Cmta Provision

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1 CTMA-TCCP-RKC CORRELATION MATRIX AND RATIONALE OF AMENDMENTS

CTMA Provision TCCP Provision RKC/ASB Provision Rationale/ Remarks

TITLE 1. PRELIMINARY PROVISIONS CHAPTER 1. SHORT TITLE

SECTION 100. Short Title. This Act shall be known as the “Customs and Tariff Modernization Act of 2008”.

New title

CHAPTER 2. GENERAL AND COMMON PROVISIONS New Chapter. The idea of a “general

and common provisions” is to be able to reflect as basic customs policy the standards mandated in the General Annex of the RKC with which national legislation is yet to be compliant. Some standards with which current national legislation/regulation is compliant were no longer introduced here.

SEC. 101. Declaration of Policy.

It is the declared policy of the State to promote and secure international trade, protect government revenue, and modernize customs and tariff administration by: Developing and implementing programs aimed at continuously improving customs systems and processes; Adopting customs policies, rules, and procedures that are clear, transparent, and consistent with international agreements and customs best practices;

Establishing a regime of informed compliance for customs stakeholders by providing easy access to all public information, not otherwise confidential and for customs use only, regarding Customs laws, rules and regulations, administrative policies and guidelines, procedures and practices that would enable them to fulfill their obligation to exercise due diligence in dealing with customs;

RKC Preamble and proposed provisions to reflect other mandate / function of BOC

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Consulting and cooperating, wherever appropriate, with other government agencies, and the private sector in customs policy development and implementation;

Providing parties aggrieved by customs action and/or decision with administrative and judicial appellate remedy;

Utilizing modern techniques in customs administration such as risk management and post clearance-based controls, and maximizing the use of information and communication technology in carrying out the mandate of customs. SEC. 102. Definition of Terms.

As used in this Code:

“ADMISSION” refers to the act of bringing imported articles into free zone or non-customs territory directly or through transit.

“Airway Bill (AWB)” is a transport document for airfreight used by airlines and international freight forwarders. The holder or consignee of the bill has the right to claim delivery of the goods when they arrive at the port of destination. It is a contract of carriage that includes carrier conditions, such as limits of liability and claims procedures. In addition, it contains transport instructions to airlines and carriers, a description of the article, and applicable transportation charges. “Appeal” means the act by which a person who is aggrieved by ANY ACT, decision, ORDER or omission of Customs, seeks redress before the Bureau of Customs, the Secretary of Finance, or competent court, as the case may be. "Articles" when used with reference to importation or exportation, includes goods, wares and merchandise and in general anything that may be made the subject of importation or exportation.

“Assessment” means the process of determining the amount of duties and taxes and other charges due on imported

SEC 3519 Words and Phrases Defined. - As used in this Code: "Foreign Port" means a port or place outside the jurisdiction of the Philippines.

"Port of Entry" is a domestic port open to both foreign and coastwise trade. The term includes principal ports of entry and subports of entry. A "principal port of entry” is the chief port of entry of the collection district wherein it is situated and is the permanent station of the Collector of such port. Subports of entry are under the administrative jurisdiction of the Collector of the principal port of entry of the district. Whenever the term "Port of Entry" is used herein, it shall include “airport of entry”. "Coastwise ports" are such domestic ports as are open to coastwise trade only. These include all ports, harbors and places not ports of entry.

"Vessels" includes every sort of boat, craft or other artificial contrivance used, or capable of being used, as a means of transportation on water.

"Aircraft" includes any weight -carrying devise or structure for the navigation of the air.

"Bill of Lading" includes airway bill of lading. "Articles", when used with reference to importation or exportation, includes goods merchandise and in general

Lifted from TCCP Section 3519, as revised and the RKC definition of terms

The terms included in this section are based on those in the TCCP and on the RKC.

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articles.

“Bill of Lading (B/L)" is a transport document for ocean freight issued by shipping lines, carriers AND INTERNATIONAL FREIGHT FORWARDERS OR NON VESSEL OPERATING COMMON CARRIER. The holder or consignee of the bill has the right to claim delivery of the goods when they arrive at the port of destination. It is a contract of carriage that includes carrier conditions, such as limits of liability and claims procedures. In addition, it contains transport instructions to shipping lines and carriers, a description of the article, and applicable transportation charges.

“Breakbulk” is non-containerized cargo which is grouped or consolidated for shipment and broken down or sub-divided INTO UNITIZED CARGO, SUCH AS IN PALLETS, OR PACKED IN BAGS OR BOXES.

“Carrier” means the person actually transporting goods or in charge of or responsible for the operation of the means of transport.

“Checking the GOODS declaration” means the action taken by customs to satisfy themselves that the GOODS declaration is correctly made out and that the supporting documents required fulfill the prescribed conditions for lodgment. “Clearance” means the accomplishment of the customs formalities necessary to allow goods to enter for home use, warehousing, transit or transshipment, or to be exported or placed under another customs procedure.

"Coastwise ports" are such domestic ports as are open to coastwise trade only. These include all ports, harbors, and places not ports of entry.

“Constructive import/export” shall refer to the movement of imported goods to and from free zone and customs territory. “CUSTOMS” SHALL MEAN THE BUREAU OF CUSTOMS.

anything that may be made the subject of importation or exportation.

"Transit cargo" is article arriving at any port from another port or place noted in the carrier's manifest and destined for transshipment to another local port or to a foreign port. "Seized property" means any property seized or held for the satisfaction of any administrative fine or for the enforcement of any forfeiture under the Tariff and Customs Code.

"Tariff and customs laws" includes not only the provisions of this Code and regulations pursuant thereto but all other laws and regulations which are subject to enforcement by the Bureau of Customs or otherwise within its jurisdiction. "Taxes" includes all taxes, fees and charges imposed by the Bureau of Customs and the Bureau of Internal Revenue. "Secretary" or "Department head" refers, unless otherwise specified, to the Secretary of Finance.

"Commission” refers to the Tariff Commission.

"Person" whether singular or plural refers to an individual, corporation, partnership, association company or any other kind of organization.

"Dutiable value" refers to the value defined in section two hundred one.

"Bulk cargo" refers to products in a mass of one commodity not packaged, bundled, bottled or otherwise packed.

"Smuggling" is an act of any person who shall fraudulently import or bring into the Philippines, or assist in so doing, any article, contrary to law or shall receive, conceal, buy, sell or in any manner facilitate the transportation, concealment, or sale of such article after importation, knowing the same to have been imported contrary to law. It includes the exportation of articles in a manner contrary to law. Articles subject to this

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“Customs AND TARIFF law” includes not only the provisions of this Act and regulations pursuant thereto but all other laws and regulations which are subject to enforcement by the Bureau of Customs or otherwise within its jurisdiction. “Customs office” means any customs administrative unit competent to perform all or any of the functions enumerated UNDER THE CUSTOMS AND TARIFF LAWS.

“Domestic Port” means a port within the Philippine jurisdiction. "Foreign Port" means a port or place outside the jurisdiction of the Philippines.

“Goods declaration” means a statement made in the manner prescribed by the Customs, by which the persons concerned indicate the Customs procedure to be applied to the imported goods and furnish the particulars which Customs require for its application.

“Importation” means the act of bringing in of articles from a foreign territory into the Philippine jurisdiction, whether for home use, warehousing, OR ADMISSION TO FREE ZONE. However, entry of imported articles into freeport zone shall be termed “admission” to distinguish it from imported articles brought into the customs territory.

“International Freight Forwarder” refers to persons responsible for the assembly and consolidation of shipments into single lot, and assuming, in most cases, the full responsibility for the international transport of such shipment from point of receipt to the point of destination.

“Non-Vessel Operating Common Carrier” (NOVCC) means a person, including an international freight forwarder, providing point–to-point international transport of shipments without operating or owing the means of transport or equipment. An NVOCC deals with the shipper and issues its own transport document (e.g. B/L or AWB) even though it commonly subcontracts the different stages of transport to vessel,

paragraph shall be known as smuggled articles. "Contrabands" are articles of prohibited importation or exportation.

"Duly Registered" as used in this Act, refers to a person, natural or juridical, which is registered with the proper government agencies, such as the Bureau of Commerce, Securities and Exchange Commission, NACIDA, Board of Investments, Export Incentives Board or Oil Commission as now or may hereafter be required by law. (R.A. 9135, April 27, 2001)

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aircraft, and truck operators.

"Port of Entry" is a domestic port open to both foreign and coastwise trade. The term includes principal ports of entry and subports of entry. A "principal port of entry” is the chief port of entry of the collection district wherein it is situated and is the permanent station of the Collector of such port. Subports of entry are under the administrative jurisdiction of the Collector of the principal port of entry of the district. Whenever the term "Port of Entry" is used herein, it shall include “airport of entry”.

