TARIFF AND CUSTOMS CODE OF THE CUSTOMS MODERNIZATION AND TARIFF ACT

PHILIPPINES

EXERCISE OF FLEXIBLE TARIFF POWERS

TCCP: Can be exercised by the President WON CMTA: The power can be delegated to the
the Congress is in session. (Sec. 401) President subject to the condition that the
Congress is not in session. (Sec. 1608)

ADDED POWERS OF THE PRESIDENT

No such power existed Under Sec. 304 of the CMTA, when public interest
so requires, the President may, by executive
order, declare any 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 and/or to
authorize a port or terminal operator to transfer
overstaying cargoes in an inland depot or
terminal.

WORDINGS OF THE POWERS OF THE TARIFF COMMISSION

EXERCISE OF POLICE AUTHORITY

SECTION 2203. Persons Having Police SECTION 214. Persons Exercising Police
Authority. — For the effective implementation of
Authority. — For the enforcement of the
this Act, the following persons are authorized to
customs and tariff laws, the following persons are
effect search, seizure, and arrest: S
authorized to effect searches, seizures and a. Officials of the Bureau, District Collectors,
arrests conformably with the provisions of said Deputy District Collectors, police officers, agents,
laws: inspectors and guards of the Bureau;
a. Officials of the Bureau of Customs, b. Upon authorization of the Commissioner,
collectors, assistant collectors, deputy collectors, officers and members of the Armed Forces of the
surveyors, security and secret-service agents, Philippines (AFP) and national law enforcement
inspectors, port patrol officers and guards of the agencies; and
Bureau of Customs. c. Officials of the BIR on all cases falling within
the regular performance of their duties, when
b. Officers of the Philippine Navy when payment of internal revenue taxes is involved.
authorized by the Commissioner.
c. Any person especially authorized in In CMTA, the law limited the persons authorized
to effect searches, seizures, and arrest. It likewise
writing by the Commissioner.
conferred such authority to the Bureau of Internal
d. Officers generally empowered by law to Revenue that was not conferred in the TCCP law.
effect arrests and execute processes of courts,
when acting under direction of the Collector.
e. Any person especially authorized by a
Collector, subject to the restrictions stated in the
next succeeding section.
Under this law, any person authorized in
writing by the Commissioner or Collector can
effect searches, seizures and arrest. This
provision is deleted under the CMTA.

AUTHORITY TO ENTER PROPERTIES

SECTION 2208. Right of Police Officer to Enter SECTION 219. Authority to Enter Properties. —
Inclosure. — For the more effective discharge of Any person exercising police authority may, at any
his official duties, any person exercising the time, enter, pass through, and search any land,
powers herein conferred, may at anytime enter, enclosure, warehouse, store, building or structure
pass through, or search any land or inclosure or not principally used as a dwelling house.
any warehouse, store or other building, not being
a dwelling house. When a security personnel or any other
employee lives in the warehouse, store, or any
A warehouse, store or other building or enclosure building, structure or enclosure that is used for
used for the keeping of storage of articles does storage of goods, it shall not be considered as a
not become a dwelling house within the meaning dwelling house for purposes of this Act.
hereof merely by reason of the fact that a person
employed as watchman lives in the place, nor will
the fact that his family stays there with him alter
the case.

KINDS OF PROHIBITED ARTICLES

There is only one kind under the TCCP. (Sec. 102) There are 2 kinds under the CMTA -- Absolutely
Prohibited Articles (Sec. 118) and Restricted
Articles (Sec. 119)

POWERS OF THE PRESIDENT REGARDING CONDITIONALLY-FREE ARTICLES

No such power existed. Section 800: “...Provided, the President may,

upon the recommendation of the Secretary of
Finance, suspend, disallow or completely
withdraw, in whole or in part, any conditionally
free importation under this section…”

TECHNICAL DEFINITION OF AN OVERSEAS FILIPINO WORKER (OFW)

No technical definition Section 800 (g)(1): OFWs refer to holders of valid

passports duly issued by the Department of
Foreign Affairs (DFA) and certified by the
 Department of Labor and Employment (DOLE) or
the Philippine Overseas Employment
Administration (POEA) for overseas employment
purposes. They cover all Filipinos, working in a
foreign country under employment contracts,
regardless of their professions, skills or
employment status in a foreign country

SIMULTANEOUS OR SUBSEQUENT PAYMENT UNDER PROTEST

SECTION 2308. Protest and Payment upon SECTION 1106. Protest. — When a ruling or
Protest in Civil Matters. — When a ruling or decision of the District Collector or customs
decision of the Collector is made whereby liability officer involving goods with valuation, rules of
for duties, fees, or other money charge is origin, and other customs issues is made, except
determined, except the fixing of fines in seizure the fixing offines in seizure cases, the party
cases, the party adversely affected may protest adversely affected may appeal by way of protest
such ruling or decision by presenting to the against such ruling or decision by presenting to
Collector at the time when payment of the the Commissioner at the time when payment of
amount claimed to be due the Government is the amount claimed to be due the government
made, or within thirty days thereafter, a written is made, or within fifteen (15) days thereafter, a
protest setting forth his objections to the ruling written protest setting forth the objection to the
or decision in question, together with the reasons ruling or decision in question and the reasons
therefor. No protest shall be considered unless therefore.
payment of the amount due after final liquidation
has first been made.

PAYMENT OR NON-PAYMENT UNDER PROTEST

Section 2308. Protest and Payment upon Protest Section 1106. Protest. - “...Subject to the
in Civil Matters. - “...No protest shall be approval of the Secretary of Finance, the
considered unless payment of the amount due Commissioner shall provide such rules and
after final liquidation has first been made.” regulations as to the requirement for payment
or nonpayment of the disputed amount and in
case of nonpayment, the release of the
importation under protest upon posting of
sufficient security.”

ALERT ORDERS

Not provided under the old Tariff Code. SECTION 1111. Alert Orders. — Alert orders are
written orders issued by customs officers as
authorized by the Commissioner on the basis of
derogatory information regarding possible
noncompliance with this Act.

An alert order will result in the suspension of the

 processing of the goods declaration and the
conduct of physical or non-intrusive inspection of
the goods within forty-eight (48) hours from
issuance of the order. Within forty-eight (48)
hours or, in the case of perishable goods, within
twenty-four (24) hours from inspection, the
alerting officer shall recommend the continuance
of processing of goods in case of a negative
finding, or issuance of a warrant of seizure and
detention if a discrepancy between the
declaration and actual goods is found. The
Bureau's information system shall immediately
reflect the imposition or lifting of an alert order.

