Upload
portcalls
View
218
Download
0
Embed Size (px)
Citation preview
8/20/2019 CMTA Bicameral Approved Copy
1/150
1
REPUBLIC OF THE PHILIPPINES
CONGRESS OF THE PHILIPPINES
SIXTEENTH CONGRESSThird Regular Session
REPUBLIC ACT NO. ________
“AN ACT MODERNIZING THE CUSTOMS AND TARIFF ADMINISTRATION”
Be it enacted by the Senate and House of Representatives of the Philippines inCongress assembled:
TITLE I1
PRELIMINARY PROVISIONS2
CHAPTER 13
SHORT TITLE4
SECTION 100. Sho rt Tit le . – This Act shall be known as the “Customs5
Modernization and Tariff Act (CMTA).” 6
CHAPTER 27
GENERAL AND COMMON PROVISIONS8
SEC. 101. Declaration o f Policy . – It is hereby declared the policy of the State to9
protect and enhance government revenue, institute fair and transparent customs and10
tariff management that will efficiently facilitate international trade, prevent and curtail11
any form of customs fraud and illegal acts, and modernize customs and tariff12
administration. Towards this end, the State shall:13
(a) Develop and implement programs for the continuous enhancement of14
customs systems and processes that will harmonize customs procedures;15
(b) Adopt clear and transparent customs rules, regulations, policies and16
procedures, consistent with international standards and customs best practices;17
(c) Establish a regime of transparency of and accessibility to customs18
information, customs laws, rules, regulations, administrative policies, procedures and19
practices, in order to ensure informed, and diligent compliance with customs practices20
and procedures by stakeholders;21
8/20/2019 CMTA Bicameral Approved Copy
2/150
2
(d) Consult, coordinate and cooperate with other government agencies and the1
private sector in implementing and developing customs policy;2
(e) Provide a fair and expeditious administrative and judicial appellate remedy for3
customs related grievances and matters;4
(f) Employ modern practices in customs administration and utilize information5
and communications technology in the implementation of customs functions; and6
(g) Institute professionalism and meritocracy in customs tax administration by7
attracting and retaining competent and capable customs officers and personnel to8
enforce the provisions of this Act.9
SEC. 102. Defini t ion o f Terms . – As used in this Act:10
(a) Abatement refers to the reduction or diminution, in whole or in part, of duties11
and taxes where payment has not been made;12
(b) Actual or Outright Exportation refers to the customs procedure applicable to13
goods which, being in free circulation, leave the Philippine territory and are intended to14
remain permanently outside it; 15
(c) Admission refers to the act of bringing imported goods directly or through16
transit into a free zone; 17
(d) Airway Bill (AWB) refers to a transport document for airfreight used by airlines18
and international freight forwarders which specify the holder or consignee of the bill who19
has the right to claim delivery of the goods when they arrive at the port of destination. It20
is a contract of carriage that includes carrier conditions, such as limits of liability and21
claims procedures. In addition, it contains transport instructions to airlines and carriers,22
a description of the goods, and applicable transportation charges;23
(e) Appeal refers to the remedy by which a person who is aggrieved or adversely24
affected by any action, decision, order, or omission of the Bureau, seeks redress before25
the Bureau, the Secretary of Finance, or competent court, as the case may be; 26
(f) Assessment refers to the process of determining the amount of duties and27
taxes and other charges due on imported and exported goods; 28
8/20/2019 CMTA Bicameral Approved Copy
3/150
3
(g) Authorized Economic Operator (AEO) refers to the importer, exporter,1
customs broker, forwarder, freight forwarder, transport provider, and any other entity2
duly accredited by the Bureau based on the World Customs Organization (WCO)3
Framework of Standards to Secure and Facilitate Global Trade, the Revised Kyoto4
Convention (RKC), the WCO Supply Chain Management Guidelines and the various5
national best practices to promote trade facilitation and to provide a seamless6
movement of goods across borders through secure international trade supply chains7
with the use of risk management and modern technology; 8
(h) Bill of Lading (B/L) refers to a transport document issued by shipping lines,9
carriers and international freight forwarders or non-vessel operating common carrier for10
water-borne freight. The holder or consignee of the bill has the right to claim delivery of11
the goods at the port of destination. It is a contract of carriage that includes carrier12
conditions, such as limits of liability and claims procedures. In addition, it contains13
transport instructions to shipping lines and carriers, a description of the goods, and14
applicable transportation charges; 15
(i) Bureau refers to the Bureau of Customs;16
(j) Carrier refers to the person actually transporting goods or in charge of or17
responsible for the operation of the means of transport such as airlines, shipping lines,18
freight forwarders, cargo consolidators, non-vessel operating common carriers and19
other international transport operators;20
(k) Clearance refers to the completion of customs and other government21
formalities necessary to allow goods to enter for consumption, warehousing, transit or22
transshipment, or to be exported or placed under another customs procedure; 23
(l) Commission refers to the Tariff Commission; 24
(m) Conditional Importation refers to the customs procedure known under the25
Revised Kyoto Convention (RKC) as temporary admission in which certain goods can26
be brought into a customs territory conditionally relieved, totally or partially, from27
payment of import duties and taxes; such goods must be imported for a specific28
8/20/2019 CMTA Bicameral Approved Copy
4/150
4
purpose and must be intended for re-exportation within a specified period and without1
having undergone any substantial change except due to normal depreciation.2
(n) Customs Broker refers to any person who is a bona fide holder of a valid3
Certificate of Registration/Professional Identification Card issued by the Professional4
Regulatory Board and Professional Regulation Commission pursuant to Republic Act5
No. 9280, as amended, otherwise known as the “Customs Brokers Act of 2004;” 6
(o) Customs Office refers to any customs administrative unit that is competent7
and authorized to perform all or any of the functions enumerated under customs and8
tariff laws;9
(p) Customs Officer, as distinguished from a clerk or employee, refers to a10
person whose duty, not being clerical or manual in nature, involves the exercise of11
discretion in performing the function of the Bureau. It may also refer to an employee12
authorized to perform a specific function of the Bureau as provided in this Act;13
(q) Customs Territory refers to areas in the Philippines where customs and tariff14
laws may be enforced; 15
(r) Entry refers to the act, documentation and process of bringing imported goods16
into the customs territory, including goods coming from free zones;17
(s) Exportation refers to the act, documentation, and process of bringing goods18
out of Philippine territory;19
(t) Export Declaration refers to a statement made in the manner prescribed by20
the Bureau and other appropriate agencies, by which the persons concerned indicates21
the procedure to be observed for taking out or causing to be taken out any exported22
goods and the particulars of which the customs administration shall require; 23
(u) Flexible Clause refers to the power of the President upon recommendation of24
the NEDA (1) to increase, reduce or remove existing protective tariff rates of import25
duty, but in no case shall be higher than 100% ad valorem; (2) to establish import quota26
or to ban importation of any commodity as may be necessary; and (3) to impose27
additional duty on all import not exceeding 10% ad valorem whenever necessary;28
8/20/2019 CMTA Bicameral Approved Copy
5/150
5
(v) Foreign Exporter refers to one whose name appears on documentation1
attesting to the export of the product to the Philippines regardless of the manufacturer’s2
name in the invoice; 3
(w) Free Zone refers to special economic zones registered with the Philippine4
Economic Zone Authority (PEZA) under Republic Act No. 7916, as amended, duly5
chartered or legislated special economic zones and freeports such as Clark Freeport6
Zone, Poro Point Freeport Zone, John Hay Special Economic Zone and Subic Bay7
Freeport Zone under Republic Act No. 7227 as amended by Republic Act No. 9400, the8
Aurora Special Economic Zone under Republic Act No. 9490, as amended, the9
Cagayan Special Economic Zone and Freeport under Republic Act No. 7922, the10
Zamboanga City Special Economic Zone under Republic Act No. 7903, and Freeport11
Area of Bataan under Republic Act No. 9728 and such other freeports as established12
or may be created by law;13
(x) Goods refer to articles, wares, merchandise and any other items which are14
subject of importation or exportation;15
(y) Goods declaration refers to a statement made in the manner prescribed by16
the Bureau and other appropriate agencies, by which the persons concerned indicate17
the procedure to be observed in the application for the entry or admission of imported18
goods and the particulars of which the customs administration shall require;19
(z) Importation refers to the act of bringing in of goods from a foreign territory into20
Philippine territory, whether for consumption, warehousing, or admission as defined in21
this Act;22
(aa) Freight Forwarder refers to a local entity that acts as a cargo intermediary23
and facilitates transport of goods on behalf of its client without assuming the role of a24
carrier, which can also perform other forwarding services, such as booking cargo25
space, negotiating freight rates, preparing documents, advancing freight payments,26
