Question & AnswerQ&A (BOC ADMINISTRATIVE ORDER NO. 1-98)
It is a special economic and freeport zone in Zamboanga City, Philippines, outside the Customs Territory, established under Republic Act No. 7903 for accelerated business and customs operations.
Secured Area refers to a designated tax and duty-free area within the Zone with free flow of goods among registered enterprises and residents, surrounded by customs checkpoints and clearance areas.
The ZAMBOECOZONE Authority is responsible for the operation and management of the Secured Area in accordance with the law and its regulations.
Customs supervises admission/removal of articles, maintains customs offices in the Zone, keeps records of goods movements, conducts audits, searches, seizures, and arrests related to customs violations.
They must retain records of permits, receipts, sales, transfers, deliveries, and removals of articles, maintained on a current basis according to Philippine accounting standards and retained for five years after removal.
Searches can be conducted on persons, baggage, vehicles, and cargo upon reasonable authority by the Commissioner of Customs, with ZAMBOECOZONE officials present, and constitutional requirements for search must be met.
Foreign articles may be imported tax and duty-free into the Secured Area if covered by a permit to import from the ZAMBOECOZONE Authority, with containers marked to indicate destination to the Zone and admission documentation processed by Customs.
No. Articles prohibited under Philippine laws or not in accordance with the permit to import will be considered illegal importations and subject to the Tariff and Customs Code penalties.
Articles require a permit from the ZAMBOECOZONE to be transferred out, except for some exemptions like certain domestic articles. Transfers are subject to customs assessment of duties and taxes and must follow established procedures.
Violators are subject to pertinent penal provisions under the Tariff and Customs Code of the Philippines as amended.