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H. No. 5525
S. No, 2968
PintMir of Vhilippittgo
Cann pegs of firt Fitilippittrs
Afro mean
„iithrttfil &twos
gtitlarc,Se5siatt

Begun and held in Metro Manila, on Monday, the twenty-seventh

day of July, two thousand fifteen

REPUBLIC ACT NO. 10 8 6 3 ]

AN ACT MODERNIZING THE CUSTOMS AND TARIFF

ADMINISTRATION

Be it enacted by the Senate and House of Representatives of the

Philippines in Congress assembled:

TITLE I
PRELIMINARY PROVISIONS
CHAPTER 1
SHORT TITLE

SECTION 100. Short Title. — This Act shall be known as

the "Customs Modernization and Tariff Act (CMTA)".
CHAPTER 2
GENERAL AND COMMON PROVISIONS
SEC. 101. Declaration of Policy. — It is hereby declared
the policy of the State to protect and enhance government revenue,
institute fair and transparent customs and tariff management
that will efficiently facilitate international trade, prevent and
curtail any form of customs fraud and illegal acts, and modernize
customs and tariff administration. Towards this end, the State
shall:
2 impleme
nt
(a)Devel programs
op and for the
continuo regulatio
us ns,
enhance administr
ment of ative
customs policies,
systems procedur
and es and
processe practices
s that , in order
will to ensure
harmoniz informed
e and
customs diligent
procedur complian
es; ce with
customs
(b)Adopt practices
clear and and
transpare procedur
nt es by
customs stakehold
rules, ers;
regulation
s, (cl)
policies Consult,
and coordinate and
procedur cooperate with
es, other government
consisten agencies and the
t with private sector in
internati implementing
onal and developing
standards customs policy;
and
customs (e)Provi
best de a fair
practices and
; expediti
ous
(c)Establi administ
sh a rative
regime of and
transpare judicial
ncy of appellate
and remedy
accessibil for
ity to customs
customs related
informat grievanc
ion, es and
customs matters;
laws,
rules,
 (f)Emplo — As used
y modern in this Act:
practices
in (a) A
customs batemen
administr t refers
ation and to the
utilize
reduction
informati or
on and
diminuti
communi on, in
cations
whole or
technolo in part, of
gy in the
duties
impleme and taxes
ntation
where
of payment
customs
has not
functions been
; and
made;

(g)Institu (b) A
te ctual or
professio Outright
nalism Exportat
and ion refers
meritocra to the
cy in customs
customs procedur
tax e
administr applicabl
ation by e to
attractin goods
g and which,
retaining being in
compete free
nt and circulatio
capable n, leave
customs the
officers Philippi
and ne
personnel territory
to and are
enforce intended
the to
provision remain
s of this permanen
Act. tly
outside
SEC. 102. it; 3
Definition
of Terms. (c)Admis
sion
refers to includes
the act of carrier
bringing condition
imported s, such as
goods limits of
directly liability
or and
through claims
transit procedur
into a es. In
free addition,
zone; it
contains
(d)Airwa transport
y Bill instructio
(AWB) ns to
refers to a airlines
transport and
document carriers,
for a
airfreight descripti
used by on of the
airlines goods,
and and
internati applicabl
onal e
freight transport
forwarde ation
rs which charges;
specify
the (e)Appea
holder or l refers to
consigne the
e of the remedy
bill who by which
has the a person
right to who is
claim aggrieved
delivery or
of the adversely
goods affected
when by any
they action,
arrive at decision,
the port order, or
of omission
destinati of the
on_ It is Bureau,
a seeks
contract redress
of before
carriage the
that Bureau,
the accredite
Secretary d by the
of Bureau
Finance, based on
or the
compete World
nt court, Customs
as the Organiz
case may ation
be; (WCO)
Framewo
(f)Assess rk of
ment Standard
refers to s to
the Secure
process and
of Facilitate
determini Global
ng the Trade,
amount the
of duties Revised
and taxes Kyoto
and. Conventi
other on
charges (RFC),
clue on the WOO
imported Supply
and Chain
exported Manage
goods; ment
Guidelin
es and
(g)Autho
the
rized
various
Economi national
c best
Operator practices
(AEO) to
refers to promote
the trade
importer, facilitatio
exporter, n and to
customs provide a
broker, seamless
forwarder movemen
, freight t of
forwarder goods
, across
transport borders
provider, through
and any secure
other internatio
entity nal trade
duly supply
chains bill has
with the the right
use of to claim
risk delivery
managem of the
ent and goods at
modern the port
technolo of
gy; destinati
on. It is
(h)Bill a
of contract
Lading of
carriage
(B/L)
that
refers to
includes
a
carrier
transport
conditio
document
ns, such
issued
as limits
by
of
shipping
liability
lines,
and
carriers
claims
and
procedur
internati
es. In
onal
addition,
freight
it
forward
contains
ers or
transport
non-
instructio
vessel
ns to
operatin
shipping
g
lines and
common
carriers,
_carrier
a
for
descripti
water-
on of the
borne
goods,
freight.
and
The
applicabl
holder
e
or
transport
consigne
ation
e of the
charges;
(i)Bure (j)Carrie
au r refers to
refers to the
the person
Bureau actually
of transporti
Customs ng goods
; or in
charge of or placed
or under
responsib another
le for the customs
operation procedur
of the e;
means of
transport ('
such as Commiss
airlines, ion refers
shipping to the
lines, Tariff
freight Commissi
forwarder on;
s, cargo
consolida
tors, non- (4
vessel Conditional
operating Importation
common refers to the
carriers customs
and other procedure
internati known under
onal the RKC as
transport temporary
operators admission in
; which certain
goods can be
brought into a
(k)Cleara
customs
nce refers territory
to the
conditionally
completio relieved,
n of
totally or
customs partially, from
and other
payment of
governm import duties
ent
and taxes; such
formaliti goods must be
es
imported for a
necessar specific purpose
y to
and must be
allow intended for
goods to
reexportation
enter for within a
consump
specified period
tion, and without
warehous
having
ing, undergone any
transit or
substantial
transship change except
ment, or
due to normal
to be depreciation;
exported
(n)Custo ative
ms nnit that
Broker is
refers to competen
any t and
person authorize
who is a d to
bona perform
fide all or any
holder of of the
a valid functions
Certificat enumerat
e of ed under
Registrat customs
ion/Profe and tariff
ssional laws;
Identifica
tion (p)Custo
Card.issu ms
ed. by the Officer,
Professio as
nal distingui
Regulato shed
ry Board from a
and clerk or
Professio employee
nal , refers to
Regulati a person
on whose
Commiss duty, not
ion being
pursuant clerical
to or
Republic manual in
Act No. nature,
9280, as involves
amended the
, exercise
otherwis of
e known discretion
as the in
"Custom performin
s Brokers g the
Act of function
2004"; of the
Bureau.
(o)Custo It may
also
ms
refer to
Office
an
refers to
employe
any
e
customs
administr
authorized to e
perform a territory;
specific function
of the Bureau as (t)Export
provided in this Declarat
Act; ion refers
to a
(q)Custo statement
ms made in
Territor the
y refers manner
to areas prescribe
in the d by the
Philippin Bureau
es where and other
customs appropria
and tariff te
laws may agencies,
be by which
enforced; the
persons
(r)Entry concerne
refers to d
the act, indicate
document the
ation and procedur
process e to be
of observed
bringing for taking
imported out or
goods causing
into the to be
customs taken out
territory, any
including exported
goods goods
coming and the
from free particula
zones; rs of
which
the
(s)Expor
customs
tation
administr
refers to
ation
the act,
shall
documen
require;
tation,
and
process (u)Flexib
of le Clause
bringing refer to
goods the power
out of of the
Philippin President
upon ad
recomme valorem,
ndation whenever
of the necessar
National y;
Economi
c and (v)Foreig
Develop n
ment Exporter
Authorit refers to
y one
(VEDA): whose
(1) to name
increase, appears
reduce or on
remove documen
existing tation
protective attesting
tariffrates to the
of import export of
duty, but the
in no case product
shall be to the
higher Philippin
than one es
hundred regardles
percent s of the
(100%) manufact
ad urer's
valorem; name in
(2) to the
establish invoice;
import
quota or (w)Free
to ban Zone
importati refers to
on of any special
commodi economic
ty as may zones
be registered
necessar with the
y; and Philippin
(3) to e
impose Economi
additiona c Zone
l duty on Authorit
all y (PE -
import ZA)
not under
exceedin Republic
g ten Act No.
percent 7916, as
(10%) amended,
 duly Zone
chartered under
or Republic
legislated Act No.
special 7227, as
economic amended
zones and by
freeports Republic
such as Act No.
Clark 9400; the
Freeport Aurora
Zone; Special
Poro Economi
Point c Zone
Freeport under
Zone; Republic
John Hay Act No.
Special 9490, as
Economi amended;
c Zone the
and Subic Cagayan
Bay Special
Freeport
6
subject of
importati
Economic Zone on or
and Freeport exportatio
under Republic n;
Act No. 7922; the
Zamboanga City (y)Goods
Special Declarati
Economic Zone on refers
under Republic to a
Act No. 7903; statement
the Freeport made in
Area of Bataan the
under Republic manner
Act No. 9728; prescribed
and such other by the
freeports as Bureau
established or and other
may be created by appropriat
law; e
agencies,
(x)Goods by which
refer to the
articles, persons
wares, concerne
merchand d indicate
ise and the
any other procedure
items to be
which are observed
 in the client without
applicatio assuming the
n for the role of a carrier,
entry or which can also
admission perform other
of forwarding
imported services, such as
goods booking cargo
and the space, negotiating
particular freight rates,
s of preparing
which the documents,
customs advancing freight
administr payments,
ation providing
shall packing/crating,
require; trucking and
warehousing,
(z)Import engaging as an
ation agent/representat
refers to ive of a foreign
the act of non-vessel
bringing operating as a
in of common
goods carrier/cargo
from a consolidator
foreign named in a
territory master bill of
into lading as
Philippin consignee of a
e consolidated
territory, shipment, and
whether other related
for undertakings;
consumpt
ion, (bb)
warehousi International
ng, or Freight
admission Forwarder
as defined refers to persons
in this responsible for
Act; the assembly and
consolidation of
(aa) shipments into
Freight single lot, and
Forwarder assuming, in
refers to a local most cases, the
entity that acts full responsibility
as a cargo for the
intermediary and international
facilitates transport of such
transport of goods shipment from
on behalf of its point of receipt
to the point of 7
destination;
and over all
(cc) coasts, ports,
Jurisdictional airports, harbors,
Control refers to bays, rivers and
the power and inland waters
rights of the whether
Bureau in navigable or not
exercising from the sea;
supervision and
police authority (di)
over all seas Lodgement
within the refers to the
jurisdiction of registration of a
the Philippine goods
territory declaration with
the Bureau;

(ee) Non-
Vessel
Operating
Common
Carrier
(NVOCC) refers
to an entity,
which may or
may not own or
operate a vessel
that provides a
point-to-point
service which
may include
several modes of
transport and/or
undertakes group
age of less
container load
(LCL) shipments
and issues the
corresponding
transport
document;

(ff)
Outright
Smuggling refers
to an act of
importing goods
into the country
without complete
customs
prescribed is the permanent
importation station of the
documents, or District
without being Collector of
cleared by such port.
customs or Subports of entry
other regulatory are under the
government administrative
agencies, for the jurisdiction of the
purpose of District Collector
evading payment of the principal
ofprescribed port of entry of
taxes, duties and the Customs
other government District. Port of
charges; entry as used in
this Act shall
(gg) include airport of
Perishable entry;
Good refers to
goods liable to
perish or goods
that depreciate
greatly in value
while stored or
which cannot be
kept without
great
disproportionate
expense, which
may be proceeded
to, advertised and
sold at auction
upon notice if
deemed
reasonable;

