Scope
- Governs the disposition of forfeited imported goods where the owner, importer, exporter, consignee, or agent offers to pay the domestic market value for redemption.
- Applies pursuant to Section 2307 of the Tariff and Customs Code of the Philippines (TCCP) as amended.
Administrative Provisions
- The District Collector may accept offers to redeem forfeited articles within the appeal period after forfeiture declaration.
- Any order or decision by the District Collector regarding redemption, settlement, or lifting of Warrant of Seizure and Detention (WSD) requires approval by the Commissioner of Customs.
- Redemption is prohibited if forfeiture decision is final and executory, if importation is absolutely prohibited, or if release contravenes law.
Computation of Redemption Value
- Redemption value equals domestic market value computed by the formula:
- Total Landed Cost (customs value + applicable duty + other taxable charges)
- Applicable Tax
- Nominal allowance (minimum 10% mark-up for profit and expenses).
- For damage, obsolescence, spoilage, or depreciation in inventory, an examiner issues certification allowing reasonable percentage deduction based on case specifics.
- A canvass must be conducted of wholesale prices from at least three establishments selling identical or similar articles to verify redemption value.
- Canvass period shall not exceed 10 days from receipt of computation request.
- If no similar articles are found for canvass, a certification to that effect is issued by the Customs Valuation Officer.
Repealing Clause
- Customs Memorandum Order (CMO) 34-2002 and other inconsistent customs orders, rules, or regulations are repealed or amended accordingly.
Effectivity
- The guidelines take effect immediately upon issuance on April 10, 2008, as signed by the Commissioner of Customs, Napoleon L. Morales.