“Release of goods” means the action by Customs to permit goods undergoing clearance to be placed at the disposal of the PERSON CONCERNED.

“Refund” means the return, in whole or in part, of duties and taxes paid on goods.

“Remission” means the reduction or dimunition, in whole or in part, of duties and taxes where payment has not been made; the term remission is synonymous with abatement. “Security” REFERS TO ANY FORM OF GUARANTY, E.G., SURETY BOND, CASH BOND, STANDBY LETTER OF CREDIT, IRREVOCABLE LETTER OF CREDIT, which ensures the satisfaction of an obligation to Customs. "Smuggling" is an act of any person who shall fraudulently import or bring into the Philippines, or assist in so doing, any article, contrary to law or KNOWING THE ARTICLE TO HAVE BEEN IMPORTED CONTRARY TO LAW shall receive, conceal, buy, sell, DISPOSE or in any manner, facilitate the transportation, concealment, PURCHASE, sale OR DISPOSITION of such article after importation.[ It includes the exportation of articles in a manner contrary to law. Articles subject to this paragraph shall be known as smuggled article.

"Taxes" includes all taxes, fees and charges imposed by THE NATIONAL INTERNAL REVENUE CODE and collected by

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the Bureau of Customs.

“Transit” means the customs procedure under which goods are transported under customs control from one customs office to another or to a free zone.

“Transshipment” means the customs procedure under which goods are transferred under customs control from the importing means of transport to the exporting means of transport within the area of one customs office which is the office of both importation and exportation.

SEC. 103. When Importation Begins and Deemed

Terminated.

Importation begins when the carrying vessel or aircraft enters the jurisdiction of the Philippines with intention to unlade therein. Importation is deemed terminated upon payment of 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 the customs.

SEC 1202 When Importation Begins and Deemed Terminated. - Importation begins when the carrying vessel or aircraft enters the jurisdiction of the Philippines with intention to unlade therein. Importation is deemed terminated upon payment of 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 are free of duties, taxes and other charges, until they have legally left the jurisdiction of the customs.

En toto

SEC. 104. COMPETENT CUSTOMS OFFICES. FOR ADMINISTRATIVE PURPOSES, THE PHILIPPINES SHALL BE DIVIDED INTO AS MANY COLLECTION DISTRICTS AS NECESSARY, THE RESPECTIVE LIMITS OF WHICH MAY BE CHANGED FROM TIME TO TIME BY THE COMMISSIONER OF CUSTOMS UPON THE APPROVAL OF THE SECRETARY OF FINANCE. THE LOCATION, STAFF COMPETENCIES AND BUSINESS HOURS OF THESE OFFICES SHALL TAKE INTO ACCOUNT THE PARTICULAR REQUIREMENTS OF TRADE.

SEC 701 Collection Districts and Ports of Entry Thereof. - For administrative purposes, the Philippines shall be divided into as many collection districts as necessary, the respective limits of which may be changed from time to time by the Commissioner of Customs upon approval of the Secretary of Finance. The principal ports of entry for the respective collection districts shall be Manila, Manila International Container Port, Ninoy Aquino International Airport, Cebu, Iloilo, Davao, Tacloban, Zamboanga, Cagayan de Oro, Surigao, Legaspi, Batangas, San Fernando, and Subic.

RKC GA Standard 3.1, 3.2, 3.3, 3.4, 3.5 3.1. Standard

The Customs shall designate the Customs offices at which goods may be produced or cleared. In determining the competence and location of these offices and their hours of business, the factors to be taken into account shall include in particular the requirements of the trade.

3.2. Standard

At the request of the person concerned and for reasons deemed valid by the Customs, the latter shall, subject to the

First part of sentence taken from Sec 701 the rest is based on RKC.

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availability of resources, perform the functions laid down for the purposes of a Customs procedure and practice outside the designated hours of business or away from Customs offices. Any expenses chargeable by the Customs shall be limited to the approximate cost of the services rendered.

3.3. Standard

Where Customs offices are located at a common border crossing, the Customs administrations concerned shall correlate the business hours and the competence of those offices.

3.4. Transitional Standard

At common border crossings, the Customs administrations concerned shall, whenever possible, operate joint controls.

Where the Customs intend to establish a new Customs office or to convert an existing one at a common border crossing, they shall, wherever possible, co-operate with the neighbouring Customs to establish a juxtaposed Customs office to facilitate joint controls.

SEC. 105. Owner of Imported Articles.

All articles Imported into the Philippines shall be held to be the property of the person to whom the same are consigned and the holder of a bill of lading OR AIRWAY BILL duly endorsed by the consignee therein named, or, if consigned to order, by the consignor, shall be deemed the consignee thereof.

SEC 1203 Owner of Imported Articles. - All articles Imported into the Philippines shall be held to be the property of the person to whom the same are consigned: and the holder of a bill of lading duly endorsed by the consignee therein named, or, if consigned to order, by the consignor, shall be deemed the consignee thereof. The underwriters of abandoned articles and the salvors of articles saved from wreck at sea, a coast or in any area of the Philippines may be regarded as the

RKC GA Standard 8.1 8.1. Standard

Persons concerned shall have the choice of transacting business with the Customs either directly or by designating a third

The words “or airway bill” inserted to complete reference document type.

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The underwriters of abandoned articles and the salvors of articles saved from wreck at sea, a coast or in any area of the Philippines may be regarded as the consignees.

consignees. party to act on their behalf.

SEC. 106. Liability of Importer for Duties AND TAXES Unless relieved by laws or regulations, the liability for duties, taxes, fees and other charges attaching on importation constitutes a personal debt due from the importer to the government which can be discharged only by payment in full of all duties, taxes, fees and other charges legally accruing. It also constitutes a lien upon the articles imported which may be enforced while such articles are in custody or subject to the control of the government.

SEC 1204 Liability of Importer for Duties. - Unless relieved by laws or regulations, the liability for duties, taxes, fees and other charges attaching on importation constitutes a personal debt due fro¬m the importer to the government which can be discharged only by payment in full of all duties, taxes, fees and other charges legally accruing. It also constitutes a lien upon the articles imported which may be enforced while such articles are in custody or subject to the control of the government.

National legislation shall specify the person(s) responsible for the payment of duties and taxes.

Minor amendment on the title. “AND TAXES” is added to make the definition of liability more complete.

SEC. 107. Importations by the Government. Except those provided for in Section 800of this ACT, all importations by the Government for its own use or that of its subordinate branches or instrumentalities, or corporations, agencies or instrumentalities owned or controlled by the government shall be subject to the duties, taxes, fees and other charges provided for in this ACT.

SEC 1205 Importations by the Government. - Except those provided for in Section One Hundred and Five of this Code, all importations by the Government for its own use or that of its subordinate branches or instrumentalities, or corporations, agencies or instrumentalities owned or controlled by the government shall be subject to the duties, taxes, fees and other charges provided for in this code.

En toto

SEC. 108. DECLARANT.

A DECLARANT IS A PERSON WHO MAKES AND SUBMITS TO CUSTOMS GOODS DECLARATION OR IN WHOSE NAME SUCH DECLARATION IS MADE. ANY PERSON HAVING THE RIGHT TO DISPOSE OF THE GOODS SHALL BE ENTITLED TO DIRECTLY ACT AS DECLARANT. HOWEVER, WHEN HE AUTHORIZES AN AGENT TO MAKE THE DECLARATION IN HIS BEHALF, HE CAN ONLY DO SO THROUGH AN ACCREDITED CUSTOMS BROKER EXCEPT IN CASE WHEN THE DECLARANT IS A

JURIDICAL PERSON IN WHICH CASE IT MAY AUTHORIZE ITS EMPLOYEE OR OFFICER TO MAKE THE

DECLARATION IN BEHALF OF THE JURIDICAL PERSON.

See RA9280 (Customs Brokers’ Act) RKC Definition; RKC GA Standard 3.6 and 3.7

The declarant

(a) Persons entitled to act as declarant 3.6. Standard

National legislation shall specify the conditions under which a person is entitled to act as declarant.

3.7. Standard

Any person having the right to dispose of the goods shall be entitled to act as

New provision. Recommended provision seeks to find a middle ground between the clamor to limit authority to make import/export declaration to licensed customs brokers (even to the exclusion of consignee/owner) and the old law allowing even third parties (atty-in-fact) to make a declaration in behalf of consignee/owner. The suggested provision allows owner (person with right to dispose of the goods) to declare (including employee or officer if person is a juridical entity) or he may appoint a licensed customs broker to make the declaration. Any other third party will no longer be authorized to

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declarant. make such declaration. This is calculated to be compliant with the RKC standard and at the same time to give protection to the customs brokers’ profession by barring non-customs broker to act as a declarant. SEC. 109. RIGHTS AND RESPONSIBILITIES OF THE

DECLARANT.