ARTICLES TO BE CLEARED IN AN INFORMAL ENTRY

Sec. 1302 Articles of a commercial nature SECTION 402. Goods Declaration for
intended for sale, barter or hire, the dutiable Consumption. — All goods declaration for
value of which is two thousand pesos consumption shall be cleared through a formal
(P2,000.00) or entry process except for the
less, and personal and household effects or following goods which shall be cleared through an
articles, not in commercial quantity, informal entry process:
imported in passenger's baggage, mail or (a) Goods of a commercial nature with Free on
otherwise, for personal use, shall be cleared Board (FOB) or Free Carrier At
on an informal entry whenever duty, tax or other (FCA) value of less than fifty thousand pesos
charges are collectible. (P50,000.00). Every three (3)
years after the effectivity of this Act, the
Secretary of Finance shall adjust
this amount as provided herein to its present
value, using the Consumer
Price Index (CPI) as published by the PSA; and
(b) Personal and household effects or goods, not
in commercial quantity,
imported in a passenger's baggage or mail.

PERIOD TO FILE IMPORT ENTRY

Sec. 1301. Persons Authorized to Make Import Sec. 407 - Goods declaration must be lodged
Entry. — Imported articles must be entered in the within fifteen (15) days from the date of discharge
customhouse at the port of entry within thirty of the last package from the vessel or aircraft. The
(30) days, which shall not be extendible, from the period to 􏰀le the goods declaration may, upon
date of discharge of the last package from the request, be extended on valid grounds for another
vessel or aircraft 􏰀fteen (15) days: Provided, That the request is
made before the expiration of the original period
within which to 􏰀le the goods declaration:
 Provided, however, That the period of the
lodgement of the goods declaration may be
adjusted by the Commissioner.

MISDECLARATION, MISCLASSIFICATION, UNDERVALUATION IN GOODS DECLARATION

The CMTA has increased the surcharge penalty for misdeclaration, misclassification and
undervaluation of imported goods.
Misdeclaration, Misclassification or Undervaluation of goods (where the discrepancy between the
“should be” duty and VAT payable v. the duty and VAT actually paid is more than 10%), there shall be
imposed a surcharge of 250% of the duty and tax due.

An increase from the old law to a maximum of 200% of the duty difference under the TCCP and
customs issuances. (Sec. 1400, CMTA)

There is misdeclaration when the discrepancy pertains to quantity, quality, description, weight, or
measurement of the imported goods.

Misclassification, on the other hand, exists when insufficient or wrong description of the goods or use
of wrong tariff heading was declared resulting in a discrepancy.

Undervaluation is present when:

• The declared value fails to disclose in full the price actually paid or payable or any dutiable
adjustment to the price; or
• When an incorrect valuation method is used; or
• The valuation rules are not properly observed.

Any misdeclaration, misclassification or undervaluation of imported goods resulting in a discrepancy

(in duty and tax to be paid) between what is legally determined upon assessment and what is declared
will be subject to a fixed surcharge rate of 250% of the duty and tax due (previously, 100% to 200% of
the duty due).

Surcharge, however, will not be imposed when:

• The discrepancy in duty is less than 10%; or
• The importer’s declared value and/or tariff heading/classification:
• Relied on an official government ruling; or
• Is rejected in a formal customs dispute settlement process involving difficult or highly technical
questions relating to the application of customs valuation rules and/or tariff classifications.

If the misdeclaration, misclassification or undervaluation is intentional or fraudulent (such as when a

false or altered document is submitted or when false statements or information are knowingly made),
a 500% surcharge (of the duty and tax due) will be imposed on the importer and to those who willfully
participated in the fraudulent act. The imported goods will be subject to seizure regardless of the
amount of the discrepancy.

The CMTA likewise adopts the previous rule under the TCCP, as amended, on the existence of a prima
facie evidence of fraud if the discrepancy (in duty and tax to be paid) amounts to more than 30%.
PART 3 Examination, Classification and Appraisal TITLE XIV OFFENSES AND PENALTIES
of Imported Articles CHAPTER 1 CRIMES AND OTHER OFFENSES
SECTION 1401. Designation of Packages To be Sec. 1400. Misdeclaration, Misclassification,
Examined. — Unless the Collector is of the Undervaluation, in Goods Declaration. –
opinion that the examination of a less or greater Misdeclaration as to quantity, quality, description,
proportion of packages will amply protect the weight, or measurement of the goods, or
revenues, there shall be designated for misclassification through insufficient or wrong
examination and appraisal, at least one package description of the goods or use of wrong tariff
of every invoice, and at least one package of heading resulting to a discrepancy in duty and tax
every ten packages of articles imported: to be paid between what is legally determined
Provided, That nothing in this section shall upon assessment and what is declared, shall be
preclude the examiner from examining additional subject to a surcharge equivalent to two hundred
or all the packages. fifty percent (250%) of the duty and tax due. No
surcharge shall be imposed when the discrepancy
in duty is less than ten percent (10%), or when the
declared tariff heading is rejected in a formal
customs dispute settlement process involving
difficult or highly technical question of tariff
classification, or when the tariff classification
declaration relied on an official government
ruling.

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:
• Imprisonment of a minimum of 30 days to a maximum of 12 years or a fine of a minimum
amount of P25k to as high as P50M or both.
• Unlawful importation becomes a Heinous Crime – appraised value of the goods
including DT exceeds P200M punishable by reclusion perpetua and a fine of not less than
P50M.

