any article of prohibited effected or attempted contrary to law, or any article of
importation or exportation, and all other articles which, in the prohibited importation or exportation, and all other articles
opinion of the Collector, have been used, are or were entered which, in the opinion of the Collector, have been used, are or
to be used as instruments in the importation or the exportation were entered to be used as instruments in the importation or
of the former; the exportation of the former;
Unmanifested article found on any vessel or aircraft if g. Unmanifested article found on any vessel or aircraft
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manifest therefore is required; if manifest therefore is required;
Sea stores or aircraft stores adjudged by the Collector to be h. Sea stores or aircraft stores adjudged by the
excessive, when the duties assessed by the Collector thereon Collector to be excessive, when the duties assessed by the
are not paid or secured forthwith upon assessment of the Collector thereon are not paid or secured forthwith upon
same; assessment of the same,
Any package of imported article which is found by the i. Any package of imported article which is found by
examining official to contain any article not specified in the the examining official to contain any article not specified in the
invoice or entry, including all other packages purportedly invoice or entry, including all other packages purportedly
containing imported articles similar to those declared in the containing imported articles similar to those declared in the
invoice or entry to be the contents of the misdeclared invoice or entry to be the contents of the misdeclared package;
package; Provided, That the Collector is of the opinion that Provided, That the Collector is of the opinion that the
the misdeclaration was contrary to law; misdeclaration was contrary to law;
Boxes, cases, trunks, envelopes and other containers of j. Boxes, cases, trunks, envelopes and other
whatever character used as receptacle or as device to containers of whatever character used as receptacle or as
conceal article which is itself subject to forfeiture under the device to conceal article which is itself subject to forfeiture
tariff and customs laws or which is so designed as to conceal under the tariff and customs laws or which is so designed as to
the character of such articles; conceal the character of such articles;
Any conveyance actually being used for the transport of k. Any conveyance actually being used for the
articles subject to forfeiture under the CUSTOMS AND tariff transport of articles subject to forfeiture under the tariff and
laws, with its equipage or trappings, and any vehicle similarly customs laws, with its equipage or trappings, and any vehicle
used, together with its equipage and appurtenances including similarly used, together with its equipage and appurtenances
the beast, steam or other motive power drawing or propelling including the beast, steam or other motive power drawing or
the same. The mere conveyance of contraband or smuggled propelling the same. The mere conveyance of contraband or
articles by such beast or vehicle shall be sufficient cause for smuggled articles by such beast or vehicle shall be sufficient
the outright seizure and confiscation of such beast or vehicle cause for the outright seizure and confiscation of such beast or
but the forfeiture shall not be effected if it is established that vehicle but the forfeiture shall not be effected if it is established
the owner of the means of conveyance used as aforesaid, is that the owner of the means of conveyance used as aforesaid,
engaged as common carrier and not chartered or leased, or is engaged as common carrier and not chartered or leased, or
his agent in charge thereof at the time, has no knowledge of his agent in charge thereof at the time, has no knowledge of
the unlawful act; the unlawful act;
Any article sought to be imported or exported: l. Any article sought to be imported or exported:
(1) Without going through a customhouse, whether the (1) Without going through a customhouse, whether the
act was consummated, frustrated or attempted; act was consummated, frustrated or attempted;
(2) By failure to mention to a customs official, articles (2) By failure to mention to a customs official, articles
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found in the baggage of a person arriving from abroad; found in the baggage of a person arriving from abroad;
(3) On the strength of a false declaration or affidavit (3) On the strength of a false declaration or affidavit
executed by the owner, importer, exporter or consignee executed by the owner, importer, exporter or consignee
concerning the importation of such article; concerning the importation of such article;
(4) On the strength of a false invoice or other (4) On the strength of a false invoice or other document
document executed by the owner, importer, exporter or executed by the owner, importer, exporter or consignee
consignee concerning the importation or exportation of such concerning the importation or exportation of such article; and
article; and
(5) Through any other practice or device contrary to law
(5) Through any other practice or device contrary to by means of which such articles was entered hrough a
law by means of which such articles was entered hrough a customhouse to the prejudice of the government.
customhouse to the prejudice of the government.
SEC. 1524. Properties Not Subject to Forfeiture in the SEC 2531 Properties Not Subject to Forfeiture in the Absence En toto
Absence of Prima Facie Evidence. of Prima Facie Evidence. The forfeiture of the vehicle, vessel,
or aircraft shall hot be effected if it is established that the owner
The forfeiture of the vehicle, vessel, or aircraft shall hot be thereof or his agent in charge of the means of conveyance
effected if it is established that the owner thereof or his agent used as aforesaid has no knowledge of or participation in the
in charge of the means of conveyance used as aforesaid has unlawful act: Provided, however, That a prima facie
no knowledge of or participation in the unlawful act: Provided, presumption shall exist against the vessel, vehicle or aircraft
however, That a prima facie presumption shall exist against under any of the following circumstances:
the vessel, vehicle or aircraft under any of the following
circumstances: 1. If the conveyance has been used for smuggling at
least twice before;
If the conveyance has been used for smuggling before;
2. If the owner is not in the business for which the
If the owner is not in the business for which the conveyance is conveyance is generally used; and
generally used; and
3. If the owner is not financially in a position to own
If the owner is not financially in a position to own such such conveyance.
conveyance.
SEC. 1525. Conditions Affecting Forfeiture of Article. SEC 2532 Conditions Affecting Forfeiture of Article. - As The first qualifying phrase as regards
regards imported or exported article or articles whereof the imported....where importation... thereof
The forfeiture shall be effected only when and while the article importation or exportation is merely attempted, the forfeiture is merely attempted is deleted since
is in the custody or within the jurisdiction of the customs shall be effected only when and while the article is in the there is no attempted stage for criminal
authorities or in the hands or subject to the control of the custody or within the jurisdiction of the customs authorities or in offense defined by special law. The
importer, exporter, original owner, consignee, agent of other
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person effecting the importation, entry or exportation in the hands or subject to the control of the importer, exporter, rest is retained as an important
question, or in the hands or subject to the control of some original owner, consignee, agent of other person effecting the principle of customs law on seizure
persons who shall receive, conceal, buy, sell or transport the importation, entry or exportation in question, or in the hands or and forfeiture.
same or aid in any such acts, with knowledge that the article subject to the control of some persons who shall receive,
was imported, or was the subject of an attempt at importation conceal, buy, sell or transport the same or aid in any such acts,
or exportation, contrary to law. with knowledge that the article was imported, or was the
subject of an attempt at importation or exportation, contrary to
law.
SEC. 1526. Unlawful Importation OR EXPORTATION. SEC 3601 Unlawful Importation. - Any person who shall Sec 57 ASB proposes to redefine Penalties are revised for unlawful
fraudulently import or bring into the Philippines, or assist in so smuggling by taking away the element of importation and exportation is added.
Any person who shall fraudulently import or EXPORT OR doing, any article, contrary to law, or shall receive, conceal, knowledge in the commission of the Provision on unlawful importation
bring into OR OUT OF the Philippines, or assist in so doing, buy, sell, or in any manner facilitate the transportation, offense retains the element of knowingly to
any article, contrary to law, or shall receive, conceal, buy, sell, concealment, or sale of such article after importation, knowing be consistent with the criminal law
or in any manner facilitate the transportation, concealment, or the same to have been imported contrary to law, shall be guilty justice principle of willful intent to
sale of such article after importation, knowing the same to of smuggling and shall be punished with: commit the act (in malum prohibitum,
have been imported contrary to law, shall be guilty of malice is not essential; the act itself is
smuggling and shall be punished with: 1. A fine of not less than fifty pesos nor more than two criminal; but there must be an intent to
hundred pesos and imprisonment of not less than five days nor commit such act) In the ASB proposal
A fine of not less than TWENTY THOUSAND pesos nor more more than twenty days; if the appraised value, to be the act itself regardless of whether it
than FIFTY THOUSAND PESOS and imprisonment of 6 determined in the manner prescribed under this Code, was knowingly done is being made
MONTHS BUT NOT MORE THAN 12 MONTHS ; if the value, including duties and taxes, of the article unlawfully imported punishable. This may not withstand
to be determined in the manner prescribed under this Code, does not exceed twenty -five pesos; legal and judicial scrutiny in a
including duties and taxes, of the article unlawfully imported constitutional dispute.
does not exceed ONE HUNDRED THOUSAND PESOS 2. A fine of not less than eight hundred pesos nor
(P100,000.00). more than five thousand pesos and imprisonment of not less
than six months and one day nor more than four years, if the
A fine of not less than FIFTY THOUSAND pesos nor more appraised value, to be determined in the manner prescribed
than ONE HUNDRED THOUSAND pesos and imprisonment under this Code, including duties and taxes, of the article
of not less than TWELVE MONTHS and one day nor more unlawfully imported exceeds twenty -five pesos but does not
than SIX years, if the value, to be determined in the manner exceed fifty thousand pesos;
prescribed under this Act , including duties and taxes, of the
article unlawfully imported exceeds ONE HUNDRED 3. A fine of not less than six thousand pesos nor more
THOUSAND PESOS but does not exceed ONE MILLION than eight thousand pesos and imprisonment of not less than
PESOS(P1,000,000.00); five years and one day nor more than eight years, if the
appraised value, to be determined in the manner prescribed
A fine of not less than ONE HUNDRED THOUSAND under this Code, including duties and taxes, of the article
PESOS(P100,000) nor more than FIVE HUNDRED unlawfully imported is more than fifty thousand pesos but does
THOUSAND PESOS (P500,000) and imprisonment of not not exceed one hundred thousand pesos;
less than SIX (6) YEARS and one day nor more than twelve
years, if the appraised value to be determined in the manner 4. A fine of not less than eight thousand pesos nor
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prescribed under this Code, including duties and taxes, of the more than ten thousand pesos and imprisonment of not less
article unlawfully imported exceeds ONE MILLION PESOS than eight years and one day nor more than twelve years, if the
(P1,000,000). appraised value to be determined in the manner prescribed
under this Code, including duties and taxes, of the article
The penalty of imprisonment may or shall be imposed when unlawfully imported exceeds one hundred fifty thousand pesos;
the crime of serious physical injuries shall have been
committed and the penalty of reclusion perpetua to death shall 5. The penalty of prison may or shall be imposed when
be imposed when the crime of homicide shall have been the crime of serious physical injuries shall have been
committed by reason or on the occasion of the unlawful committed and the penalty of reclusion perpetua to death shall
importation. HOWEVER ,IF THE SMUGGLED ARTICLES IS be imposed when the crime of homicide shall have been
ANTI SOCIAL GOODS, THE PENALTY IMPOSABLE IS SIX committed by reason or on the occasion of the unlawful
(6) YEARS AND ONE (1) DAY IMPRISONMENT. importation.
In applying the above scale of penalties, if the offender is an In applying the above scale of penalties, if the offender is an
alien and the prescribed penalty is not death, he shall be alien and the prescribed penalty is not death, he shall be
deported after serving the sentence without further deported after serving the sentence without further
proceedings for deportation. If the offender is a government proceedings for deportation. If the offender is a government
official or employee, the penalty shall be the maximum as official or employee, the penalty shall be the maximum as
hereinabove prescribe and the offender shall suffer an hereinabove prescribe and the offender shall suffer an
additional penalty of perpetual disqualification from public additional penalty of perpetual disqualification from public
office, to vote and to participate in any public election. office, to vote and to participate in any public election.
When, upon trial for violation of this section, the defendant is When, upon trial for violation of this section, the defendant is
shown to have had possession of the article in question, shown to have had possession of the article in question,
possession shall be deemed sufficient evidence to authorize possession shall be deemed sufficient evidence to authorize
conviction unless the defendant shall explain the possession conviction unless the defendant shall explain the possession to
to the satisfaction of the court: Provided, however, That the satisfaction of the court: Provided, however, That payment
payment of the tax due after apprehension shall not constitute of the tax due after apprehension shall not constitute a valid
a valid defense in any prosecution under this section. defense in any prosecution under this section.
SEC. 1527. Various Fraudulent Practices Against SEC 3602 Various Fraudulent Practices Against Customs En toto
Customs Revenue. Revenue. - Any person who makes or attempts to make any
entry of imported or exported article by means of any false or
Any person who makes or attempts to make any entry of fraudulent invoice, declaration, affidavit, letter, paper or by any
imported or exported article by means of any false or means of any false statement, written or verbal, or by any
fraudulent invoice, declaration, affidavit, letter, paper or by any means of any false or fraudulent practice whatsoever, or
means of any false statement, written or verbal, or by any knowingly effects any entry of goods, wares or merchandise, at
means of any false or fraudulent practice whatsoever, or less than true weight or measures thereof or upon a false
knowingly effects any entry of goods, wares or merchandise, classification as to quality or value, or by the payment of less
at less than true weight or measures thereof or upon a false than the amount legally due, or knowingly and willfully files any
classification as to quality or value, or by the payment of less
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than the amount legally due, or knowingly and willfully files false or fraudulent entry or claim for the payment of drawback
