Title II

Bureau of Customs1
Chapter 1
General Administration

Section 200. Chief Officials of the Bureau. The Bureau

shall be headed by a Commissioner and shall be assisted by at least
four (4) but not more than six (6) Deputy Commissioners.

The Commissioner shall be appointed by the President of the

Philippines.

The Deputy Commissioners shall also be appointed by the

President and at least majority of whom shall come from the ranks
of the Bureau. (Sec. 601)

Section 201. Powers and Functions of the

Commissioner. The Commissioner shall have the following
powers and functions:

(a) Exclusive and original jurisdiction to interpret the

provisions of this Act, 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 provisions of this Act;

(d) Review and decide disputed assessments and other

matters related thereto, subject to review by the Secretary of
Finance and exclusive appellate jurisdiction of the Court of Tax
Appeals (CTA);

(e) Delegate the powers vested under this Act 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;

1 Bureau refers to the Bureau of Customs. (Sec. 102(i), CMTA)
 (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 officers that perform
assessment functions shall not remain in the same area of
assignment for more than three (8) 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. (n)

Section 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. (Sec. 602)

Section 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. 607)

Section 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. (Sec. 608)

Section 205. Copies of Goods Declaration.2 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.

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. (Sec. 609)

Chapter 2
Customs Districts and Ports of Entry

2 Goods Declaration refers to a statement made in the manner prescribed by the Bureau and other appropriate
agencies, by which the persons concerned indicate the procedure to be observed in the application for the entry or
admission of imported goods and the particulars of which the customs administration shall require. (Sec. 102(y),
CMTA)
 Section 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 one (1) District

Collector, assisted by as many Deputy District Collectors as may be
necessary. The choice of the location of a District Office, its
business hours and the staffing pattern thereof, shall be based on
the particular requirements of each district. (Sec. 701)

Section 207. Ports of Entry.3 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 while a
Deputy District Collector may be assigned to other types of ports of
entry.

The principal ports of entry shall he located in Aparri, San

Fernando, Manila, Manila International Container Port, Ninoy Aquino
International Airport, Subic, Clark, Batangas, Legaspi, Iloilo, Cebu,
Tacloban, Surigao, Cagayan de Oro, Zamboanga, Davao, Limay and
such other ports that may be created pursuant to this Act.

For the effective enforcement of the Bureau's functions and

without hampering business and commercial operations of the
ports, sea ports and airport authorities and private ports and airport
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. (Sec. 701)

Section 208. Power of the President to Open and Close

Any Port. Up on the recommendation of the Secretary of
Finance, the President may open or close any port of entry. Upon
closure of a port of entry, the existing personnel shall he reassigned
by the Commissioner, subject to the approval of the Secretary of
Finance. (Sec. 702)

3 Port of Entry refers to a domestic port open to both domestic and international trade, including
principal ports of entry and subports of entry. A principal port of entry is the chief port of entry of the Customs
District wherein it is situated and is the permanent station of the District Collector of such port. Subports of entry are
under the administrative jurisdiction of the District Collector of the principal port of entry of the Customs District.
Port of entry as used in this Act shall include airport of entry.(Sec. 102(hh, CMTA)In contrast with:
Port of Discharge, also called Port of Unloading, refers to a place where a vessel, ship, aircraft or train
unloads its shipments, from where they will be dispatched to their respective consignees. (Sec. 102(ii), CMTA)
 Section 209. Assignment of Customs Officers and
Employees to Other Duties. The Commissioner, with the
approval of the Secretary of Finance, may 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
may assign any employee other duties: Provided, That such
assignment shah not affect the employee's tenure of office nor
result in a change of status, demotion in rank and/or salary
deduction. (Sec. 703)

Section 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 this

Act;

(7) Prevent smuggling and other customs fraud; and

(8) Perform other necessary duties that may be assigned by

the Commissioner for the effective implementation of this Act.
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. (n)

Section 211. Temporary Succession of 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 are two (2) or more senior ranking
customs officers with equal length of service, a drawing of lots shall
be undertaken. The District Collector shall report the designation to
the Commissioner within twenty-four (24) hours after the
designation. (Sec. 707)

Section 212. Records to be Kept by Customs Officers.4

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. (Sec. 710)

Section 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. (Sec. 712)

Chapter 3
Exercise of Police Authority

Section 214. Persons Exercising Police Authority. For

the effective implementation of this Act, the following persons are
authorized to effect search, seizure, and arrest:

(a) Officials of the Bureau, District Collectors, Deputy District

Collectors, police officers, agents, inspectors and guards of the
Bureau;

(b) Upon authorization of the Commissioner, officers and

members of the Armed Forces of the Philippines (AFP) and national
law enforcement agencies; and

(c) Officials of the BIR on all cases falling within the regular
performance of their duties, when payment of internal revenue
taxes is involved.

4 Customs Officer, as distinguished from a clerk or employee, refers to a person whose duty, not being clerical or
manual in nature, involves the exercise of discretion in performing the function of the Bureau. It may also refer to an
employee authorized to perform a specific function of the Bureau as provided in this Act. (Sec. 102(p), CMTA)
 All officers authorized by the Commissioner to exercise police
authority shall at all times coordinate with the Commissioner.

