2023 Customs Law Reviewer PDF

CLAP CUSTOMS REVIEW AND CENTER FOR PROFESSIONAL DEVELOPMENT in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila Contacts - Globe: 09063811016 / 09068172757 Email: [email protected] FB:...

CLAP CUSTOMS REVIEW AND CENTER FOR PROFESSIONAL DEVELOPMENT in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila Contacts - Globe: 09063811016 / 09068172757 Email: [email protected] FB: www.facebook.com/clap.stacruz/ Towards this end, the State shall: Towards this end, the State shall: General and Common Provisions a) Develop and implement programs for the continuous enhancement of customs systems and processes that will e)Provide a fair and expeditious administrative and CUSTOMS LAWS harmonize customs procedures; judicial appellate remedy for customs related 2023 REVIEW DAY 1: Section 101. Declaration of Policy grievances and matters; b) Adopt clear and transparent customs rules, regulations, policies and procedures, consistent with international f) Employ modern practices in customs Policies of the State: standards and customs best practices; Customs Administration administration and utilize information and to protect and enhance government revenue; c) Establish a regime of transparency of and accessibility to communications technology in the implementation Essentials Part 1 customs information, customs laws, rules, regulations, of customs functions; and institute fair and transparent customs and administrative policies, procedures and practices, in order to tariff management that will efficiently facilitate ensure informed and diligent compliance with customs g)Institute professionalism and meritocracy in ATTY. NORBERTO V. CASTILLO, CB, MBA international trade, prevent and curtail any practices and procedures by stakeholders; customs tax administration by attracting and form of customs fraud and illegal acts; and d) Consult, coordinate and cooperate with other government retaining competent and capable customs officers modernize customs and tariff administration. agencies and the private sector in implementing and and personnel to enforce the provisions of this developing customs policy; Act. Select terminologies Select terminologies Select terminologies Select terminologies Conditional Importation - refers to the customs procedure Admission - refers to the act of bringing imported goods Jurisdictional Control - refers to the power and rights of the Bill of Lading (B/L) - refers to a transport document issued by known under the RKC as temporary admission in which certain directly or through transit into a free zone. goods can be brought into a customs territory conditionally Bureau in exercising supervision and police authority over all shipping lines, carriers and international freight forwarders or relieved, totally or partially, from payment of import duties and seas within the jurisdiction of the Philippine territory and over all non-vessel operating common carrier for water-borne freight. taxes; such goods must be imported for a specific purpose and coasts, ports, airports, harbors, bays, rivers and inland waters The holder or consignee of the bill has the right to claim Authorized Economic Operator (AEO) - refers to the must be intended for reexportation within a specified period and whether navigable or not from the sea. delivery of the goods at the port of destination. importer, exporter, customs broker, forwarder, freight without having undergone any substantial change except due to forwarder, transport provider, and any other entity duly It is a contract of carriage that includes carrier conditions, such normal depreciation. Outright Smuggling - refers to an act of importing goods into accredited by the Bureau based on the WCO Framework as limits of liability and claims procedures. In addition, it the country without complete customs prescribed importation Customs Officer, as distinguished from a clerk or employee, documents, or without being cleared by customs or other of Standards to Secure and Facilitate Global Trade, the contains transport instructions to shipping lines and carriers, a refers to a person whose duty, not being clerical or manual in RKC, the WCO Supply Chain Management Guidelines description of the goods, and applicable transportation regulatory government agencies, for the purpose of evading nature, involves the exercise of discretion in performing the and the various national best practices to promote trade charges. function of the Bureau. It may also refer to an employee payment of prescribed taxes, duties and other government facilitation and to provide a seamless movement of goods charges. Clearance - refers to the completion of customs and other authorized to perform a specific function of the Bureau as provided across borders through secure international trade supply government formalities necessary to allow goods to enter for in this Act. Release of Goods - refers to the action by the Bureau to chains with the use of risk management and modern consumption, warehousing, transit or transshipment, or to be permit goods undergoing clearance to be placed at the disposal Customs Territory - refers to areas in the Philippines where technology. exported or placed under another customs procedure. customs and tariff laws may be enforced. of the party concerned Select terminologies Section 103. When Importation Begins and Deemed Terminated Section 104. When Duty and Tax are Due on Select terminologies Imported Goods Security - refers to any form of guaranty, such as a Importation begins when the carrying vessel or aircraft (1) Except as otherwise provided for in this Act or in other laws, all goods, surety bond, cash bond, standby letter of credit or Technical Smuggling - refers to the act of enters the Philippine territory (2) with the intention to unload when imported into the Philippines, shall be subject to duty upon therein. irrevocable letter of credit, which ensures the importing goods into the country by means of importation, including goods previously exported from the Philippines. satisfaction of an obligation to the Bureau; fraudulent, falsified or erroneous declaration of the Importation is deemed terminated when: Unpaid duties, taxes and other charges, shall incur legal interest of Smuggling - refers to the fraudulent act of importing goods to its nature, kind, quality, quantity or weight, 20% per annum computed from the date of final assessment, when (a) The duties, taxes and other charges due upon the payment becomes due and demandable. The legal interest shall any goods into the Philippines, or the act of assisting for the purpose of reducing or avoiding payment of likewise accrue on any fine or penalty imposed. prescribed taxes, duties and other charges; goods have been paid or secured to be paid at the in receiving, concealing, buying, selling, disposing or port of entry unless the goods are free from duties, Upon payment of the duties, taxes and other charges, the Bureau shall transporting such goods, with full knowledge that the Tentative Release - refers to a case where the taxes and other charges and legal permit for issue the necessary receipt or document as proof of such payment. same has been fraudulently imported, or the assessment is disputed and pending review, an withdrawal has been granted; or SEE: CMO 03-2021 “Compendium of Penalties, Liabilities, or fraudulent exportation of goods. Goods referred to importer may put up a cash bond equivalent to the (b) In case the goods are deemed free of duties, taxes Obligations under the CMTA and its Implementing Rules and under this definition shall be known as smuggled Regulations” duties and taxes due on goods before the importer and other charges, the goods have legally left the goods. can obtain the release of said goods jurisdiction of the Bureau. Related: CAO 01-2019; CAO 09-2020; CAO 13-2020 Atty. Norberto V. Castillo, CB, MBA Page 1 of 4  CLAP CUSTOMS REVIEW AND CENTER FOR PROFESSIONAL DEVELOPMENT in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila Contacts - Globe: 09063811016 / 09068172757 Email: [email protected] FB: www.facebook.com/clap.stacruz/ Section 106. Declarant Section 106. Declarant Section 105. Effective Date of Rate of Import Duty Related provision (?) A declarant may be a consignee or a person who has In case the consignee or the person who has the right to Imported goods shall be subject to the import duty dispose of the goods is a juridical person, it may authorize a rates under the applicable tariff heading that are effective the right to dispose of the goods. The declarant responsible officer of the company to sign the goods Section 1425. Failure to Pay Duties, Taxes and shall lodge a goods declaration with the Bureau and declaration as declarant on its behalf. at: Other Charges. may be: The goods declaration submitted to the Bureau shall be 1. the date of importation ; or processed by the declarant or by a licensed customs For failure to pay the duties, taxes and other (a) The importer, being the holder of the bill of lading; broker; charges of an assessment within fifteen (15) days 2. upon withdrawal from the warehouse for consumption. 