Customs Laws and Regulations: Abandonment

11 Questions

Define abandonment according to customs laws.

Abandonment is defined as the renunciation by an importer of all his interests and property rights over imported goods as a remedy to relieve himself of the liability for payment of duties, taxes, and charges.

What are the types of abandonment described in the content?

Both a and b

Express abandonment occurs when the owner, importer, or consignee expressly signifies in writing to the District Collector the intention to abandon the goods by submitting an ________ of Abandonment.

Affidavit

Abandoned goods are disposed of without any regulations or guidelines.

False

What may be considered as valid grounds for requesting an extension?

Fraud committed against the owner, importer or consignee; Accident; Mistake; Excusable negligence; Force majeure; Technical issues as certified by MISTG; Other analogous circumstances

What happens if a request for extension is not acted upon within seven working days?

The request for extension shall be deemed approved.

What documents are required for requesting the lifting of abandonment?

Original and Notarized Letter Request, Bill of Lading, ID of Authorized Representative, Secretary’s Certificate, ID of Corporate Secretary and General Information Sheet (if corporation), Special Power of Attorney, ID of Importer and DTI Certificate (if single proprietorship), Special Power of Attorney and ID of importer (if individual), Certification from Law Division, MISTG, ESS and CIIS, Payment of Penalty, Docket and Request Charge and Documentary Stamp Tax

What information must be included in the Letter Request for lifting of abandonment?

Reasons for implied abandonment, Declaration status by the system, Past number of lifting requests, Alert Order or Warrant of Seizure status

What are the penalties and charges to be paid according to CAO 13-2020?

Penalty ranging from P10,000 to P30,000, Docket & Request Charge ranging from P500 to P10,000, Documentary Stamp Tax fixed at P30, Surcharge of 10% to 25% for late payments, Interest rate of 20% per annum for late payments

Under what conditions can an owner, importer, or consignee reclaim impliedly abandoned goods?

Goods have not been disposed by the Bureau, Goods declaration filed within 30 days after original filing period lapse, Duties, taxes, and charges paid in full

When can the owner, importer, or consignee claim proceeds of auction sales?

Once goods have been impliedly abandoned, sold by the bureau, no offense involved, and duties, taxes, and charges under Section 1143 deducted

Study Notes

Abandonment Under Customs Laws

Abandonment refers to the renunciation by an importer of all their interests and property rights over an imported good.

Kinds of Abandonment

Express Abandonment: happens when the owner, importer, or consignee EXPRESSLY signifies in WRITING to the District Collector their intention to abandon the goods.
Implied Abandonment: happens when the owner, importer, or consignee fails to do certain acts required by law, such as:
- Failure to lodge/file the Goods Declaration (Sec. 407)
- Failure to claim the goods (within 30 days from payment of duties, taxes, fees, interests, and other charges)
- Failure to pay the assessed duties and taxes (within 15 days from final assessment)
- Failure to submit the required permit (within 45 days from the date of lodgment or 15 days from final assessment)
- Failure to mark goods under Section 710 (within 30 days from arrival)
- Abandonment of imported goods in CBW (more than 1 year from the time of arrival)

Effects of Abandonment

All interests and property rights over the goods are deemed renounced by the owner, importer, or consignee in favor of the government.
Imported goods shall be deemed abandoned upon expiration of the period to:
- Lodge and file goods declaration
- Pay in full duties, taxes, and other charges
- Claim the goods
- Mark the goods, when necessary
All abandoned goods shall be disposed of in accordance with applicable laws, rules, and regulations.

Remedies

Request to Extend the Period to File Goods Declaration: may be granted for valid grounds, such as fraud, accident, mistake, excusable negligence, force majeure, technical issues, and other analogous circumstances.
Request for the Lifting of Abandonment: may be granted by the District Collector upon request by the importer, subject to payment of penalties, fees, and charges.
Reclaim the Impliedly Abandoned Goods: the owner, importer, or consignee may reclaim the goods by lodging or filing the corresponding Goods Declaration, subject to certain conditions.
Request to Claim the Proceeds of Sale: the owner, importer, or consignee shall be entitled to receive the proceeds of the auction sale, subject to certain conditions.

This quiz covers the concepts of abandonment in customs laws and regulations, including types and effects, as well as administrative and judicial proceedings.

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