Amendments to Tariff and Customs Code

Importations must undergo formal or informal entry except those duty-free under specific provisions.
Commercial articles valued at P2,000 or less and personal effects not for resale may use informal entry when duties are collectible.
The Commissioner of Customs may require formal entry regardless of value to protect domestic industry or revenue.
Formal entries can include warehousing or immediate exportation under required guarantees.
Formal entries must be supported by letter of credit or verifiable payment documents.

Customs appraisals, classifications, or returns are generally final unless:
- Within one year after payment correcting errors with approval.
- Within 15 days for reappraisal if values are deemed low.
- Upon protests filed timely by interested parties.
- Upon compliance audit demands by the Commissioner.

After three years from final payment, entries are final unless fraud, protest, or compliance audit justifies reconsideration.
Tentative liquidations are exceptions and not final.

To prevent undervaluation, the Commissioner of Customs may acquire imported goods at declared customs value plus duties paid.
Payment for acquisition must be made within ten working days upon issuance of warrant.
Importers dissatisfied with acquisition decisions may appeal first to the Secretary of Finance, then to the Court of Tax Appeals.
If no appeal or reaffirmation occurs, the goods may be sold by Customs.
The provision does not limit other Customs powers or liabilities of importers.

Civil and criminal actions on Customs matters are brought in the name of the Philippine government and conducted by Customs officers.
No civil or criminal action for recovery or enforcement of customs laws can proceed without Commissioner approval.

Surplus proceeds after satisfaction of charges remain with the Collector for 10 days for owner claims.
Unclaimed amounts are deposited in a special trust fund to finance compulsory acquisition of goods.
After one year, unused funds (except for next year’s acquisitions) revert to the Bureau of Treasury as customs receipts.

Importers must keep all importation records, books of accounts, commercial data, and payment records for three years at their principal place of business.
Customs brokers must keep copies of related records for transactions they handle.
The format is prescribed by Customs regulations.

Importers and brokers must allow Customs officers access during office hours to audit, inspect, verify, and investigate records.
Customs officers may copy relevant documents and must present evidence of authorization before entry.
Importers must provide reasonable facilities and assistance.
Non-compliance may lead to judicial enforcement and contempt penalties.
Denial of access presumes transaction value inaccuracies and can trigger reassessment and criminal/administrative sanctions.

Audits may be triggered by computer-aided risk management based on customs revenue, rates, compliance history, and revenue risk.
Audits may also occur due to detected errors or at importer request.
Brokers may be audited to confirm client audits or fill information gaps.

Documents in foreign languages submitted to Customs must be accompanied by translations in an official Philippine language.

Customs maintains a database of audits including company structure, key officers, importations, privileges, penalties, and risk categories.

Customs officials committing offenses such as extortion, unlawful demand/receipt of fees, neglect of duty, collusion, aiding fraud, false entries, failure to report violations, unauthorized settlements, or misuse of confidential information face:
- Fines from P5,000 to P50,000
- Imprisonment from 1 to 10 years
- Perpetual disqualification from public office and voting

Failure to keep proper records or deny Customs access results in:
- Fines from P100,000 to P200,000
- Imprisonment from 2 years and 1 day to 6 years
Administrative sanctions including holding release of imports may also be imposed.

Post-entry audits revealing duty and tax deficiencies lead to penalties based on culpability:
- Negligence: fine 0.5 to 2 times revenue loss
- Gross negligence: fine 2.5 to 4 times revenue loss
- Fraud (knowingly intentional): fine 5 to 8 times revenue loss plus 2 to 8 years imprisonment
Decisions on penalties may be appealed pursuant to procedural provisions.

Section renumbering for clarity and organization.
Secretary of Finance empowered to issue implementing rules and regulations.
Repeal of inconsistent existing laws and issuance of effectivity clause (15 days post-publication).