TARIFF AND CUSTOMS LAWS

4.

immoral, obscene or insidious articles

5.

those prohibited under special laws

Substantive Aspect of Tariff and Customs Laws

B.

Articles Qualifiedly Prohibited:

Meaning and Scope

Refers to those which maybe imported but subject to, and after
compliance with, certain conditions.

Section 3514 (TCC)

Provides that Tariff and Customs Laws include not only the provisions of
the code itself and regulations pursuant thereto but all other laws and regulation which
are subject to enforcement by the Bureau of Customs or otherwise within its
jurisdiction. It extend not only to the provisions of the Tariff Customs Code but to all
other laws as well; like Central Bank Circulars, the enforcement of which is entrusted
to the Bureau of Customs.

Pertinent Cases:
1.

Where such conditions as to warrant lawful importation

neither do nor exist, the legal effects of the importation of
qualifiedly prohibited articles are the same as those of
absolutely prohibited articles. (Auyong Hian vs CTA, 59
SCRA 110)

Nature of Customs Duties and Tariff

2.

Prohibited importations one subject to forfeiture whether the

shipper and the consignee are one and the same person.
(UTE PATEROR vs. Bureau of Customs, 193 S 132)

3.

Conditionally-free importations:

1.

Custom duties:
Are duties which are one charged upon commodities on their being
imported into or exported out of a country.

2.

Tariff:

These are articles which are exempt from import duties upon
compliance with the formalities prescribed with regulations
promulgated by the Commission of Customs with the
approval of the Secretary of Finance. (Sec. 105, TCC)

Means a book of rates, a table or catalogue drawn usually in alphabetical

order containing the names of several kinds of merchandise with the
duties to be paid for the same as settled or agreed upon between several
states that holds commerce together.

This article includes:

1.

Those prohibited for in Sec. 105 of the Tariff and

Customs Code;

2.

Those granted to government agencies, governmentowned or controlled corporations with agreement with
foreign countries;

3.

Those given to international institutions, entitled to

exemption by agreement or special laws; and

4.

Those that maybe granted by the President upon

NEDAs recommendation.

Concept of Goods for Customs duty purposes:

As to Imported Articles:
All articles when imported from any foreign country into the Philippines
shall be subject to duty upon each importation even thought previously exported from
the Philippines. Except as otherwise specifically provided for in the code or other
laws:
As to Exported Articles
Certain articles like specific types of wood, mineral plant, vegetable and
animal products are subject to tariff and premium duties.
Note: Articles: When used with reference to importation or exportation includes goods,
wares and merchandise and, in general anything that maybe made the subject of
exportation and importation.

Liability for Custom Duties

General Rule: All importations / exportation of articles / goods are subject
to customs duties.
Exceptions:

Pertinent Case:

1.

Exempt under the TCC.

4 US dollars, having ceased to be legal tender in the Philippines, fall

within the meaning of the term merchandise (Bastida vs. Acting Commissioner of
Customs, et al, L-24011, Oct. 24, 1970)

2.

Exemption granted to government agencies, instrumentalities with existing

contracts, commitment, agreements or obligations with foreign countries.

3.

Exempt international organizations pursuant to agreements or special

laws; and

4.

Exempt by the President upon recommendation of NEDA.

Articles / Goods Covered under the Tariff and Customs Code:

1.

Articles subject to duty

General Rule: All articles when imported from a foreign country including
those previously exported from the Philippines one subject to duty unless
otherwise specifically provided for in the Tariff and Customs Code or other
laws. (Sec. 100, TCS)

2.

Prohibited Importations

Liability of Importer for Custom Duties:

1.

A personal debt which can be discharged only by payment in full thereof;

2.

A lien upon the imported article while they are in custody or subject to the
control of the government.

Classifications:
Valuation of the Goods:
A.

Articles which are absolutely prohibited:

Invoice value of the goods plus:
1.

weapons of war

2.

gambling devices

3.

narcotics or prohibited drugs

1.

freight

2.

insurance

3.

cost

4.

expenses, and

5.

other necessary expenses.

a.