(hh) Port
of Entry refers to
a domestic port
open to both
domestic and
international
trade, including
principal ports
ofentry and
subparts of
entry. A
principal port of
entry is the chief
port of entry of
the Customs
District wherein
it is situated and
 (ii) Port
of Discharge,
also called Port
of Unloading,
refers to a place
where a vessel,
ship, aircraft or
train unloads its
shipments, from
where they will be
dispatched to their
respective
consignees;
8 which
ensures
(jj) the
Reexportation
means exportation
of goods which
have been
imported;

(kk)
Release of
Goods refers to
the action by the
Bureau to permit
goods
undergoing
clearance to be
placed at the
disposal of the
party concerned;

(11)
Refund refers to
the return, in
whole or in part, satisfaction of an
of duties and obligation to the
taxes paid on Bureau;
goods;
(nn)
(mm) Smuggling
security refers refers to the
to any form of fraudulent act of
guaranty, such importing any
as a surety goods into the
bond, cash Philippines, or
bond, standby the act of
letter of credit assisting in
or irrevocable receiving,
letter of credit, concealing,
buying, selling, (qq)
disposing or Tentative
transporting such Release refers
goods, with full to a case
knowledge that where the
the same has assessment is
been fraudulently disputed and
imported, or the pendin g review,
fraudulent an importer may
exportation of put up a cash
goods. Goods bond equivalent
referred to under to the duties and
this definition taxes due on
shall be known goods before the
as smuggled importer can
goods; obtain the
release of said
too) goods;
Taxes refer to
all taxes, fees (rr)
and charges Transit refers to
imposed under the customs
this Act and the procedure under
National Internal which goods, in
Revenue Code its original form,
(NIRC) of 1997, are transported
as amended, and under customs
collected by the control from one
Bureau; customs office to
another, or to a
(pp) free zone; 9
Technical
Smuggling (ss)
refers to the act Transshipment
of importing refers to the
goods into the customs
country by procedure under
means of which goods are
fraudulent, transferred
falsified or under customs
erroneous control from the
declaration of importing means
the goods to its of transport to the
nature, kind, exporting means
quality, quantity of transport
or weight, for the within the area of
purpose of one customs
reducing or office, which is
avoiding payment the office of both
of prescribed importation and
taxes, duties and exportation;
other charges;
 (tt) unload therein.
Traveler refers Importation is
to any person deemed
who temporarily terminated
enters the when:
territory of a
country in which (a)The
he or she does duties,
not normally taxes and
resides (non- other
resident), or who charges
leaves that due upon
territory, and any the goods
person who leaves have been
the territory of a paid or
country in which secured
he or she to be paid
normally resides at the
(departing port of
resident) or who entry
returns to that unless the
territory goods are
(returning free from
resident); and duties,
taxes and
(uu) Third other
charges
Party refers to
and legal
any person who
permit
deals directly
for
with the Bureau,
withdraw
for and on behalf
al has
of another
been
person, relating
granted;
to the
or
importation,
exportation,
movement or (b)In case
storage of goods. the goods
are
deemed
S E C . 103.
free of
When
duties,
Importation taxes and
Begins and other
Deemed charges,
Terminated. — the goods
Importation have
begins when the legally
carrying vessel or left the
aircraft enters the jurisdictio
Philippine n of the
territory with the Bureau.
intention to
 SEC. 104. previously
When Duty and exported from
Tax are Due on the Philippines.
Imported
Goods. — Except Unpaid_
as otherwise duties, taxes and
provided for in other charges,
this Act or in shall incur legal
other laws, all interest of twenty
goods, when percent
imported into the (20%)per annum
Philippines, shall computed from
be subject to duty the date of final
upon assessment
importation, under Section
including goods 429 of this Act,
when
10 date of
importation
payment or upon
becomes due and withdrawal
demandable_ The from the
legal interest shall warehouse
. likewise accrue for
on any fine or consumption.
penalty imposed. In case of
withdrawal
Upon from free
payment of the zones for
duties, taxes and introduction to
other charges, the customs
the Bureau shall territory, the
issue the duty rate at the
necessary time of
receipt or withdrawal
document as shall be
proof of such applicable on
payment. the goods
originally
admitted,
SEC.
whether
105. Effective
withdrawn in
Date of Rate its original or
of Import advanced
Duty. — form.
Imported
good_s shall be
subject to the In case
import duty of goods sold
rates under the at customs
applicable public auction,
tariff heading the duty rates
that are at the date of
effective at the the auction
 shall apply for or
purposes of attorney-
implementing in-fact
Section 1143(a) for each
of this Act. holder.

SEC. In case
106. the consignee
Declarant. — or the person
A declarant who has the
may be a right to
consignee or a dispose of the
person_ who has goods is a
the right to juridical
dispose of the person, it may
goods. The authorize a
declarant shall responsible
lodge a goods officer of the
declaration company to
with the Bureau sign the goods
and may be: declaration as
declarant on
(a) The importer, its behalf
being the holder
of the bill of
lading; or

(o) The
exporter, being
the owner of the
goods to be
shipped out; or

(c)A
customs
broker
acting
under the
authority
of the
importer
or from a
holder of
the bill;
or

(d)A
person
duly-
empower
ed to act
as agent
 11 customs broker
shall likewise be
The goods responsible for
declaration the accuracy of
submitted to the the goods
Bureau shall be declaration but
processed by the shall not be
declarant or by a responsible for
licensed customs the payment of
broker: Provided, duties, taxes and
That for other charges
importations, a due on the
transition period imported goods.
of two (2) years
from the The
effectivity of this declarant shall
Act is hereby sign the goods
provided during declaration, even
which when assisted by
subparagraph (d) a licensed
of this section customs broker,
shall not be who shall
implemented by likewise sign the
the Bureau: goods
Provided, d_edaratioro
further, That after
two (2) years from SEC. 108.
the effectivity of Penalties
this Act, for;Errors in
subparagraph (d) Goods
of this section Declaration. —
shall take into The Bureau shall
effect consistent not impose
with international substantial
standards and penalties for
customs best errors when such
practices. errors are
inadvertent and
SEC. 107. there was no
Rights and fraudulent intent
Responsibilities or gross
of the Declarant. negligence in the
— The declarant commission
shall be responsible thereof:
for the accuracy of Provided, That
the goods in order to
declaration and discourage
for the payment of repetition of such
all duties, taxes errors, a penalty
and other charges may be imposed
due on the but shall not be
imported goods. excessive.
The licensed
 SEC. 109. The
Applicatio Bureau shall
n communicate,
In f o r ma t i exchange and
on process trade-
Communications and logistics-
Technology. — In related inform
accordance with ation in the
international national and
standards, the regional level for
Bureau shall the efficient
utilize and prompt
information clearance of
and goods and
communications commodities in a
technology to technology-
enhance customs neutral and
control and to secured
support a cost- infrastructure for
effective and business,
efficient customs industries, and
operations geared govern.ment.
towards ,a
paperless customs
environm ent.
12 maintaining its
u_ptime goal for
The its electronic and
security of data online services.
and
communication For
shall be in a purposes of
manner that is customs
consistent with procedures,
applicable local electronic
and documents,
internationally permits,
accepted licenses or
standards on certificates
information shall be
security. acceptable and
shall have the
The legal effect,
Bureau shall validity or
likewise include enforceability
as part of its as any other
systems and document or
processes; a legal writing:
disaster Provided, That
preparedness and when the
recovery plan to prescribed
ensure business requirements
continuity by are duly
complied with, communication
the Bureau s technology
shall: shall be
undertaken
(a)Recogn with due
ize the consultation
authenticit with directly
y and affected parties
reliability and
of stakeholders.
electronic
documents SEC. 110.
; Relationship
Between the
(b)Trans Bureau and
mit Third Parties.
approval — Parties may
in the transact business
form of with the Bureau
electroni either directly or
c data through a
messages designated third
or party to act on
electronic their behalf.
document
s; and The
customs
(c)Require transactions
andfor directly
accept transacted by a
payments party shall not be
and issue treated less
receipts favorably or be
acknowle subject to more
dging stringent
such requirements
payments than those
through transacted
systems through a
using designated third
electronic party. 13
data
messages A
or designated third
electronic party shall have
document the same rights
s. and obligations
as the
The designating party
introduction and when transacting
implementation business with the
of information Bureau.
and
 Subject to interested
the provisions person.
of existing
laws, treaties, Any new
convention and information,
international amendment or
agreements, the changes in
Secretary customs law,
ofFinance shall administrative
make the procedures or
necessary requirements,
guidelines for shall, as far as
the defined practicable, be
relationship of made readily
the Bureau and available prior to
third parties. its effective date
of
SEC. 111. implementation
Information of unless advance
General notice is
Application. — precluded.
All laws,
decisions, rulings, SEC. 112.
circulars, Information of a
memoranda and Specific Nature.
orders of the — The Bureau
Bureau shall be shall provide
published in_ information, not
accordance with otherwise
law. confidential or for
the Bureau's
To foster internal use
an informed only, relating to
compliance a specific matter
regime, the as may be
Bureau shall requested by an
ensure that all interested party
relevant and for legitimate
available use.
information of
general The
application Bureau may
pertaining to require the
customs payment of a
operations and reasonable fee in
procedures which providing such
are not information. The
confidential or requested
intended for the information shall
Bureau's internal be released
use only, shall be within reasonable
readily time from the
accessible to any filing of the
request and this Act, issue
payment of the binding and
required fee. advance decision
and ruling at the
SEC. 113. request of an
Decision and interestedp arty on
Ruling. — The matters pertaining
beau shall, to importation or
consistent with exportation of
Section 1502 of goods.
14 omission of the
Bureau pertaining
Upon to an importation,
written request exportation, or
of the interested
any other legal
party, the Bureau
claim shall have
shall notify the
the right to
party of its
appeal within
decision in
fifteen (15) days
writing within the
from receipt of
period specified
the questioned
in this Act or by
decision or order.
regulation.
Should the
An appeal
decision be in writing shall
adverse to the be filed within
requesting the period
interested party, prescribed_ in this
the reasons Act or by
thereof shall be regulation and
indicated and the shall specify the
party shall be grounds thereof.
advised of the
party's right of The Bureau
appeal. may allow a
reasonable time
The ruling for the
and decision shall submission of
be issued by the support; g
Bureau within evidence to the
thirty (30) days appeal.
from the
submission of the
necessary CHAPTER 3
documents and TYPES OF
information.
IMPORTATION
SEC. 114.
Right of Appeal, SEC. 115.
Forms and Treatment of
Ground. — Any Importation. —
party adversely Imported goods
affected by a shall be deemed
decision or "entered" in the
Philippines for 15
consi im lotion
when the goods
SEC. 117.
declaration is
Regulated
electronically
Importation and
lodged, together
Exportation. —
with any required
Goods which are
supporting
subject to
documents, with
regulation shall be
the pertinent
imported or
customs office
exported only
SEC. 116. after securing the
Free necessary goods
Importation and declaration or
Exportation. — export
Unless otherwise declaration,
provided by law clearances,
or regulation, all licenses, and any
goods may be other
freely imported requirements,
into and exported prior to
from the importation or
Philippines exportation. In
without need for case of
import and importation,
export permits, submission of
clearances or requirements after
licenses. arrival of the
goods but prior to
release from
customs custody
shall be allowed
but only in cases
provided for by
governing laws
or regulations.

