4/17/24

2 STATE POLICIES
(a) Continuous Enhancement Programs:
▪ Develop and implement programs for continuous improvement
of customs systems and processes.
▪ Aim to harmonize customs procedures for increased efficiency.
(b) Clear and Transparent Customs Rules:
▪ Adopt clear and transparent customs rules, regulations, policies,
and procedures.
▪ Ensure consistency with international standards and customs
best practices.
(c) Regime of Transparency:
▪ Establish a regime of transparency for customs information.
▪ Ensure accessibility to customs laws, rules, regulations, and
administrative policies.
▪ Facilitate informed and diligent compliance with customs
practices by stakeholders.
3 STATE POLICIES
(d) Collaboration and Cooperation:
▪ Consult, coordinate, and cooperate with other government
agencies.
▪ Engage with the private sector in the implementation and
development of customs policy.
(e) Administrative and Judicial Remedies:
▪ Provide a fair and expeditious administrative and judicial
appellate remedy.
▪ Address customs-related grievances and matters efficiently.
4 STATE POLICIES
(f) Modern Practices and Technology:
▪ Employ modern practices in customs administration.
▪ Utilize information and communications technology for effective
implementation of customs functions.
(g) Professionalism and Meritocracy:
▪ Institute professionalism and meritocracy in customs tax
 administration.
▪ Aim to attract and retain competent and capable customs
officers and personnel.
▪ Enforce the provisions outlined in the relevant customs
legislation.
5 IMPORTATION
(Sec. 103, CMTA [Formerly Sec. 1202, TCCP])
Commencement and Termination
Commencement:
▪ Begins upon entry of carrying vessel or aircraft into Philippine
territory
▪ Purpose: Intention to unload goods within the country
▪
Termination:
▪ Duties, taxes, and charges settlement:
▪ Payment or secured payment at the port of entry; and
▪ Legal permit for withdrawal required.
▪ Duty-free goods:
▪ Goods legally leave the jurisdiction of the Bureau.
▪
6 IMPORTATION
Mere Intent to Unload
▪ Definition:
▪ Importation begins upon entry of carrying vessel or aircraft into
Philippine territory
▪ Unloading or intention to unload articles/goods in the Philippines
triggers commencement
▪ Key Point:
▪ Mere intent to unload in the Philippines constitutes importation.
▪ Intent, a mental state, inferred from unguarded expressions,
conduct, and attendant circumstances. (The Commissioner of
Customs & Undersecretary of the Department Of Finance, v.
Gold Mark Sea Carriers, Inc., G.R. No. 208318, June 30, 2021)
7 WHEN DUTY AND TAX ARE DUE ON IMPORTED GOODS
 (Sec. 104, CMTA [Formerly Sec. 100, TCCP])
Duty Imposition:
▪ Goods, upon importation into the Philippines, are subject to duty.
▪ This includes goods previously exported from the Philippines.
Unpaid Duties, Taxes, and Charges:
▪ Unpaid duties, taxes, and other charges incur legal interest of
20% per annum.
▪ Interest is computed from the date of final assessment under
Section 429.
▪ Interest applies when payment becomes due and demandable.
▪ The legal interest also accrues on any fine or penalty imposed.
Final Assessment under Sec. 429:
▪ Assessment Notice: Importer or consignee receives notice of
assessment.
▪ Deemed Final: Assessment considered final after fifteen (15)
days from the receipt of the assessment notice.
Payment and Issuance of Proof of Payment:
▪ Upon payment of duties, taxes, and other charges, the Bureau
issues the necessary receipt or document.
▪ The issuance of a receipt or document serves as proof of
payment.
8 EFFECTIVE DATE OF RATE OF IMPORT DUTY
(Sec. 105, CMTA [Formerly Sec. 204, TCCP])
Goods subject to import duty rates based on applicable tariff
heading.
▪ Duty rates effective at:
▪ Date of importation, or
▪ Withdrawal from the warehouse for consumption.
▪ Free Zones Withdrawal:
▪ Goods withdrawn from free zones to customs territory.
▪ Applicable duty rate at the time of withdrawal, irrespective of
the form of withdrawal.
▪ Customs Auction:
▪ Goods sold at customs public auction.
 ▪ Duty rate at the auction date apply, under Sec. 1143(a), CMTA.
9 DECLARANT
(Sec. 106, CMTA)
A declarant may be a consignee or a person who has the right to
dispose of the goods. The declarant shall lodge a goods declaration
with the Bureau and may be:
▪ Consignee or Person with the Right to Dispose: The individual or
entity with the legal right to take possession of the goods or
determine their disposition.
