CLAP CUSTOMS REVIEW AND CENTER FOR PROFESSIONAL DEVELOPMENT

Room 204, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila / Contacts - Globe: 09063811016 / 09068172757 Email: pedrezasem@gmail.com FB: www.facebook.com/clap.stacruz/

Towards this end, the State shall: Towards this end, the State shall:
Section 101. Declaration of Policy a) Develop and implement programs for the continuous
e)Provide a fair and expeditious administrative and
CUSTOMS LAWS enhancement of customs systems and processes that will
judicial appellate remedy for customs related
Policies of the State: harmonize customs procedures;
2022 REVIEW DAY 1: grievances and matters;
b) Adopt clear and transparent customs rules, regulations,
• to protect and enhance government revenue; f) Employ modern practices in customs
policies and procedures, consistent with international
CUSTOMS LAWS, RULES, REGULATIONS, • institute fair and transparent customs and standards and customs best practices; administration and utilize information and
tariff management that will efficiently facilitate communications technology in the implementation
ETHICS and CUSTOMS BROKER international trade, prevent and curtail any
c) Establish a regime of transparency of and accessibility to
customs information, customs laws, rules, regulations, of customs functions; and
PRACTICES form of customs fraud and illegal acts; and administrative policies, procedures and practices, in order to
g)Institute professionalism and meritocracy in
ensure informed and diligent compliance with customs
• modernize customs and tariff administration. practices and procedures by stakeholders; customs tax administration by attracting and
ATTY. NORBERTO V. CASTILLO, CB, MBA retaining competent and capable customs officers
d) Consult, coordinate and cooperate with other government
Lecturer agencies and the private sector in implementing and
and personnel to enforce the provisions of this
developing customs policy; Act.

Select terminologies Select terminologies

Select terminologies Select terminologies
• Conditional Importation - refers to the customs procedure
• Admission - refers to the act of bringing imported goods • Bill of Lading (B/L) - refers to a transport document issued by known under the RKC as temporary admission in which certain • Jurisdictional Control - refers to the power and rights of the
directly or through transit into a free zone. shipping lines, carriers and international freight forwarders or goods can be brought into a customs territory conditionally Bureau in exercising supervision and police authority over all
non-vessel operating common carrier for water-borne freight. relieved, totally or partially, from payment of import duties and seas within the jurisdiction of the Philippine territory and over all
The holder or consignee of the bill has the right to claim taxes; such goods must be imported for a specific purpose and coasts, ports, airports, harbors, bays, rivers and inland waters
• Authorized Economic Operator (AEO) - refers to the delivery of the goods at the port of destination. must be intended for reexportation within a specified period and whether navigable or not from the sea.
importer, exporter, customs broker, forwarder, freight without having undergone any substantial change except due to
It is a contract of carriage that includes carrier conditions, such normal depreciation. • Outright Smuggling - refers to an act of importing goods into
forwarder, transport provider, and any other entity duly as limits of liability and claims procedures. In addition, it the country without complete customs prescribed importation
accredited by the Bureau based on the WCO Framework contains transport instructions to shipping lines and carriers, a • Customs Officer, as distinguished from a clerk or employee, documents, or without being cleared by customs or other
of Standards to Secure and Facilitate Global Trade, the description of the goods, and applicable transportation refers to a person whose duty, not being clerical or manual in
regulatory government agencies, for the purpose of evading
RKC, the WCO Supply Chain Management Guidelines charges. nature, involves the exercise of discretion in performing the
function of the Bureau. It may also refer to an employee
payment of prescribed taxes, duties and other government
and the various national best practices to promote trade charges.
• Clearance - refers to the completion of customs and other authorized to perform a specific function of the Bureau as provided
facilitation and to provide a seamless movement of goods government formalities necessary to allow goods to enter for in this Act.
across borders through secure international trade supply • Release of Goods - refers to the action by the Bureau to
consumption, warehousing, transit or transshipment, or to be
chains with the use of risk management and modern exported or placed under another customs procedure. • Customs Territory - refers to areas in the Philippines where permit goods undergoing clearance to be placed at the disposal
technology. customs and tariff laws may be enforced. of the party concerned

Select terminologies Section 103. When Importation Begins and Deemed Terminated Section 104. When Duty and Tax are Due on
Select terminologies Imported Goods
• Security - refers to any form of guaranty, such as a Importation begins when the carrying vessel or aircraft (1)
Except as otherwise provided for in this Act or in other laws, all goods,
surety bond, cash bond, standby letter of credit or • Technical Smuggling - refers to the act of enters the Philippine territory (2) with the intention to unload when imported into the Philippines, shall be subject to duty upon
irrevocable letter of credit, which ensures the importing goods into the country by means of therein. importation, including goods previously exported from the Philippines.

satisfaction of an obligation to the Bureau; fraudulent, falsified or erroneous declaration of the

