Documentary

Requirements and
Procedures in the Processing
of Various Claims

I. Claim for
ABATEMENT/REFUND
FOR DUTIES AND
TAXES
II. Claim for REFUND OF
UNUTILIZED L/C
DEPOSIT
III. Claim for DUTY
DRAWBACK

1. Claim for abatement/refund

for duties and taxes
SEC. 1708
Claim for Refund of Duties and
Taxes and Mode of Payment.

All claims for refund of duties shall be made in

writing and forwarded to the Collector to whom such
duties are paid, who upon receipt of such claim, shall
verify the same by the records of his Office, and if
found to be correct and in accordance with law, shall
certify the same to the Commissioner with his
recommendation together with all necessary papers
and documents. Upon receipt by the Commissioner of
such certified claim he shall cause the same to be
paid if found correct. If a result of the refund of
customs duties there would necessarily result a
corresponding refund of internal revenue taxes on the
same importation, the Collector shall likewise certify
the same to the Commissioner who shall cause the
said taxes to be paid, refunded, or tax credited in
favor of the importer, with advice to the
Commissioner of Internal Revenue.

2. Claim for refund of

Unutilized L/C deposit

Customs Administrative Order No. 5-92
Period to file claim for refund
The importer/claimant shall have a period of
one (1) year from the date the totally or partially
unutilized L/C is cancelled by the AAB.
Failure to present IED or OR-claims for refund
shall not be processed if the claimant is not in a
position to present the original import entry
declaration and official receipt/s covering the

Procedures:
1.
Application for refund under this order shall
be made in a Standard Application form (Annex
A) to be filed by the claimant or authorized
representatives at the Collection Division Unit of
the Port. The application shall be supported by
the following documents:

For TOTALLY UNUTILIZED L/C

Importers original copy of Import Entry
Declaration (IED) and BCOR.
Clearance number and date of issue by the
Liquidation and Billing Division (LBD) and collection
services;
Certification of AAB as to cancellation of L/C
because there are no corresponding importation
made whatsoever, no outward remittance of
foreign exchange, and no automatic refund of the
advance customs duties as allowed by CB 909
have ever been effected.

For PARTIALLY UTILIZED L/C

Importers original copy of Import Entry
Declaration (IED), BCOR and CBRC.
Clearance number and date of issue by the
Liquidation and Billing Division (LBD) and collection
services;
Certification of AAB as to cancellation of unutilized
portion of letter of credit.

2. Collection Division Unit of the port, as main

action office of the District Collector of customs
level, receives the application, checks the same
for completeness and attaches the checklist,
(annex B) gives the application its docket
number, indicates the date of receipt thereof,
initials the same and returns a copy of
application to claimant. Claims not supported by
all requirements are returned to the claimant.
3. The RAD verifies the claim for the list of
cancelled LCs to be provided by BSP, Current
Imports Commodity Classification Department
(CB-CICCD), prepares certification of payment
remittance and transmits all pertinent
documents to the Accounting Division (AD).

4. The AD processes the claim and prepares

the following:
Journal voucher for the Commissioners
approval;
Tax Credit Certificate (TCC) and Disposition
Form for the approval of the Deputy
Commissioner for Revenue Monitoring
Group.
5. The claim folder with signed TCC is
returned to the Accounting Division for final
recording and release to claimant or its
authorized authority.

Work Time Schedule

Claims for refund under this order shall have
a processing time schedule of ten (10) working
days at the offices under the District Collector of
Customs and another ten (10) working days in
offices under the Commissioner of Customs.
Clearance
Clearances from Liquidation and Billing
Division and Collection Service must have
control number for this purpose and shall be
valid for the period of three (3) months, Annex
D the Collection Division Unit of the port shall
be furnished with a copy of the said clearance.

3.Claim for DUTY DRAWBACK

Guidelines for the filing and processing of
drawback claims:

Section 1- Size and Place of Marking

the marking subject to drawback must be
printed in RED letters along the right hand
margin of the ED/EP, each letter at least half an
inch tall.

Section 2- Exporters Responsibility to Mark

It shall be the responsibility of the exporter to
mark all copies of the export declaration as
described in Section 1 above. No drawback claim
shall be awarded on any shipment on which the
covering export declaration has not been
properly marked.
Section 3- Seventy-five percent (75%) of the
Shipment must be Ready for Inspection.
Exporters of goods for which drawbacks claims
shall be applied must be able to present their
shipments for examination to duly designated
customs officer. At least Seventy-five percent
(75%) of the goods must be ready for inspection at
the time of filing of the export declaration/permit.

Section 4- Shipment information Ship

required
To facilitate inspection, a shipment information
slip must be attached to the EP/ED to guide custom
spot checkers. The slip must contain the following
information:
a) Name of Firm address and Telephone nos.
b) Person in the contact
c) Location of shipment
d) Number of packages, marks & descriptions
e) Vessel, Loading Pier
f) Date and Time to be brought to the pier
g) Raw Materials used, formula of manufacture and
covering import entry.

Section 5- Penalty Clause

Failure to comply with any of the provisions of
this memorandum under shall be ground for
denial of drawback.