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DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA
CUSTOMS ADMINISTRATION ORDER
NO. 2-91
SUBJECT: Rules and Regulation for the Establishment, Operations, Supervision,
and Control of Customs Bonded Warehouses.
By Authority of Section 608 and pursuant to the provision of Section 1901, 1909, and
Sections 2001-2004 of the TCCP, as amended; L.O.I. 1040; E.O. 226; and R.A. 3137, as
amended by E.O. 823, the following rules and regulations for the establishment, operation,
control and supervision of all type of customs bonded warehouse are hereby promulgated.
TITLE I
General Provision
Section 1.
The Bureau of Customs is responsible for the licensing, supervision, control of all
customs bonded warehouse.
Section 2.
Section 3.
Imported materials and/or accessories use in the manufacture of articles that are
transferred to other bonded manufacturing warehouses or members of a common
bonded manufacturing warehouse for processing into finished products or for its
own manufacture and thereafter exported shall also be exempted from paying any
duties and taxes. This privilege, however, shall not apply to implements,
machineries or apparatuses to be used to construct, repair or operate any bonded
manufacturing warehouse unless otherwise authorized by law.
Section 4.
Imported raw materials, accessories, and the like, of sold or used for domestic
consumption shall be subject to duties, taxes and other charges.
Section 5.
Section 6.
a.
b.
c.
Section 8.
The visitorial power of the Bureau of Customs over customs bonded warehouses
shall extend to sub-contractors, as well as the accredited members of customs
common bonded manufacturing warehouses.
Section 9.
During the transition period from the present system to the open bonded
warehouse system, the Bureau of Customs shall, as far as practicable, adopt new
methods and techniques in the supervision and control of customs bonded
warehouses. These shall include, but are not limited to, the computerization of all
bonded warehouse activities and transactions in order to render operational the
open bonded warehouse system.
TITLE II
Definitions
Section 10.
Section 11.
Section 12.
Section 13.
taxes on condition that these materials are manufactured into finished products for
subsequent exportation without a specified period.
Section 14.
Section 15.
Section 16.
Section 17.
Section 18.
Section 19.
Section 20.
Section 21.
Section 22.
Section 23.
Section 24.
Section 25.
Section 26.
Section 27.
Section 28.
Evaluation of the Application. The District Collector shall pass upon the merits of
the application to operate a customs bonded warehouse, including applications for
membership and subcontracting to a common bonded manufacturing warehouse.
The District Collector shall also evaluate the application to operate Multinational
Regional Warehouse, and submit his recommendation to the Board of
Investments.
Section 29.
Section 30.
Section 31.
Section 32.
Section 33.
Section 34.
Locks. The entrance to the Customs Bonded Warehouse shall have two (2) locks.
The key to one shall be kept by the customs personnel assigned to the warehouse.
The duplicates of all keys shall be submitted to the District Collector of
safekeeping.
Section 35.
Principal Books and Documents. The Commissioner of Customs shall require the
operator of the bonded warehouse to maintain a principal book at a designated
place for a period of five (5) years. The book shall contain information relevant to
the operation of the warehouse. In addition, the operator shall keep in the file for
the same period of five years all documents on its operations. Where there are
customs personnel assigned to the warehouse, the books and documents shall be
kept and maintained by them.
Section 36.
Central Office Principal Book. A principal book shall also be maintained and kept
at the Bonded Warehouse Division concerned.
Section 37.
Audits. An audit team from the office of the District Collector shall conduct
regular audits of customs bonded warehouse at least once a year, unless sooner
directed by the Commissioner Customs or the District Collector. The audit team
shall monitor the operations of the bonded warehouses, as well as determine
compliance with rules and regulations governing them.
Section 38.
Section 39.
Section 40.
Section 41.
Section 42.
the covering boat note by the customs personnel assigned thereat or by the duly
designated accountable officer of the operator.
Section 43.
Imported articles may be withdrawn from the warehouse either for manufacture
into export products; for repacking for distribution to foreign markets; for sale to
manufacturing bonded warehouse; for transfer to subcontractors or members of
common bonded manufacturing warehouses, or for domestic consumption. Those
articles withdrawn for domestic consumption shall be subject to payment of duties
and taxes.
Section 44.
Section 45.
Section 46.
Before bonds are canceled, the raw materials shall have to be liquidated first
together with the entry within the prescribed period.
TITLE V
PENALTIES
Section 47.
Section 48.
Any imported or finished article which is illegally withdrawn from the Customs
Bonded Warehouse shall be subject to forfeiture in accordance with Section 2530
of TCCP, as amended, or in case of payment of duties, taxes and other charges,
surcharges shall be additionally imposed under Section 2501-A of TCCP. The
unauthorized substitution of materials or finished products with local material or
article shall constitute illegal withdrawal.
Section 49.
Any person who enters a Customs Bonded Warehouse and unlawfully removes
there from any merchandized or baggage shall be punished with a fine of not
more than twenty thousand pesos (Php20,000) or imprisonment of not more than
five (5) years or both as provided in Section 3609 of the TCCP, as amended. The
same penalties shall be imposed on any person who receive or transport s any
merchandise unlawfully removed from such warehouse, or aids or abate such
removal. The operator of a Customs Bonded Warehouse who illegally withdraws
such merchandise, and any customs personnel who fails to report such illegal
withdrawal shall both be liable under Section 3604 of the TCCP, as amended.
7
Section 50.
Materials or articles not exported or withdrawn within the period allowed shall
pay duties and taxes, otherwise, the District Collector shall sell then at public
auction in order to satisfy the duties and taxes and other charges due from then.
Section 51.
Violation of any provision of this order for which delinquency no specific penalty
is provided by law shall be to the penalty provided in Section 3610 of the TCCP,
as amended. Ant violation of the terms and conditions of this order by the
operator shall be sufficient caused for the revocation or suspension of his license
to operate.
Section 52.
Section 53.
TITLE IV
REPEALING CLAUSE
Section 54.
CAO 1-80
CAO 4-80
CAO 5-80
CAO 4-81
TITLE VII
EFECTIVITY CLAUSE
Section 55.
This order shall take effect upon the approval of the Secretary of Finance.
SALVADOR N. NISON
Commissioner
APPROVED,
JESUS P. ESTANISLAO
Secretary of Finance
Date: January 16, 1991
Note:
This order shall take effect fifteen (15) days after its publication in a newspaper of
general circulation, which publication shall be initiated immediately by that Bureau.