3. In case of withdrawal from free zones for introduction or Provided, That for importations, a transition period of two from the date of final assessment, a surcharge of ten percent (10%) of the total assessed amount or to the customs territory, the duty rate at the time of (b) The exporter, being the owner of the goods to be (2) years from the effectivity of this Act is hereby provided withdrawal shall be applicable on the goods originally shipped out; or during which subparagraph (d) of this section shall not be balance thereon shall be added and collected, admitted, whether withdrawn in its original or implemented by the Bureau: which surcharge shall be increased to twenty-five (c) A customs broker acting under the authority of the advanced form. importer or from a holder of the bill; or Provided, Further, That after two (2) years from the percent (25%) if the delinquency lasts for more than one (1) year. 4. In case of goods sold at customs public auction, the (d) A person duly empowered to act as agent or effectivity of this Act, subparagraph (d) of this section shall take duty rates at the date of the auction shall apply. into effect consistent with international standards and customs attorney-in-fact for each holder. best practices. Section 109. Application of Information and Section 107. Rights and Responsibilities Communications Technology Related Provision of the Declarant Section 108. Penalties for In accordance with international standards, the Bureau shall utilize Section 412. Statements to be Provided in The declarant shall be responsible for the accuracy of the Errors in Goods Declaration information and communications technology to enhance customs goods declaration and for the payment of all duties, taxes and control and to support a cost-effective and efficient customs the Goods Declaration other charges due on the imported goods. operations geared towards a paperless customs environment. xxx xxx xxx The Bureau shall not impose substantial Goods declaration shall be submitted electronically The licensed customs broker shall likewise be responsible for penalties for errors when: xxx xxx xxx the accuracy of the goods declaration but shall not be pursuant to Republic Act No. 8792, otherwise known as The security of data and communication shall be in a manner responsible for the payment of duties, taxes and other the “Electronic Commerce Act of 2000”. 1) such errors are inadvertent; and that is consistent with applicable local and internationally accepted charges due on the imported goods. standards on information security. (Relate with: Data Privacy, Anti- 2) there was no fraudulent intent or gross Wire Tapping and Secrecy of Bank Deposits laws) Such declarations when printed and certified by a The declarant shall sign the goods declaration, even when competent customs officer as a faithful reproduction assisted by a licensed customs broker, who shall likewise negligence in the commission thereof xxx xxx xxx of the electronic submission shall be considered as sign the goods declaration. For purposes of customs procedures, electronic documents, actionable documents for purposes of prosecuting a (See: CAO 01-2020; CMO 03-2021) permits, licenses or certificates shall be acceptable and shall have SEE : CMO 34-2019 “Interim Guidelines Implementing declarant if the declarations are found to be the legal effect, validity or enforceability as any other document or Sections 106 and 107 of RA 10863” legal writing. (Relate with E-Commerce Act) fraudulent. xxx xxx xxx Section 110. Relationship Between the Bureau Section 111. Information of General Application Section 112. Information of a Specific Nature and Third Parties All laws, decisions, rulings, circulars, memoranda and Parties may transact business with the Bureau either directly or Provisions on transparency orders of the Bureau shall be published in The Bureau shall provide information: 1) not otherwise confidential; or through a designated third party to act on their behalf. accordance with law. The customs transactions directly transacted by a party shall Section 111. Information of General 2) for the Bureau's internal use only, not be treated less favorably or be subject to more stringent Application To foster an informed compliance regime, the requirements than those transacted through a designated third party. Bureau shall ensure that all relevant and available relating to a specific matter as may be requested by A designated third party shall have the same rights and information of general application pertaining to an interested party for legitimate use. obligations as the designating party when transacting business with Section 112. Information of a Specific the Bureau. customs operations and procedures which are: Nature The Bureau may require the payment of a reasonable Requirements for authorizations: 1) not confidential; or fee in providing such information. The requested (See: CMO 06-2022 and CMO 53-2019) 2) intended for the Bureau's internal use only, information shall be released within reasonable time 1. If juridical entity – Board Resolution or Corporate Secretary’s from the filing of the request and payment of the Certificate; shall be readily accessible to any interested required fee. 2. If Sole Proprietorship – Special Power of Attorney person. Atty. Norberto V. Castillo, CB, MBA Page 2 of 4  CLAP CUSTOMS REVIEW AND CENTER FOR PROFESSIONAL DEVELOPMENT in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila Contacts - Globe: 09063811016 / 09068172757 Email: [email protected] FB: www.facebook.com/clap.stacruz/ Section 115. Treatment of Importation Section 114. Right of Appeal, Forms and Ground (1) Free Importation and Exportation Imported goods shall be deemed “entered” in the Any party adversely affected by a decision or omission of the Bureau pertaining to an importation, exportation, or any other legal claim shall have the right to appeal Philippines for consumption when the goods declaration is electronically lodged, together with any required supporting TYPES OF Goods that may be freely imported into and exported from the Philippines without need for import and documents, with the pertinent customs office. within 15 days from receipt of the questioned decision or order. ------------------------------------------------------------------------------- ------------ IMPORTATION export permits, clearances or licenses. Related Provision: (2) Section 117. Regulated Importation and An appeal in writing shall be filed within the period Exportation prescribed in this Act or by regulation and shall specify Section 102. SEE ALSO: Chapter II, A, Section 7, the grounds thereof. BSP MANUAL OF REGULATIONS ON Goods which are subject to regulation shall be (r) Entry - refers to the act, documentation and process of The Bureau may allow a reasonable time for the bringing imported goods into the customs territory, including FOREIGN EXCHANGE TRANSACTIONS imported or exported only after securing … submission of supporting evidence to the appeal. goods coming from free zones (UPDATED DECEMBER 2020) clearances, licenses, and any other requirements, prior to importation or exportation. (See: CMO 04-2021) Also, read: Remigio vs. Sandiganbayan (3) Section 118. Prohibited Importation and Exportation (3) Section 118. Prohibited Importation and Exportation In case of importation, submission of requirements (a) Written or printed goods in any form containing any matter d) Any goods manufactured in whole or in part of gold, silver or Copyright and Related Rights; after arrival of the goods but prior to release from advocating or inciting: other precious metals or alloys and the stamp, brand or mark 1) treason, rebellion, insurrection, sedition against the government customs custody shall be allowed but only in cases of the Philippines; or does not indicate the actual fineness of quality of the metals Trademarks and Service Marks; provided for by governing laws or regulations. 