Macadangdang, Ma. Vianca Joy R.

BSAC 3-1
[ REPUBLIC ACT NO. 10863 REVIEWER]
"Customs Modernization and Tariff Act (CMTA)"
ORGANIZATION AND FUNCTION OF THE BUREAU OF CUSTOMS

BUREAU OF CUSTOMS – GENERAL ADMINISTRATION

CHIEF OFFICIALS OF THE BUREAU (Sec. 200, CMTA):
 Commissioner – shall be appointed by the President of the Philippines.
 Deputy Commissioners – shall assist the Commissioner.
– at least four (4) but not more than six (6) Deputy Commissioners.
– shall also be appointed by the President and at least majority of whom
shall come from the ranks of the Bureau.

FUNCTIONS OF THE BUREAU (Sec. 202, CMTA):

Sec. 202. Functions of the Bureau. – The Bureau shall
exercise the following duties and functions:
(a) Assessment and collection of customs revenues from
imported goods and other dues, fees, charges, fines and
penalties accruing under this Act;
(b) Simplification and harmonization of customs procedures
to facilitate movement of goods in international trade;
(c) Border control to prevent entry of smuggled goods;
(d) Prevention and suppression of smuggling and other
customs fraud;
(e) Facilitation and security of international trade and
commerce through an informed compliance program
(f) Supervision and control over the entrance and clearance
of vessels and aircraft engaged in foreign commerce;
(g) Supervision and control over the handling of foreign
mails arriving in the Philippines for the purpose of
collecting revenues and preventing the entry of
contraband;
(h) Supervision 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 government revenue and prevention of
entry of contraband;
(i) Conduct a compensation study with the end view of
developing and recommending to the President a
competitive compensation and remuneration system to
attract and retain highly qualified personnel, while
ensuring that the Bureau remains financially sound and
sustainable;
(j) Exercise of exclusive original jurisdiction over forfeiture
cases under this Act; and
(k) Enforcement of this Act and all other laws, rules and
regulations related to customs administration.
Functions of the BOC
The enforcement of the CMTA and
other customs administration-related
laws, rules and regulations are vested
with the Bureau of Customs including:
- assessment and collection of taxes,
penalties, fines, and charges;
- to facilitation of movement of goods
in international trade;
- border control to prevent entry of
smuggled goods;
- prevention of smuggling and other
customs fraud;
- supervision and control over the
entrance and clearance in foreign
commerce;
- supervision and control over the
handling of foreign mails;
- supervision and control on all import
and export cargoes;
- compensation study for its personnel;
- exclusive original jurisdiction over
forfeiture cases under CMTA; and
- enforcement of CMTA and other
laws, rules and regulations related to
customs administration.
POWERS AND FUNCTIONS OF THE COMMISSIONER (Sec. 201 & Sec. 204, CMTA):
Sec 201. Powers and Functions of the Commissioner. – The Powers and Functions of the
Commissioner shall have the following powers and functions: Commissioner of Customs
(a) Exclusive and original jurisdiction, to interpret the
provisions of this Act, in collaboration with other relevant Commissioner of Customs (COC) is
government agencies, subject to review by the Secretary the highest official in the BOC and has
of Finance; all the powers attached to the office
(b) Exercise any customs power, duties and functions,
including the power:
directly or indirectly;
(c) Review any action or decision of any customs officer
performed pursuant to the provisions of this Act; - to interpret the provisions of CMTA;
(d) Review and decide disputed assessments and other - to exercise any customs power, duties
matters related thereto, subject to review by the and functions, directly or indirectly;
Secretary of Finance and exclusive appellate jurisdiction - to review and decide disputed
of the Court of Tax Appeals (CTA); assessments;
(e) Delegate the powers vested under this Act to any - to delegate powers;
customs officer with the rank equivalent to division chief - to assign and resign any customs
or higher, except for the following powers and functions: officers;
(1) Promulgation of rules and regulations; - to perform all other duties and
(2) Issuance, revocation or modification of rulings; and functions for the effective
(3) Compromise or abate of customs obligations. implementation of CMTA; and
(f) Assignment or reassignment of any customs officer
- to promulgate rules and regulations
subject to the approval of the Secretary of Finance:
Provided, That District Collectors and other customs subject to the approval of the
officers that perform assessment functions shall not Secretary of Finance.
remain in the same area of assignment for more than
three (3) years; and
(g) Perform all other duties and functions as may be
necessary for the effective implementation of this Act
and other customs related laws.