any false or fraudulent entry or claim for the payment of or refund of duties upon the exportation of merchandise, or
drawback or refund of duties upon the exportation of makes or files any affidavit abstract, record, certificate or other
merchandise, or makes or files any affidavit abstract, record, document, with a view to securing the payment to himself or
certificate or other document, with a view to securing the others of any drawback, allowance, or refund of duties on the
payment to himself or others of any drawback, allowance, or exportation of merchandise, greater than that legally due
refund of duties on the exportation of merchandise, greater thereon, or who shall be guilty of any willful act or omission
than that legally due thereon, or who shall be guilty of any shall, for each offence, be punished in accordance with the
willful act or omission shall, for each offence, be punished in penalties prescribed in the preceding section.
accordance with the penalties prescribed in the preceding
section.
SEC. 1528. Failure to Report Fraud. SEC 3603 Failure to Report Fraud. - Any master, pilot in Amount of penalty increased
command or other officer, owner or agent of any vessel or
Any master, pilot-in-command or other officer, owner or agent aircraft trading with or within the Philippines and any employee
of any vessel or aircraft trading with or within the Philippines of the Bureau of Customs who, having cognizance of any fraud
and any employee of the Bureau of Customs who, having on the customs revenue, shah fail to report all information
cognizance of any fraud on the customs revenue, shall fail to relative thereto to the Collector as by law required, shall be
report all information relative thereto to the Collector as by law punished by a fine of not more than five thousand pesos and
required, shall be punished by a fine of not more than THIRTY imprisonment for not more than one year. If the offender is an
thousand pesos and imprisonment for not more than one alien, he shall be deported after serving the sentence. If the
year. If the offender is an alien, he shall be deported after offender is a public official or employee, he shall suffer
serving the sentence. If the offender is a public official or additional penalty of perpetual disqualification to hold public
employee, he shall suffer additional penalty of perpetual office, to vote and to participate, in any election.
disqualification to hold public office, to vote and to participate,
in any election.
SEC. 1529. Statutory Offenses of Officials and SEC 3604 Statutory Offenses of Officials and Employees. same as above
Employees. Every official, agent or employee of the Bureau or of any other
agency of the government charged with the enforcement of the
Every official, agent or employee of the Bureau or of any other provisions of this Code, who is guilty of any delinquency herein
agency of the government charged with the enforcement of below indicated shall be punished with a fine of not less than
the provisions of this Code, who is guilty of any delinquency Five thousand pesos (P5,000) nor more than Fifty thousand
herein below indicated shall be punished with a fine of not pesos (P50,000) and imprisonment for not less than one (1)
less than THIRTY thousand pesos (P30,000) nor more than year nor more than ten (10) years and perpetual
ONE HUNDRED thousand pesos (P100,000) and disqualification to hold public office, to vote and to participate in
imprisonment for not less than one (1) year nor more than ten any public election:
(10) years and perpetual disqualification to hold public office,
to vote and to participate in any public election: (a) Those guilty of extortion or willful oppression under
color of law;
Those guilty of extortion or willful oppression under color of
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law. (b) Those who knowingly demand other or greater
sums than are authorized by law or receive any fee,
Those who knowingly demand other or greater sums than are compensation, or reward except as by law prescribed, for the
authorized by law or receive any fee, compensation, or reward performance of any duty;
except as by law prescribed, for the performance of any duty.
(c) Those who willfully neglect to give receipts, as
Those who willfully neglect to give receipts, as required by law required by law for any sum collection in the performance of
for any sum collection in the performance of duty, or who duty, or who willfully neglect to perform any of the duties
willfully neglect to perform any of the duties enjoined by law. enjoined by law;
Those who conspire or collude with another or others to (d) Those who conspire or collude with another or
defraud the customs revenue or otherwise violate the law. others to defraud the customs revenue or otherwise violate the
law;
Those who willfully make opportunity for any person to
defraud the customs revenue or who do or fail to do any act (e) Those who willfully make opportunity for any
with intent to enable any person to defraud said revenue. person to defraud the customs revenue or who do or fail to do
any act with intent to enable any person to defraud said
Those who negligently or designedly permit the violation of revenue;
the law by any other person.
(f) Those who negligently or designedly permit the
Those who make or sign any false entry or entries in any violation of the law by any other person;
book, or make or sign any false certificate or return in any
case where the law requires the making by them of such entry (g) Those who make or sign any false entry or entries
certificate or return. in any book, or make or sign any false certificate or return in
any case where the law requires the making by them of such
Those who, having knowledge or information of a violation of entry certificate or return;
the CUSTOMS AND Tariff Law or any fraud committed on the
revenue collectible by the Bureau, fail to report such (h) Those who, having knowledge or information of a
knowledge or information to their superior official or to report violation of the Tariff and Customs Law or any fraud committed
as otherwise required by law. on the revenue collectible by the Bureau, fail to report such
knowledge or information to their superior official or to report as
Those who, without the authority of law, demand or accept or otherwise required by law;
attempt to collect directly or indirectly as payment or
otherwise, any sum of money or other thing of value for the (i) Those who, without the authority of law, demand or
compromise, adjustment, or settlement of any charge or accept or attempt to collect directly or indirectly as payment of
complaint for any violation or alleged violation of law. Or otherwise, any sum of money or other thing of value for the
compromise, adjustment, or settlement of any charge or
Those who, without authority of law, disclose confidential complaint for any violation or alleged violation of law; or
information gained during any investigation or audit, or use
such information for personal gain or to the detriment of the (j) Those who, without authority of law, disclose
government, the Bureau or third parties.(R.A. 9135, April 27, confidential information gained during any investigation or
220
2001) audit, or use such information for personal gain or to the
detriment of the government, the Bureau or third parties.(R.A.
9135, April 27, 2001)
SEC. 1530. Concealment or Destruction of Evidence of SEC 3605 Concealment or Destruction of Evidence of Fraud. - Same as above
Fraud. Any person who willfully conceals or destroys, any invoice,
book or paper relating to any article liable to duty after an
Any person who willfully conceals or destroys, any invoice, inspection thereof has been demanded by the Collector of any
book or paper relating to any article liable to duty after an collection district or at any time conceals or destroys any such
inspection thereof has been demanded by the Collector of any invoice, book or paper for the purpose of suppressing any
collection district or at any time conceals or destroys any such evidence of fraud therein contained, shall be punished with a
invoice, book or paper for the purpose of suppressing any fine of not more than five thousand pesos and imprisonment for
evidence of fraud therein contained, shall be punished with a not more than two years.
fine of not more than ONE HUNDRED thousand pesos and
imprisonment for not more than two years.
SEC. 1531. Affixing Seals. SEC 3606 Affixing Seals. - Any person who, without authority Same as above
affixes or attaches a customs seal, fastening, or mark or any
Any person who, without authority affixes or attaches a seal, fastening or mark purporting to be a customs seal,
customs seal, fastening, or mark or any seal, fastening or fastening or mark to any vessel, vehicle on land, sea or air,
mark purporting to be a customs seal, fastening or mark to warehouse, or package, shall be punished with a fine of not
any vessel, vehicle on land, sea or air, warehouse, or more than twenty thousand pesos or imprisonment of not more
package, shall be punished with a fine of not more than FIFTY than five years, or both. If the offender is an alien, he shall be
thousand pesos or imprisonment of not more than TWO deported after serving the sentence; and if he is a public official
years, or both. If the offender is an alien, he shall be deported or employee, he shall suffer an additional penalty of perpetual
after serving the sentence; and if he is a public official or disqualification to hold public office, to vote and participate in
employee, he shall suffer an additional penalty of perpetual any election.
disqualification to hold public office, to vote and participate in
any election.
SEC. 1532. Removal, Breakage, Alteration of Marks. SEC 3607 Removal, Breakage, Alteration of Marks. - Any Same as above
person who without authority, willfully removes, breaks, injures,
Any person who without authority, willfully removes, breaks, or defaces or alters any customs seal or other fastening or
injures, or defaces or alters any customs seal or other mark placed upon any vessel, vehicles, on land, sea or air,
fastening or mark placed upon any vessel, vehicles, on land, warehouse or package containing merchandise or baggage in
sea or air, warehouse or package containing merchandise or bond or in customs custody, shall be punished with the penalty
baggage in bond or in customs custody, shall be punished prescribed in Section 3606 hereof.
with the penalty prescribed in Section 1518 hereof.
SEC. 1533. Removing or Repacking Goods in Warehouse. SEC 3608 Removing or Repacking Goods in Warehouse. - Same as above
Any person who fraudulently conceals, removes, or repacks
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Any person who fraudulently conceals, removes, or repacks merchandise in any warehouse or fraudulently alters, defaces
merchandise in any warehouse or fraudulently alters, defaces or obliterates any marks or numbers placed upon packages
or obliterates any marks or numbers placed upon packages deposited in such warehouse, or shall aid or abet in any such
deposited in such warehouse, or shall aid or abet in any such acts or omission, shall be punished with the penalties
acts or omission, shall be punished with the penalties prescribed in Section 3606 hereof.
prescribed in Section 1531 hereof.
Merchandise so concealed, removed, or repacked, or
Merchandise so concealed, removed, or repacked, or packages upon which marks or numbers have been so altered,
packages upon which marks or numbers have been so defaced or obliterated, or the value thereof, shall be forfeited to
altered, defaced or obliterated, or the value thereof, shall be the government.
forfeited to the government.
SEC. 1534. Removing Goods from Customs Custody. SEC 3609 Removing Goods from Customs Custody. - Any Same as above
person who maliciously enters any warehouse, or any vehicle
Any person who maliciously enters any warehouse, or any laden with or containing merchandise with intent unlawfully to
vehicle laden with or containing merchandise with intent remove therefrom any merchandise or baggage in such
unlawfully to remove therefrom any merchandise or baggage vessels, vehicle or warehouse or otherwise in customs custody
in such vessels, vehicle or warehouse or otherwise in customs or control, or any person who receives or transports any
custody or control, or any person who receives or transports merchandise or baggage unlawfully removed from any such
any merchandise or baggage unlawfully removed from any vessel, vehicle or warehouse, or shall aid or abet such
such vessel, vehicle or warehouse, or shall aid or abet such removal, shall suffer the penalties provided in Section 3606
removal, shall suffer the penalties provided in Section 1531 hereof.
hereof.
SEC. 1535. Failure to Keep Importation Records and Full SEC 3610 Failure to Keep Importation Records and Full Same as above
Access to Customs Officers. Access to Customs Officers. Any person who fails to keep all
the records of importations and/or books of accounts, business
Any person who fails to keep all the records of importations and computer systems and all customs commercial data in the
and/or books of accounts, business and computer systems manner prescribed in Part 2, Section 3514 of this Title shall be
and all customs commercial data in the manner prescribed in punished with a fine of not less than One hundred thousand
Part 2, Section 3514 of this Title shall be punished with a fine pesos (P100,000) but not more than Two hundred thousand
of not less than One hundred thousand pesos (P100,000) but pesos (P200,000) and/or imprisonment of not less than two (2)
not more than Two hundred thousand pesos (P200,000) years and one day but not more than six (6) years. This penalty
and/or imprisonment of not less than two (2) years and one shall likewise be imposed against importers/brokers who deny
day but not more than six (6) years. This penalty shall likewise an authorized customs officer full and free access to such
be imposed against importers/brokers who deny an records, books of accounts, business and computer systems,
authorized customs officer full and free access to such and all customs commercial data including payment records.
records, books of accounts, business and computer systems, This is without prejudice to the administrative sanctions that the
and all customs commercial data including payment records. Bureau of Customs may impose against the contumacious
This is without prejudice to the administrative sanctions that importers under existing laws and regulations including the
the Bureau of Customs may impose against the contumacious
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importers under existing laws and regulations including the authority to hold delivery or release of their imported articles.
authority to hold delivery or release of their imported articles. (R.A. 9135, April 27, 2001)
SEC. 1536. Violations of CUSTOMS AND Tariff Laws and SEC 3612 Violations of Tariff and Customs Laws and Same as above
Regulations in General. Regulations in General. - Any person who violates a provision
of this Code or regulations pursuant thereto, for which
Any person who violates a provision of this ACT or regulations delinquency no specific penalty is provided, shall be punished
pursuant thereto, for which delinquency no specific penalty is by a fine of not more than one thousand pesos or by
provided, shall be punished by a fine of not more than imprisonment for not more than one year, or both. If the
THIRTY thousand pesos or by imprisonment for not more offender is an alien he shall be deported after serving the
than one year, or both. If the offender is an alien he shall be sentence and if the offender is a public official or employee, he
deported after serving the sentence and if the offender is a shall suffer disqualification to hold public office, to vote and
public official or employee, he shall suffer disqualification to participate in any public election for ten years. (RA 9135, April
hold public office, to vote and participate in any public election 27, 2001)
for ten years. (RA 9135, April 27, 2001)
TITLE 16. MISCELLANEOUS PROVISIONS
SEC. 1600. INFORMATION, DECISIONS AND RULINGS. RKC GA Standards 9.1 and 9.2 New provision.
THE BUREAU OF CUSTOMS SHALL ENSURE THAT ALL 9.1. Standard