Importation is deemed terminated when: Unpaid duties, taxes and other charges, shall incur legal interest of
goods to its nature, kind, quality, quantity or weight, 20% per annum computed from the date of final assessment, when
• Smuggling - refers to the fraudulent act of importing for the purpose of reducing or avoiding payment of payment becomes due and demandable. The legal interest shall
(a) The duties, taxes and other charges due upon the likewise accrue on any fine or penalty imposed.
any goods into the Philippines, or the act of assisting prescribed taxes, duties and other charges; goods have been paid or secured to be paid at the
in receiving, concealing, buying, selling, disposing or port of entry unless the goods are free from duties, Upon payment of the duties, taxes and other charges, the Bureau shall
• Tentative Release - refers to a case where the issue the necessary receipt or document as proof of such payment.
transporting such goods, with full knowledge that the taxes and other charges and legal permit for
assessment is disputed and pending review, an
same has been fraudulently imported, or the withdrawal has been granted; or SEE: CMO 03-2021 “Compendium of Penalties, Liabilities, or
importer may put up a cash bond equivalent to the
fraudulent exportation of goods. Goods referred to Obligations under the CMTA and its Implementing Rules and
duties and taxes due on goods before the importer (b) In case the goods are deemed free of duties, taxes Regulations”
under this definition shall be known as smuggled
can obtain the release of said goods and other charges, the goods have legally left the
goods. Related: CAO 01-2019; CAO 09-2020; CAO 13-2020
jurisdiction of the Bureau.

Atty. Norberto V. Castillo, CB, MBA Page 1 of 4

 CLAP CUSTOMS REVIEW AND CENTER FOR PROFESSIONAL DEVELOPMENT
Room 204, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila / Contacts - Globe: 09063811016 / 09068172757 Email: pedrezasem@gmail.com FB: www.facebook.com/clap.stacruz/

Section 106. Declarant Section 106. Declarant

Section 105. Effective Date of Rate of Import Duty
Related provision (?) A declarant may be a consignee or a person who has
In case the consignee or the person who has the right to
Imported goods shall be subject to the import duty dispose of the goods is a juridical person, it may authorize a
rates under the applicable tariff heading that are effective the right to dispose of the goods. The declarant responsible officer of the company to sign the goods
Section 1425. Failure to Pay Duties, Taxes and shall lodge a goods declaration with the Bureau and declaration as declarant on its behalf.
Other Charges. at:
may be: The goods declaration submitted to the Bureau shall be
processed by the declarant or by a licensed customs
For failure to pay the duties, taxes and other 1. the date of importation ; or broker;
charges of an assessment within fifteen (15) days 2. upon withdrawal from the warehouse for consumption. (a) The importer, being the holder of the bill of lading;
from the date of final assessment, a surcharge of or Provided, That for importations, a transition period of two
3. In case of withdrawal from free zones for introduction (2) years from the effectivity of this Act is hereby provided
ten percent (10%) of the total assessed amount or to the customs territory, the duty rate at the time of (b) The exporter, being the owner of the goods to be during which subparagraph (d) of this section shall not be
balance thereon shall be added and collected, withdrawal shall be applicable on the goods originally shipped out; or implemented by the Bureau:
which surcharge shall be increased to twenty-five admitted, whether withdrawn in its original or (c) A customs broker acting under the authority of the
percent (25%) if the delinquency lasts for more Provided, Further, That after two (2) years from the
advanced form. importer or from a holder of the bill; or effectivity of this Act, subparagraph (d) of this section shall take
than one (1) year. 4. In case of goods sold at customs public auction, the into effect consistent with international standards and customs
(d) A person duly empowered to act as agent or
duty rates at the date of the auction shall apply. best practices.
attorney-in-fact for each holder.

Section 107. Rights and Responsibilities Section 109. Application of Information and Related Provision
Communications Technology
of the Declarant Section 108. Penalties for Section 412. Statements to be Provided in
In accordance with international standards, the Bureau shall utilize
The declarant shall be responsible for the accuracy of the Errors in Goods Declaration information and communications technology to enhance customs the Goods Declaration
goods declaration and for the payment of all duties, taxes and control and to support a cost-effective and efficient customs xxx xxx xxx
other charges due on the imported goods. operations geared towards a paperless customs environment.
The Bureau shall not impose substantial Goods declaration shall be submitted electronically
The licensed customs broker shall likewise be responsible for penalties for errors when: xxx xxx xxx pursuant to Republic Act No. 8792, otherwise known as
the accuracy of the goods declaration but shall not be the “Electronic Commerce Act of 2000”.
The security of data and communication shall be in a manner
responsible for the payment of duties, taxes and other 1) such errors are inadvertent; and that is consistent with applicable local and internationally accepted
charges due on the imported goods. standards on information security. (Relate with: Data Privacy, Anti-
Such declarations when printed and certified by a
Wire Tapping and Secrecy of Bank Deposits laws) competent customs officer as a faithful reproduction
The declarant shall sign the goods declaration, even when 2) there was no fraudulent intent or gross of the electronic submission shall be considered as
assisted by a licensed customs broker, who shall likewise negligence in the commission thereof xxx xxx xxx actionable documents for purposes of prosecuting a
sign the goods declaration. For purposes of customs procedures, electronic documents, declarant if the declarations are found to be
(See: CAO 01-2020; CMO 03-2021) permits, licenses or certificates shall be acceptable and shall have fraudulent.
SEE : CMO 34-2019 “Interim Guidelines Implementing the legal effect, validity or enforceability as any other document or xxx xxx xxx
Sections 106 and 107 of RA 10863” legal writing. (Relate with E-Commerce Act)

