You are on page 1of 27

BUREAU OF CUSTOMS

Updates on the PCAG

Atty. Edward James A. Dy Buco

Deputy Commissioner Assessment Operations Coordinating Group

HISTORY 2017 EO 46 2013 EO 155 2003 EO 160 -revived the post clearance audit functions
HISTORY 2017 EO 46 2013 EO 155 2003 EO 160 -revived the post clearance audit functions
HISTORY 2017 EO 46 2013 EO 155 2003 EO 160 -revived the post clearance audit functions
 

HISTORY

  • 2017 EO 46

  • 2013 EO 155

  • 2003 EO 160

-revived the post clearance audit functions of the BOC. -renamed the Post Entry Audit Group to Post Clearance Audit Group.

-transferred the post clearance audit functions of BOC-PEAG to the DOF-

FIU (Fiscal Intelligence Unit of the

Department of Finance).

- PEAG personnel were assigned to different BOC offices.

-created the Post Entry Audit Group (PEAG) to perform the post clearance audit functions of the BOC.

2

POST CLEARANCE AUDIT GROUP PER E.O. NO. 46 • The only functional group in BOC to
POST CLEARANCE AUDIT GROUP PER E.O. NO. 46 • The only functional group in BOC to
POST CLEARANCE AUDIT GROUP PER E.O. NO. 46 • The only functional group in BOC to

POST CLEARANCE AUDIT GROUP

PER E.O. NO. 46

The only functional group in BOC to implement PCA laws and its

related rules and regulations;

Headed by Assistant Commissioner (SG 28);

Composed of 2 Operating Units

  • 1. TIRAO (Trade Information and Risk Analysis Office)

-responsible in performing risk profiling analysis activities on the Importers.

  • 2. CAO (Compliance Assessment Office)

-responsible in conducting the audit examination, inspection,

verification or investigation of records of importers.

PCAG

PCAG

PCAG
TURN-OVER OF POST CLEARANCE AUDITS PER E.O. NO. 46 The DOF-FAI shall, as may be practicable,
TURN-OVER OF POST CLEARANCE AUDITS PER E.O. NO. 46 The DOF-FAI shall, as may be practicable,
TURN-OVER OF POST CLEARANCE AUDITS PER E.O. NO. 46 The DOF-FAI shall, as may be practicable,

TURN-OVER OF POST CLEARANCE AUDITS

PER E.O. NO. 46

The DOF-FAI shall, as may be practicable, transmit to the BOC-PCAG all files and documents of any pending post clearance audits

SECTION 5 OF EO 46

CUSTOMS MODERNIZATION and TARIFF ACT (CMTA) ON POST CLEARANCE AUDIT
CUSTOMS MODERNIZATION and TARIFF ACT (CMTA) ON POST CLEARANCE AUDIT
CUSTOMS MODERNIZATION and TARIFF ACT (CMTA) ON POST CLEARANCE AUDIT
CUSTOMS MODERNIZATION and TARIFF ACT (CMTA) ON POST CLEARANCE AUDIT

CUSTOMS MODERNIZATION

and TARIFF ACT (CMTA)

ON

POST CLEARANCE AUDIT

POST CLEARANCE AUDIT Within three (3) years from the date of final payment of duties and
POST CLEARANCE AUDIT Within three (3) years from the date of final payment of duties and
POST CLEARANCE AUDIT Within three (3) years from the date of final payment of duties and

POST CLEARANCE AUDIT

Within three (3) years from the date of final payment of duties and taxes or customs clearance, as the case may be, the Bureau may conduct an audit examination, inspection, verification, and investigation of records pertaining to any goods declaration, which shall include statements, declarations, documents, and electronically generated or

machine readable data, for the purpose of ascertaining the correctness

of the goods declaration and determining the liability of the importer for duties, taxes and other charges, including any fine or penalty, to

ensure compliance with this Act.

