Law Summary

SECTION 1: Amendment to Section 1411

• Explanation: This section amends the provisions regarding rewards for individuals who provide information about fraud against customs revenue.

• Key Definitions:

  • Informant: Any person (excluding customs officers, employees, or public officials) who provides information on customs fraud.
  • Customs Revenue Fraud: Any act intended to evade customs duties, taxes, or other levies imposed by law.

• Important Requirements/Procedures:

  • Informants must provide definite information leading to:
    • Recovery of customs revenue.
    • Conviction of the guilty party.
    • Imposition of surcharges, fines, penalties, or forfeiture of property as outlined in Section 1363 of the Revised Administrative Code.
  • The Insular Collector of Customs, with departmental approval, is tasked with creating necessary regulations for enforcement.

• Reward Schedule:

  • 50% of surcharges or fines collected (judicial or administrative).
  • 50% of additional revenue recovered due to the informant's information.
  • 50% of compromise amounts if an offender chooses to settle and the compromise is accepted by the Insular Collector.
  • 50% of administrative fines imposed in lieu of forfeitures when goods are released.
  • 50% of proceeds from public sales of property after deducting specified charges.

• Reporting Obligations:

  • All Bureau of Customs employees and vessel operators must report information on customs fraud without delay to a Collector of Customs.

• Funding for Rewards:

  • An appropriation from current collections of surcharges, fines, penalties, and proceeds from sales of forfeited goods is established to pay rewards.

SECTION 2: Effectivity

• Explanation: This section states the effective date of the Act.
• Timeframe:
  • The Act takes effect upon its approval, which occurred on November 24, 1930.

Key Takeaways

• The amended Section 1411 provides a structured reward system for informants reporting customs fraud.
• Rewards are substantial, with a maximum cap of ten thousand pesos.
• There is a clear obligation for customs personnel and vessel operators to report any suspected fraud.
• The Act is effective immediately upon approval, ensuring prompt implementation of its provisions.