CM3_theo-finals.pdf

CM3 - Customs Warehousing RA 3893, Section 2 - the term warehouse shall be deemed to mean every building, structure or other protected enclosure in which rice is kept for storage. CAO 13-2019, Section 3.9 -Customs Bonded Warehouse- shall refer to warehouse facility licensed by the bu...

CM3 - Customs Warehousing RA 3893, Section 2 - the term warehouse shall be deemed to mean every building, structure or other protected enclosure in which rice is kept for storage. CAO 13-2019, Section 3.9 -Customs Bonded Warehouse- shall refer to warehouse facility licensed by the bureau to import, receive, and store, without payment of duties and taxes and under bond goods, raw materials, accessories and packing materials either for manufacture into finished products for export or storage for the account of authorized end users or client. Revised Kyoto Convention, Specific Annex D, Chapter 1, Definition -“Customs warehousing procedure” means the Customs procedure under which imported goods are stored under Customs control in a designated place (a Customs warehouse) without payment of import duties and taxes. Abandoned Goods - Expressly abandoned goods (Written) - Impliedly abandoned goods  Failure to lodge/file goods declaration  Failure to pay duties and taxes and other charges  Failure to submit clearances, licenses, and other requirements  Failure to claim duty and tax paid imported goods  Failure to mark Within the prescribed period of time. Overstaying goods Imported goods which have exceeded the allowable period of temporary storage at the terminal facility due to customs laws, rules and regulations, which resulted in the issuance of alert or hold order, warrant of seizure and detention, or such other instances as declared by the Commissioner. Authority to Operate What: Refers to the authority given by the bureau. Who and why: allowing persons, natural or juridical, to establish and operate a Customs Facility and warehouse. :without prejudice to existing contract s entered into by the terminal facility operators with other government regulatory agencies, such as but not limited to the Philippine Ports Authority (PPA), Subic Bay Metropolitan Authority(SBMA), Phividec Industrial Authority(PIA), Cebu Ports Authority(CPA) granted under existing laws. Certificate of Authority to Operate Refer to document issued by the Bureau to persons, natural or juridical, duly authorized to operate an off-dock or off- terminal CFW. Certificate of registration It refers to a document issued by the Bureau to terminal facility operators with Authority to Operate from port authorities and other regulatory agencies and have complied with the requirements prescribed under this CAO. Customs Premises It include customs offices, facilities, warehouses, ports airports, wharves, infrastructure and other areas within the customs districts over which the Bureau has exclusive control, direction and management for customs purposes. Customs Facilities and Warehouse  Seaport Temporary Storage Warehouse  Container Yard  Container Freight Station  Airport Temporary Storage Warehouse Customs facilities and warehouse Shall refer to facilities for temporary storage of goods established and authorized by the Bureau. Hazardous Goods It shall refer to substances, materials and articles covered by the international Maritime Dangerous (IMDG) and those define by law, or those by which on account of their nature, cannot be stored in a general cargo storage and requires special handling Designated Areas for Abandoned, Overstaying and Forfeited Goods within CFW- shall refer to a special area designated by a CFW where the bureau may establish a temporary storage for abandoned, overstaying, and forfeited goods. Extension or additional facility- shall refer to a separate CFW facility granted by the Bureau to an already duly authorized CFW operator to optimize capacity and efficiency in its operations Goods shall refer to articles, wares, merchandise, and any other items which are subject of importation or exportation. When the business of the port and trade requires such facilities, the District Collector, subject to the approval of the Commissioner, shall designate and establish customs warehouses for the storage of imported goods or for other special purposes. (CMTA, Title VIII, Chapter 2, Section 801) All such warehouses and premises, including the expansion, extension, additional facilities shall be subject to the supervision of the District Collector, who shall impose such conditions as may be deemed necessary for the protection of government revenue, and of the goods stored therein. Customs Bonded Warehouse  Manufacturing Customs Bonded warehouse - Industry Specific Customs Bonded warehouse - Miscellaneous Manufacturing Bonded Warehouse - Garments and textile manufacturing bonded warehouse - Customs Common bonded warehouse  Bonded Non-manufacturing warehouse??????? - Private Bonded Manufacturing Warehouse - Public Bonded Manufacturing Warehouse Application for authority to operate CBW What to file : Application to operate a CBW, including applications for accreditation as members, Subcontractor, or client exporter of an existing warehouse Where to file : District Collector where the CBW is located Content: Describing the premises, location, capacity and purpose of such establishment Approved Authority to