The price of the imported article is deliberately or continually

fixed at less than the fair market value or cost of production;
and

b.

Importation would cause or likely cause and injury to local

industries engaged in the manufacture or production of the
same or similar articles or prevent their establishment.

Note: Imported goods must be entered into a custom house at their port of entry
otherwise they shall be considered as contraband and the importer is liable for
smuggling.

Amount of special duty: extent of the under pricing.

Import entry

2.

It is a declaration in the Bureau of Customs showing particulars of the

imported article that will enable the customs authorities to determine the correct duties.
1.

Countervailing duty
Special duty imposed on imported articles which are granted any
kind or form of subsidy by the government in the country or origin or
exportation, the importation of which has caused or threatens to
cause material injury to a domestic industry or has materially
relaided the growth or, prevents the establishment of a domestic
industry. (RA #8751)

When importation does begin?

Importation begins when the carrying vessel or aircraft enters the
jurisdiction of the Philippines with the intention to unlade therein.

Requisites:
2.

When is it terminated / ended?

Importation is deemed terminated upon payment of duties, taxes and
other charges due upon the articles pr secured to be paid at a port of
entry and the legal permit for withdrawal shall gave been granted or in
case said articles are free of duties, taxes and other charges, until they
have legally left the jurisdiction of the customs (Sec. 1202, TCC)

Note: All imported articles into the Philippines, whether subject to duty or not, shall be
entered through a customs house at a port of entry.
1.

3.

Port of Entry

3.

2.

The importation is likely to insure materially established local

industries or prevent their establishments.

Marking Duty

Exportation

Special duty of five percent (5%) advalorem imposed or articles

properly marked, collected by the commissioner, except when such
article is exported or destroyed under the customs supervision and
prior to final liquidation of the corresponding entry.

It is the bringing out of goods from the Philippines territorial jurisdiction.

Purpose: To prevent possible deception of the consumers.

Under Executive Order # 26, Series of 1986, Export taxes, except on

logs, have been suspended

4.

Regular / Ordinary Duties

These are duties imposed on imported articles that enter the country of
the Philippines in avoidance with the schedules and classifications
provided under the Tariff and Customs Code.

5.

Classification:
1.

Discriminatory/Retaliatory duty
Imposed on imported goods whenever it is found as a fact that the
country of origin discriminates against the commerce of the
Philippines in such a manner as to place the commerce of the
Philippines at a disadvantage compared with the commerce of any
foreign country.

Kinds of Custom Duties

A.

The levy of an excise tax or inland tax or local goods of the

same or similar class as the article imported or the grant of
subsidy to the foreign exporter by his government; and

Amount of special duty: Equal to the bounty or subsidy or

subvention.

Means a domestic open to both foreign and continuous trade including

airport of entry.
2.

1.

Duties imposed under the Flexible Tariff Clause (Sec. 401,

TCC)
Import duties which are modified by the President upon
investigation of the Tariff Commissions and recommendation of the
National Economic Development Authority in the interest of national
economy, general welfare and national security.

Advalorem Duty
Duty based on the value of the imported article.

2.

Specific Duty
Duty based on the dutiable weight of goods number or
measurement.

B.

The President is given by the Tariff and Customs Code ample powers to adjust tariff
rates Sec. 401 of TCC; empowers the president to:
1.

Increase, reduce, or remove existing protective rates of import duty;

2.

Establish import quota or to ban imports of any commodity;

3.

Impose and additional duty on all imports not exceeding 10% advalorem
whenever necessary.

Special Duties
Imposed in addition to regular or ordinary duties principally in order to
protect local industries against unfair competition from foreign
manufacturers or procedures; consumer against possible deceptions; and
national interest.

Limitations imposed regarding the Flexible Tariff Clause:

Classifications:
1.

1.

Conduct by the Tariff Commission of an investigation in which a public

hearing shall be hold wherein interested parties shall be afforded
reasonable opportunity to be present, produce evidence and to be heard;

2.

