Title
Guidelines on Post Entry Modification of SAD
Law
Boc Customs Memorandum Order No. 53-2010
Decision Date
Dec 8, 2010
The BOC Customs Memorandum Order No. 53-2010 establishes detailed procedures for the post-entry modification and cancellation of electronically lodged import declarations, aiming to streamline customs processes, expedite cargo releases, and facilitate trade while outlining the necessary documentation and payment protocols for additional duties and taxes.
post entry
modification
customs law

Legal basis and related regulations

  • The order is issued to implement BOC Customs Memorandum Order No. 27-2009 on post entry modification of SAD (PMS) and SAD cancellation (SC).
  • The order provides procedures for e2m Customs System post-modification/cancellation of electronically lodged import declarations in the form of Single Administrative Document (SAD).
  • The order supplements procedures and references CMO 4-99 on refund of cash bond posted on tentatively released shipments.
  • The order allows tentative release under CMO No. 45-2009 if the importer does not agree with re-assessment.
  • The order references Section 2308 of the TCCP, as amended as a remedy related to re-assessment disputes.
  • The order links certain cancellation needs to a referenced rule on short shipment: CMO No. _________ on Short Shipment.

Objectives and governing policy

  • The order establishes procedures for post modification/cancellation of electronically lodged SAD within the e2m Customs System.
  • The order provides a procedure for payment of additional duties & taxes resulting from post modification of SAD, if necessary.
  • The order is intended to expedite releases of legitimate cargoes upon arrival in the Philippines.
  • The order is intended to facilitate trade.

Coverage and scope of transactions

  • The order covers the post modification/cancellation of electronically assessed import declarations in the form of SAD.
  • The order specifically governs processes under Post Modification of SAD (PMS) and SAD Cancellation (SC).
  • The order defines PMS stages as applying to shipments that are already assessed but not yet released, and shipments already released, within the Customs release pipeline (as described below).

Definitions and core concepts

  • Post Modification of SAD (PMS) is a process used when it is necessary to revise data in the SAD.
  • PMS includes post assessment and post entry modification.
  • Post assessment is the stage where the shipment is already assessed but not yet released from Customs (e.g., Green Lane entries).
  • Post entry is the stage where the shipment has already been released from Customs (e.g., Tentatively-Released Entries).
  • SAD Cancellation (SC) is a process used when it is necessary to revise data in the assessed SAD that cannot be done under PMS.

Rules on PMS: limits, taxes, and documents

  • The Tax Exemption Certificate declared in the original SAD continues to apply in calculating the allowed exemption during PMS.
  • Additional duties & taxes calculated due to PMS must be settled at the In-House Bank using the Cash Payment Module in the e2m Customs.
  • The e2m Customs System sends a release instruction to the port operator/arrastre/CY-CFS only once upon payment of the assessed duties & taxes due on the import declaration.
  • Refund of excess duties & taxes resulting from PMS must be coursed through the Tax Credit Office following existing procedures.
  • Refund of cash bond posted on tentatively released shipments resulting from PMS must follow paragraph 3.2 of CMO 4-99.
  • All data in the SAD can be modified except the following items, for which revision requires cancellation:
    • Customs Office Code (Box at the top right hand corner).
    • Model of Declaration/General Procedure Code (Box 1).
    • Importeras Reference Number/TIN No. (Box 8).
    • Declarantas Reference Number/TIN No. (Box 14).
    • Registry/Manifest Number (Box 18).
    • Bill of Lading Number (Box 40a).
    • Type of Package (Box 31).
    • Number of Packages (Box 31 & Box 6).
    • Gross Weight (Box 35).
    • Container Reference Numbers (Box 31).
    • Warehouse (Box 49).
    • All entries or data in the Attached Document Page.
    • All entries or data in the Terms of Payment (TOP) Page.
  • Necessary revision of the excluded PMS data must be covered by cancellation using an appropriate request (Annex A).
  • For Type of Package / Number of Packages / Gross Weight: cancellation is not necessary under a short shipment framework referenced as CMO No. _________ on Short Shipment; the number of packages and/or gross weight can be modified in the Inspection Act of the SAD.
  • The ASYCUDA Post-Entry Revision Form is discontinued for post-entry modification; the e2m post modification of SAD form must be used (Annex B).

Documents required for PMS by case

  • For correction of data encoded by the declarant (importer/customs broker) in the e2m Customs system:
    • A Letter Request addressed to the District Collector must identify the data in the SAD that needs correction, and must state the reasons and basis for correction (Annex C).
  • For Tentative Release:
    • A copy of VCRC or CVCRRC Resolution, as the case may be.
    • A Prepared Discrepancy Report (D/R) (Annex D).
  • For shipments subject to adjustment of either value and/or modifiable Net Weight and/or classification:
    • For an Alert Order, the documentary set must include:
      • Lifting of Alert Order.
      • The result of Magna-Scale (if goods are dutiable by weight).
      • A report on the result of physical examination.
      • A VRIS printout and/or other value info references, if necessary.
      • Literature/brochure and/or Tariff Commission Ruling, MSDS, chemical analysis, if available.
      • A Prepared Discrepancy Report (D/R).
    • For decisions rendered by the Law Division, the documentary set must include:
      • A copy of the approved Decision or Order.
      • A Prepared Discrepancy Report (D/R).
    • For other cases initiated by COO III/COO V, Chief FED and other offices:
      • A VRIS printout and/or other value info references, if necessary.
      • Literature/brochure and/or Tariff Commission Ruling, MSDS, chemical analysis, if available.
      • A Prepared Discrepancy Report (D/R).
  • A Discrepancy Report (D/R) is no longer required when the percentage discrepancy is less than 10%.

