2024 Customs Procedures Tutorial - Day 6 PDF

CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC. in coordination with PEDREZA CUSTOMS AND TARIFF WEBINARS Room 209,...

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/ 2024 CUSTOMS DOCUMENTATION, CLEARANCE & PROCEDURES TUTORIAL DAY 6 - SPECIAL PROCEDURES PART 1 Prof. JERALD D. SOLLANO, CB, MCA SPECIAL PROCEDURES What are the importations that may be subject to Special Procedures? a. Relief Consignment under Declaration of State of Calamity; b. Traveler and Passenger Baggage; c. Postal Mails; d. Express Shipments of Air Express Operators; Shipments falling under these instances will be subjected to simplified procedures as promulgated by the Commissioner of Customs duly approved by the Secretary of Finance. Relief Consignments (DOF-DSWD-DFA-DOH-DA-DND-DEPED-BOC-NDRRMC JAO 1-2020) Salient Terms and Phrases Relief - shall refer to the act of providing interventions to alleviate, ease and/or mitigate a distressed and/or critical situation affecting persons, families, groups or communities. Relief Consignment - shall refer to the importation of relief goods no subject to duties and taxes, such as but not limited to food, medicine, equipment and materials for shelter, vehicles and other means of transport, donated or leased to government institutions and accredited private entities for distribution to the affected population or for use during relief and rescue operations in disaster-affected areas. Donation - shall refer to an act of liberality whereby a person or organization disposes gratuitously of a thing or right in favor of another who accepts it. Donated Relief Consignment - shall refer to the importation of relief goods no subject to duties and taxes, such as but not limited to food and medicine donated to the government institutions or accredited private entities for distribution to the affected population. In-Kind Donations - shall refer to relief goods (food packs and non-food items), equipment or other aid commodities such as but not limited to clothing, mats, blankets, malongs, mosquito nets, kitchen/cooking wares, water container, medicines, medical supplies, medical equipment, health kits, hygiene kits, and medical and health related products to be given directly to victims and responders of disaster/emergency. State of Calamity - shall refer to a condition involving mass casualty and/or major damages to property, disruption of means of livelihoods, roads, and normal day of life of people in the affected areas as a result of the occurrence of natural or human-induced hazard officially declared by the appropriate authority pursuant to Section 16 of RA 10121. Conditions for Availment. In order to avail of the privilege, the donations for relief consignments must satisfy the following conditions: For food, medicines, medical supplies, clothing and other in-kind donations: a. It must be donated to a Qualified-Donee; b. It must be imported during a state of national or local calamity; and c. It must be for free distribution or use of the affected population or calamity victims in the area. In order to avail of the privilege, the donations for relief consignments must satisfy the following conditions: For equipment and materials for shelter: a. It must be intended for a specific calamity or disaster-affected area during relief and rescue operations; and b. It must be leased to government institutions or registered, licensed or accredited private entities in relation to Section 7 of this JAO. Regulated Relief Consignment Entry of Regulated Relief Consignments shall be allowed subject to clearance by the concerned regulatory agencies. Prohibited and restricted importation sent as Relief Consignments, however, shall be automatically seized and proceeded against in accordance with existing customs laws, rules and regulations. Philippine International Humanitarian Assistance Reception Center One-Stop-Shop (PIHARC-OSS) Facility The PIHARC-OSS Facility created under NDRRMC Memorandum Circular No. 158, series of 2017 is adopted as the facilitation center for relief consignment. The PIHARC-OSS shall be directly responsible for the facilitation of the issuance of permits, licenses, documentations and entitlement of entry as Relief Consignments including their expedited release from customs custody. Further, the representatives of DOF-RO of the PIHARC-OSS shall be directly responsible for the facilitation of the grant of the tax and duty exemption of relief consignments. In addition to the functions provided under the NDRRMC Memorandum Circular 158, series of 2017, the Head of PIHARC-OSS shall coordinate with other government agencies concerned in the processing and documentation of the relief consignment to effect the expedited release from customs custody. Prof. JERALD D. SOLLANO, CB, MCA Page 1 of 5  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/ Unless otherwise determined by PIHAC, the main PIHARC-OSS shall be set up at NAIA. Satellite OSS facilities may also be established in ports of entry having