Scope
- Covers all warehousing shipments with bonds issued to guarantee importer obligations due to BoC.
General Provisions
- Bonds are issued by BoC-accredited surety companies, guaranteeing export or tax/duty payment obligations under specific TCCP provisions.
- Liquidation of warehousing entry occurs upon obligation performance; bond is cancelled upon full liquidation.
- Obligations may be performed by exportation within prescribed period or payment of taxes/duties.
- Surety company’s payment extinguishes importer’s obligations and grounds bond cancellation.
- Importer failure to perform obligations within prescribed period triggers applicable sanctions under Sec. 1508, TCCP.
- Operating Division to liquidate warehousing entries within 15 days (partial) or 30 days (complete) after Statement of Liquidation.
Performance by Exportation and Liquidation of Entry
- Importer must file Statement of Liquidation within 30 days after exportation, specifying warehousing entry and details of goods.
- Statement to be accompanied by supporting exportation documents.
- Operating Division retrieves documents from Warehouse Documentation and Records Division (WDRD) and verifies exportation with Export Division.
- Upon export confirmation, partial or full liquidation is conducted; partial liquidation entries are returned to WDRD.
- Bonds Division is informed of liquidation extent for record updates; importer and surety are copied.
Cancellation of Bonds
- Complete liquidation triggers Operating Division to forward documents to Bonds Division within 5 days for bond cancellation.
- Bonds Division Chief cancels bond within 5 days, notifying importer and surety company.
- Cancelled bond documents are forwarded to Liquidation and Billing Division for final liquidation review within 5 days.
- Notice of bond cancellation is posted publicly by Bonds Division; Operating Division and WDRD are notified.
- Bonds Division retains records of cancelled bonds and related documents.
Issuance of Demand Letter and Implementation of Sec. 1508, TCCP
- Demand Letter issued by Operating Division Chief and signed by District Collector when exportation is outside prescribed period or liquidation is delayed/nonexistent.
- Liquidation and Billing Division issues Demand Letter for discrepancies during final liquidation.
- District Collector ensures delivery and receipt of Demand Letter by importer.
- Non-payment within stipulated time leads to Sec. 1508 enforcement: withholding delivery of current/future importations.
Penalties and Surcharges
- Payment of taxes/duties required for exportation outside prescribed period.
- For late liquidation, surcharge of P1,000 or 2% per month of payable taxes/duties, whichever is higher, assessed from lapse date until submission.
Other Actions and Sanctions
- District Collector may recommend and initiate collection actions, including bond forfeiture, accreditation suspension/cancellation/non-renewal of surety companies.
- Chief, Collection Service, coordinates collection and legal service involvement.
Accountability
- District Collector responsible for effective implementation in jurisdiction.
- All Customs personnel must fulfill responsibilities under this Order.
- Violations subject to administrative penalties ranging from suspension to dismissal and possible criminal charges.
Repeal Clause
- Repeals or modifies inconsistent previous orders and regulations including CAO 5-91 provisions.
Effectivity Clause
- Order takes effect 15 days after publication in two newspapers of general circulation.