Goods seized by deputized officers pursuant to this section

shall be physically turned-over immediately to the Bureau, unless
provided under existing laws, rules and regulations.

For this purpose, mission orders shall clearly indicate the

specific name carrying out the mission and the tasks to be carried
out.

Subject to the approval of the Secretary of Finance, the

Commissioner shall define the scope, areas covered, procedures
and conditions governing the exercise of such police authority
including custody and responsibility for the seized goods. The rules
and regulations to this effect shall be furnished to the concerned
government agencies and personnel for guidance and compliance.

All seizures pursuant to this section must be effected in

accordance with the provisions on the conduct of seizure
proceedings provided for in Chapters 3 and 4 of Title XI of this Act.
(Sec. 2203)

Section 215. Place Where Authority May be Exercised.

All persons exercising police authority as described in the
preceding section shall, only exercise powers within customs
premises as provided for in Section 303 of this Act, and within the
limits of the authority granted by the Commissioner, Port and
airport authorities in all ports of entry shall provide authorized
customs officers with unhampered access to all premises within
their administrative jurisdiction. (Sec. 2204)

Section 216, Exercise of Power of Seizure. Any person

exercising police authority under this Act has the power and duty to
seize any vessel, aircraft, cargo, goods, animal or any other
movable property when the same is subject to forfeiture or when
they are subject of a fine imposed under this Act. (Sec. 2205)

Section 217. Duty of Officer to Disclose Official

Character. For the proper exercise of police authority, any
authorized person shall disclose the nature of the authority upon
being questioned at the time of exercise thereof and shall exhibit
the corresponding written authority issued by the Commissioner.
(Sec. 2206)

Section 218. Authority to Require Assistance and

Information. Any person exercising police authority may
demand the assistance of and request information from the
Philippine National Police (PNP), the AFP and other national law
enforcement agencies, when necessary, to effect any search,
seizure or arrest. It shall be the duty of any police officer and other
national law enforcers to give such lawful assistance. (Sec. 2207)

Section 219. Authority to Enter Properties. Any

person exercising police authority may, at any time, enter, pass
through, and search any land, enclosure, warehouse, store, building
or structure not principally used as a dwelling house.

When a security personnel or any other employee lives in the

warehouse, store, or any building, structure or enclosure that is
used for storage of goods, it shall not be considered as a dwelling
house for purposes of this Act. (Sec. 2208)

Section 220. Authority to Search Dwelling House. A

dwelling house may be entered and searched only upon warrant
issued by a Judge of a competent court, the sworn application
thereon showing probable cause and particularly describing the
place to be searched and the goods to be seized. (Sec. 2209)

Section 221. Authority to Search Vessels or Aircrafts

and Persons or Goods Conveyed Therein. Any person
exercising police authority under this Act may board, inspect,
search and examine a vessel or aircraft and any container, trunk,
package, box or envelope found on board, and physically search
and examine any person thereon. In case of any probable violation
of this Act, the person exercising police authority may seize the
goods, vessel, aircraft, or any part thereof.

Such power to search includes removal of any false bottom,

partition, bulkhead, or any other obstruction for the purpose of
uncovering any concealed dutiable or forfeitable goods.

The proceeding herein authorized shall not give rise to any

claim for damage caused to the goods, vessel or aircraft, unless
there is gross negligence or abuse of authority in the exercise
thereof. (Sec. 2210)

Section 222. Authority to Search Vehicles, Other

Carriers, Persons and Animals. Upon reasonable cause, any
person exercising police authority may open and examine any box,
trunk, envelope, or other container for purposes of determining the
presence of dutiable or prohibited goods. This authority includes the
search of receptacles used for the transport of human remains and
dead animals. Such authority likewise includes the power to stop,
search, and examine any vehicle or carrier, person or animal
suspected of holding or conveying dutiable or prohibited goods.
(Sec. 2211)

Section 223. Authority to Search Persons Arriving

From Foreign Countries. Upon reasonable cause, travelers
arriving from foreign countries may be subjected to search and
detention by the customs officers. The dignity of the person under
search and detention shall be respected at all times. Female
inspectors may be employed for the examination and search of
persons of their own sex. (Sec. 2212)

Section 224. Power to Inspect and Visit. The

Commissioner or any customs officer who is authorized in writing by
the Commissioner, may demand evidence of payment of duties and
taxes on imported goods openly for sale or kept in storage. In the
event that the interested party fails to produce such evidence
within fifteen (15) days, the goods may be seized and subjected to
forfeiture proceedings: Provided, That during the proceedings, the
interested party shall be given the opportunity to prove or show the
source of the goods and the payment of duties and taxes thereon:
Provided, Further, That when the warrant of seizure has been issued
but subsequent documents presented evidencing proper payment
are found to be authentic and in order, the District Collector shall,
within fifteen (15) days from the receipt of the motion to quash or
recall the warrant, cause the immediate release of the goods
seized, subject to clearance by the Commissioner: Provided, Finally,
That the release thereof shall not be contrary to law. (n)