the facilities to receive the shipments and in close proximity to the area where the state of calamity exists. Within 24 hours from the activation of the PIHARC-OSS, the difference government agencies concerned must send their authorized representatives to the port where the PIHARC-OSS facilities are identified to operate. The operations of PIHARC-OSS shall be on a 24-hour basis, 7 days a week during the response period and with fun personnel complement. Prohibited Donations The following shall not be allowed for donations: a. Used clothing, unless authorized by the DSWD; b. Infant formula, breast milk substitute, except milk used for therapeutic purposes, feeding bottles and artificial nipples and teats, unless with approval of DOH per EO 56 s. 1986; c. Those coming in directly or indirectly from tobacco industries whether in cash or in kind; d. Vehicles except special purpose vehicles to be used for relief, search and rescue operations; and e. Other goods that may be ineligible for donations under existing laws or regulations. Processing and Clearance of Relief Consignment during a National State of Calamity Processing at PIHARC-OSS 1. Prior to approval of the shipment, the Donor, Donee, or authorized representatives shall inform in writing the PIHARC-OSS thru the DFA of the incoming donation. 2. The following requirements shall be submitted to the PIHARC-OSS for evaluation: a. Deed of Donation or Letter of Intent to Donate the Goods; b. Deed of Acceptance by the accredited Donee; c. Copy of the SAD; d. Bill of Lading or Airway Bill; e. Itemized Packing List (for foodstuff and medicines, include expiry dates); f. Commercial or Non-Commercial Invoice or equivalent document (Statement of Value Invoice) e.g. Pro forma Invoice, Consignment Invoice, if available; g. Written undertaking to re-export temporarily admitted goods; h. English translation of the product description; i. Standard Operating Procedures for Regional Standby Arrangements and Coordination of Joint Disaster Relief and Emergency Response Operations (SASOP) Form, if applicable; and j. Other documents that may be required by the OSS 3. Amendment of the inward foreign manifest especially in the name of consignee must be made prior to submission of the requirements to the PHIARC-OSS. 4. Upon the receipt of the documentary requirements, the PIHARC-OSS shall issue a completed Relief Consignment Supplemental Form (Annex A). The form serve as proof of entitlement to tax and duty exemptions and clearance for release in case of regulated and restricted goods. Simplified Cargo Clearance Process for Relief Consignments Within 24 hours from the receipt of Relief Consignment Supplemental Form, the Bureau shall process the release of Relief Consignment under the following simplified clearance procedure: 1. Relief Consignments shall be covered by a GD and shall be processed at IED of the port or unit concerned. The Bureau shall assign a procedure code specifically for Relief Consignments. a. Lodging, registering and checking of the GD and supporting documents may be done prior to arrival of goods. b. A provisional or incomplete GD may also be subject to completion of the said declaration within the specified period. 2. Relief Consignments may be cleared beyond the designated business hours and outside customs premises when so required under circumstances. Any corresponding penalties and surcharges arising from the importation may be compromised on post facto confirmation of the Secretary of Finance. 3. Examination of goods may only be allowed in exceptional circumstances such as when the shipment is covered by an Alert Order. Non-intrusive inspection may also be conducted when a shipment is subject to derogatory information. Regular Processing of Relief Consignment during a Local State of Calamity Unless the PIHARC-OSS is activated by the NDRRMC, processing of Relief Consignments entered during a Local State of Calamity as declared by the local sanggunian shall follow regular procedures in the processing of donations, including application for the requisite permits and licenses from the concerned regulatory agencies and the TEI from DOF. Treatment of Leased Equipment for Relief and Rescue Operations Leased equipment used directly for relief and rescue operations during the state of calamity shall be temporary allowed entry, without payment of duties and taxes, subject to the following conditions: 1. The equipment shall be from foreign governments or international humanitarian organizations; 2. The lessee-consignee shall be a Philippine Government Institution or Agency, or accredited private entities involved in humanitarian assistance; 3. The lessor and lessee-consignee shall submit a joint written commitment to re-export the leased equipment after the relief and rescue operations, provided that the period for its temporary entry shall not exceed one year. Provided further, That in case Prof. JERALD D. SOLLANO, CB, MCA Page 2 of 5  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/ the lessee-consignee is an accredited private entity involved in humanitarian assistance, a Security in an amount equivalent to the duties, taxes and other charges shall be posted, subject to applicable rules and regulations. 