SECTION 1000, CMTA

ENTITIES REQUIRED TO MAINTAIN AND KEEP RECORDS • Importers • Customs Brokers and other parties engaged
ENTITIES REQUIRED TO MAINTAIN AND KEEP RECORDS • Importers • Customs Brokers and other parties engaged
ENTITIES REQUIRED TO MAINTAIN AND KEEP RECORDS • Importers • Customs Brokers and other parties engaged

ENTITIES REQUIRED TO MAINTAIN AND KEEP RECORDS

Importers

Customs

Brokers

and

other

parties

engaged

in

customs

clearance

and

processing

Locators

CF. CMTA, TITLE X, CHAPTER 2, SECTION 1003

CMTA, TITLE X, SECTION 1003 (A) CMTA, TITLE X, SECTION 1003 (B) & (C)

8

PERIOD AND PLACE TO KEEP RECORDS  Importers , as defined in Section 1003 of the
PERIOD AND PLACE TO KEEP RECORDS  Importers , as defined in Section 1003 of the
PERIOD AND PLACE TO KEEP RECORDS  Importers , as defined in Section 1003 of the

PERIOD AND PLACE TO KEEP

RECORDS

  • Importers, as defined in Section 1003 of the CMTA, are required to keep records at their principal place of business for a period of 3 years from the date of final payment of duties and taxes or customs clearance whichever is later, as the case may be.

  • All parties engaged in customs clearance and processing as well as locators or persons authorized to bring imported goods into free zones are required to keep records related to such customs clearance and processing at their principal place of business for a period of 3 years from the date of filing of the goods declaration.

DEFINITION OF IMPORTER A. Importer-of-record or consignee, owner or declarant, or a party who: A.1. imports
DEFINITION OF IMPORTER A. Importer-of-record or consignee, owner or declarant, or a party who: A.1. imports
DEFINITION OF IMPORTER A. Importer-of-record or consignee, owner or declarant, or a party who: A.1. imports

DEFINITION OF IMPORTER

  • A. Importer-of-record or consignee, owner or declarant, or a party

who:

A.1. imports goods into the Philippines or withdraws

admitted goods from the Free Zones into the customs

territory for consumption or warehousing; files a claim

for refund or drawback; or transports or stores such goods carried or held under security; or

A.2. knowingly causes the importation or transportation or storage of imported goods referred to above, or the filing of refund or drawback claim.

SECTION 1004, CMTA

DEFINITION OF IMPORTER B. A person ordering imported goods from a local importer or supplier in
DEFINITION OF IMPORTER B. A person ordering imported goods from a local importer or supplier in
DEFINITION OF IMPORTER B. A person ordering imported goods from a local importer or supplier in

DEFINITION OF IMPORTER

B.

A person ordering imported goods from a local importer or

supplier in a domestic transaction Importer if:

shall be considered

an

B.1.

the person placing the order controls the material terms

and conditions of the importation;

 

B.2.

the person placing the order and the Importer or supplier

are related

in

such

a way that the former may be

considered

as

the

beneficial

or

true

owner

of

the

imported goods, as may be exemplified by the following

circumstances:

SECTION 1004, CMTA

DEFINITION OF IMPORTER B.2 . (cont’d…) B.2.a. the person placing Importer on record; the order is
DEFINITION OF IMPORTER B.2 . (cont’d…) B.2.a. the person placing Importer on record; the order is
DEFINITION OF IMPORTER B.2 . (cont’d…) B.2.a. the person placing Importer on record; the order is

DEFINITION OF IMPORTER

B.2. (cont’d…)

B.2.a. the person placing Importer on record;

the order

is

the sole buyer

of

the goods imported by

the

B.2.b. the Importer on record is an affiliate of the juridical entity which placed the order; B.2.c. the Importer on record is an affiliate of the juridical entity which placed the order; B.2.d. the Importer on record and the entity which placed the order are owned by the

same

set

of

majority

corporations; or

stockholders, whether

nominal

or

beneficial, in

both

B.2.e. the person or entity placing the order furnished the Importer or the exporter with technical data, molds, equipment, other production assistance, material, components, or parts with knowledge that these will be used in the manufacture or production of imported goods or the goods to be imported.