operate - Certificate of Authority to Operate shall be display conspicuously at the Customs bonded warehouse and its extension Offices. - Certificate of Authority to Operate is valid 3 years from the date of approval of application. If the term of the lease contract submitted during the application is less than (3) years, the validity of the Authority to Operate shall be conterminous with the lease contract unless a new contract of lease with longer period is submitted. In such case, the authority to Operate shall be amended to its maximum period of (3) years counted from its date of original issuance. Denied Request of Authority to Operate The applicant may appeal on the denial of his application to the District collector (15) days from the receipt of notice of denial stating the clear grounds why the application should be approved. The District collector shall forward the complete records to the Commissioner within 5 days from the receipt of appeal. Filling of Application of Renewal of Authority to Operate CBW The application for renewal of Authority to Operate a CBW shall be filed not later than ninety (90) days but not earlier than one hundred twenty (120) days before its expiration. For CCBWs or ICBWs with more than ten (10) members or client-exporter respectively, application for renewal shall be filed not later than one hundred twenty (120) days before its expiration. Post Application Requirements. Upon submission of application for renewal of Authority to Operate, the Operator shall secure and the Bureau shall issue the required Inspection Report, Clearances or Certificate of No Accountability of the CBW. In doing so, the Bureau shall be subject to the provisions of Anti-Red Tape Act (ARTA). Penalties for late filing of renewal a. For members of CCBW and ICBW 91-119 days before expiration of the validity period = Php100,000.00 61-90 days before expiration of the validity period = Php150,000.00 31-60 days before expiration of the validity period = Php200,000.00 1-30 days before expiration of the validity period = Php250,000.00 and suspension of privilege as CBW operator. b. For other CBWs 61-89 days before expiration of the validity period = Php150,000.00 31-60 days before expiration of the validity period = Php200,000.00 1-30 days before expiration of the validity period = Php250,000 and suspension of privilege as CBW operator. Amendment of Certificate of Authority Upon the request of the CBW operator, the District Collector may amend the Certificate of Authority based on any of the following grounds: a. Change of company name; b. Change of the name of the street or building number without actual change of the physical location of the CBW; or c. Such other changes which do not substantially alter the conditions specified in the existing Authority to Operate CBW. The Commissioner shall be notified of any amendment to the Certificate of Authority to Operate CBW as approved by the District Collector. Application for Structural changes or additional facilities in CBW 1. The CBW Operator may introduce structural changes or additional facilities in the CBWs provided that the ingress and egress or the physical security feature of the CBW shall not be altered or compromised; 2. The CBW Operator shall file the application with the District Collector prior to the introduction of any structural changes or additional facilities; 3. The application shall be supported by the following documents: a. Building permit, if applicable;  b. Description of the proposed structural changes or additional facilities; c. CBW layout, estimated capacity and physical security features after the introduction of; and d. Such other documents that may be required by the District Collector in the exercise of power of supervision and control. Application for Relocation. As a general rule, any application for relocation of a CBW shall be approved by the Commissioner as recommended by the District Collector. In cases where the CBW is relocated to another structure or warehouse within the same compound or building, the application shall be approved by the District Collector concerned subject to compliance with Section 5.8.3 of this CAO. Any unauthorized relocation shall be a ground for the suspension or revocation of the Authority to Operate issued to the CBW, its members or sub-contractors, as the case may be. Requirements Prior to Operation. a. Customs Officers and Personnel. In pursuit of the supervisory and control functions over CBWs by the District Collector, assigned customs officers and personnel shall monitor and implement control measures for customs purposes, in accordance with its existing organizational structure and staffing pattern. b. Provision for a Suitable Working Space for Bureau Personnel. The CBW operator shall provide customs personnel with suitable working areas complete with office equipment and supplies necessary to perform their basic functions. c. Work Hours. Customs personnel assigned to CBWs shall strictly observe regular office hours and record their attendance in accordance with Civil Service Rules and Regulations. The CBW operator shall promptly report to the District Collector any unauthorized absences. d. Locks and Keys. The door and entrance to a CBW and the designated compartments for new materials, finished goods and wastages, rejects and by-products shall have a secured