Import Clearance and Formalities
OWNER OF IMPORTED GOODS
• All goods imported into the Philippines shall be deemed to be the property of:
– the consignee or
– the holder of the bill of lading, airway bill or other equivalent transport document if
duly endorsed by
the consignee therein, or, if consigned to order, duly endorsed by the consignor.
– The underwriters of abandoned goods and
– the salvors of goods saved from wreck at sea, coast, or any area of the Philippines,
may be regarded as the consignees. (Sec. 404)
LIABILITY OF IMPORTERS FOR DUTIES AND TAXES
• Unless relieved by laws or regulations, the liability for duties, taxes, fees,
and other charges attached to importation constitutes a personal debt
due and demandable against the importer in favor of the government and
shall be discharged only upon payment of duties, taxes, fees, and other
charges.
• It also constitutes a lien on the imported goods which may be enforced
while such goods are under customs’ custody. (Sec. 405)
IMPORTATIONS BY GOVERNMENT
• Except those provided for in Section 800 – conditionally
free -, all importations by the government for its own use
or that of its subordinate branches or instrumentalities,
or corporations, agencies or instrumentalities owned or
controlled by the government, shall be subject to the
duties, taxes, fees, and other charges under CMTA. (Sec.
406)
CLEARANCE
• Defined:
– Refers to the completion of customs and other government formalities necessary to
allow goods:
1. to enter for consumption,
2. warehousing,
3. transit,
4. transshipment,
5. to be exported, or
6. placed under another customs procedure.
(Sec.102(k)
IMPORTATIONS SUBJECT TO GOODS
DECLARATION
• Unless otherwise provided for in this Act, all imported goods
shall be subject to the lodgement of a goods declaration. (Sec.
401)
– Lodgement refers to the registration of a goods declaration
with BOC.
• Lodgment means electronic submission
• Filing means physical submission
FORMAT, CONTENTS AND ELECTRONIC
LODGMENT OF GOODS DECLARATION
• As far as practicable, the format of the goods declaration shall
conform with international standards.
• The data required in the goods declaration shall be limited to
such particulars that are deemed necessary for the assessment
and collection of duties and taxes, the compilation of statistics
and compliance with this Act.
• The Bureau shall require the electronic lodgement of the
goods declaration. (Sec. 407)
SUPPORTING DOCUMENTS TO GOODS DECLARATION
• The Bureau shall only require supporting documents
necessary for customs control to ensure
that all requirements of the law have been complied
with.
• Translation of supporting documents shall not be
required except when necessary. (Sec. 407)
CONTENTS OF GOODS DECLARATION
• Goods declarations shall contain :
– the names of the consignee,
– importing vessel or aircraft,
– port of departure,
– port of destination and date of arrival,
– the number and marks of packages, or the quantity,
– if in bulk, the nature and correct commodity
description of the goods contained therein,
– its value as set forth in a proper invoice, and
– such other information as may be required by rules
and regulation. (Sec. 411)
STATEMENTS TO BE PROVIDED IN THE GOODS
DECLARATION
• No entry of imported goods shall be allowed unless the goods
declaration has been lodged with the Bureau.
• The goods declaration shall, under penalties of falsification or perjury,
contain the following statements:
1. The invoice and goods declaration contain an accurate and faithful
account of the PAPP for the goods, and other adjustments to the PAPP,
and that nothing has been omitted therefrom or concealed whereby the
government of the Philippines might be defrauded of any part of the
duties and taxes lawfully due on the goods; and
STATEMENTS TO BE PROVIDED IN THE GOODS
DECLARATION
[Link] the best of the declarant’s information and belief, all the
invoices and bills of lading or airwaybills relating to the goods
are the only ones in existence relating to the importation in
question,and that these documents are in the same state as
when they were received by the declarant, and the declaration
thereon are in all respects genuine and true. (Sec. 412)
GOODS DECLARATION MAY BE CONSIDERED AS
ACTIONABLE DOCUMENT
• Goods declaration shall be submitted electronically pursuant to Republic
Act No. 8792, otherwise known as the “Electronic Commerce Act of
2000”.
• Such declarations when printed and certified by a competent customs
officer as a faithful reproduction of the electronic submission shall be
considered as actionable documents for purposes of prosecuting a
declarant if the declarations are found to be fraudulent. (Sec. 412)
DESCRIPTION OF GOODS IN GOODS DECLARATION
• The description of the goods in the goods declaration must be sufficient and specific
in detail:
1. to enable the goods to be identified for customs valuation, statistical purposes, and
classification to the appropriate tariff heading and subheading in the currency of the
invoice, and
2. in such other particulars necessary for the proper assessment and collection of
duties and taxes.