Section 110. Relationship Between the Bureau Section 111. Information of General Application Section 112. Information of a Specific Nature
and Third Parties All laws, decisions, rulings, circulars, memoranda and
Parties may transact business with the Bureau either directly or
Provisions on transparency orders of the Bureau shall be published in The Bureau shall provide information:
through a designated third party to act on their behalf. accordance with law. 1) not otherwise confidential; or
The customs transactions directly transacted by a party shall Section 111. Information of General 2) for the Bureau's internal use only,
not be treated less favorably or be subject to more stringent Application
requirements than those transacted through a designated third party.
To foster an informed compliance regime, the
A designated third party shall have the same rights and
Bureau shall ensure that all relevant and available
information of general application pertaining to
relating to a specific matter as may be requested by
obligations as the designating party when transacting business with
the Bureau.
Section 112. Information of a Specific customs operations and procedures which are: an interested party for legitimate use.
Nature
Requirements for authorizations: 1) not confidential; or The Bureau may require the payment of a reasonable
2) intended for the Bureau's internal use only, fee in providing such information. The requested
1. If juridical entity – Board Resolution or Corporate Secretary’s
(See: CMO 06-2022 and CMO 53-2019)
Certificate;
information shall be released within reasonable time
shall be readily accessible to any interested from the filing of the request and payment of the
2. If Sole Proprietorship – Special Power of Attorney
person. required fee.

Atty. Norberto V. Castillo, CB, MBA Page 2 of 4

 CLAP CUSTOMS REVIEW AND CENTER FOR PROFESSIONAL DEVELOPMENT
Room 204, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila / Contacts - Globe: 09063811016 / 09068172757 Email: pedrezasem@gmail.com FB: www.facebook.com/clap.stacruz/

Section 114. Right of Appeal, Forms and Ground

Section 115. Treatment of Importation
(1) Free Importation and Exportation
Imported goods shall be deemed “entered” in the
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
Philippines for consumption when the goods declaration is
electronically lodged, together with any required supporting TYPES OF Goods that may be freely imported into and exported
from the Philippines without need for import and
documents, with the pertinent customs office.
within 15 days from receipt of the questioned
decision or order.
-------------------------------------------------------------------------------
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IMPORTATION export permits, clearances or licenses.

Related Provision: (2) Section 117. Regulated Importation and

An appeal in writing shall be filed within the period Exportation
prescribed in this Act or by regulation and shall specify
Section 102. SEE ALSO: Chapter II, A, Section 7,
the grounds thereof.
BSP MANUAL OF REGULATIONS ON Goods which are subject to regulation shall be
The Bureau may allow a reasonable time for the
(r) Entry - refers to the act, documentation and process of
FOREIGN EXCHANGE TRANSACTIONS imported or exported only after securing …
bringing imported goods into the customs territory, including clearances, licenses, and any other requirements,
submission of supporting evidence to the appeal.
goods coming from free zones (UPDATED DECEMBER 2020)
prior to importation or exportation.
(See: CMO 04-2021)
Also, read: Remigio vs. Sandiganbayan