The commission shall also hear the views and recommendations of any
government office, agency or instrumentality concerned;

Dumping Duty
Imposed by the secretary of Finance upon the recommendation of
the Tariff Commission when:

3.

The commission shall submit their findings and recommendations to the

NEDA within 30 days after the termination of the public hearings. The
NEDA thereafter, submits its recommendation to the President.

Composed of one chief and 2 assistant chiefs known as commissioner of

customs, appointed by the President respectively.
Functions of the Bureau of Customs (CASE)

Administrative Aspect of
Tariff and Customs Laws

1.

Control smuggling and related frauds.

2.

Assessment and collection of Revenues from imported articles and all

other impositions under the tariff and customs laws.

3.

Supervision and control over due entrance and clearance of vessels and
aircraft engaged in foreign commerce.

4.

Enforcement of Tariff and Custom Code and related laws.

5.

Supervision on control over the handling of foreign mails arriving in the

Philippines.

6.

Supervise and control all import and export cargos for the protection of the
government revenue.

7.

Exclusive original jurisdiction over seizure and forfeiture cases under the
tariff and customs laws.

Agencies directly concerned with Tariff and Customs Administration:

TARIFF COMMISSION
Officials of the Tariff Commission are the chairman and 2 member
Commissioners, all appointed by the President.
Functions:
A.

Investigative Powers:
1.

Administration and the fiscal and industrial effect of the Tariff and
Customs laws of this country now in force or when hereafter be
enacted;

2.

Relations between the rates of duty on raw materials and the

finished or partly finished products;

3.

Effects of ad valorem and specific duties and of compound, specific

and ad valorem duties;

4.

All questions relative to the arrangement of schedules and

classification of articles in several sections of the tariff law;

5.

Tariff relations between the Philippines and the Foreign countries,

commercial treaties, preferential provisions, economic alliances, the
effect of export bounties and preferential transportation rate;

6.

Volume of importations compared with domestic production and

consumption;

7.

Conditions, causes and effects relating to completion of foreign

industries with those of the Philippines, including dumping and cost
of production;

Other Powers:
1.

Supervision of collection districts and ports of entry, coast ruse trade,

vessels an aircrafts used in foreign trade;

2.

Ascertainment, collection and recovery of import duty;

3.

Warehousing of imported articles; and

4.

Administrative proceedings like search , seizure and arrest, including

forfeitures.
Commissioner of Customs is vested with authority to:

8.

9.
B.

A.

Assess

B.

Collect

In general, to investigate the operation of customs and tariff laws,

including their relations to the national revenues, their effect upon
the industries or labor of the country and to submit reports of its
investigation;

1.

All lawful revenues from imported articles;

2.

All other dues, fees, charges, fines and penalties.

Nature and composition and the classification and heading number

for customs revenue and other related purposes.

Administrative Assistance to the President and Congress

1.

Ascertain conversion costs and costs of production:

a.

Procedural Aspect of
the Tariff and Customs Laws

In the principal growing, producing or manufacturing:

1.

Centers in the Philippines whenever possible;

2.

Centers in foreign countries; whenever necessary;

Nature of Customs Protest; Seizures and Forfeiture cases

There are two kinds of proceedings in the Bureau of Customs, these are:
b.
2.

Including effects of tariff modifications or import restriction or

prices.

a.

Customs protest cases- deal safely with liability for customs, duties, fees
and other charges.

Select and describe representative articles imported to the

Philippines similar to or comparable with those locally produced

b.

Seizure and forfeiture cases- refer to matters involving smuggling or the

act of any person who fraudulently imports or brings into the Philippines,
or assists in so doing, any article contrary to law, or shall receive, conceal,
buy, sell or in any manner facilitate the importation, concealment, or sale
of such auricles after importation, knowing the same to have been
imported contrary to law smuggling includes the exportation act of articles
in a manner contrary to law. (Sec. 3154, TCC).

3.

Ascertain imposts costs of such representative articles so selected.

4.

Ascertain the growers producers or manufacturers selling prices.

5.

