Documentary Requirements and Procedures in the Processing of Various Claims

I.

Claim for ABATEMENT/REFUND FOR DUTIES AND TAXES II. Claim for REFUND OF UNUTILIZED L/C DEPOSIT III. Claim for DUTY DRAWBACK

1. Claim for abatement/refund for duties and taxes

SEC. 1708 Claim for Refund of Duties and Taxes and Mode of Payment.

All claims for refund of duties shall be made in writing and forwarded to the Collector to whom such duties are paid, who upon receipt of such claim, shall verify the same by the records of his Office, and if found to be correct and in accordance with law, shall certify the same to the Commissioner with his recommendation together with all necessary papers and documents. Upon receipt by the Commissioner of such certified claim he shall cause the same to be paid if found correct. If a result of the refund of customs duties there would necessarily result a corresponding refund of internal revenue taxes on the same importation, the Collector shall likewise certify the same to the Commissioner who shall cause the said taxes to be paid, refunded, or tax credited in favor of the importer, with advice to the Commissioner of Internal Revenue.

2. Claim for refund of Unutilized

L/C deposit
Customs Administrative Order No. 5-92 Period to file claim for refund

The importer/claimant shall have a period of one (1) year from the date the totally or partially unutilized L/C is cancelled by the AAB.

Failure to present IED or OR-claims for refund shall not be processed if the claimant is not in a position to present the original import entry declaration and official receipt/s covering the claim.

Procedures:
1. Application for refund under this order shall be made in a Standard Application form (Annex A) to be filed by the claimant or authorized representatives at the Collection Division Unit of the Port. The application shall be supported by the following documents:

For TOTALLY UNUTILIZED L/C Importers original copy of Import Entry Declaration (IED) and BCOR. Clearance number and date of issue by the Liquidation and Billing Division (LBD) and collection services; Certification of AAB as to cancellation of L/C because there are no corresponding importation made whatsoever, no outward remittance of foreign exchange, and no automatic refund of the advance customs duties as allowed by CB 909 have ever been effected.

For PARTIALLY UTILIZED L/C Importers original copy of Import Entry Declaration (IED), BCOR and CBRC. Clearance number and date of issue by the Liquidation and Billing Division (LBD) and collection services; Certification of AAB as to cancellation of unutilized portion of letter of credit.

2. Collection Division Unit of the port, as main action office of the District Collector of customs level, receives the application, checks the same for completeness and attaches the checklist, (annex B) gives the application its docket number, indicates the date of receipt thereof, initials the same and returns a copy of application to claimant. Claims not supported by all requirements are returned to the claimant.
3. The RAD verifies the claim for the list of cancelled LCs to be provided by BSP, Current Imports Commodity Classification Department (CB-CICCD), prepares certification of payment remittance and transmits all pertinent documents to the Accounting Division (AD).

4. The AD processes the claim and prepares the following:

Journal voucher for the Commissioners approval; Tax Credit Certificate (TCC) and Disposition Form for the approval of the Deputy Commissioner for Revenue Monitoring Group.

5. The claim folder with signed TCC is returned to the Accounting Division for final recording and release to claimant or its authorized authority.

Work Time Schedule

Claims for refund under this order shall have a processing time schedule of ten (10) working days at the offices under the District Collector of Customs and another ten (10) working days in offices under the Commissioner of Customs.

Clearance
Clearances from Liquidation and Billing Division and Collection Service must have control number for this purpose and shall be valid for the period of three (3) months, Annex D the Collection Division Unit of the port shall be furnished with a copy of the said clearance.

3.Claim for DUTY DRAWBACK

Guidelines for the filing and processing of drawback claims:

Section 1- Size and Place of Marking the marking subject to drawback must be printed in RED letters along the right hand margin of the ED/EP, each letter at least half an inch tall.

Section 2- Exporters Responsibility to Mark It shall be the responsibility of the exporter to mark all copies of the export declaration as described in Section 1 above. No drawback claim shall be awarded on any shipment on which the covering export declaration has not been properly marked.
Section 3- Seventy-five percent (75%) of the Shipment must be Ready for Inspection. Exporters of goods for which drawbacks claims shall be applied must be able to present their shipments for examination to duly designated customs officer. At least Seventy-five percent (75%) of the goods must be ready for inspection at the time of filing of the export declaration/permit.

Section 4- Shipment information Ship required To facilitate inspection, a shipment information slip must be attached to the EP/ED to guide custom spot checkers. The slip must contain the following information: a) Name of Firm address and Telephone nos. b) Person in the contact c) Location of shipment d) Number of packages, marks & descriptions e) Vessel, Loading Pier f) Date and Time to be brought to the pier g) Raw Materials used, formula of manufacture and covering import entry.

Section 5- Penalty Clause Failure to comply with any of the provisions of this memorandum under shall be ground for denial of drawback.