All importers are required to keep at their principal place of business, in the manner prescribed by regulations to be issued by the Commissioner of customs and for a period of three (3) years from the date of importation, all records WHICH:
PERTAIN TO ANY SUCH ACTIVITY, OR TO THE
INFORMATION CONTAINED IN THE RECORDS REQUIRED BY THIS TITLE IN CONNECTION WITH ANY SUCH ACTIVITY; AND
ARE NORMALLY KEPT IN THE ORDINARY COURSE OF BUSINESS.
FOR THE PURPOSES OF THE POST ENTRY AUDIT AND SECTION 1103 OF THIS TITLE, THE TERM “IMPORTER”
SEC 3514 Requirement to Keep Records. – All importersvare required to keep at their principal place of business, in thevmanner prescribed by regulations to be issued by the Commissioner of Customs and for a period of three (3) years from the date of importation, all the records of their
importations and/or books of accounts, business and computer systems and all customs commercial data including payment records relevant for the verification of the accuracy of the transaction value declared by the importers/customs brokers on the import entry.
All brokers are required to keep at their principal place of business, in the manner prescribed by regulations to be issued by the Commissioner of Customs and for a period of three (3) years from the date of importation copies of the above mentioned records covering transactions that they handle. (R.A. 9135, Apri127,2001)
Patterned after international PEA practice Major amendment. Coverage of Audit expanded to include persons or entities other than the named importer/consignee. This is intended to cover entities that are importing through third parties (named consignee) which are not acting independently of said entities; beneficial owners; agents acting in behalf of importers so as to make effective the exercise of PEA power over imports. Under the current law, PEA’s audit authority is limited only to the importer or named consignee. Under the implementing rules (CAO 5- 2001) “importer” was by regulation expanded to include beneficial owner which expansion by mere
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INCLUDES THE FOLLOWING:
IMPORTER-OF-RECORD OR CONSIGNEE, OWNER/DECLARANT, OR OTHER PARTY WHO -- IMPORTS ARTICLES INTO THE PHILIPPINES OR WITHDRAWS SUCH ARTICLES INTO THE PHILIPPINE CUSTOMS TERRITORY FOR CONSUMPTION OR WAREHOUSING; , FILES A CLAIM FOR REFUND OR DRAWBACK;, OR TRANSPORTS OR STORES SUCH ARTICLES CARRIED OR HELD UNDER BOND, OR KNOWINGLY CAUSES THE IMPORTATION OR TRANSPORTATION OR STORAGE OF IMPORTED ARTICLES REFERRED TO ABOVE, OR THE FILING OF REFUND OR DRAWBACK CLAIM. ;
AGENT OF ANY PARTY DESCRIBED IN PARAGRAPH (1); OR
PERSON WHOSE ACTIVITIES REQUIRE THE FILING OF A GOODS DECLARATION.
PERSON ORDERING IMPORTED ARTICLES FROM A LOCAL IMPORTER/SUPPLIER IN A DOMESTIC TRANSACTION SHALL BE EXEMPTED FROM THIS SECTION UNLESS - -
THE TERMS AND CONDITIONS OF THE IMPORTATION ARE CONTROLLED BY THE PERSON PLACING THE ORDER; OR
THE CIRCUMSTANCES AND NATURE OF THE RELATIONSHIP BETWEEN THE PERSON PLACING THE ORDER AND THE IMPORTER/SUPPLIER ARE SUCH THAT THE FORMER MAY BE CONSIDERED AS THE
BENEFICIAL OR TRUE OWNER OF THE IMPORTED ARTICLES; OR
weak, hence the required amendment.
A new provision is requiring
locators/operators in special economic and free port zones to keep records to the extent that their activities involve withdrawal or removal from these zones. Such obligation is necessary to ensure that withdrawal or removal of zone-bound goods complies with customs laws, particularly with respect to valuation and tariff classification.
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ASSISTS WERE FURNISHED BY THE PERSON PLACING THE ORDER WITH KNOWLEDGE THAT THEY WILL BE USED IN THE MANUFACTURE OR PRODUCTION OF THE IMPORTED ARTICLES.
All CUSTOMS brokers are required to keep at their principal place of business, in the manner prescribed by regulations to be issued by the Commissioner of Customs and for a period of three (3) years from the date of importation copies of the above mentioned records covering transactions that they handle and all other parties engaged in customs clearance and processing.