INFORMATION OF GENERAL APPLICATION PERTAINING
TO CUSTOMS, INCLUDING REVISIONS OR The Customs shall ensure that all relevant
AMENDMENTS THERETO, SHALL BE AVAILABLE TO THE information of general application
GENERAL PUBLIC. pertaining to Customs law is readily
available to any interested person.
9.2. Standard
When information that has been made

available must be amended due to
changes in Customs law, administrative
arrangements or requirements, the
Customs shall make the revised
information readily available sufficiently in
advance of the entry into force of the
changes to enable interested persons to
take account of them, unless advance
notice is precluded.
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SEC. 1601. Duty of Collector to Report Rulings to SEC 3501 Duty of Collector to Report Rulings to En toto
Commissioner. Commissioner. - When any new or unsettled question shall be
determined by a collector, he shall, if the matter is not
When any new or unsettled question shall be determined by a otherwise appealed for, review in the ordinary course, notify
collector, he shall, if the matter is not otherwise appealed for, the Commissioner of his decision and submit an adequate
review in the ordinary course, notify the Commissioner of his statement of the facts involved.
decision and submit an adequate statement of the facts
involved.
SEC. 1602. Application of Established Ruling or Decision. SEC 3502 Application of Established Ruling or Decision. - A En toto
ruling or decision of the Commissioner of Customs which
A ruling or decision of the Commissioner of Customs which determines the construction or application of any provision of
determines the construction or application of any provision of law imposing customs duties and which changes any existing
law imposing customs duties and which changes any existing established classification, interpretation or practice shall not
established classification, interpretation or practice shall not take effect until after thirty days public notice shall be given in
take effect until after thirty days public notice shall be given in the form of a published customs tariff decision. When such
the form of a published customs tariff decision. When such ruling or decision favors the taxpayers, it shall become
ruling or decision favors the taxpayers, it shall become effective immediately.
effective immediately.
SEC. 1603. Authority of Official to Administer Oaths and SEC 3503 Authority of Official to Administer Oaths and Take En toto
Take Testimony. Testimony. - The Commissioner, Collectors and their deputies,
and other customs employees especially deputized by the
The Commissioner, Collectors and their deputies, and other Collector shall have authority to administer oaths and take
customs employees especially deputized by the Collector testimony in connection with any matter within the jurisdiction
shall have authority to administer oaths and take testimony in of the Bureau of Customs and in connection therewith may
connection with any matter within the jurisdiction of the require the production of relevant papers, documents, books
Bureau of Customs and in connection therewith may require and records in accordance with law.
the production of relevant papers, documents, books and
records in accordance with law.
SEC. 1604. General Bonds. SEC 3504 General Bonds. - In cases where bonds are En toto
required to be given under the provisions of the customs and
In cases where bonds are required to be given under the tariff laws, the Collector, instead of requiring separate special
provisions of the customs and tariff laws, the Collector, bonds where transactions of a particular party are numerous,
instead of requiring separate special bonds where may accept general bonds extending over such periods of time
transactions of a particular party are numerous, may accept and covering such transactions of the party in question as shall
general bonds extending over such periods of time and be satisfactory to said Collector.
covering such transactions of the party in question as shall be
satisfactory to said Collector.
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SEC. 1605. Assignment of Customs Employees to SEC 3506 Assignment of Customs Employees to Overtime En toto
Overtime Work. Work. - Customs employees may be assigned by a Collector to
do overtime work at rates fixed by the Commissioner of
Customs employees may be assigned by a Collector to do Customs when the service rendered is to be paid for by
overtime work at rates fixed by the Commissioner of Customs importers, shippers or other persons served. The rates to be
when the service rendered is to be paid for by importers, fixed shall not be less than that prescribed by law to be paid to
shippers or other persons served. The rates to be fixed shall employees of private enterprise.
not be less than that prescribed by law to be paid to
employees of private enterprise.
SEC. 1606. Reduction of Testimony to Writing. SEC 3510 Reduction of Testimony to Writing. - When En toto
testimony is taken in any proceeding or matter under the
When testimony is taken in any proceeding or matter under authority of the Bureau of Customs, either party may require
the authority of the Bureau of Customs, either party may that the same be reduced to writing, and when so taken it shall
require that the same be reduced to writing, and when so be filed in the Office of the Collector and preserved for use or
taken it shall be filed in the Office of the Collector and reference until final decision.
preserved for use or reference until final decision.
SEC. 1607. Collector Not Liable in Respect to Ruling in SEC 3511 Collector Not Liable in Respect to Ruling in En toto
Customs Cases. Customs Cases. - No Collector or other official of customs shall
be in any way personally liable for or an account of any official
No Collector or other official of customs shall be in any way ruling or decision as to which the person claiming to be
personally liable for or an account of any official ruling or aggrieved has the right to obtain either an administrative or
decision as to which the person claiming to be aggrieved has judicial review, and except for misdelivery of articles a Collector
the right to obtain either an administrative or judicial review, shall not, in the absence of abuse of authority, be liable to any
and except for misdelivery of articles a Collector shall not, in person for a loss occasioned either by his own official act or
the absence of abuse of authority, the acts of his subordinates.
SEC. 1608. Interest Prohibited to be Held by Customs SEC 3512 Interest Prohibited to be Held by Customs En toto
Employees. Employees. - No person employed under the authority of the
government in the collection of duties, taxes, fees and other
No person employed under the authority of the government in charges in connection with imports and/or exports, shall own,
the collection of duties, taxes, fees and other charges in either in whole or in part, any vessel or aircraft or act as
connection with imports and/or exports, shall own, either in attorney, agent or consignee for the owner of any vessel or
whole or in part, any vessel or aircraft or act as attorney, aircraft or of any cargo laden on board the same nor shall any
agent or consignee for the owner of any vessel or aircraft or of such person import or be concerned, directly or indirectly, in
any cargo laden on board the same nor shall any such person the importation of any article for sale into the Philippines.
import or be concerned, directly or indirectly, in the
importation of any article for sale into the Philippines.
225
SEC. 1609. Reward to Persons Instrumental in the SEC 3513 Reward to Persons Instrumental in the Discovery Major amendment. Provision on
ACTUAL COLLECTION OF ADDITIONAL REVENUES and Seizure of Smuggled Goods. The provisions of general rewards claim to include cases where
ARISING FROM THE Discovery OF VIOLATIONS OF and special laws to the contrary notwithstanding, a cash information leads to collection of
CUSTOMS AND TARIFF LAWS. reward equivalent to twenty per centum (20%) of the fair additional revenues; but reward shall
market value of the smuggled and confiscated goods shall be be limited only to non-Customs
The provisions of general and special laws to the contrary given to the officers and men and informers who are personnel. If the additional revenue
notwithstanding, a cash reward equivalent to twenty per instrumental in the discovery and seizure of such goods in resulted from the discovery or
centum (20%) of the ACTUAL PROCEEDS FROM THE SALE accordance with the rules and regulations to be issued by the uncovering of customs law violations
OF SMUGGLED ARTICLES AND CONFISCATED GOODS Secretary of Finance. based on information coming from
OR ACTUAL COLLECTION OF ADDITIONAL REVENUES customs personnel or from the diligent
shall be given to the NON-CUSTOMS informers who are The provisions of this section, and not those of Republic Act exercise of their legal functions, no
instrumental in the COLLECTION OF ADDITIONAL Numbered Twenty -three Hundred and Thirty- eight shall reward shall be due.
REVENUES ARISING FROM THE DISCOVERY OF govern the giving of reward in cases covered by the former.
VIOLATIONS OF CUSTOMS AND TARIFF LAWS in
accordance with the rules and regulations to be issued by the
Secretary of Finance.
SEC. 1610. OUTSOURCING OF NON-SOVEREIGN New provision to enable customs to

