(1). Agencies involved:
Department of Trade and Industry (DTI) - dumping duties for non-agricultural products Department of Agriculture (DA) - dumping duties for agricultural products
Department of Finance (DOF) -automatic review of decisions of Commissioner of Customs
Bureau of Customs (BOC) (2). Procedure in Protest Cases:
Examiner issues an Assessment (import/export)
Commissioner of Customs
Rule against taxpayer Rule for taxpayer
Appeal to CTA division Automatic review by DOF
within 30 days from receipt of decision denying protest
Reverse BOC decision Uphold BOC (end of process)
If the BOC files a collection suit for deficiency, see jurisdiction of regular courts and the CTA on the amount. In case of criminal offenses, we follow the same rules provided above under NIRC. (3). Applicable laws:
(a). Tariff and Customs Code as implemented by the Bureau of Customs (b). All other laws implemented by the BOC
(4). Territorial jurisdiction of the Bureau of Customs
(a). all seas within the jurisdiction of the Philippines following the archipelagic doctrine (b). all coasts, ports, airports, harbors, bays, rivers and inland waters whether navigable or not from the sea;
(5). Transactions covered: (a). importation of goods (b). exportation of goods
©. transportation of passengers and cargoes into or out of, or within the Philippines (6). Classification of articles under the TCC
(a). subject to duty (b). prohibited articles
©. conditionally free from tariff and duties ( Section 105, TCC; governmental agencies and international institutions; granted by President upon NEDA‘s recommendation) (d). absolutely free from tariff and duties
(7). Kinds of Customs duties: (a). regular: ad valorem
specific duty alternating duty compound duty (b). special: dumping countervailing marking discriminatory
(8). Flexible Tariff Clause under the constitution
Section 28, Article 6, 1987 Constitution subject to limitations under the law; (9). Remedies under the TCC
BOC: Administrative: Tax lien
Fines and forfeitures
Reduction of customs duties Compromise
Judicial: Civil Action Criminal Action TAXPAYER:
Administrative: Protest on published value
Protest on assessment (payment under protest) Refund
Payment of fine or redemption after seizure
Appeal to BOC Commissioner from the BOC Examiner Judicial: Appeal to CTA
Action to question the legality of seizure Abandonment
Note: failure to file import entry within 30 days from discharge
(10). Procedure in protest cases: (a). Arrival of goods
(b). Examiner/Collector issues assessment and collects the tariff and duties
©. Within 15 days pay under protest ands file protest before the Collector/Examiner (d). Hearing within 15 days from receipt of protest;
(e). Collector either grants or denies the protest; Possible procedures:
If granted favorable to the importer, review by the Commissioner within 30 days from decision by the Collector;
If Commissioner upholds the decision of the Collector ( favorable to taxpayer), automatic review by the Dept of Finance;
If Commissioner reverses the decision of the Collector ( not favorable to the importer), importer may appeal to the CTA Division within 30 days from receipt of such decision, then file MR. to CTA Division, then appeal to CTA en banc, then petition for review to the SC within 15 days from receipt of the decision of the CTA En Banc;
If Collector denies the protest, (favorable to the government), importer appeals to the CTA Division within 30 days from receipt of such decision, then file MR. to CTA Division, then appeal to CTA en banc, then petition for review to the SC within 15 days from receipt of the decision of the CTA En Banc;
(11). Procedure in Seizure and Forfeiture
- available in case of smuggling which may refer to the following: Prohibited articles; Wrong entry of port; Export of goods contrary to law; Contraband
Notes:
(a). Common carriers are generally not subject to seizure and forfeiture
(b). In the absence of prima facie evidence, if the owner has no knowledge of or did not participate in the unlawful act, the vessel shall not be subjected to seizure and forfeiture;
©. Examples of evidence of knowledge:
Use of the vehicle twice for the transaction;
Owner is not in the business for which the conveyance is generally used Owner is not in a position to use such conveyance
(12). Doctrine of Hot Pursuit
If the act committed in violation of the TCC is done within Philippine waters, seizure and forfeiture may be pursued or continued beyond the territorial jurisdiction or the maritime zone and on the high seas;
(13). The regular courts have no jurisdiction over seizure and forfeiture cases except for writs of injunction, mandamus, or prohibition. Seizure and protest cases are within the exclusive jurisdiction of the Commissioner of Customs. Ordinary courts do not have jurisdiction over seizure and forfeiture proceedings;
(14). Right of Police Officer to Enter Inclosure. Any person exercising the powers under TCC may at anytime enter, pass through, or search any land or inclosure or any warehouse, store or other building, not being a dwelling house. A warehouse, store or other building or inclosure used for the keeping of storage of articles does not become a dwelling house merely by reason of the fact that a person employed as watchman lives in the place, nor will the fact that his family stays there with him alter the case.