Submit annual reports of these to the President of the Philippines,

copies of which shall be furnished to the NEDA, BSP, Dept. of
Finance and the Bureau of Investments.

BUREAU OF CUSTOMS

Procedure in Custom Protest Cases

These are the steps:

1.

2.

The importer / owner makes the payment after the final liquidation.

3.

The importer / owner adversely affected by the collectors ruling may file
a written protest with the Collector of custom at the time of payment or
within 15 days thereafter.

4.

The Collector of Customs issues an order for hearing within 15 days from
receipt of the protest and renders his decision within 30 days from the
termination of hearing.

5.

Imported articles which Maybe the subject to seizures for violation of the
Tariff and Customs laws maybe pursued in their transportation in the
Philippines by land, water or air, and such jurisdiction exerted over them at
any place therein as may be necessary for the due enforcement of the
law. (Sec. 603, TCC)

The collector of customs shall cause all the articles entering the
jurisdiction of his district and destined for importation through his port to
be entered at the customs house. He shall appraise and classify such
articles, and shall assess and collect the duties, taxes and other charges
thereon. He shall also hold possession of all imported articles upon which
duties, taxes, and other charges have not been paid of secured to be
paid.

In case an adverse decision is rendered within the 30-day period from the
termination, the importer/owner may appeal to the Commissioner of
Customs within 15 days after notification of decision or lapse of the 30day period to decide. The importer/ owner may give written notice to the
collector and one copy furnished to the Commissioner of his desire to
have the matter reviewed by the Commissioner. The Collector shall
forthwith transmit all the seconds of the proceedings to the Commissioner.

6.

In case an adverse decision is rendered, the importer/ owner may appeal

to the Court of Tax Appeals within 30 days from receipt of the decision;
and

7.

In case an adverse decision is still rendered, the importer/ owner may

appeal to the Court of Appeals and the Supreme Court.

Pertinent Case:
The Supreme Court upheld the seizure and forfeiture as valid despite the
fact that the importation had not yet begun and that the seizure was
affected outside the Philippine waters. The Supreme Court held that the
authority of a nation within its own territory is absolute and exclusive. The
power to secure itself from injury may certainly be exercised beyond the
limits of its territory. (Qiluh Asaali, et al. vs. Commissioner of Customs, L24170, Feb. 28, 1969).
b)

Place where Searchers and Seizures may be conducted

1)

Right of the Police \ officers to Enter Enclosure

Any person exercising police power conferred under such code may
at any time enter, pass through, or search any land or enclosure, or
any warehouse, store or other building, not being a dwelling house.
A warehouse, store or other building or enclosure used for the
keeping or storage of article does not become a dwelling house
within the meaning hereof merely by reason of the fact that a
person employed as a watchman lives in the place, nor will the fact
that his family stays there with him alter the case.

2)

Search of Dwelling House

A Dwelling house may be entered and searched only upon warrant
issued by a judged.

Automatic Review in Customs Proceedings

Whenever the decision of the Collector is adverse to the Government, said
decision is automatically elevated to the Commissioner for review, and if such
decision is affirmed by the commissioner, the same shall be automatically
elevated to and finally received by the Secretary of Finance.

Note: Except in the case of the search of a dwelling house, persons

exercising police authority under the customs may effect search and
seizure without a search warrant in the enforcement of custom laws.
3)

Rationale: It is intended to protect the interest of the Government in the

collection of taxes and custom duties in seizures and protest cases. Moreover, a
favorable decision will no be appealed by the taxpayer and certainly a collector
will not appeal his own decision (See Yaokasin vs. Commissioner of Customs, et
al. G.R. No. 84111; Dec. 22, 1989.)

It is lawful for any person exercising police authority under the TCC
to go aboard any vessel or aircraft within the limits of any Collection
district and to inspect, search and examine said vessel or aircraft
and any other trunk, package, box as envelope on board, and to
search any person on board the said vessel or aircraft if underway,
to use all necessary force to compel compliance; and if it shall
appear that any breach or violation of the customs and tariff laws of
the Philippines has been committed, whereby or in consequence of
which such vessel or aircraft, or the article, or any part thereof on,
on board of or imported by such vessel or aircraft is liable to
forfeiture, to make seizure of the same.