▪ Importer: The party bringing the goods into the country, typically
the holder of the bill of lading.
▪ Exporter: The owner of the goods to be shipped out.
▪ Customs Broker: A person authorized to act on behalf of the
importer or the holder of the bill of lading.
▪ Person Duly Empowered as Agent or Attorney-in-fact: Any
individual given legal authority to act on behalf of another person
or entity.

10 DECLARANT
(Sec. 106, CMTA)
In case the consignee or the person who has the right to dispose of
the goods is a juridical person, it may authorize a responsible
officer of the company to sign the goods declaration as declarant on
its behalf.
▪ Juridical Person: A legal entity, such as a partnership or
corporation.
▪ Responsible Officer: he/she must be authorized by the Board of
Directors in the case of corporations or from partners in the case
of partnerships.
Goods Declaration Processing:
▪ The declarant or a licensed customs broker is responsible for
processing the goods declaration submitted to the Bureau.
Transition Period (2 years):
▪ A two-year transition period is granted from the CMTA’s
 effectivity.
▪ Subparagraph (d) regarding the authorized declarant will not be
enforced during this period.
Post-Transition Period:
▪ After the initial two years, subparagraph (d) becomes effective,
aligning with international standards and customs best practices.
▪
11 RIGHTS AND RESPONSIBILITIES OF THE DECLARANT
(Sec. 107, CMTA)
Responsibility for Accuracy:
▪ The declarant is accountable for the correctness of the goods
declaration.
Payment Responsibility:
▪ The declarant is responsible for the payment of all duties, taxes,
and other charges on the imported goods.
Responsibility of Licensed Customs Broker:
▪ The licensed customs broker shares responsibility for the
accuracy of the goods declaration but is not responsible for the
actual payment of duties, taxes, and charges on the imported
goods.
Signing of Goods Declaration:
▪ Both the declarant and the licensed customs broker, if involved,
are required to sign the goods declaration.
12 PENALTIES FOR ERRORS IN GOODS DECLARATION
(Sec. 108, CMTA)
Standard for Imposing Penalties:
▪ The BOC shall not impose substantial penalties for errors in
goods declaration under certain conditions.
Conditions for Not Imposing Substantial Penalties:
• There must be no fraudulent intent or gross negligence in
committing the errors.
Provided Clause:
▪ The key condition for not imposing substantial penalties is
provided in the clause: “Provided, That in order to discourage
 repetition of such errors, a penalty may be imposed but shall not
be excessive.”
Intent and Negligence Criteria:
▪ Errors that result from inadvertence and lack fraudulent intent or
gross negligence.
▪ Recognizes the importance of discouraging repetition of errors,
and to achieve this, a penalty may be imposed, but it should not
be excessive.
13 APPLICATION OF INFORMATION AND COMMUNICATIONS
TECHNOLOGY
(Sec. 109, CMTA)
Utilization of ICT:
▪ The Bureau of Customs is mandated to utilize information and
communications technology in accordance with international
standards.
Objectives of ICT Implementation:
▪ The primary objectives are to enhance customs control.
▪ Support cost-effective and efficient customs operations.
▪ Aim for a paperless customs environment.
Communication and Information Exchange:
▪ The Bureau is tasked with communicating, exchanging, and
processing trade- and logistics-related information at the national
and regional levels.
▪ Emphasis on efficient and prompt clearance of goods and
commodities.
▪ Use of technology-neutral and secured infrastructure for
business, industries, and government.
14 APPLICATION OF INFORMATION AND COMMUNICATIONS
TECHNOLOGY
(Sec. 109, CMTA)
Security of Data and Communication:
▪ The security of data and communication should align with
applicable local and internationally accepted standards on
information security.
 Disaster Preparedness and Recovery Plan:
▪ The Bureau is required to include a disaster preparedness and
recovery plan as part of its systems and processes.
▪ This plan aims to ensure business continuity by maintaining
uptime goals for electronic and online services.
Consultation with Stakeholders:
oThe introduction and implementation of information and
communications technology should involve due consultation with
directly affected parties and stakeholders.
15 APPLICATION OF INFORMATION AND COMMUNICATIONS
TECHNOLOGY
(Sec. 109, CMTA)
Legitimacy of Electronic Documents:
▪ For customs procedures, electronic documents, permits,
licenses, or certificates are deemed acceptable.
▪ They possess legal effect, validity, and enforceability similar to
traditional documents, provided prescribed requirements are
duly complied with.
Recognition of Authenticity and Reliability:
▪ The Bureau is mandated to recognize the authenticity and
reliability of electronic documents.
