Question & AnswerQ&A (BOC ADMINISTRATIVE ORDER NO. 2-2003)
The main objective is to rationalize the use and operation of Public CBWs to ensure only necessary facilities are established and to prevent delay or evasion of lawful duties and taxes on imported goods.
A Public CBW is a facility licensed by the Bureau of Customs to receive, store, and take custody of general cargoes under bond for exportation, transfer, or local consumption in the same state as when imported, based on the port's business requirements.
It covers Public CBWs duly registered and authorized by the Bureau of Customs to operate when the business of a port requires such facilities.
The establishment and operation of Public CBWs are approved by the Commissioner of Customs upon recommendation of the District Collector and the Customs Bonded Warehouse Committee.
Imported articles can be entered into a Public CBW only if the arrastre operator certifies that the port lacks space or facilities to handle the articles, and the Public CBW operator certifies availability of space and facilities, with approval of the District Collector.
Imported articles may be stored in a Public CBW for no more than one (1) year from the date of their arrival.
Transfer requires filing a warehousing entry under the Selectivity system and posting the required bond. In ports without Selectivity, transfer is under a Transshipment Permit, and warehousing entry must be filed within five (5) days, extendable by another five (5) days by the District Collector.
Regulated articles without proper clearance/import authority are not allowed and are subject to seizure and penalties; prohibited articles are subject to immediate seizure and sanctions.
Withdrawals for local consumption are allowed only upon payment of duties and taxes; withdrawals for transfer to another CBW or ecozone/PEZA are allowed without payment but under bond and with approval, and subsequent transfers between CBWs are generally not allowed.
Articles not withdrawn after one year shall be sold at public auction pursuant to Section 1908 of the Tariff and Customs Code of the Philippines.
Liquidation must be done within 30 days from sale/transfer/withdrawal within the one-year storage period. Only after full liquidation and covering of entries can bonds be cancelled.
They may convert to Industry Specific CBWs or other types within three months; failure to do so will result in their facilities being deemed closed.
Imported goods may be seized, subject to public auction, and customs officers or operators may face administrative and criminal liabilities as per existing laws.
It took effect upon approval by the Secretary of Finance and fifteen (15) days after publication in a newspaper of general circulation in the Philippines.