locking system which complies with the standard and specification set by the Bureau. Access to the areas shall be limited to personnel duly authorized by both the Bureau and the CBW Operator. Requirements During Operation. a. Principal Books of Accounts. The Bureau and the CBW operator shall keep and maintain Principal Books of Accounts containing the records of importation and exportation of all goods delivered to and withdrawn from a CBW. As far as practicable, the Bureau and CBW operator shall develop and maintain an ICT- enabled inventory and liquidation system of all goods delivered to and withdrawn from a CBW, which may serve as the principal books of accounts. b. Submission of the Audited Financial Statements. For monitoring purposes, the CBW operator shall submit its annual Audited Financial Statements for the immediately preceding calendar or fiscal year, as the case may be, to the District Collector not later than thirty (30) days from its filing with the Bureau of Internal Revenue. c. Stock Inventory.  All CBWs shall establish and maintain a computer-based inventory system for bonded goods which is accessible to the Bureau. d. Inspection of CBW and Bonded Goods. The District Collector may issue a Mission Order authorizing a representative to conduct inspection of the CBW and the bonded goods stored in the CBW and to examine the documents, books, and records of accounts concerning the operation of any CBW. Mission Order shall contain the names of the representative, time and date of inspection, and the documents, books, and records of accounts to be examined. Operational Provisions. 1.Goods Declaration for Warehousing. A goods declaration for warehousing shall be filed at the port where the goods for warehouse are discharged. In cases where the goods to be entered for warehousing are under the jurisdiction of another port of entry, the same goods declaration shall also act as the transit document for the transfer of the goods from the port of discharge to the other port of entry. Pending implementation of the use of multi-purpose declaration, existing procedures on the filing of goods declaration shall govern the clearance procedures for goods entered under warehousing. 2.Provisional Goods Declaration. The Bureau may allow the lodgement of a provisional goods declaration for goods entered under warehousing in accordance with the rules and regulations on the filing of a provisional goods declaration. 3.Posting of Security for Goods Stored in CBWs. For goods declared and entered under the CBW scheme, the District Collector shall require the Importer to post sufficient security equivalent to the assessed duties, taxes and other charges, as a condition for the storage and withdrawal of the bonded goods within the period prescribed by Section 811, Chapter 2, Title VIII of the CMTA, or the payment of duties, taxes and other charges upon compliance with all importation requirements. 4.Examination of Bonded Goods. Unless the goods entered for warehousing is placed under Alert Order or selected for physical or non-intrusive examination, the District Collector shall allow immediate transfer of bonded goods to the CBW where the examination shall be conducted. The Bureau shall establish a mechanism to ensure the integrity of the bonded goods during the transfer of shipment from the port of entry to the CBW. 5.Bonded to Bonded Transfer For CBMW operator which sources its raw materials from enterprises in Free Zones or from existing customs manufacturing bonded warehouse, the Bureau shall prescribe the specific form of goods declaration and supporting documents covering the transfer. 6.Withdrawal of Goods for Production The CBMW operator shall, within the prescribed storage period, apply for withdrawal of the bonded goods for production. 7.Identification of Bonded Goods Prior to Stuffing for Export. The CBW operator shall notify the District Collector in advance before any actual stuffing into a container shall be made. All goods for export by CBW shall be stuffed only upon prior examination by a customs officer who shall issue the Certificate of Identification (CI). 8.Exportation of CBW Products. The CBW operator shall lodge an export declaration for finished products which are manufactured in CBWs within the prescribed period.  For CBMW or ICBW operator which supplies its raw materials or packaging materials to enterprises in Free Zones or to existing customs manufacturing bonded warehouse, the Bureau shall prescribe the specific form of goods declaration and supporting documents to be submitted. 9. Wastages. Wastages, rejects and by-products in the manufacture of export products shall be properly accounted for and disposed of in accordance with existing rules and regulations. 