Title
Revitalizes Bureau of Customs, amends Tariff Code
Law
Republic Act No. 7651
Decision Date
Jun 4, 1993
Republic Act No. 7651 amends certain sections of the Tariff and Customs Code in the Philippines, addressing the disposition of imported articles, the process of import entry, abandonment of imported articles, consequences of abandonment, detention of property, review by the Commissioner of Customs, undervaluation and misdeclaration in entry, sale of property in customs custody, issuance and revocation of customs broker certificates, and miscellaneous provisions.

Persons Authorized to Make Import Entry

  • Import entries must be filed within 30 days (non-extendible) from last package discharge.
  • Authorized filers: importer (bill of lading holder), licensed customs broker with authorization, or agent/attorney-in-fact.
  • Non-importer filers must have importer declare under oath the entry’s accuracy.
  • Importer’s sworn statements serve as prima facie evidence for violations if unlawful importation is found.

Abandonment: Kinds and Effects

  • An imported article is deemed abandoned if the owner/importer consents in writing or fails to file entry within 30 days or to claim within 15 days after notice.
  • Abandonment results in the renunciation of all property rights and interests by the owner/importer.

Abandonment of Imported Articles: Ownership and Reporting

  • Abandoned articles automatically become government property.
  • Owner/importer remains liable for criminal offenses related to the abandoned import.
  • Customs or government employees failing to report abandoned articles within 24 hours face penalties under Section 3604 paragraph 1.

Warrant for Detention of Property and Cash Bonds

  • Upon seizure, a warrant for property detention is issued by the Collector.
  • Release upon filing cash bond approved by the Commissioner, conditioned on payment of appraised value and potential fines.
  • No bond release when there is prima facie fraud evidence or prohibition by law of the imported articles.
  • Release under bond does not exempt from criminal liability.

Appeal and Review Procedures by the Commissioner

  • Aggrieved parties may appeal Collector’s decisions within 15 days after written notification.
  • Commissioner reviews and may approve, modify, or reverse decisions.
  • Automatic appeal to Commissioner for seizures adverse to government within 5 days.
  • If Commissioner affirms or delays decision, cases exceeding P5 million value escalate to Secretary of Finance for final decision.
  • Release of seized articles requires written confirmation from Commissioner.

Undervaluation, Misclassification, and Misdeclaration Penalties

  • If duties are undervalued, misdescribed, or misclassified by 10% or more, surcharges apply: minimum difference to twice the difference.
  • Undervaluation or misdeclaration above 30% is prima facie evidence of fraud, penalized under Section 2530.
  • Misdeclared or undeclared articles found are forfeited to the government.
  • Intentional misdeclarations subject importer to penalties under Section 3602.

Property Subject to Sale by Customs

  • Customs property subject to sale includes:
    • Abandoned articles
    • Warehoused articles not withdrawn or duties unpaid within the prescribed time
    • Seized property (except contraband) after legal proceedings establish liability
    • Articles subject to valid customs liens after allowed payment period

Issuance, Revocation, and Suspension of Customs Broker Certificates

  • Certificate issued to candidates who pass exams or meet prior qualifications.
  • Certificates display registrant’s name, serial number, signatures, and official seal.
  • Complaints against brokers investigated by the Board and findings submitted to the Civil Service Commissioner.
  • Filing entries for unlawful shipments with fictitious owners results in smuggling liability.
  • Customs brokers involved in violations face license revocation.

Repeal, Rulemaking, Separability, and Effectivity

  • Section 1803 of the Tariff and Customs Code is repealed.
  • Secretary of Finance empowered, upon recommendation, to promulgate implementing rules.
  • Invalid provisions do not affect the validity of the remaining law.
  • Conflicting laws and regulations repealed or amended.
  • The Act becomes effective 15 days after publication in Official Gazette or two national newspapers, whichever is earlier.

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