Law Summary
Definitions of Key Terms
- Includes definitions for Act, Articles, Container, Customs, Customs Territory, Domestic Articles, Foreign Articles, Person, Point of Entry or Exit, Customs Clearance Area, Registered Enterprise, Rules and Regulations, Resident, Secured Area, ZAMBOECOZONE Authority, and Zone.
- Clarifies important distinctions, e.g., between domestic and foreign articles, persons, and the Secured Area within the Zone.
Authorities and Responsibilities
- ZAMBOECOZONE Authority manages and operates the Secured Area per legal mandates and its own manual.
- Customs supervises admission and removal of articles, maintains record-keeping, and establishes necessary offices and checkpoints.
- Entry and removal of goods require Customs Written Permission, with checkpoints and Customs Clearance Areas established jointly.
Audit, Search, Seizure, and Arrest
- Joint audits by ZAMBOECOZONE officials and Customs for verification of enterprise accounts.
- Search of persons, vehicles, cargoes, and premises authorized under constitutional safeguards.
- Seizure of prohibited or excluded articles found during inspections.
- Arrest authority vested jointly with clear official conduct requirements and protection of legal rights.
Record-Keeping Requirements
- Registered Enterprises must maintain detailed records of all articles brought in, moved, or removed from the Secured Area for five years.
- Impairment of records may lead to suspension of the enterprise's operating permit.
Handling of Vessels, Aircraft, and Vehicles
- Arrival, clearance, and bonding procedures aligned with national customs regulations.
- Carriers transshipping foreign articles must secure bonds not less than 50,000 PHP.
Importation Provisions
- Free tax and duty importation of raw materials, capital goods, and equipment allowed upon proper permits.
- Removal out of the Zone subjects articles to payment of applicable taxes and duties.
Exportation and Transshipment Procedures
- Articles admitted from Customs Territory into the Zone and re-exported classified as exported.
- Articles transferred to Customs Territory from the Zone are treated as imports.
- Container marking requirements for shipments to and from the Zone.
Admission and Receipt of Articles
- Prohibited articles banned from admission; non-compliance with permits treated as illegal importation.
- Permits required and admission procedures standardized with Customs review and optional examination.
- Exemptions for personal effects, small-value articles, articles for export, and certain domestic articles.
Operation and Inventory Requirements
- Registered Enterprises must file annual physical inventories reconciled with ZAMBOECOZONE and Customs reports.
- Country of origin rules apply for articles manufactured in the Zone.
- Domestic articles losing identity treated as foreign articles when transferred to Customs Territory.
Transfer of Articles From the Secured Area
- Articles can be transferred for export, transshipment, or consumption under existing rules.
- Permits generally required for transfer, with specific exemptions.
- Customs assesses duties on transferred articles according to classification and valuation rules.
- Temporary transfers for services outside the Zone allowed with time limits and return requirements.
Exportation From the Zone
- Export procedures include direct export or transshipment through Customs Territory with Customs supervision.
- Special container markings required.
- Re-importation rules for exported articles specified.
Articles Used on Vessels or Aircraft
- Duty-free delivery of articles for use/consumption on board authorized under Customs laws.
- Container marking and transfer procedures apply.
Delivery and Removal of Articles
- Vehicles carrying foreign or mixed articles must be sealed and inspected.
- Customs controls ensure articles are properly removed and accounted for.
- Timeframes for physical removal are set with refund or forfeiture provisions.
Return of Articles Without Entry Into Commerce
- Procedures to return articles temporarily transferred to the Zone without duty payment.
- Duties refunded, and responsibility reassumed when articles return correctly.
Transitory Provisions
- Until secure perimeter is established, interim customs supervision applies within enterprises' premises.
Enforcement and Penalties
- Violations of the Act or this Order subject to penalties under the Tariff and Customs Code.
- Effective 15 days after publication.