SEC. 118.
_Prohibited
Importation and
Exportation, —
The importation
and exportation of
the following
goods are
prohibited:

(a) W
ritten or
printed
goods in
any form
containin unlawful
g any abortion,
matter or any
advocatin printed_
g or matter
inciting which
treason, advertises
rebellion, ,
insurrecti describes
on, or gives
sedition direct or
against indirect
the informati
governme on
nt of the where,
Philippine how or
s, or by whom
forcible unlawful
resistance abortion
to any is
law of committed
the ;
Philippin
es, or (c) W
written or ritten or
printed printed
goods goods,
containin negatives
g any or
threat to cinematog
take the raphic
life of, or films,
inflict photograp
bodily hs,
harm engraving
upon any s,
person in lithograph
the s, objects,
Philippin paintings,
es; drawings
or other
(b) G represent
oods, ation of
instrumen an
ts, drugs obscene
and or
substance immoral
s character;
designed,
intended (d) A
or adapted ny goods
for manufact
producing ured in
whole or (e) A
in part of ny
gold, adulterated
silver or or
other misbrande
precious d food or
metals or goods for
alloys and human
the stamp, consumpt
brand or ion or any
mark does adulterate
not d or
indicate misbrand
the actual ed drug in
fineness violation
of quality of
of the relevant
metals or laws and
alloys; regulation
s;
16 competen
t
(f)Infring authority.
ing goods
as SEC. 119.
defined Restricted
under the Importation
Intellectu and
al Exportation. —
Property Except when
Code and authorized by
related law or
laws; and regulation, the
importation and
(g)All exportation of
other the following
goods or restricted goods
parts are prohibited:
thereof,
which (a)Dyna
importatio mite,
n and gunpowd
exportati er,
on are ammunit
explicitl ions and
y other
prohibite explosive
d by law s,
or rules firearms
and and
regulatio weapons
ns issued of war, or
by the
parts and lists
thereof; of
drawings
(b)Roulett therein;
e wheels,
gambling (d)Marijua
outfits, na, opium,
loaded poppies,
dice, coca
marked leaves,
cards, heroin or
machines other
, narcotics
apparatus or
or synthetic
mechanic drags
al which are
devices or may
used in hereafter
gambling be
or the declared
distributio habit
n of forming
money, by the
cigars, President
cigarettes of the
or other Philippin
goods es, or
when such any
distributio compound
n is ,
dependent manufactu
on red salt,
chance, derivative
including , or
jackpot preparatio
and n thereof
pinball except
machines when
or similar imported
contrivan by the
ces, or governme
parts nt of the
thereof. Philippin
es or any
(c)Lottery person
and duly
sweepstak authorized
es tickets, by the
except Dangerou
advertisem s Drugs
ents Board, for
thereof
 medicinal 17
purposes;
The
(e)Opium
restriction to
pipes or
import or export
parts
the above stated
thereof,
goods shall
of
include the
whatever
restriction on
material;
their transit.
and
CHAPTER 4
(f) Any
other goods
whose importation RELIEF
and exportation
are restricted, CONSIGNMENT

SEC. 120.
Relief
Consignment.
— Goods such
as food,
medicine,
equipment and
materials for
shelter, donated
or leased to
government
institutions and
accredited private
entities for free
distribution to or
use of victims of
calamities shall
be treated and
entered as relief
consignment.

Upon
declaration of a
state of calamity,
clearance of
relief
consignment
shall be a
matter of
priority and
subject to a
simplified
customs
procedure. The
Bureau shall offices
provide for: and
waiver of
(a)Lodgi any
ng of a correspon
simplifie ding
d goods charges;
declaratio and
n or of a
provisiona (d)Exami
l or nation
incomplet and/or
e goods sampling
declaratio of goods
n subject only in
to exception
completio al
n of the circumsta
declaratio nces.
n within a
specified
The
period;
Department of
Finance (DOF)
(b)Lodgi
and the
ng,
Department of
registeri
Social Welfare
ng and
and
checking
Development
of the
(DSWD) shall
goods
jointly issue the
declaratio
rules and
n and
regulations for
supportin
the
g
implementation
document
of t'brovision.
s prior to
the arrival SEC. 121.
of the
Duty and Tax
goods,
Treatment. —
and their
Relief
release
consignment, as
upon
defined in
arrival;
Section 120,
imported during
(c)Clearan a state of
ce beyond calamity and E
the intended for
designate aspecific calamity
d hours of area for the use of
business the calamity
or away victims therein,
from shall be exempt
customs
from duties and taxes.
regulatio
18 ns;
TITLE II (2)Issuan
ce,
BUREAU OF
revocatio
n or
CUSTOMS
modificat
ion of
CHAPTER 1
rulings;
GENERAL and

ADMINISTRATION (3)Compr
omise or
SEC. 200. abate of
Chief Officials customs
of the Bureau. obligatio
— The Bureau ns.
shall be headed
by a (f)Assign
Commissioner ment or
and shall be reassignm
assisted by at ent of any
least four (4) but customs
not more than six officer
(6) Deputy subject to
Commissioners. the
approval
The of the
Commissioner Secretary
shall be of
appointed by the Finance:
President of the Provided
Philippines. , That
District
The Collectors
Deputy and other
Commissioners customs
shall also be officers
appointed by the that
President and at perform
least majority of assessme
whom shall nt
come from the functions
ranks of the shall not
Bureau. is remain in
the same
(1)Promu area of
lgation assignme
of rules nt for
and_ more than
three (3)
 years;
and

(g)Perfor
m all
other
duties
and
functions
as may
be
necessary
for the
effective
implemen
tation of
this Act
and other
customs
related
laws.

SEC. 202.
Functions of the
Bureau. — The
Bureau shall
exercise the
following duties
and functions:
1;
SEC. 201.
Powers and
Functions of the
Commissioner.
— The
Commissioner
shall have the
following powers
and functions:

(a)Exclus
ive and
original
jurisdicti
on to relevant
interpret governme
the nt
provision agencies,
s of this subject to
Act, in review by
collabora the
tion with Secretary
-
other ofFinance;
(b)Exerci powers
se any vested
customs under
power, this Act
duties to any
and customs
functions, officer
directly or with the
indirectly; rank
equivalent
(c)Review to division
any action chief or
or higher,
decision except for
of any the
customs following
officer powers
performe and
d functions:
pursuant (a)Assess
to the ment and
provision collection
s of this of
Act; customs
revenues
(d)Revie from
w and imported
decide goods and
disputed other
assessme dues, fees,
nts and charges,
other fines and
matters penalties
related accruing
thereto, under this
subject to Act;
review by
the (b)Simplif
Secretary ication
of and
Finance harmoniza
and tion_ of
exclusive customs
appellate procedures
jurisdictio to
n of the facilitate
Court of movemen
Tax t of goods
Appeals in
(CTA); internatio
nal, trade;
(e)Delega
te the
(c)Border mails
control to arriving
prevent in the
entry of Philippine
smuggled s for the
goods; purpose
of
(d)Preven collecting
tion and revenues
suppressi and
on of preventin
smugglin g the
g and entry of
other contraban
customs d;
fraud;

(e)Facilit
ation and
security
of
internatio
nal trade
and
commerc
e through
an
informed
complian
ce
program;

(f)Supervi
sion and
control
over the
entrance
and
clearance
of vessels
and
aircraft
engaged
in foreign
commerce
;

(g)Superv
ision and
control
over the
handling
of foreign
20

(h)Super
vision
and
control
on all
import
and
export
cargoes,
landed or
stored in
piers,
airports,
terminal
facilities,
including
container
yards and
freight
stations
for the
protection
of
governme
nt
revenue
and
preventio
n of entry
of
contraban
d;

(i)Conduc
t a
compensa
tion study
with the
end view
of
developin
g and
recomme remunera
nding to tion
the system to
President attract
a and
competiti retain
ve highly
compensa qualified
tion and personnel
 , while SEC. 204.
ensuring Promulgation of
that the Rules and
Bureau Regulations. —
remains The
financiall Commissioner,
y sound subject to the
and approval of the
sustainabl Secretary of
e; Finance, shall
promulgate
(j)Exercise rules and
of regulations for
exclusive the enforcement
original of this Act. The
jurisdictio Commissioner
n over shall regularly
forfeiture prepare and
cases publish an
under this updated
Act; and customs
manual, and the
rules,
(k)Enforc
regulations and
ement of
decisions of the
this Act
Bureau. The
and all
Commissioner
other
shall furnish the
laws, rules
Congress of the
and
Philippines, the
regulatio
NEDA and the
ns related
Tariff
to
Commission with
customs
electronic copies
administr
of department
ation.
orders,
administrative
SEC. 203. orders, circulars,
Annual Report and rules and
of the regulations
Commissioner. promulgated
— The pursuant to this
Commissioner Act.
shall submit to
the President, the S EC .
Congress of the 205. Copies
Philippines and of Goods
the NEDA an
Declaration.
annual report on
— The
the performance
Commissioner
of the Bureau,
shall regularly
on or before
furnish the
March 31 of the
NEDA, the
following year.
Philippine 21
Statistics
Authority (PSA),
Upon
the Bureau of
request, the
Internal.
Tariff
Revenue (BIR)
Commission
and the Tariff
shall have access
Commission
to, and the right
electronic copies
to be furnished
of all customs
with copies of
goods
liquidated goods
declaration
declaration and
processed and
other documents
cleared by the
supporting the
Bureau.
goods
declaration as
finally filed in
the Commission
on Audit (COA).

For this
purpose, the
Bureau shall
maintain
electronic
records of goods
declaration and
other documents
supporting the
declaration.

