1.

Smuggling Case
>>6.4B worth of shabu was smuggled into PH from China
>>Gov't seized the said shabu in a warehouse in QC

Questions:
>>Was it subject to Customs Duty? How was it measured?
>>Who is considered smuggler?
>>Who should be held liable?
>>Selectivity system issue.

If there is overpayment in Customs Duty, there will be overpayment in VAT and vice
versa.
>Customs Duty is part of computing VAT

Methods of Valuation
>Retains te "Transaction Value System" - the price paid by the importer for the
sale of goods for export in the PH.

Duty Rates under Special Lws

>EO No. 57 - duty rate on Capital Equipment

Outright smuggling
>arises when goods and articles of commerce are brought into the country without
the required importation documents, or are disposed of in the local market without
having been cleared by the BOC or other authorized government agencies, to evade
the payment of correct taxes, duties and other charges.

Technical Smuggling
>an act of fraudulently, falsifying or erroneously declaring imported goods
entering a country. Outright smuggling is bringing in goods without complete
government importation documents

Post Clearance Audit

>Within 3 years from the date of final payment of duties and taxes or Customs
Clearance as the case may be.
>Coverage of Audit is 3 years from date of issuance of ANL