providing packing/crating, trucking and warehousing, engaging as an27
agent/representative of a foreign non-vessel operating as a common carrier/cargo28
8/20/2019 CMTA Bicameral Approved Copy
6/150
6
consolidator named in a master bill of lading as consignee of a consolidated shipment,1
and other related undertakings; 2
(bb) International freight forwarder refers to persons responsible for the3
assembly and consolidation of shipments into single lot, and assuming, in most cases,4
the full responsibility for the international transport of such shipment from point of5
receipt to the point of destination;6
(cc) Jurisdictional Control refers to the power and rights of the Bureau of7
Customs in exercising supervision and police authority over all seas within the8
jurisdiction of the Philippine territory and over all coasts, ports, airports, harbors, bays,9
rivers and inland waters whether navigable or not from the sea;10
(dd) Lodgement refers to the registration of a goods declaration with the Bureau; 11
(ee) Non-Vessel Operating Common Carrier (NVOCC) refers to an entity, which12
may or may not own or operate a vessel that provides a point-to-point service which13
may include several modes of transport and/or undertakes group age of less container14
load (LCL) shipments and issues the corresponding transport document;15
(ff) Outright Smuggling refers to an act of importing goods into the country16
without complete customs prescribed importation documents, or without being cleared17
by customs or other regulatory government agencies, for the purpose of evading18
payment of prescribed taxes, duties and other government charges;19
(gg) Perishable Good refers to goods liable to perish or goods that depreciate20
greatly in value while stored or which cannot be kept without great disproportionate21
expense, which may be proceeded to, advertised and sold at auction upon notice if22
deemed reasonable; 23
(hh) Port of Entry refers to a domestic port open to both domestic and24
international trade, including principal ports of entry and subports of entry. A principal25
port of entry is the chief port of entry of the Customs District wherein it is situated and is26
the permanent station of the District Collector of such port. Subports of entry are under27
the administrative jurisdiction of the District Collector of the principal port of entry of the28
Customs District. Port of entry as used in this Act shall include airport of entry;29
8/20/2019 CMTA Bicameral Approved Copy
7/150
7
(ii) Port of Discharge, also called port of unloading, refers to a place where a1
vessel, ship, aircraft or train unloads its shipments, from where they will be dispatched2
to their respective consignees;3
(jj) Re-exportation means exportation of goods which have been imported;4
(kk) Release of Goods refers to the action by the Bureau to permit goods5
undergoing clearance to be placed at the disposal of the party concerned;6
(ll) Refund refers to the return, in whole or in part, of duties and taxes paid on7
goods;8
(mm) Security refers to any form of guaranty, such as a surety bond, cash bond,9
standby letter of credit or irrevocable letter of credit, which ensures the satisfaction of10
an obligation to the Bureau; 11
(nn) Smuggling refers to the fraudulent act of importing any goods into the12
Philippines, or the act of assisting in receiving, concealing, buying, selling, disposing or13
transporting such goods, with full knowledge that the same has been fraudulently14
imported, or the fraudulent exportation of goods. Goods referred to under this definition15
shall be known as smuggled goods;16
(oo) Taxes refer to all taxes, fees and charges imposed under this Act and the17
National Internal Revenue Code (NIRC), as amended, and collected by the Bureau;18
(pp) Technical Smuggling refers to the act of importing goods into the country by19
means of fraudulent, falsified or erroneous declaration of the goods to its nature, kind,20
quality, quantity or weight, for the purpose of reducing or avoiding payment of21
prescribed taxes, duties and other charges;22
(qq) Tentative Release refers to a case where the assessment is disputed and23
pending review, an importer may put up a cash bond equivalent to the duties and taxes24
due on goods before the importer can obtain the release of said goods;25
(rr) Transit refers to the customs procedure under which goods, in its original26
form, are transported under customs control from one customs office to another, or to a27
free zone;28
8/20/2019 CMTA Bicameral Approved Copy
8/150
8
(ss) Transshipment refers to the customs procedure under which goods are1
transferred under customs control from the importing means of transport to the2
exporting means of transport within the area of one Customs office, which is the office3
of both importation and exportation;4
(tt) Travelers refers to any person who temporarily enters the territory of a5
country in which he or she does not normally resides (non-resident), or who leaves that6
territory, and any person who leaves the territory of a country in which he or she7
normally resides (departing resident) or who returns to that territory (returning resident);8
and9
(uu)Third party refers to any person who deals directly with the Bureau, for and10
on behalf of another person, relating to the importation, exportation, movement or11
storage of goods.12
SEC. 103. When Importat ion Begins and Deemed Terminated . –13
Importation begins when the carrying vessel or aircraft enters the Philippine territory14
with the intention to unload therein. Importation is deemed terminated when:15
(a) the duties, taxes and other charges due upon the goods have been paid or16
secured to be paid at the port of entry unless the goods are free from duties, taxes and17
other charges and legal permit for withdrawal has been granted; or18
(b) in case the goods are deemed free of duties, taxes and other charges, the19
goods have legally left the jurisdiction of the Bureau.20
SEC. 104. When Duty and Tax is Due on Imported Goo ds . – Except as21
otherwise provided for in this Act or in other laws, all goods, when imported into the22
Philippines, shall be subject to duty upon importation, including goods previously23
exported from the Philippines.24
Unpaid duties, taxes and other charges, shall incur legal interest of twenty25
percent (20%) per annum computed from the date of final assessment under Section26
429 of this Act, when payment becomes due and demandable. The legal interest shall27
likewise accrue on any fine or penalty imposed.28
8/20/2019 CMTA Bicameral Approved Copy
9/150
9
Upon payment of the duties, taxes and other charges, the Bureau shall issue the1
necessary receipt or document as proof of such payment.2
SEC. 105. Effective Date of Rate of Impo rt Duty . – Imported goods shall be3
subject to the import duty rates under the applicable tariff heading that are effective at4
the date of importation or upon withdrawal from the warehouse for consumption. In case5
of withdrawal from free zones for introduction to the customs territory, the duty rate at6
the time of withdrawal shall be applicable on the goods originally admitted, whether7
withdrawn in its original or advanced form.8
In case of goods sold at customs public auction, the duty rates at the date of the9
auction shall apply for purposes of implementing Section 1143(a).10
SEC. 106. Declaran t . – A declarant may be a consignee or a person who has11
the right to dispose of the goods. The declarant shall lodge a goods declaration with the12
Bureau and may be:13
(a) the importer, being the holder of the bill of lading; or14
(b) the exporter, being the owner of the goods to be shipped out; or15
(c) a customs broker acting under the authority of the importer or from a holder of16
the bill; or17
(d) A person duly empowered to act as agent or attorney-in-fact for each holder.18
In case the consignee or the person who has the right to dispose of the goods is19
a juridical person, it may authorize a responsible officer of the company to sign the20
goods declaration as declarant in its behalf.21
The goods declarations submitted to the Bureau shall be processed by the22
declarant or by a licensed customs broker: Provided, That for importations, a transition23
period of two (2) years from the effectivity of this Act is hereby provided during which24
subparagraph (d) of this section shall not be implemented by the Bureau: Provided,25
further, That after two (2) years from the effectivity of this Act, subparagraph (d) of this26
section shall take into effect consistent with international standards and customs best27
practices.28
8/20/2019 CMTA Bicameral Approved Copy
10/150
10
SEC. 107. Rights and Responsibi l i t ies o f the Declarant . – The declarant shall1
be responsible for the accuracy of the goods declaration and for the payment of all2
duties, taxes, and other charges due on the imported goods. The licensed customs3
broker shall likewise be responsible for the accuracy of the goods declaration but shall4
not be responsible for the payment of duties, taxes and other charges due on the5
imported goods.6
The declarant shall sign the goods declaration, even when assisted by a licensed7
customs broker, who shall likewise sign the goods declaration.8
SEC. 108. Penalt ies for Errors in Goods Declaration . – The Bureau shall9
not impose substantial penalties for errors when such errors are inadvertent and there10
was no fraudulent intent or gross negligence in the commission thereof: Provided, That,11
in order to discourage repetition of such errors, a penalty may be imposed but shall not12
be excessive.13
SEC. 109. Appl icat ion of Informat ion and Commu nicat ions Techno logy . – In14
accordance with international standards, the Bureau shall utilize information and15
communications technology to enhance customs control and to support a cost-effective16
and efficient customs operations geared towards a paperless customs environment.17
The Bureau shall communicate, exchange and process trade- and logistics-18
related information in the national and regional level for the efficient and prompt19