LOCATORS OR PERSONS AUTHORIZED TO BRING IMPORTED ARTICES INTO FREE ZONES, SUCH AS THE SPECIAL ECONOMIC ZONES AND FREE PORTS, ARE REQUIRED TO KEEP SUBJECT RECORDS TO THE EXTENT THAT THEIR ACTIVITIES INCLUDE IN WHOLE OR IN PART THE WITHDRAWAL OF IMPORTED ARTICLES FROM SAID ZONES INTO THE CUSTOMS TERRITORY. SEC 1101. Compliance Audit or Examination of Records. The importer/customs broker shall allow any customs officer authorized by the Bureau of Customs to enter during office hours any premises or place where the records referred to in the preceding section are kept to conduct audit examination, inspection, verification and/or investigation of those records DESCRIBED IN THE AUDIT NOTICE WITH REASONABLE SPECIFICITY, WHICH MAY BE RELEVANT TO SUCH INVESTIGATION OR INQUIRY. For this purpose, a duly authorized officer shall have full and free access to all records (WHICH FOR PURPOSES OF THIS SECTION INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS, DECLARATIONS, DOCUMENTS AND ELECTRONICALLY GENERATED OR MACHINE READABLE DATA) for the purpose of ASCERTAINING THE CORRECTNESS OF THE DECLARATION IN THE IMPORT ENTRY AND
DETERMINING THE LIABILITY OF THE IMPORTER FOR DUTIES, TAXES, AND OTHER CHARGES, INCLUDING
SEC 3515 Compliance Audit or Examination of Records. – The importers/customs brokers shall allow any customs officer authorized by the Bureau of Customs to enter during office hours any premises or place where the records referred to in the preceding section are kept to conduct audit examination, inspection, verification and/or investigation of those records either in relation to specific transactions or to the adequacy and integrity of the manual or electronic system or systems by which such records are created and stored. For this purpose, a duly authorized customs officer shall have full and free access to all books, records, and documents necessary or relevant for the purpose of collecting the proper duties and taxes. In addition, the authorized customs officer may make copies of, or take extracts from any such documents. The records or documents must, as soon as practicable after copies of such have been taken, be returned to the person in charge of such documents.
A copy of any such document certified by or on behalf of the
Major amendment. The provision on documents/records t required to be kept is revised with the qualifying words” which may be relevant to the investigation or inquiry” to make it more general in scope to lessen chance of being challenged. However, the proposed provision also mandates that the audit should describe “with reasonable specifity” the documents that will be reviewed to prevent arbitrariness and possible fishing expedition.
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ANY FINE/S AND/OR PENALTY/IES, OR OTHERWISE FOR ENSURING COMPLIANCE WITH CUSTOMS AND TARIFF LAWS..
A copy of any such document certified by or on behalf of the importer is admissible in evidence in all courts as if it were the original.
An authorized customs officer is not entitled to enter any premises under this section unless, before so doing, the officer produces to the person occupying or apparently in charge of the premises written evidence of the fact that he or she is an authorized officer. The person occupying or apparently in charge of the premises entered by an officer shall provide the officer with all reasonable facilities and assistance for the effective exercise of powers under this section.
Unless otherwise provided herein or in other provisions of law, the Bureau of Customs may, in case of disobedience, invoke the aid of the proper regional trial court within whose jurisdiction the matter falls. The court may punish contumacy or refusal as contempt. In addition, the fact that the
importer/broker denies the authorized customs officer full and free access to importation records during the conduct of a post-entry audit shall create a presumption of inaccuracy in the transaction value declared for their imported goods and constitute grounds for the Bureau of Customs to conduct a re- assessment of such goods.
This is without prejudice to the criminal sanctions imposed by this ACT and administrative sanctions that the Bureau of Customs may impose against contumacious importers under existing laws and regulations including the authority to hold delivery or release of their imported articles.
importer/broker is admissible in evidence in all courts as if it were the original.
An authorized customs officer is not entitled to enter any premises under this Section unless, before so doing, the officer produces to the person occupying or apparently in charge of the premises written evidence of the fact that he or she is an authorized officer. The person occupying or apparently in charge of the premises entered by an officer shall provide the officer with all reasonable facilities and assistance for the effective exercise of powers under this Section.
Unless otherwise provided herein or in other provisions of law, the Bureau of Customs may, in case of disobedience, invoke the aid of the proper regional trial court within whose
jurisdiction the matter falls. The court may punish contumacy or refusal as contempt. In addition, the fact that the
importer/broker denies the authorized customs officer full and free access to importation records during the conduct of a post- entry audit shall create a presumption of inaccuracy in the transaction value declared for their imported goods and constitute grounds for the Bureau of Customs to conduct a re- assessment of such goods.
This is without prejudice to the criminal sanctions imposed by this Code and administrative sanctions that the Bureau of Customs may impose against contumacious importers under existing laws and regulations including the authority to hold delivery or release of their imported articles. (R.A. 9135, April 27, 2001)