Automatic Review Applies to:

1)

Custom Protest Cases

2)

Seizures and Forfeiture Cases

Right to search vessels or Aircraft and Persons or Articles

Conveyed therein

Custom Seizures and Forfeiture Cases

Note: 1) Such power shall extend to the removal of any false bottom,
partition, bulkhead or other obstruction. 2) No proceeding herein
shall give rise to any claim fro the damage caused to the article or
vessel or aircraft.

Basic Concepts:
a)

Jurisdiction of Customs in Seizures and Forfeiture

Related Provisions:

1)

The territorial jurisdiction of the Bureau of Customs embraces all seas

within the jurisdiction of the Philippines, and over all coasts, ports,
harbors, bays, rivers and inland waters whether navigable or not from the
sea. (Sec. 603, TCC)

Right to Search Vehicles, Beast and Persons

It shall also be lawful for a person exercising authority to open and
examine any box, trunk, envelope or other container, wherever
found when he has reasonable cause to suspect the presence of
dutiable or prohibited article or article introduced into the Philippines
contrary to law and likewise to stop, search ad examine any vehicle,
beast or person reasonably suspected of holding or conveying such
article.

Extra-Territorial jurisdiction
(Right of Hot Pursuit):
2)
Whether a vessel becomes a subject to a seizure by reason of an act
done in the Philippine waters, in violation of the Tariff and Customs Laws,
a pursuit of such vessel, begins with the jurisdictional waters may contain
beyond the maritime zone, and the vessel may be seized in the high seas.
(Sec. 603, TCC).

Search of Persons Arriving from Foreign Countries

All persons coming in the Philippines from the foreign countries
shall be liable to detention and search by the Customs Authorities
under such regulations as may be prescribed relative thereto. (Sec.
603, TCC)

Non-necessity of Search Warrant

plane was also used to bring in de gaza kerosene lanterns and kerosene
used to light the airstrip to facilitate the loading of the cigarettes. The plane
was subject to forfeiture pursuant to Sec. 2530 (a) of the Tariff and Customs
Code. It is not necessary that the vessel or aircraft must carry the
contraband. It is not likewise essential that the vessel or aircraft must come
from a foreign country.

General Rule: Persons exercising police authority under the customs laws may effect
search and seizures without a search warrant in the enforcement of customs laws.
(See Sec. 2208, TCC)
Exception: In the case of a dwelling house (Pacis etc. vs. Pamaran, March 15, 1974).
Reason: On grounds of practicality.

Commissioner of Customs vs.

CTA and Jose Pascual
138 SCRA 581

Pertinent Cases on Searches and Seizures

1)

2)

3)

The legality of a search can be contested only by the party whose rights
have been impaired thereby and that the objection to an unlawful search
and seizure is purely personal and cannot be availed of by third parties.
(Nasiad, et al. vs. CTA, Nov. 29, 1994)

The Supreme Court ruled that the forfeiture of Pascuals vessel used in
the illegal importation of untaxed cigarettes is justified.
Forfeiture, according to the Citing the case of Vierneya vs. Commissioner
of Customs (July 30, 1968), is in the nature of proceedings in rem and is
directed against the res. The fact that the owner of the vessel had no
actual knowledge that the vessel was illegally used does not render the
vessel immune from forfeiture. This is so because the forfeiture action is
against the vessel itself.

Warrants of seizure and detention issued by the Collector of C covering

the seizure of imported goods are not general warrants issued in violation
of Section 3 (now section 4), rule 126 of the Rules of Court. Upon
effecting the seizure of the goods, the Bureau of Customs acquired
exclusive jurisdiction not only over the case but also over the goods
seized for the purpose of enforcing the tariff and Customs laws. (Chia vs.
Acting Collector of Customs, Sept. 26, 1989)

Note: The said vessel was duly authorized to engage in coasturse trade
but has no certificate of public convenience.

