Title
Supreme Court
Guidelines on Customs Surcharge Imposition
Law
Boc Customs Administrative Order No. 06-2014
Decision Date
Oct 20, 2014
The BOC Customs Administrative Order No. 06-2014 mandates the imposition of surcharges for misclassification, undervaluation, and misdeclaration in customs entries, establishing specific percentage thresholds and penalties while emphasizing that surcharges are non-negotiable and cannot be waived.

Law Summary

Amount of Surcharge for Customs Violations

  • Surcharge imposed according to Section 2503 of the Tariff and Customs Code of the Philippines (TCCP).
  • Misclassification:
    • If percentage difference is 10% to 20%, impose a one-time surcharge equal to the difference in customs duty.
    • If exceeds 20%, impose two times the difference in customs duty as surcharge.
  • Undervaluation/Misdeclaration in weight, measurement or quantity:
    • If percentage difference is 10% to 30%, impose surcharge of two times the difference in customs duty.
    • More than 30% constitutes prima facie fraud evidence, subject to seizure and penalties under Section 2530 TCCP.

Computation of Percentage Differences

  • Determination formulas for each type of discrepancy:
    • Undervaluation: (Duty using found valuation – Duty using declared valuation) ÷ Duty using found valuation.
    • Misclassification: (Duty using found classification – Duty using declared classification) ÷ Duty using found classification.
    • Misdeclaration in weight, measurement or quantity: (Duty using found weight/measurement/quantity – Duty using declared weight/measurement/quantity) ÷ Duty using found weight/measurement/quantity.

Mandatory and Non-Mandatory Imposition of Surcharge

  • Imposition is mandatory except:
    • Misclassification based on advance tariff classification ruling by Tariff Commission that was not reversed at time of entry but subsequently reversed before final liquidation.
    • Errors discovered before payment involving:
      • Clerical errors in invoice or entry.
      • Errors in weight, measure or gauge certified under penalties of falsification/perjury by surveyor or examining official.
      • Errors in distribution of charges on invoices certified similarly.

Non-Compromise and Enforcement of Surcharges

  • Surcharges under Section 2503 TCCP cannot be compromised or waived.
  • Good faith of importer is not a valid defense against surcharge imposition.

Effectivity of the Order

  • Order takes effect immediately upon publication in a newspaper of general circulation or Official Gazette.
  • Copies are to be deposited to the UP Law Center.

Approved by Commissioner John P. Sevilla and Secretary of Finance Cesar V. Purisima.


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