10.Liquidation of Warehousing Entry and Cancellation of Bond. The CBW operator shall cause the liquidation of the warehousing entry and the cancellation of the bonds related to the finished products. The Bureau shall establish and maintain an ICT-enabled system to account for the raw materials used in the manufacture of goods and the resulting wastages for liquidation; and to monitor the posting, charging, cancellation and aging of bonds for CBMW. Finals 5.14 Period of Storage in CBWs 5.14.1 Goods entered for warehousing may remain in a CBW for a maximum period of one (1) year from the time of its arrival at the warehouse without prejudice to the provisions of Section 5.14.4. of this CAO. 5.14.2 For perishable goods, the storage period shall be three (3) months from the date of arrival at the warehouse, extendible for valid reasons, and upon written request, for another three (3) months. Imported goods shall be withdrawn from the CBWs when the necessary withdrawal permit has been filed, together with any related document as may be required by the Bureau. Goods not withdrawn after the expiration of the prescribed period shall be deemed abandoned, as provided under paragraph (e), Section 1129, Chapter 6, Title XI of the CMTA, unless the CBW operator expressly abandons the goods prior to the expiration of the period to withdraw the same within the prescribed storage period. 5.14.3 Bonded raw materials withdrawn within the prescribed storage period shall be manufactured and exported within one (1) year from the time of arrival at the CBW. Goods withdrawn within the prescribed period of one (1) year but re-exported beyond the said period shall be subject to the applicable penalties under this CAO. Bonded Raw Materials Withdrawal Time Limit: The regulation specifies that any bonded raw materials removed from the CBW must be manufactured and exported within one year from their arrival at the warehouse. Penalties for Re-exporting Beyond the Prescribed Period. 5.14.4 The Commissioner shall, in consultation with the Secretary of Trade and Industry, establish a reasonable storage period limit beyond one (1) year for particular bonded goods for manufacturing and intended for export, the processing into finished products of which requires a longer period based on industry standard and practice, subject to the approval of the Secretary of Finance. Responsibilities of CBW Operator 6.1. Operators of CBWS shall comply with the requirements of the Bureau on establishment, security, suitability and management, including stock-keeping and accounting of the goods introduced. 6.2. Upon lawful demand, the operators shall allow duly authorized representatives of the Bureau access to the premises at a reasonable time, and to inspect all documents, books and records of accounts pertaining to the operations of the CBW. 6.3. In case of loss of the goods stored in CBWS due to the operators' gross negligence or willful misconduct, the operator shall be made liable for the payment of duties and taxes due. The government assumes no legal responsibility over the safekeeping of goods stored in CBW. 6.4. Operators shall ensure a secured and safe environment for both persons and goods stored in CBWS by implementing effective security measures, such as the employment of a 24-hour security scheme and the installation of Closed Circuit Television Camera (CCTV) and similar devices. Customs Supervision Control Over CBWs 7.1. The Bureau shall exercise supervision and control over CBWs and the same shall, for all intents and purposes, be considered as extension of the customs premises insofar as the dutiable goods stored and introduced are concerned. 7.2. The Bureau however, shall not be liable for any loss or damage of the goods stored in any CBW. Section 8. Penalties. Without prejudice to the criminal and other administrative liability provided under the CMTA, the following administrative sanctions shall be imposed on the operator for the following offenses 8.1. Diversion or Unauthorized Withdrawal or Repacking. a. First Offense Duties, taxes and charges due on the goods withdrawn; and Surcharge of fifty percent (50%) of duties, taxes, customs fees, and charges, found to be due and unpaid; b. Second Offense - Suspension of warehousing privileges for six (6) months; c. Third Offense Closure of the CBW; and d. Where the withdrawal is attended with fraud Closure of the CBW. 8.2 UNAUTHORIZED RELOCATION a. First Offense Duties, taxes and charges due on the goods withdrawn; and Surcharge of fifty percent (50%) of duties, taxes, customs fees, and charges, found to be due and unpaid; b. Second Offense - Suspension of warehousing privileges for six (6) months; and c. Third Offense - Closure. Any person who enters any CBW with intent to unlawfully remove any merchandise, or who shall aid or abet such removal, shall suffer the penalties provided in Section 1401 of the CMTA, Section 1401. Unlawful Importation or Exportation.— Any person who shall fraudulently import or export or bring into or outside of the Philippines any goods, or assist in so doing, contrary to law, or shall receive, conceal, buy, sell, or in any manner facilitate the transportation, concealment, or sale of such goods after importation, or shall commit technical smuggling as defined in this Act shall be penalized by: *insert* Failure to submit the documents within the period prescribed under Section 5.6 of this CAO shall result to the closure of the CBW. However, the CBW operator may still reapply as new applicant. 8.4. Late Re-Exportation under Section 5.14.3 of this CAO. a. Up to six (6) months - 2% per month of the collectible duties and taxes counted from the date of expiration of the bond to date of actual exportation. b. Beyond six (6) months - Penal amount of the bond in addition to the 2% per month of the collectible duties and taxes from the date of expiration of the bond to date of actual exportation 8.5. Late submission of documents such as proof of re-exportation or authority to cancel bonds issued by the Commissioner and such other documents required for reconciliation or liquidation of raw materials, liquidation of entries or cancellation of re-export or surety bonds. 