2024 Customs Documentations, Clearance, and Procedures PDF

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WARNING AND NOTICE TO REVIEWEES WARNING AND NOTICE TO REVIEWEES (For Lecturer’s Lecture and Review Materials) (For Lecturer’s Lecture and Review Materials) Service provides, website hosts, social media’s group 2024 CUSTOMS DOCUMENTATIONS, The unauthorized copying, dissemination, sharing, administrators and members, bloggers, etc., who disseminate, CLEARANCE AND PROCEDURES uploading, downloading, and storage of Gen Z share, or provide public or unauthorized access to Gen Z Prime’s Prime’s lectures and other review materials is lectures and other review materials shall likewise be criminally strictly prohibited and will be prosecuted to the full prosecuted and charged. Among other laws, these unauthorized extent of the law, including the filing of criminal acts are punishable as online piracy under Republic Act No. 8792, charges to the court having jurisdiction of the case as otherwise known as Electronic Commerce Act, which provides for well as administrative complaints with the a minimum fine of P100,000.00 and a maximum commensurate to the damage incurred and mandatory IMPRISONMENT (NO Professional Regulatory Board for Customs Brokers. PROBATION) of six (6) months to three (3) years. 2 3 2024 CUSTOMS DOCUMENTATIONS, CLEARANCE AND PROCEDURES (CDP) REVIEW PROPER TOPICS DAYS TOPICS DAY 4- RELIEF CONSIGNMENT, RELIEF 1 GOODS DECLARATION FOR INFORMAL AND FORMAL ENTRY PROCESS AND MODES OF PAYMENT WITH UCP 600 2 PROCESSING OF GOODS DECLARATION UNDER THE e2m, FORMAL ENTRY DIVISION, ZERO CONTACT PROCESSING OF GOODS DECLARATION IMPLEMENTING REPUBLIC ACT 11032 OR THE EASE OF DOING BUSINESS AND EFFICIENT GOVERNMENT SERVICE DELIVERY ACT OF 2018 BAGGAGE CLEARANCE, 3 4 5 CONDITIONALLY TAX AND/OR DUTY EXEMPT IMPORTATION RELIEF CONSIGNMENT, BAGGAGE CLEARANCE, POSTAL ITEM, EXPORTS TRANSIT AND TRANSSHIPMENT; INLCUDING FOREIGN MERCHANDISE TRANSIT, STORES AND POSTAL ITEMS AND CONSIGNMENT 6 SERVICE PROVIDERS/THIRD PARTIES POST CLEARANCE AUDIT & PRIOR DISCLOSURE PROGRAM EXPORT FORMALITIES (DOF-DSWD-DFA-DOH-DA-DND-DEPED-BOC-NDRRMC JAO 1-2020) 7 CBW ESTABLISHMENT, CFW AND FREE ZONE OPERATIONS 8 SAD, SHIPPING, IMPORT & EXPORT DOCUMENTS 9 ATA CARNET SYSTEM 10 DRAWBACK, ABATEMENT, REFUNDS AND MISCELLANEOUS PROVISIONS 11&12 MOCKBOARDS 4 Salient Terms and Phrases Salient Terms and Phrases Salient Terms and Phrases State of Calamity - shall refer to a condition involving mass casualty and/or Donation - shall refer to an act of liberality whereby a person or Relief - shall refer to the act of providing interventions to alleviate, ease major damages to property, disruption of means of livelihoods, roads, and normal organization disposes gratuitously of a thing or right in favor of another who and/or mitigate a distressed and/or critical situation affecting persons, day of life of people in the affected areas as a result of the occurrence of natural accepts it. families, groups or communities. or human-induced hazard officially declared by the appropriate authority pursuant In-Kind Donations - shall refer to relief goods (food packs and non-food to Section 16 of RA 10121. Relief Consignment - shall refer to the importation of relief goods no items), equipment or other aid commodities such as but not limited to subject to duties and taxes, such as but not limited to food, medicine, clothing, mats, blankets, malongs, mosquito nets, kitchen/cooking wares, equipment and materials for shelter, vehicles and other means of transport, water container, medicines, medical supplies, medical equipment, health donated or leased to government institutions and accredited private entities kits, hygiene kits, and medical and health related products to be given for distribution to the affected population or for use during relief and rescue directly to victims and responders of disaster/emergency. operations in disaster-affected areas  Chapter 4: Relief Consignment Titel I: Chapter 4: Relief Consignment Conditions for Availment (c) Clearance beyond the designated hours of business or away from customs SEC. 120. Relief Consignment. – Goods such as food, medicine, equipment and offices and waiver of any corresponding charges; and For food, medicines, medical supplies, clothing and other in-kind materials for shelter, donated or leased to government institutions and accredited (d) Examination and/or sampling of goods only in exceptional circumstances. donations: private entities for free distribution to or use of victims of calamities shall be treated and entered as relief consignment. The Department of Finance (DOF) and the Department of Social Welfare and a. It must be donated to a Qualified-Donee; Development (DSWD) shall jointly issue the rules and regulations for the b. It must be imported during a state of national or local calamity; Upon declaration of a state of calamity, clearance of relief consignment shall be a implementation of this provision. matter of priority and subject to a simplified customs procedure. The Bureau shall and provide for: SEC. 121. Duty and Tax Treatment. – Relief consignment, as defined in c. It must be for free distribution or use of the affected population or Section 120, imported during a state of calamity and intended for a specific calamity victims in the area. (a) Lodging of a simplified goods declaration or of a provisional or incomplete calamity area for the use of the calamity victims therein, shall be exempt from goods declaration subject to