THE PERSON HAVING THE RIGHT TO DISPOSE SHALL BE RESPONSIBLE FOR THE ACCURACY OF THE INFORMATION IN THE GOODS DECLARATION MADE DIRECTLY OR THROUGH AN AGENT AND SHALL BE LIABLE FOR THE DUTIES, TAXES AND OTHER CHARGES DUE ON THE IMPORTED ARTICLE.

THE DECLARANT SHALL SIGN THE GOODS DECLARATION PERSONALLY OR THROUGH AN EMPLOYEE OR OFFICER IN CASE OF JURIDICAL PERSON OR EVEN WHEN ASSISTED BY A LICENSED CUSTOMS BROKER WHO SHALL LIKEWISE SIGN SAID GOODS DECLARATION. THE DECLARATION SHALL BE UNDER OATH UNDER THE PENALTIES OF

FALSIFICATION OR PERJURY THAT THE STATEMENTS CONTAINED IN THE GOODS DECLARATION ARE TRUE AND CORRECT. SUCH STATEMENTS UNDER OATH SHALL CONSTITUTE A PRIMA FACIE EVIDENCE OF KNOWLEDGE OR CONSENT OF THE VIOLATION OF ANY APPLICABLE PROVISIONS OF THIS ACT WHEN THE IMPORTATION IS FOUND TO BE UNLAWFUL. BEFORE FILING OF THE GOODS DECLARATION, THE DECLARANT MAY, UPON REQUEST IN WRITING, AND FOR SUCH JUSTIFIABLE REASONS AND UNDER SUCH CONDITIONS AS THE COMMISSIONER OF CUSTOMS SHALL DETERMINE, BE ALLOWED TO INSPECT THE GOODS AND TO DRAW SAMPLES FROM THE IMPORTATION. THERE SHALL BE NO NEED FOR A SEPARATE DECLARATION FOR THE SAMPLES

RKC Definition; RKC GA Standard 3.6, 3.7, 3.8, 3.9, 3.24

3.6. Standard

National legislation shall specify the conditions under which a person is entitled to act as declarant.

3.7. Standard

Any person having the right to dispose of the goods shall be entitled to act as declarant.

(b) Responsibilities of the declarant 3.8. Standard

The declarant shall be held responsible to the Customs for the accuracy of the particulars given in the Goods declaration and the payment of the duties and taxes. (c) Rights of the declarant

3.9. Standard

Before lodging the Goods declaration the declarant shall be allowed, under such conditions as may be laid down by the Customs:

a. to inspect the goods; and

The provision defines clearly that the importer as the declarant is the one primarily responsible for the truthfulness and accuracy of the declaration made. The customs broker is likewise liable for his declaration to the extent of what he attests to as true and accurate. A new provision pursuant to RKC standard-- Declarant under certain conditions has the right to request for inspection and draw sample before making a declaration. Customs must provide rules and regulations as to when and how to avail to ensure against possible abuse.

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WITHDRAWN UNDER CUSTOMS SUPERVISION PROVIDED, THAT SUCH SAMPLES ARE INCLUDED IN THE GOODS DECLARATION FOR THE PARTICULAR CONSIGNMENT CONCERNED.

b. to draw samples.

SEC. 110. GOODS DECLARATION.

GOODS DECLARATION FORMAT AND CONTENTS THE FORMAT OF THE GOODS DECLARATION SHALL CONFORM TO INTERNATIONAL STANDARDS. THE DATA REQUIRED IN THE GOODS DECLARATION SHALL BE LIMITED TO ONLY SUCH PARTICULARS AS ARE DEEMED NECESSARY FOR THE ASSESSMENT AND COLLECTION OF DUTIES AND TAXES, THE

COMPILATION OF STATISTICS AND COMPLIANCE WITH CUSTOMS AND TARIFF LAWS.

WHERE THE DECLARANT DOES NOT HAVE ALL THE INFORMATION REQUIRED TO MAKE THE GOODS DECLARATION, A PROVISIONAL OR INCOMPLETE GOODS DECLARATION SHALL, FOR CERTAIN CASES AND FOR REASONS DEEMED VALID BY CUSTOMS, BE ALLOWED TO BE LODGED , PROVIDED THAT IT

CONTAINS THE PARTICULARS DEEMED NECESSARY BY THE CUSTOMS FOR THE ACCEPTANCE OF THE ENTRY FILED AND THAT THE DECLARANT UNDERTAKES TO COMPLETE IT WITHIN A REASONABLE PERIOD OF TIME AS SPECIFIED BY REGULATIONS.

IF CUSTOMS ACCEPTS A PROVISIONAL OR INCOMPLETE GOODS DECLARATION, THE TARIFF TREATMENT TO BE ACCORDED TO THE GOODS SHALL NOT BE DIFFERENT FROM THAT WHICH WOULD HAVE BEEN ACCORDED HAD A COMPLETE AND CORRECT GOODS DECLARATION BEEN LODGED IN THE FIRST INSTANCE.

THE RELEASE OF THE GOODS SHALL NOT BE DELAYED PROVIDED THAT ANY SECURITY REQUIRED HAS BEEN

RKC GA Standards 3.11 to 3.19 The Goods declaration

(a) Goods declaration format and contents 3.11. Standard

The contents of the Goods declaration shall be prescribed by the Customs. The paper format of the Goods declaration shall conform to the UN-layout key. For automated Customs clearance processes, the format of the electronically lodged Goods declaration shall be based on international standards for electronic information exchange as prescribed in the Customs Co-operation Council

Recommendations on information technology.

3.12. Standard

The Customs shall limit the data required in the Goods declaration to only such particulars as are deemed necessary for the assessment and collection of duties and taxes, the compilation of statistics and the application of Customs law.

3.13. Standard

Where, for reasons deemed valid by the Customs, the declarant does not have all the information required to make the

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FURNISHED TO ENSURE COLLECTION OF ANY APPLICABLE DUTIES AND TAXES.

CUSTOMS SHALL REQUIRE THE LODGEMENT OF THE ORIGINAL GOODS DECLARATION AND ONLY THE MINIMUM NUMBER OF COPIES AS ARE NECESSARY. DOCUMENTS SUPPORTING THE GOODS DECLARATION IN SUPPORT OF THE GOODS DECLARATION, CUSTOMS SHALL ONLY REQUIRE DOCUMENTS NECESSARY FOR CUSTOMS CONTROL AND TO ENSURE THAT ALL REQUIREMENTS OF THE LAW HAVE BEEN COMPLIED WITH.

WHERE CERTAIN SUPPORTING DOCUMENTS CANNOT BE LODGED WITH THE GOODS DECLARATION FOR REASONS DEEMED VALID BY THE CUSTOMS, THEY SHALL ALLOW PRODUCTION OF THOSE DOCUMENTS WITHIN A REASONABLE PERIOD AS SPECIFIED BY REGULATION.

CUSTOMS SHALL PERMIT THE LODGEMENT OF SUPPORTING DOCUMENTS BY ELECTRONIC MEANS. CUSTOMS SHALL NOT REQUIRE A TRANSLATION OF THE PARTICULARS OF SUPPORTING DOCUMENTS EXCEPT WHEN NECESSARY TO PERMIT PROCESSING OF THE GOODS DECLARATION.

Goods declaration, a provisional or incomplete Goods declaration shall be allowed to be lodged, provided that it contains the particulars deemed necessary by the Customs and that the declarant undertakes to complete it within a specified period.

3.14. Standard

If the Customs register a provisional or incomplete Goods declaration, the tariff treatment to be accorded to the goods shall not be different from that which would have been accorded had a complete and correct Goods declaration been lodged in the first instance.

The release of the goods shall not be delayed provided that any security required has been furnished to ensure collection of any applicable duties and taxes.

3.15. Standard

The Customs shall require the lodgement of the original Goods declaration and only the minimum number of copies necessary. (b) Documents supporting the Goods declaration

3.16. Standard

In support of the Goods declaration the Customs shall require only those documents necessary to permit control of the operation and to ensure that all requirements relating to the application of

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Customs law have been complied with. 3.17. Standard

Where certain supporting documents cannot be lodged with the Goods declaration for reasons deemed valid by the Customs, they shall allow production of those documents within a specified period.

The Customs shall permit the lodgement of supporting documents by electronic means.

3.19. Standard

The Customs shall not require a translation of the particulars of supporting documents except when necessary to permit processing of the Goods declaration.

