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DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
ACCURATE AND FAITHFUL ACCOUNT OF THE PRICES PAID OR PAYABLE FOR THE GOODS,
AND OTHERADJUSTMENTS (cost of transport, FREIGHT) TO
THE PRICE ACTUALLY PAID OR PAYABLE FOR THE GOODS AND THE ADJUSTMENTS AND
NOTHING HAS BEEN OMITTED THEREFROM OR CONCEALED WHEREBY THE
GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES MIGHT BE DEFRAUDED OF ANY
PART OF THE DUTIES AND TAXES LAWFULLY DUE ON THE GOODS.
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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
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(b.) To the best of the declarant’s information and belief, all the invoices and bills
of lading or airway bills relating to the goods are the only ones in existence
relating to the importation in question, and that these documents are in the same
state as when they were received by the declarant, and the declaration thereon
are in all respects genuine and true.
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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
(a) The declared value fails to disclose in full the price actually paid or payable or any dutiable value
adjustment to the price actually paid or payable;
(b) When an incorrect valuation method is used or the valuation rules are not properly observed,
resulting in a discrepancy in duty and tax to be paid between what is legally determined as the
correct value against the declared value.
No surcharge if below 10% difference or if value is rejected as a result of an official ruling or decision
under the customs dispute settlement process involving difficult or highly technical question relating to
the question relating to the application of customs valuation rules.
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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
NOTE: WHAT IS PENALIZED IS THE ACT OF NOT DECLARING THE FULL PRICE AND ALL THE
ADJUSTMENTS IN THE TRANSACTION. THE AMOUNT UNDERVALUED IS IMMATERIAL.
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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
1. MISDECLARATION DAF-DAD = If there are altered statements or DTAF-DTAD= Difference x If more than 30% there
DIFFERENCE/DAF less documents presented or false 250% or TDTD x 250% is prima facie evidence
than 10% statements or information of fraud, for WSD
knowingly made.
1. UNDERVALUATION DAF-DAD = If there are altered statements or DTAF-DTAD= Difference x If more than 30% there
DIFFERENCE/DAF less documents presented or false 250% or TDTD x 250% is prima facie evidence
than 10% statements or information of fraud, for WSD
Highly technical knowingly made.
1st step is to check if there is no 2nd step is to look for false 3rd step. If the DAF-
surcharge by looking for the statements submitted or false DAD/DAF is more than
difference between the duty as statements and information 10% and 500% is not
found and the duty as declared KNOWINLGY MADE. The penalty of applicable, get DTAF-
divided by duty as found. 500% is lumped with WSD and DTAD/DTAF and multiply
FILING OF CRIMINAL CASES. 500% with 250%
cannot be implemented without
WSD and CRIMINAL CASES?
1. 500% surcharge is lumped with WSD and application of fines and penalties.
Who will pay a surcharge if the goods will be seized and fines and penalties
are imposed?
2. The surcharge for shipments that were already released and eventually audited
by PCAG is multiplied to the difference between what was legally determined
and what was declared. However, shipments that are imposed with surcharge at
the assessment level are multiplied NOT WITH THE DIFFERENCE
BETWEEN WHAT WAS DECLARED AND WHAT WAS FOUND OUT BUT
WITH THE TOTAL DUTIES AND TAX DUE.
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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
The problem lies in the interpretation of the phrase “total duties and tax due”. The
surcharge to be imposed by PCAG after audit and for which the goods were already
released from customs is only six (6) times and 125% of the REVENUE LOSS, with
negligence or fraud respectively. The surcharge of 250% and 500% under Section 1400
under the CMTA to be imposed for misdeclared, misclassified and undervaluation is
interpreted by some as to be multiplied with the final duties and tax due, taken from the
controversial phrase “TOTAL DUTIES AND TAX DUE”.
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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
The problem with the previous issue on the imposition of surcharge is very
common in the airports because the freight is very expensive. Hence, there
is really a need to reconcile Section 1400 of the CMTA with the other
provisions of the CMTA such as Sections 1005 and Section 108.
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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
RECOMMENDATIONS:
1. The remedy is for the transacting public to lobby for the suspension of the application of
Section 1400
2. Another option is to lobby from the Commissioner of Customs, who has the exclusive and
original jurisdiction to interpret the provisions of this Act subject to the review by the
Secretary of Finance to reconcile all conflicting provisions of the CMTA through the
Implementing Rules and Regulations or a Customs Administrative Order as provided for
under Section 201, paragraph 1 of the CMTA, to wit:
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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
1. 500% surcharge is lumped with WSD and application of fines and penalties.
Who will pay a surcharge if the goods will be seized and fines and penalties
are imposed?
2. The surcharge for shipments that were already released and eventually audited
by PCAG is multiplied to the difference between what was legally determined
and what was declared. However, shipments that are imposed with surcharge at
the assessment level are multiplied NOT WITH THE DIFFERENCE
BETWEEN WHAT WAS DECLARED AND WHAT WAS FOUND OUT BUT
WITH THE TOTAL DUTIES AND TAX DUE.
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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
OPTIONS RESORTED:
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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
SECTION 1402:
Failure or refusal of Party to give evidence or submit documents for
assessment, when the owner, importer or consignee of any imported goods
or the agent of either, fails or refuses, upon lawful demand in writing by any
customs officer to appear, lawfully depose, or submit to examination or to
answer any material question or refuses to produce record, accounts or
invoices in possession pertaining to the value, classification or disposition of
the goods in question and deemed material in assessing the same, the District
Collector shall assess a surcharge equivalent of 20% of the Dutiable Value
of the goods.
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THANK YOU!
- SEGUNDO SIGMUNDFREUD Z. BARTE, Jr. 19