QuestionsQuestions (MTRCB MEMORANDUM CIRCULAR NO. 01-03)
The main objective is to provide a mechanism ensuring the performance of obligations by importers and surety companies guaranteed by warehousing bonds, to ensure immediate liquidation of warehousing entries upon performance of such obligations, and to enable the Bureau of Customs to take action against non-performance.
It covers any and all warehousing shipments for which bonds have been issued to guarantee the performance of certain obligations by the importer due to the Bureau of Customs.
They are bonds issued by surety companies accredited by the Bureau of Customs to guarantee the export of goods or manufacture of raw materials into finished products for export, or the payment of taxes/duties pursuant to the Tariff and Customs Code of the Philippines, as amended.
Performance may take the form of exportation within the prescribed period of imported goods or finished products made from imported raw materials under bond, or payment of taxes and duties on goods imported under bond as per existing laws.
The payment or performance by the surety company extinguishes the obligations of the importer and grounds the cancellation of the corresponding bond.
The importations shall be subject to the provisions of Section 1508 of the Tariff and Customs Code of the Philippines, which includes penalties, without prejudice to other sanctions provided by the Order.
The importer shall file a Statement of Liquidation within 30 days from exportation specifying the warehousing entry details and supporting documents. The concerned Operating Division will verify the exportation with the export division and liquidate the warehousing entry accordingly.
Bonds are cancelled after complete liquidation of the warehousing entry. The Operating Division forwards documents to the Bonds Division, which cancels the bond within 5 days and notifies the importer and surety company in writing.
The importer must pay the taxes and duties payable on the warehousing entry.
A surcharge of P1,000 or 2% per month of the taxes/duties payable, whichever is higher, from the day the 30-day liquidation period lapsed until submission, and full payment of taxes and duties due.
Under Section 1508 of the Tariff and Customs Code, the Bureau will withhold delivery of current or future importations of the importer until the outstanding account is settled.
The District Collector is responsible for the proper implementation of this Order in all cases within their district's jurisdiction.
They may face administrative charges including dishonesty, neglect of duty, misconduct, inefficiency or incompetence, with penalties ranging from suspension of six months and one day to one year or dismissal according to the Uniform Rules on Administrative Cases in the Civil Service.
CAO 5-91, specifically Sections II.1(a) and (b), II.2(a), II.3(a), and other pertinent provisions inconsistent with this Order were repealed or modified accordingly.
It took effect fifteen (15) days after its publication in at least two newspapers of general circulation.