clearance of goods and commodities in a technology-neutral and secured infrastructure20
for business, industries, and government.21
The security of data and communication shall be in a manner that is consistent22
with applicable local and internationally accepted standards on information security.23
The Bureau shall likewise include as part of its systems and processes, a24
disaster preparedness and recovery plan to ensure business continuity by maintaining25
its uptime goal for its electronic and online services.26
For purposes of customs procedures, electronic documents, permits, licenses or27
certificates shall be acceptable and shall have the legal effect, validity or enforceability28
8/20/2019 CMTA Bicameral Approved Copy
11/150
11
as any other document or legal writing: Provided , That when the prescribed1
requirements are duly complied with, the Bureau shall:2
(a) recognize the authenticity and reliability of electronic documents;3
(b) transmit approval in the form of electronic data messages or electronic4
documents; and5
(c) require and/or accept payments and issue receipts acknowledging such6
payments through systems using electronic date messages or electronic documents.7
The introduction and implementation of information and communications8
technology shall be undertaken with due consultation with directly affected parties and9
stakeholders.10
SEC. 110. Relat ion ship Between the Bu reau and Third Part ies . – Parties may11
transact business with the Bureau either directly or through a designated third party to12
act on their behalf.13
The customs transactions directly transacted by a party shall not be treated less14
favorably or be subject to more stringent requirements than those transacted through a15
designated third party.16
A designated third party shall have the same rights and obligations as the17
designating party when transacting business with the Bureau.18
Subject to the provisions of existing laws, treaties, convention and international19
agreements, the Secretary of Finance shall make the necessary guidelines for the20
defined relationship of the Bureau and third parties.21
SEC. 111. Info rmat ion o f General App l ication . – All laws, decisions, rulings,22
circulars, memoranda and orders of the Bureau shall be published in accordance with23
law.24
To foster an informed compliance regime, the Bureau shall ensure that all25
relevant and available information of general application pertaining to customs26
operations and procedures which are not confidential or intended for the Bureau’s27
internal use only, shall be readily accessible to any interested person.28
8/20/2019 CMTA Bicameral Approved Copy
12/150
12
Any new information, amendment or changes in customs law, administrative1
procedures or requirements, shall, as far as practicable, be made readily available prior2
to its effective date of implementation unless advance notice is precluded.3
SEC. 112. Inform at ion o f a Speci f ic Nature . – The Bureau shall provide4
information, not otherwise confidential or for the Bureau’s internal use only, relating to a5
specific matter as may be requested by an interested party for legitimate use.6
The Bureau may require the payment of a reasonable fee in providing such7
information. The requested information shall be released within reasonable time from8
the filing of the request and payment of the required fee.9
SEC. 113. Decis ion and Rul ing . – The Bureau shall, consistent with Section10
1502 of this Act, issue binding and advance decision and ruling at the request of an11
interested party on matters pertaining to importation or exportation of goods.12
Upon written request of the interested party, the Bureau shall notify the party of13
its decision in writing within the period specified in this Act or by regulation. Should the14
decision be adverse to the requesting interested party, the reasons thereof shall be15
indicated and the party shall be advised of the party’s right of appeal. 16
The ruling and decision shall be issued by the Bureau within thirty (30) days from17
the submission of the necessary documents and information.18
SEC. 114. Right of A ppeal , Forms and Grou nd . – Any party adversely19
affected by a decision or omission of the Bureau pertaining to an importation,20
exportation, or any other legal claim shall have the right to appeal within fifteen (15)21
days from receipt of the questioned decision or order.22
An appeal in writing shall be filed within the period prescribed in this Act or by23
regulation and shall specify the grounds thereof.24
The Bureau may allow a reasonable time for the submission of supporting25
evidence to the appeal.26
8/20/2019 CMTA Bicameral Approved Copy
13/150
13
CHAPTER 31
TYPES OF IMPORTATION2
SEC. 115. Treatment o f Importat ion . – Imported goods shall be deemed3
“entered” in the Philippines for consumption when the goods declaration is electronically4
lodged, together with any required supporting documents, with the pertinent customs5
office.6
SEC. 116. Free Importat ion and Exportat ion . – Unless otherwise provided by7
law or regulation, all goods may be freely imported into and exported from the8
Philippines without need for import and export permits, clearances or licenses.9
SEC. 117. Regulated Impo rtat ion and Expo rtat ion. – Goods which are subject10
to regulation shall be imported or exported only after securing the necessary goods11
declaration or export declaration, clearances, licenses, and any other requirements,12
prior to importation or exportation. In case of importation, submission of requirements13
after arrival of the goods but prior to release from customs custody, shall be allowed but14
only in cases provided for by governing laws or regulations.15
SEC. 118. Prohibi ted Importat ion and Expo rtat ion . – The importation and16
exportation of the following goods are prohibited:17
(a) Written or printed goods in any form containing any matter advocating or18
inciting treason, rebellion, insurrection, sedition against the government of the19
Philippines, or forcible resistance to any law of the Philippines, or written or printed20
goods containing any threat to take the life of, or inflict bodily harm upon any person in21
the Philippines;22
(b) Goods, instruments, drugs and substances designed, intended or adapted23
for producing unlawful abortion, or any printed matter which advertises, describes or24
gives direct or indirect information where, how or by whom unlawful abortion is25
committed;26
(c) Written or printed goods, negatives or cinematographic film, photographs,27
engravings, lithographs, objects, paintings, drawings or other representation of an28
obscene or immoral character;29
8/20/2019 CMTA Bicameral Approved Copy
14/150
14
(d) Any goods manufactured in whole or in part of gold, silver or other precious1
metals or alloys and the stamp, brand or mark does not indicate the actual fineness of2
quality of the metals or alloys;3
(e) Any adulterated or misbranded food or goods for human consumption or any4
adulterated or misbranded drug in violation of relevant laws and regulations;5
(f) Infringing goods as defined under the Intellectual Property Code and related6
laws; and7
(g) All other goods or parts thereof, which importation and exportation are8
explicitly prohibited by law or rules and regulations issued by the competent authority.9
SEC. 119. Restr ic ted Imp ortat ion and Exportat ion. – Except when authorized10
by law or regulation, the importation and exportation of the following restricted goods11
are prohibited:12
(a) Dynamite, gunpowder, ammunitions and other explosives, firearms and13
weapons of war, or parts thereof;14
(b) Roulette wheels, gambling outfits, loaded dice, marked cards, machines,15
apparatus or mechanical devices used in gambling or the distribution of money, cigars,16
cigarettes or other goods when such distribution is dependent on chance, including17
jackpot and pinball machines or similar contrivances, or parts thereof;18
(c) Lottery and sweepstakes tickets, except advertisements thereof and lists of19
drawings therein.20
(d) Marijuana, opium, poppies, coca leaves, heroin or other narcotics or synthetic21
drugs which are or may hereafter be declared habit forming by the President of the22
Philippines, or any compound, manufactured salt, derivative, or preparation thereof,23
except when imported by the government of the Philippines or any person duly24
authorized by the Dangerous Drugs Board, for medicinal purposes;25
(e) Opium pipes or parts thereof, of whatever material; and26
(f) Any other goods whose importation and exportation are restricted.27
The restriction to import or export the above stated goods shall include the28
restriction on their transit.29
8/20/2019 CMTA Bicameral Approved Copy
15/150
15
CHAPTER 41
RELIEF CONSIGNMENT2
SEC. 120. Relief Consignment . – Goods such as food, medicine, equipment and3
materials for shelter, donated or leased to government institutions and accredited4
private entities for free distribution to or use of victims of calamities shall be treated and5
entered as relief consignment.6
Upon declaration of a state of calamity, clearance of relief consignment shall be a7
matter of priority and subject to a simplified customs procedure. The Bureau shall8
provide for:9
(a) Lodging of a simplified goods declaration or of a provisional or incomplete10
goods declaration subject to completion of the declaration within a specified period;11
(b) Lodging, registering and checking of the goods declaration and supporting12
documents prior to the arrival of the goods, and their release upon arrival;13
(c) Clearance beyond the designated hours of business or away from customs14
offices and waiver of any corresponding charges; and15
(d) Examination and/or sampling of goods only in exceptional circumstances.16
The Department of Finance (DOF) and the Department of Social Welfare and17
Development (DSWD) shall jointly issue the rules and regulations for the18
implementation of this provision.19
SEC. 121. Duty A nd Tax Treatment . – Relief consignment, as defined in Section20