Approval and Payments through Electronic Means:
▪ Approval can be transmitted in the form of electronic data
messages or electronic documents.
▪ Payments can be required and/or accepted, with receipts issued
through systems using electronic data messages or electronic
documents.
▪
16 ELECTRONIC DOCUMENTS & ELECTRONIC DATA MESSAGES
UNDER E-COMMERCE ACT
(Sec. 5 (c) & (f), Electronic Commerce Act of 2000)
Electronic Data Message (EDM):
▪ Definition: Information created, sent, received, or stored via
electronic, optical, or similar means.
 Electronic Document (ED):
▪ Definition: Information or representation of information, data,
figures, symbols, or written expression.
▪ Purpose: Establishing rights, extinguishing obligations, proving
facts, received, recorded, transmitted, stored, processed,
retrieved, or produced electronically.
17 RELATIONSHIP BETWEEN THE BUREAU AND THIRD PARTIES
(Sec. 110, CMTA)
Direct and Third-Party Transactions:
▪ Parties have the option to transact business with the Bureau
either directly or through a designated third party acting on their
behalf.
Equal Treatment for Direct and Third-Party Transactions:
▪ Customs transactions directly conducted by a party should not
be treated less favorably or be subject to more stringent
requirements than those conducted through a designated third
party.
Rights and Obligations of Designated Third Parties:
▪ A designated third party is granted the same rights and
obligations as the party designating them when transacting
business with the Bureau.
Guidelines by the Secretary of Finance:
▪ The Secretary of Finance, subject to existing laws, treaties,
conventions, and international agreements, is responsible for
establishing necessary guidelines defining the relationship
between the Bureau and third parties.
▪ CAO 6-2019 Re: Registration of Third Parties Dealing with the
Bureau
o
18 DUTIES AND OBLIGATIONS AS THIRD PARTIES
(Sec. 6, CAO 6-2019)
1. Submission of True and Authentic Documents
2. Cooperation in Customs Investigation
3. Obligation to Report Violations
 4. Access to Records
5. Faithful Compliance with Customs and Other Laws, Rules and
Regulations.
19 INFORMATION OF GENERAL APPLICATION
(Sec. 111, CMTA)
Publication Requirement:
▪ All laws, decisions, rulings, circulars, memoranda, and orders of
the Bureau must be published in accordance with the law.
▪ Art. 2, Civil Code, in relation to Tanada v. Tuvera (G.R. No. L-
63915, April 24, 1985) and Garcillano v. House of
Representatives (G.R. No. 170338, December 23, 2008)
▪ Can a law or rules and regulations be published on the internet
to be effective?
▪ UP Office of the National Administrative Register (Sec. 3, Book
VII of the Administrative Code of 1987 [E.O. No. 292])
Informed Compliance Regime:
▪ The Bureau is tasked with fostering an informed compliance
regime.
▪ Relevant and available information of general application related
to customs operations and procedures (not confidential or
intended for internal use only) should be readily accessible to
any interested person.
Advance Notice for Changes:
▪ Any new information, amendment, or changes in customs law,
administrative procedures, or requirements should, as far as
practicable, be made readily available before the effective date
of implementation, unless advance notice is precluded.
20 INFORMATION OF SPECIFIC NATURE
(Sec. 112, CMTA)
Provision of Specific Information:
▪ The BOC shall provide information, not considered confidential
or for internal Bureau use only, regarding a specific matter upon
request by an interested party for legitimate use.
Fee Requirement:
 ▪ The BOC has the authority to require the payment of a
reasonable fee for providing such specific information.
Timely Release of Requested Information:
▪ The requested information should be released within a
reasonable time from the filing of the request and payment of the
required fee.
21 DECISION AND RULING
(Sec. 113, CMTA)
Issuance of Binding and Advance Decision:
▪ The BOC shall issue binding and advance decisions and rulings
upon the request of an interested party regarding matters related
to the importation or exportation of goods.
Notification of Decision:
▪ Upon a written request from the interested party, the Bureau is
required to provide a written notification of its decision within the
specified period in the CMTA or by regulation.
Adverse Decision and Appeal Rights:
▪ If the decision is adverse to the requesting party, the reasons for
the adverse decision should be indicated.
▪ The party shall be advised of his/her right to appeal.
Timely Issuance:
▪ The ruling and decision should be issued by the Bureau within
thirty (30) days from the submission of the necessary documents
and information.
22 INFORMATION, DECISIONS, AND RULINGS
PERIOD TO ISSUE RULINGS
(Secs. 1500 & 1501, CMTA)
BOC’s Responsibility:
• Ensure availability of customs information to the general public.
Scope:
• Information of general application.
