QuestionsQuestions (BOC CUSTOMS MEMORANDUM ORDER NO. 20-2008)
To establish a uniform and transparent system for determining redemption value under Section 2307 of the TCCP and to serve as a guide to BOC offices/officers in computing the redemption value of forfeited imported articles.
It covers disposition of forfeited imported goods when the owner/importer/exporter/consignee or his/her agent offers to pay the Collector the domestic market value under Section 2307 (as amended).
The owner, importer, exporter, consignee, or their agent may offer to pay the Collector the domestic market value of the forfeited articles.
After the shipment has been declared forfeited and within the period of appeal, the District Collector may accept the offer.
No. Orders/decisions of the District Collector releasing shipments by redemption, settlement, or quashal/lifting of WSD are subject to approval of the Commissioner of Customs.
Redemption is not allowed where the forfeiture decision has become final and executory, where the importation is absolutely prohibited, or where release would be contrary to law.
The redemption value is the domestic market value of the forfeited articles using the stated formula involving total landed cost plus applicable tax plus nominal allowance.
Domestic Market Value/Redemption Value = Total Landed Cost + Applicable Tax + Nominal Allowance per Standard Trade Practice for profit and general expenses, not lower than 10% mark-up from total landed costs.
Total Landed Cost is the sum of the Customs Value, Applicable Duty, and Other Taxable Charges (as stated in the order).
It shall not be lower than 10% mark-up from the total landed costs.
A certification by the assigned examiner must reflect the damage/obsolescence/spoilage/loss/depreciation, and then a standard/reasonable percentage may be allowed depending on the facts.
A certification reflecting damage, obsolescence, spoilage, losses, or depreciation as reflected in the inventory of the forfeited articles subject of redemption.
A canvass of the wholesale price of the forfeited articles from at least three (3) establishments selling the same, like or similar articles.
It must not exceed a period of ten (10) days from the date of receipt of the request for computation.
The Customs Valuation Officer who made the canvass shall issue a certification to that effect.
No. Redemption shall not be allowed where the importation is absolutely prohibited.
CMO 34-2002 and other inconsistent customs orders, rules, and regulations or parts thereof are deemed repealed/amended accordingly.
It takes effect immediately.