completion of the declaration within a specified duties and taxes. period; (b) Lodging, registering and checking of the goods declaration and supporting documents prior to the arrival of the goods, and their release upon arrival; Conditions for Availment Prohibited Donations The following shall not be allowed for donations: For equipment and materials for shelter: Treatment on kinds of importation entered as relief a. Used clothing, unless authorized by the DSWD; a. It must be intended for a specific calamity or disaster-affected area during consignment relief and rescue operations; and b. Infant formula, breast milk substitute, except milk used for therapeutic Regulated Relief Consignment purposes, feeding bottles and artificial nipples and teats, unless with approval of DOH b. It must be leased to government institutions or registered, licensed or per EO 56 s. 1986; accredited private entities in relation to Section 7 of this JAO. Entry of Regulated Relief Consignments shall be allowed subject to clearance by the concerned regulatory agencies. c. Those coming in directly or indirectly from tobacco industries whether in cash or in kind; Prohibited and restricted Consignments d. Vehicles except special purpose vehicles to be used for relief, search and rescue operations; and Entry of prohibited and restricted consignments shall be automatically seized and proceeded against in accordance with existing customs laws, rules and regulations. e. Other goods that may be ineligible for donations under existing laws or regulations. ILLUSTRATION: ANSWER: ILLUSTRATION: On July 2, 2018, Typhoon Yolanda hit the Philippines and brought Yes. The action of the customs officer to assess the duties and taxes lawfully due On October 5, 2013, a 7.2 magnitude earthquake struck Bohol. irreparable damages to certain areas in Central Luzon. Five days later, The Good is proper. Compassionate Hearts, an NGO in Australia, sent emergency supplies via Camp Inc., a corporation situated in Australia, donated various food and clothing articles to the victims of Typhoon Yolanda through We Care Corp., an accredited The implementing rules and regulations governing relief consignment provides that PhilRescue, an accredited entity in the Philippines on October 10 2013, days after private entity in the Philippines. When the goods arrived at the Port of Subic, the there must be a declaration of a national or local state of calamity for goods to avail the declaration of local state of calamity in Bohol on October 8 2023. Upon arrival customs officers assessed the duties and taxes, and subjected the shipment to duty and tax exemption under relief consignment rules. at the port, the customs imposed regular import duties, but PhilRescue requested regular procedure of importation. On the other hand, We Care Corp. argued that simplified procedures, citing relief consignment rules. Do you think the action of the consignment should be subjected to a simplified customs procedure as the In this case, although the importer is an accredited agency and it is intended for the customs at the port correct? treatment for this importation falls under relief consignment. free distribution for the victims of typhoon, however, there has been no declaration of a local state of calamity. This hinders the treatment of subject goods under relief Question: consignment rules. Do you think the action of the customs officer proper? Therefore, the action of the customs officer to assess the duties and taxes lawfully due is proper.  COMPARATIVE SUMMARY Donations Relief Consignment Legal Basis Section 800 (m) of the CMTA Sections 120-121 of the CMTA ANSWER: Duty and Tax Duty-exempt Duty and Tax exempt No. The action of the customs officer to assess customs duties and taxes is not proper. Treatment SPECIAL Type of Goods Any type Food, Medicine, Equipment, Materials for shelter, Vehicles and There are three conditions for the Availment of tax incentives under relief other means of transport consignment rules: (1) It must be donated to a Qualified-Donee; (2) It must be Who may import? a. The Philippine Government; or a. Government institution; or imported during a state of national or local calamity; and (3) It must be for free b. Duly registered relief organization b. Private entity accredited by DSWD, DFA, DOH, and OCD to PROCEDURES not operated for profit accept relief consignment and conduct relief operations distribution or use of the affected population or calamity victims in the area. In this case, all of the conditions were present given that PhilRecue is an accredited When may be Anytime Only during a State of National or Local Calamity imported? entity to conduct relief operations; there was a declaration of local state of calamity Beneficiary Any person Victims of calamity issued on October 8, 2013 and subject goods are for free distribution or use of the Approving government DOF, upon certification by DSWD, Philippine International Humanitarian Assistance Reception victims of the calamity. agency DOH, or DEPED, as the case may be Center One Stop Shop (PIHARC-OSS) Theerefore, this importation must be subject for a duty and tax exemption and treated Document required to TEI RCSF avail tax exemption with a simplified customs procedure. Clearance Procedure Regular Customs Clearance Procedure Subject to a Simplified Customs Clearance Procedure Salient Terms on Traveler and Salient Terms on Traveler and Passenger Baggage Special Procedure SEC. 437. Traveler and Passenger Baggage. – Passenger Baggage Special Procedure