Law Summary
Procedural Requirements for Conversion
- Customs bonded warehouse (CBW) operators must submit a written request for payment of duties and withdrawal of goods.
- The request must state valid reasons for conversion from warehousing to consumption.
- Approval is required from the Customs Bonded Warehouse Committee, recommended by the operating division and District Collector concerned.
- Purpose includes reviewing the CBW license and adjusting authorized imports or removing items based on domestic sales.
Restrictions on Withdrawal for Domestic Consumption
- Withdrawal for domestic consumption is limited to a maximum of 30% of any particular shipment, except for Public and Private CBWs.
Assessment and Clearance Procedures
- Formal Entry Division or an equivalent unit shall conduct assessment and appraisal of these converted transactions.
- Clearance by the Valuation and Risk Information System-Operations Control Office (VRIS-OCOM) is mandatory before completion.
Supersession and Effectivity
- This order supersedes Customs Memorandum Order No. 1-2005.
- Effective immediately upon issuance on June 5, 2008.
Legal Authority and Adoption
- Issued and signed by Commissioner Napoleon L. Morales.
- Ensures enforcement with appropriate administrative oversight for compliance with customs regulations.