CHAPTER 2

CUSTOMS

DISTRICTS

AND PORTS

OF ENTRY

SEC.
206. Customs
Districts. —
For
administrative
purposes, the
Philippines shall
be divided into as Collector shall
many Customs be assigned in
Districts as the principal
necessary, the ports of entry
respective while a Deputy
limits of which District
may be Collector may
changed from be assigned to
time to time by other types of
the ports of entry.
Commissioner,
with the The
approval of the principal ports of
Secretary of entry shall be
Finance. located in Aparri,
San Fernando,
Each Manila, Manila
Customs .
International
District shall be Container Port,
supervised by Ninoy Aquino
one (1) District International
Collector, Airport, Subic,
assisted by as Clark, Batangas,
many Deputy Legaspi, Iloilo,
District Cebu, Tacloban ;
Collectors as S urigao,
may be Cagayan de
necessary_ The Ordramboanga,
choice of the Davao, Limay
location of a and such other
District Office, ports that may
its business be created
hours and the pursuant to this
staffing pattern Act_
thereof shall be
based on the For the
particular effective
requirements of enforcement of
each district. the Bureau's
functions and
SEC. 207.
without
Ports of Entry. hampering
— All ports of business and
entry shall be commercial
under the operations of the
supervision ports, sea ports
and control of and airport
a Customs authorities and
District. A private ports
District and
22 airport operators
shall provide
suitable areas for
examination and staffing pattern
for other customs or
equipment free of organizational
charge within a structure, or
definite period of may assign any
time, as agreed employee Other
with private port duties:
and airport Provided, That
operations, if such assignment
any. shall not affect
the employee's
SEC. 208. tenure of office
Power of the nor result in a
President to change of status,
Open. and Close demotion in
Any Port. — rank and/or
salary deduction.
Upon the
recommendation
of the Secretary SEC. 210.
of Finance, the Duties of the
President may District
open or close any Collector. — The
port of entry. District Collector
Upon closure of shall have the
a port of entry, following duties in
the existing their assigned
personnel shall Customs District:
be reassigned by
the (1)Ensure
Commissioner, entry of
subject to the
all
approval of the
Secretary of imported
Finance. goods at
the
SEC. 209. customs
Assignment of office;
Customs Officers
and Employees (2)Prevent
to Other Duties. importatio
— The
n and
Commissioner,
with the approval exportatio
of the Secretary n of
of Finance, may prohibited
assign any goods;
employee of the
Bureau to any
port, service, (3)Ensure
division or legal
office of the Complianc
Bureau within e of
the Bureau's regulated
goods and be
facilitate assigned
the flow by the
of Commissi
legitimate oner for
trade; the
effective
(4)Exami implement
ne, ation of
this Act.
classify
and
Subject
value
to the
imported supervision and
goods; control of the
District
(5)Assess Collector, the
and duties and
collect functions of the
duties, District
taxes and Collector may
other be delegated to
charges the Deputy
on District Collector.
imported The Deputy
goods; District Collector
assigned to a
(6)Hold sub-port shall be
and under the
dispose supervision and
imported control of the
goods in District Collector
accordanc of the
e with this corresponding
Act; principal port.
23
SEC.
(7)Preve 211.
Temporary
nt
Succession of
smugglin
Deputy District
g and Collector to
other Position of
customs Acting District
fraud; Collector. — In
and the absence or
disability of a
(8)Perfor District
m other Collector or, in
necessary case of vacancy,
duties the Deputy
that may District
Collector shall
temporarily customs officers
discharge the acting in such
duties of the capacities must
District Collector. maintain
Should there be permanent
no Deputy records of
District official
Collector, the transactions
District and turn-over
Collector shall all records and
designate, in official papers
writing, a to their
senior ranking respective
customs officer successors or
to temporarily other authorized
perform the officials. The
duties of the records shall be
District made available
Collector. In for inspectic6
case there are by other
two (2) or more authorized
senior ranking officials of the
customs Bureau.
officers with
equal length of If required,
service, a the District
drawing of lots Collector shall
shall be affix the official
undertaken. The dry seal of the
District Bureau on all
Collector shall documents and
report the recvds
designation to requiring
the authentication.
Commissioner
within twenty- SEC. 213.
four (24) hours Reports of the
after the District
designation. Collector to
the
SEC. 212. Commissioner.
Records to be — The District
Kept by Collector shall
Customs report to the
Officers. — Commissioner
District any probable or
Collectors, initiated
Deputy District litigation
Collectors, and within the
24 regular monthly
reports on all
Customs District district
and shall submit transactions.
 CHAPTER 3 Philippin
es (AFP)
EXERCISE - and
national
OF POLICE law
enforcem
ent
AUTHORITY agencies;
and
SEC. 214.
Persons (c)Official
s of the
Exercising
BIR on all
Police
cases
Authority. — falling
For the effective
within the
implementation
regular
of this Act, the
performa
following
nce of
persons are
their
authorized to
duties,
effect search,
when
seizure, and.
payment
arrest:
of
internal
(a)Officia
revenue
ls of the
taxes is
Bureau,
involved.
District
Collectors
, Deputy All officers
District authorized by the
Collectors Commissioner to
, police exercise police
officers, authority shall
agents, at all times
inspectors coordinate with
and the
guards of Commissioner.
the
Bureau; Goods
seized by
(b)Upon deputized
authorizati officers pursuant
on of the to this section
Commissi shall be
oner, physically turned-
officers over immediately
and to the Bureau,
members unless provided.
of the under existing
Armed laws, rules and
Forces of regulations.
the
 For this of Title XE of
purpose, mission this Act.
orders shall
clearly indicate SEC. 215.
the specific name Place Where
carrying out the Authority May be
mission and the Exercised. — All
tasks to be persons
carried out. exercising police
authority as
Subject to described. in the
the approval of preceding section
the Secretary of shall only
Finance, the exercise powers
Commissioner within customs
shall define the premises as
scope, areas provided for in
covered, Section 303 of
procedures and this Act, and
conditions within the limits
governing the of the authority
exercise of such granted by the
police authority Commissioner.
including
custody and Port and
responsibility airport authorities
for the seized in all ports of
goods. The entry sh nil
rules and provide
regulations to authorized
this effect shall customs officers
be furnished to with
the 25 unhampered
access to all
concerned premises within
government their
agencies and administrative
personnel for jurisdiction.
guidance and
compliance. SEC. 216,
Exercise of
All Power of
seizures pursuant Seizure. — Any
to this section person exercising
must be effected police authority
in accordance under this Act
with the has the power
provisions on and duty to - seize
the conduct of any vessel,
seizure aircraft, cargo,
proceedings goods, animal or
provided for in any other
Chapters 3 and 4 movable property
when the same is Information. —
subject to Any person
forfeiture or exercising police
when they are authority may
subject of a fine demand the
imposed under assistance of
this Act. and request
information
SEC. 217. from the
Duty of Officer Philippine
to Disclose National Police
Official (PNP), the AFP
Character. — and other
For the proper national law
exercise of enforcement
police authority, agencies, when
any authorized necessary, to
person shall effegtany search,
disclose the seizure or arrest.
nature of the It shall be the
authority upon duty of any
being questioned police officer
at the time of and other
exercise thereof national law
and shall exhibit enforcers to give
the such lawful
corresponding assistance.
written authority
issued by the SEC. 219.
Commissioner. Authority to
Enter
Properties. —
SEC.
Any person
2 1 8 . A u t ho r i t y
exercising police
to R eq u i r e authority may, at
A s s i s ta nc e any time, enter,
an d pass through,
26 warehouse,
store, or any
and search any building,
land, enclosure, structure or
warehouse, enclosure that is
store, building used for storage
or structure not of goods, it shall
principally used not be considered
as a dwelling as a dwelling
house. house for
purposes of this
When a Act.
security
personnel or any SEC. 220.
other employee Authority to
lives in the Search
Dwelling may seize the
House. — A goods, vessel,
dwelling house aircraft, or any
may be entered part thereof
and searched
only upon Such power
warrant issued to search includes
by a Judge of a removal of any
competent court, false bottom,
the sworn partition,
application bulkhead, or any
thereon showing other obstruction
probable cause for the purpose
and particularly of uncovering
describing the any concealed
place to be dutiable or
searched and the forfeitable
goods to be goods.
seized.
The
SEC. 221. proceeding
Authority to herein authorized
Search Vessels shall not give
or Aircrafts and rise to any claim
Persons or for damage
Goods caused to the
Conveyed goods, vessel or
Therein,. — Any aircraft, unless
person exercising there is gross
police negligence or
authority under abuse of
this Act may authority in the
board, inspect, exercise thereof
search and
examine a SEC. 222.
vessel or Authority to
aircraft and any Search Vehicles,
container, Other Carriers,
trunk, package, Persons and
box or Animals. —
envelope found Upon reasonable
on board, and cause, any
physically person
search and exercising
examine any police authority
person may open and
thereon. In examine any
ease of any box, trunk,
probable envelope, or
violation of this other container
Act, the person for purposes of
exercising determining the
police authority presence of
dutiable or the examination
prohibited and search of
goods. This persons of their
authority own sex.
includes the
search of SEC.
receptacles used 224. Power
for the transport to Inspect
of human and Visit. —
remains and The
dead animals. Commissioner
Such authority or any customs
likewise officer who is
includes the authorized in w
power to stop, iting by the
search, and Commissioner,
examine any may demand
vehicle or evidence of
carrier, payment of
duties and taxes
27
on imported
goods openly for
person or animal
sale or kept in
suspected of
storage. In the
holding or
event that the
conveying
interested party
dutiable or
fails to produce
prohibited
such evidence
goods.
within fifteen
SEC. 223. (15) days, the
Authority to goods may be
Search Persons seized and
Arriving From subjected to
Foreign forfeiture
Countries. — proceedings:
Upon reasonable Provided, That
cause, travelers during the
arriving from proceedings, the
foreign countries interested party
may be shall be given the
subjected to opportunity to
search and prove or show the
detention by the source of the
customs goods and the
officers. The payment of duties
dignity of the and taxes
person under thereon:
search and Provided,
detention shall further, That
be respected at when the warrant
all times. of seizure has
Female been issued but
inspectors may subsequent
be employed for documents
presented
evidencing JURISDICTION
proper payment
AND CUSTOMS
are found to be
authentic and in
CONTROL
order, the District
Collector shall., CHAPTER 1
within' fifteen
(15) days from CUSTOMS
the receipt of the
motion to quash JURISDICTION
or recall the
warrant, cause SEC. 300.
the immediate Customs
release of the Jurisdiction,.
goods seized, — For the
subject to effective
clearance by implementation
the
of this Act, the
Comraissioner:
Bureau shall
Provided,
exercise
finally, That the
jurisdiction over
release thereof
shall not be all seas within
contrary to law. Philippine
territory and. all
coasts, ports,
TITLE III

CUSTOMS
28 enforcement of
this Act. When a
airports, vessel or aircraft
harbors, bays, becomes subject to
rivers and seizure for
inland waters violation of this
whether Act, a pursuit of
navigable or not such vessel or
from the sea and aircraft which
any means of began within the
conveyance. territorial waters
or air space may
The Bureau continue beyond
shall pursue the same, and the
imported_ goods vessel or aircraft
subject to seizure may be seized in
during its the high seas or
transport by land, international air
water and air and space.
shall exercise
jurisdiction as
may be necessary
for the effective
 CHAPTER 2 administrations to
enhance customs
CUSTOMS control. The
Bureau shall
CONTROL consult,
coordinate, and
cooperate with
SEC. 301. other
Customs government
Control Over regulatory
Goods. — All agencies, free
goods, including zones authorities,
means of and the customs
transport, stakeholders, in
entering or general, to
leaving the enhance customs
customs territory, control.
regardless of
whether they are SEC. 302.
liable to duties Enforcement of
and taxes, shall Port Regulation
be subject to of the Bureau of
customs control Quarantine. —
to ensure Customs officials
compliance with and employees
this Act. shall cooperate
with the
In the quarantine
application of authorities in the
customs control, enforcement of
the Bureau shall the port
employ audit- quarantine
based controls regulations
and risk promulgated by
management the Bureau of
systems, use Quarantine and
automation to the shall give effect
fullest extent to the same
possible, and insofar as
adopt a connected with
compliance matters of
measurement shipping and
strategy to navigation.
support risk 29
management.

The SEC. 303.