8.6. Without prejudice to other actions that the Bureau may file against the importer or surety company for breach of bond or take action on the importation pursuant to the CMTA, the provisions on existing regulations on fines, penalties, or surcharges shall be applied on erring importers or warehouse operators. 8.7. The penalties provided in this CAO shall be without prejudice to the criminal and other liabilities imposed under the CMTA and other laws. SECTION 4. GENERAL PROVISIONS. 4.1. Establishment of Customs Facilities and Warehouses (CFWs) When the business of the port and trade requires such facilities, the District Collector, subject to the approval of the Commissioner, shall designate and establish CFWs for the storage and/or clearance of imported goods or for other special purposes. Existing contracts of private operators with concerned government agencies and regulatory bodies, such as but not limited to the PPA, SBMA, PIA, CPA and their respective affiliates and subsidiaries, including the powers and privileges already granted by virtue of such contracts, shall not be impaired or adversely affected in the exercise of the supervisory and regulatory functions of the Bureau in accordance with the CMTA. 4.2. Supervision and Control over Customs Facilities and Warehouses All CFWs, including their expansion, extensions and additional facilities shall be considered as part of Customs Premises subject to the supervision and control of the Bureau which shall impose such conditions and other regulations as may be deemed necessary for the protection of government revenue, and of the goods stored therein. The Bureau, however, shall not be liable for any loss or damage of the goods stored in any customs facility warehouse, without prejudice to applicable provisions of law on loss of or damage to property. 4.3. TYPES OF CUSTOMS FACILITIES AND WAREHOUSES 4.3.1. Terminal Facility It is a facility duly authorized to operate ports and offer services such as, but not limited to, receiving, handling, and checking, as well as the custody and delivery of conventional breakbulk or stripped or stuffed containerized cargo over piers or wharves, in transit sheds or warehouses and open storage areas. 4.3.2. Off-Dock CFW It is a customs facility located outside the seaport established for temporary storage of goods. It is considered part of customs premises under the exclusive control, direction and management of the Bureau. It may be a container yard, container freight station, seaport temporary warehouse, airport temporary warehouse or inland container depot as defined under this Order. 4.3.3. Off-Terminal CFW It is a customs facility located outside the airport established for temporary storage of goods. It is considered part of customs premises under the exclusive control, direction and management of the Bureau. 4.3.4 Container Yard It is a facility duly authorized to accept and store container vans, loaded or empty, intended for international shipping for storage within the period allowed under applicable customs laws, rules and regulations. A container yard may be established either within the seaport or off-dock, as may be allowed under customs laws, rules, and regulations. 4.3.5. Container Freight Station It is a facility duly authorized to accept and store containers loaded with consolidated shipments, for temporary storage, examination, stripping, stuffing, and other related activities as may be allowed under customs laws, rules, and regulations. A container freight station may be established either within the seaport or off-dock, as may be allowed under customs laws, rules, and regulations. 4.3.6. Seaport Temporary Storage Warehouse It is a customs facility established within the seaport premises or off-dock for purposes of storage, examination, stripping, stuffing, or safekeeping of imported goods. 4.3.7. Airport Temporary Storage Warehouse It is a customs facility established within the airport premises or off-terminal for purposes of storage, examination, stripping, or safekeeping of imported goods. 4.3.8. Inland Container Depot (ICD) It is an off-dock CFW which is part of a terminal facility equipped for handling or temporary storage of containers, both empty or laden, for transit as may be allowed by the Bureau of an inland customs office. 5.14 Suspension or Closure of CFW 5.14.1 The District Collector shall, without prejudice to the imposition of the administrative penalties and filing of criminal cases against the responsible person, cause the suspention of closure of any CFW under the following grounds: a. In case of discontinuance requested by the CFW operator or when the conditions warrant pursuant to Section 807, Chspter 2, Title VIII of the CMTA; b. When the operator knowingly facilitates or assists in the commission of smuggling and other illegal activities in the CFW; c. In case of pilferage of goods stored in the facility; d. Failure to account for goods stored; e. Being inactive for continuos period of at least (1) year, i.e no transfer of imported goods; f. Failure to submit the required documents for renewal under Section 5.6 of this CAO; g. Violation of customs laws, rules and regulations; and h. Other practice or violation of law which negates the intended purpose fow which the CFW was established. 