The proceedings upon search warrants must be absolutely legal, for

there is not a description of process known to the law, the execution of
which is more distressing to the citizen. Perhaps there is none which
excites such intense feeling in the consequence of its humiliating and
degrading effect. The warrants will always be constured strictly without
however, going the full length of requiring technical accuracy. No
presumptions of regularity are to be invoked in aid of process when an
officer undertakes to justify under it. (Uy vs. BIR, Oct. 20, 2000)

Transglobe International Inc.

vs. Court of Appeals
G.R. No. 126634,
January 25, 1999.
Forfeiture of seized goods in the Bureau of Customs is a proceeding
against the goods and not against the owner. It is the nature of a
proceeding in rem, i.e. directed against the res or imported article and
entails a determination of the legality of their importation. In this
proceeding, it is in legal contemplation the property itself which commits
the violation and is treated as the offender, without reference whatsoever
to the character or conduct of the owner.

Customs Forfeiture Actions

1.

What kind of Actions are Customs Forfeiture?

2.
An action for the forfeiture of seized goods in the Bureau of Customs is an
action in rem, or action taken against the Imported goods themselves
independently arising from any criminal action or action in personam that
may result as a consequence of a violation of an existing law. Lack of
knowledge by the owner does not generally render the vessel immune from
forfeiture. However, the forfeiture of a private carrier used in the
conveyance of illegally imported or exported articles requires knowledge on
the part of the carrier-owner or his agent of the unlawful act. A prima facie
presumption shall exist against the vessel, vehicle or aircraft under any of
the following circumstances:
1.

If the conveyance has been used for smuggling at least twice

before;

2.

If the owner is not in the business for which the conveyance is

generally used; and,

3.

If the owner is not financially in a position to own such conveyance.

Forfeiture Cases and the Doctrine Primary Jurisdiction

The Doctrine of primary jurisdiction provides that the Bureau of Customs
acquired exclusive jurisdiction over imported goods for the purpose of the
enforcement of the Customs laws from the moment the goods are actually
in its possession or control even if no warrant of seizure or detention had
previously been issued by the collector of the Customs. Primary
jurisdiction is vested in seizures and forfeiture proceedings in the collector
and the Commissioner or the Customs to the exclusion of the regular
courts. (Commissioner of Customs vs. Navarro, L-33146, May 31, 1977)
Rationale of the doctrine: It is anchored on the policy of placing no
necessary hindrance on the Governments drive not only to prevent
smuggling and other frauds upon Customs but also to render effective the
collection of import and export duties duet to the State. (Jao, et, al. vs.
Court of Appeals, et al. G.R. Nos. 104604 and 111223, Oct. 6, 1995).
Pertinent Cases:
1.

Proceedings for the forfeiture of goods illegally imported are civil

and administrative not criminal in nature since they do not result in
the conviction of the wrongdoer nor in the imposition upon him of a
penalty (Collector vs. Villaluz, L-34038, June 18, 1976;
Commissioner vs. Navarro, supra; Republic vs. Bocar, supra).

2.

Proof beyond reasonable doubt is not required to warrant

forfeiture (Feeder International vs. CA, 197 SCRA 842).

3.

The Collector of Customs, when sitting in forfeiture proceedings,

constitutes a tribunal upon which the law expressly confess
jurisdiction to hear and determine all questions touching on the
forfeiture and further disposition of the illegal imported mechanics
(Government of the P.I. vs. Gale, 24 Phil 95; Auyong Hian vs. CTA,
19 SCRA 10).

4.

