QuestionsQuestions (Republic Act No. 10863)
It is known as the “Customs Modernization and Tariff Act (CMTA)”. (Sec. 100)
Policies include enhancing customs systems to harmonize procedures; adopting clear and transparent rules consistent with international standards; ensuring transparency/accessibility of customs information; consulting and coordinating with other agencies and the private sector; providing fair and expeditious administrative and judicial appellate remedies; using modern practices and ICT for customs functions; and instituting professionalism and meritocracy in customs personnel.
Abatement means the reduction or diminution, in whole or in part, of duties and taxes where payment has not been made. (Sec. 102[a])
It is importing goods into the country without complete customs prescribed importation documents or without being cleared by customs/other regulatory agencies, for the purpose of evading payment of prescribed taxes, duties, and other charges. (Sec. 102[ff])
Importation begins when the carrying vessel or aircraft enters Philippine territory with intention to unload there. It is deemed terminated when (a) duties/taxes/other charges are paid or secured at the port of entry (unless free from such charges and withdrawal is granted), or (b) if goods are deemed free, when the goods have legally left the jurisdiction of the Bureau. (Sec. 103)
Except as otherwise provided, all goods imported are subject to duty upon importation. Unpaid duties/taxes/other charges incur legal interest of 20% per annum computed from the date of final assessment when payment becomes due and demandable; the legal interest also accrues on any fine or penalty imposed. (Sec. 104)
Generally, goods are subject to the import duty rates effective at the date of importation or upon withdrawal from the warehouse for consumption. For withdrawal from free zones, duty rate at the time of withdrawal applies. For goods sold at customs public auction, the duty rates at the date of the auction apply for implementing the relevant section. (Sec. 105)
A declarant may be the consignee or person with right to dispose of the goods: (a) importer (holder of bill of lading), (b) exporter (owner), (c) customs broker acting under authority of importer or from holder of the bill, or (d) a person empowered as agent/attorney-in-fact for each holder. A customs broker processes the goods declaration, but declarant rules and responsibilities apply. (Sec. 106)
For a two (2)-year period from effectivity of the Act, the Bureau shall not implement Sec. 106(a)(d) (allowing a person empowered as agent/attorney-in-fact to be declarant). After two (2) years, it takes effect consistent with international standards and customs best practices.
The declarant is responsible for the accuracy of the goods declaration and for payment of duties/taxes/other charges. The licensed customs broker is responsible for accuracy of the goods declaration but not for payment of duties/taxes/other charges. Both must sign the goods declaration. (Sec. 107)
The Bureau shall not impose substantial penalties for inadvertent errors with no fraudulent intent or gross negligence; however, a penalty may be imposed to discourage repetition but must not be excessive. (Sec. 108)
The Bureau shall use ICT and a paperless environment. Electronic documents/permits/licenses/certificates have legal effect/validity/enforceability as other documents, provided requirements are complied with. When complied with, the Bureau must recognize authenticity, transmit approvals as electronic data/messages, and accept payments/issue receipts through electronic systems. (Sec. 109)
Sec. 111 requires publication of laws/issuances and accessibility of information of general application (non-confidential/internal-only). It also requires notice of changes as far as practicable. Sec. 112 provides for information of a specific nature: the Bureau shall provide non-confidential information requested for legitimate use, may charge a reasonable fee, and must release requested information within a reasonable time from request and payment. (Secs. 111-112)
The Bureau shall issue the ruling and decision within thirty (30) days from submission of necessary documents and information. (Sec. 113)
Any party adversely affected has the right to appeal within fifteen (15) days from receipt of the questioned decision or order; the appeal in writing must be filed within the period prescribed in the Act or by regulation and must specify grounds. (Sec. 114)
Formal entry is the rule. Informal entry applies to: (1) goods of commercial nature with FOB/FCA value less than PHP 50,000 (adjustable every three years by DOF based on CPI), and (2) personal/household effects or goods not in commercial quantity imported in a passenger’s baggage or mail. (Sec. 402)
If declarant does not have all info/supporting documents, lodging of a provisional goods declaration may be allowed if it substantially contains necessary information and the declarant undertakes to complete/submit supporting documents within 45 days from filing; the Bureau may extend another 45 days for valid reasons. Goods may be released upon posting required security equivalent to duties/taxes ascertained to be applicable. (Sec. 403)
Imported goods are deemed entered for consumption when the goods declaration is electronically lodged together with any required supporting documents with the pertinent customs office. (Sec. 115)