4. The equipment shall be fully operational and comply with the National Safety Standards; 5. The equipment shall be re-exported within the prescribed period after termination of the rescue and relief operations for which they intended to be used. Equipment previously entered as Relief Consignments shall not be allowed entry for consumption into the domestic territory unless the proper duties, taxes, and other charges have been paid. Equipment which are not re-exported within the prescribed period or for which no payment of the proper duties, taxes and other charges has been made, as the case may be, shall be proceeded against in accordance with the provisions of CMTA; and 6. Compliance with other conditions and requirements as may be imposed by the government regulatory agency concerned. Treatment of Relief Consignments Brought In by International Humanitarian Workers Goods and equipment brought in by duly registered international humanitarian workers as accompanied baggage must be properly identified and listed whether for donation or re-exportation. If for outright donation, the following requirements must be presented to avail the privilege: a. Duly Filled Up Baggage Declaration Form; b. Deed of Donation or Letter of Intent to Donate the Goods; c. Deed of Acceptance by the Accredited Donee; d. Itemized Packing List (for foodstuffs, include expiry dates); e. Commercial or Non-Commercial Invoice; and f. English translation of the product description If for re-exportation, the following requirements must be presented to avail of the privilege: a. Duly Filled Up Baggage Declaration Form; b. Itemized Packing List; c. Commercial Invoice or Statement of Value; d. Duly Filled Up Re-Exportation Commitment (REC) Form (Annex B) and Letter of Guaranty from the local counterpart or posted Security; e. English translation of the product description; f. Goods previously entered under 8.2 above but are to be subsequently donated, shall be processed under Section 800 (m) Goods for Donation under Section 800 (m) of the CMTA. Imported goods donated to or, for the account of the Philippine Government or any duly registered relief organization no operated for profit, for free distribution among the needy, upon certification by DSWD, or DepEd, or DOH, as the case may be, shall be exempt from import duty. Unless a special One-Stop-Shop is constituted for this purpose by the agencies enumerated under the immediately preceding paragraph, processing of donations under this Section shall follow the regular procedures in processing of donations, including application for requisite permits and licenses from the concerned regulatory agencies and the TEI from the DOF. The following documents shall be filed with the Bureau: a. TEI with accompanying documents; b. Goods Declaration ; c. Import Bill of Lading/Airway Bill; and d. Import Invoice/Packing List In case of processing of donations through the One-Stop-Shop, the procedure for the clearance of relief goods under this JAO shall apply Reportorial Requirements 1. All concerned government agencies involved in the distribution of Relief Consignments shall submit to the DFA a report (Annex C) on the status, utilization and distribution of the goods within 120 working days from the deactivation of the PIHARC- OSS 2. The PIHARC-OSS shall report to the PIHAC the GD lodged, processed, and shipment cleared from all ports on a weekly basis with but not limited to the following information: a. Port of Entry; b. Country of Origin; c. Name of Donor; d. Name of Donee; e. Description of Goods; f. Total Volume in Kilogram; g. Total Value in Peso; h. Total Forgone Revenue; i. Other information that may be required 3. The PIHARC-OSS shall be assisted by a Secretariat headed by the DFA who shall prepare the necessary reports for submission to the PIHAC. Prof. JERALD D. SOLLANO, CB, MCA Page 3 of 5  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/ Traveler and Passenger Baggage Customs Clearance of Accompanied and Unaccompanied Baggages of Travelers and Crew (CAO 1-2017) General Provisions 1. All arriving travelers and crew shall accomplish a Customs Baggage Declaration Form (CBDF) to be prescribed by the Bureau which will be submitted to the assigned customs officer at the Customs arrival area for clearance. In addition to CBDF, the following additional documents must also be presented during the clearance process: a. Owner’s Pre-Departure Declaration Form or Certificate of Identification (CI) for goods previously exported; b. A duly filled out Foreign Currency Declaration for travelers carrying foreign currency in excess of USD10,000.00 or its equivalent in other foreign currency and foreign currency denominated bearer monetary instruments; c. Authorization duly issued by BSP for travelers with more than PHP50,000.00 in local currency; and d. Necessary