Question & AnswerQ&A (BOC CUSTOMS ADMINISTRATIVE ORDER NO. 06-2014)
The Order provides guidelines on the imposition of surcharge under Section 2503 of the Tariff and Customs Code of the Philippines (TCCP), as amended.
It repeals Sections 2-6 of Customs Administrative Order No. 01-2014 and replaces them with the current guidelines.
If the percentage difference in misclassification is 10% or more but not exceeding 20%, a one-time surcharge of the difference in customs duty is imposed. If the percentage difference exceeds 20%, a two-times surcharge of the difference in customs duty is imposed.
When the percentage difference is 10% or more but not exceeding 30%, a surcharge of two times the difference in customs duty is imposed.
It constitutes prima facie evidence of fraud and is penalized through seizure proceedings under Section 2530 of the TCCP.
Using the formula: (Duty using valuation as found - Duty using valuation as declared) divided by Duty using valuation as found.
Imposition of surcharge is mandatory except when misclassification is based on an advance tariff classification ruling later reversed before final liquidation, or when clerical or specific weight/measure errors are discovered before payment.
No, surcharges properly imposed cannot be compromised or waived, and good faith of importer is not a valid defense.
Errors such as manifest clerical error in invoice or entry, certified weight/measure errors by surveyor or examining official, and errors in distribution of charges certified by officials are exempt if discovered before payments.
It took effect immediately upon publication in a newspaper of general circulation or Official Gazette and after depositing three copies to the UP Law Center.