PART 3 Penal Provisions Sec. 1401. Unlawful Importation or Exportation. –

SECTION 3601. Unlawful Importation. — Any Any person who shall fraudulently import or
person who shall fraudulently import or bring export or bring into or outside of the Philippines
into the Philippines, or assist in so doing, any any goods, or assist in so doing, contrary to law, or
article, contrary to law, or shall receive, conceal, shall receive, conceal, buy, sell, or in any manner
buy, sell, or in any manner facilitate the facilitate the transportation, concealment, or sale
transportation, concealment, or sale of such of such goods after importation, or shall commit
article after importation, knowing the same to technical smuggling as defined in this Act shall be
have been imported contrary to law, shall be penalized by:
punished by a fine of not less than six hundred (a) Imprisonment of not less than thirty (30) days
pesos nor more than five thousand pesos and and one (1) day but not more than six (6) months,
imprisonment for not less than six months nor or a fine of not less than twenty-five thousand
more than two years and, if the offender is an pesos (P25,000.00) but not more than seventy-
alien, he shall be deported after serving the five thousand pesos (P75,000.00), or both, if the
sentence. appraised value of the goods unlawfully imported,
When, upon trial for a violation of this section, to be determined in the manner prescribed under
the defendant is shown to have or to have had this Act, including duties and taxes, of the goods
possession of the article in question, such unlawfully imported does not exceed two hundred
possession shall be deemed sufficient evidence fifty thousand pesos (P250,000.00);
to authorize conviction, unless the defendant (b) Imprisonment of not less than six (6) months
shall explain the possession to the satisfaction of and one (1) day but not more than one (1) year,
the court. or a fine of not less than seventy-five thousand
pesos (P75,000.00) but not more than one
hundred fifty thousand pesos (P150,000.00), or
both, if the appraised value of the goods
unlawfully imported, to be determined in the
manner prescribed under this Act, including duties
and taxes, exceeds two hundred fifty thousand
pesos (P250,000.00) but not more than five
hundred thousand pesos (P500,000.00);
(c) Imprisonment of not less than one (1) year and
one (1) day but not more than three (3) years, or a
fine of not less than one hundred fifty thousand
pesos (P150,000.00) but not more than three
hundred thousand pesos (P300,000.00) or both, if
the appraised value of the goods unlawfully
imported, to be determined in the manner
prescribed under this Act, including duties and
taxes, exceeds five hundred thousand pesos
(P500,000.00) but not more than one million
pesos (P1,000,000.00);
(d) Imprisonment of not less than three (3) years
and one (1) day but not more than six (6) years,
or a fine of not less than three hundred thousand
pesos (P300,000.00) but not more than one
million five hundred thousand pesos
(P1,500,000.00), or both, if the appraised value of
the goods unlawfully imported, to be determined
in the manner prescribed under this Act, including
duties and taxes, exceeds one million pesos
(P1,000,000.00) but not more than five million
pesos (P5,000,000.00);
(e) Imprisonment of not less than six (6) years and
one (1) day but not more than twelve (12) years,
or a fine of not less than one million five hundred
thousand pesos (P1,500,000.00) but not more
than fifteen million pesos (P15,000,000.00), or
both, if the appraised value of the goods
unlawfully imported, to be determined in the
manner prescribed under this Act, including duties
and taxes, exceeds five million pesos
(P5,000,000.00) but not more than fifty million
pesos (P50,000,000.00);
(f) Imprisonment of not less than twelve (12) years
and one (1) day but not more than twenty (20)
years, or a fine of not less than fifteen million
pesos (P15,000,000.00) but not more than fifty
million pesos (P50,000,000.00), or both, if the
appraised value of the goods unlawfully imported,
to be determined in the manner prescribed under
this Act, including duties and taxes, exceeds fifty
million pesos (P50,000,000.00) but not more than
two hundred million pesos
(P200,000,000.00);
(g) If the appraised value of the goods unlawfully
imported to be determined in the manner
prescribed under this Act, including duties and
taxes, exceeds two hundred million pesos
(P200,000,000.00) or if the aggregate amount of
the appraised value of the goods which are the
subject of unlawful importation committed in
more than one instance, including duties and
taxes, exceeds two hundred million pesos
(P200,000,000.00), the same shall be deemed as
a heinous crime and shall be punishable with a
penalty of reclusion perpetua and a fine of not
less than fifty million pesos (P50,000,000.00); and
(h) The penalty of prision mayor shall be imposed
when the crime of serious physical injuries shall
have been committed, and the penalty of
reclusion perpetua shall be imposed when the
crime of homicide shall have been committed by
reason or on the occasion of the unlawful
importation.

In applying the above scale of penalties, an

offender who is a foreigner shall be deported
without further proceedings after serving the
sentence. If the offender is a public officer or
employee, the penalty which is the next higher in
degree shall be imposed in addition to the
penalty of perpetual disqualification from public
office, and disqualification to vote and to
participate in any public election. If the offender
 fails to pay the fine, subsidiary imprisonment
shall be served. When, upon trial for violation of
this section, the defendant is shown to have had
possession of the goods in question, possession
shall be deemed sufficient evidence to
authorize conviction unless the defendant shall
explain the possession to the satisfaction of the
court: Provided, That each act of unlawful
importation or exportation shall be deemed as a
separate offense: Provided, however, That
payment of the tax due after apprehension shall
not constitute a valid defense in any prosecution,
under this section: Provided, further, That
outright smuggling shall also be punishable
under this section: Provided, finally, That the
rights and privileges provided in this Act for the
importers, consignees, exporters, service
providers, third parties and other third parties
who committed this offense shall be revoked.

FAILURE OR REFUSAL OF PARTY TO GIVE EVIDENCE OR SUBMIT DOCUMENTS FOR ASSESSMENT

In TCCP, the surcharge shall be 20% of the ad valorem value; In TCCP the surcharge shall be 20% of
the dutiable value.

SECTION 2504. Failure or Refusal of Party to Sec. 1402. Failure or Refusal of Party to Give
Give Evidence or Submit Documents for Evidence or Submit Documents for Assessment.
Examination. — When the owner, importer or – When the owner, importer or consignee of any
consignee of any imported articles, or the agent imported goods, or the agent of either, fails or
of either, fails or refuses, upon lawful demand in refuses, upon lawful demand in writing by any
writing by any customs official to appear, make customs officer to appear, lawfully depose, or
oath or submit himself to examination, or to submit to examination or to answer any material
answer any material question or refuses to question or refuses to produce records, accounts
produce records, accounts or invoices in his or invoices in possession pertaining to the value,
possession pertaining to the value, classification classification or disposition of the goods in
or disposition of the article in question and question and deemed material in assessing the
deemed material in appraising the same, the same, the District Collector shall assess a
Collector shall assess a surcharge of twenty per surcharge of twenty percent (20%) on the
centum ad valorem on the article which is the dutiable value of the goods which is the subject
subject of the importation. of the importation.

OTHER FRAUDULENT PRACTICES

In TCCP, the accused for each offense, shall be punished by a fine of not less than six hundred pesos
nor more than five thousand pesos and by imprisonment for not less than six months nor more than
two years and if the offender is an alien, he shall be deported after serving the sentence; in CMTA the
same shall be punished in accordance with the penalties prescribed in Section 1401 thereof.