The Bureau shall provide simplified customs procedure for traveler and baggage Traveler - any person who temporarily enters the territory of a country in which Baggage – articles, effects and other personal property of Traveler as are processing based on international agreements and customs best practices. he or she does not normally reside (”non-resident”) or who leaves that territory; necessary and appropriate for wear, use, comfort or convenience in connection and any person who leaves the territory of a country in which he or she normally with the trip and such other items as can be conveniently carried including BBB resides (“departing resident”) or who returns to that territory (“retuning resident”) with the Traveler on such trip and are accepted by the carrier for carriage. Unless Travelers shall be permitted to export goods for commercial pm-poses, subject to otherwise specified it includes both checked-in and hand-carried baggage of the compliance with the necessary export formalities and payment of export duties, taxes and charges, if any. Traveler. Crew - refers to person/s assigned by an operator to render duty on an aircraft or Accompanied baggage- Baggage, whether checked-in or hand-carried, brought vessel during flight or voyage duly period. by travelers and crew when leaving or arriving in the country, traveling in the same means of transport as the travelers and crew. Unaccompanied baggage- Checked-in baggage arriving or leaving before or after the traveler to whom it belongs due to delay, misrouting or other causes. CLASSIFICATION OF BAGGAGES AND POSTAL ITEM OR MAIL WHERE STORED Interline baggage – Refers to baggage received, handled and placed at the SEC. 438. Postal Item or Mail. – Postal item or mail shall include letter-post and Interline Baggage Room (IBR) such as, but not limited to: CLASSIFICATION OF BAGGAGES AND WHERE STORED parcels, as described in international practices and agreements, such as the Acts of the Universal Postal Union (AUPU), currently in force. a) Mistagged baggage; b) Erroneously off-loaded baggage; In-bound baggage – refers to baggage received, handled and placed at the Customs In-Bound Baggage Room (CBR) due to any of the following: insufficient c) Advanced or delayed baggage; funds for the payment of D&T; lack of required permit/clearance from regulatory d) Left behind or unclaimed baggage; and agency concerned, or violates the customs rules and regulations and related laws. e) Transit baggage for foreign destinations  POSTAL ITEM OR MAIL POSTAL ITEM OR MAIL WHAT MAY BE CONSIDERED AS POSTAL ITEM OR MAIL? EXPORT - shall include letter-post and parcels as described in international practices and A simplified procedure shall be used in the clearance of postal item or mail, including the agreements, such as the Acts of the Universal Postal Union (AUPU). (Sec. 438, CMTA) collection of the applicable duties and taxes on such items or goods. a generic term referring to anything dispatched under postal services including When all the information required by the customs are available in the special declaration CLEARANCE AND mail-letter post, parcel post, money orders, etc. (CAO 3-2017) form for postal items as provided in the AUPU or similar international agreements, the special declaration form and supporting documents shall be the goods declaration. Universal Postal Union (UPU) refers to the intergovernmental organization However, a separate goods declaration shall be required for the following: founded in 1874 by the Treaty of Bern as the “General Postal Union”, which, in FORMALITIES (a) Goods whose value fall within the level that the Commissioner has determined 1878, was renamed “UPU” which since 1948 has been a specialized UN agency. to be taxable and thus must be covered by a goods declaration; (CAO 3- 2017) (b) Prohibited and regulated goods; (c) Goods, the exportation of which must be certified; and (d) Imported goods under a customs procedure other than for consumption. EXPORT CLEARANCE AND DECLARATION EXPORT CLEARANCE AND DECLARATION EXPORT CLEARANCE AND DECLARATION SEC. 500. Export Declaration. – All goods exported from the Philippines, SEC. 501. Export Product to Conform to Standard Grades. – If applicable, products shall conform to export standard grades established by the SEC. 502. Lodgement and Processing of Export Declaration. – The whether subject to export duty or not, shall be declared through a competent Bureau shall promulgate rules and regulations to allow manual and electronic customs office through an export declaration, duly signed electronically or government. The packaging of the said goods shall likewise be labeled and marked, in accordance with related laws and regulations. Export declaration may lodgement and processing of the export declaration. otherwise by the party making the declaration. not be granted for goods violating the aforementioned requirements. The description of the goods in the export declaration must contain sufficient and specific information for statistical purposes as well as for the proper valuation and classification of the goods. EXPORT CLEARANCE AND DECLARATION SEC. 503. Rules of Origin. – Pursuant to the applicable rules of origin, the Bureau or any other designated government agency may determine the origin of goods for export and, if appropriate, issue the corresponding certificates of origin. However, the exporter may adopt a self-certification system: Provided, That it is duly accredited by the Bureau or any other authorized government agencies.