120, imported during a state of calamity and intended for a specific calamity area for21
the use of the calamity victims therein, shall be exempt from duties and taxes.22
TITLE II23
BUREAU OF CUSTOMS24
CHAPTER 125
GENERAL ADMINISTRATION26
SEC. 200. Chief Officials of the Bureau . – The Bureau shall be headed by a27
Commissioner and shall be assisted by at least four (4) but not more than six (6) Deputy28
Commissioners.29
8/20/2019 CMTA Bicameral Approved Copy
16/150
16
The Commissioner shall be appointed by the President of the Philippines.1
The Deputy Commissioners shall also be appointed by the President and at least2
majority of whom shall come from the ranks of the Bureau.3
SEC. 201. Powers and Funct ion s of the Commiss ioner . - The Commissioner4
shall have the following powers and functions:5
(a) Exclusive and original jurisdiction to interpret the provisions of this Act, in6
collaboration with other relevant government agencies, subject to review by the7
Secretary of Finance;8
(b) Exercise any customs power, duties and functions, directly or indirectly;9
(c) Review any action or decision of any customs officer performed pursuant to10
the provisions of this Act;11
(d) Review and decide disputed assessments and other matters related thereto,12
subject to review by the Secretary of Finance and exclusive appellate jurisdiction of the13
Court of Tax Appeals (CTA);14
(e) Delegate the powers vested under this Act to any customs officer with the15
rank equivalent to division chief or higher, except for the following powers and functions:16
i. Promulgation of rules and regulations;17
ii. Issuance, revocation or modification of rulings; and18
iii. Compromise or abatement customs obligations.19
(f) Assignment or reassignment any customs officer subject to the approval of the20
Secretary of Finance: Provided, That District Collectors and other customs officers that21
perform assessment functions shall not remain in the same area of assignment for more22
than three (3) years; and23
(g) Perform all other duties and functions as may be necessary for the effective24
implementation of this Act and other customs related laws.25
SEC. 202. Funct ions o f the Bureau . – The Bureau shall exercise the following26
duties and functions:27
(a) Assessment and collection of customs revenues from imported goods and28
other dues, fees, charges, fines and penalties accruing under this Act;29
8/20/2019 CMTA Bicameral Approved Copy
17/150
17
(b) Simplification and harmonization of customs procedures to facilitate1
movement of goods in international trade;2
(c) Border control to prevent entry of smuggled goods;3
(d) Prevention and suppression of smuggling and other customs fraud;4
(e) Facilitation and security of international trade and commerce through an5
informed compliance program;6
(f) Supervision and control over the entrance and clearance of vessels and7
aircraft engaged in foreign commerce;8
(g) Supervision and control over the handling of foreign mails arriving in the9
Philippines for the purpose of collecting revenues and preventing the entry of10
contraband;11
(h) Supervision and control on all import and export cargoes, landed or stored in12
piers, airports, terminal facilities, including container yards and freight stations for the13
protection of government revenue and prevention of entry of contraband;14
(i) Conduct of compensation studies, and development and recommendation to15
the President of a competitive compensation and remuneration system to attract and16
retain highly qualified personnel, while ensuring that the Bureau remains financially17
sound and sustainable.18
(j) Exercise of exclusive original jurisdiction over forfeiture cases under this Act;19
and20
(k) Enforcement of this Act and all other laws, rules and regulations related to21
customs administration.22
SEC. 203. Annu al Repor t of the Commiss ioner . – The Commissioner shall23
submit to the President, the Congress of the Philippines and the National Economic and24
Development Authority (NEDA) an annual report on the performance of the Bureau, on25
or before March 31 of the following year.26
SEC. 204. Promulg at ion o f Rules and Regulat ions . – The Commissioner,27
subject to the approval of the Secretary of Finance, shall promulgate rules and28
regulations for the enforcement of this Act. The Commissioner shall regularly prepare29
8/20/2019 CMTA Bicameral Approved Copy
18/150
18
and publish an updated customs manual, and the rules, regulations and decisions of the1
Bureau. The Commissioner shall furnish the Congress of the Philippines, the NEDA2
and the Tariff Commission with electronic copies of department orders, administrative3
orders, circulars, and rules and regulations promulgated pursuant to this Act.4
SEC. 205. Copies of Goo ds Declarat ion . – The Commissioner shall regularly5
furnish the NEDA, the Philippine Statistics Authority (PSA), the Bureau of Internal6
Revenue (BIR) and the Tariff Commission electronic copies of all customs goods7
declaration processed and cleared by the Bureau.8
Upon request, the Tariff Commission shall have access to, and the right to be9
furnished with copies of liquidated goods declaration and other documents supporting10
the goods declaration as finally filed in the Commission on Audit (COA).11
For this purpose, the Bureau shall maintain electronic records of goods12
declaration and other documents supporting the declaration.13
CHAPTER 214
CUSTOMS DISTRICTS AND PORTS OF ENTRY15
SEC. 206. Custom s Distr ic ts . – For administrative purposes, the Philippines16
shall be divided into as many Customs Districts as necessary, the respective limits of17
which may be changed from time to time by the Commissioner, with the approval of the18
Secretary of Finance.19
Each Customs District shall be supervised by one (1) District Collector, assisted20
by as many Deputy District Collectors as may be necessary. The choice of the location21
of a District Office, its business hours and the staffing pattern thereof, shall be based on22
the particular requirements of each district.23
SEC. 207. Ports of Entry . – All ports of entry shall be under the supervision and24
control of a Customs District. A District Collector shall be assigned in the principal ports25
of entry while a Deputy District Collector may be assigned toother types of ports of26
entry.27
The principal ports of entry shall be located in Aparri, San Fernando, Manila,28
Manila International Container Port, Ninoy Aquino International Airport, Subic, Clark,29
8/20/2019 CMTA Bicameral Approved Copy
19/150
19
Batangas, Legaspi, Iloilo, Cebu, Tacloban, Surigao, Cagayan de Oro, Zamboanga,1
Davao, Limay and such other ports that may be created pursuant to this Act.2
For the effective enforcement of the Bureau’s functions and without hampering3
business and commercial operations of the ports, sea ports and airport authorities and4
private ports and airport operators shall provide suitable areas for examination and for5
other customs equipment free of charge within a definite period of time, as agreed with6
private port and airport operations, if any.7
SEC. 208. Power of the President to Open and Close Any Port . – Upon the8
recommendation of the Secretary of Finance, the President may open or close any port9
of entry. Upon closure of a port of entry, the existing personnel shall be reassigned by10
the Commissioner, subject to the approval of the Secretary of Finance.11
SEC. 209. Ass ignment of Customs Off icers and Employ ees to Other Dut ies . 12
– The Commissioner, with the approval of the Secretary of Finance, may assign any13
employee of the Bureau to any port, service, division or office of the Bureau within the14
Bureau’s staffing pattern or organizational structure, or be assigned other duties:15
Provided, That such assignment shall not affect the employee’s tenure of office nor16
result in a change of status, demotion in rank and/or salary deduction.17
SEC. 210. Duties of the Distr ict Collector. – The District Collector shall have18
the following duties in their assigned Customs District:19
(1) ensure entry of all imported goods at the customs office;20
(2) prevent importation and exportation of prohibited goods;21
(3) ensure legal compliance of regulated goods and facilitate the flow of22
legitimate trade;23
(4) examine, classify and value imported goods;24
(5) assess and collect duties, taxes and other charges on imported goods;25
(6) hold and dispose imported goods in accordance with this Act;26
(7) prevent smuggling and other customs fraud; and27
(8) perform other necessary duties that may be assigned by the Commissioner28
for the effective implementation of this Act.29
8/20/2019 CMTA Bicameral Approved Copy
20/150
20
Subject to the supervision and control of the District Collector, the duties and1
functions of the District Collector may be delegated to the Deputy District Collector. The2
Deputy District Collector assigned to a sub-port shall be under the supervision and3
control of the District Collector of the corresponding principal port.4
SEC. 211. Temporary Succession o f Deputy Distr ic t Col lector to Posi t ion o f5
Act in g Distr ic t Col lector . – In the absence or disability of a District Collector or, in6
case of vacancy, the Deputy District Collector shall temporarily discharge the duties of7
the District Collector. Should there be no Deputy District Collector, the District Collector8
shall designate, in writing, a senior ranking customs officer to temporarily perform the9
duties of the District Collector. In case there are two (2) or more senior ranking customs10
officers with equal length of service, a drawing of lots shall be undertaken. The District11
Collector shall report the designation to the Commissioner within twenty-four (24) hours12
after the designation.13
SEC. 212. Records to be Kept by Customs Off icers . – District Collectors,14
Deputy District Collectors, and customs officers acting in such capacities must maintain15
permanent records of official transactions and turn-over all records and official papers to16