CUSTOMS FUNCTIONS TO PRIVATE ENTITIES. contract services in helping it carry out
its non-sovereign, or non-
SUBJECT TO THE APPROVAL OF SECRETARY OF governmental functions. This means
FINANCE, CUSTOMS MAY OUTSOURCE ANY OF ITS that if the function is governmental or
NON-SOVEREIGN AND/OR ANCILIARY FUNCTION TO sovereign or non-delegable in nature,
QUALIFIED AND COMPETENT PRIVATE ENTITIES IN it cannot be outsourced. Subject to
ACCORDANCE WITH GOVERNMENT RULES ON SERVICE government procurement rules.
PROCUREMENT.
SEC. 1611. INTERNATIONAL STANDARDS AND BEST New provision to make manifest
PRACTICES. through national legislation the policy
of adopting international best customs
THE BUREAU OF CUSTOMS MAY ADOPT practices and standards.
INTERNATIONAL STANDARDS AND BEST PRACTICES IN
CUSTOMS ADMINISTRATION LAID DOWN BY
INTERNATIONAL AGREEMENT OR CONVENTION
PERTAINING TO TRADE FACILITATION, SUPPLY CHAIN
SECURITY, AND RELATED MATTERS, WHETHER OR NOT
THE PHILIPPINES IS SIGNATORY TO SUCH
INTERNATIONAL AGREEMENT OR CONVENTION.
TITLE 17. TARIFF ADMINISTRATION AND POLICY
226
CHAPTER 1. TARIFF COMMISSION
SEC. 1700. Chief Officials of the Tariff Commission AND SEC 501 Chief Officials of the Tariff Commission. Sections 501 and 502 are merged.
THEIR QUALIFICATIONS.
The Officials of the Tariff Commission shall be the Chairman
The Officials of the Tariff Commission shall be the Chairman and two (2) Member Commissioners to be appointed by the
and two (2) Member Commissioners to be appointed by the President of the Philippines.
President of the Philippines. No person shall be eligible for
appointment as Chairman and Tariff Commissioners unless SEC 502 Qualifications.
they are natural-born citizens of the Philippines, of good moral
character and proven integrity, and who by experience and No person shall be eligible for appointment as Chairman and
academic training are possessed of qualifications requisite for Tariff Commissioners unless they are natural born citizens of
developing expert knowledge of tariff problems. They shall the Philippines, of good moral character and proven integrity,
not, during their tenure in office, engage in the practice of any and who by experience and academic training are possessed
profession, or intervene directly or indirectly in the of qualifications requisite for developing expert knowledge of
management or control of any private enterprise which may, tariff problems. They shall not, during their tenure in office,
in any way, be affected by the functions of their office nor shall engage in the practice of any profession, or intervene directly
be, directly or indirectly, financially interested in any contract or indirectly in the management or control of any private
with the Government, or any subdivision or instrumentality enterprise which may, in any way, be affected by the functions
thereof. of their office nor shall be, directly or indirectly, financially
interested in any contract with the Government, or any
subdivision or instrumentality thereof.
SEC. 1701. Appointment and Compensation of Officials SEC 503 Appointment and Compensation of Officials and En toto
and Employees. Employees.
All employees of the Commission shall be appointed by the All employees of the Commission shall be appointed by the
Chairman in accordance with the Civil Service Law except the Chairman in accordance with the Civil Service Law except the
private secretaries to the Chairman, Commissioners and private secretaries to the Chairman, Commissioners and
Executive Director. Executive Director.
The Tariff Commission shall be reorganized in accordance The Tariff Commission shall be reorganized in accordance with
with the requirements of its reorganized functions and the requirements of its reorganized functions and
responsibilities. The Chairman of the Commission, subject to responsibilities. The Chairman of the Commission, subject to
the approval of the Director-General of the National Economic the approval of the Director General of the National Economic
and Development Authority, shall determine the new and Development Authority, shall determine the new positions
positions-designations and salary scales of the officials and designations and salary scales of the officials and employees
employees of the Commission by taking into account the of the Commission by taking into account the degree of
degree of responsibilities of each position: Provided, That the responsibilities of each position: Provided, That the Office of
Office of Compensation and Position Classification shall be Compensation and Position Classification shall be furnished a
furnished a copy of the new plantilla of positions incorporating copy of the new plantilla of positions incorporating the new
227
the new designations to be automatically included in its designations to be automatically included in its manual of
manual of positions: Provided, further, That the reorganization positions: Provided, further, That the reorganization shall not in
shall not in any way affect whatever benefits the officials and any way affect whatever benefits the officials and employees of
employees of the Commission are allowed under existing law the Commission are allowed under existing law and/or
and/or authority. authority.
SEC. 1702. Official Seal. SEC 504 Official Seal. En toto
The Commission is authorized to adopt an official seal. The Commission is authorized to adopt an official seal.
SEC. 1703. Functions of the Commission. SEC 505 Functions of the Commission. Minor amendment on govt offices to
which investigation report on
The Commission shall investigate The Commission shall investigate classification, among others, of
imported goods, shall be submitted
the administration of, and the fiscal and industrial effects of, (a) the administration of, and the fiscal and industrial
the CUSTOMS AND TARIFF laws of this country now in force effects of, the tariff and customs laws of this country now in
or which may hereafter be enacted; force or which may hereafter be enacted;
the relations between the rates of duty on raw materials and (b) the relations between the rates of duty on raw
the finished or partly finished products; materials and the finished or partly finished products;
the effects of ad valorem and specific duties and of compound (c) the effects of ad valorem and specific duties and of
specific and ad valorem duties; compound specific and ad valorem duties;
all questions relative to the arrangement of schedules and (d) all questions relative to the arrangement of
classification of articles in the several sections of the tariff law; schedules and classification of articles in the several sections
of the tariff law;
the tariff relations between the Philippines and foreign
countries, commercial treaties, preferential provisions, (e) the tariff relations between the Philippines and
economic alliances, the effect of export bounties and foreign countries, commercial treaties, preferential provisions,
preferential transportation rates; economic alliances, the effect of export bounties and
preferential transportation rates;
the volume of importations compared with domestic
production and consumption; (f) the volume of importations compared with domestic
production and consumption;
conditions, causes and effects relating to competition of
foreign industries with those of the Philippines, including (g) conditions, causes and effects relating to
dumping and cost of production; competition of foreign industries with those of the Philippines,
including dumping and cost of production;
in general, to investigate the operation of customs and tariff
laws, including their relation to the national revenues, their (h) in general, to investigate the operation of customs
effect upon the industries and labor of the country, and to and tariff laws, including their relation to the national revenues,
228
submit reports of its investigations as hereinafter provided; their effect upon the industries and labor of the country, and to
and submit reports of its investigations as hereinafter provided; and
the nature and composition of, and the classification of,