SEC. 111. LODGEMENT AND REGISTRATION CUSTOMS SHALL PERMIT THE LODGING OF THE GOODS DECLARATION AT ANY DESIGNATED CUSTOMS OFFICE.

GOODS DECLARATION SHALL BE LODGED DURING THE HOURS DESIGNATED BY THE CUSTOMS.

CUSTOMS SHALL MAKE PROVISION UNDER SUCH TERMS AND CONDITIONS AS THE COMMISSIONER OF CUSTOMS MAY ESTABLISH FOR THE FILING OF GOODS DECLARATION AND SUPPORTING DOCUMENTS PRIOR TO THE ARRIVAL OF THE GOODS.

CUSTOMS SHALL FOR VALID REASON, PERMIT THE DECLARANT TO AMEND THE GOODS DECLARATION

Standard 3.20, 3.22, 3.25 and 3.27 Lodgement, registration and checking of the Goods declaration

3.20. Standard

The Customs shall permit the lodging of the Goods declaration at any designated Customs office.

3.22. Standard

The Goods declaration shall be lodged during the hours designated by the Customs.

New provision. Declarant may amend declaration under certain conditions. Customs must issue rules and regulations to check possible abuse.

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THAT HAS ALREADY BEEN LODGED, PROVIDED THAT WHEN THE REQUEST IS RECEIVED THEY HAVE NOT BEGUN TO CHECK THE GOODS DECLARATION OR TO EXAMINE THE GOODS.

3.25. Standard

National legislation shall make provision for the lodging and registering or checking of the Goods declaration and supporting documents prior to the arrival of the goods.

3.27. Standard

The Customs shall permit the declarant to amend the Goods declaration that has already been lodged, provided that when the request is received they have not begun to check the Goods declaration or to examine the goods.

SEC. 112. SPECIAL PROCEDURES FOR AUTHORIZED

PERSONS

FOR AUTHORIZED PERSONS WHO MEET THE CRITERIA SET DOWN BY CUSTOMS, INCLUDING HAVING AN APPROPRIATE RECORD OF COMPLIANCE WITH CUSTOMS REQUIREMENTS AND A SATISFACTORY SYSTEM FOR MANAGING THEIR COMMERCIAL RECORDS, CUSTOMS SHALL PROVIDE FOR:

RELEASE OF THE GOODS ON THE PROVISION OF THE MINIMUM INFORMATION NECESSARY TO IDENTIFY THE GOODS AND PERMIT THE SUBSEQUENT COMPLETION OF THE FINAL GOODS DECLARATION;

CLEARANCE OF THE GOODS AT THE DECLARANT'S PREMISES OR ANOTHER PLACE AUTHORIZED BY THE CUSTOMS; AND, IN ADDITION, TO THE EXTENT POSSIBLE, OTHER SPECIAL PROCEDURES SUCH AS: ALLOWING A SINGLE GOODS DECLARATION FOR ALL IMPORTS OR EXPORTS IN A GIVEN PERIOD WHERE GOODS ARE IMPORTED OR EXPORTED FREQUENTLY

SAFE Framework New provision. This will lay down the legal basis for an “Authorized Economic Operator” program for BoC under the SAFE Framework.

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BY THE SAME PERSON;

USE OF THE AUTHORIZED PERSONS’ COMMERCIAL RECORDS TO SELF-ASSESS THEIR DUTY AND TAX LIABILITY AND, WHERE APPROPRIATE, TO ENSURE COMPLIANCE WITH OTHER CUSTOMS REQUIREMENTS; ALLOWING THE LODGEMENT OF GOODS DECLARATION BY MEANS OF AN ENTRY IN THE RECORDS OF THE AUTHORIZED PERSON TO BE SUPPORTED SUBSEQUENTLY BY A SUPPLEMENTARY GOODS DECLARATION.

THIS SECTION SHALL BE IMPLEMENTED WITHIN FIVE (5) YEARS FROM THE ENACTMENT OF THIS ACT.

SEC. 113 EXAMINATION OF THE GOODS TIME REQUIRED FOR EXAMINATION OF GOODS WHEN THE EXAMINATION OF GOODS IS REQUIRED BY CUSTOMS, SUCH EXAMINATION SHALL TAKE PLACE AS SOON AS POSSIBLE AFTER THE GOODS DECLARATION HAS BEEN LODGED.

WHEN SCHEDULING EXAMINATIONS, PRIORITY SHALL BE GIVEN TO THE EXAMINATION OF LIVE ANIMALS AND PERISHABLE GOODS AND TO OTHER GOODS WHICH CUSTOMS CONSIDER AS URGENTLY NEEDING EXAMINATION.

CUSTOMS AND OTHER AGENCIES CONCERNED SHALL COME OUT WITH A SYSTEM OF COORDINATION AND JOINT EXAMINATION OF GOODS WHICH MUST BE INSPECTED BY THE LATTER UNDER EXISTING LEGISLATION.

PRESENCE OF THE DECLARANT AT EXAMINATION OF GOODS

AS A GENERAL RULE, CUSTOMS MAY EXAMINE GOODS

RKC GA Standard 3.33 to 3.38 Examination of the goods

(a) Time required for examination of goods 3.33. Standard

When the Customs decide that goods declared shall be examined, this examination shall take place as soon as possible after the Goods declaration has been registered.

3.34. Standard

When scheduling examinations, priority shall be given to the examination of live animals and perishable goods and to other goods which the Customs accept are urgently required.

If the goods must be inspected by other competent authorities and the Customs

New provision. Section 112 (2) states the general rule that presence of importer/broker not necessary during examination except when requested by the latter subject to approval, or when customs so requires. This principle is based on international best customs practice .

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WITHOUT THE PRESENCE OF THE DECLARANT OR AN AUTHORIZED REPRESENTATIVE. HOWEVER, IF THE DECLARANT SO REQUESTS, HE OR AN AUTHORIZED REPRESENTATIVE SHALL BE ALLOWED TO BE PRESENT UNLESS SERIOUS, EXCEPTIONAL CIRCUMSTANCES EXIST TO BAR THEIR PRESENCE.

IF CUSTOMS DEEM IT USEFUL, THEY SHALL REQUIRE THE DECLARANT TO BE PRESENT OR TO BE

REPRESENTED AT THE EXAMINATION OF THE GOODS TO GIVE THEM ANY ASSISTANCE NECESSARY TO FACILITATE THE EXAMINATION.

SAMPLING BY THE CUSTOMS

SAMPLES SHALL BE TAKEN ONLY WHERE DEEMED NECESSARY BY CUSTOMS TO ESTABLISH THE TARIFF DESCRIPTION AND/OR VALUE OF GOODS DECLARED OR TO ENSURE COMPLIANCE WITH CUSTOMS AND RELATED LAWS. SAMPLES DRAWN SHALL BE AS SMALL AS POSSIBLE.

also schedules an examination, the Customs shall ensure that the inspections are co-ordinated and, if possible, carried out at the same time.

(b) Presence of the declarant at examination of goods 3.36. Standard

The Customs shall consider requests by the declarant to be present or to be represented at the examination of the goods. Such requests shall be granted unless exceptional circumstances exist. 3.37. Standard

If the Customs deem it useful, they shall require the declarant to be present or to be represented at the examination of the goods to give them any assistance necessary to facilitate the examination. (c) Sampling by the Customs 3.38. Standard

Samples shall be taken only where deemed necessary by the Customs to establish the tariff description and/or value of goods declared or to ensure the application of other provisions of national legislation. Samples drawn shall be as small as possible.

SEC. 114. ERRORS IN GOODS DECLARATION CUSTOMS SHALL NOT IMPOSE SUBSTANTIAL

PENALTIES FOR ERRORS WHERE THEY ARE SATISFIED THAT SUCH ERRORS ARE INADVERTENT AND THAT

RKC GA Standard 3.39 Errors

3.39. Standard

New provision laying down the principle that customs should not impose excessive sanctions for non-compliance when error is inadvertent

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THERE HAS BEEN NO FRAUDULENT INTENT OR GROSS NEGLIGENCE IN THE COMMISSION THEREOF. WHERE THEY CONSIDER IT NECESSARY TO DISCOURAGE A REPETITION OF SUCH ERRORS, A PENALTY MAY BE IMPOSED BUT SHALL BE NO GREATER THAN IS NECESSARY FOR THIS PURPOSE.

The Customs shall not impose substantial penalties for errors where they are satisfied that such errors are inadvertent and that there has been no fraudulent intent or gross negligence. Where they consider it necessary to discourage a repetition of such errors, a penalty may be imposed but shall be no greater than is necessary for this purpose.

or in good faith.

