Guidelines on BOC fines and redemption values

The guidelines implement Section 2307 of the TCCP on settlement and redemption involving seizure and forfeiture.
The order ties its implementation to the functions of the relevant BOC divisions, services, groups, or offices existing under Executive Order No. 127 and relevant laws and executive issuances.
The guidelines provide a consistent framework for computing and/or determining both:
- the fine imposable on seized goods, and
- the redemption value of forfeited goods.

The order aims to give meaning and substance to Section 2307 of the TCCP in relation to the BOC’s internal functions under Executive Order No. 127.
The order establishes a consistent and transparent system and procedure for computing/determining the fine and redemption value for settlement and redemption of seizure cases.
The order is intended to generate more revenues for the government.
The guidelines govern the computation and/or determination “pursuant to Section 2307 of the TCCP” for settlement and redemption.

The computation and/or determination of the fine imposable and redemption value is required for the settlement of any seizure case and the redemption of forfeited goods.
The computation/determination begins with an initial stage by the District Collector.
A separate review mechanism applies during the Commissioner’s Office review of a favorable recommendation, and while the seizure case is pending appeal at the Commissioner’s Office.
The order applies to processes handled by the BOC offices tasked with valuation, assessment, legal disposition, and approvals.

Initially, the District Collector computes and/or determines the fine for settlement of the seizure case and the redemption value for forfeited goods.
The District Collector shall perform the computation/determination through the Auction and Cargo Disposal Division (ACDD) or the appropriate assessment office or equivalent unit of the port concerned.
The District Collector shall recommend the computed/determined fine or redemption value for approval by the Commissioner of Customs.
During the Commissioner’s Office review of the favorable District Collector recommendation for settlement/redemption, or while the case is pending appeal at the Commissioner’s Office, the Valuation and Classification Division (VCD) computes/determines the fine or redemption value.
The VCD review during that stage must be duly approved by the Director of the Import and Assessment Service (IAS) and duly noted by the Deputy Commissioner of the Assessment and Operation Coordinating group (AOCG).

The appropriate offices must consult Customs valuation databases in computing and/or determining the fine and redemption value.
The appropriate offices must comply with Customs Memorandum Order (CMO) No. 34-2002 in the computation and/or determination of the fine and redemption value for seizure settlement/redemption cases.
The appropriate offices must also comply with CMO No. 9-2005 in the same computation/determination for settlement/redemption purposes.
The order treats compliance with these requirements as part of the computation/determination process handled by the BOC offices.

The case folder for a seizure case subject of a favorable recommendation by the District Collector for settlement or redemption shall be received by the Legal Service.
The Legal Service must immediately transmit the case folder to the VCD for review of the recommended fine or redemption value.
The VCD shall either:
- concur with the recommended fine/redemption value, or
- recommend a higher fine/redemption value, supported by a supporting basis.
The VCD shall submit its recommendation to the IAS Director for approval.
The IAS Director shall submit the recommendation to the Deputy Commissioner for AOCG for due notation.
The Deputy Commissioner for AOCG shall return the case folder to the Legal Service for proper disposition.
The Director of the Legal Service shall prepare the Disposition Form containing the recommendation and attached appropriate documents for clearance and counter-signature by the Deputy Commissioner for Revenue Collection Monitoring Group (RCMG).
The disposition then proceeds to approval and signature by the Commissioner.

While the seizure case is pending appeal from a decision of forfeiture by the District Collector, settlement or redemption may be allowed.
When settlement or redemption is allowed during pendency, the Legal Service or the Commissioner’s Office must refer the case folder to the VCD for computation and/or determination of the fine or redemption value.
The VCD shall submit its recommendation to the IAS Director for approval.
The IAS Director shall submit the recommendation to the Deputy Commissioner for AOCG for due notation.
The Deputy Commissioner for AOCG shall return the case folder to the Legal Service or the Commissioner’s Office for proper disposition.

All orders, rules and regulations inconsistent with BOC Customs Memorandum Order No. 26-2009 are repealed or modified accordingly.