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LECTURE ON TARIFF AND CUSTOMS CODE

BY
ATTY. RIZALINA V. LUMBERA

(1). Applicable law:

• Tariff and Customs Code as implemented by the Bureau


of Customs

• All other laws implemented by the BOC

(2). Territorial jurisdiction of the Bureau of Customs

• all seas within the jurisdiction of the Philippines following the


archipelagic doctrine

• all coasts, ports, airports, harbors, bays, rivers and inland


waters whether navigable or not from the sea;

(3). Transactions covered:

• importation of goods
• exportation of goods
• transportation of passengers and cargoes into or out of,
or within the Philippines
(4). Classification of articles under the TCC

• subject to duty
• prohibited articles
• conditionally free from tariff and duties ( Section 105, TCC;
governmental agencies and international institutions; granted
by President upon NEDA’s recommendation)
• absolutely free from tariff and duties

(5). Kinds of Customs duties:

regular: ad valorem
specific duty
alternating duty
compound duty

special: dumping
countervailing
marking
discriminatory

(6). Flexible Tariff Clause under the constitution

Section 28, Article 6, 1987 Constitution subject to limitations


under the law;
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(7). Remedies under the TCC

• BOC:

Administrative:Tax lien
Fines and forfeitures
Reduction of customs duties
Compromise

Judicial: Civil Action


Criminal Action

• TAXPAYER:

Administrative: Protest on published value


Protest on assessment (payment
under protest)
Refund
Payment of fine or redemption
after seizure
Appeal to BOC Commissioner from
the BIC Examiner

Judicial: Appeal to CTA


Action to question the legality of
seizure
Abandonment
Note: failure to file import entry within
30 days from discharge

(8). Procedure in protest cases:

• Arrival of goods
• Examiner/Collector issues assessment and collects the
tariff and duties
• Within 15 days pay under protest ands file protest
before the Collector/Examiner
• Hearing within 15 days from receipt of protest;
• Collector either grants or denies the protest;

Possible procedures:

• If granted favorable to the importer, review by the


Commissioner within 30 days from decision by the
Collector;
• If Commissioner upholds the decision of the Collector
( favorable to taxpayer), automatic review by the Dept of
Finance;

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• If Commissioner reverses the decision of the Colector
( not favorable to the importer), importer may appeal to
the CTA Division within 30 days from receipt of such
decision, then file MR. to CTA Division, then appeal to CTA
en banc, then petition for review to the SC within 15 days
from receipt of the decision of the CTA En Banc;
• If Collector denies the protest, (favorable to the
government), importer appeals to the CTA Division within
30 days from receipt of such decision, then file MR. to CTA
Division, then appeal to CTA en banc, then petition for
review to the SC within 15 days from receipt of the
decision of the CTA En Banc;

(9). Procedure in Seizure and Forfeiture

available in case of smuggling which may refer to the


following:

• Prohibited articles;
• Wrong entry of port
• Export of goods contrary to law
• Contraband

Notes:

• Common carriers are generally not subject to seizure


and forfeiture
• In the absence of prima facie evidence, if the owner has
no knowledge of or did not participate in the unlawful act,
the vessel shall not be subjected to seizure and forfeiture;
• Examples of evidence of knowledge:

Use of the vehicle twice for the transaction;


Owner is not in the business for which the conveyance
is generally used
Owner is not in a position to use such conveyance

(10). Doctrine of Hot Pursuit

If the act committed in violation of the TCC is done within


Philippine waters, seizure and forfeiture may be pursued or
continued beyond the territorial jurisdiction or the maritime zone
and on the high seas

(11). The regular courts have no jurisdiction over seizure and


forfeiture cases except that writs of injunction, mandamus, or
prohibition.
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