SEC. 115. RELEASE OF GOODS

GOODS DECLARED SHALL BE RELEASED AS SOON AS DUTIES AND TAXES AND OTHER LAWFUL CHARGES HAVE BEEN PAID OR SECURED TO BE PAID AND/OR OTHERWISE ALL THE PERTINENT LAWS, RULES AND REGULATIONS HAVE BEEN COMPLIED WITH. WHEN CUSTOMS DECIDE THAT THEY REQUIRE LABORATORY ANALYSIS OF SAMPLES, DETAILED TECHNICAL DOCUMENTS OR EXPERT ADVICE, THEY SHALL RELEASE THE GOODS BEFORE THE RESULTS OF SUCH EXAMINATION ARE KNOWN, PROVIDED THAT ANY SECURITY REQUIRED HAS BEEN FURNISHED AND PROVIDED THEY ARE SATISFIED THAT THE GOODS ARE NOT SUBJECT TO PROHIBITIONS OR RESTRICTIONS.

When the Customs decide that they require laboratory analysis of samples, detailed technical documents or expert advice, they shall release the goods before the results of such examination are known, provided that any security required has been furnished and provided they are satisfied that the goods are not subject to prohibitions or restrictions.

New provision mandating the immediate release of goods from customs custody upon payment of duties and taxes. RKC standard.

SEC. 116. ABANDONMENT OR DESTRUCTION OF

GOODS

WHEN GOODS HAVE NOT YET BEEN RELEASED FOR CONSUMPTION OR WHEN THEY HAVE BEEN PLACED UNDER ANOTHER CUSTOMS PROCEDURE, AND PROVIDED THAT NO OFFENCE HAS BEEN DETECTED, THE PERSON CONCERNED SHALL NOT BE REQUIRED TO PAY THE DUTIES AND TAXES OR SHALL BE ENTITLED TO REFUND THEREOF:

WHEN, AT HIS REQUEST, SUCH GOODS ARE ABANDONED OR DESTROYED OR RENDERED COMMERCIALLY VALUELESS UNDER CUSTOMS

RKC GA Standard 3.44

Abandonment or destruction of goods 3.44. Standard

When goods have not yet been released for home use or when they have been placed under another Customs procedure, and provided that no offence has been detected, the person concerned shall not be required to pay the duties and taxes or shall be entitled to repayment thereof:

New provision. This is introduced as a general standard to reflect the RKC mandate. Note however that current legislation provides for abatement or refund relief in similar circumstances.

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CONTROL, AS CUSTOMS MAY DECIDE. ANY COSTS INVOLVED SHALL BE BORNE BY THE PERSON CONCERNED;

WHEN SUCH GOODS ARE DESTROYED OR IRRECOVERABLY LOST BY ACCIDENT OR FORCE MAJEURE, PROVIDED THAT SUCH DESTRUCTION OR LOSS IS DULY ESTABLISHED TO THE SATISFACTION OF CUSTOMS;

ON SHORTAGES DUE TO THE NATURE OF THE GOODS WHEN SUCH SHORTAGES ARE DULY ESTABLISHED TO THE SATISFACTION OF CUSTOMS.

ANY WASTE OR SCRAP REMAINING AFTER DESTRUCTION SHALL BE LIABLE, IF TAKEN INTO CONSUMPTION, TO THE DUTIES AND TAXES THAT WOULD BE APPLICABLE TO SUCH WASTE OR SCRAP IMPORTED IN THAT STATE.

when, at his request, such goods are abandoned to the Revenue or destroyed or rendered commercially valueless under Customs control, as the Customs may decide. Any costs involved shall be borne by the person concerned;

when such goods are destroyed or irrecoverably lost by accident or force majeure, provided that such destruction or loss is duly established to the satisfaction of the Customs;

on shortages due to the nature of the goods when such shortages are duly established to the satisfaction of the Customs.

Any waste or scrap remaining after destruction shall be liable, if taken into home use or

exported, to the duties and taxes that would be applicable to such waste or scrap imported

or exported in that state. SEC. 117. DISPOSITION OF ABANDONED GOODS

WHEN CUSTOMS SELL GOODS WHICH HAVE NOT BEEN DECLARED WITHIN THE TIME ALLOWED OR COULD NOT BE RELEASED ALTHOUGH NO OFFENCE HAS BEEN DISCOVERED, THE PROCEEDS OF THE SALE, AFTER DEDUCTION OF ANY DUTIES AND TAXES AND ALL OTHER CHARGES AND EXPENSES INCURRED, SHALL BE MADE OVER TO THOSE PERSONS ENTITLED TO RECEIVE THEM OR, WHEN THIS IS NOT POSSIBLE, HELD AT THEIR DISPOSAL FOR A SPECIFIED PERIOD.

RKC GA 3.45 Transitional standard 3.45. Transitional Standard

When the Customs sell goods which have not been declared within the time allowed or could not be released although no offence has been discovered, the proceeds of the sale, after deduction of any duties and taxes and all other charges and expenses incurred, shall be made over to those persons entitled to receive them or, when this is not possible, held at

New provision. This seems to apply to implied abandonment. That means that if abandonment is express, importer is not entitled to net proceeds. Relate this to the proposed Forfeiture Fund in Section 1049.

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their disposal for a specified period. SEC. 118. When Duty and Tax is Due on Imported

Article.

All articles, when imported from any foreign country into the Philippines, shall be subject to duty upon each importation, even though previously exported from the Philippines, except as otherwise specifically provided for in this ACT or in other laws.

DUTIES, TAXES AND OTHER CHARGES SHALL BE PAID PRIOR TO RELEASE FROM CUSTOMS CUSTODY OR PRIOR TO ENTRY INTO THE CUSTOMS TERRITORY IN CASE OF WITHDRAWAL FROM FREE ZONES OR FROM CBWs. HOWEVER, FOR CERTAIN HIGHLY COMPLIANT AND LOW RISK IMPORTERS OR EXPORTERS AS DETERMINED BY REGULATION, THE BUREAU SHALL ALLOW THE DEFERRED PAYMENT OF DUTIES AND TAXES FOR A PERIOD OF NOT LESS THAN 14 DAYS BUT NOT EXCEEDING 30 DAYS.

UNPAID DUTIES, TAXES AND ANY OTHER CHARGES, SHALL BE SUBJECT TO THE LEGAL INTEREST OF 20% PER ANNUM COMPUTED FROM THE EXPIRATION OF THE DUE DATE OR IN CASE OF GOODS ADMITTED INTO FREE ZONES, FROM THE TIME THE ASSESSMENT IS MADE AFTER GOODS ENTER THE CUSTOMS

TERRITORY. THE LEGAL INTEREST SHALL BE IMPOSED IN ADDITION TO ANY APPLICABLE FINE OR PENALTY. WHEN DUTIES, TAXES AND OTHER CHARGES ARE PAID, THE BUREAU SHALL ISSUE THE NECESSARY RECEIPT OR ACKNOWLEDGEMENT AS PROOF OF SUCH PAYMENT.

IN CASE OF DEFERRED PAYMENT, CUSTOMS SHALL HAVE 3 YEARS WITHIN WHICH IT MAY TAKE LEGAL ACTION TO COLLECT DUTIES AND TAXES NOT PAID BY THE DUE DATE.

SEC 100 Imported Articles Subject to Duty.

All articles, when imported from any foreign country into the Philippines, shall be subject to duty upon each importation, even though previously exported from the Philippines, except as otherwise specifically provided for in this Code or in other laws.

RKC General Annex Standards 4.1 and 4.2, 4.3, 4.4, 4.5, 4.6, 4.8, 4.9, 4.10, 4.11, 4.12, 4.15, 4.16

A. ASSESSMENT, COLLECTION AND PAYMENT OF DUTIES AND TAXES 4.1. Standard

National legislation shall define the circumstances when liability to duties and taxes is incurred.

4.2. Standard

The time period within which the applicable duties and taxes are assessed shall be stipulated in national legislation. The assessment shall follow as soon as possible after the Goods declaration is lodged or the liability is otherwise incurred. 4.3. Standard

The factors on which the assessment of duties and taxes is based and the conditions under which they are determined shall be specified in national legislation.

4.4. Standard

The rates of duties and taxes shall be set out in official publications.

4.5. Standard

National legislation shall specify the point in time to be taken into consideration for the purpose of determining the rates of

Section 100 is expanded to incorporate RKC standards 4.1 up to 4.16. A new provision allows deferred payment for a period of not less than 14 to not more than 30 days. Customs must issue guidelines when to avail to check possible abuse.

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duties and taxes. 4.6. Standard

National legislation shall specify the methods that may be used to pay the duties and taxes.

4.8. Standard

National legislation shall determine the due date and the place where payment is to be made.

4.9. Standard

When national legislation specifies that the due date may be after the release of the goods, that date shall be at least ten days after the release. No interest shall be charged for the period between the date of release and the due date.

