Question & AnswerQ&A (BOC CUSTOMS MEMORANDUM ORDER NO. 4-2004)
BOC Customs Memorandum Order No. 4-2004 took effect immediately upon signing on February 23, 2004.
CMO 2-80, CMO 29-82, and CMO 6-84 were revoked by BOC Customs Memorandum Order No. 4-2004.
CAO 3-78 provided for the treatment of importations of materials on consignment to be processed into finished products for export.
Under CAO 7-72, 'processing' denotes a progressive action or a series of acts or steps which do not change the nature and identity of the article, differentiated from 'manufacturing' which implies making articles by expending labor to produce finished products usually having a different form, name, and purpose.
Processing does not change the nature and identity of the article, whereas manufacturing involves labor to create a finished product which is different in form, name, and purpose from the original material.
CAO 1-2004 revoked CAO 3-78.
CMO 2-80 provided procedures in the clearance of importations of materials on consignment for processing into finished products for export at the Port of Manila and Manila International Airport, implementing CAO 3-78.
CMO 29-82 regulates the procedure in the clearance of importation of materials by small scale industries for re-export at the Port of Manila and Manila International Airport under CAO 3-78.
Reverting the definition clarifies that imported materials under customs processing do not change their nature and identity, affecting how duties, taxes, and regulations are applied versus those under manufacturing definitions.
Yes, all CMOs, rules, and regulations inconsistent with this order are repealed and/or amended accordingly.