articles according to tariff commodity classification and (i) the nature and composition of, and the classification
heading number for customs revenue and other related of, articles according to tariff commodity classification and
purposes which shall be furnished to NEDA, Board of heading number for customs revenue and other related
Investments, BANGKO SENTRAL NG PILIPINAS, and purposes which shall be furnished to NEDA, Board of
Secretary of Finance. Investments, Central Bank of the Philippines, and Secretary of
Finance.
SEC. 1704. Assistance to the President and Congress of SEC 506 Assistance to the President and Congress of the En toto
the Philippines. Philippines.
In order that the President and the Congress may secure In order that the President and the Congress may secure
information and assistance, it shall be the duty of the information and assistance, it shall be the duty of the
Commission to Commission to
Ascertain conversion costs and costs of production in the (a) Ascertain conversion costs and costs of production
principal growing, producing or manufacturing centers of the in the principal growing, producing or manufacturing centers of
Philippines, whenever practicable; the Philippines, whenever practicable;
Ascertain conversion costs and costs of production in the (b) Ascertain conversion costs and costs of production
principal growing, producing or manufacturing centers of in the principal growing, producing or manufacturing centers of
foreign countries of articles imported into the Philippines foreign countries of articles imported into the Philippines
whenever such conversion costs or costs of production are whenever such conversion costs or costs of production are
necessary for comparison with those in the Philippines; necessary for comparison with those in the Philippines;
(c) Select and describe representative articles (c) Select and describe representative articles imported
imported into the Philippines similar to, or comparable with, into the Philippines similar to, or comparable with, those locally
those locally produced; select and describe articles of the produced; select and describe articles of the Philippines similar
Philippines similar to, or comparable with, such imported to, or comparable with, such imported article; and obtain and
article; and obtain and file samples of articles so selected file samples of articles so selected whenever advisable;
whenever advisable;
(d) Ascertain import costs of such representative
(d) Ascertain import costs of such representative articles so selected;
articles so selected;
(e) Ascertain the grower's, producer's or
(e) Ascertain the grower's, producer's or manufacturers selling prices in the principal growing, producing
manufacturers selling prices in the principal growing, or manufacturing centers of the Philippines, of the articles of
producing or manufacturing centers of the Philippines, of the
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articles of the Philippines, so selected; the Philippines, so selected;
(f) Ascertain all other facts which will show the (f) Ascertain all other facts which will show the
difference in, or which affect competition between, articles of difference in, or which affect competition between, articles of
the Philippines and those imported in the principal markets of the Philippines and those imported in the principal markets of
the Philippines; the Philippines;
(g) Ascertain conversion costs and costs of production (g) Ascertain conversion costs and costs of production
including effects of tariff modifications or import restrictions on including effects of tariff modifications or import restrictions on
prices in the principal growing, producing or manufacturing prices in the principal growing, producing or manufacturing
centers of the Philippines, whenever practicable; and centers of the Philippines, whenever practicable; and
(h) Submit annual reports of these to the President of (h) Submit annual reports of these to the President of
the Philippines, copy of which shall be furnished to the NEDA, the Philippines, copy of which shall be furnished to the NEDA,
BANGKO SENTRAL NG PILIPINAS, Department of Finance Central Bank of the Philippines, Department of Finance and the
and the Board of Investments. Board of Investments.
SEC. 1705. Reports of the Commission. SEC 507 Reports of the Commission. En toto
The Commission shall place at the disposal of the President The Commission shall place at the disposal of the President
and any member of the Congress of the Philippines or its and any member of the Congress of the Philippines or its
member thereof all information at its command; shall make member thereof all information at its command; shall make
such investigation and report as may be required by the such investigation and report as may be required by the
President and the Congress of the Philippines and shall report President and the Congress of the Philippines and shall report
to the President and Congress on the first Monday of to the President and Congress on the first Monday of
December of each year hereafter a statement of methods December of each year hereafter a statement of methods
adopted and a summary of all reports made during the year. adopted and a summary of all reports made during the year.
The Commission or its duly authorized representative shall The Commission or its duly authorized representative shall
have access to any document, paper or record, pertinent to have access to any document, paper or record, pertinent to the
the subject matter under investigation, in the possession of subject matter under investigation, in the possession of any
any person, firm, co-partnership, corporation or association person, firm, co partnership, corporation or association
engaged in the production, importation or distribution of any engaged in the production, importation or distribution of any
article under investigation, and shall have power to summon article under investigation, and shall have power to summon
witnesses, take testimony, administer oaths, and to issue witnesses, take testimony, administer oaths, and to issue
subpoena duces tecum requiring the production of books, subpoena duces tecum requiring the production of books,
papers or documents relating to the matter under papers or documents relating to the matter under investigation.
investigation. The Commission may also request the views, The Commission may also request the views,
recommendations and/or assistance of any government office, recommendations and/or assistance of any government office,
agency or instrumentality, and such office, agency or agency or instrumentality, and such office, agency or
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instrumentality shall cooperate fully with the Commission. instrumentality shall cooperate fully with the Commission.
SEC. 1706. Sworn and Verified Statements. SEC 509 Sworn Statements. En toto
The Commission may order the taking of sworn statements at The Commission may order the taking of sworn statements at
any stage of any proceeding or investigation before it. Such any stage of any proceeding or investigation before it. Such
sworn statements may be taken before any person having sworn statements may be taken before any person having
power to administer oaths. power to administer oaths.
The Commission is authorized to require any importer,

