Question & AnswerQ&A (Republic Act No. 10863)
Republic Act No. 10863 shall be known as the Customs Modernization and Tariff Act (CMTA).
The policy is to protect and enhance government revenue, institute fair and transparent customs and tariff management to facilitate international trade, prevent customs fraud and illegal acts, and modernize customs and tariff administration.
A customs officer is a person whose duty involves the exercise of discretion in performing the functions of the Bureau of Customs. It may also refer to an employee authorized to perform specific functions under the Act.
Importation begins when the carrying vessel or aircraft enters Philippine territory with the intention to unload. It is deemed terminated when duties and taxes due have been paid or secured and legal permit for withdrawal has been granted, or when goods have legally left the jurisdiction of the Bureau if duty-free.
The declarant is responsible for the accuracy of the goods declaration and for the payment of all duties, taxes, and other charges due. The declarant must sign the goods declaration even when assisted by a licensed customs broker.
A surcharge of 250% of the duty and tax due shall be imposed for misdeclaration or undervaluation unless discrepancies are under 10% or certain valid conditions apply. Intentional or fraudulent acts attract a surcharge of 500% of the duty and tax due, and goods may be seized regardless of discrepancy amount.
Customs bonded warehouses are classified into manufacturing (miscellaneous, common, industry-specific) and nonmanufacturing warehouses (public, private, and other customs facilities).
The Commissioner exercises exclusive jurisdiction to interpret the law, reviews decisions, oversees customs administration, delegates powers, assigns personnel, and performs duties necessary for effective enforcement of the Act.
A provisional declaration may be lodged if the declarant lacks all required information but provides substantial data and undertakes to complete the declaration within 45 days, extendable by another 45 days for valid reasons. Duties apply as if complete declaration was made.
Penalties vary by the appraised value of goods unlawfully imported, ranging from imprisonment of 30 days to reclusion perpetua and fines from P25,000 up to P50 million or more. Heinous crime penalties apply if appraised value exceeds P200 million.