SECTION 3602. Various Fraudulent Practices Sec. 1403. Other Fraudulent Practices Against
Against Customs Revenue. — Any person who Customs Revenue. – Any person
makes or attempts to make any entry of who makes or attempts to make any entry of
imported or exported article by means of any imported or exported goods by means of any false
false or fraudulent invoice, declaration, affidavit, or fraudulent statement, document or practice or
letter, paper, or by means of any false statement, knowingly and willfully files any false or
written or verbal, or by means of any false or fraudulent claim for payment of drawback or
fraudulent practice whatsoever, or shall be guilty refund of duties shall, for each act, be punished in
of any willful act or omission by means of accordance with the penalties prescribed in
whereof the Government might be deprived of Section 1401 of this Act.
the lawful duties, taxes and other charges, or any
portion thereof, accruing from the article or any
portion thereof, embraced or referred to in such
invoice, declaration, affidavit, letter, paper, or
statement, or affected by such act or omission,
shall, for each offense, be punished by a fine of
not less than six hundred pesos nor more than
five thousand pesos and by imprisonment for not
less than six months nor more than two years
and if the offender is an alien, he shall be
deported after serving the sentence.

FAILURE TO DECLARE BAGGAGE

To obtain release of the goods, TCCP provides merely for payment of surcharge of 30% while CMTA
provides for appraised value of such article PLUS all the duties, taxes and other charges due
thereon.

SECTION 2505. Failure to Declare Baggage. — Sec. 1404. Failure to Declare Baggage. –
Whenever any dutiable article is found in the Whenever dutiable goods are not declared by any
baggage of any person arriving within the person arriving within the Philippines, such goods
Philippines which is not included in the baggage shall be seized and the person may obtain release
declaration, such article shall be seized and the of such goods, if not imported contrary to any law,
person in whose baggage it is found may obtain upon payment of a surcharge equivalent to thirty
release of such article, if not imported contrary to percent (30%) of the landed cost of such goods, in
any law upon payment of treble the appraised addition to all duties, taxes and other charges due.
value of such article plus all duties, taxes and Nothing in this section shall preclude the filing of
other charges due thereon unless it shall be criminal action against the offender.
established to the satisfaction of the Collector
that the failure to mention or declare said
dutiable article was without fraud.
Nothing in this section shall preclude the bringing
of criminal action against the offender.

VESSEL, SEACRAFT, OR AIRCRAFT DEPARTING BEFORE UNDERGOING CUSTOMS FORMALITIES

In TCCP the departure was made before entry; while in CMTA the departure contemplated was before
undergoing customs formalities. The amount of fine under the former shall not exceed P5,000.00
while in the latter it shall not be less than P100,000.00 nor more than P300,000.00

SECTION 2513. Vessel or Aircraft Departing Sec. 1405. Vessel, Seacraft, or Aircraft Departing
before Entry Made. — Any vessel or aircraft Before Undergoing Customs Formalities. – Any
arriving within the limits of a collection district vessel, seacraft, or aircraft arriving within the
from a foreign port which departs before entry is limits of a Customs District from a foreign port
made, without being compelled to do so by which departs before undergoing customs
stress of weather, pursuit or duress of enemies, formalities, without being compelled to do so by
or other necessity, shall be fined in a sum not stress of weather, pursuit or duress of enemies, or
exceeding five thousand pesos. other necessity, shall 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).

OBSTRUCTION TO BOARDING OFFICER

In TCCP, the fine imposed was not exceeding P5,000.00 while in CMTA it ranges from P100,000.00 to
P300,000.00

SECTION 2514. Obstruction to Boarding Official. Sec. 1406. Obstruction to Boarding Officer. – If
— If the master or pilot in command or any the master or pilot-in-command or any member
member of the complement of any vessel or of the complement of any vessel or aircraft
aircraft arriving at a Philippine port obstructs or arriving at the Philippine port obstructs or hinders
hinders any official from lawfully going on board any officer from lawfully going on board such
such vessel or aircraft for the purpose of vessel or aircraft for the purpose of enforcing this
enforcing the customs and tariff laws Act, or intentionally causes any officer to be so
intentionally causes any such official to be so obstructed or hindered, the vessel or aircraft shall
obstructed or hindered, the vessel or aircraft shall be liable to a fine of not less than one hundred
be fined in a sum not exceeding five thousand thousand pesos (P100,000.00) but not more than
pesos. three hundred thousand pesos (P300,000.00).

UNLAWFUL BOARDING OR LEAVING OF VESSEL OR AIRCRAFT

In TCCP, the vessel or aircraft was to be fined in sum of not exceeding P5,000.00 while in CMTA the
amount was increased to range of P100,000.00 to P300,000.00.

SECTION 2515. Unlawful Boarding or Leaving of Sec. 1407. Unlawful Boarding or Leaving of Vessel
Vessel or Aircraft. — If upon arrival at a Philippine or Aircraft. – If, upon arrival at the Philippine port,
port, any master of a vessel or pilot in command any master of a vessel or pilot-in-command of an
of an aircraft engaged in a foreign trade permits aircraft engaged in a foreign trade permits any
any person to board or leave the vessel or aircraft person to board or leave the vessel or aircraft
without the permission of the customs official in without the permission of the customs officer-in-
charge, such vessel or aircraft shall be fined in a charge, the owner or operator of such vessel or
sum not exceeding one thousand pesos. aircraft shall he liable for a fine of not less than
one hundred thousand pesos (100,000.00) but not
more than three hundred thousand pesos
(P300,000.00).

UNLOADING OF CARGO BEFORE ARRIVAL AT PORT OF ENTRY

In TCCP, it shall be fined not exceeding P5,000.00; in CMTA it shall be be fined ranging from
P500,000.00 to P2,000,000.00 without prejudice to fines and penalties imposed under Section 1401.

SECTION 2517. Unlading of Cargo Before Arrival Sec. 1408. Unloading of Cargo Before Arrival at
At Port of Destination. — If, upon the arrival Port of Entry. – If, upon the arrival within the limits
within the limits of any collection district of the of any Customs District of the Philippines of any
Philippines of any vessel or aircraft engaged in vessel or aircraft engaged in foreign trade, the
foreign trade, the master or pilot in command master or pilot-in-command thereof permits any
thereof permits any part of the cargo to be part of the cargo to be unloaded before arrival at
unladen before her arrival at her port of the port of entry, and without authority from a
destination, and without authority from a proper proper customs officer, the owner, operator, or
customs official, such vessel or aircraft shall be agent of such vessel or aircraft shall he liable for a
fined in a sum not exceeding five thousand fine of not less five hundred thousand pesos
pesos, unless the unlading was rendered (P500,000.00) but not more than two million
necessary by stress of weather, accident or other pesos (P2,000,000.00): Provided, That no fine
necessity; and if due to necessity, the subsequent shall accrue upon satisfactory proof to the proper
approval of the proper Collector must be District Collector that the unloading was rendered
obtained. necessary by stress of weather, accident or other
necessity: Provided, however, That the fine
imposed herein shall be without prejudice to the
application of fines or penalties provided under
Section 1401 of this Act.

