Title
Amendment to Customs Settlement Procedures
Law
Executive Order No. 38
Decision Date
Aug 6, 1986
An amendment to the Tariff and Customs Code of the Philippines empowers the District Collector of Customs to settle seizure cases, expediting revenue collection and the release of seized cargoes, through the acceptance of fines or payment of domestic market value.
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Conditions for Settlement of Seizure Cases

  • Settlement by payment of a fine or redemption of the forfeited property is allowed except when there is proven fraud.
  • Eligible parties to offer settlement: owner, importer, exporter, consignee, or their authorized agent.
  • The fine is imposed by the District Collector.
  • For forfeited property, payment must be for the domestic market value of the seized article.
  • The Commissioner may also accept settlement on appeal under similar terms.

Payment and Release Procedure

  • Upon settlement approval, payment must be within the amount determined by the District Collector.
  • Payment range: minimum 20% to maximum 80% of the landed cost for imported articles or F.O.B. value for exported articles.
  • Alternatively, payment for the domestic market value if the property is forfeited.
  • Once payment is made, the seized property is released immediately.
  • All liabilities related to the offense leading to seizure are discharged.
  • Any previous cash deposits or bonds related to the property are also considered discharged.

Exclusions to Settlement

  • Settlement by payment or redemption is not allowed if the importation is absolutely prohibited by law.
  • Also disallowed if releasing the property would contravene any legal provision.

Repeal and Effectivity

  • All inconsistent laws, rules, regulations, and issuances with this Executive Order are repealed or modified accordingly.
  • The Executive Order takes effect immediately upon issuance.

Legal and Administrative Signatories

  • Signed and promulgated by President Corazon C. Aquino.
  • Administrative issuance carried out through the Executive Secretary Joker P. Arroyo.

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