4.10. Standard

National legislation shall specify the period within which the Customs may take legal action to collect duties and taxes not paid by the due date.

4.11. Standard

National legislation shall determine the rate of interest chargeable on amounts of duties and taxes that have not been paid by the due date and the conditions of application of such interest. 4.12. Standard

When the duties and taxes have been paid, a receipt constituting proof of

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payment shall be issued to the payer, unless there is other evidence constituting proof of payment.

B. DEFERRED PAYMENT OF DUTIES AND TAXES

4.15. Standard

Where national legislation provides for the deferred payment of duties and taxes, it shall specify the conditions under which such facility is allowed.

4.16. Standard

Deferred payment shall be allowed without interest charges to the extent possible. SEC. 119. Effective Date of Rate of Import Duty.

Imported articles shall be subject to the rate or rates of import duty OF THE APPLICABLE TARIFF HEADING at the time of entry or UPON withdrawal from the warehouse for

consumption.

On article abandoned or forfeited to, or seized by, the government, and then sold at public auction, the rates of duty and the tariff in force on the date of the auction shall apply: Provided, That duty based on the weight, volume and quantity of articles shall be levied and collected on the weight, volume and quantity at the time of their entry into the warehouse or the date of abandonment, forfeiture and/or seizure.

RKC GA 4.1 and 4.2, 4.3, 4.4, 4.5, 4.6 4.1. Standard

4.2. Standard

The factors on which the assessment of duties and taxes is based and the conditions under which they are determined shall be specified in national

Provision amended deleting second paragraph for not being relevant anymore and simplifying the first paragraph to make it clearer.

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legislation. 4.4. Standard

4.5. Standard

National legislation shall specify the point in time to be taken into consideration for the purpose of determining the rates of duties and taxes.

4.6. Standard

SEC. 120. Treatment of Importation.

Imported articles shall be deemed "entered" in the Philippines for consumption when the specified entry form is properly filed and accepted, together with any related documents required by the provisions of this ACT and/or regulations to be filed with such form at the time of entry, at the port or station by the customs official designated to receive such entry papers and any duties, taxes, fees and/or other lawful charges required to be paid at the time of making such entry have been paid or secured to be paid with the customs official designated to receive such monies, provided that the article has previously arrived within the limits of the port of entry.

Imported articles shall be deemed “withdrawn" from warehouse in the Philippines for consumption when the specified form is properly filed and accepted, together with any related documents required by any provisions of this ACT and/or regulations to be filed with such form at the time of withdrawal, by the customs official designated to receive the withdrawal entry and any duties, taxes, fees and/or other

SEC 205 Entry, or Withdrawal from Warehouse, for Consumption.

Imported articles shall be deemed "entered" in the Philippines for consumption when the specified entry form is properly filed and accepted, together with any related documents required by the provisions of this Code and/or regulations to be filed with such form at the time of entry, at the port or station by the customs official designated to receive such entry papers and any duties, taxes, fees and/or other lawful charges required to be paid at the time of making such entry have been paid or secured to be paid with the customs official designated to receive such monies, provided that the article has previously arrived within the limits of the port of entry.

Imported articles shall be deemed “wthdrawn" from warehouse in the Philippines for consumption when the specified form is properly filed and accepted, together with any related documents required by any provisions of this Code and/or regulations to be filed with such form at the time of withdrawal, by the customs official designated to receive the withdrawal

RKC GA Standards 4.1 and 4.2, 4.3, 4.4, 4.5, 4.6, Specific Annex D2

4.1. Standard

4.2. Standard

The factors on which the assessment of duties and taxes is based and the

Minor amendment. “Have been Paid” is inserted to make clearer the obligation to pay duties and taxes upon withdrawal for local consumption of goods from bonded warehouse.

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lawful charges HAVE BEEN PAID with the customs official designated to receive such payment.

entry and any duties, taxes, fees and/or other lawful charges required to be paid at the time of withdrawal have been deposited with the customs official designated to receive such payment.

conditions under which they are determined shall be specified in national legislation.

4.4. Standard

4.5. Standard

National legislation shall specify the point in time to be taken into consideration for the purpose of determining the rates of duties and taxes.

4.6. Standard

Specific Annex D Chapter 1 2. Standard

National legislation shall provide for Customs warehouses open to any person having the right to dispose of the goods (public Customs warehouses). SEC. 121. DEFERRED PAYMENT FOR GOVERNMENT

IMPORTATION

THE GOVERNMENT OR ANY OF ITS

INSTRUMENTALITIES OR AGENCIES MAY AVAIL OF DEFERRED PAYMENT FOR ITS IMPORTATIONS UNDER SUCH TERMS AND CONDITIONS THAT SHALL BE DETERMINED BY REGULATION TO BE JOINTLY ISSUED BY THE DEPARTMENT OF FINANCE AND THE

DEPARTMENT OF BUDGET MANAGEMENT .

RKC Standard allowing deferred payment. RKC GA 4.15. Standard

Where national legislation provides for the deferred payment of duties and taxes, it shall specify the conditions under which such facility is allowed.

New provision. Current policy allows deferred payment for govt

importations. This provision will provide for a clear statutory basis for such privilege.

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SEC. 122. REFUND OF DUTIES AND TAXES REFUND SHALL BE GRANTED WHERE IT IS

ESTABLISHED THAT DUTIES AND TAXES HAVE BEEN OVERCHARGED AS A RESULT OF AN ERROR IN THEIR ASSESSMENT.

WHERE PERMISSION IS GIVEN BY THE CUSTOMS FOR GOODS ORIGINALLY DECLARED FOR A CUSTOMS PROCEDURE WITH PAYMENT OF DUTIES AND TAXES TO BE PLACED UNDER ANOTHER CUSTOMS PROCEDURE, REFUND SHALL BE MADE OF ANY DUTIES AND TAXES CHARGED IN EXCESS OF THE AMOUNT DUE UNDER THE NEW PROCEDURE SUBJECT TO SUCH REGULATION ISSUED FOR THE PURPOSE. REFUND SHALL NOT BE GRANTED IF THE AMOUNT INVOLVED IS LESS THAN FIVE THOUSAND PESOS. HOWEVER, THE SECRETARY OF FINANCE IN CONSULTATION WITH THE COMMISSIONER, MAY CHANGE THE MINIMUM AMOUNT SPECIFIED IN THIS ACT TAKING INTO ACCOUNT SUCH FACTORS AS INFLATION OR DEFLATION.

RKC GA 4.20. TRANSITIONAL STANDARD

Where permission is given by the Customs for goods originally declared for a Customs procedure with payment of duties and taxes to be placed under another Customs procedure, repayment shall be made of any duties and taxes charged in excess of the amount due under the new procedure.

New provision. The refund standard here will clash with the TCCP provision (Sec 1408) which provides that no shipment shall be assessed at less than the entered value and therefore the latter may have to be repealed as is proposed in this draft CTMA. This is because the new standard allows refund for overcharged assessment as in the case of erroneous declaration on value on the part of the

declarant/importer. If sec 1408 subsists a refund based on such over-assessment by wrongly entered value cannot hold water. Another new provision disallows refund when amount is PhP5 thousand or less.

SEC. 123. SECURITY

CUSTOMS REGULATION SHALL PROVIDE THE FORMS AND AMOUNT OF SECURITY THAT ARE REQUIRED TO GUARANTEE THE PAYMENT OF DUTIES AND TAXES AND OTHER OBLIGATIONS PROVIDED FOR IN THIS ACT. UNLESS THE FORM OF THE SECURITY IS FIXED IN THIS ACT, ANY PERSON REQUIRED TO PROVIDE SECURITY SHALL BE ALLOWED TO CHOOSE ANY FORM OF SECURITY PROVIDED THAT IT IS ACCEPTABLE TO CUSTOMS.

CUSTOMS SHALL NOT REQUIRE SECURITY WHEN THEY ARE SATISFIED THAT AN OBLIGATION TO THE

CUSTOMS WILL BE FULFILLED.

Standard 5.3, 5.4, 5.5, 5.6, 5.7 5.3. Standard

Any person required to provide security shall be allowed to choose any form of security provided that it is acceptable to the Customs.

5.4. Standard

Where national legislation provides, the Customs shall not require security when they are satisfied that an obligation to the Customs will be fulfilled.

New provision. Policy is set down adopting the liberal RKC standard on security to be required by customs. Importer may choose the kind of security to put subject to approval by customs. Customs may now require no security in cases where it is satisfied that obligation will be met. It also sets down a “ceiling” on the amount of security to be imposed, which is not to be in excess of the potential liability.