Bureau shall seek Control Over
to cooperate and Premises Used
conclude mutual for Customs
administrative Purposes. —
assistance The Bureau
agreements with shall, for
other customs customs
purposes, have operator to
exclusive control, transfer
direction and overstaying
management of cargoes in an
customs offices, inland depot or
facilities, terminal.
warehouses,
ports, airports, SEC. 305.
wharves, Trespass or
infrastructure Obstruction of
and other premises Customs
in the Customs Premises. — No
Districts, in all person shall enter
cases without
or obstruct a
prejudice to the customs office,
general police
warehouse, port,
powers of the airport, wharf, or
local government
other premises
units (LGUs), the under the control
Philippine Coast
of the Bureau
Guard and oflaw without prior
enforcement
authority,
agencies in the including the
exercise of their
streets or alleys
respective where these
functions.
facilities are
located.
SEC. 304.
Power of the SEC. 306.
President to Special
Subject Premises Surveillance
to Customs for the
Jurisdiction. — Protection of
When public Customs
interest requires, Revenue and
the President Prevention of
may, by Smuggling. —
executive order, The Bureau shall
declare any conduct
public wharf, surveillance on
landing place, vessels or
infrastructure, aircrafts
street or land, in entering
any port of entry Philippine
under the territory and on
jurisdiction of imported goods
the Bureau as entering the
may be customs office:
necessary, for
Provided, That
customs
the function of
purposes and/or the Philippine
to authorize a Coast Guard to
port or terminal prevent and
suppress the SEC. 307.
illegal entry of Temporary
these goods, Storage of
smuggling and Goods. Subject
other forms of to the rules and
customs fraud regulations to be
and violations of issued by the
maritime law and Secretary of
its proper Finance, the
surveillance of Commissioner
vessels entering shall establish a
and/or leaving system for
Philippine temporary
territory as storage of
provided in imports prior to
Republic Act No. goods
9993, otherwise declaration in
Imo wit as the case of
"Philippine Coast abandoned or
GI ard. Law of overstaying
2009", goods_
shallcontinue to
be in force.
30 entry, or may be
admitted to or
TITLE W removed from a
free zone as
IMPORT
defined_ in this
Act, as the case
may be.
CLEARANCE AND
SEC. 401.
FORMALITIES Importations
Subject to Goods
C HAPT E R 1 Declaration. —
Unless otherwise
Goons provided for in
this Act, all
imported goods
DECLARATION
shall be subject
to the lodgement
of a goods
SEC. 400. declaration. A
Goods to be goods
Imported declaration may
through be for
Customs Office. consumption,
— All goods for customs
imported into the bonded
Philippines shall warehousing, for
be entered admission, for
through a conditional
customs office importation, or
at a port of
for customs Consumer
transit. Price
Index
SEC. 402. (CPI) as
Goods published
Declaration for by the
Consumption. -- PSA; and
All goods
declaration for
(b)Person
consumption
al and
shall be cleared
household
through a
effects or
formal entry
goods,
process except
not in
for the
commerci
following goods
al
which shall be
quantity,
cleared through
imported
an informal
in a
entry process:
passenger'
(a)Goods s baggage
of a or mail.
commercia
l nature The
with. Free Commissioner
on Board may adjust the
(FOB) or value of goods
Free of commercial
Carrier At nature that shall
(FCA) be cleared
value of through an
less than informal entry
fifty process without
thousand prejudice to the
pesos periodic adjus
(P50,000. Brent period in
00). Every subparagraph (a)
three (3) of this section.
years after 31
the
effectivity All
of this importations
Act, the entered through
Secretary a formal entry
of Finance process shall be
shall covered by a letter
adjust this of credit or any
amount as verifiable
provided commercial
herein to document
its present evidencing
value, payment or in
using the
cases where five (45) days for
there is no sale validreasons.
for export, by any
commercial If the
document Bureau accepts a
indicating the provisional
commercial value goods
of the goods. declaration, the
duty treatment of
SEC. 403. the goods shall.
Provisional not be different
Goods from that of
Declaration. — goods with
Where the complete
declarant does declaration.
not have all the
information or Goods
supporting under a
documents provisional goods
required to declaration may
complete the be released upon
goods posting of any
declaration, the required security
lodging of a equivalent to the
provisional amount
goods ascertained to be
declaration may the applicable
be allowed: duties and taxes.
Provided, That
it substantially
SEC_ 404.
contains the
Owner of
necessary
information
Imported Goods.
required by t he — All goods
Bureau and the imported into the
decl arant Philippines shall
undert akes to be deemed to be
complete the the property of
information or the consignee or
submit the the holder of the
supporting bill of lading,
documents airway bill or
within forty-five other equivalent
(45) days from transport
the filing of the document if duly
provisional endorsed_ by the
goods consignee therein,
declaration, or, if consigned
which period to order, duly
may be extended endorsed by the
by the Bureau consignor. The
for another forty- underwriters of
abandoned goods
and the salvors
of goods saved fees, and other
from wreck at charges attached
sea, coast, or in to importation
any area of the constitutes a
Philippines, may personal debt due
be regarded as and demandable
the consignees. against the
importer in favor
SEC. 405. of the
Liability of government and
Importer for shall be
Duties aad discharged only
Taxes. = Unless upon payment of
relieved by laws duties, taxes,
or regulations, fees and other
the liability for charges. It also
duties, taxes, constitutes a lien
on
32 other charges
under this Act.
the imported
goods which SEC. 407.
may be enforced Goods
while such Declaration
goods are under and Period of
customs' Filing. —As far
custody. as practicable,
the format of the
SEC. 406. goods declaration
Importations shall conform
by the with
Government. international
— Except those standards. The
provided for in data required in
Section 800 of the goods
this Act, all declaration
importations by shall be
the government limited to
for its own use such
or that of its particulars
subordinate that are
branches or deemed
instrumentalities, necessary far
or corporations, the assessment
agencies or and collection
instrumentalities of duties and
owned or taxes, the
controlled by compilation of
the government, statistics and
shall be subject compliance with
to the duties, this Act. The
taxes, fees and Bureau shall
require the
electronic Provided,
lodgement of however, That
the goods the period of the
declaration. lodgement of the
goods
The declaration may
Bureau shall be adjusted by
only reqoire the
supporting Commissioner.
documents
necessary for SEC.408
customs control . Lodgement
to ensure that all and
requirements of Amendment
the law have of Goods
been complied Declaration.—
with. The Bureau shall
Translation of permit the
supporting electronic
documents shall lodgement of the
not be required goods
except when declaration at
necessary. any designated
customs office_
Goods The Bureau
declaration must shall, for valid
be lodged_ reason and
within fifteen under terms and
(15) days from conditions
the date of provided by
discharge of the regulation,
last package permit the
from the vessel declarant to
or aircraft. The amend the goods
period to file declaration that
the goods has already
declaration been lodged:
may, upon Provided, That
request, be the request to
extended on amend the goods
valid grounds declaration,
for another together with the
fifteen (15) intended_
days:
Provided, That
the request is
made before the
expiration of
the original
period within
which to file
the goods
declaration:
 33 the port of
entry.
amendments,
must be SEC. 411.
received prior Contents of
to final Goods
assessment or Declaration.
examination of — Goods
the goods. declaration shall
contain the
SEC. 409. names of the
Advance consignee,
Lodgement and importing vessel
Clearance. — or aircraft, port
The Bureau may of departure,
provide for the port of
lodgement and destination and
clearance of date of arrival,
goods the number and
declaration and marks of
supporting packages, or the
documents prior quantity, if in
to the arrival of bulk, the nature
the goods under and correct
such terms and commodity
conditions as description of the
may be goods contained
provided by therein, its
rules and value as set
regulations to forth in a proper
be promulgated invoice, and
under this Act. such other
information as
SEC. 410. may be
Entry of Goods required by
in. Part for rules and
Consumption, regulations. were
and in Part for the declarant
does not have all
Warehousing.
the information
— Goods
required to make
declaration
the goods
covered by one
declaration, a
bill of lading or
provisional or
airway bill over
incomplete
goods which are
goods
meant in part for
declaration shall,
consumption
for certain cases
and in. part for
and for reasons
warehousing
deemed valid by
may be both
the Bureau, be
entered
allowed to be
simultaneously
lodged:
for release at
Provided, That shall be allowed
it contains the un l e ss t he
particulars go od s
deemed de cl ar a t i on
necessary by the ha s b ee n
Bureau for the l o dm d wi t h
acceptance of the Bureau.
the entry filed The goods
and that the declaration
declarant shall, under
undertakes to penalties of
complete it falsification or
within forty-five perjury, contain
(45) days from the following
the filing of the statements:
provisional
goods (a) The
declaration in invoice and
accordance with goods
Section 403 of declaration
this Act. contain an
accurate and
SEC. faithful account
412. of the prices
Statements to paid or payable
be Provided for the goods,
in the Goods and other
Declaration. — adjustments to
No entry of the price
imported goods actually paid or
payable, and
34 invoices and bills
of lading or
that nothing has airway bills
been omitted relating to the
therefrom or goods are the only
concealed ones in existence
whereby the relating to the
government of importation in
the Republic of question, and
the Philippines that these
might be documents are in
defrauded of any the same state as
part of the duties when they were
and taxes received by the
lawfully due on declarant, and
the goods; and the declaration
thereon are in all
(b) To the respects genuine
best of the and true.
declarant's
information and Goods
belief, all the declaration shall
be submitted in the currency
electronically of the invoice,
pursuant to and in such
Republic Act No. other
8792, otherwise particulars
known as the necessary for
"Electronic the proper
Commerce Act assessment and
of 2000", Such collection of
declarations duties and
when printed taxes. The
and certified by a quantity and
competent value of each of
customs officer the several
as a classes of goods
faithfulreproducti shall be
on of the separately
electronic declared
submission shall according to
be considered as their respective
actionable headings or
documents for subheadings
purposes of and the totals of
prosecuting a each heading or
declarant if the subheading shall
declarations are be duly shown.
found to be
fraudulent. SEC. 414.
Commercial
SEC. 413. and
Description of Noncommercial
Goods. — Under Invoice. —
such terms and Commercial
conditions invoice of
prescribed imported goods
under the rules shall contain the
and regulations, following:
the description of
the goods in the
(a)The
goods declaration
must be sufficient agreed
and specific in price
detail to enable paid or
the goods to be to be
identified for
customs paid for
valuation, the
statistical goods;
purposes, and
classification to (b)The
the appropriate adjustmen
tariff heading ts to the
and subheading price paid
or to be 55
paid as
defined in (c)The
Section names of
701(1) of the buyer,
this Act, seller,
and the
if not yet time and
included place of
in the sale;
invoice,
as may be (d)The
applicabl port of
e; entry;

(e)A
sufficien
t
descripti
on to
enable
the
accurate
identificat
ion of
goodg for
tariff
classificat
ion,
customs
valuation,
and
statistica
l
purposes
,
indicatin
g the
correct
commodi
ty
descriptio
n, in
customar
y term or
commerci
al
designati
on, the
grade or
quality,
numbers,
marks or
symbols
 under lease, samples,
which or donations,
they are covered by a
sold by consignment,
the seller pro forma
or invoice, or other
manufact noncommercial
urer, invoice.
together
with the SEC.
marks 415. Mode of
and Payment and
number Terms of
of Trade. —
packages Subject to
in which existing laws
the goods and rules on
are foreign currency 1'
packed; exchange, the
internationally
(f The accepted
quantities in the standards and
weights or practices on the
measures of the
goods shipped; mode of payment
and or remittance
covering import
and export
(g) Any transactions,
other fact including
deemed standards
necessary for developed by
the proper international
examination, trading bodies
customs such as the
valuation, and International
tariff Chamber of
classification of Commerce (ICC)
the goods as on trading terms
may be (incoterms) and
prescribed by on international
rules and letters of credit
regulations. such as the
Uniform
To the Customs and
extent possible, Practice for
the above Documentary
requirements Credits
shall also apply (UCPDC), shall
to goods be recognized.
imported but not
covered by sale, SEC. 416.
such as goods on Examination of
consignment or Samples. —
Customs reasonable
'officers shall period of time.
see to it that The quantity and
representative value of the
samples taken samples taken
during shall be noted in
examination the specified
shall be properly box of goods
receipted for and declaration or
retained within a
36 were cast ashore
or unloaded.
electronic form. Upon approval,
Such samples the goods may be
shall be dilly forwarded with
labeled as will particular
definitely manifests and
identify them duly certified by
with the a customs officer
importation for in charge of the
which they are goods.
taken.
The owner
SEC. 417. of the vessel or
Forwarding of aircraft may be
Cargo and permitted to
Remains of export the
Wrecked Vessel remains of the
or Aircraft. — wreck upon
When vessels or proper
aircrafts are examination and
wrecked_ within inspection. The
the Philippines, remains of a
the original wrecked vessel
owners or shall include not
consignees of the only its hull and
cargo, or by its rigging, but also
underwriters, in all sea stores,
case of goods and
abandonment, equipment, such
may seek as sails, ropes
approval from and chain
the Bureau to anchors.
forward the
goods saved SEC. 418.
from the wreck Derelicts and
to the ports of Goods from
destination Abandoned
without going Wrecks. —
through the Derelicts and all
customs office in goods recovered.
the district in from sea or from
which the goods abandoned
wrecks shall be Derelicts
under the and goods
jurisdiction of the salvaged from
port where the foreign vessels or
goods arrive, and aircrafts
shall be retained recovered from
in the custody of sea or wreck are
the Bureau. If not prim facie
claimed by the dutiable and may
owner, be entered for
underwriter or consumption or
salvor, the same warehousing. If
shall be deemed_ claimed to be of
as property of the Philippine
government. production, and
consequently
When such conditionally
goods are brought duty-free, proof
into port by must be
lighters or other submitted as in
craft, each vessel ordinary cases of
shall submit a reimportation of
manifest of their goods. Foreign
respective cargo. goods la nded
from a vessel or
aircraft in
The distress is
customs officer dutiable if sold
nearest the scene or disposed of
of the wreck in the
shall take charge Philippines.
of the goods
saved and shall
give immediate Before
notice to the any goods taken
District from a recent
Collector or the wreck are
nearest customs admitted. to the
office. customs
territory, the
same shall be
In order to
appraised, and
prevent any
the owner or
attempt to commit
importer shall
fraud, the District
have the same
Collector shallbe
right to appeal
represented_ at the
as in ordinary
salvage of the
importation.
cargo by customs
officers who shall
examine and No part of
receive the a Philippine
inventory made vessel or aircraft
on the cargo. or its equipment,
37
wrecked either
in Philippine or Bureau and other
foreign waters, regulatory
shall be subject agencies under
to duty. existing laws
and regulations.
CHAPTER 2
As a
general rule,
EXAMINATION the Bureau may
examine the
OF GOODS goods in the
presence of the
declarant or an
SEC. 419. authorized
Examination of representative.
Goods. — Examination of
Evarnination of the goods in the
goods, when absence_ of the
required by the declarant or
Bureau, shall be authorized
conducted. representative
immediately may be
after the goods allowe&Threxc
declaration has eptional
been lodged. circumstance
Priority in the and for valid
examination and justifiable
shall be given to grounds, as may
live animals, .be defined by
perishable goods regulations
and other goods promulgated by
requiring the Secretary of
immediate Finance, upon
examination. recommendatio
n of the
Whenever Commissioner.
necessary, a The Bureau may
system of require the
coordination declarant to be
and joint present or to be
examination of represented at
goods s all be the
established by the
38 The
Bureau shall
examination of take samples of
the goods or to the goods only
render any when needed to
assistance establish the
necessary to tariff
facilitate the description and
examination. value of goods
declared, or to
ensure
compliance with electroni
this Act. cally
Samples drawn selected
shall be as for
minimal as physical
possible. examinab
on;
SEC. 420.
Conditions for (d)There
Examination. are issues
— Pursuant to and
internationally controver
accepted sies
standards, the surroundi
Bureau may ng the
adopt goods
nonintrusive declaratio
examination of n and the
goods, such as import
the use of x-ray clearance
machines. process;
or
Physical
examination of (e)The
the goods shall be importer
conducted when: or
declarant
requests
(a)It is
for the
directed
examinati
by the
on of the
Commiss
goods.
ioner on
account
of a The
derogator Commissioner
y may exempt
informati from physical
on; examination the
goods of
(b)The authorized
goods are economic
subject to operators or of
an Alert those provided
Order for under any
issued by existing trade
competen facilitation
t program of the
authority Bureau.
;
Physical
examination,
(c)The when required,
goods are shall be
conducted in an analysis
expeditious when
manner. 39 necessary
;

