QuestionsQuestions (BOC CUSTOMS MEMORANDUM ORDER NO. 26-2009)
CMO 26-2009 is issued to give meaning and substance to Section 2307 of the Tariff and Customs Code of the Philippines (TCCP) regarding the computation/determination of the fine imposable on seized goods and the redemption value of forfeited goods, and to establish consistent, transparent procedures within the Bureau of Customs.
(1) The fine imposable on the seized goods for settlement of a seizure case; and (2) the redemption value of the forfeited goods for redemption.
The District Collector initially determines the fine/redemption value through the Auction and Cargo Disposal Division (ACDD) or the appropriate assessment office (or equivalent unit) of the port, and then recommends it for approval by the Commissioner of Customs.
During review by the Commissioner’s Office or while the seizure case is pending appeal, the VCD reviews the recommended fine/redemption value; it may concur or recommend a higher amount with supporting basis.
The VCD submits its recommendation to the Director of the Import and Assessment Service (IAS) for approval. The Deputy Commissioner of the Assessment and Operation Coordinating Group (AOCG) then gives due notation and returns the case folder to the Legal Service for disposition.
When there is a favorable recommendation for settlement/redemption, the seizure case folder is received by the Legal Service, which immediately transmits it to the VCD for review of the recommended fine/redemption value.
The Director of the Legal Service prepares the Disposition Form containing the recommendation with attached documents for clearance/counter-signature by the Deputy Commissioner for Revenue Collection Monitoring Group (RCMG), and finally for approval/signature by the Commissioner.
Yes. While the seizure case is pending appeal, settlement or redemption may still be allowed; if so, the case folder is referred again to the VCD for computation/determination of the fine/redemption value.
The Legal Service or the Commissioner’s Office refers the case folder to the VCD. The VCD then recommends computation/determination to the IAS Director for approval, after which the Deputy Commissioner for AOCG notates and returns the folder to the Legal Service or Commissioner’s Office for proper disposition.
The appropriate offices must consult the customs valuation databases in computing/determining the fine and redemption value.
The order requires compliance with Customs Memorandum Order (CMO) No. 34-2002 and CMO No. 9-2005 in the computation/determination of the fine and redemption value.
The VCD may recommend a higher fine/redemption value with supporting basis for such action, instead of simply concurring with the District Collector’s recommendation.
It provides a structured, step-by-step internal procedure defining which offices act at each stage, approval/notation requirements, and mandated consultation of valuation databases and relevant CMOs.
All orders, rules, and regulations inconsistent with CMO 26-2009 are repealed or modified accordingly.
It takes effect immediately, as stated in the Effectivity section.
It reflects a multi-layer administrative review and approval system: initial recommendation by the District Collector, valuation review by the VCD, approvals by IAS and notation by AOCG, clearance/counter-signature by RCMG, and final approval/signature by the Commissioner.