5.14.2 Except in cases of voluntary discontinuance, there shall be a closure or suspension proceeding to be conducted by the District Collector where due process must be observed. For this purpose, a Customs Memorandum Order (CMO) shall be issued to the outline the conduct of administrative proceedings to be instituted in such cases. 5.14.3 Upon the closure of the CFW, a careful examination of the account of the warehouse shall be made and dutiable goods stored in such premises must be removed at the risk and expense of the operator. Provided, however, that the premises shall not be relinquished, and its ise shall not be discontinued until after a careful examination of the account of the warehouse shall have been made. 5.14.4 Closure of the CFW shall be effective upon approval by the District Collector, who shall within ten (10) days, inform the Commissioner of such action in writing. The decision ordering the closure of a CFW may be appealed to the Commissioner within ten (10) days from reciept of the decision otherwise it shall be deemed final and executory. 5.14.5 Notice of discontinuance made by the operator shall not result in discharge of liability for payment of any duties, taxes, fees and other charges imposed in dutiable goods in said warehouse. 5.14.6 The owner, operator, or officers of the CFW shall not be relieved of criminal liability arising from any violation of the tariff anf customs laws and other laws enforced by the Bureau in connection with the operation. 5.14.7 Suspention or closure of CFW’s with existing contracts with government agencies and other regulatory bodies shall be governed by the provisions of the contract and the rules and regulations of the concerned government agency or regulatory bodies Section.6 Terminal Facility operators What is terminal facility operators? Terminal facility operators in such government or agencies are entities responsible for managing and operating terminals where goods and cargo are stored, loaded, and unloaded. They play a critical role in the customs process, ensuring that goods entering or leaving a country are properly documented, inspected, and cleared according to regulatory requirements. These operators typically manage Section 6. Terminal Facility Operators. Terminal facility operators with Authority to Operate granted by other government agencies and regulatory bodies shall comply with the following requirements: 6.1. Unhampered Access to Premises. Port operators shall provide authorized customs officers with unhampered access to all premises within their administrative jurisdiction 30 cognizant of the internationally accepted port safety and security rules and regulations. 6.2. Provision of Areas for Physical Examination and Non- Intrusive Inspection. Subject to the provision of Section 1111, Chapter 3, Title XI of the CMTA on the costs of physical examination of alerted goods, operators of terminal facilities shall provide suitable areas for physical examination, NII, and other customs equipment free of charge in favor of the government within a definite period of time, as agreed with private port and airport operators, if any,31 This includes suitable areas for articles that require special handling such as Dangerous or Hazardous Goods, high value items, frozen goods, Perishable Goods, or other similar articles. The areas to be designated for the conduct of physical and non- intrusive examination shall conform to the Bureau's goods clearance procedures and requirements. Designation of additional areas for examination shall take into consideration the following factors: 6.2.1. Disposition of abandoned and forfeited goods; 6.2.2. The business and commercial operations; 6.2.3. Terminal area; 6.2.4. Volume of import goods being handled for examination; 6.2.5. Safety and security; and 6.2.6. Standards for handling radioactive cargoes. 6.3. System for Temporary Storage of Abandoned and Overstaying Goods Prior to Lodgement of Goods Declaration. 6.3.1. The Commissioner in coordination with the terminal facility operator shall establish a system for temporary storage of imports prior to Lodgement of Goods declaration for Abandoned or Overstaying Goods, 32 and export goods before the actual loading to the carrying vessel. 6.3.2. Terminal facility operators shall provide suitable and secured premises for temporary storage of overstaying or abandoned goods. They shall provide authorized customs officers with unhampered access to the storage facility for temporary storage of goods taking into consideration the requirements under the International Maritime Organization (IMO), International Ship and Port Facility Security (ISPS), and other relevant international security and safety standards. 6.3.3. In case of loss, damage, or deterioration of the goods stored due to the negligence or willful misconduct of the operator, the operator shall be liable for the payment of duties and taxes due thereon, unless the loss, injury or damage is caused by force majeure or other causes beyond the operator's control. Section 6.4 Special Areas Special Areas. For the protection of revenue and to prevent the entry of prohibited goods, the Bureau may require Terminal Facility Operators to provide special areas for the following: 6.4.1. Transshipment cargoes; 6.4.2. Dangerous and hazardous goods; 6.4.3. Forfeited and abandoned goods for disposition; 6.4.4. Stripped or segregated cargoes found or suspected to be in violation of customs, laws, rules, and regulations pending final disposition; and 6.4.5. Storage,stripping, and examination of consolidated shipments. 