Jurisprudence is replete with cases which have held that regional

trial courts are devoid of any competence to pass upon the validity
of seizure and forfeiture proceedings conducted in the Bureau of
Customs and to enjoin, or otherwise interfere with these

Pertinent Cases:
Acting Commissioner of Customs
vs. CTA
The dismissal of the criminal charge in the Fiscals office against respondent
Andrulis does not constitute re judicata in the forfeiture proceedings.
Forfeiture is in rem, whereas a criminal action is in personam. Conviction in
the criminal action is not a bar to forfeiture. Results of a criminal proceeding
being dependent on the evidence therein will not necessarily influence
judgment in the forfeiture proceedings.
Llamado vs. Commissioner of Customs
123 SCRA 118
A Cessna plane carrying persons engaged in the smuggling of untaxed
blue seal cigarettes, landed at an airstrip in Alabat, Quezon Province. The

proceedings. The Collector of Customs sitting in the seizure and

forfeiture proceedings has exclusive jurisdiction to hear and
determine all questions touching on the seizure and forfeiture
proceedings of dutiable goods. The regional trial courts are
preclude from assuming cognizance over such even though petition
for certiorari, prohibition, or mandamus.

3.

5.

Even if a Customs seizure is illegal, exclusive jurisdiction still

belongs to the Bureau of Customs (Jao, et. al vs. CA, supra).

6.

To seize or not to seize is discretionary on Customs, so mandamus

does not lie. However, in case of grave abuse by customs,
petitioner can file certiorari proceedings (Provident Tree Farms, Inc.
vs. Batario, Jr. etc et. al G.R. No. 92285, March 28, 1994).

by the collector of his action or decision the importer/ owner may

give written notice to the Collector and one copy furnished to the
Commissioner of his desire to have the matter reviewed by the
Commissioner. Thereupon, the collector shall forthwith transmit all
the records of the proceeding to the Commissioner;

The steps are the following:

2.

In case the decision of the collector of Customs is affirmed by the

Commissioner of Customs, or in case of inaction on the part of the
Commissioner of Customs, the importer/ owner may appeal to the
court of Appeals within 30 days from notice of the decision; and

9.

In case an adverse decision is still rendered, the importer/ owner

may appeal to the Court of Appeals and the Supreme Court.
Note: If the Collector renders a decision adverse to the
Government, such decision shall automatically, be elevated to and
reviewed by the Commissioner; and if the Collectors decision is
affirmed by the Commissioner, such decision shall be automatically
elevated to, and be finally be reviewed by the secretary of Finance.

Procedure Governing Seizure and Forfeiture Cases

1.

8.

The imported articles are seized and a warrant for the detention of
the property is issued by the collector of Customs;

If within 30 days from receipt of the record of the case by the

Commissioner or by the Secretary of Finance, as the case may be,
no decision is rendered by either of them, the decision under review
shall become final and executory.

If the owner or importer desires to secure the release of the

property for legitimate, the Collector may surrender it upon the filing
of a sufficient bond; provided that the articles the importation of
which is prohibited by law shall not be released under bond.

Settlement of Seizures

3.

The Collector of Customs makes a report of the seizure to the

seizure to the Commissioner on Audits.

Subject to the approval of the commissioner of the district collector may

while the case is still pending except when there is fraud:

4.

The Collector shall give the owner or importer of property or his

agent a written notice of the seizure and shall give him an
opportunity to be heard;

5.

Notice to an unknown owner shall be effected by posting for fifteen

days (15) days in the public corridor of the custom-house of the
district in which the seizures was made, and, in the discretion of the
Commissioner by publication in a newspaper or by other means a
he shall consider desirable;

6.

The Collector of Customs schedules the hearing and renders his

decision after the hearing is conducted;

7.

In case the decision of the Collector of Customs is adverse to the

importer/ owner, within fifteen (15) days after notification in writing

a)

Accept the settlement of any seizure case- provided that the owner,
importer, exporter or consignee or his agent shall offer to pay a fine; or

b)

In case of forfeiture- the owner, importer, exporter, consignee or his shall

offer to pay for the domestic market value of the seized article.
Note: The commissioner may accept the settlement of any seizure case
on appeal in the same manner.
Effect of Settlement: The property shall be forthwith released and all the
liabilities which may or might attack to the property by virtue of the offense
which was the occasion of the seizure and all the liability which might
have been incurred under any cash deposit or bond given by the owner or
agent in respect to such property shall be deemed to be discharged.