CUS01

PRINCIPLES OF
CUSTOMS
ADMINISTRATIO
N
 TITLE I, CMTA

SCOPE OF CUSTOMS LAW

 Customs (and tariff) laws include not only CMTA
but laws, rules and regulations enforced by the BOC.

 Regulations of BSP, BPI, BIS, BAI, NFA, FEO,

DOH, FDA, IPO etc. in relation to exportation
and importation of goods

 Goods refers to articles, wares, merchandise and

other items which are subject of importation or
exportation
 TITLE I, CMTA

OTHER LAWS ENFORCED BY BOC

HENCE PART OF CUSTOMS LAWS
a. Provisions of the National Internal Revenue Code
involving internal revenue taxes that are collected by
the Bureau of Customs (Actg. Collector of Customs
v. Caluag, et al,. L-23925, May 24, 1976)

b. Circulars of the Central Bank of the Philippines

 TITLE I, CMTA

WHEN IMPORTED GOODS ARE DEEMED

“ENTERED FOR CONSUMPTION”
 Treatment of Importation:
 Imported goods shall be deemed “entered” in the
Philippines for consumption:
• When the goods declaration is electronically lodged,
together with any required supporting documents,
with the pertinent customs office.
- Customs Office refers to any customs
administrative unit that is competent and
authorized to perform all or any of the functions
enumerated under customs and tariff laws
ELEMENTS OF
IMPORTATION
 Subject/Object – Goods
 Persons Involved – Importer/Exporter
 Definite Place –Philippine Port and Foreign Port
 Casual Relation – Goods subject of importation
was purchased by importer for his consumption
from a foreign supplier abroad by virtue of a
commercial transaction.
 TITLE I, CMTA

TYPES OF IMPORTATION AND

EXPORTATION
1. Free importation and exportation

2 Regulated importation and exportation

3. Prohibited importation and exportation

4. Restricted importation and exportation

LIST OF REGULATING AGENCIES
 BAI Bureau of Animal Industry
 BFAR Bureau of Fisheries and Aquatic Resources
 BIR Bureau of Internal Revenue
 BPS Bureau of Philippine Standards
 BPI Bureau of Plant Industry
 PDEA Philippine Drug Enforcement Agency
 SRA Sugar Regulatory Administration
 TITLE II,
CMTA

BUREAU OF
CUSTOMS
 TITLE II, CMTA

CHAPTER 1
General Administration
1. Sec. 200 – Chief Officials of the Bureau
2. Sec. 201 – Powers and Functions of the
Commissioner
3. Sec. 202 – Functions of the Bureau
4. Sec. 203 – Annual Report of the Commissioner
5. Sec. 204 – Promulgation of Rules and Regulations
6. Sec. 205 – Copies of Goods Declaration
 CHAPTER 1,
TITLE II
Sec. 200
CHIEF OFFICIALS OF THE BUREAU
 The Bureau shall be headed by:
 Commissioner
 to be appointed by the President of the Philippines
 and shall be assisted by:
 At least four (4) but not more than six (6) Deputy
Commissioners
 Shall be appointed also by the President of the
Philippines
 At least majority of whom shall come from the ranks
of the Bureau
 CHAPTER 1,
TITLE II
Sec. 201
POWERS AND FUNCTIONS OF THE COMMISSIONER
 The Commissioner shall have the following powers and functions:

a. Exclusive original jurisdiction to interpret the provisions of this act (CMTA),

in collaboration with other relevant government agencies, subject to review
by the Secretary of Finance;

b. Exercise any customs power, duties and functions directly or indirectly;

c. Review any action or decision of any customs officer performed pursuant to

the provision of the CMTA

d. Review and decide disputed assessment and other matters related thereto,
subject to review by the Secretary of Finance and exclusive appellate
jurisdiction of the Court of Tax Appeals (CTA)
 SEC. 201
POWER TO INTERPRET CMTA PROVISIONS
THROUGH CUSTOMS ISSUANCES
 Rule making power/ quasi-legislative power

 CAO which takes the nature of policy determination in the enforcement of

IRR/Implementation of CMTA provisions and other laws enforced by BOC
and in coordination with concerned government agencies. Requires approval
of Sec., DOF

 CMO an issuance addressed to customs officials and employees, customs

brokers, importers and general public which operationalizes and/or supplies
details to CAO. A CMO is not subject to approval of the Sec., DOF.
 SEC. 201

POWER TO INTERPRET CMTA PROVISIONS

THROUGH CUSTOMS ISSUANCES

 CMC circularizes laws, rulings, rules and regulations of other government

agencies which may not directly pertain to CMTA but may affect BOC
functions or its employees.