6.5 periodic reports The Operator shall submit a periodic report containing the following information  6.5.1 Daily report on discharged and loaded containers to and from the vessels; 6.5.2 Daily report on received and delivered containers; 6.5.3 Daily report on delivered containers with weight information; and 6.5.4 Weekly report on overstaying goods. Upon written request, the port operator shall provide the Bureau with information pertaining to imports or exports stored or handled. For information which are readily available, the operator shall provide the Bureau within two (2) business days from receipt. For information which are not readily available, the operator shall provide the Bureau within five (5) business days from receipt. This period may be extended for another two (2) business days upon the approval of the Bureau and such approval shall not be unreasonably withheld. The Bureau shall specify the format of the report and may require electronic submission or other modes allowed under customs rules and regulations. For failure to provide such information within the period provided, the terminal facility operator shall be liable for a fine in the amount of Php5,000.00 per business day of delay. 6.6 Provision for a Suitable Working Space of Bureau Personnel. The CFW operator shall provide customs personnel with suitable working areas necessary to perform their basic functions. 6.7 Installation of Closed Circuit Television Cameras (CCTVs). For effective enforcement of customs laws, rules and regulation, port operators shall install CCTV cameras in critical areas inside the terminal facility to be designated by the Bureau such as ingress or egress gates, examination areas, and warehousing storage area. The storage period of CCTV footage shall be at least thirty (30) days. 6.8 security The operator shall post a Security to cover for duties and taxes due on lost or damaged goods stored or transferred to the facilities directly and solely caused by the operator in the amount of Php 100,000,000. 6.9 consultation with port authorities The Bureau shall conduct periodic consultation with the Port Authorities for the effective implementation of the jurisdictional control of the Bureau over goods stored and handled by operators of CFWs with existing contracts SECTION 7. RESPONSIBILITIES OF CFW OPERATORS 7.1 CFW operators shall comply with the requirements of the Bureau on establishment, security, suitability and management of the facility, as may be applicable, including stock-keeping and accounting of the goods transferred to and stored thereat. 7.2 CFW operators shall report to the Bureau all overstaying goods including empty containers transferred to the facility for the Bureaus appropriate action pursuant to existing rules and regulations. 7.3 Upon lawful demand, the operators shall allow duly authorized representatives of the Bureau access to the premises at a reasonable time during working hours, and to obtain data, documents, and records pertaining to the operations of the CFW. In case of loss of the goods stored in CFWs due to the gross negligence or willful misconduct of the operator, the operator shall be liable for the payment of duties and taxes due. The government assumes no legal responsibility over the safekeeping of goods stored in any customs warehouse, yard, or premises, unless due to its personnel's gross negligence or willful misconduct. 7.4 In case of loss of the goods stored in CFWs due to the gross negligence or willful misconduct of the operator, the operator shall be liable for the payment of duties and taxes due. The government assumes no legal responsibility over the safekeeping of goods stored in any customs warehouse, yard, or premises, unless due to its personnel's gross negligence or willful misconduct. SECTION 5.1.3 (g) Security Requirements Physical Security (e.g fences, gates parking , building structures, , locks and keys, lightning, alarm system , and video surveillance camera) 7.5 The CFW Operator shall be responsible for the physical transfer and security of the goods at the designated temporary storage area. All costs incurred by the operators in connection with the transfer of the goods to and from the designated temporary storage area if requested by the Bureau shall be for the account of the government subject to government accounting rules and regulations. CMTA- Crimes and Offenses Sec 1423 Removing or Repacking Goods in Warehouse - Any person who fraudulently conceals, removes, or repacks merchandise in any warehouse or fraudulently alters, defaces, or obliterates any mark or numbers placed upon packages deposited in such warehouse, or shall aid or abet any such acts, shall be punished with the penalties prescribed in Section 1418 hereof. Merchandise so concealed, removed, or repacked, or packages upon which marks, numbers or the values thereof have been so altered, defaced, or obliterated shall be forfeited in favor of the government. Sec 