grower, producer, manufacturer or seller to file with the
Commission a statement, under oath, giving his selling prices
in the Philippines of any article imported, grown, produced,
fabricated or manufactured by him.
SEC. 1707. Rules and Regulations of the Commission. SEC 511 Rules and Regulations of the Commission. En toto
The Commission shall adopt and promulgate such rules and The Commission shall adopt and promulgate such rules and
regulations as may be necessary to carry out the provisions of regulations as may be necessary to carry out the provisions of
this ACT. this Code.
CHAPTER 2. FLEXIBLE TARIFF
SEC. 1708. Flexible Clause. SEC 401 Flexible Clause. En toto
In the interest of national economy, general welfare and/or a. In the interest of national economy, general welfare
national security, and subject to the limitations herein and/or national security, and subject to the limitations herein
prescribed, the President, upon recommendation of the prescribed, the President, upon recommendation of the
National Economic and Development Authority (hereinafter National Economic and Development Authority (hereinafter
referred to as NEDA), is hereby empowered: (1) to increase, referred to as NEDA), is hereby empowered: (1) to increase,
reduce or remove existing protective rates of import duty reduce or remove existing protective rates of import duty
(including any necessary change in classification). The (including any necessary change in classification). The existing
existing rates may be increased or decreased to any level, in rates may be increased or decreased to any level, in one or
one or several stages but in no case shall the increased rate several stages but in no case shall the increased rate of import
of import duty be higher than a maximum of one hundred duty be higher than a maximum of one hundred (100) per cent
(100) percent ad valorem; (2) to establish import quota or to ad valorem; (2) to establish import quota or to ban imports of
ban imports of any commodity, as may be necessary; and (3) any commodity, as may be necessary; and (3) to impose an
to impose an additional duty on all imports not exceeding ten additional duty on all imports not exceeding ten (10) per cent
(10) percent ad valorem whenever necessary: Provided : That ad valorem whenever necessary: Provided : That upon periodic
upon periodic investigations by the Tariff Commission and investigations by the Tariff Commission and recommendation
recommendation of the NEDA, the President may cause a of the NEDA, the President may cause a gradual reduction of
231
gradual reduction of protection levels granted in Section 1711 protection levels granted in Section One Hundred and Four of
of this ACT, including those subsequently granted pursuant to this Code, including those subsequently granted pursuant to
this section. this section.
Before any recommendation is submitted to the President by b. Before any recommendation is submitted to the
the NEDA pursuant to the provisions of this section, except in President by the NEDA pursuant to the provisions of this
the imposition of an additional duty not exceeding ten (10) per section, except in the imposition of an additional duty not
cent ad valorem, the Commission shall conduct an exceeding ten (10) per cent ad valorem, the Commission shall
investigation in the course of which they shall hold public conduct an investigation in the course of which they shall hold
hearings wherein interested parties shall be afforded public hearings wherein interested p arties shall be afforded
reasonable opportunity to be present, produce evidence and reasonable opportunity to be present, produce evidence and to
to be heard. The Commission shall also hear the views and be heard. The Commission shall also hear the views and
recommendations of any government office, agency or recommendations of any government office, agency or
instrumentality concerned. The Commission shall submit their instrumentality concerned. The Commission shall submit their
findings and recommendations to the NEDA within thirty (30) findings and recommendations to the NEDA within thirty (30)
days after the termination of the public hearings. days after the termination of the public hearings.
The power of the President to increase or decrease rates of c. The power of the President to increase or decrease
import duty within the limits fixed in subsection "a" shall rates of import duty within the limits fixed in subsection "a" shall
include the authority to modify the form of duty. In modifying include the authority to modify the form of duty. In modifying
the form of duty, the corresponding ad valorem or specific the form of duty, the corresponding ad valorem or specific
equivalents of the duty with respect to imports from the equivalents of the duty with respect to imports from the
principal competing foreign country for the most recent principal competing foreign country for the most recent
representative period shall be used as bases. representative period shall be used as bases.
The Commissioner of Customs shall regularly furnish the d. The Commissioner of Customs shall regularly
Commission a copy of all customs import entries as filed in furnish the Commission a copy of all customs import entries as
the Bureau of Customs. The Commission or its duly filed in t he Bureau o f Customs. The Commission or its duly
authorized representatives shall have access to, and the right authorized representatives shall have access to, and the right
to copy all liquidated customs import entries and other to copy all liquidated customs import entries and other
documents appended thereto as finally filed in the documents appended thereto as finally filed in the Commission
Commission on Audit. on Audit.
The NEDA shall promulgate rules and regulations necessary e. The NEDA shall promulgate rules and regulations
to carry out the provisions of this section. necessary to carry out the provisions of this section.
Any Order issued by the President pursuant to the provisions f. Any Order issued by the President pursuant to the
of this section shall take effect thirty (30) days after provisions of this section shall take effect thirty (30) days after
promulgation, except in the, imposition of additional duty not promulgation, except in the , imposition of additional duty not
exceeding ten (10) per cent ad valorem which shall take effect exceeding ten (10) per cent ad valorem which shall take effect
232
at the discretion of the President. at the discretion of the President.
SEC. 1709. Promotion of Foreign Trade. SEC 402 Promotion of Foreign Trade. Minor amendment
For the purpose of expanding foreign markets for Philippine a. For the purpose of expanding foreign markets for
products as a means of assistance in the economic Philippine products as a means of assistance in the economic
development of the country, in overcoming domestic development of the country, in overcoming domestic
unemployment, in increasing the purchasing power of the unemployment, in increasing the purchasing power of the
Philippine peso, and in establishing and maintaining better Philippine peso, and in establishing and maintaining better
relations between the Philippines and other countries, the relations between the Philippines and other countries, the
President, is authorized from time to time: President, is authorized from time to time:
To enter into trade agreements with foreign governments or (1) To enter into trade agreements with foreign
instrumentalities thereof; and governments or instrumentalities thereof; and
To modify import duties (including any necessary change in (2) To modify import duties (including any necessary
classification) and other import restrictions, as are required or change in classification) and other import restrictions, as are
appropriate to carry out and promote foreign trade with other required or appropriate to carry out and promote foreign trade
countries: Provided, however, That in modifying import duties with other countries: Provided, however, That in modifying
or fixing import quota the requirements prescribed in import duties or fixing import quota the requirements
subsection "a" of Section 1708 shall be observed: Provided, prescribed in subsection "a" of Section 401 shall be observed:
further, That any modification of import duties and any fixing Provided, further, That any modification of import duties and
of import quotas made pursuant to the agreement on ASEAN any fixing of import quotas made pursuant to the agreement on
Preferential Trading Arrangements ratified on August 1, 1977 ASEAN Preferential Trading Arrangements ratified on August
shall not be subject to the limitations of aforesaid section "a" 1, 1977 shall not be subject to the limitations of aforesaid
of Section 1708. section "a" of Section 401.
The duties and other import restrictions as modified in b. The duties and other import restrictions as modified
subsection "a" above, shall apply to articles which are the in subsection "a" above, shall apply to articles which are the
growth, produce or manufacture of the specific country, growth, produce or manufacture of the specific country,
whether imported directly or indirectly, with which the whether imported directly or indirectly, with which the
Philippines has entered into a trade agreement: Provided, Philippines has entered into a trade agreement: Provided, That
That the President may suspend the application of any the President may suspend the application of any concession
concession to articles which are the growth, produce or to articles which are the growth, produce or manufacture of
manufacture of such country because of acts (including the such country because of acts (including the operations of
operations of international cartels) or policies which in his international cartels) or policies which in his opinion tend to
opinion tend to defeat the purposes set in this section; and the defeat the purposes set in this section; and the duties and
duties and other import restrictions as negotiated shall be in other import restrictions as negotiated shall be in force and
force and effect from and after such time as specified in the effect from and after such time as specified in the Order.
Order.
c. Nothing in this section shall be construed to give
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Nothing in this section shall be construed to give any authority any authority to cancel or reduce in any manner any of the
to cancel or reduce in any manner any of the indebtedness of indebtedness of any foreign country t o t he Philippines or any
any foreign country to the Philippines or any claim of the claim of the Philippines against any foreign country.
Philippines against any foreign country.
d. Before any trade agreement is concluded with any
Before any trade agreement is concluded with any foreign foreign government or instrumentality thereof, reasonable
government or instrumentality thereof, reasonable public public notice of the intention to negotiate an agreement with
notice of the intention to negotiate an agreement with such such government or instrumentality shall be given in order that
government or instrumentality shall be given in order that any any interested person may have an opportunity to present his
interested person may have an opportunity to present his views to the Commission which shall seek information and
views to the Commission which shall seek information and advice from the Department of Agriculture, Department of
advice from the Department of Agriculture, Department of Natural Resources, Department of Trade and Industry,
ENVIRONMENT AND Natural Resources, Department of Department of Tourism, the Central Bank of the Philippines,
Trade and Industry, Department of Tourism, the BANGKO the Department of Foreign Affairs, the Board of Investments
SENTRAL NG PILIPINAS, the Department of Foreign Affairs, and from such other sources as it may deem appropriate.
the Board of Investments and from such other sources as it
may deem appropriate. e. (1) In advising the President, as a result of the
trade agreement entered into, the Commission shall determine
whether the domestic industry has suffered or is being
threatened with injury and whether the wholesale prices at
(1) In advising the President, as a result of the trade which the domestic products are sold are reasonable, taking
agreement entered into, the Commission shall determine into account the cost of raw materials, labor, overhead, a fair
whether the domestic industry has suffered or is being return on investment, and the overall efficiency of the industry.
threatened with injury and whether the wholesale prices at
which the domestic products are sold are reasonable, taking (2) The NEDA shall evaluate the report of the
into account the cost of raw materials, labor, overhead, a fair Commission and submit recommendations to the President.
return on investment, and the overall efficiency of the industry.
(3) Upon receipt of the report of the findings and
The NEDA shall evaluate the report of the Commission and recommendations of the NEDA, the President may prescribe
submit recommendations to the President. such adjustments in the rates of import duties, withdraw,
modify or suspend, in whole or in part, any concession under
Upon receipt of the report of the findings and any trade agreement, establish import quota, or institute such
recommendations of the NEDA, the President may prescribe other import restrictions as the NEDA recommends to be
such adjustments in the rates of import duties, withdraw, necessary in order to fully protect domestic industry and the
modify or suspend, in whole or in part, any concession under consumers, subject to the condition that the wholesale prices
any trade agreement, establish import quota, or institute such of the domestic products concerned shall be reduced to, or
other import restrictions as the NEDA recommends to be maintained at, the level recommended by the NEDA unless for
necessary in order to fully protect domestic industry and the good cause shown, an increase thereof, as recommended by
consumers, subject to the condition that the wholesale prices the NEDA, is authorized by the President. Should increases be
of the domestic products concerned shall be reduced to, or made without such authority, the NEDA shall immediately
maintained at, the level recommended by the NEDA unless notify the President, who shall allow the importation of
234
for good cause shown, an increase thereof, as recommended competing products in such quantities as to protect the public
by the NEDA, is authorized by the President. Should from the unauthorized increase in wholesale prices.
increases be made without such authority, the NEDA shall
immediately notify the President, who shall allow the f. This section shall not prevent the effectivity of any
importation of competing products in such quantities as to executive agreement or any future preferential trade
protect the public from the unauthorized increase in wholesale agreement with any foreign country.
prices.
g. The NEDA and the Commission are authorized to
This section shall not prevent the effectivity of any executive promulgate such reasonable procedure, rules and regulations
agreement or any future preferential trade agreement with any as they may deem necessary to execute their respective
foreign country. functions under this section.
The NEDA and the Commission are authorized to promulgate

such reasonable procedure, rules and regulations as they
may deem necessary to execute their respective functions
under this section.
CHAPTER 3. TARIFF NOMENCLATURE AND RATE OF