 CTDC circularizes original ruling or decisions of the Commissioner of

Customs, Supreme Court, Tariff Commission or other agencies in relation to
customs classification and valuation
 CHAPTER 1,
TITLE II
Sec. 201
POWERS AND FUNCTIONS OF THE COMMISSIONER
 The Commissioner shall have the following powers and functions:

e. Delegate the powers vested in CMTA, to any customs officer with the rank
equivalent to division chief or higher, except for the following powers and
functions
(1) Promulgation of rules and regulations
(2) Issuance, revocation or modification of rulings, and
(3) Compromise or abate of customs obligations

f. Assignment or reassignment of any customs officer subject to the approval of the

Secretary of Finance. Provided, That District Collectors and other customs officer
that perform assessment functions shall not 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 the CMTA and other customs related laws.
 CHAPTER 1,
TITLE II
Sec. 202
FUNCTIONS OF THE BUREAU
 PRIMARY FUNCTIONS:

 Assessment and collection of customs revenue

from imported goods and other dues, fees, charges,
fines and penalties accruing under CMTA (Sec.
202, a)

 Prevention and suppression of smuggling and

other customs fraud (Sec. 202, d)
 CHAPTER 1,
TITLE II
Sec. 202
FUNCTIONS OF THE BUREAU
 FUNCTIONS ANCILLARY TO THE PRIMARY FUNCTIONS

b. Simplification and harmonization of customs procedure to facilitate

movement of goods in international trade.

c. Border control to prevent entry of smuggled goods

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
 CHAPTER 1,
TITLE II
Sec. 202
FUNCTIONS OF THE BUREAU
 FUNCTIONS ANCILLARY TO THE PRIMARY FUNCTIONS

h. Supervision and control on all import and export cargoes, landed or stored in
piers, airports, terminal facilities, including container yard and freight
stations for the protection of government revenue and prevention of entry of
contraband.

i. Conduct 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 CMTA,

and

k. Enforcement of the CMTA and all other laws, rules and regulations related to
customs administration
 BOC ORGANIZATIONAL CHART
EO 127 JAN 30, 1987, AS AMENDED
 COMMISSIONER

 DEPUTY COMMISSIONERS

1. Assessment and Operations Coordinating Group (AOCG)

2. Revenue Collection Monitoring Group (RCMG)

3. Internal Administration Group (IAG)

4. Intelligence Group (IG) (EO 805, June 2009)

5. Enforcement Group (EG) (EO 805, June 2009)

6. Management Information System and Technology Groups (MISTG) (EO 463

s. 1998)
 RCMG
Revenue Collection Monitoring Group
 Service is headed by a Director, while Division is headed by a Chief

 Legal Service
 Ruling and Research Division (RRD)
 Prosecution and Litigation Division (PLD)
 Appellate Div. (AD)
 Tax Exempt Division (TED)

 Financial Service
 Revenue Accounting Division (RAD)
 Statistical Analysis Division (SAD)

 Collection Service
 Collection Performance/ Evaluation Division (CPED)
 Liquidation and Assessment Audit Division (LAAD)
 Bonds Audit Division (BAD)
 RCMG

RCMG FUNCTIONS
a. Maintain an updated accounting for all customs revenues collected

b. Administer legal requirements of BOC to include litigation and prosecution of

cases

c. Provide Commissioner with accurate and time information and analysis of

collection statistics

d. Conduct continuing audit of liquidated entries and outstanding bonds

e. Perform such other appropriate functions consistent with the assigned task of the
group and others which may be given by the Commissioner
 AOCG
Assessment and Operations Coordination Group

 Service is headed by a Director, while Division is headed by a Chief

 Imports and Assessment Service (IAS)

 Valuation and Classification Division (VCD)
 Assessment Coordination and Monitoring Division (ACMD)
 Warehouse Coordination Division (WCD)

 Ports Operation Service (POS)

 Auction and Cargo Disposal Division (ACDD)
 Export Coordination Division (ECD)
 Port Operation Division (POD)
 AOCG

AOCG FUNCTIONS
a. Regularly gather and subject to approval of Commissioner, publish values and
commodities imported into the Philippines, such values being the bases for the
computation of duties and taxes

b. Monitor for decision making purposes the implementation of rules and regulations
governing assessment, warehousing and support operations

c. Monitor auction and disposal activities together with port, airport operations
related activities for decision making purposes

d. Perform other functions that may be assigned by the Commissioner

 IG and EG
Intelligence Group and Enforcement Group
 Service is headed by a Director, while Division is headed by a Chief

INTELLIGENCE GROUP
 Intelligence Service
 Investigation and Prosecution Division (IPD)
 Internal Inquiry and Prosecution Division (IIPD) merged into
Investigation Division retaining only the investigation function while
prosecution transferred to PLD (CMO 24-2011)
 Intellectual Property Rights Division (IPRD)