permits/clearances from the regulatory government agency in case of restricted and regulated goods in excess of the limits allowed by the agencies 2. Foreign Travelers with Diplomatic Status, who are duly documented and acknowledged as such under the law, shall continue to avail of the privileges accorded to them by applicable convention, laws, rules and regulations as regards to traveler and passenger baggages; 3. The Bureau shall adopt and implement an advanced information and traveler record system as a risk management tool in traveler processing; 4. The Bureau shall create different lanes to cater different types of travelers which shall include but not limited to the following: a. OFWs, Returning Residents and Non-Resident Filipinos; b. Foreign Travelers which with Diplomatic Status; c. Airline Crew Members; and d. Traveler with Accompanied and/or Unaccompanied Baggage containing goods in commercial quantity 5. Baggage of arriving Travelers and Crew shall be subject to non-intrusive inspection. When necessary, scanned Baggage may be subject to physical inspection; 6. The Traveler, Crew, or any Baggage may be subject of inspection based on derogatory information or reasoned and/or random selection. For this purpose, the Bureau shall restrict the entry of unauthorized personnel into the customs arrival area, including the baggage carousel area; 7. Tobacco goods, liquors, wines, and spirits brought in as Accompanied Baggage even if within De Minimis Value, shall be subject to Excise Tax. Whenever such goods are purchased at Philippine Duty Free Stores upon arrival of travelers and within the allowable quantity limits, shall no longer be assessed the duties and taxes due; 8. Dutiable goods in accompanied baggage brought in by travelers thru the airports which are intended for re-exportation may be: a. Allowed release upon posting of cash bond amounting to 100% of the assessed duties and taxes; or b. Temporarily deposited for safekeeping in the deposit facility subject to the following conditions : i. Re-exportation shall conform to the date of departure but which shall not exceed three (3) months from the date of acceptance of the goods; ii. Full payment of Service and Storage Fees upon deposit of the goods; iii. Rates of Service and Storage Fees shall be subject to periodic review and may increased or decreased upon the approval of the Commissioner; iv. Inventory of the items reflected in the appropriate form to be signed by the traveler and authorized customs officer. c. Failure to re-export the goods within the period agreed upon shall subject the cash bond and the goods to forfeiture; d. The deposit facility may be under the ownership and control of the Bureau or outsourced from a third-party provider. 9. Baggage whether brought in or sent by Qualified Filipinos While Abroad with value of more than PHP10,000.00 shall, at the option of the Filipino traveler, be governed by Section 800(g) of the CMTA insofar as the value of the Baggage and the frequency of availment is concerned. For the availment of the tax and duty exemption pursuant to said Section, a processing fee of PHP250.00 (inclusive of LRF of PHP10.00) shall be collected. The Commissioner shall periodically review the processing fee and revise the same accordingly; 10. Departing travelers with goods for export in commercial quantities shall accomplish and file with the Bureau a Special Permit to Load (SPL). For goods that will be returned, the traveler shall accomplish a simplified Owner’s Pre-Departure Declaration Form or CI for presentation upon his return to the Customs Officers at the Arrival Area. 11. Dutiable Goods that are not declared by any person arriving within the Philippines, if not imported contrary to law shall be seized and the traveler may obtain release of such goods, upon payment of a surcharge equivalent to thirty per cent (30%) of the landed cost of such goods , in addition to all duties, taxes and other charges due. Nothing in this provision shall preclude the filing of criminal action against the offender; 12. Without prejudice to other provisions of the CMTA, imported goods are deemed abandoned once the assessed duties taxes and other charges have been paid and the owner, importer or consignee or interested party after due notice, fails to claim the goods within thirty (30) days from payment. For this purpose, the Interline Operator and/or the Baggage Assistance Division operator shall report the unclaimed goods to the District Collector for disposition pursuant to the provisions of the said Act; 13. Any misdeclaration as to quantity, quality, description, weight or measurement of the goods, resulting to a discrepancy in duty and tax to be paid between what is legally determined upon assessment and what is declared, shall be subject to surcharge equivalent to two hundred fifty per cent (250%) of the duty and tax due. No surcharge shall be imposed when the discrepancy in duty is less than ten per cent (10%); 14. Any undervaluation in goods declaration, shall be imposed a