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WHEN SECURITY IS REQUIRED TO ENSURE THAT THE OBLIGATIONS ARISING FROM A CUSTOMS PROCEDURE WILL BE FULFILLED, THE CUSTOMS SHALL ACCEPT A GENERAL SECURITY, IN PARTICULAR FROM

DECLARANTS WHO REGULARLY DECLARE GOODS AT DIFFERENT OFFICES IN THE CUSTOMS TERRITORY UNDER SUCH TERMS AND CONDITIONS AS THE COMMISSIONER MAY DETERMINE.

WHERE SECURITY IS REQUIRED, THE AMOUNT OF SECURITY TO BE PROVIDED SHALL BE AS LOW AS POSSIBLE AND, IN RESPECT OF THE PAYMENT OF DUTIES AND TAXES, SHALL NOT EXCEED THE AMOUNT POTENTIALLY CHARGEABLE.

WHERE SECURITY HAS BEEN FURNISHED, IT SHALL BE DISCHARGED AS SOON AS POSSIBLE AFTER THE CUSTOMS ARE SATISFIED THAT THE OBLIGATIONS UNDER WHICH THE SECURITY WAS REQUIRED HAVE BEEN DULY FULFILLED.

5.5. Standard

When security is required to ensure that the obligations arising from a Customs procedure will be fulfilled, the Customs shall accept a general security, in particular from declarants who regularly declare goods at different offices in the Customs territory.

5.6. Standard

Where security is required, the amount of security to be provided shall be as low as possible and, in respect of the payment of duties and taxes, shall not exceed the amount potentially chargeable. 5.7. Standard

Where security has been furnished, it shall be discharged as soon as possible after the Customs are satisfied that the obligations under which the security was required have been duly fulfilled. SEC. 124. CUSTOMS CONTROL

ALL GOODS, INCLUDING MEANS OF TRANSPORT, WHICH ENTER OR LEAVE THE CUSTOMS TERRITORY, REGARDLESS OF WHETHER THEY ARE LIABLE TO DUTIES AND TAXES, SHALL BE SUBJECT TO CUSTOMS CONTROL WHICH SHALL BE LIMITED TO THAT

NECESSARY TO ENSURE COMPLIANCE WITH CUSTOMS AND RELATED LAWS.

IN THE APPLICATION OF CUSTOMS CONTROL, THE CUSTOMS SHALL USE AUDIT-BASED CONTROLS AND RISK MANAGEMENT SYSTEMS AND ADOPT A

COMPLIANCE MEASUREMENT STRATEGY TO SUPPORT

RKC GA Standard 6.1, 6.2, 6.3, 6.5, 6.7, 6.8, 6.10

6.1. Standard

All goods, including means of transport, which enter or leave the Customs territory, regardless of whether they are liable to duties and taxes, shall be subject to Customs control.

6.2. Standard

Customs control shall be limited to that necessary to ensure compliance with the

New provision. Customs has now a legal basis to create or ask for fund to support international networking efforts.

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RISK MANAGEMENT.

CUSTOMS SHALL SEEK TO COOPERATE WITH OTHER CUSTOMS ADMINISTRATIONS AND AIM AT CONCLUDING MUTUAL ADMINISTRATIVE ASSISTANCE AGREEMENTS TO ENHANCE CUSTOMS CONTROL.

CUSTOMS SHALL CONSULT AND COOPERATE WITH OTHER GOVERNMENT REGULATORY AGENCIES, INCLUDING FREE AND SPECIAL ECONOMIC ZONE AUTHORITIES, AND THE CUSTOMS STAKEHOLDERS IN GENERAL TO ENHANCE CUSTOMS CONTROL. CUSTOMS SHALL EVALUATE TRADERS’ COMMERCIAL SYSTEMS WHERE THOSE SYSTEMS HAVE AN IMPACT ON CUSTOMS OPERATIONS TO ENSURE COMPLIANCE WITH CUSTOMS REQUIREMENTS.

Customs law. 6.3. Standard

In the application of Customs control, the Customs shall use risk management. 6.5. Standard

The Customs shall adopt a compliance measurement strategy to support risk management.

6.6. Standard

Customs control systems shall include audit-based controls.

6.7. Standard

The Customs shall seek to co-operate with other Customs administrations and seek to conclude mutual administrative assistance agreements to enhance Customs control. 6.8. Standard

The Customs shall seek to co-operate with the trade and seek to conclude

Memoranda of Understanding to enhance Customs control.

6.10. Standard

The Customs shall evaluate traders’ commercial systems where those systems have an impact on Customs operations to ensure compliance with Customs requirements.

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SEC. 125. APPLICATION OF INFORMATION AND

COMMUNICATION TECHNOLOGY

CUSTOMS SHALL APPLY INFORMATION AND COMMUNICATION TECHNOLOGY TO ENHANCE CUSTOMS CONTROL AND SUPPORT A COST-EFFECTIVE AND EFFICIENT CUSTOMS OPERATIONS GEARED TOWARDS A PAPERLESS CUSTOMS ENVIRONMENT USING INTERNATIONALLY ACCEPTED STANDARDS.

THE INTRODUCTION OF INFORMATION AND COMMUNICATION TECHNOLOGY SHALL BE CARRIED OUT IN CONSULTATION WITH ALL RELEVANT PARTIES DIRECTLY AFFECTED, TO THE GREATEST EXTENT POSSIBLE.

RKC GA Standard 7.1, 7.2 and 7.3 7.1. Standard

The Customs shall apply information technology to support Customs operations, where it is cost-effective and efficient for the Customs and for the trade. The Customs shall specify the conditions for its application.

7.2. Standard

When introducing computer applications, the Customs shall use relevant internationally accepted standards. 7.3. Standard

The introduction of information technology shall be carried out in consultation with all relevant parties directly affected, to the greatest extent possible.

New provision establishing policy on the use of ICT technology in customs administration.

SEC. 126. RELATIONSHIP BETWEEN CUSTOMS AND

THIRD PARTIES

PERSONS CONCERNED SHALL HAVE THE CHOICE OF TRANSACTING BUSINESS WITH CUSTOMS EITHER DIRECTLY OR BY DESIGNATING A THIRD PARTY TO ACT ON THEIR BEHALF.

THE CUSTOMS TRANSACTIONS WHERE THE PERSON CONCERNED ELECTS TO DO BUSINESS ON HIS OWN ACCOUNT SHALL NOT BE TREATED LESS FAVOURABLY OR BE SUBJECT TO MORE STRINGENT REQUIREMENTS THAN THOSE CUSTOMS TRANSACTIONS WHICH ARE HANDLED FOR THE PERSON CONCERNED BY A THIRD PARTY.

A PERSON DESIGNATED AS A THIRD PARTY SHALL

RKC GA Standard 8.1, 8.3, 8.4 8.1. Standard

Persons concerned shall have the choice of transacting business with the Customs either directly or by designating a third party to act on their behalf.

8.3. Standard

The Customs transactions where the person concerned elects to do business on his own account shall not be treated less favourably or be subject to more stringent requirements than those Customs transactions which are handled

New provision adopting policy on how to treat third parties transacting with customs.

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HAVE THE SAME RIGHTS AS THE PERSON WHO DESIGNATED HIM IN THOSE MATTERS RELATED TO TRANSACTING BUSINESS WITH CUSTOMS.

for the person concerned by a third party. 8.4. Standard

A person designated as a third party shall have the same rights as the person who designated him in those matters related to transacting business with the Customs. SEC. 127. INFORMATION OF GENERAL APPLICATION

TO FOSTER AN INFORMED COMPLIANCE REGIME, CUSTOMS SHALL ENSURE THAT ALL RELEVANT AND AVAILABLE INFORMATION OF GENERAL APPLICATION PERTAINING TO CUSTOMS LAW, NOT OTHERWISE CONFIDENTIAL OR FOR CUSTOMS USE ONLY IS READILY ACCESSIBLE TO ANY INTERESTED PERSON FOR LEGITIMATE USE.

WHEN INFORMATION THAT HAS BEEN MADE AVAILABLE MUST BE AMENDED DUE TO CHANGES IN CUSTOMS LAW, ADMINISTRATIVE ARRANGEMENTS OR

REQUIREMENTS, CUSTOMS SHALL, AS FAR AS MAY BE FEASIBLE, MAKE THE REVISED INFORMATION READILY AVAILABLE SUFFICIENTLY IN ADVANCE OF THE ENTRY INTO FORCE OF THE CHANGES TO ENABLE

INTERESTED PERSONS TO TAKE ACCOUNT OF THEM, UNLESS ADVANCE NOTICE IS PRECLUDED.