ENFORCEMENT GROUP
 Enforcement and Security Services (ESS)
 Customs Police Division (CPD)
 Water Patrol Division (WPD)
 Radio Communications Division (RCD)
 IG & EG

FUNCTIONS OF IEG
a. Regularly and consistently gather intelligence information related to customs and
economic activities for proper dissemination to customs offices concerned

b. Conduct internal inquiry and investigations which may serve as basis for
prosecution

c. Exercise police authority conferred by the TCCP ( now CMTA) or other laws
which include enforcement of seizure and forfeitures and the imposition of
penalties

d. Performs functions that may be assigned by the Commissioner

NOTE: Note of the split of IEG into IG and EG

 RISK MANAGEMENT OFFICE (RMO)
 Directly under the Commissioner while day to day operations managed by Dep.
Com. – IG.

 Functions:

a. Review and update parameters of the Selectivity Screen of the Selectivity

System;
b. Establish a viable system of setting and changing the said parameters;
c. Ensure an efficient and secure information pipeline from all sources to the
RMO;
d. Conduct a continuing study/ profile of importers, exporters and customs
brokers; and
e. Maintain a database of all smuggling cases and related data. (EO 836 s.
2009)
 IAG ORGANIZATION
Internal Administration Group
o Financial Management Office

o Administrative Office

o Planning and Policy Research Division

o Management Information and Data System Division

o Public Information and Assistance Division

o Medical and Dental Division

o Human Resource Management Division

 MISTG ORGANIZATION
Information System and Technology Group
 Planning and Systems Development Services headed by Service Chief/
Director III:
a. Planning and Management Information Division;
b. Systems Development Division

 Technology Management Services headed by Service Chief/ Director III:

a. Systems Management Division;
b. Technical Support Division;
c. Port Data Management Unit;
1. POM Database Management;
2. MICP Database Management;
3. CEBU Database Management; and
4. NAIA Database Management.
 CHAPTER 1,
TITLE II
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.
 CHAPTER 1,
TITLE II
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 CMTA.
 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 CMTA.
 CHAPTER 1,
TITLE II
IMPLEMENTING RULES AND REGULATIONS

 The Secretary of Finance shall, upon the

recommendation of the Commissioner, promulgate
rules and regulations for the effective
implementation of CMTA. (Section 1800)
 CHAPTER 1,
TITLE II
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
 CHAPTER 1,
TITLE II
Sec. 205
COPIES OF GOODS DECLARATION
 Upon request, the Tariff Commission shall have
access to, and the right to be furnished with copies of
liquidated goods declaration and other documents
supporting the 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.
 TITLE II, CMTA

CHAPTER 2
CUSTOMS DISTRICTS AND PORTS OF ENTRY
1. Sec. 206 – Customs Districts
2. Sec. 207 – Ports of Entry
3. Sec. 208 – Power of the President to Open and Close Any Port
4. Sec. 209 – Assignment of Customs Officers and Employees to
other Duties
5. Sec. 210 – Duties of the District Collector
6. Sec. 211- Temporary Succession of Deputy District Collector to
Position of Acting District Collector
7. Sec. 212 – Records to be Kept by Customs Officers
 CHAPTER 2,
TITLE II
Sec. 206
CUSTOMS DISTRICTS
 For administrative purposes, the Philippines shall be divided into as many
Customs Districts as necessary, the respective limits of which may be
changed from time to time by the Commissioner, with the approval of the
Secretary of Finance.

 Each Customs District shall be supervised by 1 District Collector

 Assisted by as many Deputy District Collectors as may be necessary

 The choice of location of a District Office, its business hours and the
staffing pattern thereof, shall be based on the particular requirements of
each district.
 CHAPTER 2,
TITLE II
COLLECTION DISTRICTS

I. Port of San Fernando

II.A. Port of Manila
II.B. Manila International Container Port
III. Ninoy Aquino International Airport
IV. Port of Batangas
V. Port of Legaspi
VI. Port of Iloilo
VII. Port of Cebu
VIII. Port of Tacloban
 CHAPTER 2,
TITLE II
COLLECTION DISTRICTS

IX. Port of Surigao

X. Port of Cagayan de Oro
XI. Port of Zamboanga
XII. Port of Davao
XIII. Port of Subic
XIV. Port of Clark
XV. Port of Aparri (EO 707 s. 2008)
XVI. Port of Limay (EO 727 s. 2008)
 CHAPTER 2,
TITLE II
Sec. 207
PORTS OF ENTRY
 All ports of entry shall be under the supervision and control of a Customs
District
 A District Collector shall be assigned in the principal ports of entry
 A Deputy District Collector may be assigned to other types of ports
of entry