DUTY
SEC. 1710. General Rules for the Interpretation (GRI). SEC 103 General Rules for the Interpretation of the En toto
Harmonized System.
THE classification of goods and its TARIFF nomenclature AS
PROVIDED PURSUANT TO THIS ACT shall be governed by Classification of goods in the Nomenclature shall be governed
the following principles: by the following principles:
1. The titles of Sections, Chapters and Sub-Chapters 1. The titles of Sections, Chapters and Sub Chapters
are provided for ease of reference only; for legal purposes, are provided for ease of reference only; for legal purposes,
classification shall be determined according to the terms of classification shall be determined according to the terms of the
the headings and any relative Section or Chapter Notes and, headings and any relative Section or Chapter Notes and,
provided such headings or Notes do not otherwise require, provided such headings or Notes do not otherwise require,
according to the following provisions. according to the following provisions.
2. (a) Any reference in a heading to an article 2. (a) Any reference in a heading to an article
shall be taken to include a reference to that article incomplete shall be taken to include a reference to that article incomplete
or unfinished, provided that, as presented, the incomplete or or unfinished, provided that, as presented, the incomplete or
unfinished article has the essential character of the complete unfinished article has the essential character of the complete or
or finished article. It shall also be taken to include a reference finished article. It shall also be taken to include a reference to
to that article complete or finished (or falling to be classified as that article complete or finished (or falling to be classified as
complete or finished by virtue of this Rule), presented complete or finished by virtue of this Rule), presented
235
unassembled or disassembled. unassembled or disassembled.
(b) Any reference in a heading to a material or (b) Any reference in a heading to a material or
substance shall be taken to include a reference to mixtures or substance shall be taken to include a reference to mixtures or
combinations of that material or substance with other combinations of that material or substance with other materials
materials or substances. Any reference to goods of a given or substances. Any reference to goods of a given material or
material or substance shall be taken to include a reference to substance shall be taken to include a reference to goods
goods consisting wholly or partly of such material or consisting wholly or partly of such material or substance. The
substance. The classification of goods consisting of more than classification of goods consisting of more than one material or
one material or substance shall be according to the principles substance shall be according to the principles of Rule 3.
of Rule 3.
3. When by application of Rule 2 (b) or for any other
When by application of Rule 2 (b) or for any other reason, reason, goods are, prima facie, classifiable under two or more
goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
headings, classification shall be effected as follows:
a. The heading which provides the most specific

description shall be preferred to headings providing a more a. The heading which provides the most specific
general description. However, when two or more headings description shall be preferred to headings providing a more
each refer to part only of the materials or substances general description. However, when two or more headings
contained in mixed or composite goods or to part only of the each refer to part only of the materials or substances contained
items in a set put up for retail sale, those headings are to be in mixed or composite goods or to part only of the items in a
regarded as equally specific in relation to those goods, even if set put up for retail sale, those headings are to be regarded as
one of them gives a more complete or precise description of equally specific in relation to those goods, even if one of them
the goods. gives a more complete or precise description of the goods.
b. Mixtures, composite goods consisting of different b. Mixtures, composite goods consisting of different
materials or made up of different components, and goods put materials or made up of different components, and goods put
up in sets for retail sale, which cannot be classified by up in sets for retail sale, which cannot be classified by
reference to 3(a), shall be classified as if they consisted of the reference to 3(a), shall be classified as if they consisted of the
material or component which gives them their essential material or component which gives them their essential
character, insofar as this criterion is applicable. character, insofar as this criterion is applicable.
c. When goods cannot be classified by reference to c. When goods cannot be classified by reference to
3(a) or 3(b), they shall be classified under the heading which 3(a) or 3(b), they shall be classified under the heading which
occurs last in numerical order among those which equally occurs last in numerical order among those which equally merit
merit consideration. consideration.
Goods which cannot be classified in accordance with the 4. Goods which cannot be classified in accordance
above Rules shall be classified under the heading appropriate with the above Rules shall be classified under the heading
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to the goods to which they are most akin. appropriate to the goods to which they are most akin.
In addition to the foregoing provisions, the following Rules

shall apply in respect of the goods referred to therein:
5. In addition to the foregoing provisions, the following
Camera cases, musical instrument cases, gun cases, drawing Rules shall apply in respect of the goods referred to therein:
instrument cases, necklace cases and similar containers,
specially shaped or fitted to contain a specific article or set of
articles, suitable for long-term use and presented with the
articles for which they are intended, shall be classified with a. Camera cases, musical instrument cases, gun
such articles when of a kind normally sold therewith. The Rule cases, drawing instrument cases, necklace cases and similar
does not, however, apply to containers which give the whole containers, specially shaped or fitted to contain a specific
its essential character; article or set of articles, suitable for long term use and
presented with the articles for which they are intended, shall be
Subject to the provisions of the Rule 5 (a) above, packing classified with such articles when of a kind normally sold
materials and packing containers presented with the goods therewith. The Rule does not, however, apply to containers
therein shall be classified with the goods if they are of a kind which give the whole its essential character;
normally used for packing such goods. However, this
provision does not apply when such packing materials or b. Subject to the provisions of the Rule 5 (a) above,
packing containers are clearly suitable for repetitive use. packing materials and packing containers presented with the
goods therein shall be classified with the goods if they are of a
For legal purposes, the classification of goods in the kind normally used for packing such goods. However, this
subheadings of a heading shall be determined according to provision does not apply when such packing materials or
the terms of those subheadings and any related Subheading packing containers are clearly suitable for repetitive use.
Notes and, mutatis mutandis, to the above Rules, on the
understanding that only subheadings at the same level are 6. For legal purposes, the classification of goods in the
comparable. For the purposes of the Rule the relative Section subheadings of a heading shall be determined according to the
and Chapter Notes also apply, unless the context otherwise terms of those subheadings and any related Subheading Notes
requires. and, mutatis mutandis, to the above Rules, on the
understanding that only subheadings at the same level are
comparable. For the purposes of the Rule the relative Section
and Chapter Notes also apply, unless the context otherwise
requires
SEC. 1711. TARIFF NOMENCLATURE AND Rates of SEC 104 Rates of Import Duty. Major amendment. A new provision
Import Duty. requiring the President to issue
All Tariff Sections, Chapters, headings and subheadings and Executive Order prescribing theTariff
THE PRESIDENT SHALL ISSUE OF AN EXECUTIVE the rates of import duty under Section 104 of Presidential Sections, Chapters, headings and
ORDER PRESCRIBING OR AMENDING the Tariff Sections, Decree No. 34 and all subsequent amendment issues under subheadings and the rate of export
Chapters, headings and subheadings and the rate of import Executive Orders and Presidential Decrees are hereby duty based on HS, AHTN and other
duty AS ORIGINALLY PROVIDED UNDER PRESIDENTIAL International Agreement. This
237
DECREE NO.1464, OTHERWISE KNOWN AS THE TARIFF adopted and form part of this Code. provision will recognize the existing
AND CUSTOMS CODE OF THE PHILIPPINES, AS practice will make it easier to amend
AMENDED, AND BASED ON THE HARMONIZED SYSTEM, and publish changes in the tariff
THE AHTN AND OTHER INTERNATIONAL AGREEMENT, nomenclature and duty rates. The old
AND CONSISTENT WITH SECTION 1708 OF THIS ACT. There shall be levied, collected, and paid upon all imported provision on the periodic investigation
articles the rates of duty indicated in the Section under this of the Tariff Commission is deleted
Section except as otherwise specifically provided for in this because this is already provided in the
Code: Provided, that, the maximum rate shall not exceed one Flexible Tariff clause (CTMA Sec.
hundred per cent ad valorem. 1708). The provision old on
discriminatory duties is deleted
The rates of duty herein provided or subsequently fixed
because this is inconsistent with WTO
pursuant to Section four hundred one of this Code shall be
commitments and already covered by
subject to periodic investigation by the Tariff Commission and
the provisions on trade remedy
may be revised by the President upon recommendation of the
measures (dumping, safeguards and
National Economic and Development Authority.
countervailing duties)
The rates of duty herein provided shall apply to all products
whether imported directly or indirectly of all foreign countries,
which do not discriminate against Philippine export products.
An additional 100% across the board duty shall be levied on
the products of any foreign country which discriminates against
Philippine export products.
The tariff Sections, Chapters, headings and subheadings and

the rate of import duty under Section One Hundred Four of this
Code shall be as follows:
SEC. 1712. TARIFF NOMENCLATURE AND RATES OF Major amendment A new provision
Export Duty . requiring the President to issue
Executive Order prescribing theTariff
THE PRESIDENT SHALL ISSUE OF AN EXECUTIVE Sections, Chapters, headings and
ORDER PRESCRIBING the Tariff Sections, Chapters, subheadings and the rate of export
headings and subheadings and the rate of EXPORT duty duty based on HS, AHTN and other
BASED ON THE HARMONIZED SYSTEM, THE AHTN AND International Agreement. This
OTHER INTERNATIONAL AGREEMENT, AND provision will recognize the existing
CONSISTENT WITH SECTION 1608 OF THIS ACT. practice will make it easier to amend
and publish changes in the tariff
The President, upon recommendation of the National nomenclature and duty rates. The
Economic and Development Authority, may subject any of the listing of tariff heading and
EXPORT products to ANY RATE OF EXPORT DUTY. In the corresponding export duty rates is
exercise of this authority the President shall take into account: deleted as this will be the subject
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(1) the policy of encouraging domestic processing; (2) the matter of the EO to be issued by the
prevailing prices of export products in the world market; (3) President.
the advantages obtained by export products from international
agreements to which the Philippines is a signatory; (4) the
preferential treatment granted to our export products by
foreign governments; and (5) the need to meet domestic
consumption requirements.
SEC. 1713. Rules and Regulations. SEC 519 Rules and Regulations. En toto
The Commissioner of Customs shall promulgate the rules and The Commissioner of Customs shall promulgate the rules and
regulations necessary for the implementation of this Chapter, regulations necessary for the implementation of this Title,
subject to the approval of the Secretary of Finance. subject to the approval of the Secretary of Finance.
TITLE 18. CONGRESSIONAL OVERSIGHT COMMITTEE New provision
SEC. 1800. CONGRESSIONAL OVERSIGHT COMMITTEE. New Provision. Similar to the