their respective successors or other authorized officials. The records shall be made17
available for inspection by other authorized officials of the Bureau.18
If required, the District Collector shall affix the official dry seal of the Bureau on19
all documents and records requiring authentication.20
SEC. 213. Reports of the Distr ic t Col lector to the Commiss ioner . – The21
District Collector shall report to the Commissioner any probable or initiated litigation22
within the Customs District and shall submit regular monthly reports on all district23
transactions.24
CHAPTER 325
EXERCISE OF POLICE AUTHORITY26
SEC. 214. Persons Exercis ing Pol ice Author i ty . – For the effective27
implementation of this Act, the following persons are authorized to effect search,28
seizure, and arrest:29
8/20/2019 CMTA Bicameral Approved Copy
21/150
21
(a) Officials of the Bureau, District Collectors, Deputy District Collectors, police1
officers, agents, inspectors and guards of the Bureau;2
(b) Upon authorization of the Commissioner , officers and members of the Armed3
Forces of the Philippines (AFP) and national law enforcement agencies; and4
(c) Officials of the BIR on all cases falling within the regular performance of their5
duties, when payment of internal revenue taxes is involved.6
All officers authorized by the Commissioner to exercise police authority shall at7
all times coordinate with the Commissioner.8
Goods seized by deputized officers pursuant to this Section shall be physically9
turned-over immediately to the Bureau, unless provided under existing laws, rules and10
regulations.11
For this purpose, mission orders shall clearly indicate the specific name carrying12
out the mission and the tasks to be carried out.13
Subject to the approval of the Secretary of Finance, the Commissioner shall14
define the scope, areas covered, procedures and conditions governing the exercise of15
such police authority including custody and responsibility for the seized goods. The16
rules and regulations to this effect shall be furnished to the concerned government17
agencies and personnel for guidance and compliance.18
All seizures pursuant to this Section must be effected in accordance with the19
provisions on the conduct of seizure proceedings provided for in Chapters 3 and 4 of20
Title XI of this Act.21
SEC. 215. Place Where Au thor i ty May be Exercised . – All persons exercising22
police authority as described in the preceding section shall only exercise powers within23
customs premises as provided for in Sec. 303 of this Act and within the limits of the24
authority granted by the Commissioner.25
Port and airport authorities in all ports of entry shall provide authorized customs26
officers with unhampered access to all premises within their administrative jurisdiction.27
SEC. 216. Exercise of Power of Seizure . – Any person exercising police28
authority under this Act has the power and duty to seize any vessel, aircraft, cargo,29
8/20/2019 CMTA Bicameral Approved Copy
22/150
22
goods, animal or any other movable property when the same is subject to forfeiture or1
when they are subject of a fine imposed under this Act.2
SEC. 217. Duty o f Off icer to Disclose Off ic ial Character . – For the proper3
exercise of police authority, any authorized person shall disclose the nature of the4
authority upon being questioned at the time of exercise thereof and shall exhibit the5
corresponding written authority issued by the Commissioner.6
SEC. 218. Au thor i ty to Require Assistance and Inform at ion . – Any person7
exercising police authority may demand the assistance of and request information from8
the Philippine National Police (PNP), AFP and other national law enforcement agency,9
when necessary to effect any search, seizure or arrest. It shall be the duty of any police10
officer and other national law enforcers to give such lawful assistance.11
SEC. 219. Auth or i ty to Enter Propert ies . – Any person exercising police12
authority may at any time enter, pass through, and search any land, enclosure,13
warehouse, store, building or structure not principally used as a dwelling house.14
When a security personnel or any other employee lives in the warehouse, store,15
or any building, structure or enclosure that is used for storage of goods, it shall not be16
considered as a dwelling house for purposes of this Act.17
SEC. 220. Au thor i ty to Search Dwel ling House. – A dwelling house may be18
entered and searched only upon warrant issued by a Judge of a competent court, the19
sworn application thereon showing probable cause and particularly describing the place20
to be searched and the goods to be seized.21
SEC. 221. Auth or i ty to Search Vessels or Aircraf ts and Person s or Good s22
Conveyed Therein . – Any person exercising police authority under this Act may23
board, inspect, search and examine a vessel or aircraft and any container, trunk,24
package, box or envelope found on board, and physically search and examine any25
person thereon. In case of any probable violation of this Act, the person exercising26
police authority may seize the goods, vessel, aircraft, or any part thereof.27
8/20/2019 CMTA Bicameral Approved Copy
23/150
23
Such power to search includes removal of any false bottom, partition, bulkhead,1
or any other obstruction for the purpose of uncovering any concealed dutiable or2
forfeitable goods.3
The proceeding herein authorized shall not give rise to any claim for damage4
caused to the goods, vessel or aircraft, unless there is gross negligence or abuse of5
authority in the exercise thereof.6
SEC. 222. Authori ty to Search Vehicles, Other Carr iers, Persons and7
Animals . – Upon reasonable cause, any person exercising police authority may open8
and examine any box, trunk, envelope, or other container for purposes of determining9
the presence of dutiable or prohibited goods. This authority includes the search of10
receptacles used for the transport of human remains and dead animals. Such authority11
likewise includes the power to stop, search and examine any vehicle or carrier, person12
or animals suspected of holding or conveying dutiable or prohibited goods.13
SEC. 223. Auth or i ty to Search Person s Arr iv ing From Foreign Countr ies . – 14
Upon reasonable cause, travelers arriving from foreign countries may be subjected to15
search and detention by the customs officers. The dignity of the person under search16
and detention shall be respected at all times. Female inspectors may be employed for17
the examination and search of persons of their own sex.18
SEC. 224. Power to Inspect and Vis i t . –The Commissioner or any customs19
officer who is authorized in writing by the Commissioner, may demand evidence of20
payment of duties and taxes on imported goods openly for sale or kept in storage. In the21
event that the interested party fails to produce such evidence within fifteen (15) days,22
the goods may be seized and subjected to forfeiture proceedings: Provided, That during23
the proceedings the interested party shall be given the opportunity to prove or show the24
source of the goods and the payment of duties and taxes thereon: Provided, further,25
That when the warrant of seizure has been issued but subsequent documents26
presented evidencing proper payment are found to be authentic and in order, the27
District Collector shall, within fifteen (15) days from the receipt of the motion to quash or28
recall the warrant, shall cause the immediate release of the goods seized, subject to29
8/20/2019 CMTA Bicameral Approved Copy
24/150
24
clearance by the Commissioner: Provided, finally, That the release thereof shall not be1
contrary to law.2
TITLE III3
CUSTOMS JURISDICTION AND CUSTOMS CONTROL4
CHAPTER 15
CUSTOMS JURISDICTION6
SEC. 300. Customs Jur isd ic tion . – For the effective implementation of this Act,7
the Bureau shall exercise jurisdiction over all seas within Philippine territory and all8
coasts, ports, airports, harbors, bays, rivers and inland waters whether navigable or not9
from the sea and any means of conveyance.10
The Bureau shall pursue imported goods subject to seizure during its transport11
by land, water and air and shall exercise jurisdiction as may be necessary for the12
effective enforcement of this Act. When a vessel or aircraft becomes subject to seizure13
for violation of this Act, a pursuit of such vessel or aircraft which began within the14
territorial waters or air space may continue beyond the same, and the vessel or aircraft15
may be seized in the high seas or international air space.16
CHAPTER 217
CUSTOMS CONTROL18
SEC. 301. Custom s Control Over Goods . – All goods, including means of19
transport, entering or leaving the customs territory, regardless of whether they are liable20
to duties and taxes, shall be subject to customs control to ensure compliance with this21
Act.22
In the application of customs control, the Bureau shall employ audit-based23
controls and risk management systems, use automation to the fullest extent possible,24
and adopt a compliance measurement strategy to support risk management.25
The Bureau shall seek to cooperate and conclude mutual administrative26
assistance agreements with other customs administrations to enhance customs control.27
The Bureau shall consult, coordinate, and cooperate with other government regulatory28
8/20/2019 CMTA Bicameral Approved Copy
25/150
25
agencies, free zones authorities, and the customs stakeholders in general to enhance1
customs control.2
SEC. 302. Enforcement of Port Regulat ion of B ureau of Quarant ine. – 3
Customs officials and employees shall cooperate with the quarantine authorities in the4
enforcement of the port quarantine regulations promulgated by the Bureau of5
Quarantine and shall give effect to the same in so far as connected with matters of6
shipping and navigation.7
SEC. 303. Control Over Premises Used for Custom s Purposes . – The8
Bureau shall, for customs purposes, have exclusive control, direction and management9
of customs offices, facilities, warehouses, ports, airports, wharves, infrastructure and10