 The principal ports of entry shall be located in Aparri, San Fernando,

Manila, MICP, NAIA, Subic, Clark, Batangas, Legaspi, Iloilo, Cebu,
Tacloban, Surigao, Cagayan de Oro, Zamboanga, Davao, Limay and such
other ports that may be created.
 SECTION 207
AREAS AND EQUIPMENT FOR CUSTOMS
EXAMINATION PURPOSES
 For the effective enforcement of the Bureau’s
functions and without hampering business and
commercial operations of the ports, sea ports and
airports authorities and private ports and airports
operators shall provide suitable areas for
examination and for other customs equipment free of
charge within a definite period of time, as agreed
with private port and airport operations, if any.
 CHAPTER 2,
TITLE II
ORGANIZATIONAL STRUCTURE OF POM

1. Dep. Collector for Administration  WAD

 Administrative Division 3. Dep. Collector for Operations
 Law Division  Bonded Warehouse Division
 FTI Division  Public/Private Bonded
 Sub-port of Masinloc  Misc. Manufacturing Garments
 Rosario Customs Office and Textile
 Laguna Customs Office  WID
2. Dep. Collector for Assessment  WDRD
 FED  PID
 Informal Entry Division  ACDD
 Bonds Division  CCCD
 Collection Division  Export Division
 LBD – functions transferred to
CAO, PEAG (CMO 24-2011)
 CHAPTER 2,
TITLE II
Sec. 208
Power of the President to Open and Close Any Port

 Upon recommendation of the DOF, Sec.:

 The PRESIDENT may open and close any port of entry

 Upon closure of a port of entry,

 The existing personnel shall be reassigned
-- by the Commissioner
--- subject to the approval of the Secretary of Finance
 CHAPTER 2,
TITLE II
Sec. 209
Assignment of Customs Officers Tasked and Employees to
Other Duties
 The Commissioner
 With approval of DOF, Sec.
 Assign any employee of the Bureau to any:
-- port, service, division or office of the Bureau within the
Bureau’s staffing pattern or organizational structure; or
-- or be assigned other duties

 Provided:
- Such assignment shall not affect the employee’s tenure of
office nor result in a change of status, demotion in rank and/or
salary deduction
 CHAPTER 2,
TITLE II
Sec. 210
Duties of the District Collector
The District Collector shall have the following duties in their assigned
Customs District:
1. Ensure entry of all imported goods at the customs office;
2. Prevent importation and exportation of prohibited goods;
3. Ensure legal compliance of regulated goods and facilitate the
flow of legitimate trade;
4. Examine, classify and value imported goods;
5. Assess and collect duties, taxes and other charges on imported
goods;
6. Hold and dispose imported goods in accordance with CMTA;
 CHAPTER 2,
TITLE II
Sec. 210
Duties of the District Collector
The District Collector shall have the following duties in their assigned
Customs District:
7. Prevent smuggling and other customs fraud; and
8. Perform necessary duties that may be assigned by the
Commissioner for the effective implementation of CMTA.
Subject to the supervision and control of the District Collector, the
duties and functions of the District Collector may be delegated to the
Deputy District Collector/

The Deputy District Collector assigned to a sub-port shall be under

the supervision and control of the District Collector of the
Corresponding principal port.
 CHAPTER 2,
Sec. 211
TITLE II
Temporary Succession od Deputy District Collector to Position of
Acting District Collector
 In the absence or disability of a District Collector or, in case of
vacancy, the Deputy District Collector shall temporarily discharge the
duties of the District Collector

 Should there be no Deputy District Collector,

 The District Collector shall designate in writing:

-- a senior ranking customs officer to temporarily perform the

duties of the District Collector
-- in case there ate two (2) or more senior ranking customs
officer with equal length of service, a drawing of lots shall
be undertaken.
The District Collector shall report the designation to the Commissioner
within 24 hours after the designation
 CHAPTER 2,
TITLE II
Sec. 212
Records to be Kept by Customs Officers
District Collectors, Deputy District Collectors, and customs officers
acting in such capacities:
 Must maintain permanent records of official transactions and
turn-over all records and official papers to their respective
successors or other authorized officials
The records shall be made available for inspection by other authorized
officials of the Bureau

If
required, the District Collector shall affix the official dry seal of the
Bureau on all documents and records requiring authentication.
 CHAPTER 2,
TITLE II
Sec. 213
Reports of the District Collector to the
Commissioner

The District Collector shall report to the Commissioner any probable or

initiated litigation within the Customs District and shall submit regular
monthly reports on all district transactions.