UNLOADING OF CARGO AT IMPROPER TIME OR PLACE AFTER ARRIVAL

In TCCP, it covers any vessel and aircraft before arrival at port of destination who discharges after
arrival at her PORT OF DESTINATION shall be fined not exceeding P10,000.00 and there is express
requirement for subsequent approval of fine exemption due to necessity; in CMTA it covers anythe
owner or operator of the vessel or aircraft upon arrival IN THE PHILIPPINES shall be be fined ranging
from P100,000.00 to P300,000.00 and there is no express requirement for subsequent approval of
fine exemption due to necessity.

SECTION 2518. Unlading of Cargo at Improper Sec. 1409. Unloading of Cargo at Improper Time
Time or Place After Arrival. — Any vessel or or Place After Arrival. – The owner or operator of
aircraft, which after arrival at her port of any vessel or aircraft from which cargo is
destination in the Philippines, discharges cargo at discharged upon arrival in the Philippines at a
any time or place other than that designated by time or place other than that designated by the
the Collector shall be fined in a sum not District Collector, shall be fined not less one
exceeding ten thousand pesos unless the hundred thousand pesos (P100,000.00) but not
unlading was rendered necessary by stress of more than three hundred thousand pesos
weather, accident or other necessity; and if due (P300,000.00): Provided, That no fine shall accrue
to necessity, the subsequent approval of the upon satisfactory proof to the proper District
proper Collector must be obtained. Collector that the unloading was rendered
necessary by stress of weather, accident or other
necessity.

FAILURE TO EXHIBIT OR DEPOSIT DOCUMENTS

In TCCP, the vessel or aircraft shall be fined not exceeding P5,000.00 and the vessel shall be liable if
the master fails to produce the proper documents or evidence; in CMTA the owner or operator shall be
be fined ranging from P100,000.00 to P300,000.00.

SECTION 2519. Failure to Exhibit or Deposit Sec. 1410. Failure to Exhibit or Deposit
Documents. — When the master of a vessel or Documents. – When the master of a vessel or
pilot in command of an aircraft engaged in pilot-in-command of an aircraft engaged in
foreign trade fails to exhibit to the Collector at foreign trade fails to submit to the District
the time of entry of his vessel or aircraft the Collector at the time of entry of the vessel or
register or other paper in lieu thereof, together aircraft the register or other documents in lieu
with the clearance and other papers granted by thereof, together with the clearance and other
the customs officials to his vessel or aircraft at documents granted by the customs officers to the
the last foreign port of departure, or fails to vessel or aircraft at the last foreign port of
exhibit any certificate or other document departure, or fails to exhibit any certificate or
required to be then exhibited, such vessel or other documents required to be then exhibited,
aircraft shall be fined in a sum not exceeding five the owner or operator of such vessel or aircraft shall
thousand pesos. be liable for a fine of not less than one hundred
Such vessel shall be liable for the payment of thousand pesos (P100.000.00) but not more than
the aforesaid fine if the master, within forty-eight three hundred thousand pesos (P300,000.00).
hours after arrival, shall fail to deliver to the
proper consular officer of his nation such
documents as are required by law to be
deposited with him, or, if after having made such
deposit, the master shall fail to produce to the
Collector the required evidence that the same
has been effected.

BRINGING OF UNMANIFESTED ARMS, EXPLOSIVES OR WAR EQUIPMENT

In TCCP, the vessel or aircraft was to be fined in sum of not exceeding P25,000.00 while in CMTA the
owner, operator, or agent shall answer to the amount ranging from P500,000.00 to P1,000,000.00.

SECTION 2520. Bringing of Unmanifested Arms, Sec. 1411. Bringing of Unmanifested Arms,
Explosives or War Equipment. — Any vessel or Explosives or War Equipment. – The owner,
aircraft arriving at a port in the Philippines, operator, or agent of a vessel or aircraft arriving at
having firearms, gunpowder, cartridges, a port in the Philippines bearing cargo consisting
dynamite or any other explosives, munitions or of firearms, gunpowder, cartridges, dynamite or
equipments of war concealed on board his vessel any other explosives, munitions or equipment of
or not contained in the manifest of the vessel or war not contained in the manifest of the vessel or
aircraft, shall be fined not exceeding twenty aircraft, or which are concealed on board, shall be
thousand pesos. liable for a fine of not less than five hundred
thousand pesos (P500,000.00) but not more than
one million pesos (P1,000,000.00).

FAILURE TO SUPPLY ADVANCE AND REQUISITE MANIFESTS

In TCCP, the vessel or aircraft was to be fined in sum of not exceeding P10,000.00 upon failure to
submit proper manifests or shall enter or depart conveying unmanifested cargo while in CMTA the
owner, operator, or agent shall answer to the amount ranging from P100,000.00 to P300,000.00 upon
failure to transmit electronic manifest. Moreover, in CMTA the shipping or forwarding agent of the
carrier or the vessel who fails to submit the manifest at least twenty-four (24) hours before entry shall
be liable for the same.

SECTION 2521. Failure to Supply Requisite Sec. 1412. Failure to Supply Advance and
Manifests. — If any vessel or aircraft enters or Requisite Manifests. – Failure to transmit the
departs from a port of entry without submitting electronic manifest within the required time as
the proper manifests to the customs authorities, may be prescribed by the Bureau, prior to arrival
or shall enter or depart conveying unmanifested of the carrying vessel or aircraft at the port of
cargo other than as stated in the next preceding entry shall make the owner, operator, or agent of
section hereof, such vessel or aircraft shall be the vessel or aircraft liable for a fine of not less
fined in a sum not exceeding ten thousand than one hundred thousand pesos (P100,000.00)
pesos. but not more than three hundred thousand pesos
The same fine shall be imposed upon any arriving (P300,000.00).
or departing vessel or aircraft if the master or pilot If the transit time from port of origin to port of
in command shall fail to deliver or mail to the entry is at least seventy-two (72) hours, the
Auditor General a true copy of the manifest of shipping or forwarding agent of the carrier or the
the incoming or outgoing cargo, as required by vessel who fails to submit the manifest at least
law. twenty-four (24) hours before entry shall likewise
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).

