Guidelines on Customs Surcharge Implementation

Ask AI

BOC CUSTOMS MEMORANDUM ORDER NO. 64-93: Guidelines on Customs Surcharge Implementation

What do you want to know about the law?
Ask AI quickly gives answers based only on the current context to avoid mistakes. Always verify with the original text.

New Chat Started

Ask AI

Title Source: Supreme Court: Guidelines on Customs Surcharge Implementation

Law: Boc Customs Memorandum Order No. 64-93

Decision Date: Dec 8, 1993

Guillermo L. Parayno, Jr., Commissioner of Customs, establishes guidelines for the uniform imposition of surcharges on imported goods due to undervaluation, misclassification, and misdeclaration, detailing specific percentage thresholds and conditions for non-imposition to enhance compliance with the Tariff and Customs Code.

Law Summary

Defining Percentage Difference

Percentage difference calculation follows Customs Memorandum Order No. 23-84 (March 12, 1984)
Used to determine surcharge amount related to undervaluation, misclassification, or misdeclaration

Surcharge Imposition Guidelines

Collector of Customs imposes surcharge based on percentage difference:
- For Misclassification:
  - 10% to <20% difference: single surcharge equal to customs duty difference
  - 20% to <30% difference: double surcharge of customs duty difference
- For Undervaluation / Misdeclaration in Weight, Measurement, or Quantity:
  - 10% to <20% difference: single surcharge equal to customs duty difference
  - 20% to <30% difference: double surcharge of customs duty difference
  - 30% difference: presumption of fraud leading to seizure under Section 2530 of the Code

Circumstances of Non-Imposition of Surcharge

Misclassification:
- No surcharge if classification is based on valid rulings by government agencies (BOC Tariff Circulars, NEDA, Tariff Commission, DOF, Board of Investment)
- Article description must match ruling upon examination and be identified in tariff codes
Undervaluation:
- No surcharge if declared value follows:
  - Officially approved values (Customs Circulars, RVCI, Alert Info)
  - Established values recognized by Customs
  - Values that are no longer current, different brand, or different specifications but justified by differences
Errors exempt from surcharge include:
- Manifest invoice or entry errors
- Errors in weight, measurement, or gauge returns
- Errors in charge distributions
- Provided errors involve no legal questions and verified under penalties by officials
Other discretionary cases:
- Port Collector can decide not to impose surcharge case-by-case with notification to Customs Commissioner per Section 3501

Legal Modifications and Repeal

Inconsistent laws, regulations, and orders are modified or repealed to align with this order

Effectivity

The order is effective immediately upon adoption on December 8, 1993

Authority

Signed by Commissioner Guillermo L. Parayno, Jr.

END