2) forcible resistance to any law of the Philippines; or or alloys; ------------------------------------------------------------------------ written or printed goods containing any threat to take the life of, or e) Any adulterated or misbranded food or goods for human Geographic Indications; - inflict bodily harm upon any person in the Philippines; consumption or any adulterated or misbranded drug in Types of SEE : CMO 09-2015 “Strict Enforcement of Rules violation of relevant laws and regulations; Industrial Designs; (b) (1) Goods, instruments, drugs and substances designed, intended Intellectual Concerning Regulated Imports or f) Infringing goods as defined under the Intellectual Property Properties Patents; adapted for producing unlawful abortion, or Code and related laws; and VISIT : http://customs.gov.ph/regulated-imports- (2) any printed matter which advertises, describes or gives direct or (RA 8293) list indirect information where, how or by whom unlawful abortion is committed; g) All other goods or parts thereof which importation and Layout-Designs (Topographies) of exportation are explicitly prohibited by law or rules and Integrated Circuits; and c) Written or printed goods, negatives or cinematographic films, regulations issued by the competent authority. SEE ALSO: R.A. 6969 “Toxic Substances and photographs, engravings, lithographs, objects, paintings, drawings Hazardous and Nuclear Waste Control Act of 1990” or other representation of an obscene or immoral character; Protection of Undisclosed (SEE: CAO 09-2008; CMO 21-2019 “Prohibition on the Importation of Information (TRIPS). Neutralized Phospogypsum”) Copyright (or author’s right) is a legal term used to "Trade name" means the name or designation A patent is an exclusive right granted for an describe the rights that creators have over their literary identifying or distinguishing an enterprise; (RA 8293) invention, which is a product or a process that Related Law: RA 8293 and artistic works. Works covered by copyright range from books, music, paintings, sculpture, and films, to computer provides, in general, a new way of doing Sec. 190.3. Subject to the approval of the programs, databases, advertisements, maps, and A geographical indication (GI) is a sign used on Secretary of Finance, the Commissioner of products that have a specific geographical origin and something, or offers a new technical solution to a technical drawings. (WIPO) Customs is hereby empowered to make rules and possess qualities or a reputation that are due to that problem. To get a patent, technical information "Mark" means any visible sign capable of distinguishing origin. In order to function as a GI, a sign must identify about the invention must be disclosed to the regulations for: the goods (trademark) or services (service mark) of an a product as originating in a given place. (WIPO) enterprise and shall include a stamped or marked public in a patent application. (WIPO) 1) preventing the importation of articles the container of goods; (RA 8293) Industrial design is any composition of lines or colors importation of which is prohibited under this "Collective mark" means any visible sign designated as or any three-dimensional form, whether or not Integrated circuits – commonly known as Section and under treaties and conventions to such in the application for registration and capable of associated-with lines or colors: Provided, That such “chips” or “micro-chips” – are the electronic which the Philippines may be a party; and composition or form gives a special appearance to and distinguishing the origin or any other common can serve as pattern for an industrial product or circuits in which all the components (transistors, characteristic, including the quality of goods or services of 2) seizing and condemning and disposing of the handicraft. (RA 8293) diodes and resistors) have been assembled in a different enterprises which use the sign under the control same in case they are discovered after they of the registered owner of the collective mark; (RA 8293) certain order on the surface of a thin have been imported. semiconductor material (usually silicon). (WIPO) Atty. Norberto V. Castillo, CB, MBA Page 3 of 4  CLAP CUSTOMS REVIEW AND CENTER FOR PROFESSIONAL DEVELOPMENT in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila Contacts - Globe: 09063811016 / 09068172757 Email: [email protected] FB: www.facebook.com/clap.stacruz/ Section 119. Restricted Importation, and Exportation Section 119. Restricted Importation, and Exportation (a) Dynamite, gunpowder, ammunitions and other Section 119. Restricted Importation, d) (1) Marijuana, opium, poppies, coca leaves, and Exportation explosives, firearms and weapons of war, or parts heroin or other narcotics or synthetic drugs thereof; which are or may hereafter be declared habit d) Opium pipes or parts thereof, of whatever (b) Roulette wheels, gambling outfits, loaded dice, forming by the President of the Philippines, or material; and marked cards, machines, apparatus or mechanical (2) any compound, manufactured salt, devices used in gambling or the distribution of e) Any other goods whose importation and derivative, or preparation thereof, exportation are restricted. money, cigars, cigarettes or other goods when such distribution is dependent on chance, including jackpot and pinball machines or similar except when imported by: contrivances, or parts thereof; The restriction to import or export the above (i) the government of the Philippines or stated goods shall include the restriction on (c) Lottery and sweepstakes tickets, except (ii) any person duly authorized by the their transit. advertisements thereof and lists of drawings Dangerous Drugs Board, for medicinal therein; purposes; Atty. Norberto V. Castillo, CB, MBA Page 4 of 4  CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC. in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila Contacts - Globe: 09063811016 / 09068172757 Email: [email protected] FB: www.facebook.com/clap.stacruz/ 2023 CUSTOMS LAWS REVIEW – DAY 2 Customs Administration Essentials Part 2 Atty. Norberto V. Castillo, CB, MBA BUREAU OF CUSTOMS: GENERAL ADMINISTRATION Section 200. Chief Officials of the Bureau The Bureau shall be headed by a Commissioner and shall be assisted by at least four (4) but not more than six (6) Deputy Commissioners. The Commissioner shall be appointed by the President of the Philippines. The Deputy Commissioners shall also be appointed by the President and at least majority of whom shall come from the ranks of the Bureau. Section 201. Powers and Functions of the Commissioner (a) Exclusive and original jurisdiction to interpret the provisions of this Act, in collaboration with other relevant government agencies, subject to review by the Secretary of Finance; (b) Exercise any customs power, duties and functions, directly or indirectly; (c) Review any action or decision of any customs officer performed pursuant to the provisions of this Act; (d) Review and decide disputed assessments and other matters related