SECTION 1004, CMTA

DEFINITION OF IMPORTER C. A person whose declaration; or activities require the filing of a goods
DEFINITION OF IMPORTER C. A person whose declaration; or activities require the filing of a goods
DEFINITION OF IMPORTER C. A person whose declaration; or activities require the filing of a goods

DEFINITION OF IMPORTER

C.

A

person

whose

declaration; or

activities

require

the

filing

of

a

goods

  • D. An agent of any party described in A.

SECTION 1004, CMTA

CRITERIA FOR SELECTING AUDITEE Post clearance audit of Importers shall be undertaken when firms are selected
CRITERIA FOR SELECTING AUDITEE Post clearance audit of Importers shall be undertaken when firms are selected
CRITERIA FOR SELECTING AUDITEE Post clearance audit of Importers shall be undertaken when firms are selected

CRITERIA FOR SELECTING AUDITEE

Post clearance audit of Importers shall be undertaken when firms are

selected based on any but not limited to the following criteria:

  • 1. Relative magnitude of customs revenue to be generated from the firm;

  • 2. The rates of duties of the firm’s imports;

  • 3. The compliance track records of the firm; and

  • 4. An assessment of the risk to revenue of the firm’s import activities.

SECTION 1001, CMTA

ACCESS TO RECORDS Any authorized officer of the Bureau shall be given by the importer and
ACCESS TO RECORDS Any authorized officer of the Bureau shall be given by the importer and
ACCESS TO RECORDS Any authorized officer of the Bureau shall be given by the importer and

ACCESS TO RECORDS

Any authorized officer of the Bureau shall be given by the importer

and customs broker full and free access to the premises where the

records are kept, to conduct audit examination, inspection, verification,

and investigation of those records relevant to such investigation or inquiry.

SECTION 1002, CMTA

POWER OF THE COMMISSIONER TO OBTAIN INFORMATION AND ISSUE SUMMONS 1 . Obtain on a regular
POWER OF THE COMMISSIONER TO OBTAIN INFORMATION AND ISSUE SUMMONS 1 . Obtain on a regular
POWER OF THE COMMISSIONER TO OBTAIN INFORMATION AND ISSUE SUMMONS 1 . Obtain on a regular

POWER OF THE COMMISSIONER TO OBTAIN INFORMATION AND ISSUE SUMMONS

1. Obtain on a regular basis from any person, in addition to the person who is the subject of a post clearance audit or investigation, or from any office or officer of the national and local governments, government agencies and instrumentalities, including the BSP and GOCCs, any information such as costs and volume of production, receipts or sales and gross income of taxpayers, and the names,

addresses, and financial statements of corporations, regional operating headquarters of multinational companies, joint accounts, associations, joint ventures or consortia and registered partnerships, and their members, whose business operations or activities are directly or

indirectly involved in the importation or exportation of imported goods

or products manufactured from imported component materials;

POWER OF THE COMMISSIONER TO OBTAIN INFORMATION AND ISSUE SUMMONS 2. Summon the person liable for
POWER OF THE COMMISSIONER TO OBTAIN INFORMATION AND ISSUE SUMMONS 2. Summon the person liable for
POWER OF THE COMMISSIONER TO OBTAIN INFORMATION AND ISSUE SUMMONS 2. Summon the person liable for

POWER OF THE COMMISSIONER TO OBTAIN INFORMATION AND ISSUE SUMMONS

  • 2. Summon the person liable for duties and taxes or required

to file goods declaration, or any officer or employee of such person, or any person having possession, custody, or care of the books of accounts and other accounting records containing

entries relating to the business of the person liable for duties

and taxes, or any other person, to appear before the Commissioner or the duly authorized representative at a time and place specified in the summons and to produce such books, papers, records, or other data, and to give testimony;

SECTION 1004, CMTA

POWER OF THE COMMISSIONER TO OBTAIN INFORMATION AND ISSUE SUMMONS 3. Take such testimony of the
POWER OF THE COMMISSIONER TO OBTAIN INFORMATION AND ISSUE SUMMONS 3. Take such testimony of the
POWER OF THE COMMISSIONER TO OBTAIN INFORMATION AND ISSUE SUMMONS 3. Take such testimony of the

POWER OF THE COMMISSIONER TO OBTAIN INFORMATION AND ISSUE SUMMONS

3. Take such testimony of the person concerned, under oath, as may be relevant or material to such inquiry; or

4. Obtain

information

from

banks

or

other

financial

institutions on commercial documents and records pertaining

specifically to payments relevant to import transaction.