(c)Issue a
receipt for
a sample
SEC. 421, taken and
Duties of retained
Customs during
Officer Tasked examinat
to Examine the ion; and
Imported
Goods. — In the (d)Report
examination, whether
classification, the goods
and valuation of have been
the goods, the correctly
customsofficer declared
shall: as to
value,
quantity,
(a)Determ
measure
ine
ment,
whether
weight,
the
tariff
packages
classifica
for
tion and
examinati
not
on and
imported
their
contrary
contents
to law.
are in
accordanc Failure on
e with the the part of the
goods customs officer
declaratio to perform the
n, invoice above duties
and other shall be
pertinent penalized
document according to
s; Section 1431 of
Title XIV of this
(b)Take Act.
samples of
the SEC. 422.
imported Customs
goods for Eicpenses
examinati Constituting
on or Charges on
laborator Goods. — The
y cost of
examination shall SEC. 423.
be for the Determination.
account of the of the De
importer or Minimis Value.
exporter, — No duties
subject to and taxes shall
proper be collected on
accounting goods with an
and FOB or FCA
documentation. value of ten
All expenses thousandpesos
incurred by the (P10,000.00) or
Bureau for the below. The
handling or Secretary of
storage of goods Finance shall
and other adjust the de
necessary rainimis value
operations shall as provided
be chargeable herein, every
against the three (3) years
goods, and after the
shall constitute effectivity of
a lien thereon. this Act. The
value herein
CHAPTER 3 stated shall be
adjusted to its
ASSESSMENT present value
using the CPI,
}-ar
AND RELEASE ÷1-,at
PR A
40 assessment
report as
SEC. 424. established
Duty of under this Act.
Customs
Officer Tasked SEC. 425.
to Assess Tentative
Imported Assessment of
Goods. — For Goods Subject
purposes of to Dispute
assessing duties Settlement. —
and taxes on Assessment shall
imported goods, be deemed
the customs tentative if the
officer shall duties and taxes
classify, value, initially assessed
and determine are disputedby
the duties and the importer. The
taxes to be paid. assessment shall
The customs be completed
officer shall upon final
prepare and readjustment
submit an based on the
tariff ruling in provided in
case of Section 403 of
classification this Act.
dispute, or the
final resolution SEC. 427_
of the protest Readjustment
case involving of Appraisal,
valuation, rules Classification
of origin, and or Return. —
other customs
Such approi sal,
issues. classification or
return, as finally
The passed upon and
District Collector approved or
may allow the modified by the
release of the District
imported goods Collector, shall
under tentative not be altered or
assessment upon modified in any
the posting of manner, except:
sufficient
security to cover (1)Within
the applicable one (1)
duties and taxes year after
equivalent to the payment
amount that is of the
disputed. duties,
upon
SEC. 426. statement
Tentative of error in
Assessment of conformit
Provisional y with
Goods Section
Declaration. — 912 of
Assessment of a this Act,
provisional as
goods approved
declaration shall by the
be deemed District
tentative and such Collector
assessment shall ;
be completed
upon final (2)Withi
readjustment and n fifteen
submission by (15) days
the declarant of after
the additional such
information or payment,
documentation upon
required to request
complete the for
declaration reapprais
within the period al or
reclassifi 41
cation
addresse (3)Upon
d to the request
Commiss for
ioner by reappraisa
the l and/or
District reels
Collector ssification
, if the , in the
appraisal form of a
or timely
classificat protest
ion is addressed
deemed to the
to be low; District
Collector
by the
interested
party if
the latter
should be
dissatisfie
d with the
appraisal
or return;
or

(4)Upon
demand
by the
Commissi
oner after
the
completio
n of
complian
ce audit
in
accordanc
e with the
provision
s of this
Act.

SEC.
428.
Assessment of
Duty on Less
Than Entered
Value. —Duty
shall not be
assessed in any
case upon an SEC. 430.
amount less than Period of
the entered Limitation. —
value, unless by In the absence of
direction of the fraud and when
Commissioner in the goods have
cases when the been finally
importer assessed and
certifies at the released, the
time of entry assessment shall
that the entered be conclusive
value is higher upon all parties
than the dutiable three (3) years
value and that from the date
the goods are so of final
entered in order payment of
to meet duties and
increases made taxes, or upon
by the appraiser completion of
in similar cases the post
then pending re- clearance audit.
appraisement;
and the lower SEC. 431.
assessment shall Release of
be allowed only Goods after
when the
Payment of
importer's
Duties and
contention is
sustained by a Taxes. — Goods
final decision, declared shall be
and shall appear released when
that such action duties and taxes
of the importer and other lawful
was taken in charges have
good faith after been paid or
due diligence secured and all
and inquiry. the pertinent
laws, rules and
regulations have
SEC. 429. been complied
Final with.
Assessment. —
Assessment When the
shall be Bureau requires
deemed final laboratory
fifteen (15) analysis of
days after samples,
receipt of the detailed
notice of technical
assessment by documents or
the importer or expert advice, it
consignee. may release the
goods before
the results of
such sufficient
examination are security by the
known after declarant.
posting of
42 neither the
government
SEC. 432. nor the
Release of customs officer
Goods to the shall be held
Holder of Bill of liable for any
Lading or damage arising
Airway Bill. — from wrongful
Any customs release of the
officer who goods:
releases goods to Provided, That
the consignee when the release
orlawful holder of goods is made
of the bill of against such
lading or airway written order,
bill shall not be the customs
liable for any officer shall
defect or require the
irregularity in its submission of a
negotiation copy of the bill.
unless the
customs officer SEC. 434.
has notice of the Release of
defect or Goods Upon
irregularity. Order of
Importer. —An
SEC. 433. importer may
Release of issue a written
Goods Without authorization for
Production of the release of
Bill of Lading goods stored in
or Airway Bill. a bonded
— No customs warehouse to
officer shall another person.
release goods to Such
any person authorization
without the shall not relieve
submission of the importer
the bill of from liability for
lading or the duties, taxes
airway bill and other
covering the charges clue on
goods, except the goods unless
on written order the person to
of the carrier or whom the
agent of the release was
vessel or authorized
aircraft, in assumes such
which case liability.
 SEC. 435. SPECIAL
Withholding PROCEDURES
Release
SEC. 437.
Pending
Traveler and
Satisfaction of
Passenger
Lien. — When
Baggage. —
the District
The Bureau
Collector is duly
shall provide
notified through
simplified
a lawful order of
customs
a competent
procedure for
court of a lien
traveler and
for freight,
baggage
lighterage or
processing
general average
based on
upon any
international
imported goods,
agreements and
the District
customs best
Collector shall
practices.
withhold the
release of the Travelers
goods unless the shall be permitted
claim has been to export goods
paid or secured. for commercial
In case of purposes,
disagreement, subject to
the District compliance
Collector may with the
release the necessary
goods after export
payment of the formalities and
freight and payment of
lighterage due export duties,
on the quantity taxes and
or weight charges, if any.
landed as
actually SEC. 438.
determined Postal Item or
Mail. — Postal
SEC. 436. item or mail
Fine or shall include
Surcharge on letter-post and
Goods. — parcels, as
Goods subject to described in
any fine or international
surcharge shall practices and
be released only agreements, such
after the as the Acts of the
payment of the Universal Postal
fine or Union (AUPU),
surcharge. 43 currently in
CHAPTER 4 force.
 A However, a
simplified separate goods
procedure shall declaration shall
be used in the be required for
clearance of the following:
postal item or
mail, including (a) G
the collection of oods
the applicable whose
duties and taxes value
on such items or fall
goods. within
the level
When all that the
the information Commiss
required by the ioner has
customs are determin
available in the ed to be
special taxable
declaration form and thus
for postal items must be
as provided in covered
the AUPU or by a
similar goods
international declaratio
agreements, the n;
special
declaration (b) P
form and rohibited
supporting and
documents shell regulate
be the goods
d goods;
declaration..

(c) Goods, the exportation of which must be certified; and

44 practices for
air shipments
(d) Imported goods under a customs procedure other than
for consumption.
considered as
SEC. 439, time-sensitive
and requiring
Express
pre-arrival
Shipment. —
clearance.
The Bureau shall
Express
provide
shipments of
simplified
accredited air
customs
express cargo
procedures
operators may
based.on
be released
international
prior to the
standards and
payment of the
customs best
duty, tax and
other charges EXPORT
upon posting of
a sufficient CLEARANCE AND
security.
DECLARATION
SEC. 440.
Establishment
of Advance SEC. 500.
Customs Export
Clearance and Declaration_ —
Control All goods
Program. — exported from
The Bureau the Philippines,
may establish whether subject
and implement to export duty or
a voluntary not, shall be
program on declared through
advance a competent
customs customs office
clearance and through an
control on export
containerized declaration, duly
cargoes. The signed
details of the electronically or
voluntary otherwise by the
advance party making
customs the declaration.
clearance shall
be subject to The
the rules and description of the
regulations to goods in the
be issued by export
the Bureau declaration must
after contain
conducting the sufficient and
necessary public specific
hearings and information for
consultations statistical
with the purposes as well
concerned as for the proper
sectors. valuation and
classification of
TITLE V the goods.