surcharge equivalent to 250% of the duty and tax due. No surcharge shall be imposed when the discrepancy in duty is less than ten per cent (10%). Prof. JERALD D. SOLLANO, CB, MCA Page 4 of 5  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/ Clearance Formalities for Baggage of Specific Arriving Travelers and Crew 1. OFWs, Resident Filipinos, Returning Residents and Non-Resident Filipinos- shall undergo regular clearance formalities; 2. Crew Members- Baggage of Crew Members shall undergo mandatory physical examination; 3. Resident Aliens and other Foreign Travelers- Other travelers not falling under Sections 5.1 and 5.2 of CAO 1-2017 shall undergo clearance procedures based on traveler profiling and risk management control measures. Clearance Formalities for those availing of Section 800(f) and (g) of CMTA 1. For availment of Section 800 (f) of CMTA, the Returning Resident or OFW shall accomplish the Personal and Household Effects Declaration Form (PHED) which may be downloaded from the Bureau’s website and filled out prior to arrival; or secured from the Customs Officer at the arrival area. The duly filled out PHED Form shall be submitted to the Customs Officer manning the Customs counter at the arrival area. The PHED Form shall contain the following basic information: a. Complete name of the traveler, date of birth, citizenship, passport number, address abroad and in the Philippines, contact number and e-mail address, if any; b. Contents, quantity, unit value and total value of Baggage; c. Packing List information which shall contain an itemized listing of all goods in each box and their respective quantities and description; d. Names of accompanying family members and their respective passport numbers; e. Date of last departure from the Philippines; and f. Estimated date of arrival of the Returning Resident or OFW in the Philippines 2. For availment of Section 800 (g), the OFWs, Resident Filipinos, Returning Residents and Non-Resident Filipinos shall accomplish and Information Sheet which may be downloaded from the Bureau’s website and filled out prior to arrival or secured from the Customs Officer at the arrival area. The duly filled out Information Sheet shall be submitted to the Customs Officer manning the Customs counter in the arrival area. The Information Sheet shall contain the following basic information: a. Complete name of traveler, date of birth, citizenship, passport details, address abroad and in the Philippines, contact number and e-mail address, if any; b. Packing List Information which shall contain an itemized listing of all goods in each Balikbayan Box and their respective description, quantities, unit value and total value; c. Number of availments within the calendar years; and d. Other essential information as may be required by the Bureau Treatment of Interline Baggage Interline Baggage- refers to the Baggage received, handled and placed at the Interline Baggage Room (IBR) such as but not limited to: a. Mistagged baggage; b. Erroneously off-loaded baggage; c. Advanced or delayed baggage; d. Left behind of unclaimed baggage; e. Transit baggage for foreign destinations 1. Baggage received, handled and placed at the IBR shall be covered by an Unclaimed Baggage Report (UBR) to be issued by the Airline company, who shall furnish the copy thereof to the interline operator and the Bureau; 2. Interline Baggage shall be subject to non-intrusive inspection before storage; 3. All claimed Interline Baggage for entry into the Philippines shall be subjected to 100% physical examination by the Customs Officer in the presence of the traveler or authorized representative to determine the duties, taxes and other charges due thereon; 4. All Interline Baggage, which remained unclaimed after 30 days from arrival shall be subject to abandonment proceedings; 5. The Airline shall be required to furnish the Bureau a copy of a Property Irregularity Report (PIR) issued to the passenger for delayed Baggage In-Bond Baggage- refers to Baggage received, handled and placed at the Customs In-Bond Baggage Room (CBR) due to the following: a. Insufficient funds for payment of duties, taxes and other charges assessed; b. Lack of presentation of the required permit/clearance from the Government Agency concerned; or c. Violates the Customs rules and regulations and other related laws 1. Baggage received, handled and placed at the CBR shall be covered by a Held Baggage Receipt (HBR) which is secured from the CBR, Baggage Assistance Division and to be issued by a Customs Officer; 2. In-Bond Baggage shall be subject to physical inspection before storage; 3. All In-Bond Baggage, which are prohibited in nature, shall be turned over to the appropriate agencies; 4. All In-Bond Baggage, which remained unclaimed after 30 days from arrival shall be subject to abandonment proceedings Treatment of Transit Baggage 1. All international baggage ultimately destined to a domestic port shall be cleared ad the first port of entry in the Philippines Prof. JERALD D. SOLLANO, CB, MCA Page 5 of 5