The provisions of the foregoing paragraphs notwithstanding, nothing in this section shall be construed as granting the Commissioner the authority to inquire into bank deposits of persons or entities

mentioned in this Title.

SECTION 1004, CMTA

FINES, PENALTIES AND INTEREST Failure to Pay Correct Duties and Taxes on Imported Goods. Deficiencies found
FINES, PENALTIES AND INTEREST Failure to Pay Correct Duties and Taxes on Imported Goods. Deficiencies found
FINES, PENALTIES AND INTEREST Failure to Pay Correct Duties and Taxes on Imported Goods. Deficiencies found

FINES, PENALTIES AND INTEREST

Failure to Pay Correct Duties and Taxes on Imported Goods.

Deficiencies found in duties and taxes paid for imported goods, shall be penalized according to 2 degrees of culpability:

Negligence When a deficiency results from an offender's failure, through an act or acts of omission or commission, to exercise reasonable care and competence in ensuring that a statement made is correct, the offender shall be charged for committing Negligence, and, if found guilty shall be penalized with a fine equivalent to 125% of the revenue loss. Provided, that subject to Section 108, Chapter 2, Title I of the CMTA, a penalty of 25% of the revenue loss shall be imposed on an Inadvertent Error amounting to simple Negligence, without prejudice to Section 6 of the draft CAO.

CF. CMTA, TITLE X, SECTION 1005

19

FINES, PENALTIES AND INTEREST Failure to Pay Correct Duties andTaxes on Imported Goods. • Fraud –
FINES, PENALTIES AND INTEREST Failure to Pay Correct Duties andTaxes on Imported Goods. • Fraud –
FINES, PENALTIES AND INTEREST Failure to Pay Correct Duties andTaxes on Imported Goods. • Fraud –

FINES, PENALTIES AND INTEREST

Failure to Pay Correct Duties andTaxes on Imported Goods.

Fraud When the material false statement or act in connection with the transaction was committed or omitted knowingly, voluntarily and

intentionally, as established by clear and convincing evidence, the

offender who is charged for committing Fraud and is found guilty thereof, shall be penalized with a fine equivalent to 600% of the revenue loss and/or imprisonment of not less than 2 years, but not more than 8 years.

CF. CMTA, TITLE X, SECTION 1005

20

FINES, PENALTIES AND INTEREST Failure to Keep Records. The following penalties are imposable to those who
FINES, PENALTIES AND INTEREST Failure to Keep Records. The following penalties are imposable to those who
FINES, PENALTIES AND INTEREST Failure to Keep Records. The following penalties are imposable to those who

FINES, PENALTIES AND INTEREST

Failure to Keep Records. The following penalties are imposable to those who fail to keep and maintain the prescribed records:

  • 1. Suspension or cancellation of accreditation as Importer or Broker with the Bureau;

  • 2. Surcharge of 20% on the dutiable value of the goods which is the subject of the importation for which no records were kept and maintained;

  • 3. Hold delivery or release of subsequent imported articles to answer for the fine and any revised assessment;

  • 4. Criminal prosecution punishable with imprisonment of not less than 3 years and 1 day but not more than 6 years, and/or a fine of Php 1,000,000.00; and

  • 5. Waiver of the right to contest the results of the audit based on records kept by the Bureau.