DISAPPEARANCE OF MANIFESTED GOODS

In TCCP, the vessel or aircraft was to be fined in sum of not exceeding P2,000.00 upon failure to
forthcoming (appear, produce or made available) any package or article or does not tally materially in
character or otherwise with the description in the manifest; In CMTA the agent shall answer to the
amount ranging from P100,000.00 to P300,000.00 upon failure to unload any package or goods
mentioned in the manifest. Moreover, in CMTA owner, operator, or agent of a vessel or aircraft shall be
liable for the payment of the same fine when a package or goods listed in the manifest does not tally
materially in character or otherwise with the description in the manifest.

SECTION 2522. Disappearance of Manifested Sec. 1413. Disappearance of Manifested Goods. –

Article. — When any package or article When any package or goods mentioned in the
mentioned in the manifest shall not be duly manifest meant to be unloaded at the port of
forthcoming upon the arrival of the vessel or destination is not unloaded upon the arrival of the
aircraft, the vessel or aircraft shall be fined in a vessel or aircraft, its agent shall be liable for a fine
sum not exceeding two thousand pesos, unless of not less than one hundred thousand pesos
the disappearance of the package or article in (P100,000.00) but not more than three hundred
question was not due to the negligence of the thousand pesos (P300,000.00) unless the
master of the vessel or pilot in command of an disappearance of the package or the goods in
aircraft and explained to the satisfaction of the question was not due to the negligence of the
Collector. master of the vessel or pilot-in-command of an
The vessel or aircraft shall be liable for the aircraft, and is explained to the satisfaction of
payment of the same fine when a package or the District Collector.
article listed in the manifest does not tally The owner, operator, or agent of a vessel or aircraft
materially in character or otherwise with the shall be liable for the payment of the same fine
description thereof in the manifest. when a package or goods listed in the manifest
does not tally materially in character or otherwise
with the description thereof in the manifest.

DISCREPANCY BETWEEN ACTUAL AND DECLARED WEIGHT OF MANIFESTED ARTICLE

In TCCP, the master or pilot in command, owner or employee of the vessel or aircraft was to be fined in
sum of not exceeding not more than 15% of the value of the package or article in respect to which the
deficiency if the gross weight of any article or package described in the manifest exceeds by more
than twenty per centum the gross weight; In CMTA the master or pilot-in-command, the owner,
employee, operator or agent of the importing vessel or aircraft shall be liable for a fine of not more than
20% of the value of the package or goods in respect to which the deficiency exists if the gross weight
of goods or package described in the manifest or bill of lading exceeds the declared weight by more
than ten percent (10%).

SECTION 2523. Discrepancy Between Actual and Sec. 1414. Discrepancy Between Actual and
Declared Weight of Manifested Article. — If the Declared Weight of Manifested Goods. – If the
gross weight of any article or package described gross weight of goods or package described in the
in the manifest exceeds by more than twenty manifest or bill of lading exceeds the declared
per centum the gross weight as declared in the weight by more than ten percent (10%), and
manifest or bill of lading thereof, and the such discrepancy was due to the negligence of the
Collector shall be of opinion that such master or pilot-in-command, the owner, employee,
discrepancy was due to the carelessness or operator or agent of the importing vessel or
incompetency of the master or pilot in command, aircraft shall be liable for a fine of not more than
owner or employee of the vessel or aircraft, a fine twenty percent (20%) of the value of the
of not more than fifteen per centum of the package or goods in respect to which the
value of the package or article in respect to deficiency exists.
which the deficiency exists, may be imposed
upon the importing vessel or aircraft.

DISCREPANCY WITH THE MASTER'S OR PILOT'S-IN-COMMAND REPORT

In TCCP, vessel or aircraft shall be fined in a sum not exceeding P5,000.00; In CMTA the owner,
operator or agent of the vessel or aircraft shall 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).

SECTION 2524. Delivery of Cargo Not Agreeing Sec. 1415. Discrepancy With the Master's or
With Master’s or Pilot’s in Command Report. — Pilot's-in-Command Report. – When a vessel or
When a vessel or aircraft arriving from a foreign aircraft arriving from a foreign port is compelled
port is compelled by necessity to put into another by necessity to unload in another port other than
port than the port of her destination and the port of entry and permission is granted by the
permission is granted by the Collector for the District Collector for the unloading of the vessel or
unlading of the vessel or aircraft or the delivery of aircraft or the delivery of any part of the cargo and
any part of her cargo and it shall be found that it shall be found that there is discrepancy between
the delivery of the cargo does not agree with the the cargo unloaded and the report of the master
master’s or pilot’s in command report, and the or the pilot-in-command and such discrepancy is
discrepancy is not satisfactorily explained, the not satisfactorily explained, the owner, operator or
vessel or aircraft shall be fined in a sum not agent of the vessel or aircraft shall be liable for a
exceeding five thousand pesos. fine of not less than one hundred thousand pesos
(P100,000.00) but not more than three hundred
thousand pesos (P300,000.00).

FAILURE TO REPORT FRAUD

In TCCP, Any master, pilot in command or other officer, owner or agent of any vessel or aircraft trading
with or within the Philippines and any employee of the Bureau of Customs shall be punished by a fine of
not more than P2,000.00 or by imprisonment for not more than (1) year, or both.
In CMTA, a requirement that the fraud “result in the loss or diminution of customs revenue” was
expressly provided and the persons enumerated except the BOC employee (in TCCP) shall suffer
imprisonment ranging from (6) months and (1) day to (1) year and fine ranging from (P100,000.00) to
(P300,000.00). It was added that 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 suffer additional
penalty of perpetual disqualification to hold public office, to vote and to participate in any election.
All the benefits due from service in the government, including the separation and retirement benefits,
shall be forfeited.