1424 Removing Goods from Customs Custody - Any person who enters any warehouse, or any vehicle loaded with or containing merchandise with intent to unlawfully remove therefrom any merchandise or baggage in such vessel, vehicle or warehouse or otherwise in customs custody or control, or any person who receives or transports any merchandise or baggage unlawfully removed from any such vessel, vehicle or warehouse, or shall aid or abet such removal, shall suffer the penalties provided in Section 1401 hereof. Sec 1425 Failure to Pay Duties, Taxes and Other Charges - For failure to pay the duties, taxes and other charges of an assessment within fifteen (15) days from the date of final assessment, a surcharge of ten percent (10%) of the total assessed amount or balance thereon shall be added and collected, which surcharge shall be increased to twenty-five percent (25%) If the delinquency lasts for more than one (1) year. Sec 1426 Breach of Security - Upon breach of security require d to be filed under this Act, the District Collector, subject to the approval of the Commissioner, may accept in satisfaction thereof a smaller stun than that mentioned in the penalty clause of the security, but in no case less than the amount necessary to indemnify the government for the damage occasioned by such breach. Sec 1427 Failure to Keep Importation Records and Full Access to Customs Officers. - Any person who fails to keep all the records of importations or books of accounts, business and computer systems and all customs commercial data in the manner prescribed under this Act, shall be punished with imprisonment of not less than three (3) years and one (1) day but not more than six (6) years and/or a fine of one million pesos (PI,000,000.00). This penalty shall likewise be imposed against importers and brokers who deny an authorized customs officer full and free access to such records, books of accounts, business and computer systems, and all customs commercial data including payment records, without prejudice to the imposition of the administrative sanctions by the Bureau against contumacious importers, including the authority to hold delivery or release of their imported goods. Sec 1428 Concealment or Destruction of Evidence of Fraud - Any person who willfully conceals or destroys any invoice, book, or document relating to any goods liable to duty after an inspection thereof has been demanded by the District Collector or at any time conceals or destroys any such invoice, book, or document for the purpose of suppressing any evidence of fraud therein contained, shall be penalized with imprisonment of not less than three (3) years and one (1) day but not more than six (6) years and shall be liable for a fine of not less than three hundred thousand pesos (P300,000.00) but not more than one million pesos (P1,000,000 00). Sec 1429 Other Offenses - The owner or operator of a vessel, aircraft or train shall be liable for a fine for the following acts (a) For anchoring at any dock, pier, wharf, quay, or bulkhead other than a port of entry, a fine of not less than five hundred thousand pesos (P500,000.00) but not more than one million pesos (P1,000,000.00) for overseas vessels: (b) For dumping of garbage or slops over the sides of the vessel within three (3) miles from the nearest coastline, a fine of not less than one million pesos (P1,000,000.00) but not more than ten million pesos (P10,000,000.00); (c) For dumping or causing to spread crude oil, kerosene, or gasoline in the bay or at the piers within three (3) miles from the nearest coastline, a fine of not less than one million pesos (P1,000,000.00) but not more than ten million pesos (P 10,000,000.00) for each offense; (d) For loading gasoline or any other petroleum products at a place other than that designated, by the regulations, a fine of not less than five hundred thousand pesos (P500,000.00) but not more than one million pesos (P1,000,000.00) for each offense; (e) For causing the emission and spread of harmful gas, fumes and chemicals; a fine of not less than one million pesos (P1,000,000.00) but not more than ten million pesos (P10,000,000.00) for each offense; (f) For transporting hazardous waste, radioactive waste and other toxic substances as provided under the Basel Convention and Republic Act No. 6969, otherwise known as the Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990", the penalty shall be forfeiture of the vessel in favor of the government. The fines imposed herein shall be without prejudice to the application of fines or penalties provided under special laws and regulations: Sec 1430 Violations of this Act and Rules and Regulations in General - Any person who violates any other provision of this Act or the rules and regulations issued pursuant thereto, shall be penalized with imprisonment of not less than thirty (30) days and one (1) day but not more than one (1) year, or be liable for a fine of not less than one hundred thousand pesos (P100,000.00) but not more than three hundred thousand pesos (P300,000.00), or both. If the offender is a foreigner, the offender shall be deported after serving the sentence. If the offender is a public officer or employee, the offender shall be disqualified from holding public office, from exercising the right to vote and to participate in any public election for ten (10) years.