CMTA, SECTION 1002 CMTA, SECTIONS 1302 AND 1427

21

FINES, PENALTIES AND INTEREST Failure or Refusal to Give Full and Free Access. The following penalties
FINES, PENALTIES AND INTEREST Failure or Refusal to Give Full and Free Access. The following penalties
FINES, PENALTIES AND INTEREST Failure or Refusal to Give Full and Free Access. The following penalties

FINES, PENALTIES AND INTEREST

Failure or Refusal to Give Full and Free Access. The following penalties are imposable to those who deny the authorized customs officer full and free access to the records required to be kept and maintained:

Suspension or cancellation of accreditation as an Importer or

Broker with the Bureau;

Punishment for contempt, for contumacy or refusal to provide access, from the proper court having criminal jurisdiction over the matter;

Re-assessment of the importations subject of audit, the declared

transaction value being presumed inaccurate applying therein the

correct valuation method, tariff classification, quantity and/or country of origin, as applicable, based on available data;

SECTION 1002 OF CMTA Sections 1302 and 1427 of CMTA

22

FINES, PENALTIES AND INTEREST (Cont’d… ) • Surcharge of twenty percent (20%) on the dutiable value
FINES, PENALTIES AND INTEREST (Cont’d… ) • Surcharge of twenty percent (20%) on the dutiable value
FINES, PENALTIES AND INTEREST (Cont’d… ) • Surcharge of twenty percent (20%) on the dutiable value

FINES, PENALTIES AND INTEREST

(Cont’d…)

Surcharge of twenty percent (20%) on the dutiable value of the

goods which is

the

subject of the importation for which

no

records were kept and maintained;

Hold

delivery or release of subsequent imported

articles to

answer for the fine and any revised assessment; and

Criminal prosecution punishable with imprisonment of not less

than three (3) years and one (1) day but not more than six (6)

years, and/or a fine of one million pesos (PhP1,000,000.00).

SECTION 1002 OF CMTA Sections 1302 and 1427 of CMTA

23

FINES, PENALTIES AND INTEREST Interest on Deficiency Duties and Taxes, Other Charges Plus Fine or Penalty.
FINES, PENALTIES AND INTEREST Interest on Deficiency Duties and Taxes, Other Charges Plus Fine or Penalty.
FINES, PENALTIES AND INTEREST Interest on Deficiency Duties and Taxes, Other Charges Plus Fine or Penalty.

FINES, PENALTIES AND INTEREST

Interest on Deficiency Duties and Taxes, Other Charges Plus Fine or Penalty.

An interest of 20% per annum, counted from 15 days from receipt of demand letter by the Importer arising from audit findings, shall be imposed on:

Deficiency duties, taxes, and other charges; and

Fine or penalty, if any.

24

CF. CMTA, TITLE I, CHAPTER 1, SECTION 104 AND TITLE IV, CHAPTER 3, SECTION 429

CIVIL REMEDIES FOR THE COLLECTION OF DUTIES, TAXES, FINES, SURCHARGES,INTERESTS, AND OTHER CHARGES 1. Distraint of
CIVIL REMEDIES FOR THE COLLECTION OF DUTIES, TAXES, FINES, SURCHARGES,INTERESTS, AND OTHER CHARGES 1. Distraint of
CIVIL REMEDIES FOR THE COLLECTION OF DUTIES, TAXES, FINES, SURCHARGES,INTERESTS, AND OTHER CHARGES 1. Distraint of

CIVIL REMEDIES FOR THE COLLECTION OF DUTIES,

TAXES, FINES, SURCHARGES,INTERESTS, AND OTHER CHARGES

1.

Distraint

of goods, chattels, or effects, and other personal

property of whatever character, including stocks and other securities, debts, credits, bank accounts, and interest in and rights to personal property, and by levy upon real property and interest in rights to real property; and

  • 2. By civil or criminal action.

SECTION 1132-1134, CMTA

RIGHT OF APPEAL Any party adversely affected by a decision or omission of the Bureau pertaining
RIGHT OF APPEAL Any party adversely affected by a decision or omission of the Bureau pertaining
RIGHT OF APPEAL Any party adversely affected by a decision or omission of the Bureau pertaining

RIGHT OF APPEAL

Any party adversely affected by a decision or omission of the Bureau

pertaining to an importation, exportation, or any other legal claim shall have the right to appeal within 15 days from receipt of the questioned decision or order.

An aggrieved party may, within thirty (30) days from receipt of

an adverse ruling or decision, appeal the same to the CTA.

(Section 1104 and 1136)

THANK YOU! CEVA
THANK YOU! CEVA
THANK YOU! CEVA

THANK YOU!

CEVA