thereto, subject to review by the Secretary of Finance and exclusive appellate jurisdiction of the Court of Tax Appeals (CTA); e) Delegate the powers vested under this Act to any customs officer with the rank equivalent to division chief or higher, except for the following powers and functions: (1) Promulgation of rules and regulations; (2) Issuance, revocation or modification of rulings; and (3) Compromise or abate of customs obligations. (See: Deputation Order 2018-04-019) f) Assignment or reassignment of any customs officer subject to the approval of the Secretary of Finance; Provided, That District Collectors and other customs officers that perform assessment functions shall not remain in the same area of assignment for more than three (3) years; and g) Perform all other duties and functions as may be necessary for the effective implementation of this Act and other customs related laws. CSO 01-2018. – Creation of Internal Affairs and Integrity Unit under the Office of the Commissioner Functions: 2.1. Investigate complaints against BOC Personnel, receive and gather evidence in support of an open investigation; 2.2. Conduct motu propio investigation on incidents where evidence in the prosecution of smuggling cases was compromised, tampered with, obliterated, or lost while in the custody of BOC Personnel; 2.3. Conduct lifestyle checks on BOC Personnel Section 202. Functions of the Bureau (a) Assessment and collection of customs revenues from imported goods and other dues, fees, charges, fines and penalties accruing under this Act; (b) Simplification and harmonization of customs procedures to facilitate movement of goods in international trade; (c) Border control to prevent entry of smuggled goods; (d) Prevention and suppression of smuggling and other customs fraud; (e) Facilitation and security of international trade and commerce through an informed compliance program; (f) Supervision and control over the entrance and clearance of vessels and aircraft engaged in foreign commerce; (g) Supervision and control over the handling of foreign mails arriving in the Philippines for the purpose of (1) collecting revenues and (2) preventing the entry of contraband; (h) Supervision and control on all import and export cargoes, landed or stored in piers, airports, terminal facilities, including container yards and freight stations for the (1) protection of government revenue and (2) prevention of entry of contraband; Atty. Norberto V. Castillo, CB, MBA Page 1 of 3  CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC. in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila Contacts - Globe: 09063811016 / 09068172757 Email: [email protected] FB: www.facebook.com/clap.stacruz/ (i) Conduct a compensation study with the end view of developing and recommending to the President a competitive compensation and remuneration system to attract and retain highly qualified personnel, while ensuring that the Bureau remains financially sound and sustainable; (j) Exercise of exclusive original jurisdiction over forfeiture cases under this Act; and (k) Enforcement of this Act and all other laws, rules and regulations related to customs administration. Section 203. Annual Report of the Commissioner The Commissioner shall submit to the President, the Congress of the Philippines and the NEDA an annual report on the performance of the Bureau, on or before March 31 of the following year. Section 204. Promulgation of Rules and Regulations (quasi-legislative function) The Commissioner, subject to the approval of the Secretary of Finance, shall promulgate rules and regulations for the enforcement of this Act. The Commissioner shall regularly prepare and publish an updated customs manual, and the rules, regulations and decisions of the Bureau. The Commissioner shall furnish the (1) Congress of the Philippines, (2) the NEDA and (3) the Tariff Commission with electronic copies of department orders, administrative orders, circulars, and rules and regulations promulgated pursuant to this Act. Requirement of furnishing the UP Law Center. Section 205. Copies of Goods Declaration The Commissioner shall regularly furnish electronic copies of all customs goods declaration processed and cleared by the Bureau the: 1) NEDA; 2) Philippine Statistics Authority (PSA); 3) Bureau of Internal Revenue (BIR); and 4) Tariff Commission Upon request, the Tariff Commission shall have access to, and the right to be furnished with copies of liquidated goods declaration and other documents supporting the goods declaration as finally filed in the Commission on Audit (COA). Customs Districts and Ports of Entry SEE: CAO 05-2022, CAO 04-2020, CAO 04-2014, CAO 05-2008, CAO 02-2008, CAO-02-2002 Section 206. Customs Districts For administrative purposes, the Philippines shall be divided into as many Customs Districts as necessary, the respective limits of which may be changed from time to time by the Commissioner, with the approval of the Secretary of Finance. Each Customs District shall be supervised by one (1) District Collector, assisted by as many Deputy District Collectors as may be necessary. The choice of the location of a District Office, its business hours and the staffing pattern thereof, shall be based on the particular requirements of each district. Section 207. Ports of Entry All ports of entry shall be under the supervision and control of a Customs District. A District Collector shall be assigned in the principal ports of entry while a Deputy District Collector may be assigned to other types of ports of entry. Principal ports of entry: (M2IND BL2AS3T C3Z) 1) Aparri (EO 707) 7) Iloilo 13) San Fernando 2) Batangas 8) Legaspi 14) Subic 3) Cagayan de Oro 9) Limay (EO727) 15) Surigao 4) Cebu 10) Manila 16) Tacloban 5) Clark (EO 55) 11) Manila ICP 17) Zamboanga 6) Davao 12) NAIA Atty. Norberto V. Castillo, CB, MBA Page 2 of 3  CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC. in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila Contacts - Globe: 09063811016 / 09068172757 Email: [email protected] FB: www.facebook.com/clap.stacruz/ Section 208. Power of the President to Open and Close Any Port Upon the recommendation of the Secretary of Finance, the President may open or close any port of entry. Upon closure of a port of entry, the existing personnel shall be reassigned by the Commissioner, subject to the approval of the Secretary of Finance. Section 209 Assignment of Customs Officers and Employees to Other Duties The Commissioner, with the approval of the Secretary of Finance, may assign any employee of the Bureau to any port, service, division or office of the Bureau within the Bureau's staffing pattern or organizational structure, or may assign any employee other duties: Provided, That such assignment shall: ✓ not affect the employee's tenure of office; ✓ not result in a change of status; ✓ not result in demotion in rank ✓ not result in salary deduction. (See: CMO 26-2018 – Transfer of Operational Control over Principal Appraisers to the Import Assessment Service) Section 210. Duties of the District Collector. - (1) Ensure entry of all imported goods at the customs office; (2) Prevent importation and exportation of prohibited goods; (3) Ensure legal compliance of regulated goods and facilitate the flow of legitimate trade; (4) Examine, classify and value imported goods; (5) Assess and collect duties, taxes and other charges on imported goods; (6) Hold and dispose imported goods in accordance with this Act; (7) Prevent smuggling and other customs fraud; and (8) Perform other necessary duties that may be assigned by the Commissioner for the effective implementation of this Act. Subject to the supervision and control of the District Collector, the duties and functions of the District Collector may be delegated to the Deputy District Collector. The Deputy District Collector assigned to a sub-port shall be under the supervision and control of the District Collector of the corresponding principal port. Section 211. Temporary Succession of Deputy District Collector to