Holy Cross of Davao College

     OFFICE OF THE VICE PRESIDENT FOR ACADEMIC AFFAIRS
     SCHOOL OF BUSINESS AND MANAGEMENT EDUCATION
       BACHELOR OF SCIENCE IN CUSTOMS ADMINISTRATION
Tel. No. (082) 221 – 9071 loc. 134
Email: lozano@hcdc.edu.ph
Sta. Ana Avenue corner C. De Guzman Street., Barangay 14-B, Davao City
Other Campuses: Camudmud (IGaCOS) and Bajada (SOS Drive)

NARRATIVE REPORT ON WEBINAR ATTENDED 

Topic            : BONDED WAREHOUSE PROCEDURES AND OPERATIONS

Speaker        : CB JOYCE S. SEMACON
Date             : JULY 16, 2022

Discussion (Narrative on the content of the discussion):

Warehouse
is a commercial building for storage of goods.

Customs bonded warehouse

shall refer to a warehouse facility licensed by the bureau of customs to
import, receive, and store, without payment of duties and taxes.

CBW IN THE CMTA

SEC. 801 – SEC. 813
CAO 1 – 2022
CAO 13 – 2019
CAO 1 -2009
CAO 2- 1991
CMO 3 – 2022
CMO 39 – 1991

Transfer of goods to CBWS

Goods are subject to mandatory non-intrusive inspection at the port of discharge, whether
covered by a goods declaration for warehousing (WSAD) or a goods declaration for transit
(TSAD).

The storage period of bonded goods

Goods may remain in a CBW for a maximum of 1 year. For perishable goods, the storage
period is 3 months, extendable for another 3 through valid reasons.

Allowable importations

It shall be made within the limits of the CBWS respective authority/license or else the BOC
will collect duties and taxes and it will be considered as an importation for consumption and
not for warehousing. There was a case before where some protested against the limitation
of importing goods through bonded warehouses.

Non-importation of finished goods

No finished goods for warehousing may be imported unless they are intended to be used as
a component in the manufacture of another finished good for export that has been
approved by CBWC.

Restricted and regulated goods.

Seizure and forfeiture proceedings shall not be used against any clearance or import
authority.

Withdrawals for local sales/domestic consumption

No withdrawal shall be permitted unless authorized by the District Collector and

recommended by the operating division, and only after payment of duties and taxes, which
shall not exceed thirty percent unless a valid reason exists. The threshold is not applicable to
private customs bonded warehouses (PCWs). There was a situation before where a case was
raised because of a bonded warehouse distributing bunker fuel when the bonded
warehouse was not a PCBW. There are no PCWs in Davao.

Withdrawal for sub-contracting

Subject to the approval of the district collector, withdraw the bonded goods without paying
duty.

Withdrawal for sub-contracting

Because of insufficient operational facilities or lack of material time to meet the export
commitment, withdraw the bonded goods without payment of duty, subject to the approval
of the district collector.

Provisions specific to common customs bonded warehouses and their accredited members

All CCBW shall be accredited with only one CCBW, shall maintain all records and documents,
shall be made accessible to all customs officers, must first pass through the CCBW operator,
who is directly responsible for the liquidation of all imported raw materials, and the transfer
of membership from one CCBW to another shall not be used as a means to circumvent the
requirement to manufacture.

Procedures for application for the issuance of authority to operate as a CBW

In the event of a CCBW, the authority to operate is given to the mother warehouse, and
multinational companies shall file an application with the board of investment (BOI).
Application to establish a customs bonded warehouse, a customs common bonded
warehouse, and accreditation as a member

Application for accreditation as a client-exporter of a manufacturing customs bonded

warehouse (MCBW) or an accredited member of a CCBW

May apply for accreditation with the collector of customs with additional requirements such
as accreditation as an exporter with the bureau, BOI, DTI, etc.; supply contract of agreement
between the client-exporter and the MCBW operator; written undertaking from the client-
exporter will submit copies of his export documents.

Certificate of authority to operate

The authority to operate must be conspicuously displayed at all times at the CBW and is
valid for three years.

Duties and responsibilities of CBW operators

Comply with all customs rules; present evidence of payment of duties, taxes, and other
charges; secure the warehouse; and indemnify the duty bureau when goods are lost or
destroyed.

Lodgement filing and processing of goods declaration for the transfer of goods to CBW

WSAD transfers to CBW through the direct filing of WSAD. shall be filed and processed at the
collection district with jurisdiction.

         
Observation:

I observed that the application for renewal of authority to operate a CBW . It should be filed
not earlier than 120 days but not later than 91 days before the expiration of the authority.

Lessons Learned:

In this webinar, I learned that a bonded warehouse is a warehouse operated by a private

company in a foreign country under the regulatory supervision of that Country's Customs
Agency. Its main advantage is the ability to postpone the payment of customs duties.
Bonded warehouses, like standard warehouses, allow businesses to store their goods closer
to foreign customers for faster delivery, with the added benefit of deferring payment of
Customs duties until the goods are released from the bonded warehouse They are used to
store goods that have been imported or exported.

Conclusion / Recommendations:

The concept of Custom Bonded Warehousing has been promoted in order to facilitate
deferred payment of custom duty in order to encourage entrepreneurs and export-oriented
units to carry out their operations with as little investment as possible. Because the goods in
the warehouse are safe, the importer has time to arrange for the customs duty in the
meantime. If the goods are not needed immediately, they can be stored in a bonded
warehouse for a period of time. If the importer does not have his own warehouse, he can
transfer title to someone else while the goods are still in a bonded warehouse, and the
buyer can then pay the customs duties to receive the goods. Importers can store their
uncleared cargo in the bond facility, avoiding heavy penalties container information or
payment of Customs Duty in advance .