Rules on Public Customs Bonded Warehouses

Applies to Public CBWs that are duly registered and authorized by the Bureau of Customs (BOC) to operate.
Only applicable where the business of the port necessitates such warehouses.

Public CBW: A facility licensed by BOC to receive, store, and take custody of general cargoes under bond for purposes such as exportation, transfer to another CBW or ecozone/PEZA, or local consumption.
Cargoes must remain in the same state and condition as when imported.
Establishment and operation require processing of applications according to existing laws and documentary procedures.
Approval for establishment/operation is contingent upon a determination that the port requires such a facility, upon recommendation of the District Collector and Customs Bonded Warehouse Committee, and approval of the Commissioner of Customs.
Admission of imported articles into Public CBWs depends on certification of insufficient port space or lack of necessary facilities by arrastre operator and space/equipment availability by Public CBW operator.
Maximum storage period for imported articles in Public CBWs is one (1) year from arrival.

Transfers require filing a warehousing entry, processed under the Selectivity system along with posting required bond.
Where Selectivity system is unavailable, a Transshipment Permit is used, with warehousing entry filed within 5 days (extendable by another 5 days upon approval).
Regulated articles lacking proper clearance or import authority are not allowed transfer and are subject to seizure or forfeiture.
Prohibited articles are subject to immediate seizure and sanctions.
Transfers must be under continuous customs guard until acknowledged at the warehouse by customs personnel.

Withdrawals for local consumption require payment of duties and taxes.
Transfers to another CBW or ecozone/PEZA may be done without payment of duties but must be under bond and approved by the receiving warehouse’s operating division chief.
Transferring articles must fall within the receiving CBW’s authorization/license.
Subsequent transfers from the receiving CBW to another CBW are generally not allowed.
Transfer to ecozones/PEZA requires valid import authority issued by the designated authority; authenticity to be verified by the operating division chief.
Articles not withdrawn within one year shall be sold at public auction per Tariff and Customs Code provisions.

Liquidation of bonded imported articles must be conducted within 30 days from sale, transfer, or withdrawal, within the one-year storage limit.
Bonds can only be cancelled after full liquidation of materials and their corresponding customs entries.

Within 3 months from effectivity, the Bonded Warehouse Committee will review all existing Public CBWs for compliance.
Non-compliant Public CBWs may elect to convert to Industry Specific CBWs (per CAO 7-2002) or other CBW types not under moratorium, within 3 months.
Non-compliant warehouses that do not convert shall be deemed closed.

Customs seizure and public auction of imported goods violating provisions.
Administrative penalties per CAO 7-2002 and criminal sanctions under existing laws apply to importers, consignees, and CBW operators.
Customs officers allowing violations face administrative and criminal liabilities.

Authorized to issue additional rules and regulations to effectively implement this Order.

All inconsistent prior Orders, Memoranda, or Circulars are repealed or modified accordingly.

The Order takes effect after approval by the Secretary of Finance and 15 days post-publication in a newspaper of general circulation in the Philippines.