RKC GA Standard 9.1, 9.2 9.1. Standard

The Customs shall ensure that all relevant information of general application pertaining to Customs law is readily available to any interested person. 9.2. Standard

When information that has been made available must be amended due to changes in Customs law, administrative arrangements or requirements, the Customs shall make the revised information readily available sufficiently in advance of the entry into force of the changes to enable interested persons to take account of them, unless advance notice is precluded.

New provision. Transparency standard.

SEC. 128. INFORMATION OF A SPECIFIC NATURE SUBJECT TO REGULATION ISSUED FOR THE PURPOSE, CUSTOMS SHALL PROVIDE INFORMATION AS MAY BE AVAILABLE AND IS NOT OTHERWISE CONFIDENTIAL OR FOR CUSTOMS USE ONLY, RELATING TO A SPECIFIC MATTER AS REQUESTED BY AN INTERESTED PERSON FOR LEGITIMATE USE.

CUSTOMS MAY REQUIRE THE PAYMENT OF A

RKC GA 9.4, 9.7 9.4. Standard

At the request of the interested person, the Customs shall provide, as quickly and as accurately as possible, information relating to the specific matters raised by the interested person and pertaining to Customs law.

New provision. Transparency standard.

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REASONABLE FEE IN PROVIDING SUCH INFORMATION OF A SPECIFIC NATURE TO INTERESTED PARTIES.

9.7. Standard

When the Customs cannot supply information free of charge, any charge shall be limited to the approximate cost of the services rendered.

SEC. 129. DECISIONS AND RULINGS AT THE WRITTEN REQUEST OF THE PERSON CONCERNED, CUSTOMS SHALL NOTIFY THEIR DECISION IN WRITING WITHIN A PERIOD SPECIFIED IN THIS ACT. WHERE THE DECISION IS ADVERSE TO THE PERSON CONCERNED, THE REASONS SHALL BE GIVEN AND THE RIGHT OF APPEAL ADVISED.

CUSTOMS, SHALL, WITHIN THE BOUNDS OF ITS MANDATE UNDER THIS ACT, ISSUE BINDING RULINGS AT THE REQUEST OF THE INTERESTED PERSON ON MATTERS PERTAINING TO IMPORTATION OR

EXPORTATION OF GOODS, PROVIDED THAT IT HAS ALL THE INFORMATION THEY DEEM NECESSARY.

RKC GA Standard 9.8, 9.9 9.8. Standard

At the written request of the person concerned, the Customs shall notify their decision in writing within a period specified in national legislation. Where the decision is adverse to the person concerned, the reasons shall be given and the right of appeal advised.

9.9. Standard

The Customs shall issue binding rulings at the request of the interested person, provided that the Customs have all the information they deem necessary.

New provision Transparency standard

SEC. 130. RIGHT OF APPEAL, FORMS AND GROUND ANY PERSON WHO IS DIRECTLY AFFECTED BY A DECISION OR OMISSION OF CUSTOMS PERTAINING TO HIS IMPORTATION OR EXPORTATION OR LEGAL CLAIM SHALL HAVE A RIGHT OF APPEAL.

AN APPEAL IN WRITING SHALL BE LODGED WITHIN THE SUFFICIENT TIME PERIOD AS SPECIFIED IN THIS ACT OR BY REGULATION STATING THE GROUNDS ON WHICH IT IS BEING MADE.

CUSTOMS SHALL NOT, AS A MATTER OF COURSE, REQUIRE THAT ANY SUPPORTING EVIDENCE BE LODGED TOGETHER WITH THE APPEAL BUT SHALL, IN

RKC GA Standard 10.2, 10.7, 10.8, 10.9 10.2. Standard

Any person who is directly affected by a decision or omission of the Customs shall have a right of appeal.

10.7. Standard

An appeal shall be lodged in writing and shall state the grounds on which it is being made.

10.8. Standard

New provision. Standard policy on appellate relief.

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APPROPRIATE CIRCUMSTANCES, ALLOW A REASONABLE TIME FOR THE LODGEMENT OF SUCH EVIDENCE.

A time limit shall be fixed for the

lodgement of an appeal against a decision of the Customs and it shall be such as to allow the appellant sufficient time to study the contested decision and to prepare an appeal.

10.9. Standard

Where an appeal is to the Customs they shall not, as a matter of course, require that any supporting evidence be lodged together with the appeal but shall, in appropriate circumstances, allow a reasonable time for the lodgement of such evidence.

CHAPTER 3. TYPES OF IMPORTATION

SEC. 131. FREE AND REGULATED IMPORTATIONS AND

EXPORTATIONS

UNLESS OTHERWISE PROVIDED BY LAW OR REGULATION, ALL ARTICLES MAY BE FREELY IMPORTED INTO AND EXPORTED FROM THE PHILIPPINES WITHOUT NEED FOR IMPORT AND EXPORT PERMITS, CLEARANCES OR LICENSES. ARTICLES SUBJECT TO GOVERNMENT REGULATION MAY BE BROUGHT IN OR EXPORTED ONLY AFTER SECURING THE REQUIRED IMPORT OR EXPORT PERMITS, CLEARANCES, LICENSES, AND THE LIKE, PRIOR TO IMPORTATION OR EXPORTATION; AND IF ALLOWED BY GOVERNING LAWS OR REGULATIONS, AFTER ARRIVAL OF THE ARTICLES BUT PRIOR TO RELEASE FROM CUSTOMS CUSTODY IN CASE OF IMPORTATION.

New provision. This is the first attempt to statutorily define “freely” and “regulated” importations. Only “prohibited” importation is defined in the TCCP. Also the word “exportation” is included as the TCCP only mentions “importation”. The provision also sets down the policy on when the import permit or license must be secured. This allows certain leeway to clear certain regulated goods instead of subjecting them to undue sanctions such as seizure which does not serve primary goals of customs.

SEC. 132. Prohibited Importations AND EXPORTATIONS. The importation into AND EXPORTATION FROM the

SEC 101 Prohibited Importations. Minor amendments. ”Infringing goods”

already included in the list of prohibited imports and so with those defined in

(30)

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Philippines of the following articles ARE prohibited: (a) Dynamite, gunpowder, ammunitions and other explosives, firearms and weapons of war, and parts thereof, except when authorized by law;

(b) Written or printed articles in any form containing any matter advocating or inciting treason, or rebellion, insurrection, sedition or subversion against the Government of the Philippines, or forcible resistance to any law of the Philippines, or containing any threat to take the life of, or inflict bodily harm upon any person in the Philippines;

(c). Written or printed articles, negatives or cinematographic film, photographs, engravings, lithographs, objects, paintings, drawings or other representation of an obscene or immoral character;

(d) Articles, instruments, drugs and substances designed, intended or adapted for producing unlawful abortion, or any printed matter which advertises or describes or gives directly or indirectly information where, how or by whom unlawful abortion is produced;

(e) Roulette wheels, gambling outfits, loaded dice, marked cards, machines, apparatus or mechanical devices used in gambling or the distribution of money, cigars, cigarettes or other articles when such distribution is

dependent on chance, including jackpot and pinball machines or similar contrivances, or parts thereof;

(f) Lottery and sweepstakes tickets except those authorized by the Philippine Government, advertisements thereof, and lists of drawings therein;

(g) Any article manufactured in whole or in part of gold, silver or other precious metals or alloys thereof, the stamps, brands or marks or which do not indicate the actual fineness of quality of said metals or alloys;.-

(h) Any adulterated or misbranded articles of food or

The importation into the Philippines of the following articles is prohibited:

(a) Dynamite, gunpowder, ammunitions and other explosives, firearms and weapons of war, and parts thereof, except when authorized by law.

(b) Written or printed articles in any form containing any matter advocating or inciting treason, or rebellion, insurrection, sedition or subversion against the Government of the Philippines, or forcible resistance to any law of the Philippines, or containing any threat to take the life of, or inflict bodily harm upon any person in the Philippines.

(c). Written or printed articles, negatives or cinematographic film, photographs, engravings, lithographs, objects, paintings, drawings or other representation of an obscene or immoral character.

(d) Articles, instruments, drugs and substances designed, intended or adapted for producing unlawful abortion, or any printed matter which advertises or describes or gives directly or indirectly information where, how or by whom unlawful abortion is produced.

(e) Roulette wheels, gambling outfits, loaded dice, marked cards, machines, apparatus or mechanical devices used in gambling or the distribution of money, cigars, cigarettes or other articles when such distribution is dependent on chance, including jackpot and pinball machines or similar contrivances, or parts thereof.

(f) Lottery and sweepstakes tickets except those authorized by the Philippine Government, advertisements thereof, and lists of drawings therein.

(g) Any article manufactured in w hole or in part of gold, silver or other precious metals or alloys thereof, the stamps, brands or marks or which do not indicate the actual fineness of

binding international agreements. This is good for our IPR and other international agreement compliance status.