Scope of Application
- Applies specifically to the E2M Customs procedure for clearing import declarations linked to short shipment.
Key General Provisions
- Bills of Lading (BL) for short shipped cargo must be marked as "Short Shipped" upon confirmation.
- Requests to amend the IFM/BL must be conditionally approved prior to lodgement, pending a 100% physical examination.
- No claims for short shipment are allowed if the goods were released without physical inspection.
- Short shipments and subsequent imports are treated as separate complete importations.
- Licenses, clearances, permits (LCPs), and tax exempt certificates (TECs) tied to the shipment are electronically tagged as "USED" after customs assessment.
- Importers must re-apply with other government agencies (OGAs) for re-issuance of LCP and TEC for remaining quantities.
- Non-cash payments and Import Entry Declaration (IED) for advance duties apply only to actual shipment quantities.
- Importers may apply for refunds if there is excess duty and tax payment.
- All short shipment import declarations must be processed through the Red Lane for inspection.
Operational Provisions for Short Shipment Known Before Entry Lodgment
- Importers or customs brokers file a request for amendment with the Deputy Collector for Operations.
- Conditional approval is granted subject to 100% physical examination.
- Deputy Collector encodes amendments to the electronic manifest.
- Importers lodge entry electronically based on amended IFM/BL.
- Assessment Office conducts physical examination and follows procedures based on examination findings:
- No discrepancy: Forward working entry for final approval.
- Discrepancy less than amended IFM/BL: Amend CIF values, Inspection Act accordingly, subject to District Collector approval.
- Discrepancy exceeds amended IFM/BL:
- If discrepancy ≤30%: Apply surcharge guidelines under CMO 64-93; amend CIF, penalties recorded.
- If discrepancy >30%: Presumption of fraud, issuance of Warrant and Seizure Detention (WSD) recommended.
Procedures for Short Shipment Known After Entry Filing
- Follow the procedures for discrepancies less than amended IFM/BL (adjustments and assessments).
Sanctions for Non-Compliance
- Non-compliance subjects parties to administrative, civil, and/or criminal sanctions depending on the circumstances.
Repealing Clause
- All previous orders, memoranda, or circulars inconsistent with this order are repealed or modified accordingly.
Separability Clause
- Invalidity of any part of the order does not affect the validity of the remaining provisions.
Effectivity
- The order takes immediate effect but applies only to ports implementing CMO 27-2009.