QuestionsQuestions (Republic Act No. 10863)
The short title is the “Customs Modernization and Tariff Act (CMTA).” Its policy is to protect and enhance government revenue, institute fair and transparent customs and tariff management, prevent customs fraud/illegal acts, modernize customs administration, and promote trade facilitation through transparency, professionalism, ICT use, and fair appellate remedies.
Importation begins when the carrying vessel/aircraft enters Philippine territory with intention to unload. It is deemed terminated when (a) duties/taxes/charges have been paid or secured (unless free and permit to withdraw granted), or (b) when goods are deemed duty/tax-free, once they have legally left the Bureau’s jurisdiction.
Except as otherwise provided, imported goods are subject to duty upon importation. Unpaid duties/taxes/charges incur legal interest of 20% per annum computed from the date of final assessment when payment becomes due and demandable, and it likewise accrues on any fine or penalty imposed.
Imported goods are subject to the import duty rates effective at the date of importation or upon withdrawal from the warehouse for consumption. For free zones, the rate at the time of withdrawal applies to the goods originally admitted. For goods sold at customs public auction, the duty rates at the date of the auction apply for implementation of Section 1143(a).
A declarant may be the consignee/importer (holder of B/L), exporter (owner of goods), a customs broker acting under authority, or an empowered agent/attorney-in-fact. There is a two-year transition from effectivity where subparagraph (d) (agent/attorney-in-fact) is not implemented by the Bureau; after two years it takes effect consistent with international standards and best practices.
The declarant is responsible for the accuracy of the goods declaration and payment of all duties/taxes/charges; the licensed customs broker is responsible for accuracy but not for payment of duties/taxes/charges. For errors, the Bureau shall not impose substantial penalties if errors are inadvertent and no fraudulent intent or gross negligence exists; penalties may be imposed only to discourage repetition and not be excessive.
The Bureau shall use ICT to support paperless customs, enhance control, and ensure secure data communications. Electronic documents, permits, licenses, or certificates have legal effect and enforceability as other documents, provided requirements are complied with. The Bureau may recognize authenticity/reliability, transmit approvals electronically, and accept payments and issue receipts electronically.
Yes. Parties may transact directly or through a designated third party. Directly transacted business must not be treated less favorably or subject to more stringent requirements than transactions through a designated third party. The designated third party has the same rights/obligations as the designating party.
They provide binding interpretations on matters pertaining to importation/exportation upon written request of an interested party. The Bureau must notify the party in writing and issue the ruling/decision within 30 days from submission of necessary documents and information; adverse decisions must include reasons and advise of the right to appeal.
Any party adversely affected by a decision or omission may appeal within 15 days from receipt of the questioned decision or order. The appeal must be filed in writing within the period prescribed in the Act or by regulation and must specify grounds.
Goods are deemed entered for consumption when the goods declaration is electronically lodged, together with required supporting documents, with the pertinent customs office.
Unless otherwise provided, all goods may be freely imported/exported without permits, clearances, or licenses. Regulated goods may be imported/exported only after securing the necessary declarations, clearances, licenses, and other requirements; some submission after arrival is allowed only in cases provided by governing laws/regulations prior to release.
Examples include: materials advocating/inciting treason, rebellion, sedition, or threats/obscene content; goods designed for unlawful abortion; infringing goods under the Intellectual Property Code; adulterated/misbranded food and drugs; certain precious metal products with incorrect fineness marks; and other goods explicitly prohibited by competent authority through law/rules.
“Smuggling” includes fraudulent importing/exporting and also assisting in receiving/concealing/buying/selling/disposing/transporting goods with full knowledge of fraudulent importation/exportation, and those goods are smuggled goods. “Outright smuggling” is specifically importing without complete prescribed importation documents or without being cleared by customs/regulatory agencies to evade duties/taxes.
Relief consignment includes goods like food, medicine, equipment, and shelter materials donated/leased to government institutions and accredited private entities for free distribution/use by calamity victims. Upon declaration of a state of calamity, clearance is prioritized via simplified procedures and relief consignment imported for a specific calamity area for victims is exempt from duties and taxes.
It authorizes certain officials (Bureau and deputized persons; with authorization, AFP and national law enforcement; and BIR officials for cases involving internal revenue taxes) to effect search, seizure, and arrest. Limitations: they may only exercise powers within customs premises (per Section 303) and within the scope granted by the Commissioner; customs premises access must be unhampered by port/airport authorities.