SEC.
EXPORT 501. Export
Product to
CLEARANCE AND Conform to
Standard
FORMALITIES Grades. — If
applicable,
CHAPTER 1 products shall
conform to
export standard 45
grades
established by related laws
the government. and regulations.
The packaging Export
of the said declaration may
goods shall not be granted
likewise be for goods
labeled and violating the
marked in aforementioned
accordance with requirements_

SEC .
502.
Lodgement
and
Processing of
Export
Declaration.
— The Bureau
shall
promulgate
rules and
regulations to
allow manual
and electronic
lodgement and
processing of
the export
declaration.

SEC. 503.
Rules of
Origin. —
Pursuant to the
applicable rules
of origin, the
Bureau or any
other designated
government
agency may
determine the
origin of goods
for export and,
if appropriate,
issue the
corresponding
certificates of
origin.
However, the
exporter may
adopt a self-
certification
 system: entry to
Provided, That another
it is duly port of
accredited by entry as
the Bureau or exit point
any other for
authorized outright
government exportati
agencies. on;
(b)From
TITLE VI port of
entry to
CUSTOMS another
port of
entry or
TRANSIT AND inland
customs
TRANSSHIPMENT office;

(c)From
inland
CHAPTER 1 customs
office to
a port of
CUSTOMS
entry as
exit point
TRANSIT for
outright
exportati
SEC. 600. on; and
Customs Transit
in the Customs (d)From
Territory. — one port
Customs transit of entry
within the or inland
customs territory customs
shall be allowed office to
for goods except another
those intended for port of
consumption, to entry or
be transported as inland
follows: customs
office.
(a)From
port of
46 transit.
However,
A transit transfer of goods
permit is in customs
required for transit from one
goods means of
transported transport to
under customs another shall be
allowed:
Provided, That destination or
any customs seal inland customs
or fastening is office, and goods
not broken or intended for
tampered. transit covered
by Republic Act
The party No. 10668,
responsible for otherwise known
the compliance of as "An Act
the obligations Allowing Foreign
imposed on Vessels to
customs transit Transport and
shall ensure Co-Load Foreign
that the goods Cargoes for
are presented Domestic
intact and in Transshipment
due course at and for Other
the customs Purposes", shall
office of not be subject to
destination. the payment of
Failure to comply duties and taxes
with the at the port of
aforementioned entry: Provided,
obligations or That any
likewise failure conditions and
to follow a security
prescribed required by the
itinerary or Bureau are
period for complied with.
delivery of the
goods may Goods for
immediately consumption and
subject the goods other goods
to the intended for
corresponding customs transit not
duties, taxes and covered_ by the
other applicable immediately
fines, penalties, preceding
and surcharges. paragraph shall be
subject to the
SEC. 60L payment of
Duty and Tax duties and taxes
on Goods at the port of
Intended for discharge.
Transit. —
Transit goods SEC. 602.
admitted for Carrier's
storage in a Security. —
customs bonded Carriers that
warehouse,: or transport
for outright imported goods
exportation at that shall be
the port of placed under
customs transit 47
from a port of
entry to other CHAPTER 2
ports, shall post
a general
transpOrtation CUSTOMS
security
amounting to at TRANSSHIPMENT
least fifty
thousand pesos
(P50,000.00). SEC. 603.
Such security Customs
shall ensure the Transshipment.
complete and — Goods
immediate admitted for
delivery of transshipment
goods to the shell not be
customs officer subject to the
at the port of payment of
destination and duties and taxes:
the payment of Provided, That
pertinent the goods
customs charges declaration for
and expenses customs
and other transshipment
transfer costs. particularly
The amount of indicates such
the security nature of the
may be goods, duly
adjusted by the supported by
Commissioner, commercial or
upon approval transport
of the Secretary documents or
of Finance. evidence as
required by the
Bureau.

Goods
for
transshipment
must be
exported from
the Philippines
within thirty
(30) days from
arrival thereof.
The
Commissioner
may allow an
extension of such
period after the
establishment of
valid reasons.
 SEC. 604. Unless it
Goods Entered shall appear in
for Immediate the bill of
&exportation. — lading, airway
Where an intent bill, invoice,
of reexportation manifest, or
of the goods is other
shown by the bill satisfactory
of lading, evidence, that
invoice, goods arriving
manifest, or in the
other satisfactory Philippines are
evidence, the destined for
whole or a part transshipment,
of a bill no exportation
comprising not thereof will be
less than one permitted except
package may be under entry for
entered for immediate
immediate reexportation
reexportation under sufficient
under security_ security in an
The District amount equal to
Collector shall the ascertained
designate the duties, taxes and
vessel or aircraft other charges.
in which the
goods are loaded Upon the
constructively as reexportation of
a warehouse to the goods, and
facilitate the the production of
direct transfer of proof of landing
the goods to the beyond the limits
exporting vessel of the
or ai rcraft. Philippthes, the
security shall be
released.
48 SEC. 700.
Sequential
TITLE VII Application of
Valuation
IMPORT DUTY Methods. —
Imported goods
shall be valued in
AND TAX
accordance with
the provisions of
CHAPTER 1 Section 701 of
this Act
BASIS OF whenever the
conditions
VALUATION prescribed
therein are
fulfilled.
 Where the 705 of this Act,
customs value the customs
cannot be value shall be
determined determined
under the under Section
provisions of 704.
Section 701 of
this Act, it is to When the
be determined customs value
by proceeding cannot be
sequentially determined
through the under Sections
succeeding 701 through
sections hereof 705, it may be
to the first such determined
section under under Section
which the 706 of this Act.
customs value
can be
SEC. 701.
determined.
Transaction
Except as
provided_ in Value System
Section 704 of — Method One.
this Act, it is — The
only when the transaction
customs value value shall be
cannot be the price
determined actually paid or
under the payable for the
provisions of a goods when
particular sold for export
section that the to the
provisions of the Philippines
next section in adjusted in
the sequence accordance with
can be used. the provisions of
this section:
If the Provided, That:
importer does
not request that (a) There
the order of are no
Sections 704 restrictions as to
and 705 of this the disposition
Act be or use of the
reversed, the goods by the
normal order of buyer other
the sequence is than restrictions
to be followed. which:
If the importer
so requests but
it is impossible
to determine the
customs value
under Section
 49 the seller
are not
(i)Are related,
imposed or where
or the buyer
required and the
by law or seller are
by
Philippin related,
e that the
authoriti transacti
es; on value
is
(ii)Limit acceptabl
the e for
geographi customs
cal area in purposes
which the under the
goods provision
may be
resold; or s hereof

For
(iii) D
purposes of this
o not
Act, persons
substanti
shall be deemed
ally
related only if:
affect
the value
of the (i)They
goods; are
officers
or
(b)The
directors
sale or
of one
price is
anther's
not
business;
subject to
some
condition (ii) T
hey are
or legally
considera recogniz
tion for ed
which a partners
value in
cannot be business;
determine
d with (iii) T
respect to here exists
the goods an
employer-
being employee
valued; relationshi
and p between
them;
(c)The
buyer and
 (iv) A or
ny person indirectly
directly or controls
indirectly the other;
owns,
controls (vi) B
or holds oth of
five them are
percent directly
(5%) or or
more of indirectly
the controlled
outstandin by a third
g voting person;
stocks or
shares of (vii) T
both ogether
seller and they
buyer; directly
or
indirectly
(v)One of control a
them third
directly person; or
50 the eight (8)
cases cited in
(viii) the preceding
They are paragraph.
members of the
same family, In a sale
including those between related
related by persons, the
affinity or transaction
consanguinity value shall be
up to the fourth accepted as
civil degree. basis for
customs
Persons valuation
who are whenever the
associated in importer
business with demonstrates
one another in that such value
that one is the closely
sole agent, sole approximates
distributor or sole one of the
concessionaire, following
however occurring at or
described, of the about the same
other shall be time:
deemed to be
related for the (a)The
purposes of this transactio
Act if they fall n value in
within any of
 sales to for the imported
unrelated goods:
buyers of
identical (1) To
or the extent that
similar they are
goods for incurred by the
export to buyer but are
the same not included in
country the price
of actually paid or
i mportati payable for the
on; imported goods:

(b)The (a)Comm
customs issions
value of and
identical brokerag
or similar e fees
goods as except
determin buying
ed under commissi
the ons;
provision
s of
(b) C
Section
ost of
704 of
containe
this Act;
rs;
or

(c)The (c)Cost
customs of
value of packing,
identical whether
or similar for labor
goods are or
determine materials
d under ;
the
provision (d)Value,
s of apportione
Section d as
705 of appropriat
this Act. e, of the
following
goods and
In services:
determining the material
transaction s,
value, the itormumplit
following shall g nA rf.R
and
be added to the w ir n i i n v
price actually
paid or payable
 51 indirectly
, as a
items used in condition
the production of sale of
of imported the goods
goods; to the
materials buyer.
consumed in the
production of the (2)Value
imported goods; of any
and engineering, part of
development, the
artwork, design proceeds
work and plans of any
and sketches subseque
undertaken nt resale,
elsewhere than disposal
in the or use of
Philippines and the
necessary for the imported
production of goods
imported. goods, that
where such goods accrues
and services are directly
supplied directly or
or indirectly by indirectly
the buyer free of to the
charge or at a seller;
reduced cost for
use in (3)Cost of
connection with transport
the production of the
and sale for imported
export of the goods
imported goods; from the
and port of
exportati
(e)Amoun on to the
t of port of
royalties entry in
and the
license Philippin
fees es;
related to
the goods (4)Loadi
being ng,
valued unloadin
that the g and
buyer handling
must pay charges
either associate
directly d with
or the
 transport determined
of the under method
imported one, the dutiable
goods value shall be the
from the transaction value
country of identical
of goods sold for
exportati export to the
on to the Philippines and
port of exported at or
entry in about the same
the time as the
Philippin goods being
es; and valued. For
purposes of this
(6) Cost of section,
insurance. "Identical goods"
refer to goods
whf&are the
All
same in all
additions to the
respects,
price actually
including
paid or payable
physical
shall be made
characteristics,
only on the basis
quality and
of objective and
reputation.
quantifiable data.
Minor
differences in
SEC. 702.
appearances
Transaction
shall not
Value ofidentical
preclude goods
Goods — otherwise
Method Two. — conforming to the
Where the definition from
dutiable value being regarded as
cannot be identical.
52 Value of Similar
Goods —
If, in Method Three. —