Position of Acting District Collector (1) In the absence or disability of a District Collector or, (2) in case of vacancy, the Deputy District Collector shall temporarily discharge the duties of the District Collector. ❖ Should there be no Deputy District Collector, the District Collector shall designate, in writing, a senior ranking customs officer to temporarily perform the duties of the District Collector. ❖ In case there are two or more senior ranking customs officers with equal length of service, a drawing of lots shall be undertaken. The District Collector shall report the designation to the Commissioner within twenty-four (24) hours after the designation. Section 212. Records to be Kept by Customs Officers District Collectors, Deputy District Collectors, and customs officers acting in such capacities must maintain permanent records of official transactions and turn-over all records and official papers to their respective successors or other authorized officials. Section 213. Reports of the District Collector to the Commissioner The District Collector shall: (a) report to the Commissioner any (1) probable or (2) initiated litigation within the Customs District; and (b) submit regular monthly reports on all district transactions. Atty. Norberto V. Castillo, CB, MBA Page 3 of 3  CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC. in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila Contacts - Globe: 09063811016 / 09068172757 Email: [email protected] FB: www.facebook.com/clap.stacruz/ 2023 CUSTOMS LAWS, RULES, REGULATIONS, ETHICS and CUSTOMS BROKER PRACTICES REVIEW – DAY 3 Customs Administration Essentials Part 3 Atty. Norberto V. Castillo, CB, MBA Section 300. Customs Jurisdiction The Bureau shall exercise jurisdiction over: 1) all seas within Philippine territory; 2) all coasts, ports, airports, harbors, bays, rivers and inland waters whether navigable or not from the sea; and 3) any means of conveyance. The Bureau shall pursue imported goods subject to seizure during its transport by land, water and air and shall exercise jurisdiction as may be necessary. When a vessel or aircraft becomes subject to seizure for violation of this Act, a pursuit of such vessel or aircraft which began within the territorial waters or air space may continue beyond the same, and the vessel or aircraft may be seized in the high seas or international air space. (hot pursuit) Section 301. Customs Control Over Goods All goods, including means of transport, entering or leaving the customs territory, regardless of whether they are liable to duties and taxes, shall be subject to customs control. In the application of customs control, the Bureau shall: ✓ employ audit-based controls and risk management systems; ✓ use automation to the fullest extent possible; and ✓ adopt a compliance measurement strategy to support risk management. The Bureau shall seek to cooperate and conclude mutual administrative assistance agreements with other customs administrations to enhance customs control. (International) The Bureau shall consult, coordinate, and cooperate with other government regulatory agencies, free zones authorities, and the customs stakeholders, in general, to enhance customs control. (domestic) Section 302. Enforcement of Port Regulation of the Bureau of Quarantine Customs officials and employees shall cooperate with the quarantine authorities in the enforcement of the port quarantine regulations promulgated by the Bureau of Quarantine and shall give effect to the same insofar as connected with matters of shipping and navigation. Seizure of Plants (Lack of Quarantine Permit (SPS) from BPI, May 2021) Seizure of Meat (Lack of Quarantine Permit (SPS) from BAI, February 2021) Section 303. Control Over Premises Used for Customs Purposes The Bureau shall, for customs purposes, have exclusive control, direction and management of customs offices, facilities, warehouses, ports, airports, wharves, infrastructure and other premises in the Customs Districts, in all cases without prejudice to the general police powers of the local government units (LGUs), the Philippine Coast Guard and of law enforcement agencies in the exercise of their respective functions. Section 304. Power of the President to Subject Premises to Customs Jurisdiction When public interest requires, the President may, by executive order: ✓ declare any public wharf, landing place, infrastructure, street or land, in any port of entry under the jurisdiction of the Bureau as may be necessary, for customs purposes; ✓ to authorize a port or terminal operator to transfer overstaying cargoes in an inland depot or terminal. Section 305. Trespass or Obstruction of Customs Premises No person shall enter or obstruct a customs office, warehouse, port, airport, wharf, or other premises under the control of the Bureau without prior authority, including the streets or alleys where these facilities are located. Section 306. Special Surveillance for the Protection of Customs Revenue and Prevention of Smuggling The Bureau shall conduct surveillance on: 1. vessels or aircrafts entering Philippine territory; and 2. imported goods entering the customs office Provided, That the function of the Philippine Coast Guard to prevent and suppress the illegal entry of these goods, smuggling and other forms of customs fraud and violations of maritime law and its proper surveillance of vessels entering anchor leaving Philippine territory as provided in Republic Act No. 9993 shall continue to be in force. CUSTOMS FEES AND CHARGES Section 1300. Customs Dues, Fees and Charges For services rendered and documents issued by the Bureau, dues, fees and charges shall be collected as may be provided under existing regulations issued by the Secretary of Finance, upon the recommendation of the Commissioner. Section 1301. General Provision on the Authority to Increase or Decrease Dues, Fees and Charges The Secretary of Finance may, upon the recommendation of the Commissioner, increase or decrease the dues, fees and charges collectible by the Bureau to protect the interest of the government. See: CMO 30-2019 (Allowed Fees and Charges Imposed and Collected by the BOC) Atty. Norberto V. Castillo, CB, MBA Page 1 of 3  CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC. in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila Contacts - Globe: 09063811016 / 09068172757 Email: [email protected] FB: www.facebook.com/clap.stacruz/ Miscellaneous Provisions Section 1500. Information, Decisions, and Rulings The Bureau shall ensure that all information of general application pertaining to customs, including revisions or amendments thereto, shall be available to the general public. Section 1501. Period to Issue Ruling Unless otherwise provided in this Act, the issuing authority shall act on the application for ruling within thirty (30) days from receipt of the application and supporting documents as may be required by regulation. Within three (3) days from issuance of a ruling, the issuing authority shall notify the requesting party of such ruling. Section 1502. Publication and Confidentiality of Certain Information in Ruling The Bureau and the Commission shall regularly publish its rulings in a manner accessible to the public. For this purpose, each application for ruling shall be assigned a title and unique ruling number for easy reference. The publication shall contain information on the goods involved, the body or summary of the ruling, particularly the grounds relied upon to support the ruling, but shall exclude: 1) the name of the requesting party; and 2) other information which by their very nature are confidential, including those which the requesting party indicated in its application as confidential in nature. Except in the context of judicial proceedings, any disclosure of confidential information under this section shall not be made except upon the written consent of the beneficiary of the advance ruling. Section 1503. Duty of District Collector to Report Rulings to the Commissioner When any new or unsettled question