Question & AnswerQ&A (Republic Act No. 10863)
Republic Act No. 10863 is known as the "Customs Modernization and Tariff Act (CMTA)".
The primary objectives of the CMTA are to protect and enhance government revenue, institute fair and transparent customs and tariff management that facilitates international trade efficiently, prevent customs fraud and illegal acts, and modernize customs and tariff administration.
Abatement refers to the reduction or diminution, in whole or in part, of duties and taxes where payment has not been made.
A declarant may be a consignee or a person who has the right to dispose of the goods, including the importer, exporter, a customs broker acting under authority, or a person duly empowered to act as an agent or attorney-in-fact. For juridical persons, an authorized responsible officer may sign the goods declaration.
Importation begins when the carrying vessel or aircraft enters the Philippine territory intending to unload. It is deemed terminated when duties, taxes, and other charges have been paid or secured unless the goods are duty-free and legally withdrawn or have left the jurisdiction of the Bureau.
Misdeclaration resulting in a discrepancy in duties and taxes results in a surcharge of 250% of the amounts due. Intentional or fraudulent misdeclaration incurs a surcharge of 500% and the goods are subject to seizure, with additional fines and penalties imposed on the involved parties.
Fraudulent importation or exportation, or aiding in such acts, is punishable depending on the appraised value of goods, ranging from imprisonment and fines for smaller amounts, up to reclusion perpetua and hefty fines for values exceeding two hundred million pesos. Specific penalties also include disqualification from public office for public officers involved.
The declarant is responsible for the accuracy of the goods declaration and for payment of all duties, taxes, and other charges due. When assisted by a customs broker, both must sign the declaration but responsibility for payment remains with the declarant.
The transaction value must be the price actually paid or payable for the goods when sold for export, with no restrictions affecting the goods' disposition or use outside those imposed by law, the sale must not be subject to conditions with undeterminable value, and the buyer and seller must not be related, or if related, the value must approximate prices in transactions with unrelated buyers.
Travelers may clear goods of commercial nature valued under P50,000 through informal entry. Personal and household effects not in commercial quantity can be cleared without import permits, subject to value limits. Simplified procedures are based on international standards and customs best practices to facilitate travel and trade.
Aggrieved parties can file protests within 15 days of a ruling or decision. They may appeal adverse rulings or decisions to the Court of Tax Appeals within 30 days from receipt of the adverse ruling. The CMTA also provides for advance rulings, dispute resolution by the Tariff Commission, and administrative appeal processes.
The Commissioner has exclusive jurisdiction to interpret the Act's provisions, review customs decisions, exercise customs powers, delegate functions, assign personnel, and promulgate enforcement rules, subject to certain approvals and limitations.
The Bureau exercises jurisdiction over all seas and waters within Philippine territory, including ports, airports, and inland waterways, and extends jurisdiction beyond territorial waters for pursuit and seizure of vessels or aircraft engaged in violations.