Question & AnswerQ&A (BOC CUSTOMS MEMORANDUM ORDER NO. 20-2008)
The primary objective of the order is to establish a uniform and transparent system for determining the redemption value of forfeited imported articles and to serve as a guide for the Bureau of Customs in computing the redemption value.
The order applies to the owner, importer, exporter, consignee, or his agent who offers to pay the domestic market value of the forfeited articles to redeem them.
The redemption of forfeited imported articles is provided under Section 2307 of the Tariff and Customs Code of the Philippines, as amended.
Any Order or Decision by the District Collector regarding redemption, settlement, or lifting of Warrants of Seizure and Detention (WSD) is subject to the approval of the Commissioner of Customs.
Redemption is not allowed when the decision of forfeiture has become final and executory, when the importation is absolutely prohibited, or when the release of the articles would be contrary to law.
The redemption value is the domestic market value calculated as the Total Landed Cost plus the Applicable Tax plus a Nominal Allowance (which is at least a 10% mark-up for profit and expenses). Total Landed Cost includes Customs Value, Applicable Duty, and other taxable charges.
A nominal allowance of not less than a 10% mark-up on the total landed cost is allowed for profit and general expenses.
A certification issued by the assigned examiner regarding damage, obsolescence, spoilage, losses, or depreciation shall be considered, and a reasonable percentage discount may be allowed based on the particular facts.
Yes, a canvass of wholesale prices from at least three establishments selling the same or similar articles must be conducted to test check the integrity of the redemption value. If no such establishments exist, a certification by the Customs Valuation Officer must be issued.
The canvass must be conducted within ten (10) days from the date of receipt of the request for computation.
CMO No. 34-2002 and other customs orders, rules, and regulations inconsistent with CMO No. 20-2008 are repealed or amended accordingly.
The Order took effect immediately upon its adoption on April 10, 2008.