shall be determined by a District Collector, and if the matter is not otherwise appealed for review in the ordinary course, the District Collector shall notify the Commissioner of the decision and submit an adequate statement of the facts involved. Section 1504. Application of Established Ruling or Decision 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 shall not take effect until thirty (30) days after public notice shall have been given in the form of a published decision. When the ruling or decision favors the taxpayers, it shall become effective immediately. Section 1505. Authority of Official to Administer Oaths and Take Testimony The 1) Commissioner, 2) District Collectors, 3) their deputies, and 4) other customs officers especially deputized by the District Collector shall have authority to: ✓ administer oaths; ✓ take testimony in connection with any matter within the jurisdiction of the Bureau; and ✓ may require the production of relevant papers, documents, books and records in accordance with law. Section 1506. General Security In cases where securities are required to be given the District Collector, instead of requiring separate special security where transactions of a particular party are numerous, may accept general security extending over such periods of time and covering such transactions of the party in question as may be satisfactory to the District Collector. Section 1507. Security The Bureau shall prescribe the forms and amount of security required to guarantee the payment of duties and taxes and other obligations. Any party required to provide security shall have the option to choose from any form of security prescribed by the Bureau. The Bureau may not require security if satisfied that an obligation to the Bureau will be fulfilled, but shall require and accept a general security from declarants who regularly declare goods at different offices in customs territory under such terms and conditions as maybe determined by the Commissioner. The required amount of security shall be the lowest possible and shall not exceed the amount of imposable duties, taxes and other charges. When the obligation under which the security was required has been satisfied, the security shall be discharged immediately. Section 1508. Customs Service Fees Customs personnel may be assigned by a District Collector to render overtime work and other customs services and shall be paid for such services by the Bureau according to service fees fixed by the Commissioner and approved by the Secretary of Finance. The Bureau may charge additional customs service fees when applicable, subject to the rates prescribed under existing rules and regulations. Section 1509. Testimony in Writing When testimony is taken in any proceeding or matter under the authority of the Bureau, either party may require that the testimony shall be made in writing, and when so taken, the written testimony shall be filed with the Office of the District Collector and to be preserved for use or reference until the final decision has been reached. Section 1510. District Collector Not Liable in Respect to Ruling in Customs Cases Every District Collector or other officials of the Bureau shall not be in any way personally liable on account of any official ruling or decision as to which the person claiming to be aggrieved has the right to obtain either an administrative or judicial review. Except for misdelivery of goods, a District Collector may not, in the absence of abuse of authority, be liable to any person for any loss occasioned either by the official act or the acts of the subordinates. Atty. Norberto V. Castillo, CB, MBA Page 2 of 3  CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC. in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila Contacts - Globe: 09063811016 / 09068172757 Email: [email protected] FB: www.facebook.com/clap.stacruz/ Section 1511. Interest Prohibited to be Held by Customs Employees Any person employed under the authority of the government in the assessment of duties, taxes, fees and other charges in connection with, imports or exports: ✓ Shall not own, either in whole or in part, any vessel or aircraft; ✓ Shall not act as attorney, agent or consignee for the owner of any vessel or aircraft or of any cargo loaded on board the vessel or aircraft; ✓ Shall not import or be involved, directly or indirectly, in the importation of any goods for sale into the Philippines. Section 1512. Reward to Persons Instrumental in the Actual Collection of Additional Revenues Arising from the Discovery of Violations of this Act 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 to the customs and non-customs informers or whistleblowers who are instrumental in the collection of additional revenues arising from the discovery of violations of this Act in accordance with the rules and regulations to be issued by the Secretary of Finance. Section 1513. Outsourcing of Non-Sovereign Customs Functions to Private Entities Subject to the approval of the Secretary of Finance, the Bureau may outsource any of its non-sovereign and ancillary function to a qualified and competent private entity in accordance with government rules on service procurement. See: CAO 10-2019 (Outsourcing of Non-sovereign Functions to Private Entities) Section 1514. International Standards and Best Practices The Bureau may adopt international standards and best practices in customs administration laid down by international agreement or convention pertaining to trade facilitation, supply chain security, and related matters, whether or not the Philippines is a signatory to such international agreement or convention. Congressional Oversight Committee Section 1700. Congressional Oversight Committee The Congressional Customs and Tariff Oversight Committee, is hereby constituted. The Committee shall be composed of the: 1. Chairpersons of the Committee on Ways and Means of the Senate and House of Representatives; and 2. 4 additional members from each House, to be designated by the Senate President and the Speaker of the House of Representatives, respectively. The Committee shall, among others, in aid of legislation: (a) Monitor and ensure the proper implementation of this Act; (b) Review the collection performance of the Bureau; and (c) Review the implementation of the programs of the Bureau. In furtherance of these objectives, the Committee shall require the Bureau to submit all pertinent information which includes: (1) Industry audits; (2) Collection performance data; and (3) Status report on administrative, civil and criminal actions initiated against persons. FINAL PROVISIONS Section 1800. Implementing Rules and Regulations The Secretary of Finance shall, upon the recommendation of the Commissioner, promulgate the necessary rules and regulations for the effective implementation of this Act. Section 1801. Transitory Provisions All suits, proceedings, or prosecutions whether civil or criminal, for causes arising or acts done or committed prior to the effectivity of this Act, shall be commenced and prosecuted within the same time in the same manner and with the same effect as if this Act had not been enacted and all rights acquired, offenses committed, and penalties or forfeitures or liabilities waived prior to the said effectivity shall not be affected thereby. Section 1802. Saving Clause All other laws, acts, executive orders, and Customs Administrative Orders (CAOs), Customs Memorandum Orders (CMOs), orders, memoranda, circulars, rules and regulations issued by the Bureau, under the provisions of Presidential Decree No. 1464, otherwise known as the TCCP, not inconsistent with the provisions of this Act, shall remain valid unless the same will be repealed or amended accordingly, pursuant to the provisions of this Act. Section 1803. Repealing Clause Presidential Decree No. 1464, otherwise known as the TCCP, and Presidential Decree No. 1853 which require any applicant for letter of credit covering imports to deposit the full amount of duties due on the importation, are hereby expressly