• Includes revisions or amendments.
Issuing Authority's Timeframe:
• Act on ruling applications within thirty (30) days from receipt.
 Notification Requirement:
• Within three (3) days of a ruling's issuance, notify the requesting
party.

23 PUBLICATION AND CONFIDENTIALITY OF CERTAIN

INFORMATION IN RULING
(Sec. 1502, CMTA)
Publication Requirement
▪ The Bureau and the Commission shall regularly publish their
rulings in a manner that is accessible to the public.
Identification System
▪ Each application for a ruling is required to be assigned a title and
a unique ruling number for easy reference. This systematic
approach helps in organizing and identifying rulings for both the
authorities and the public.
Content of Publication
▪ The published information should include details such as the
goods involved, a summary of the ruling, and particularly the
grounds relied upon to support the ruling. This aims to provide
transparency and insight into the decision-making process.
24 PUBLICATION AND CONFIDENTIALITY OF CERTAIN
INFORMATION IN RULING
(Sec. 1502, CMTA)
Exclusion of Confidential Information
▪ Despite the publication, certain information is to be kept
confidential. This includes the name of the requesting party and
other information inherently confidential. Additionally, any
information that the requesting party indicated as confidential in
their application is also excluded from publication.
Consent for Disclosure
▪ Confidential information can only be disclosed in the context of
judicial proceedings, and even then, it requires the written
consent of the beneficiary of the advance ruling.
25 APPLICATION OF ESTABLISHED RULING OR DECISION
(Sec. 1504, CMTA [Formerly Sec. 3502, TCCP])
Coverage:
▪ A ruling or decision of the Commissioner which determines the
construction or application of any provision of law imposing
customs duties and taxes, and
▪ which changes any existing established valuation, classification,
rules of origin and other customs rules, interpretation or practice
Effective Date Determination:
▪ It becomes effective after 30 days of public notice through a
published decision.
Immediate Effect for Taxpayers:
▪ Exception: If the ruling benefits taxpayers, it takes effect
immediately.
26 AUTHORITY OF OFFICIAL TO ADMINISTER OATHS AND TAKE
TESTIMONY
(Sec. 1505, CMTA [Formerly Sec. 3503, TCCP])
Authorized Officials:
▪ Commissioner, District Collectors, and their deputies, and other
customs officers deputized by the District Collector.
Authority:
▪ Authority pertains to any matter within the jurisdiction of the
Bureau and in connection therewith.
Power Granted:
▪ Ability to administer oaths and take testimony.
Documentation Requirement:
▪ Officials may request the production of relevant papers,
documents, books, and records, in accordance with the law.
27 TESTIMONY IN WRITING
(Sec. 1509, CMTA [Formerly Sec. 3510, TCCP])

Testimony in any proceeding or matter under BOC’s authority:

▪ When testimony is taken, either party may require that the
testimony shall be made in writing.
 Filing Procedure:
▪ The written testimony must be filed with the Office of the District
Collector.
Preservation Requirement:
▪ The written testimony is preserved for use or reference until a
final decision is reached in the proceeding or matter.
28 RIGHT OF APPEAL, FORMS AND GROUND
(Sec. 114, CMTA)
Right to Appeal:
▪ Any party adversely affected by a decision or omission of the
Bureau related to importation, exportation, or any other legal
claim has the right to appeal within fifteen (15) days from the
receipt of the questioned decision or order.
Filing of Written Appeal:
▪ An appeal in writing must be filed within the prescribed period,
specifying the grounds for the appeal.
Submission of Supporting Evidence:
▪ The Bureau may allow a reasonable time for the submission of
supporting evidence for the appeal.
29 DUTY OF DISTRICT COLLECTOR TO REPORT RULINGS TO
THE COMMISSIONER
(Sec. 1503, CMTA [Formerly Sec. 3501, TCCP])
Reporting Duty:
▪ Imposed on the District Collector.
Initiating Factor:
▪ When a new or unsettled question is determined by the District
Collector AND and if the matter is not otherwise appealed for
review in the ordinary course
▪ Notification Procedure:
▪ The District Collector shall notify the Commissioner of the
decision.
▪ Documentation Requirement:
▪ Submission of an adequate statement of the facts involved is
mandated.
30 DISTRICT COLLECTOR NOT LIABLE IN RESPECT TO RULING
IN CUSTOMS CASES
(Sec. 1510, CMTA [Formerly Sec. 3511, TCCP])
Exemption from Liability:
▪ District Collectors and Bureau officials are not personally liable
for official rulings or decisions.
▪ Liability exemption applies when the aggrieved party has the
right to obtain either in administrative or judicial review.