Sec. 204. Promulgation of Rules and Regulations. – The Commissioner, subject to the approval of the
Secretary of Finance, shall promulgate rules and regulations for the enforcement of this Act. The
Commissioner shall regularly prepare and publish an updated customs manual, and the rules, regulations
and decisions of the Bureau. The Commissioner shall furnish the Congress of the Philippines, the NEDA
and the Tariff Commission with electronic copies of department orders, administrative orders, circulars,
and rules and regulations promulgated pursuant to this Act.

DUTIES OF THE COMMISSIONER OF CUSTOMS (Sec. 203 & 205, CMTA):

Sec. 203. Annual Report of the Commissioner. – The Commissioner shall submit to the President,
the Congress of the Philippines and the NEDA an annual report on the performance of the Bureau,
on or before March 31 of the following year.

Sec. 205. Copies of Goods Declaration. – The Commissioner shall regularly furnish the NEDA, the
Philippine Statistics Authority (PSA), the Bureau of Internal Revenue (BIR) and the Tariff
Commission electronic copies of all customs goods declaration processed and cleared by the
Bureau.
 CUSTOMS DISTRICTS AND PORTS OF ENTRY
For administrative purposes, the Philippines is divided into as many Customs Districts
as necessary. Each Customs District shall be supervised by one (1) District Collector,
assisted by as many Deputy District Collectors as may be necessary.

PRINCIPAL PORTS OF ENTRY (Sec. 207, CMTA):

Sec. 207. Ports of Entry. – All ports of entry Port of Entry – refers to a domestic port open to
shall be under the supervision and control of a both domestic and international trade, including
Customs District. A District Collector shall be principal ports of entry and subports of entry. A
assigned in the principal ports of entry while a principal port of entry is the chief port of entry of the
Deputy District Collector may be assigned to
Customs District wherein it is situated and is the
other types of ports of entry.
permanent station of the District Collector of such
The principal ports of entry shall be located in port. Subports of entry are under the administrative
Aparri, San Fernando, Manila, Manila jurisdiction of the District Collector of the principal
International Container Port, Ninoy Aquino port of entry of the Customs District. Port of entry as
International Airport, Subic, Clark, Batangas, used in this Act shall include airport of entry.
Legaspi, Iloilo, Cebu, Tacloban, Surigao,
Cagayan de Oro, Zamboanga, Davao, Limay Principal ports of entry are listed in Sec. 207 of
and such other ports that may be created CMTA. They are as follows:
pursuant to this Act. 1. Aparri; 10. Cebu;
2. San Fernando; 11. Tacloban;
For the effective enforcement of the Bureau's 3. Manila, Manila Int’l 12. Surigao;
functions and without hampering business and
Container Port; 13. Cagayan de Oro;
commercial operations of the ports, sea ports
and airport authorities and private ports and 4. Ninoy Aquino; 14. Zamboanga;
airport operators shall provide suitable areas 5. International Airport; 15. Davao;
for examination and for other customs 6. Subic, Clark; 16. Limay; and
equipment free of charge within, a definite 7. Batangas; 17. Such other ports
period of time, as agreed with private port and 8. Legaspi; that may be created
airport operations, if any. 9. Iloilo; pursuant to CMTA.

DUTIES OF THE DISTRICT COLLECTOR (Sec. 210, CMTA):

Sec. 210. Duties of the District Collector. – The Duties of District Collector
District Collector shall have the following duties
in their assigned Customs District: The District Collector has supervision and
(1) Ensure entry of all imported goods at the control over the ports of entry within his
customs office; jurisdiction. He has the power to enforce all
(2) Prevent importation and exportation of
customs laws, rules, and regulations within the
prohibited goods;
(3) Ensure legal compliance of regulated goods
scope of his territorial jurisdiction.
and facilitate the flow of legitimate trade;
(4) Examine, classify and value imported The District Collector shall report to the
goods; Commissioner any probable or initiated litigation
(5) Assess and collect duties, taxes and other within the Customs District and shall submit
charges on imported goods; regular monthly reports on all district transactions.
(6) Hold and dispose imported goods in (Sec. 213)
accordance with this Act;
(7) Prevent smuggling and other customs fraud;
(8) Perform other necessary duties that may be
assigned by the Commissioner for the effective
implementation of this Act.