(3) Section 118. Prohibited Importation and Exportation

(3) Section 118. Prohibited Importation and Exportation
In case of importation, submission of requirements (a) Written or printed goods in any form containing any matter • Copyright and Related Rights;
after arrival of the goods but prior to release from advocating or inciting: d) Any goods manufactured in whole or in part of gold, silver or
other precious metals or alloys and the stamp, brand or mark
customs custody shall be allowed but only in cases 1) treason, rebellion, insurrection, sedition against the government
does not indicate the actual fineness of quality of the metals or
• Trademarks and Service Marks;
provided for by governing laws or regulations. of the Philippines; or
2) forcible resistance to any law of the Philippines; or alloys;
------------------------------------------------------------------------ • Geographic Indications;
e) Any adulterated or misbranded food or goods for human
- written or printed goods containing any threat to take the life of, or consumption or any adulterated or misbranded drug in violation Types of
SEE : CMO 09-2015 “Strict Enforcement of Rules inflict bodily harm upon any person in the Philippines; of relevant laws and regulations; • Industrial Designs;
Intellectual
Concerning Regulated Imports f) Infringing goods as defined under the Intellectual Property
(b) (1) Goods, instruments, drugs and substances designed, intended
Code and related laws; and
Properties • Patents;
or
VISIT : http://customs.gov.ph/regulated-imports- adapted for producing unlawful abortion, or g) All other goods or parts thereof which importation and exportation (RA 8293)
list (2) any printed matter which advertises, describes or gives direct or are explicitly prohibited by law or rules and regulations issued by
• Layout-Designs (Topographies) of
indirect information where, how or by whom unlawful abortion is the competent authority. Integrated Circuits; and
committed;
SEE ALSO: R.A. 6969 “Toxic Substances and
Hazardous and Nuclear Waste Control Act of 1990” • Protection of Undisclosed
c) Written or printed goods, negatives or cinematographic films, (SEE: CAO 09-2008; CMO 21-2019 “Prohibition on the
photographs, engravings, lithographs, objects, paintings, drawings Importation of Neutralized Phospogypsum”) Information (TRIPS).
or other representation of an obscene or immoral character;

• Copyright (or author’s right) is a legal term used to • A patent is an exclusive right granted for an
describe the rights that creators have over their literary • "Trade name" means the name or designation
invention, which is a product or a process that
Related Law: RA 8293
and artistic works. Works covered by copyright range from identifying or distinguishing an enterprise; (RA 8293)
books, music, paintings, sculpture, and films, to computer provides, in general, a new way of doing Sec. 190.3. Subject to the approval of the
programs, databases, advertisements, maps, and • A geographical indication (GI) is a sign used on something, or offers a new technical solution to a Secretary of Finance, the Commissioner of
technical drawings. (WIPO) products that have a specific geographical origin and problem. To get a patent, technical information Customs is hereby empowered to make rules and
possess qualities or a reputation that are due to that about the invention must be disclosed to the regulations for:
• "Mark" means any visible sign capable of distinguishing origin. In order to function as a GI, a sign must identify
the goods (trademark) or services (service mark) of an public in a patent application. (WIPO) 1) preventing the importation of articles the
a product as originating in a given place. (WIPO)
enterprise and shall include a stamped or marked importation of which is prohibited under this
container of goods; (RA 8293)
• Industrial design is any composition of lines or colors
• Integrated circuits – commonly known as Section and under treaties and conventions to
• "Collective mark" means any visible sign designated as or any three-dimensional form, whether or not “chips” or “micro-chips” – are the electronic which the Philippines may be a party; and
such in the application for registration and capable of associated-with lines or colors: Provided, That such circuits in which all the components (transistors,
distinguishing the origin or any other common composition or form gives a special appearance to and diodes and resistors) have been assembled in a 2) seizing and condemning and disposing of the
characteristic, including the quality of goods or services of can serve as pattern for an industrial product or certain order on the surface of a thin same in case they are discovered after they
different enterprises which use the sign under the control handicraft. (RA 8293) semiconductor material (usually silicon). (WIPO) have been imported.
of the registered owner of the collective mark; (RA 8293)

Atty. Norberto V. Castillo, CB, MBA Page 3 of 4

 CLAP CUSTOMS REVIEW AND CENTER FOR PROFESSIONAL DEVELOPMENT
Room 204, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila / Contacts - Globe: 09063811016 / 09068172757 Email: pedrezasem@gmail.com FB: www.facebook.com/clap.stacruz/

Section 119. Restricted Importation, and Exportation Section 119. Restricted Importation, and Exportation Section 119. Restricted Importation,
d) (1) Marijuana, opium, poppies, coca leaves, and Exportation
(a) Dynamite, gunpowder, ammunitions and other
explosives, firearms and weapons of war, or parts heroin or other narcotics or synthetic drugs which
thereof; are or may hereafter be declared habit forming by d) Opium pipes or parts thereof, of whatever
the President of the Philippines, or material; and
(b) Roulette wheels, gambling outfits, loaded dice,
marked cards, machines, apparatus or mechanical (2) any compound, manufactured salt, derivative, e) Any other goods whose importation and
devices used in gambling or the distribution of or preparation thereof,
money, cigars, cigarettes or other goods when such exportation are restricted.
distribution is dependent on chance, including jackpot
and pinball machines or similar contrivances, or parts except when imported by:
thereof;
(i) the government of the Philippines or The restriction to import or export the above
(c) Lottery and sweepstakes tickets, except
advertisements thereof and lists of drawings therein; (ii) any person duly authorized by the Dangerous stated goods shall include the restriction on
Drugs Board, for medicinal purposes; their transit.

Atty. Norberto V. Castillo, CB, MBA Page 4 of 4