other premises in the Customs Districts, in all cases without prejudice to the general11
police powers of the local government units (LGUs), the Philippine Coast Guard and of12
law enforcement agencies in the exercise of their respective functions.13
SEC. 304. Power of the President to Subject Premises to Customs14
Jur isdict ion . – When public interest requires, the President may, by executive order,15
declare any public wharf, landing place, infrastructure, street or land, in any port of entry16
under the jurisdiction of the Bureau as may be necessary, for customs purposes and/or17
to authorize a port or terminal operator to transfer overstaying cargoes in an inland18
depot or terminal.19
SEC. 305. Trespass o r Obstruct ion of Customs Premises . – No person shall20
enter or obstruct a customs office, warehouse, port, airport, wharf, or other premises21
under the control of the Bureau without prior authority, including the streets or alleys22
where these facilities are located.23
SEC. 306. Special Survei l lance for th e Protect ion o f Custom s Revenue and24
Prevent ion of Smug gl ing. – The Bureau shall conduct surveillance on vessels or25
aircrafts entering Philippine territory and on imported goods entering the customs office:26
Provided, That the function of the Philippine Coast Guard to prevent and suppress the27
illegal entry of these goods, smuggling and other forms of customs fraud and violations28
of maritime law and its proper surveillance of vessels entering and/or leaving29
8/20/2019 CMTA Bicameral Approved Copy
26/150
26
Philippine territory as provided in Republic Act No. 9993, otherwise known as the1
“Philippine Coast Guard Law of 2009” shall continue to be in force.2
SEC. 307. Temporary Storage of Goods . – Subject to the rules and regulations3
to be issued by the Secretary of Finance, the Commissioner shall establish a system for4
temporary storage of imports prior to goods declaration in case of abandoned or5
overstaying goods.6
TITLE IV7
IMPORT CLEARANCE AND FORMALITIES8
CHAPTER 19
GOODS DECLARATION10
SEC. 400. Goods to be Impor ted through Customs Off ice . – All goods11
imported into the Philippines shall be entered through a customs office at a port of12
entry, or may be admitted to or removed from a free zone as defined in this Act, as the13
case may be.14
SEC. 401. Impo rtat ions Subject to Goods Declarat ion . – Unless otherwise15
provided for in this Act, all imported goods shall be subject to the lodgement of a goods16
declaration. A goods declaration may be for consumption, for customs bonded17
warehousing, for admission, for conditional importation, or for customs transit.18
SEC. 402. Goods Declarat ion for Consumpt ion. – All goods declaration for19
consumption shall be cleared through a formal entry process except for the following20
goods which shall be cleared through an informal entry process: 21
(a) Goods of a commercial nature with Free on Board (FOB) or Free Carrier At22
(FCA) value of less than Fifty Thousand Pesos (P50,000.00). Every three (3) years after23
the effectivity of this Act, the Secretary of Finance shall adjust this amount as provided24
herein to its present value, using the Consumer Price Index (CPI) as published by the25
PSA; and26
(b) Personal and household effects or goods, not in commercial quantity,27
imported in a passenger’s baggage or mail. 28
8/20/2019 CMTA Bicameral Approved Copy
27/150
27
The Commissioner may adjust the value of goods of commercial nature that shall1
be cleared through an informal entry process without prejudice to the periodic2
adjustment period in subparagraph (a) of this section.3
All importations entered through a formal entry process shall be covered by a4
letter of credit or any verifiable commercial document evidencing payment or in cases5
where there is no sale for export, by any commercial document indicating the6
commercial value of the goods.7
SEC. 403. Provis ional Goo ds Declarat ion . – Where the declarant does not8
have all the information or supporting documents required to complete the goods9
declaration, the lodging of a provisional goods declaration may be allowed: Provided, 10
That it substantially contains the necessary information required by the Bureau and the11
declarant undertakes to complete the information or submit the supporting documents12
within forty-five (45) days from the filing of the provisional goods declaration, which13
period may be extended by the Bureau for another forty-five (45) days for valid reasons.14
If the Bureau accepts a provisional goods declaration, the duty treatment of the15
goods shall not be different from that of goods with complete declaration.16
Goods under a provisional goods declaration may be released upon posting of17
any required security equivalent to the amount ascertained to be the applicable duties18
and taxes.19
SEC. 404. Owner of Imp orted Goods . – All goods imported into the Philippines20
shall be deemed to be the property of the consignee or the holder of the bill of lading,21
airway bill or other equivalent transport document if duly endorsed by the consignee22
therein, or, if consigned to order, duly endorsed by the consignor. The underwriters of23
abandoned goods and the salvors of goods saved from wreck at sea, coast, or any area24
of the Philippines, may be regarded as the consignees.25
SEC. 405. Liabi l i ty of Impo rter for Dut ies and Taxes . – Unless relieved by26
laws or regulations, the liability for duties, taxes, fees, and other charges attached to27
importation constitutes a personal debt due and demandable against the importer in28
favor of the government and shall be discharged only upon payment of duties, taxes,29
8/20/2019 CMTA Bicameral Approved Copy
28/150
28
fees, and other charges. It also constitutes a lien on the imported goods which may be1
enforced while such goods are under customs’ custody. 2
SEC. 406. Imp ortat ions by the Government . – Except those provided for in3
Section 800 of this Act, all importations by the government for its own use or that of its4
subordinate branches or instrumentalities, or corporations, agencies or instrumentalities5
owned or controlled by the government, shall be subject to the duties, taxes, fees, and6
other charges under this Act.7
SEC. 407. Good s Declarat ion and Period o f Fi l ing . – As far as practicable,8
the format of the goods declaration shall conform with international standards. The data9
required in the goods declaration shall be limited to such particulars that are deemed10
necessary for the assessment and collection of duties and taxes, the compilation of11
statistics and compliance with this Act. The Bureau shall require the electronic12
lodgement of the goods declaration.13
The Bureau shall only require supporting documents necessary for customs14
control to ensure that all requirements of the law have been complied with. Translation15
of supporting documents shall not be required except when necessary.16
Goods declaration must be lodged within fifteen (15) days from the date of17
discharge of the last package from the vessel or aircraft. The period to file the goods18
declaration may, upon request, be extended on valid grounds for another fifteen (15)19
days: Provided, That the request is made before the expiration of the original period20
within which to file the goods declaration: Provided, however, That the period of the21
lodgement of the goods declaration may be adjusted by the Commissioner.22
SEC. 408. Lod gement and Amendm ent Good s Declarat ion . – The Bureau23
shall permit the electronic lodgement of the goods declaration at any designated24
customs office. The Bureau shall, for valid reason and under terms and conditions25
provided by regulation, permit the declarant to amend the goods declaration that has26
already been lodged: Provided, That the request to amend the goods declaration,27
together with the intended amendments, must be received prior to final assessment or28
examination of the goods.29
8/20/2019 CMTA Bicameral Approved Copy
29/150
29
SEC. 409. Adv ance Lodg ement and Clearance . – The Bureau may provide1
for the lodgement and clearance of goods declaration and supporting documents prior2
to the arrival of the goods under such terms and conditions as may be provided by rules3
and regulations to be promulgated under this Act.4
SEC. 410. Entry of Goods in Part for Consumption and in Part for5
Warehousing . – Goods declaration covered by one bill of lading or airway bill over6
goods which are meant in part for consumption and in part for warehousing may be7
both entered simultaneously for release at the port of entry.8
SEC. 411. Contents o f Good s Declarat ion . –
Goods declarations shall contain9
the names of the consignee, importing vessel or aircraft, port of departure, port of10
destination and date of arrival, the number and marks of packages, or the quantity, if in11
bulk, the nature and correct commodity description of the goods contained therein, its12
value as set forth in a proper invoice, and such other information as may be required by13
rules and regulation. Where the declarant does not have all the information required to14
make the goods declaration, a provisional or incomplete goods declaration shall, for15
certain cases and for reasons deemed valid by the Bureau, be allowed to be lodged:16
Provided, That it contains the particulars deemed necessary by the Bureau for the17
acceptance of the entry filed and that the declarant undertakes to complete it within18
forty five (45) days from the filing of the provisional goods declaration in accordance19
with Section 403 of this Act. 20
SEC. 412. Statements to be Provided in the Good s Declarat ion . – No entry21
of imported goods shall be allowed unless the goods declaration has been lodged with22
the Bureau. The goods declaration shall, under penalties of falsification or perjury,23
contain the following statements:24
(a) The invoice and goods declaration contain an accurate and faithful account of25
the prices paid or payable for the goods, and other adjustments to the price actually26