applying this Where the

section, more dutiable value
than one cannot be
transaction determined
value of under the
identical goods preceding
are found, the method, the
lowest value dutiable value
shall be used to shall be the
determine the transaction
customs value. value of similar
goods sold for
SEC. 703. export to the
Transaction Philippines and
exported at or value cannot be
about the same determined
time as the goods under the
being valued. For preceding
purposes of this method, the
section, "Similar dutiable value
goods" refer to shall be the
goods which, deductive value
although not unless otherwise
alike in all requested by the
respects, have importer as
like provided in
characteristics Section 700
and similar hereof. The
component deductive value
materials which which shall be
enable them to based on the
perform the unit price at
same functions which the
and to be imported goods
commercially or identical or
interchangeable similar imported
. The quality of goods are sold in
the goods, its the Philippines,
reputation and in the same
the existence condition as
of a trademark when imported,
shall be among in the greatest
the factors to aggregate
be considered quantity, at or
in determining about the time
whether goods of the
are similar . importation of
the goods being
it in valued, to
applying this persons not
section, more related to the
than one persons from
transaction whom they buy
value of such goods;
identical goods subject to
are found, the deductions for
lowest such the following:
value shall. be
used to (1)Either
determine the the
customs value. commissi
ons
SEC. 704. usually
Deductive Value paid or
— Method agreed to
be paid or
Four. — Where
the
the dutiable
additions g and
usually handling
made for charges
profit and associate
general d with
expenses the
in transport
connectio of the
n with imported
sales in goods
such from the
country of country
imported of
goods of exportatio
the same n. to the
class or port of
kind; entry in
the
(2)The Philippine
usual s; and
costs of (iii)
transport insurance
and ; and
insuranc
e and (4)The
associate customs
d costs duties
incurred and other
within national
the taxes
Philippin payable
es; 53 in the
Philippin
(3)Where es by
appropria reason of
te, the the
costs of: importati
(i) on or sale
transport of the
of the goods.
imported
goods If neither
from the the imported
port of goods nor
exportatio identical nor
n to the similar imported
port of goods are sold at
entry in or about the time
the of importation of
Philippin the goods being
es; (ii) valued in the
loading, Philippines in the
unloadin conditions they
were imported, quantity to
the customs persons in the
value shall, Philippines who
subject to the are not related
conditions set to the persons
forth in the from whom they
preceding buy such goods,
paragraph, be subject to
based on the allowance for
unit price at the value added
which the by such
imported goods processing and
or identical or deductions
similar imported provided under
goods sold in subsections (1),
the Philippines (2), (3) and (4)
in the condition hereof.
they were
imported and at SEC. 705.
the earliest date computed Value
after the — Method Five.
importation of — Where the
the goods being dutiable value
valued, but cannot be
before the determined
expiration of under the
ninety (90) days preceding
after such method, the
importation. dutiable value
shall be the
If neither computed value
the imported of the sum of
goods nor
identical nor (1)The
similar cost or
imported goods the value
are sold in the of
Philippines in materials
the condition as and
imported, then, fabricatio
if the importer n or other
so requests, the processin
dutiable value g
shall be based employed
on the unit in
price at which producin
the imported g the
goods, after imported
further goods;
processing, are
sold in the (2)The
greatest amount
aggregate for profit
 and reflected
general in the
expenses sale of
equal to goods of
that the same
usually class or
54 paragraph
(1)
kind as the hereof.
goods being
valued which The
are made by Bureau shall
producers in the not require or
country of compel any
exportation for person not
export to the resirli II gin the
Philippines; Philippines to
produce for
(3)The examination, or
freight, to allow access
insurance to, any account
fees and or other record
other for the purpose
transport of determining
ation a computed
expenses value.
for the However,
importati information
on of the supplied by the
goods; producer of the
goods for the
(4)Any purposes of
determining the
assist, if
customs value
its value may be verified
is not in another
included country with
under the agreement
paragraph of the producer
(1) and provided
hereof; that said
and producer will
give sufficient
advance notice to
(5)The
the government
cost of
of the country in
container
question and
s and
that the latter
packing,
does not object
if their
to the
values are
investigation.
not
included
under
 SEC. 706. (2)A
Fallback Value system
— Method Six. that
— If the dutiable provides
value cannot for the
be determined acceptanc
under the e for
preceding customs
methods purposes
descri bed of the
above, it shall higher of
be determ ined two (2)
by usi ng ot her alternativ
reasonable e values;
means and on
the basis of
data available
in the
Philippines. If
the importer so
requests, the
importer shall
be informed in
writing of the
dutiable value
determined
under method
six and the
method used to
determine such
value.

No
dutiable value
shall be
determined
under method
six on the basis
of:

(1)The
selling
price in
the
Philippine
s of goods
produced
in the
Philippin
es;
 55 s
values.
(3)The
price of SEC. 707.
goods in Ascertain,men,t
the
domestic of the Accuracy
market of of the Declared
the Value. —
country of Nothing in this
exportatio section shall be
n.; construed as
restricting or
(4)The calling into
cost of question the
productio right of the
n, other Bureau to
than ascertain the
computed truth or
values, accuracy of any
that have statement,
been document or
determin declaration
ed for presented for
identical customs
or valuation
similar purposes. When
goods in a declaration has
accordan been presented
ce with and when the
method Bureau has
five reason to doubt
hereof the truth or
accuracy of the
(5)The particulars or of
price of documents
goods for produced in
export to support of such
a country declaration, it
other than may ask the
the importer to
Philippin
es; provide further
explanation,
including
(6)Mini documents or
mum other evidence,
customs that the declared
values; value represents
or the total amount
actually paid or
(7)Arbit payable for the
rary or imported goods,
fictitiou adjusted in
accordance with
the provisions of goods cannot be
Section 701 of determined under
this Act. method

If in the
course of
determining the
dutiable value of
imported_ goods,
it becomes
necessary to
delay the final
determination of
such dutiable
value, the
importer shall
nevertheless be
able to Secure the
release of the
imported goods
upon_ posting of a
sufficient security
in an amount
equivalent to the
duties and taxes
in dispute
conditioned on
the payment of
additional duties
and taxes, if any,
as may be
determined:
Provided, That
prohibited
goods shall not
be released
under any
circumstance.

K after
receiving further
information, or
in the absence of
a response, the
Bureau still has
reasonable
doubts on the
truth or accuracy
of the declared
value, it may
deem that the
customs value of
the imported
56
57

one, without thereof quoted in

prejudice to an foreign currency
importer's right to shall be
appeal pursuant converted into the
to Section 1104 of currency of the
this Act. Before Philippines at the
taking a final current rate of
decision, the exchange or value
District Collector specified or
shall published, from
communicate to time to time, by
the importer, in the Bangko
writing if Sentral ng
requested, the Filipinas (BSP).
grounds for
doubting the truth CHAPTER 2
or accuracy of the
particulars or
SPECIAL
documents
produced and give
the importer a DUTIES AND
reasonable
opportunity to TRADE
respond. When a
final decision is REMEDY
made, the Bureau
shall MEASURES
communicate its
decision and the
grounds therefor
SEC. 709.
in writing.
Government's
SEC_ 708.
Right of
Exchange Rate. Compulsory
— For the
Acquisition. In
order to protect
assessment and
government
collection of
revenues against
import duty upon
undervaluation of
imported goods
goods, the
and for other
Commissioner
purposes, the
value and prices may, motu
proprio or upon
the Where no
recommendation appeal is m ade
of the District by t he im port er,
Collector, acquire or upon
imported goods reaffirmation of
under question for the.

a price equal to Commissioner's

their declared decision during
customs value plus the appeals
any duties already process, the
paid on the goods, Bureau or its
payment for agents shall sell
which shall be the acquired
made within ten goods pursuant to
(10) working existing laws and
days from regulations.
issuance of a
warrant signed Nothing in
by the this section limits
Commissioner or affects any
for the other powers of
acquisition of such the Bureau with
goods. respect to the
disposition of the
An importer goods or any
who is liability of the
dissatisfied. with importer or any
a decision of the other person with
Commissioner respect to an
pertaining to this offense
section may, within committed in the
twenty (20) importation of the
working days goods.
after the date on
which notice of SEC. 710.
the decision is
Marking of
given, appeal to
Imported Goods
the Secretary of
and Containers.
Finance, and
—(A) Marking of
thereafter if still
Goods. — Except
dissatisfied, to the
as hereinafter
CTA as provided
provided, all
for in Section
goods of foreign
1136 of this Act.
origin imported
into the as
Philippines or indicating
their containers, the country
as provided in of origin
subsection (B) and
hereof shall be prescribe
conspicuously any
marked in any reasonable
official language method of
of the Philippines marking,
as legibly, whether by
indelibly and printing,
permanently as stenciling,
the nature of the stamping,
goods or branding,
container will labeling or
permit and in by any
such manner as to other
indicate to an reasonable
ultimate method,
purchaser in the and in a
Philippines the conspicuo
name of the us place
country of origin on the
of the goods. goods or
Pursuant thereto, container
the where the
Commissioner marking
shall, with the shall
approval of the appear;
Secretary of
Finance: (2)Require
the
(1)Determ addition of
ine the other
character words or
of words symbols
and which may
phrases or be
abbreviatio appropriat
n thereof e to
which shall prevent
be deception
acceptable or mistake
 as to the Philippines
origin of without injury;
the goods
or as to the
origin of
any other
goods with
which such
imported
goods is
usually
combined
subsequent
to
importatio
n but
before
delivery to
an
ultimate
purchaser;
and

(3)Author
ize the
exception
of any
goods
from the
requireme
nts of
marking if

(1) Such
goods are
incapable
of being
marked;

(ii) Such
0c:ids cannot be
marked prior to
shipment to the
58
59
(ill) Such other
goods cannot be form;
marked prior to
shipment to the (vii)Such
Philippines, goods are
except at an to be
expense processed
economically in the
prohibitive of Philippines
their importation; by the
importer
(iv)The or for the
marking importer's
of a account
container other than
of such for the
goods purpose of
will concealing
reasonably the origin
indicate of such
the origin goods and
of such in such
goods; manner
that any
(v)Such mark
goods contemplat
are crude ed by this
substanc section
es; would
necessarily
(vi)Such be
goods are obliterated
imported ,
for use by destroyed,
the or
importer permanent
and not ly
intended concealed;
for sale in
their (viii)An
imported ultimate
or any purchaser,
by reason
of the which is
character economica
of such lly
goods or prohibitiv
by reason e, and the
of the failure to
circumstan mark the
ces of their goods
importatio before
n, must importatio
necessarily n was not
know the due to any
country of purpose of
Origin of the
such goods importer,
even producer,
though seller or
they are shipper to
not avoid
marked to complianc
indicate e with this
their section.
origin;
(B)
(ix)Such Marking of
goods were Containers.
produced Whenever goods
more than are exempt under
twenty (20) paragraph (3) of
years prior subsection (A) of
to their this section from
importatio the requirements
n into the of marking, the
Philippine immediate
s; or container, if any,
of such goods, or
(x)Such such other
goods container or
cannot be containers of such
marked goods, shall be
after marked in such
importatio manner as to
n except at indicate to an
an ultimate
expense purchaser in the
Philippines the
 -
name of the
all provisions of
country of origin
this section,
of such goods in
including the
any official
same exceptions
language of the
as are applicable
Philippines,
to goods under
subject to
paragraph (3) of
subsection (A).

(C)Fine for
Failure to
Mark. —
If, at the
time of
importation
any good
or its
container,
as
provided
in
subsection
(B) hereof,
is not
marked in
accordanc
e with the
requireme
nts of this
section,
there shall
be levied,
collected,
and paid
upon such
good a
marking
duty of
five
percent
(5%) of
dutiable
value,
which
shall be
deemed to subsection
have (C) of this
accrued at section
the time shall have
of been
importatio deposited.
n.
(E)The
(D)Release failure or
Withheld refusal of
Until the owner
Marked. — or importer
No to mark
imported the goods
goods held as herein
in required
customs within a
custody period of
for thirty (30)
inspectio days after
n, due notice
examinati shall
on, or constitute
assessmen as an. act
t shall be of
released abandonm
until such ent of said
goods or goods and
their their
containers disposition
shall have shall be
been governed
marked in by the
accordanc provisions
e with the of this Act
requireme relative to
nts of this abandonm
section ent of
and until imported
the amount goods.
of duty
estimated SEC. 711.
to be Dumping
payable Duty. —
under
 The Industries from
provisions of Unfair Trade
Republic Act No. Competition,
8752, otherwise Amending for
known as the the
"Anti-Dumping
Act of 1999", are
hereby adopted.

SEC. 712.
Safeguard
Duty.

The
provisions of
Republic Act No.
8800, otherwise
known as the
"Safeguard
Measures Act",
are hereby
adopted.

SEC. 713.
Countervail
ing Duty. —

The
provisions ions of
Republic Act No.
8751, otherwise
known as "An Act
Strengthening the
Mechanisms for
the Imposition of
Countervailing
Duties on
Imported
Subsidized
Products,
Commodities or
Articles of
Commerce in
Order to Protect
Domestic