Title VI

Customs Transit and Transshipment

Chapter 1
Customs Transit1

Section 600. Customs Transit in the Customs Territory.2 Customs

transit within the customs territory shall be allowed for goods except those
intended for consumption, to be transported as follows:

(a) From port of entry to another port of entry as exit point for outright
exportation;

(b) From port of entry to another port of entry or inland customs office;

(c) From inland customs office to a port of entry as exit point for
outright exportation; and

(d) From one port of entry or inland customs office to another port of
entry or inland customs office.

A transit permit is required for goods transported under customs

transit. However, transfer of goods in customs transit from one means of
transport to another shall be allowed; Provided, That any customs seal or
fastening is not broken or tampered.

The party responsible for the compliance of the obligations imposed on

customs transit shall ensure that the goods are presented intact and in due
course at the customs office of destination. Failure to comply with the
aforementioned obligations or likewise failure to follow a prescribed itinerary
or period for delivery of the goods may immediately subject the goods to the
corresponding duties, taxes and other applicable fines, penalties, and
surcharges. (n)

Section 601. Duty and Tax3 on Goods Intended for Transit. Transit
goods admitted for storage in a customs bonded warehouse, or for outright
exportation at the port of destination or inland customs office, and goods
intended for transit covered by Republic Act No. 10668, otherwise known as

1
Transit1 refers to the customs procedure under which goods, in its original form, are transported under
customs control from one customs office to another, or to a free zone. (Sec. 102(rr), CMTA)
2
Customs Territory refers to areas in the Philippines where customs and tariff laws may be enforced.
(Sec. 102(q), CMTA)
3
Taxes refer to all taxes, fees and charges imposed under this Act and the National Internal Revenue
Code (NIRC) of 1997, as amended, and collected by the Bureau. (Sec. 102(oo), CMTA)
An Act Allowing Foreign Vessels to Transport and Co-Load Foreign Cargoes
for Domestic Transshipment and for Other Purposes, shall not be subject to
the payment of duties and taxes at the port of entry: Provided, That any
conditions and security required by the Bureau are complied with.

Goods for consumption and other goods intended for customs transit
not covered by the immediately preceding paragraph shall he subject to the
payment of duties and taxes at the port of discharge. (n)

Section 602. Carrier's4 Security.5 Carriers that transport imported

goods that shall be placed under customs transit from a port of entry to other
ports, shall post a general transportation security amounting to at least fifty
thousand pesos (50,000.00). Such security shall ensure the complete and
immediate delivery of goods to the customs officer at the port of destination
and the payment of pertinent customs charges and expenses and other transfer
costs. The amount of the security may be adjusted by the Commissioner, upon
approval of the Secretary of Finance. (n)

Chapter 2
Customs Transshipment6

Section 603. Customs Transshipment. Goods admitted for

transshipment shall not be subject to the payment of duties and taxes: Provided,
That the goods declaration for customs transshipment particularly indicates
such nature of the goods, duly supported by commercial or transport
documents or evidence as required by the Bureau.

Goods for transshipment must be exported from the Philippines within

thirty (30) days from arrival thereof. The Commissioner may allow an
extension of such period after the establishment of valid reasons. (n)

Section 604. Goods Entered for Immediate Re-exportation.7 Where

an intent of re-exportation of the goods is shown by the bill of lading, invoice,
manifest, or other satisfactory evidence, the whole or a part of a bill comprising
not less than one package may be entered for immediate re-exportation under
security. The District Collector shall designate the vessel or aircraft in which

4
Carrier refers to the person, actually transporting goods or in charge of or responsible for the operation
of the means of transport such as airlines, shipping lines, freight forwarders, cargo consolidators, non-vessel operating
common carriers and other international transport operators. (Sec. 102(j), CMTA)
5
Security refers to any form of guaranty, such as a surety bond, cash bond, standby letter of credit or
irrevocable letter of credit, which ensures the satisfaction of an obligation to the Bureau. (Sec. 102(mm), CMTA)
6
Transshipment refers to the customs procedure under which goods are transferred under customs
control from the importing means of transport to the exporting means of transport within the area of one customs office,
which is the office of both importation and exportation.(Sec. 102(ss). CMTA)
7
Re-exportation means exportation of goods which have been imported. (Sec. 102(jj), CMTA)
the goods are loaded constructively as a warehouse to facilitate the direct
transfer of the goods to the exporting vessel or aircraft.

Unless it shall appear in the bill of lading, airway bill, invoice, manifest,
or other satisfactory evidence, that goods arriving in the Philippines are
destined for transshipment, no exportation thereof will be permitted except
under entry for immediate re-exportation under sufficient security in an
amount equal to the ascertained duties, taxes and other charges.

Upon the re-exportation of the goods, and the production of proof of

landing beyond the limits of the Philippines, the security shall be released. (n)