paid or payable, and that nothing has been omitted therefrom or concealed whereby the27
government of the Republic of the Philippines might be defrauded of any part of the28
duties and taxes lawfully due on the goods; and29
8/20/2019 CMTA Bicameral Approved Copy
30/150
30
(b) To the best of the declarant’s information and belief, all the invoices and bills1
of lading or airway bills relating to the goods are the only ones in existence relating to2
the importation in question, and that these documents are in the same state as when3
they were received by the declarant, and the declaration thereon are in all respects4
genuine and true.5
Goods declaration shall be submitted electronically pursuant to Republic Act No.6
8792, otherwise known as the “Electronic Commerce Act of 2000”. Such declarations7
when printed and certified by a competent customs officer as a faithful reproduction of8
the electronic submission shall be considered as actionable documents for purposes of9
prosecuting a declarant if the declarations are found to be fraudulent.10
SEC. 413. Descr ipt ion of Goods . – Under such terms and conditions11
prescribed under the rules and regulations, the description of the goods in the goods12
declaration must be sufficient and specific in detail to enable the goods to be identified13
for customs valuation, statistical purposes, and classification to the appropriate tariff14
heading and subheading in the currency of the invoice, and in such other particulars15
necessary for the proper assessment and collection of duties and taxes. The quantity16
and value of each of the several classes of goods shall be separately declared17
according to their respective headings or subheadings and the totals of each heading or18
subheading shall be duly shown.19
SEC. 414. Commercial and Non -Comm ercial Invo ice . – Commercial invoice20
of imported goods shall contain the following:21
(a) the agreed price paid or to be paid for the goods;22
(b) the adjustments to the price paid or to be paid as defined in Section 701 (1) of23
this Act, if not yet included in the invoice, as may be applicable;24
(c) the names of the buyer, seller, and the time and place of sale;25
(d) the port of entry;26
(e) a sufficient description to enable the accurate identification of goods for tariff27
classification, customs valuation, and statistical purposes, indicating the correct28
commodity description, in customary term or commercial designation, the grade or29
8/20/2019 CMTA Bicameral Approved Copy
31/150
31
quality, numbers, marks or symbols under which they are sold by the seller or1
manufacturer, together with the marks and number of packages in which the goods are2
packed;3
(f) the quantities in the weights or measures of the goods shipped; and4
(g) any other fact deemed necessary for the proper examination, customs5
valuation, and tariff classification of the goods as may be prescribed by rules and6
regulation.7
To the extent possible, the above requirements shall also apply to goods8
imported but not covered by sale, such as goods on consignment or lease, samples, or9
donations, covered by a consignment, pro forma invoice, or other non-commercial10
invoice.11
SEC. 415. Mode of Payment and Terms o f Trade . – Subject to existing laws12
and rules on foreign currency exchange, the internationally accepted standards and13
practices on the mode of payment or remittance covering import and export14
transactions, including standards developed by international trading bodies such as the15
International Chamber of Commerce (ICC) on trading terms (incoterms) and on16
international letters of credit such as the Uniform Customs and Practice for17
Documentary Credits (UCP), shall be recognized.18
SEC. 416. Examinat ion of Samples . – Customs officers shall see to it that19
representative samples taken during examination shall be properly receipted for and20
retained within a reasonable period of time. The quantity and value of the samples21
taken shall be noted in the specified box of goods declaration or electronic form. Such22
samples shall be duly labeled as will definitely identify them with the importation for23
which they are taken.24
SEC. 417. Forwarding o f Cargo and Remains of Wrecked Vessel or Aircraf t . 25
– When vessels or aircrafts are wrecked within the Philippines, the original owners or26
consignees of the cargo, or by its underwriters, in case of abandonment, may seek27
approval from the Bureau to forward the goods saved from the wreck to the ports of28
destination without going through the customs office in the district in which the goods29
8/20/2019 CMTA Bicameral Approved Copy
32/150
32
were cast ashore or unloaded. Upon approval, the goods may be forwarded with1
particular manifests and duly certified by a customs officer in charge of the goods.2
The owner of the vessel or aircraft may be permitted to export the remains of the3
wreck upon proper examination and inspection. The remains of a wrecked vessel shall4
include not only its hull and rigging, but also all sea stores, goods and equipment, such5
as sails, ropes and chain anchors.6
SEC. 418. Derel ic ts and Goo ds from Abando ned Wrecks . – Derelicts and7
all goods recovered from sea or from abandoned wrecks shall be under the jurisdiction8
of the port where the goods arrive, and shall be retained in the custody of the Bureau. If9
not claimed by the owner, underwriter or salvor, the same shall be deemed as property10
of the government.11
When such goods are brought into port by lighters or other craft, each vessel12
shall submit a manifest of their respective cargo.13
The customs officer nearest the scene of the wreck shall take charge of the14
goods saved and shall give immediate notice to the District Collector or the nearest15
customs office.16
In order to prevent any attempt to commit fraud, the District Collector shall be17
represented at the salvage of the cargo by customs officers who shall examine and18
receive the inventory made on the cargo.19
Derelicts and goods salvaged from foreign vessels or aircrafts recovered from20
sea or wreck are prima facie dutiable and may be entered for consumption or21
warehousing. If claimed to be of Philippine production, and consequently conditionally22
duty-free, proof must be submitted as in ordinary cases of re-importation of goods.23
Foreign goods landed from a vessel or aircraft in distress is dutiable if sold or disposed24
of in the Philippines.25
Before any goods taken from a recent wreck are admitted to the customs26
territory, the same shall be appraised, and the owner or importer shall have the same27
right to appeal as in ordinary importation.28
8/20/2019 CMTA Bicameral Approved Copy
33/150
33
No part of a Philippine vessel or aircraft or its equipment, wrecked either in1
Philippine or foreign waters, shall be subject to duty. 2
CHAPTER 23
EXAMINATION OF GOODS4
SEC. 419. Examinat ion of Good s . – Examination of goods, when required by5
the Bureau, shall be conducted immediately after the goods declaration has been6
lodged. Priority in the examination shall be given to live animals, perishable goods and7
other goods requiring immediate examination.8
Whenever necessary, a system of coordination and joint examination of goods9
shall be established by the Bureau and other regulatory agencies under existing laws10
and regulations.11
As a general rule, the Bureau may examine the goods in the presence of the12
declarant or an authorized representative. Examination of the goods in the absence of13
the declarant or authorized representative may be allowed in exceptional circumstance14
and for valid and justifiable grounds, as may be defined by regulations promulgated by15
the Secretary of Finance, upon recommendation of the Commissioner. The Bureau may16
require the declarant to be present or to be represented at the examination of the goods17
or to render any assistance necessary to facilitate the examination.18
The Bureau shall take samples of the goods only when needed to establish the19
tariff description and value of goods declared, or to ensure compliance with this Act.20
Samples drawn shall be as minimal as possible.21
SEC. 420. Cond i t ions for Examinat ion . – Pursuant to internationally accepted22
standards, the Bureau may adopt non-intrusive examination of goods, such as the use23
of x-ray machines.24
Physical examination of the goods shall be conducted when:25
(a) it is directed by the Commissioner on account of a derogatory information;26
(b) the goods are subject to an Alert Order issued by competent authority;27
(c) the goods are electronically selected for physical examination;28
8/20/2019 CMTA Bicameral Approved Copy
34/150
34
(d) there are issues and controversies surrounding the goods declaration and1
the import clearance process; or2
(e) the importer or declarant requests for the examination of the goods.3
The Commissioner may exempt from physical examination the goods of4
authorized economic operators or of those provided for under any existing trade5
facilitation program of the Bureau.6
Physical examination, when required, shall be conducted in an expeditious7
manner.8
SEC. 421. Duties of Customs Off icer Tasked to Examine the Imported9
Goods . – In the examination, classification, and valuation of the goods, the customs10
officer shall:11
(a) determine whether the packages for examination and their contents are in12
accordance with the goods declaration, invoice and other pertinent documents;13
(b) take samples of the imported goods for examination or laboratory analysis14
when necessary;15
(c) issue a receipt for a sample taken and retained during examination; and16
(d) report whether the goods have been correctly declared as to value, quantity,17
measurement, weight, tariff classification and not imported contrary to law.18
Failure on the part of the customs officer to perform the above duties shall be19
penalized according to Section 1431 of Title XIV of this Act.20
SEC. 422. Custom s Expenses Const i tut ing Charges on Goods . – The cost21