SECTION 3603. Failure to Report Fraud. — Any Sec. 1416. Failure to Report Fraud. – A master,
master, pilot in command or other officer, owner pilot-in-command or other officer, owner or agent
or agent of any vessel or aircraft trading with or of any vessel or aircraft trading with or within the
within the Philippines and any employee of the Philippines who has knowledge of the
Bureau of Customs, who, having cognizance of commission of fraud that shall result in the loss or
any fraud upon the customs revenue, shall fail to diminution of customs revenue but fails to report
report all information relative thereto to the all information relative thereto to the District
Collector, as by law required, shall be punished by Collector shall be penalized with imprisonment of
a fine of not more than two thousand pesos or not less than six (6) months and one (1) day but
by imprisonment for not more than one year, or not more than one (1) year and shall be liable for a
both. fine of not less than one hundred thousand pesos
(P100,000.00) but not more than three hundred
thousand pesos (P300,000.00). 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 suffer
additional penalty of perpetual disqualification to
hold public office, to vote and to participate in
any election. All the benefits due from service in
the government, including the separation and
retirement benefits, shall be forfeited.

FALSE STATEMENT OF VESSEL'S OR AIRCRAFT'S DESTINATION

In TCCP, the vessel or aircraft shall be fined not more than P5,000.00.
In CMTA, the owner or operator of such vessel or aircraft shall be fined ranging from (P100,000.00) to
(P300,000.00).

SECTION 2528. False Statement of Vessel’s or Sec. 1417. False Statement of Vessel's or
Aircraft’s Destination. — When the master or Aircraft's Destination. – When the master or pilot-
pilot in command of a vessel or aircraft laden in-command of a vessel or aircraft loaded with
with articles shall make a false statement as to goods shall make a false statement as to the next
the next destination of such vessel or aircraft, destination of such vessel or aircraft when that
when information concerning the same is information is required by a customs officer, the
required of him by a customs official, such vessel owner or operator of such vessel or aircraft shall be
or aircraft shall be fined in a sum not exceeding liable for a fine of not less than one hundred
five thousand pesos; and the circumstances that thousand pesos (P100,000.00) but not more than
a vessel or aircraft after clearing for a certain port three hundred thousand pesos (P300,000.00).
of destination goes to some other port, not being The arrival of a vessel or aircraft at a different port
impelled to do so by necessity, shall be prima other than the one it had been originally
facie proof that the original statement of the authorized and cleared for without having been
vessel’s or aircraft’s actual destination was false. impelled to do so by necessity, shall be prima facie
proof that the original statement of the actual
destination of the vessel or aircraft was false.

AFFIXING SEALS
In TCCP, the act punishable was the “breaking” while in CMTA it includes “affixing or attaching
without authority”.
In the former the vessel or aircraft shall be fined in a sum not exceeding P5,000.00 for each seal so
broken or destroyed; while in the latter the person liable shall suffer imprisonment ranging from (6)
months and (1) day to (1) year and fine ranging from (P100,000.00) to (P300,000.00). It was added
that 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 suffer additional penalty of perpetual
disqualification to hold public office, to vote and to participate in any election.

SECTION 2525. Breaking of Seal Placed by Sec. 1418. Affixing Seals. – Any person who,
Customs Official. — If any seal placed by a without authority, affixes or attaches a customs
customs official upon any vessel or aircraft or seal, fastening, or any mark, or fastening
compartment thereof, or upon any box, trunk or purporting to be a customs seal, to any vessel,
other package of article on board any vessel or aircraft, vehicle, warehouse, or package, shall be
aircraft is broken or destroyed, the vessel or penalized with imprisonment of not less than six
aircraft shall be fined in a sum not exceeding five (6) months and one (1) day but not more than
thousand pesos for each seal so broken or one (1) year, and shall be liable for a fine of not
destroyed. less than one hundred thousand pesos
(P100,000.00) but not more than three hundred
SECTION 2526. Breaking of Lock or Fastening thousand pesos (P300,000.00).
Placed by Customs Official. — If any lock or other If the offender is a foreigner, the offender shall be
fastening device placed by a customs official deported after serving the sentence. If the
upon any hatch door, or other means of offender is a public officer or employee, the
communication with the hold of a vessel or offender shall suffer additional penalty of
aircraft, or other part thereof, for the security of perpetual disqualification to hold public office,
the same during the nighttime, shall be to vote and to participate in any election.
unlawfully opened, broken or removed, or if any
of the articles contained in the hold or in other
compartments so secured shall be clandestinely
abstracted and landed, the vessel or aircraft shall
be fined in a sum not exceeding five thousand
pesos.

SECTION 704. Seal of Collector of Customs. — In

the office of the Collector of a collection district
there shall be kept a seal of such design as the
Commissioner shall describe, with the approval
of the department head, with which shall be
sealed all documents and records requiring
authentication in such office.
 BREAKING OF SEAL PLACED BY CUSTOMS OFFICERS
In TCCP, the vessel or aircraft shall be fined not more than P5,000.00 for each broken or destroyed
seal.
In CMTA, the owner or operator or agent of such vessel or aircraft shall be fined ranging from
(P100,000.00) to (P300,000.00) for each broken or destroyed seal.

SECTION 2525. Breaking of Seal Placed by Sec. 1419. Breaking of Seal Placed by Customs
Customs Official. — If any seal placed by a Officers. – If any seal placed by a customs officer
customs official upon any vessel or aircraft or upon any vessel or aircraft or compartment
compartment thereof, or upon any box, trunk or thereof, or upon any box, trunk or other package
other package of article on board any vessel or of goods on board is broken, the owner, operator,
aircraft is broken or destroyed, the vessel or or agent of the vessel or aircraft shall be liable for
aircraft shall be fined in a sum not exceeding five a fine of not less than one hundred thousand
thousand pesos for each seal so broken or pesos (P100,000.00) but not more than three
destroyed. hundred thousand pesos (P300,000.00) for each
broken or destroyed seal.

BREAKING OF LOCK OR FASTENING PLACED BY CUSTOMS OFFICERS

In TCCP, the vessel or aircraft shall be fined not more than P5,000.00.
In CMTA, the owner or operator or agent of such vessel or aircraft shall be fined ranging from
(P100,000.00) to (P300,000.00).

SECTION 2526. Breaking of Lock or Fastening Sec. 1420. Breaking of Lock or Fastening Placed
Placed by Customs Official. — If any lock or other by Customs Officers. – If any lock or other
fastening device placed by a customs official fastening device placed by a customs officer upon
upon any hatch door, or other means of any hatch door, or other means of communication
communication with the hold of a vessel or in the hold of a vessel or aircraft, or other part
aircraft, or other part thereof, for the security of thereof for the security of the same during the
the same during the nighttime, shall be night time, is unlawfully opened, broken or
unlawfully opened, broken or removed, or if any removed, or if any of the goods contained in the
of the articles contained in the hold or in other hold or in the other compartments so secured is
compartments so secured shall be clandestinely clandestinely abstracted and landed, the owner,
abstracted and landed, the vessel or aircraft shall operator, or agent of the vessel or aircraft shall be
be fined in a sum not exceeding five thousand liable for a fine of not less than one hundred
pesos. thousand pesos (P100,000.00) but not more than
three hundred thousand pesos (P300.000.00).

