QuestionsQuestions (CUSTOMS MEMORANDUM ORDER NO. 28-90)
It prescribes the procedure in the forfeiture of customs bonds to complement CMO 129-88 and CMO 70-89.
All necessary entries and/or supporting documents must be reproduced by the LBD and copies furnished to the Bonds Division and the Collection Service.
They are to be kept in a security storage area at the Liquidation & Billing Division (for consumption entry), controlled by a designated officer.
They are to be kept in the WDRD (for warehousing entry), under control of a designated officer in the restricted area.
It must retrieve/recall the entry and supporting documents from the LBD (for consumption entries) or from the WDRD (for warehousing entries).
It must follow the provisions of CMO 70-89; otherwise, the Bureau should initiate reconstitution motu proprio or produce the customs copy of the bond policy.
The Collector must notify both the obligor and the surety about the maturity of the bonds for payment and/or submission of documents to satisfy the bond conditions for cancellation.
When there is absence of settlement or submission of required documents (as mentioned in the referenced CMO 70-89 provisions) after the required notification on bond maturity.
Within ten (10) working days from the lapse of ninety (90) days from maturity.
Copies of the recalled/retrieved entries and supporting documents and copies of the bonds or surety contract/policy.
Within ten (10) working days from receipt of the report and necessary documents.
Within thirty (30) days from receipt of the recommendation for forfeiture of the bonds.
No. A court action does not deter the Commissioner/Collector from suspending the operation of a customs bonded warehouse, consistent with CMO 83-89, as amended.
If a domestic surety ceases to exist, within three (3) years from dissolution, the Law Division/Legal Service must file a claim under Section 77 or 78 of the Corporation Law or under Rule 104 and 66 of the Revised Rules of Court.
The Bureau must inquire with the Office of the Insurance Commissioner regarding withdrawal of the foreign surety company and then prosecute the claim under the specified sections of the Insurance Act (Sections 202-A to 202-E).
All bonds must include an agreement that the surety will settle immediately upon maturity the monetary value of the bond if the importer fails to fulfill the conditions, even without producing the original entry and supporting documents.
It took effect April 1, 1990, and all concerned shall be guided accordingly.
All Customs Memorandum Orders inconsistent with CMO 28-90 are considered amended and/or superseded to the extent of inconsistency.