repealed. All other laws, acts, presidential decrees, executive orders, rules and regulations or parts thereof inconsistent with the provisions of this Act are hereby expressly repealed, amended or modified accordingly. Section 1804. Separability Clause If any provision of this Act is declared invalid or unconstitutional, the remaining provisions or parts shall remain in full force and effect. Section 1805. Effectivity This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation. Atty. Norberto V. Castillo, CB, MBA Page 3 of 3  CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC. in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila Contacts - Globe: 09063811016 / 09068172757 Email: [email protected] FB: www.facebook.com/clap.stacruz/ 2023 CUSTOMS LAWS, RULES, REGULATIONS, ETHICS and CUSTOMS BROKER PRACTICES REVIEW – DAY 4 Customs Administration Essentials Part 4 Atty. Norberto V. Castillo, CB, MBA EXERCISE OF POLICE AUTHORITY SEE: CAO 03-2019, CMO 37-2021, CMO 33-2021, CMO 39-2021. Important Terminologies Completion of Mission – refers to the accomplishment of the Mission Order in accordance with the Execution Plan. Controlled Delivery – the investigative technique of allowing an unlawful or suspect consignment of any prohibited or regulated articles defined under the CMTA and other laws enforced by the Bureau, or property believed to be derived directly or indirectly from any customs-related offense, to enter into, pass through or exit out of the country under the supervision of an authorized officer, with a view to gather evidence aimed at identifying any person involved in smuggling-related offenses and to facilitate the prosecution of the offender. Constructive Customs Custody – refers to the situation where, falling short of physical seizure or possession, the Customs Officers and the owner of the goods enter into a written agreement after the inventory to the effect that the goods, subject of a Letter of Authority shall not be removed or disposed of pending disposition or resolution on the issue of whether proper payment of duties and taxes has been made. Deputization Order – refers to the written order signed by the Commissioner of Customs authorizing named officers or members of the AFP or other selected national law enforcement agencies, to assist in the exercise of customs police authority particularly the power to search, seize, and arrest in specified areas outside of customs premises. Diversion of goods – refers to an act of bringing bonded articles to some place other than its intended destination without prior authority from the Bureau. It also covers imported goods for admission into free zones, local transit for immediate exportation, which are illegally introduced into domestic market without compliance with customs formalities or without payment of duties and taxes. Dwelling house- refers to any building or structure exclusively devoted to rest and comfort, as distinguished from places devoted to business or offices. Execution Plan (EXEPLAN) – refers to a definite target-specific activity, usually short term, conducted in relation to an intelligence project. Letter of Authority- refers to a written authorization signed by the Commissioner identifying the customs officers authorized to demand evidence of payment of duties and taxes on imported goods openly offered for sale or kept in storage. Mission Order - refers to the written directive or order issued by the Commissioner of Customs or other customs officer authorized in writing by the Commissioner, to carry out specific instructions given to any customs officer, or any deputized officer who must be a government employee holding regular plantilla position. Probable Cause – refers to the reasonable ground of suspicion, supported by circumstances sufficiently strong in themselves to warrant a cautious man in the belief that the person accused is guilty of the offense with which he is charged. It may also refer to the existence of such facts and circumstances which could lead a reasonably discreet and prudent man to believe that an offense has been committed and the items or objects sought in connection with said offense or subject to seizure and destruction by law is in the place to be searched. Reasonable cause – refers to that which an ordinary person of average intelligence and sound mind would believe. Search warrant – refers to an order in writing, issued in the name of the People of the Philippines, signed by a judge of a competent court and directed to a peace officer, commanding him to search for certain personal property and bring it before the Court. Section 214. Persons Exercising Police Authority The following persons are authorized to effect search, seizure, and arrest: (a) Officials of the Bureau, District Collectors, Deputy District Collectors, police officers, agents, inspectors and guards of the Bureau; (b) Upon authorization of the Commissioner, officers and members of the Armed Forces of the Philippines (AFP) and national law enforcement agencies; and (c) Officials of the BIR on all cases falling within the regular performance of their duties, when payment of internal revenue taxes is involved. For this purpose, mission orders shall clearly indicate the specific name carrying out the mission and the tasks to be carried out Section 215. Place Where Authority May be Exercised All persons exercising police authority shall only exercise powers within customs premises and within the limits of the authority granted by the Commissioner. Port and airport authorities in all ports of entry shall provide authorized customs officers with unhampered access to all premises within their administrative jurisdiction. As per CAO 03-2019 1. All premises used for customs purposes (Section 303); 2. All lands, seas, and air within Philippine Territory, including bays, coasts, harbors, rivers and inland waters whether navigable or not from the sea and any means for conveyance; 3. Free Zones, provided, proper coordination with the zone authorities shall be observed at all times. Considering the peculiar structure and organization of airports, free zones, postal facilities and seaports, the Bureau shall enter into MOA with the agencies concerned for the effective performance of their respective mandates. Atty. Norberto V. Castillo, CB, MBA Page 1 of 4  CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC. in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila Contacts - Globe: 09063811016 / 09068172757 Email: [email protected] FB: www.facebook.com/clap.stacruz/ Extent of Police Authority exercised by Customs Officers and Deputized Officers, when duly authorized 1. Section 216. Exercise of Power of Seizure Any person exercising police authority under this Act has the power and duty to seize any vessel, aircraft, cargo, goods, animal or any other movable property when the same is subject to forfeiture or when they are subject of a fine imposed under this Act. 2. Section 218. Authority to Require Assistance and Information Any person exercising police authority may demand the assistance of and request information from the (1) PNP; (2) AFP and (3) other national law enforcement agencies, when necessary, to effect any search, seizure or arrest. It shall be the duty of any police officer and other national law enforcers to give such lawful assistance. 