of examination shall be for the account of the importer or exporter, subject to proper22
accounting and documentation. All expenses incurred by the Bureau for the handling or23
storage of goods and other necessary operations shall be chargeable against the24
goods, and shall constitute a lien thereon.25
CHAPTER 326
ASSESSMENT AND RELEASE27
SEC. 423. Determinat ion o f the De Minimis Value . –No duties and taxes shall28
be collected on goods with an FOB or FCA value of Ten Thousand Pesos (P10,000.00)29
8/20/2019 CMTA Bicameral Approved Copy
35/150
35
or below. The Secretary of Finance shall adjust the de minimis value as provided1
herein, every three (3) years after the effectivity of this Act. The value herein stated2
shall be adjusted to its present value using the CPI, as published by the PSA.3
SEC. 424. Duty of Custom s Off icer Task to Ass ess Imp orted Goods . – For4
purposes of assessing duties and taxes on imported goods, the customs officer shall5
classify, value, and determine the duties and taxes to be paid. The customs officer shall6
prepare and submit an assessment report as established under this Act.7
SEC. 425. Tentat ive Assessm ent of Good s Subject to Dispu te Sett lement. – 8
Assessment shall be deemed tentative if the duties and taxes initially assessed are9
disputed by the importer. The assessment shall be completed upon final readjustment10
based on the tariff ruling in case of classification dispute, or the final resolution of the11
protest case involving valuation, rules of origin, and other customs issues.12
The District Collector may allow the release of the imported goods under13
tentative assessment upon the posting of sufficient security to cover the applicable14
duties and taxes equivalent to the amount that is disputed.15
SEC. 426. Tentat ive Assessment of Provis ional Goods Declarat ion. – 16
Assessment of a provisional goods declaration shall be deemed tentative and such17
assessment shall be completed upon final readjustment and submission by the18
declarant of the additional information or documentation required to complete the19
declaration within the period provided in Section 403.20
SEC. 427. Readjustm ent of App raisal , Classi f icat ion o r Return. – Such21
appraisal, classification or return, as finally passed upon and approved or modified by22
the District Collector, shall not be altered or modified in any manner, except: 23
(1) Within one year after payment of the duties, upon statement of error in24
conformity with Section 912, as approved by the District Collector;25
(2) Within fifteen (15) days after such payment, upon request for reappraisal or26
reclassification addressed to the Commissioner by the District Collector, if the appraisal27
or classification is deemed to be low;28
8/20/2019 CMTA Bicameral Approved Copy
36/150
36
(3) Upon request for reappraisal and/or reclassification, in the form of a timely1
protest addressed to the District Collector by the interested party if the latter should be2
dissatisfied with the appraisal or return; or3
(d) Upon demand by the Commissioner after the completion of compliance audit4
in accordance with the provisions of this Act.5
SEC. 428. Assessment o f Duty on Less Than Entered Value. – Duty shall not6
be assessed in any case upon an amount less than the entered value, unless by7
direction of the Commissioner in cases when the importer certifies at the time of entry8
that the entered value is higher than the dutiable value and that the goods are so entered9
in order to meet increases made by the appraiser in similar cases then pending re-10
appraisement; and the lower assessment shall be allowed only when the importer's11
contention is sustained by a final decision, and shall appear that such action of the12
importer was taken in good faith after due diligence and inquiry.13
SEC. 429. Final Ass essment. – Assessment shall be deemed final fifteen (15)14
days after receipt of the notice of assessment by the importer or consignee. 15
SEC. 430. Period o f Limi tat ion. – In the absence of fraud and when the goods16
have been finally assessed and released, the assessment shall be conclusive upon all17
parties three (3) years from the date of final payment of duties and taxes, or upon18
completion of the post clearance audit.19
SEC. 431. Release of Good s after Payment of Duties and Taxes . – Goods20
declared shall be released when duties and taxes and other lawful charges have been21
paid or secured and all the pertinent laws, rules and regulations have been complied22
with.23
When the Bureau requires laboratory analysis of samples, detailed technical24
documents or expert advice, it may release the goods before the results of such25
examination are known after posting of sufficient security by the declarant.26
SEC. 432. Release of Good s to the Holder of Bi l l of L ading or A irway Bi l l . – 27
Any customs officer who releases goods to the consignee or lawful holder of the bill of28
8/20/2019 CMTA Bicameral Approved Copy
37/150
8/20/2019 CMTA Bicameral Approved Copy
38/150
38
Travelers shall be permitted to export goods for commercial purposes, subject to1
compliance with the necessary export formalities and payment of export duties, taxes,2
and charges, if any.3
SEC. 438. Postal Item or Mail . – Postal item or mail shall include letter-post4
and parcels, as described in international practices and agreements, such as the Acts5
of the Universal Postal Union (AUPU), currently in force.6
A simplified procedure shall be used in the clearance of postal item or mail,7
including the collection of the applicable duties and taxes on such items or goods.8
When all the information required by the customs are available in the special9
declaration form for postal items as provided in the AUPU or similar international10
agreements, the special declaration form and supporting documents shall be the goods11
declaration. However, a separate goods declaration shall be required for the following:12
(a) Goods whose value fall within the level that the Commissioner has13
determined to be taxable and thus must be covered by a goods declaration;14
(b) Prohibited and regulated goods;15
(c) Goods the exportation of which must be certified; and16
(d) Imported goods under a customs procedure other than for consumption.17
SEC. 439. Express Shipment . – The Bureau shall provide simplified customs18
procedures based on international standards and customs best practices for air19
shipments considered as time-sensitive and requiring pre-arrival clearance. Express20
shipments of accredited air express cargo operators may be released prior to the21
payment of the duty, tax, and other charges upon posting of a sufficient security.22
SEC. 440. Establ ishment of Ad vance Custom s Clearance and Control23
Program. – The Bureau may establish and implement a voluntary program on advance24
customs clearance and control on containerized cargoes. The details of the voluntary25
advance customs clearance shall be subject to the rules and regulations to be issued by26
the Bureau after conducting the necessary public hearings and consultations with the27
concerned sectors. 28
8/20/2019 CMTA Bicameral Approved Copy
39/150
8/20/2019 CMTA Bicameral Approved Copy
40/150
40
TITLE VI1
CUSTOMS TRANSIT AND TRANSSHIPMENT2
CHAPTER 13
CUSTOMS TRANSIT4
SEC. 600. Custom s Transi t in the Customs Terr itory . – Customs transit within5
the customs territory shall be allowed for goods except those intended for consumption,6
to be transported as follows:7
(a) from port of entry to another port of entry as exit point for outright exportation;8
(b) from port of entry to another port of entry or inland customs office;9
(c) from inland customs office to a port of entry as exit point for outright10
exportation; and11
(d) from one port of entry or inland customs office to another port of entry or12
inland customs office.13
A transit permit is required for goods transported under customs transit.14
However, transfer of goods in customs transit from one means of transport to another15
shall be allowed: Provided, That any customs seal or fastening is not broken or16
tampered.17
The party responsible for the compliance of the obligations imposed on customs18
transit shall ensure that the goods are presented intact and in due course at the19
customs office of destination. Failure to comply with the aforementioned obligations or20
likewise failure to follow a prescribed itinerary or period for delivery of the goods may21
immediately subject the goods to the corresponding duties, taxes, and other applicable22
fines, penalties, and surcharges.23
SEC. 601. Duty and Tax on Good s Intended for Transi t . – Transit goods24
admitted for storage in a customs bonded warehouse, or for outright exportation at the25
port of destination or inland customs office, and goods intended for transit covered by26
Republic Act No. 10668, otherwise known as “An Act Allowing Foreign Vessels to27
Transport and Co-Load Foreign Cargoes for Domestic Transshipment and for Other28
8/20/2019 CMTA Bicameral Approved Copy
41/150
41
Purposes”, shall not be subject to the payment of duties and taxes at the port of entry:1
Provided, That any conditions and security required by the Bureau are complied with.2
Goods for consumption and other goods intended for customs transit not covered3
by the immediately preceding paragraph shall be subject to the payment of duties and4
taxes at the port of discharge.5
SEC. 602. Carrier’s Security . – Carriers that transport imported goods that shall6
be placed under customs transit from a port of entry to other ports, shall post a general7
transportation security, amounting to at least Fifty Thousand Pesos (P50,000.00). Such8
security shall ensure the complete and immediate delivery of goods to the customs9
officer at the port of destination and the payment of pertinent customs charges and10
expenses and other transfer costs. The amount of the security may be adjusted by the11
Commissioner, upon approval of the Secretary of Finance.12
CHAPTER 213
CUSTOMS TRANSSHIPMENT 14
SEC. 603. Customs Transshipment . – Goods admitted for tr