Rules for Industry-Specific Customs Bonded Warehouses

Covers operations of industry-specific Customs Bonded Warehouses.
Applies only to ICBWs duly registered and authorized by the Bureau of Customs (BoC).

ICBWs are BoC-licensed facilities authorized to import under bond raw materials (excluding fibers, yarns, fabrics, and accessories for garment manufacture).
Raw materials are imported in the name/account of the ICBW for storage and eventual sale or transfer.
Transfers/sales must be to export producers, Customs Bonded Manufacturing Warehouses, or locators in ecozones/PEZA.

ICBWs authorized to import raw materials for specified export industries.
Initial industry groups include microelectronics, food products, motor vehicle parts/components, and raw materials for furniture/home furnishings.
Customs Bonded Warehouse Committee may amend industry group list subject to Customs Commissioner’s approval.

Licenses valid for 3 years, renewable for equal periods.
Renewal must be filed at least 3 months prior to expiry; failure results in deemed closure.
License specifies: industry group serviced, allowed raw materials with H.S. tariff lines, import volume limits, and allowed clients with corresponding quantities.
Industry associations are notified of ICBW license applications.
Adjustments to raw material types/quantities allowed upon Committee’s approval without extending license lifespan.
Existing customs regulations for bonded warehouses apply unless otherwise stipulated.

Importation limits strictly based on licensed raw materials, volume, clients.
Storage allowed up to nine (9) months from arrival, extendable by three (3) months by District Collector.
Prohibited shipments: fibers, yarns, fabrics, garment accessories; finished articles (except as manufacture components for export); unauthorized, excess, prohibited, or unlicensed regulated articles.

First offense: payment of due duties and taxes.
Second offense: payment plus one-month suspension.
Third offense: payment plus warehouse closure.
Violations counted within the 3-year license term.
Penalties are without prejudice to audit and monitoring actions by Customs units.

Transfer allowed upon filing warehousing entry with bond, processed under selectivity schemes.
Transfers without operational selectivity processed under Transshipment Permit.
No new transshipment permit if previous permit’s warehousing entry pending.
Transfers are subject to examination, appraisal, and bond posting.
Continuous customs guarding required during transfer until delivery acknowledged.

Withdrawals allowed without duties/taxes for sale/transfer to licensed export producers, PEZA locators, or bonded manufacturing warehouses.
Withdrawals must occur within original or extended storage period.
Domestic consumption withdrawals require prior approval and duty payment; must not exceed 30% of shipment.
Unauthorized domestic sale treated as violation.
Domestic sale approvals trigger license review and possible limitation or removal of authorized import articles.

Liquidation must occur within 30 days of sale/transfer/withdrawal, within 9 months or up to 1 year with extension.
Payment of duties/taxes due on non-exported imports after re-export time lapses.
Bonds are cancelled only after full liquidation of materials and entries.

Current CBTWs to be reviewed within 3 months to identify serviced industry group, allowed materials with H.S. lines, quantities, and clients.
CBTWs must convert to ICBWs within 3 months or face closure.
CBTWs governed by previous CAO 5-2002 during transition.

Modifies or amends all inconsistent Customs Administrative and Memorandum Orders accordingly.

The Order takes effect 15 days after publication in a newspaper of general circulation.