3. Section 219. Authority to Enter Properties Any person exercising police authority may, at any time, enter, pass through, and search any land, enclosure, warehouse, store, building or structure not principally used as a dwelling house. When a security personnel or any other employee lives in the warehouse, store, or any building, structure or enclosure that is used for storage of goods, it shall not be considered as a dwelling house for purposes of this Act. As per CAO 03-2019 “For the proper exercise of Police Authority, any authorized person shall disclose the nature of the authority immediately at the start of the exercise thereof and shall exhibit the corresponding written authority issued by the Commissioner. The persons exercising Police Authority are allowed to use means as necessary to open the gate or entrance under any of the following circumstances: a. The owner or person-in-charge of the premises is missing or cannot be located within a reasonable time; b. The person in charge of the premises refuses entry of Customs Officers or deputized officers; and c. Customs Officers are of the firm belief that the persons inside the premises are engaged in activities aimed at removing any evidence regarding the presence of goods violative of the CMTA, and execution of their mission would be frustrated unless they do so. In all instances, the use of necessary means to open the gate or entrance shall be made in the presence of the Barangay Chairman or his authorized representative, and the police unit having jurisdiction over the area.” Section 217. Duty of Officer to Disclose Official Character. For the proper exercise of police authority, any authorized person shall: ✓ disclose the nature of the authority upon being questioned at the time of exercise thereof; and ✓ exhibit the corresponding written authority issued by the Commissioner. 4. Section 220. Authority to Search Dwelling House A dwelling house may be entered and searched only upon warrant issued by a Judge of a competent court, the sworn application thereon showing: ✓ probable cause; and ✓ particularly describing the place to be searched and the goods to be seized. 5. Section 221. Authority to Search Vessels or Aircrafts and Persons or Goods Conveyed Therein Any person exercising police authority under this Act may board, inspect, search and examine a vessel or aircraft and any container, trunk, package, box or envelope found on board, and physically search and examine any person thereon. In case of any probable violation of this Act, the person exercising police authority may seize the goods, vessel, aircraft, or any part thereof. 6. Non-liability for damages The duly authorized search of vessels or aircrafts and persons or goods conveyed therein shall not give rise to any claim for damage caused to the goods, vessel or aircraft, unless there is gross negligence or abuse of authority in the exercise thereof. 7. Section 222. Authority to Search Vehicles, Other Carriers, Persons and Animals Upon reasonable cause, any person exercising police authority may open and examine any box, trunk, envelope, or other container for purposes of determining the presence of dutiable or prohibited goods. This authority includes the search of receptacles used for the transport of human remains and dead animals. Such authority likewise includes the power to stop, search, and examine any vehicle or carrier, person or animal suspected of holding or conveying dutiable or prohibited goods. (customs checkpoint?) 8. Section 223. Authority to Search Persons Arriving From Foreign Countries Upon reasonable cause, travelers arriving from foreign countries may be subjected to search and detention by the customs officers. The dignity of the person under search and detention shall be respected at all times. Female inspectors may be employed for the examination and search of persons of their own sex. As per CAO 03-2019 “Upon reasonable cause based on profiling or derogatory information received, travelers arriving from foreign countries may be subjected to search and detention by the customs officers. The dignity of the person under search and detention shall be respected at all times. Female inspectors may be employed for the examination and search of persons of their own sex.” Atty. Norberto V. Castillo, CB, MBA Page 2 of 4  CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC. in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila Contacts - Globe: 09063811016 / 09068172757 Email: [email protected] FB: www.facebook.com/clap.stacruz/ 9. Customs Control Over Goods 10. Control Over Premises Used for Customs Purposes 11. Special Surveillance for Protection of Customs Revenue and Prevention of Smuggling As per CAO 03-2019 “The Bureau shall likewise ensure that proper coordination is made with the National Coast Watch Center (NCWC) created under E.O. 57 s. 2011 on matters dealing with maritime activities.” 12. Trespass or Obstruction of Customs Premises DEPUTIZATION ORDER Who may issue A Deputization Order may be issued by the Commissioner Purpose A Deputization Order authorizes specific officers or members of NLEAs to assist Customs Officers operating outside of the Customs Premises in the exercise of Police Authority. Who may be Deputized Officers and members of the following NLEAs, when necessary, may be deputized to assist the Bureau in the exercise of its Police Authority: a. Armed Forces of the Philippines (AFP); b. Bureau of Fisheries and Aquatic Resources (BFAR); c. National Bureau of Investigation (NBI); d. Philippine Coast Guard (PCG); e. Philippine Drug Enforcement Agency (PDEA); f. Philippine National Police (PNP); and g. Any other law enforcement agency which the Commissioner may hereafter deputize. Duties and Responsibilities of Deputized Officers a. To report to the Bureau suspicious movements of sea crafts and aircrafts into the Philippine Territory gathered through their operation resources; b. To report immediately to the Bureau any apprehension of suspected smuggled goods through the fastest means of communication available, e.g. by phone or short messaging system (SMS); c. To submit affidavit of Apprehension upon turn-over of the confiscated goods to the Collector or his duly authorized representative; d. All goods seized by deputized officers shall be physically turned-over to the Bureau, unless otherwise provided under existing laws, rules and regulations; and e. Any other duties and responsibilities specified by the Mission Order as may be issued by the Commissioner. Conditions and Requirements for Deputization a. Validity Period. The deputization order shall not exceed 1 year from issuance, unless earlier revoked. When the purpose for which it was issued has ceased to exist or when the deputized officers are recalled by the head his agency, the deputization is deemed automatically revoked. The renewal of the deputization order shall take effect only on the date of issuance, and shall not retroact to the date of expiration of the original or earlier Deputization Order. b. Basis and Grounds for the Issuance of a Deputization Order. i. When there is lack of sufficient manpower, expertise and logistical resources on the part of the Bureau; and ii. When the risk of security and safety is high in the area of operation c. Customs Orientation. No officer or member of any NLEA shall be deputized without first undergoing at least 1 day orientation seminar by the Bureau on relevant provisions of the CMTA. Limitation on the Exercise of Police Authority for Customs Control by Deputized Officers a. The D.O. shall be valid for not more than 1 year, unless sooner revoked, or renewed accordingly; b. It shall only be exercised in areas outside the customs premises; c. In all cases, it shall be covered by a Mission Order clearly indicating the specific names of the deputized officers, the tasks to be carried our, and the particular area covered. Any anti-smuggling operation outside customs premises not covered by a Mission Order shall be deemed illegal. d. It shall not include the exercise of the power to visit and inspect; e. Before any operation is initiated, deputized officers shall see to its that proper coordination is done with the District Collector having jurisdiction over the area of operation. ISSUANCE OF MISSION ORDER Who May Issue A Mission Order shall be issued by the Commissioner, or other Customs Officer authorized in writing by the Commissioner, and shall bear the Commissioner’s original signature or that of the authorized Customs Officer as the case may be, and the official seal of the Bureau. Atty. Norberto V. Castillo, CB, MBA Page 3 of 4  CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC. in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Roo