(15). Search of Dwelling House. There must be for a Search Warrant issued by a competent court. A dwelling house may be entered and searched only upon warrant issued by a judge or justice of the peace, upon sworn application showing probable case and particularly describing the place to be searched and person or thing to be seized.
(16). Right to Search Vessels or Aircrafts and Persons or Articles Conveyed Therein. — It shall be lawful for any official or person exercising police authority to go abroad any vessel or aircraft within the limits of any collection to go aboard any vessel or aircraft within the limits of any collection district, and to inspect, search and examine said vessel or aircraft and any trunk, package, box or envelope on board, and to search any person on board the said vessel or aircraft and to this end to hail and stop such vessel or aircraft if under way, to use all necessary force to compel compliance; and if it shall appear that any breach or violation of the customs and tariff laws of the Philippines has been committed, whereby or in consequence of which such vessels or aircrafts, or the article, or any part thereof, on board of or imported by such vessel or aircraft, is liable to forfeiture, to make seizure of the same or any part thereof. The power of search shall extend to the removal of any false bottom, partition, bulkhead or other obstruction, so far as may be necessary to enable the officer to discover whether any dutiable or forfeitable articles may be concealed therein.
No proceeding herein shall give rise to any claim for the damage caused to article or vessel or aircraft.
(16). Right to Search Vehicles, Beasts and Persons. — It shall also be lawful for a person exercising authority to open and examine any box, trunk, envelope or other container, wherever found where he has reasonable cause to suspect the presence therein of dutiable or prohibited article or articles introduced into the Philippines contrary to law, and likewise to stop,
search and examine any vehicle, beast or person reasonably suspected of holding or conveying such article as aforesaid.
(17). Search of Persons Arriving From Foreign Countries. All persons coming into the Philippines from foreign countries shall be liable to detention and search by the customs authorities under such regulations as may be prescribed relative thereto.
(18). SMUGGLING: Seizure and Forfeiture proceedings are available to the BOC in the case of smuggling which may refer to the following: Prohibited articles; Wrong entry of port; Export of goods contrary to law; Contraband;
(19). Common carriers are generally not subject to seizure and forfeiture. In the absence of prima facie evidence, if the owner has no knowledge of or did not participate in the unlawful act, the vessel shall not be subjected to seizure and forfeiture. Presumption of knowledge of the owner of the vessel if (a). vehicle was used twice for the transaction; (b). Owner is not in the business for which the conveyance is generally used and (c). Owner is not in a position to use such conveyance;
Conversely, if the vehicle is under a contract of private charter, the assumption is owner is aware that the vessel is used for unlawful act, thus, BOC may subject vessel or vehicle to seizure and forfeiture, unless the owner can prove otherwise.
(20). DTI imposes dumping duties for non-agricultural products and DA for agricultural products. In protest cases over special levies by DTI and DA, there is no automatic review by the BOC Comm and Sec of Finance;
(21). Importation begins when the carrying vessel or aircraft enters the jurisdiction of the Philippines with the intention to unlade therein. Importation is deemed terminated upon payment of the duties, taxes and other charges due upon the articles, or secured to be paid, at a port of entry and the legal permit for withdrawal shall have been granted, or in case said articles are free of duties, taxes and other charges, until they have legally left the jurisdiction of Customs.
(22). WHAT ARTICLES ARE SUBJECT TO DUTIES? All articles, when imported to the Philippines, are subject to duty upon each importation, even though previously exported there except as otherwise specifically provided for in the Tariff and Customs Code, as amended, or in other laws.
Exemptions / Duty-Free Concessions: Adult Passengers:
• Two (2) reams of cigarette or two (2) tins of tobacco
• Two (2) bottles of liquor or wine not exceeding one (1) liter per bottle
Balikbayan and Overseas Filipino Workers (OFWs) are entitled to a Ten Thousand (10,000,00) Peso duty exemption on their USED personal and household effects. Any excess thereof is subject to an ad valorem duty (Executive Order 206). In addition, OFWs are entitled to duty and tax-free privileges on their USED appliances limited to one of every kind provided the total value does not exceed PHP10,000.00. Any excess is subject to duty and tax.
Balikbayan Categories
• Filipino citizen who has been continuously out of the Philippines for a period of at least one (1) year from the date of last departure;
• A Filipino overseas worker (OFW); or
• Former Filipino with foreign passport and members of his family (i.e. spouse and children) who are traveling with him.