CM 314 Goods Declaration (Part 2) - PDF

CM 314 Topic 2: Provisions of the CMTA on Goods Declaration (PART 2) Prepared by: KENT COSIDO, LCB  Contents of the Goods Declaration Goods declaration shall contain the names of the consignee, importing vessel or aircraft port of departure, port of destination and date of...

CM 314 Topic 2: Provisions of the CMTA on Goods Declaration (PART 2) Prepared by: KENT COSIDO, LCB  Contents of the Goods Declaration Goods declaration 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 regulations. Section 411, CMTA  Contents of the Goods Declaration The following are the contents of goods declaration as provided under section 5.7.3 of CAO 09-2020: a. Name of the consignee (ex. JOLLIBEE FOODS INC.) b. Name of the importing vessel of aircraft (MAERSK ATLANTA – Container Ship) c. Country of Origin (ex. JAPAN, CHINA, VIETNAM) d. Port of departure (PORT OF SHANGHAI; UN location code: CNSHA) e. Port of destination (PORT OF MANILA: UN location code: PHMNL) f. Date of Arrival (Actual date of arrival of the carrying vessel)  Contents of the Goods Declaration The following are the contents of goods declaration as provided under section 5.7.3 of CAO 09-2020: g. The number and marks of packages, or the quantity, if in bulk; (Ex. Bag – BG, Box – BX) h. The nature and correct commodity description of goods contained therein. (Mechanically Deboned Chicken Meat) i. The value of the goods for customs valuation purposes. This may include 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.  Difference between BULK and BREAK-BULK BULK Cargoes refers to goods that are transported in large quantities without any packaging, typically in a loose state. Can be Liquid bulk or dry bulk.  Difference between BULK and BREAK-BULK BREAK-BULK on the other hand, involves goods that are packaged and transported as individual units, which are loaded and unloaded piece by piece. For instance, Packaged goods like boxes, crates, barrels, and pallets; and Items that are too large to fit into containers, such as machinery, vehicles, or steel beams. Contents of the Goods Declaration CMO no. 1-96A Contents of the Goods Declaration CMO no. 1-96A  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: a) The invoice and goods declaration contain an accurate and faithful account of the prices paid or payable for the goods and other adjustments to the price actually paid or payable, and that nothing has been omitted therefrom or concealed whereby the government of the Republic of the Philippines might be defrauded of any part of the duties and taxes lawfully due on the goods; and Section 412, CMTA Falsification of Documents OR Perjury  Difference between a CIVIL case and CRIMINAL case CIVIL CASE To resolve disputes over rights and obligations. It aims to provide a remedy or compensation for the wronged party. This type of case is concerned with such as disputes over customs duties, valuation, classification, or contractual obligations between the importer and the Bureau of Customs, and also with other government agencies In this case, Petron Corporation contested the tax assessments issued by the Commissioner of Internal Revenue Legal consequences: (CIR), arguing that certain tax liabilities were improperly computed, particularly Typically involves a monetary award, refund, or the payment of EXCISE TAX. an order to perform or refrain from certain actions.  Difference between a CIVIL case and CRIMINAL case CRIMINAL CASE To punish unlawful activities that are offenses against the state. It aims to deter and penalize actions that violate the law. Its main scope Involves violations such as smuggling, technical smuggling, or fraud, where the law has been broken. This case involves petitioners Rene M. Francisco and Oscar A. Ojeda, who were both charged and convicted of violating Legal consequences: the Anti-Graft and Corrupt Practices Act for their involvement in anomalous May result in imprisonment, fines, or both, and transactions while serving as public officials of the Bureau of Customs. serves as a deterrent against illegal activities.  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: b) To the best of the declarant's information and belief, all the invoices and bills of lading or airway bills 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. Section 412, CMTA  Statements to be provided in the Goods Declaration 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. Section 412, CMTA  Description of Goods Under such terms and conditions prescribed under the rules and regulations, the description of the goods in the goods declaration must be sufficient and specific in detail 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 in such other particulars necessary for the proper assessment and collection of duties and taxes. 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. Section 413, CMTA Specific codes Description of goods as provided CAO 08- 2007/CMO 28-2007 Description of Goods: a. General Description – pertains to the generic name or general name of the product (Chicken, Milk, Bag, and Engine) b. Specific Description – pertains to the specific name of such generic description (Mechanically Deboned Chicken, diesel engine, skimmed milk, and shoulder bag) c. Make/Brand – pertains to the brand name of the product. (Virginia, Nestle, Tigernu, Honda) Description of goods as provided CAO 08- 2007/CMO 28-2007 Description of Goods: d. Model/Style – the model number, style, reference and other reference (CRV 2007 for Honda civic car, Thinkpad 3,000 for a Lenovo notebook, model E90 for Nokia Cellphone) e. Capacity/Quality/Grade/Process – the capacity, output, or other indication of size and performance among other; of a product (200hp, 100kw) or description of quality, grade specification or applicable standard or process. f. Retail Packaging – pertains to the details packaging or measure within the unit used (12x1l bottles, 24x3000oz cans)  Commercial and Non- commercial Invoice Commercial invoice of imported goods shall contain the following: a. The agreed price paid or to be paid for the goods; b. The adjustments to the price paid or to be paid as defined in Section 701(1) of this Act, if not yet included in the invoice, as may be applicable; c. The names of the buyer, seller, and the time and place of sale; d. The port of entry; Section 414, CMTA  Commercial and Non- commercial Invoice Commercial invoice of imported goods shall contain the following: e. A sufficient description to enable the accurate identification of goods for tariff classification, customs valuation, and statistical purposes, indicating