3. The quantity and value of each of the several classes of goods shall be separately
declared according to their respective headings or subheadings and the totals of each
heading or subheading shall be duly shown. (Sec. 413)
• Commercial invoice of
CONTENTS OF imported goods shall contain
COMMERCIAL INVOICE the following:
1. the agreed price paid or to
be paid for the goods;
2. the adjustments to the
price paid or to be paid, if not
yet included in the invoice, as
may be applicable;
3. the names of the buyer,
seller, and the time and place
of sale;
4. the port of entry;
5. a sufficient description to enable the accurate
identification of goods for tariff classification,
customs valuation, and statistical purposes,
CONTENTS OF indicating the correct commodity description, in
customary term or commercial designation, the
COMMERCIAL grade or quality, numbers, marks or symbols under
INVOICE which they are sold by the seller or manufacturer,
together with the marks and number of packages
in which the goods are packed;
6. the quantities in the weights or measures of the
goods shipped; and
7. any other fact deemed necessary for the proper
examination, customs valuation, and tariff
classification of the goods as may be prescribed by
rules and regulation.
NO SALE TRANSACTIONS
• To the extent possible, the above requirements shall also apply
to goods imported but not covered by sale, such as goods on
consignment or lease, samples, or donations, covered by a
consignment, pro forma invoice, or other non-commercial
invoice. (Sec. 414)
TYPES OF GOODS DECLARATION
• A goods declaration may be for:
1. consumption (home use),
2. customs bonded warehousing,
3. admission,
4. conditional importation: customs procedure known under the RKC as temporary
admission in which certain goods can be brought into a customs territory conditionally
relieved, totally or partially, from payment of import duties and taxes; such goods must be
imported for a specific purpose and must be intended for re-exportation within a specified
period and without having undergone any substantial change except due to normal
depreciation.
5. customs transit (Sec. 400)
6. transshipment
7. export
GOODS DECLARATION FOR CONSUMPTION:
FORMAL ENTRY OR INFORMAL ENTRY PROCESS
All goods declaration for consumption shall be cleared through a formal entry
process,
: except: the following goods which shall be cleared through an informal entry
process:
(a) Goods of a commercial nature with FOB or FCA value of less than
P50,000.00.
Indexation: Every 3 years after CMTA effectivity , the Secretary of Finance shall
adjust this amount as provided herein to its present value, using the CPI as
published by the PSA; and
(b) Personal and household effects or goods, not in commercial quantity,
imported in a passenger’s baggage or mail.
GOODS DECLARATION FOR CONSUMPTION:
FORMAL ENTRY OR INFORMAL ENTRY PROCESS
• The Commissioner may adjust the value of goods of commercial nature
that shall be cleared through an informal entry process without prejudice
to the periodic 3- year adjustment.
• All importations entered through a formal entry process shall be
covered by a letter of credit or any verifiable commercial document
evidencing payment or – in cases where there is no sale for export, by any
commercial document indicating the commercial value of the goods. (Sec.
402)
PERIOD OF LODGING GOODS DECLARATION
• Goods declaration must be lodged within 15 days from the
date of discharge of the last package from the vessel or aircraft.
– The period to file the goods declaration may, upon request, be
extended on valid grounds for another 15 days: Provided, That
the request is made before the expiration of the original period
within which to file the goods declaration
- That the period of the lodgement of the goods declaration may
be adjusted by the Commissioner. (Sec. 407)
PROVISIONAL GOODS DECLARATION
• Where the declarant does not have all the information or
supporting documents required to complete the goods
declaration, the lodging of a provisional goods declaration may
be allowed. (Sec. 403)
– Intent of the law: a mechanism to minimize abandonment by
reason of failure to lodge goods declaration within the
prescribed period.
CONDITIONS BY WHICH PROVISIONAL GOODS
DECLARATION MAY BE ALLOWED
1. That it substantially contains the necessary information required by the
Bureau;
- Information for customs to make an assessment and to determine
compliance on importation laws and rules.
