STATUS OF

CUSTOMS MODERNIZATION AND TARIFF ACT AND

ITS IMPACT TO THE

CUSTOMS BROKER PROFESSION

By: ATTY. FERDINAND A. NAGUE

SUMMARY
INTRODUCTION BACKGROUND STATUS OF THE CMTA HIGHLIGHTS & SPECIAL FEATURES IMPACT TO THE CUSTOMS BROKER PROF Q&A

CONGRESSIONAL UNDERTAKINGS
Consolidated Bill filed by Reps. Rodriguez Jr., Rodriguez, Mandanas, Umali & Farinas. House Ways & Means Committee Sub Committee on Customs (??) conducted hearings to solicit comments from stakeholders. Comments submitted by private sector and government agencies incorporated in the final version DID. House of Representatives already finished deliberating and its already

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1

Title 1 Preliminary Provision

A new Chapter containing General and Common Provision which includes:

Declaration of State Policy General Customs Principles based on the Gen. Annex of RKC and some provision of the TCCP Definition of Terms

Free, regulated & prohibited importation and exportation defined

HIGHLIGHTS OF CMTA
1

Title 1 Preliminary Provision

New provisions:
Declarant Rights and Responsibilities of the Declarant Lodgement and Registration Special Procedures for Authorized Persons Examination of the Goods Penalties for Errors in Goods Declaration Release of Goods Abatement of Duties and Taxes Disposition of Abandoned Goods Deferred Payment for Government Importation Refund of Duties and Taxes

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1

Title 1 Preliminary Provision

New provisions:
Security Competent Customs Offices Customs Control Application of Information and Communication Technology Relationship Between Customs and Third Parties Information of General Application Information of A Specific Nature Decisions and Rulings Right of Appeal, Forms and Ground Types Of Importation Free and Regulated Importations and Exportations Prohibited Importations and Exportations

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2 Title 2 - Bureau of Customs

Number of Deputy Commissioners open Trade Facilitation added as new function A provision on the De Minimis value 3 below -which no duty shall be Title 3 Customs Territory & Customs Control collected A new provision authorizing Customs to establish temporary storage prior to goods declaration

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4 Title 4 - Import Clearance & Formalities

The value requiring the filing of formal entry increased to P50 thousand FOB or FCA Sec. 403 on Goods Declaration and Sec. 406 on invoice revised to conform with the new valuation system Request for classification & valuation ruling revised The general rule on the manner of examination laid down including the

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4 Title 4 - Import Clearance & Formalities

As a general rule, presence of importer/broker is not required during inspection (General Provision) New provisions on Travellers, Passenger Baggage, Postal Mail & Relief Consignment provided (RKC Specific Annex J)
5 Title 5 Export Clearance & Formalities

New provision on Export Clearance Formalities

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6 Title 6 Customs Transit & Transshipment

Customs Transit and Transshipment defined & incorporated to conform with RKC Specific Annex E. Provision for transshipment of tobacco products incorporated
7 Title 7 Import Duty & Tax

Provisions on Dumping, Safeguard & Countervailing incorporated with reference to specific laws

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8 Title 8 Tax & Duty Deferment, Preference & Exemption

Amount of guarantee/security for some conditionally-free imports set at 100% of duties & taxes in conformity with RKC GA Standards 5.4 & 5.6 Provision on Outward Processing provided in Paragraph X of Sec. 800 Storage period rule set at 1 year except for perishable goods which is 6 months & for certain types of industries where storage period can be more than 1 year New provision on Free Zones & Stores (RKC Specific Annexes D & J)

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9 Title 9 Drawback & Refund

Prescriptive period for drawback claim provided A new provision on abatement for defective articles provided
10 Title 10 Administrative & Judicial Procedures

New provision identifying other persons who can exercise Police Authority as deputized by the Commissioner

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10 Title 10 Administrative & Judicial Procedures

Sec. 1001 - A provision

providing Customs unhampered access on Customs Zone within the jurisdiction of Port authorities allowing BOC to exercise Police Authority within Freeport zone subject to proper coordination with the governing authority of the zone

Sec 1005 Customs may force entry into land or inclosure, or any warehouse store not being principally used as dwelling house

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10 Title 10 Administrative & Judicial Procedures

Sec. 1010 -- Power to inspect & visit revised to provide additional process to quash warrant Sec. 1015 -- A provision

recognizing the exclusive authority of the Collector to determine probable cause and issue warrant Allowing release of seized articles for legitimate use under cash bond or sufficient security

Sec. 1021 Redemption value on settlement set at 150% of landed

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10 Title 10 Administrative & Judicial Procedures

Sec. 1023 reworded to conform with the exclusive authority of the Collector Sec. 1024 Commissioner mandated to issue rules and regulations on seizure & forfeiture proceedings Sec. 1026 Review of Commissioner modified to specify period of appeal Sec. 1028 Supervisory Authority of Commissioner & Secretary of Finance in Certain Cases

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10 Title 10 Administrative & Judicial Procedures

Sec. 1029 Provision on Abandonment

Period to file is within 15 days from receipt of due notice Period to pay is within 15 days from receipt of assessment notice Period to claim is within 30 days after payment of duties & taxes

Provision on Compulsory Acquisition deleted Sec. 1032 Authority of Commissioner to make compromise expanded to include duties & taxes

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10 Title 10 Administrative & Judicial Procedures

New provision on Civil Remedies for collection of Duties & Taxes New provision on Civil Remedies for collection of Duties & Taxes

Distraint of Goods Civil or criminal action Constructive distraint of property

New provision creating Forfeiture Fund

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11 Title 11 Post Clearance Audit

Coverage of Audit expanded to include persons or entities other than the importers Documents/records that may be required revised as opposed to the listing in RA 9135 New provision empowering Customs to issue summons in relation to PEA investigation Penalty regime reduced to 2 (Negligence & Fraud). Amount of

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12 Title 12 Customs Fraud

New provision on Customs Fraud Investigation & Prosecution

13 Title 13 Third Parties

New provision on Third Parties

Customs Brokers Carriers, Vessels & Aircraft Other Third Parties including AEOs

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14 Title 14 Customs Fees & Charges

Fees, dues & charges to be provided under regulations

15 Title 15 Offenses & Penalties

Sec. 1502 Misdeclaration, Misclassification & Undervaluation redefined to conform to the Transaction Value System Amount of penalties for certain offences increased

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16 Title 16 Miscellaneous Provisions

Provision on rewards claim to include collection of additional revenues; reward only limited to non-Customs personnel Provision on Outsourcing of nonsovereign customs functions to private entities

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17 Title 17 Tariff Administration Policy

(Need to insert rationale for the revisions under this title.... This is different from CMTA)

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18 Title 18 Congressional Oversight Committee

New provision creating Congressional Oversight Committee

19 Title 19 Final Provisions

Repealing Clause Transitory Provision Separability Clause Effectivity Date

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Q&A

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THANK YOU!