Congressional Oversight Committee of
A CONGRESSIONAL OVERSIGHT COMMITTEE, RA 8424 Tax Reform Act of 1997.
HEREINAFTER REFERRED TO AS THE COMMITTEE, IS
HEREBY CONSTITUTED IN ACCORDANCE WITH THE
PROVISIONS OF THIS ACT. THE COMMITTEE SHALL BE
COMPOSED OF THE CHAIRMEN OF THE COMMITTEE ON
WAYS AND MEANS OF THE SENATE AND HOUSE
REPRESENTATIVES AND FOUR (4) ADDITIONAL
MEMBERS FROM EACH HOUSE, TO BE DESIGNATED BY
THE SPEAKER OF THE HOUSE OF REPRESENTATIVES
AND THE SENATE PRESIDENT, RESPECTIVELY.
THE COMMITTEE SHALL, AMONG OTHERS, IN AID OF

LEGISLATION:
(1) MONITOR AND ENSURE THE PROPER

IMPLEMENTATION OF CTMA;
(2) REVIEW THE COLLECTION PERFORMANCE OF THE

BUREAU OF CUSTOMS; AND
(3) REVIEW THE IMPLEMENTATION OF THE PROGRAMS
239
OF THE BUREAU OF CUSTOMS.
IN FURTHERANCE OF THE HEREINABOVE CITED

OBJECTIVES, THE COMMITTEE IS EMPOWERED TO
REQUIRE OF THE BUREAU OF CUSTOMS THE
SUBMISSION OF ALL PERTINENT INFORMATION,
INCLUDING BUT NOT LIMITED TO: INDUSTRY AUDITS;
COLLECTION PERFORMANCE DATA; STATUS REPORT
ON CRIMINAL ACTIONS INITIATED AGAINST PERSONS.
TITLE 19. FINAL PROVISIONS
SEC. 1900. Repealing Clause. SEC 3701 Repealing Clause. - Sections 207, 301 Note: The repealing clause need not
(Subsections e, f, & k), 302 (Subsection -b), 513, 1024, 1108, identify the specific provisions of the
Presidential Decree No. 1464, otherwise known as the Tariff 1109, 1208, 2530 (Subsection 1) and 3705 of Republic Act TCCP (PD 1464) that are to be
of Customs Code of the Philippines, as amended, is hereby Numbered Nineteen Hundred and Thirty Seven, as amended repealed. A specific reference to that
expressly repealed. All other laws, acts, presidential decrees, by Presidential Decree Numbered Thirty Four are hereby PD appears sufficient. What the staff
executive orders, rules and regulations or part therof, in repealed. should provide are the rationale for the
conflict or inconsistent with the provisions of this Act, are non-inclusion of the sections listed
hereby expressly repealed. All Acts, Presidential Decrees, Executive Orders. Rules and here as deleted.
Regulations or parts thereof, in conflict with the provisions of
this Code, are hereby likewise repealed.
SEC. 1901. Transitory Provisions. SEC 3702 Transitory Provisions. - All suits, proceedings or
prosecutions whether civil or criminal, for causes arising or acts
All suits, proceedings or prosecutions whether civil or done or committed prior to the effectivity of this Code, shall be
criminal, for causes arising or acts done or committed prior to commenced and/or prosecuted within the same time in the
the effectivity of this Act, shall be commenced and/or same manner and with the same effect as if this Code had not
prosecuted within the same time in the same manner and with been enacted and all rights acquired, offences committed and
the same effect as if this Act had not been enacted and all penalties forfeitures or liabilities waived prior to the said
rights acquired, offences committed and penalties forfeitures effectivity shall not be affected thereby.
or liabilities waived prior to the said effectivity shall not be
affected thereby. Sections 602 (subsections d, e, f) 801 to 831, 901 to 905, 910
to 913, 2507 to 2512, 2529 (except subsection h) and 3301
(except subsection I to s) of Republic Act Numbered Nineteen
Hundred and Thirty Seven as amended by Presidential Decree
Numbered Thirty Four are hereby deleted and the same, are
incorporated in Republic Act Numbered Fifty One Hundred and
Seventy Three, as amended, for enforcement by the Philippine
Coast Guard.
240
Sections 602 (subsection i), 1209, 1212, 1213, 2701, to 2703,
2801, 2802, 2901 to 2908, 3001 to 3005, 3101 to 3109, 3201
to 3203 and 3507 to 3509 of Republic Act Numbered Nineteen
Hundred and Thirty Seven as amended by Presidential Decree
Numbered Thirty Four are hereby deleted and the same are
incorporated in Presidential Decree Numbered Eight Hundred
Fifty Seven, for enforcement by the Philippine Ports Authority.
SEC. 1902. Separability Clause. SEC 3703 Separability Clause. - If any part or parts of this
Code should for any reason be held to be invalid or
If any part or parts of this Act should for any reason be held to unconstitutional, the remaining parts thereof shall remain in full
be invalid or unconstitutional, the remaining parts thereof shall force and effect.
remain in full force and effect
SEC. 1903. Effectivity Date. SEC 3704 Effectivity Date. - This Code shall take effect
immediately.
This Act shall take effect fifteen (15) days following its
complete publication in the Official Gazette or in any two (2)
newspapers of general circulation, whichever comes earlier.
Approved,
Sec. 512 Deleted
Sec. 516 Deleted
Sec. 518 Deleted
Sec. 1010 Deleted
Sec. 1025 Deleted
Sec. 1107 Deleted
Sec. 1211 Deleted
Sec. 1301 Deleted
Sec. 1305 Deleted
Sec. 1408 Deleted
241
Sec. 1409 Deleted
Sec. 1503 Deleted
Sec. 1909 Deleted
Sec. 2005 Deleted
Sec. 2315 Deleted
Sec. 2317 Deleted
Sec. 2533 Deleted
Sec. 2604 Deleted
Sec. 3302 Deleted
Sec. 3505 Deleted
Sec. 3516 Deleted
242

Cmta Provision

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CTMA-TCCP-RKC CORRELATION MATRIX AND RATIONALE OF AMENDMENTS

CTMA Provision TCCP Provision RKC/ASB Provision Rationale/ Remarks

CHAPTER 1. SHORT TITLE

Developing and implementing programs aimed at

Adopting customs policies, rules, and procedures that are

Establishing a regime of informed compliance for customs

Providing parties aggrieved by customs action and/or decision

Utilizing modern techniques in customs administration such as

Goods declaration means a statement made in the manner

Importation means the act of bringing in of articles from a

International Freight Forwarder refers to persons responsible

Non-Vessel Operating Common Carrier (NOVCC) means a

"Port of Entry" is a domestic port open to both foreign and

Release of goods means the action by Customs to permit

Refund means the return, in whole or in part, of duties and

Remission means the reduction or dimunition, in whole or in

Security REFERS TO ANY FORM OF GUARANTY, E.G.,

"Smuggling" is an act of any person who shall fraudulently

"Taxes" includes all taxes, fees and charges imposed by THE

Transit means the customs procedure under which goods

Transshipment means the customs procedure under which

At the request of the person concerned

Where Customs offices are located at a

3.4. Transitional Standard

At common border crossings, the Customs

3.5. Transitional Standard

Where the Customs intend to establish a

BEFORE FILING OF THE GOODS DECLARATION, THE 3.9. Standard

GOODS DECLARATION FORMAT AND CONTENTS The Goods declaration

(b) Documents supporting the Goods

In support of the Goods declaration the

Where certain supporting documents

3.18. Transitional Standard

The Customs shall permit the lodgement

The Customs shall not require a

The Customs shall permit the declarant to

RELEASE OF THE GOODS ON THE PROVISION OF THE

CLEARANCE OF THE GOODS AT THE DECLARANT'S

ALLOWING A SINGLE GOODS DECLARATION FOR ALL

USE OF THE AUTHORIZED PERSONS COMMERCIAL

ALLOWING THE LODGEMENT OF GOODS DECLARATION

THIS SECTION SHALL BE IMPLEMENTED WITHIN FIVE (5)

(c) Sampling by the Customs

Samples shall be taken only where

exported, to the duties and taxes that

or exported in that state.

IN CASE OF DEFERRED PAYMENT, CUSTOMS SHALL 4.5. Standard

National legislation shall specify the

National legislation shall determine the

When national legislation specifies that the

National legislation shall specify the period

National legislation shall determine the

When the duties and taxes have been

B. DEFERRED PAYMENT OF DUTIES

Where national legislation provides for the

Deferred payment shall be allowed without

The factors on which the assessment of

The rates of duties and taxes shall be set

National legislation shall specify the point

National legislation shall specify the

The rates of duties and taxes shall be set

National legislation shall specify the point

National legislation shall specify the

Specific Annex D Chapter 1