2. The declarant undertakes to complete the information or submit the
supporting documents within 45 days from the filing of the provisional
goods declaration, which period may be extended by BOC for another 45
days for valid reasons; and
3. Goods under a provisional goods declaration may be released upon
posting of any required security equivalent to the amount ascertained to
be the applicable duties and taxes. (Sec. 403)
TREATMENT OF PROVISIONAL GOODS DECLARATION
• If BOC accepts a provisional goods declaration, the duty
treatment of the goods shall not be different from that of
goods with complete declaration. (Sec. 403)
TENTATIVE ASSESSMENT OF PROVISIONAL
GOODS DECLARATION
• Assessment of a provisional goods declaration shall be deemed
tentative and such assessment shall be completed upon final
readjustment and submission by the declarant of the additional
information or documentation required to complete the declaration
within the 45 day period, subject to extension of another 45 days. (Sec.
403)
PENALTIES FOR ERRORS IN GOODS DECLARATION
• BOC shall not impose substantial penalties for errors when
such errors are inadvertent and there was no fraudulent intent
or gross negligence in the commission thereof: Provided, That, in
order to discourage repetition of such errors, a penalty maybe
imposed but shall not be excessive. (Sec. 108)
LODGEMENT AND AMENDMENT GOODS DECLARATION
• BOC shall permit the electronic lodgement of the goods declaration at
any designated customs office.
• The Bureau shall, for valid reason and under terms and conditions
provided by regulation, permit the declarant to amend the goods
declaration that has already been lodged:
– That the request to amend the goods declaration, together with the
intended amendments, must be received prior to final assessment or
examination of the goods. (Sec. 408)
ADVANCE LODGEMENT AND CLEARANCE
• The Bureau may provide for the lodgement and clearance of goods
declaration and supporting documents prior to the arrival of the goods
under such terms and conditions as may be provided by rules and
regulations to be promulgated under CMTA. (Sec. 409)
ENTRY OF GOODS IN PART FOR CONSUMPTION
AND IN PART FOR WAREHOUSING
• Goods declaration covered by one bill of lading or
airway bill over goods which are meant in part for
consumption and in part for warehousing may be
both entered simultaneously for release at the port
of entry. (Sec. 410)
MODE OF PAYMENT AND TERMS OF TRADE
• Subject to existing laws and rules on foreign currency
exchange, the internationally accepted standards and practices
on the mode of payment or remittance covering import and
export transactions, including standards developed by
international trading bodies such as the ICC on trading terms
(Incoterms) and on international letters of credit such as the
UCP, shall be recognized. (Sec. 415)
FORWARDING OF CARGO AND REMAINS OF WRECKED
VESSEL OR AIRCRAFT
• When vessels or aircrafts are wrecked within the Philippines, the original
owners or consignees of the cargo, or by its underwriters, in case of
abandonment, may seek approval from BOC to forward the goods saved from
the wreck to the ports of destination without going through the customs office
in the district in which the goods were cast ashore or unloaded.
– Upon approval, the goods may be forwarded with particular manifests and
duly certified by a customs officer in charge of the goods.
• The owner of the vessel or aircraft may be permitted to export the remains of
the wreck upon proper examination and inspection.
– The remains of a wrecked vessel shall include not only its hull and rigging, but
also all sea stores, goods and equipment, such as sails, ropes and chain anchors.
(Sec. 417)
DERELICTS AND GOODS FROM ABANDONED WRECKS
1. In order to prevent any attempt to commit fraud, the District Collector shall be
represented at the salvage of the cargo by customs officers who shall examine and receive
the inventory made on the cargo.
2. Thecustoms officer nearest the scene of the wreck shall take charge of the
goods saved and shall give immediate notice to the District Collector or the
nearest customs office.
3. Derelicts and all goods recovered from sea or from abandoned wrecks shall be under
the jurisdiction of the port where the goods arrive,and shall be retained in the custody of
BOC. If not claimed by the owner, underwriter or salvor, the same shall be deemed as
property of the government.
4. When such goods are brought into port by lighters or other craft,
each vessel shall submit a manifest of their respective cargo.
DERELICTS AND GOODS FROM ABANDONED WRECKS
5. Derelicts and goods salvaged from foreign vessels or aircrafts recovered from
sea or wreck are prima facie dutiable and may be entered for consumption or
warehousing. If claimed to be of Philippine production, and consequently
conditionally duty-free, proof must be submitted as in ordinary cases of re-
importation of goods. Foreign goods landed from a vessel or aircraft in distress
is dutiable if sold or disposed of in the Philippines.
6. Before any goods taken from a recent wreck are admitted to the customs
territory, the same shall be appraised, and the owner or importer shall have the
same right to appeal as in ordinary importation.
7. No part of a Philippine vessel or aircraft or its equipment, wrecked either in
Philippine or foreign waters, shall be subject to duty. (Sec. 418)