the correct commodity description, in customary term or commercial designation, the grade or quality, numbers, marks or symbols under which they are sold by the seller or manufacturer, together with the marks and number of packages in which the goods are packed; Section 414, CMTA  Commercial and Non- commercial Invoice Commercial invoice of imported goods shall contain the following: f. The quantities in the weights or measures of the goods shipped; and g. Any other fact deemed necessary for the proper examination, customs valuation, and tariff classification of the goods as may be prescribed by rules and regulations. Section 414, CMTA  Commercial and Non- commercial Invoice 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 noncommercial invoice. Section 414, CMTA Commercial Invoice Non- Commercial Invoice  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 International Chamber of Commerce (ICC) on trading terms (incoterms) and on international letters of credit such as the Uniform Customs and Practice for Documentary Credits (UCPDC), shall be recognized. Section 415, CMTA  Mode of Payments Section 8 of Bangko Sentral ng Pilipinas (BSP) circular no. 1124 provides the following modes of payment:  Mode of Payments 1. Letter of Credit a financial document issued by a bank guaranteeing that a seller will receive payment from the buyer once specific conditions, usually related to the shipment and documentation of goods, are met 2. Documents Against Payment Under DP, the seller instructs the presenting bank to hand over shipping documents to the buyer only after the payment is made. This method is also known as "Cash Against Documents."  Mode of Payments 3. Document Against Acceptance The seller presents the shipping documents to the buyer, who accepts them by signing a bill of exchange (promissory note) promising to pay at a future date. The buyer gets the documents and the goods immediately but pays later. 4. Open Account The buyer receives the goods and the shipping documents directly, and payment is made at an agreed-upon future date (30-60-90 days). This method involves high risk for the seller, as the buyer may delay or default on the payment.  Mode of Payments 5. Direct Remittance The buyer transfers the payment directly to the seller’s bank account, either before or after shipment, depending on their agreement. 6. Advance Payment The buyer pays the seller in full or partially before the goods are shipped. This method is often used when the buyer has limited credit or the seller is unsure of the buyer’s creditworthiness.  Mode of Payments 7. Digital Payment through E-commerce Market Participants This method involves using digital payment platforms integrated within e-commerce websites or applications. It facilitates the direct transfer of funds for import payments. References: https://www.bsp.gov.ph/Regulations/Issuances/2021/1124.pdf https://portcalls.com/boc-orders-implementation-of-epay/ CMO 06-2024  Examination of Samples Customs officers shall see to it that representative samples taken during examination shall be properly receipted for and retained within a reasonable period of time. The quantity and value of the samples taken shall be noted in the specified box of goods declaration or electronic form. Such samples shall be duly labeled as will definitely identify them with the importation for which they are taken. Section 416, CMTA Examination of Samples as mandated under the Revised Kyoto Convention Customs may take samples of goods only when necessary to verify tariff classification, value, or compliance with national laws. The quantity taken should be minimal. 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 ease of abandonment, may seek approval from the Bureau 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. Section 417, CMTA  Cargo of Wrecked Vessel or Aircraft refers to the goods or items that were being transported on a vessel or aircraft that has suffered an accident or disaster, resulting in its destruction or significant damage.  Remains or Derelicts of Wrecked Vessel or Aircraft refer to the physical remnants or debris left after a vessel or aircraft has been destroyed, damaged, or wrecked due to an accident, collision, or natural disaster.  Forwarding of Cargo and Remains of Wrecked Vessel or Aircraft 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 Section 417, CMTA  Derelicts and Goods from Abandoned Wrecks 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 the Bureau. If not claimed by the owner, underwriter or salvor, the same shall be deemed as property of the government. Section 418, CMTA  QUESTION: A container ship carrying several containers of computer devices, which are originally destined at the Port of Dumaguete, is wrecked in the waters under the jurisdiction of the Port Cebu due to a severe storm. Some of the cargo containers and parts of the ship are found floating at sea and are later recovered by a local salvage team. The recovered goods, along with the remains of the vessel, are brought to the Port of Cebu. In this case, who has jurisdiction over the derelicts and goods? ANSWER: In this case, the jurisdiction over the recovered goods belongs to the Port of Cebu. Even though the goods were originally destined at the Port of Dumaguete, the fact that the goods and remains of the wrecked vessel were brought to the Port of Cebu means they fall under the authority and custody of the Bureau of Customs at the Port of Cebu. As provided under Section 417, Derelicts and all goods recovered from sea or from abandoned wrecks shall be under the jurisdiction of the port where the goods arrive, not with the port where it is originally destined.  Derelicts and Goods from Abandoned Wrecks 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 reimportation of goods. Foreign goods landed from a vessel or aircraft in distress is dutiable if sold or disposed of in the Philippines. Section 418, CMTA Legal definition of Abandoned and Derelict vessels “DERELICT” often refers to vessels that are neglected with an identifiable owner “ABANDONED” vessels are those where the owner is unknown or has surrendered rights of ownership. Reference: Marine Debris Program (US – Office of Response and Restoration National Oceanic and Atmospheric Administration  Derelicts and Goods from Abandoned Wrecks 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. No part of a Philippine vessel or aircraft or its equipment, wrecked either in Philippine or foreign waters, shall be subject to duty. Section 418, CMTA  END OF DISCUSSION… NIL VOLENTIBUS ARDUUM Prepared by: KENT COSIDO, LCB