Effective Communication in Organizations

Customs Memorandum Order (CMO) No. 03-2022

• Subject: Revised Rules and Regulations on the Establishment, Supervision, Operation, and Control of Customs Bonded Warehouses (CBWs)

Section 1. Objectives

• To establish procedures for the establishment and operation of Customs Bonded Warehouses (CBWs).
• To create a management system for CBWs using ICT for monitoring, supervision, and control.
• To implement a compliance regime for CBW operators regarding operations, and to provide sanctions for violations.
• To establish the duties, responsibilities, and accountabilities of BOC personnel assigned to CBWs and CBW operators.

Section 2. Administrative Provisions

2.1. General Considerations

2.1.1. Transfer of Goods to CBWs

• Goods transferring to CBWs are subject to a mandatory non-intrusive inspection at the port of discharge (whether covered by WSAD or TSAD).
• District Collectors will allow immediate transfer to CBW warehouses, if the goods are not selected for physical/non-intrusive inspection.

2.1.2. Storage Period of Bonded Goods

• Goods allowed to remain in a CBW for a maximum of one year from arrival.
• Goods in Customs Common Bonded Warehouses (CCBWs) have a storage period starting from arrival at the mother warehouse.
• Perishable goods have a storage period of three months.

2.1.3. Allowable Importations

• Importations are limited by the CBW's authority/license.
• Specific raw materials, volumes, and quantities are allowed based on corresponding HS Tariff lines.
• Industry-Specific Customs Bonded Warehouses (ICBWs) have transfer/sales limits for Client End-Users.

2.1.4. Non-importation of Finished Goods

• Finished goods importation is forbidden except for use as components in the manufacture/production of other finished goods for export, approved by the Customs Bonded Warehouse Committee (CBWC).

2.1.5. Restricted and Regulated Goods

• Restricted and regulated goods require the proper clearance and import authority from a competent authority.
• Goods without the required clearance are subject to seizure and forfeiture.

2.1.6. Withdrawals for Local Sales/Domestic Consumption

• Local sales/domestic consumption withdrawals are allowed only with District Collector approval and payment of duties and taxes.
• Withdrawals cannot exceed 30% of the total volume of bonded raw materials transferred to the CBW for the year, (not applicable for Private Customs Bonded Warehouses (PCBWs)).

2.1.7. Withdrawal for Sub-Contracting

• CBW operators can subcontract processing activities if they lack the necessary facilities, or if they need additional time to meet export commitments (with District Collector approval).
• Garment sub-contract transfers are subject to government agency rules and regulations, and only pre-cut or cut-to-pattern materials can be transferred.

2.1.8. Prohibition on Importations by Industry-Specific Customs Bonded Warehouses

• ICBWs cannot import fibers, yarns, fabrics, and accessories for garment manufacturing.

2.2. Provisions Specific to Common Customs Bonded Warehouses (CCBWs) and Its Accredited Members

2.2.1. One Mother Warehouse

• Each manufacturer-exporter can only be accredited to one Customs Common Bonded Warehouse (CCBW), known as the mother warehouse.
• Accredited members maintain their books and records of materials on location, and the warehouse must be accessible to authorized government officials.

2.2.2. Maintenance of Records

• CCBW members keep records of imported materials for inspection by authorized officials.

2.2.3. Accessibility of Warehouse

• The warehouse and its affiliated spaces must be accessible to authorized customs officials.

2.2.4. Transfer to CCBW warehouses

• All goods transferring to CCBWs must first pass through the CCBW Operator for record-keeping.

2.2.5. Liquidation of Raw Materials

• The CCBW Operator has the responsibility of liquidating imported raw materials of accredited members.

2.2.6. Accreditation and Pre-Termination

• Members without import/export activity for a year have their accreditations deemed pre-terminated (without impacting new applications).
• Members cannot use transfers to extend the initial storage period (set from the mother warehouse's receipt of imported goods).

2.2.7. Member Transfer

• Transfers of membership from one CCBW to another is not allowed to circumvent the one-year rule or to extend the initial storage period.

2.2.8. Transfer/Sales between Members

• Transfer/sales of bonded goods between members of the same CCBW does not extend the storage period of imported goods from the mother warehouse.
• Only semi-finished/finished goods that have undergone processing/manufacturing by a member can be transferred to another member of the same CCBW (without payment of duties and taxes).
• For further processing/use in additional semi-finished/finished goods, transferee/buyer must additionally process the imported goods.

2.2.9. Replacement of Import Entries (WSAD)

• For replacement of former import entries, new CCBWs must file a WSAD with the responsible authorities.

2.2.10. Transfer/Sale to Other Members

• Further transfers/sales of goods within the same CCBW is not allowed.

2.2.11. Transfer/Sale of Goods

• The transfer/sale of bonded goods is subject to District Collector approval.

2.2.12. Joint and Several Liability

• Both the CCBW and its member-buyer are jointly and severally liable for issues related to the transfer/sale of bonded goods.

Test your knowledge on the fundamentals of effective communication within organizations. This quiz covers key concepts like emotional intelligence, team dynamics, and conflict resolution methods. Assess your understanding of barriers and strategies that enhance workplace communication.