Scope of Liability:
▪ Limited Liability: Except for Misdelivery of Goods, District
Collectors are generally not liable unless there is an abuse of
authority.
Loss Occasioned:
▪ Loss resulting from official acts or subordinates’ acts is not a
basis for liability unless there's an abuse of authority.
31 GENERAL SECURITY
(Sec. 1506, CMTA [Formerly Sec. 3504, TCCP])
Security Requirement:
▪ Securities mandated under the CMTA and related customs laws.
District Collector's Discretion:
▪ District Collector’s discretion in requiring separate special
security.
General Security:
▪ Option for the District Collector: May accept general security.
Scope of General Security:
▪ Covers numerous transactions of a party.
▪ Time period and transactions to be determined at the District
Collector's satisfaction.
32 SECURITY
(Sec. 1507, CMTA)
BOC to prescribe forms and amount of security
▪ CAO xx – 20xx
Party's Choice:
 ▪ Parties shall have the option to choose from any form of security
prescribed by the BOC,
Discretionary Waiver:
▪ BOC may not require security if satisfied that an obligation to the
Bureau will be fulfilled
General Security for Declarants:
▪ Declarants who regularly declare goods at different offices in
customs territory under such terms and conditions as maybe
determined by the Commissioner
Amount Limitation:
▪ Security amount shall be the lowest possible and not to exceed
imposable duties, taxes, and charges.
Immediate Discharge:
▪ Security discharged immediately upon fulfillment of obligations
under which the security was required has been satisfied.
33 CUSTOMS SERVICE FEES
(Sec. 1508, CMTA [Formerly Sec. 3506, TCCP])
Overtime Work and Other Customs Services:
▪ Customs personnel, assigned by a District Collector, can render
overtime and other customs services.
Compensation:
▪ Compensation for these services paid by the Bureau.
Fee Determination:
▪ Service fees fixed by the Commissioner, approved by the
Secretary of Finance.
Additional Fees Authorization:
▪ Bureau may charge additional customs service fees when
applicable.
Rules and Regulations:
▪ Subject to rates specified in existing rules and regulations.
34 INTEREST PROHIBITED TO BE HELD BY CUSTOMS
EMPLOYEES
(Sec. 1511, CMTA [Formerly Sec. 3512, TCCP])
Government Employment Restriction:
 ▪ Individuals employed under the government authority for duties,
taxes, fees, and other charges in connection with
imports/exports.
Ownership Prohibition:
▪ Not allowed to own, wholly or partially, any vessel or aircraft.
Agency and Consignee Limitation:
▪ Prohibited from acting as attorney, agent, or consignee for
vessel, aircraft, or loaded cargo owners.
Importation Restriction:
▪ Barred from direct or indirect involvement in the importation of
goods for sale in the Philippines.
35 REWARD TO PERSONS INSTRUMENTAL IN THE ACTUAL
COLLECTION OF ADDITIONAL REVENUES ARISING FROM
THE DISCOVERY OF VIOLATIONS OF THE CMTA
(Sec. 1512, CMTA [Formerly Sec. 3513, TCCP])
Cash Reward Entitlement:
▪ A cash reward equivalent to twenty percent (20%) of the actual
proceeds from the sale of smuggled goods and confiscated
goods or actual collection of additional revenues shall be given.
Beneficiaries:
▪ Customs and non-customs informers or whistleblowers who are
instrumental in the collection of additional revenues arising from
the discovery of violations of the CMTA.
IRR:
▪ In accordance with the rules and regulations to be issued by the
Secretary of Finance.
▪ CAO xx – 20xx
36 OUTSOURCING OF NON-SOVEREIGN CUSTOMS FUNCTIONS
TO PRIVATE ENTITIES
(Sec. 1513, CMTA)
Authorization Requirement:
▪ Subject to the approval of the Secretary of Finance, the Bureau
may outsource any of its non-sovereign and ancillary functions.
Qualified Entities:
 ▪ Qualified and competent private entities may be considered for
outsourcing.
Compliance Requirement:
▪ In accordance with government rules on service procurement.
37 INTERNATIONAL STANDARDS AND BEST PRACTICES
(Sec. 114, CMTA)
Adoption Scope:
▪ The Bureau may Adopt international standards and best
practices.
Source of Standards:
▪ Derived from international agreements or conventions.
Areas Covered:
▪ Customs administration.
▪ Pertinent to trade facilitation, supply chain security, and related
matters.
Philippines’ Signatory Status Irrelevant:
▪ Applicable whether or not the Philippines is a signatory to the
respective international agreement or convention.