QuestionsQuestions (BOC CUSTOMS MEMORANDUM ORDER NO. 21-2008)
The Order was issued due to the resurgence/increase of shipments declared as stocklots, side-runs, cull rolls, seconds, mill lots, off-grade, B-grade/C-grade, used/second-hand, off-specs/sub-standard/off-quality, overruns/sweepings/overflow/recycled, reconditioned/refurbished/re-fashioned, surplus/scrap, metal waste, cut-up, bath-roll, odd lengths, unbranded, or similar descriptions to avoid paying proper duties and taxes.
It aims to: (1) prevent abuse in using descriptive terms to evade proper duties and taxes while protecting government revenue; (2) protect consumers from prohibited, sub-standard, and/or hazardous products.
All such shipments/importations shall be subject to 100% examination in the presence of FCCI/FPI technical experts pursuant to GMO 9-99.
The shipment must be cleared by the District Collector, the Principal Accountable Officer. It matters because the District Collector bears principal responsibility for effective implementation in the jurisdiction.
A duly notarized Manufacturer’s and/or Supplier’s Certificate of Quality, stating the actual condition/quality of the articles using physically measurable attributes, including: the standard for the product and the deviation reducing its quality.
It must be authenticated by the Commercial Attache or Consulate at the country of origin not merely to authenticate the genuineness of the signature, but to attest to the quality of the shipment. If the authentication does not cover quality (only signatures), it shall not be considered by the Bureau.
The shipments/samples are subject to laboratory analysis by the Philippine Customs Laboratory (PCL). If equipment is unavailable, PCL may indorse the article/s or samples to DOST or other accredited laboratories for analysis.
Assessment shall be made using the VRIS Test Value or Published Reference Value for a prime quality article, subject to the TCCP, CMO 64-93, and other applicable laws/rules.
A nominal industry trade practice discount based on the customs value of brand new/prime quality may be allowed if the port finds the goods sub-standard/off-quality and the Certificate and laboratory requirements were complied with. The discount must not exceed 30%.
When the importer/importation fails to comply with the documentary and laboratory requirements under Article II, sub-pars. 3, 4, and 5; otherwise, the assessment defaults to prime quality values using VRIS/Published Reference Value.
It is the responsibility of the Principal Appraiser/Examiner, COO III, and the Chief of the Port’s Formal Entry Division (or equivalent unit) to check, make a return of findings on actual condition, and verify accuracy/truthfulness of the Manufacturer’s/Supplier’s Certificate of Quality.
Failure to perform respective responsibilities is a ground for disciplinary action under the Civil Service Rules and Regulations.
It effectively requires the importer to substantiate off-quality claims with a properly notarized and consular/authenticated Certificate of Quality and laboratory analysis; without these, assessment will be based on prime quality reference values.
The District Collector and the Deputy Collector for Assessment are the principal accountable officers who take full responsibility for the effective implementation of the Order within their district jurisdiction.
It repeals CMO Nos. 14-95, 37-93, and 62-91. All other orders, rules, and regulations inconsistent with CMO 21-2008 are deemed amended/repealed accordingly.
It takes effect fifteen (15) days from complete publication in a newspaper of general circulation.
Ensure the entry uses the proper off-quality description without misrepresentation, secure a duly notarized Manufacturer’s/Supplier’s Certificate of Quality specifying measurable deviations from standard, ensure consular/commercial attache authentication covers quality (not just signatures), and cooperate with 100% examination and Philippine Customs Laboratory (or accredited lab) analysis.