Rules on SC: effects, forms, and required documents

  • SAD cancellation applies when revision of assessed SAD data cannot be done under PMS.
  • The original Import Entry & Internal Revenue Declaration (IEIRD) must be retained as the original working copy.
  • Electronic re-lodgement of a new SAD to replace the cancelled SAD is necessary to clear the goods/shipment from Customs.
  • Cancellation of the SAD reverts the status of attached documents, including:
    • Import Entry Declaration (IED) for Advance Duties.
    • The license, clearance or permit.
    • The Tax Exemption Certificate.
    • The Tax Debit Memo.
  • If the SAD has already undergone final assessment by COO V and other settlements modes (OSM) has been completed, payments debited from the importer’s account cannot be automatically refunded; the importer must follow the regular refund process.
  • The ASYCUDA Post-Entry Revision Form for post-entry cancellation is discontinued; the e2m SAD cancellation form must be used.
  • Documents required for SC include:
    • For change of consignee:
      • A Letter Request addressed to the District Collector stating the reason for the change and showing it is duly approved by the District Collector (Annex C).
      • An affidavit of disclaimer of ownership.
    • For change of customs broker:
      • A Letter Request addressed to the District Collector stating the reason for the change and showing it is duly approved by the District Collector (Annex C).
    • For other non-modifiable data:
      • A letter request addressed to the District Collector identifying the data in the SAD needing correction and stating the reason and basis for correction (Annex C).

Procedural workflow for PMS and SC

  • For PMS correction of data encoded in e2m Customs system (including referred item 3.1.10.1):
    • The Importer/Customs Broker must submit to the Office of the District Collector the original IEIRD or VASP-SAD print-out (for SGL entry) and the necessary documents required under applicable instances.
    • The District Collector or designated official must refer the letter request to the Division Chief and Section Chief of the concerned office for appropriate action.
    • COO III and COO V must review the request; if inadequate and modifiable, they must prepare the e2m post modification form (Annex B), then forward it to the Division Chief for evaluation/action.
    • If the Division Chief concurs, the documents are transmitted to the District Collector for approval/disapproval.
    • Upon District Collector approval, COO V must access the e2m system, amend the SAD, reflect amendments and reasons in the Inspection Act, print the modified SAD, and attach it to the original import documents.
  • If PMS results in no additional duties and taxes:
    • The Section concerned forwards the entire documents to the Liquidation and Billing Division (LBD).
    • COO III must verify first if payment has been made on the subject shipment before transmitting documents to the LBD.
  • If PMS results in additional duties and taxes:
    • The Importer/Customs Broker must pay the additional amount at the In-House Bank using the Order of Payment Form (OPF) prepared by COO III and duly signed by COO V.
    • If the Importer/Customs Broker disagrees with re-assessment, the Importer/Customs Broker may avail of tentative release under CMO No. 45-2009 or the remedy under Section 2308 of the TCCP, as amended.
  • Payment and verification steps in PMS:
    • The In-House Bank accepts payment and enters payment details in e2m using the Cash Payment Module.
    • The In-House Bank generates and prints the e2m Customs Receipt (ECR).
    • The ECR Number must be indicated in the BCOR issued to the importer/broker together with the ECR.
    • After payment, the importer/broker returns to COO III and COO V to present the BCOR with the ECR attached.
    • COO III verifies payment using the e2m Customs Cash Payment Module.
    • If additional duties & taxes was confirmed as paid, the Section concerned forwards the import documents with attachments including the BCOR to the LBD.
  • For PMS amendments involving Tentative Release and value/weight/classification adjustments:
    • The procedure in Items 4.1.5 to 4.1.10 applies.
  • For approval and final printing in specific PMS paths:
    • If the District Collector approves the recommendation and assessment, the documents are forwarded to the Division Chief; the Division Chief returns to COO V, who then accesses the e2m system, prints the modified SAD, and attaches it to the original import documents.
    • After proper amendment of SAD details, procedures indicated above under Item No. 4.15 to Item No. 4.1.10 must be followed.
  • For SC procedures:
    • The same initial procedure in Items 4.1.1 to 4.1.2 applies.
    • COO III and COO V review the request; if modification is for data not modifiable, they recommend SAD cancellation; the documents go to the Division Chief for evaluation/action; if the Division Chief concurs, the documents go to the District Collector for approval/disapproval.
    • After District Collector approval (or designated official), documents are returned to the Division Chief; the Division Chief forwards to COO V for SAD cancellation based on the District Collector’s approval.
    • After SAD cancellation, COO V prints the cancelled SAD and attaches it to the original IEIRD (or SAD aIEIRD).
    • The Section concerned returns import documents with attachments to the importer or authorized representative for electronic re-lodgement of the new SAD to replace the cancelled SAD through VASP.
    • After re-lodgement, the importer/broker submits the new VASP-SAD printout together with original documents to the Entry Processing Unit of the concerned port of clearance processing.
  • For PMS with unpaid accounts:
    • Unpaid post modified SAD/s must be forwarded by the Section concerned to the LBD for preparation of a demand letter signed by the District Collector.
    • The signed demand letter must be forwarded to the Administrative Division for mailing to the importer.

Sanctions and compliance consequences

  • Failure of concerned parties to comply with the order subjects erring parties to the imposition of appropriate sanctions, administrative, civil, and/or criminal consequences as warranted under the circumstances.

Repeal, separability, and effectivity

  • All orders, memoranda, circulars, or parts thereof inconsistent with the order are deemed repealed and/or modified accordingly.
  • If any part or provision of the order is later declared invalid or illegal, the remaining portion remains valid.
  • The order takes effect immediately, with implementation limited to ports already implementing CMO 27-2009.

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