Customs Valuation Protest Procedures

BOC Memorandum Order No. 27-99 is issued pursuant to Section 608, in relation to Sections 201, 2308, 2313, and 2315 of the Tariff and Customs Code of the Philippines, as amended.
BOC Memorandum Order No. 27-99 also cites Customs Administrative Order No. 2-99.
Republic Act No. 8181 amends Section 201 of the Tariff and Customs Code, which is incorporated by reference for valuation meaning.

BOC Memorandum Order No. 27-99 establishes clear and transparent procedures for resolving protest cases arising from valuation issues.
The procedures are designed to guide how protests are filed, heard, decided, reviewed, and appealed.

The Order covers all shipments in all ports.
The Order covers protests only where the importer, having paid the duties and taxes, contests the valuation decision of the Collector of Customs.
The Order excludes shipments subject to Comprehensive Import Supervision Service (CISS) during the effectivity of CISS, which continue under existing rules governing the matter.
For CISS-covered shipments, references to value are construed to mean the dutiable value under Section 201 of the Tariff and Customs Code of the Philippines, as amended by Republic Act No. 8181, implemented by Customs Administrative Order No. 2-99.

After the final determination of the Customs Value by the Collector of Customs, the importer adversely affected must file a formal protest to dispute the assessment.
The formal protest must be filed through the Law Division of the port concerned or its equivalent unit.
The importer must file the formal protest at the time when payment of the amount claimed to be due the government is made and/or upon receipt of the notice of the decision by the Collector; in any case, it must be filed within fifteen (15) days thereafter.
The formal protest must state the reasons for the protest and must be accompanied by payment of the corresponding docket fee, whose rate is fixed by a Customs Administrative Order.
The Collector must form a panel of experts to hear the case.

The panel must be composed of:
- a hearing officer from the law division; and
- a COO V and a COO III from the assessment unit.
The Collector must ensure that those involved in the initial assessment of the subject importation are not chosen as members of the expert panel.
The panel must hear all parties to the case.
The panel is authorized to issue necessary notice of hearings, subpoenas, and other interlocutory orders, and to receive evidence from all parties.
The panel must terminate the proceedings within thirty (30) days from the first hearing and recommend a decision to the Collector of Customs for approval through the Chief of the Law Division.
If meritorious reasons prevent resolution within the thirty (30) days, the panel must request additional time not exceeding thirty (30) days to resolve the case.

The Collector must render a final decision on the Protest within fifteen (15) days from receipt of the panel’s recommended decision.
The Collector must notify the importer in writing of the decision.
If the Collector’s decision is adverse to the government, the decision and the entire case records are automatically elevated to the Commissioner of Customs for automatic review within five (5) days from promulgation.
If the importer is not satisfied with the Collector’s decision, the importer may file a notice of appeal within fifteen (15) days after notification in writing by the Collector of the action or decision.
The notice of appeal must be filed with the Collector, with a copy furnished to the Commissioner of Customs.
Upon appeal or submission for review, the Collector must immediately transmit all records of the protest together with the assailed decision to the Commissioner, who shall approve, modify, or reverse the Collector’s action and take necessary steps to give effect to the decision.

The appeal to the Commissioner of Customs is perfected only upon:
- filing of the notice of appeal;
- payment of appeal docket fee in accordance with prescribed rates; and
- a Memorandum of Appeal (at the option of the appellant) filed within fifteen (15) days from receipt of the notice of decision.
Regular appeal and automatic review are deliberated by a permanent board of three (3) members created by the Commissioner.
The board must be chaired by a lawyer from the Appellate Division, Legal Service and must include two (2) Valuation Experts from the Import and Assessment Service, filling positions on a rotation basis.
The board must recommend a decision to the Commissioner through proper channels.
The Commissioner must render a decision within thirty (30) days from receipt of the records from the Collector and must notify the appellant or aggrieved party in writing.
If the Commissioner decides in favor of the government and no appeal is perfected within the reglementary period with the Court of Tax Appeals, the Commissioner’s decision becomes final and executory.

If the Commissioner renders a decision adverse to the government, the decision is elevated to the Secretary of Finance for automatic review.
Records must be forwarded to the Secretary of Finance within five (5) days from promulgation.
If within thirty (30) days from receipt of the record of the case the Commissioner renders no decision, the case is treated as the Commissioner upheld the Collector’s decision.
If the Commissioner’s outcome is adverse to the government, the case is elevated to the Secretary of Finance for automatic review in accordance with the same rule on elevation.
The Secretary of Finance’s decision becomes final and executory if no appeal is perfected within the period provided for appeal.
If the importer is not satisfied with the Secretary of Finance’s decision, the importer may appeal to the Court of Tax Appeals within thirty (30) days from receipt of notice of such decision.

Separability clause: If any part or parts are declared unconstitutional by the courts, the remaining provisions remain in full force and effect.
Repealing clause: All Orders, Memorandums, Circulars, or parts thereof that are inconsistent with BOC Memorandum Order No. 27-99 are deemed repealed and/or modified accordingly.