Guidelines on Redemption Value of Forfeited Imports

The guidelines govern the disposition of forfeited imported goods through redemption under Section 2307 of the TCCP, as amended.
The Order applies to situations where the owner, importer, exporter, consignee, or their agent offers to pay the domestic market value of forfeited article/s under Section 2307 of the TCCP.
The procedure applies after the shipment has been declared forfeited, subject to the time period given for appeal.

The Order establishes a uniform and transparent system for computing the redemption value of forfeited imported articles.
The Order provides guidance to Bureau of Customs offices and officers in computing the redemption value for forfeited imported article/s.

Redemption under these guidelines covers forfeited imported goods when the owner, importer, exporter, consignee, or agent offers payment pursuant to Section 2307 of the TCCP.
Redemption is administered through the District Collector after forfeiture has been declared and within the period of appeal.
Orders or decisions involving redemption, settlement, or quashal/lifting of the WSD are subject to approval by the Commissioner of Customs.

The District Collector may accept the redemption offer only after the shipment has been declared forfeited and within the period of appeal.
Any District Collector order or decision releasing the shipment/s by redemption, settlement, or quashal/lifting of the WSD requires approval of the Commissioner of Customs.
No redemption is allowed where the forfeiture decision has become final and executory.
No redemption is allowed where the importation is absolutely prohibited.
No redemption is allowed where release of the articles would be contrary to law.

The redemption value equals the domestic market value computed using this formula:
Domestic Market Value/Redemption Value = Total Landed Cost + Applicable Tax + Nominal Allowance per Standard Trade Practice for profit and general expenses.
The nominal allowance per Standard Trade Practice must be not lower than 10% mark-up from the total landed costs.
Total Landed Cost equals the sum of Customs Value, Applicable Duty, and Other Taxable Charges.

For cases involving damage, obsolescence, spoilage, losses, or depreciation reflected in the inventory of the forfeited article/s, an adjustment must be supported by a certification.
The certification for condition-related adjustments must be issued by the assigned examiner.
A standard/reasonable percentage may be allowed for such condition factors depending on the facts of each case.

A canvass of the wholesale price of the forfeited article/s must be conducted for test checking the integrity of the redemption value arrived at.
The canvass must use at least three (3) establishments selling the same, like, or similar articles.
The canvass conduct must not exceed ten (10) days from the date of receipt of the request for computation.
If no establishment sells the same, like, or similar articles, a certification to that effect must be issued by the Customs Valuation Officer who made the canvass.

CMO 34-2002 and other customs orders, rules, and regulations, or parts thereof inconsistent with CMO 20-2008, are deemed repealed/amended accordingly.
The Order takes effect immediately.