BREAKING OF LOCK OR FASTENING PLACED BY CUSTOMS OFFICERS

In TCCP, the person liable shall be punished by a fine of not more than P1,000.00 for altering, defacing
or obliterating such distinctive mark on: any package of warehoused articles.
In CMTA, the person liable shall be fined ranging from (P100,000.00) to (P300,000.00) for willfully
removing, breaking, injuring, defacing or altering without authority such customs seal or other
fastening or mark placed upon: vessel, vehicle or warehouse or package.

SECTION 3607. Alteration of Marks on Any Sec. 1421. Removal, Breakage, and Alteration of
Package of Warehoused Articles. — Any person Marks. – Any person who, without authority,
who alters, defaces or obliterates any distinctive willfully removes, breaks, injures, defaces or alters
mark placed by a customs official on any package any customs seal or other fastening or mark
of warehoused articles shall be liable to fine of not placed upon any vessel, vehicle, on land, sea or air,
more than one thousand pesos. warehouse or package containing merchandise or
baggage in bond or in customs custody, shall be
punished with the penalty prescribed in Section
1420 hereof.

UNAUTHORIZED WITHDRAWAL OF IMPORTED GOODS FROM BONDED WAREHOUSE

In TCCP, the person liable shall be punished by a fine of not more than P1,000.00 or by imprisonment
for not more than (1) year, or both for fraudulently removing or fraudulently concealing or aiding or
abetting any such removal or concealment.
In CMTA, the person liable shall be liable for surcharge of (50%) of duties, taxes, customs fees, and
charges, found to be due and unpaid which shall be added to the duties, taxes and charges due on
the goods withdrawn. If the delinquency lasts for more than (1) year, the surcharge shall be increased
by (25%) of the unpaid duties and taxes annually. Further, where the withdrawal is attended with
fraud, such as when a fake or altered withdrawal permit is submitted, the warehouse operator shall be
held liable without prejudice to suspension or revocation of the warehousing privileges.

PERIOD OF STORAGE IN A CUSTOMS BONDED WAREHOUSE (CBW)

The general rule under the CMTA is that goods entered for warehousing may remain in a CBW for a
fixed period of one year from the time of their arrival, except for perishable goods where the storage
period is three months from the date of arrival, extendible (for valid reasons and upon written
request) for another three months. This is a departure from the current rule which fixes the storage
period in a CBW to a maximum one year period, regardless of whether the goods are perishable or
not. Goods not withdrawn after the expiration of the prescribed period shall be deemed abandoned.
The Customs Commissioner, in consultation with the Secretary of Trade and Industry, shall also
establish reasonable storage period limits beyond the general one-year period for bonded goods, the
processing into finished goods of which require a longer period based on industry standards and
practice, subject to the approval of the Secretary of Finance.
The unauthorized withdrawal of imported goods from the CBW shall be subject to a surcharge of 50%
of duties, taxes, customs fees and charges, found to be due and unpaid. If the delinquency lasts for
more than one year, the surcharge shall be increased by 25% of the unpaid duties and taxes
annually.

SECTION 3609. Fraudulent Removal or Sec. 1422. Unauthorized Withdrawal of Imported

Concealment of Warehoused Articles. — Any Goods from Bonded Warehouse. – Any person
person who shall fraudulently remove who causes the unauthorized withdrawal of
warehoused articles from any public or private imported goods stored from a CBW shall be liable
warehouse or shall fraudulently conceal such for payment of a surcharge of fifty percent (50%)
articles in any such warehouse, or shall aid orof duties, taxes, customs fees, and charges,
abet any such removal or concealment, shall be found to be due and unpaid. The amount of
punished by a fine of not more than two surcharge shall be added to the duties, taxes and
thousand pesos, or by imprisonment for not charges due on the goods withdrawn. If the
more than one year, or both. delinquency lasts for more than one (1) year, the
surcharge shall be increased by twenty-five
SECTION 3005. General Provisions. — percent (25%) of the unpaid duties and taxes
L. The storage charges hereinbefore prescribed annually: Provided, That where the withdrawal is
accruing on cargo which has not been withdrawn attended with fraud, such as when a fake or
or removed from the customs premises in due altered withdrawal permit is submitted, the
time, made for good reasons, be reduced or warehouse operator shall be held liable under the
remitted by the Collector subject to the approval pertinent provisions of this Act, without prejudice
of the Commissioner and of the Auditor General: to the suspension or revocation of the
Provided, That in case of reduction, the amount warehousing privileges granted by the Bureau
corresponding to such reduction shall not be in pursuant to this Act.
excess of 50 per cent nor less than 10 per cent of
the storage liability of the importer or
consignee.

SECTION 1907. Withdrawal of Articles from

Bonded Warehouse. — Articles entered under
bond may be withdrawn at any time for
consumption, for transportation to another port,
for exportation or for delivery on board a vessel
or aircraft engaged in foreign trade for use on
board such vessel or aircraft as sea stores or
stores for aircraft after liquidation of the entry.
The withdrawal must be made by a person or firm
named in the original warehouse entry, or by a
person or firm duly authorized by the former,
whose authority must appear in writing upon the
face of the withdrawal.

REMOVING OR REPACKING GOODS IN WAREHOUSE

In TCCP, the person liable shall be punished by a fine of not more than P1,000.00 for altering, defacing
or obliterating such distinctive mark.
In CMTA, the person liable shall suffer imprisonment ranging from (6) months and (1) day to (1) year
and fine ranging from (P100,000.00) to (P300,000.00) for fraudulently concealing, removing, or
repacking merchandise or fraudulently altering, defacing, or obliterating any mark or numbers placed
or aiding or abetting any of such acts. 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 suffer
additional penalty of perpetual disqualification to hold public office, to vote and to participate in
any election. Further, the merchandise shall be forfeited in favor of the government.

SECTION 3607. Alteration of Marks on Any Sec. 1423. Removing or Repacking Goods in
Package of Warehoused Articles. — Any person Warehouse. – Any person who fraudulently
who alters, defaces or obliterates any distinctive conceals, removes, or repacks merchandise in any
mark placed by a customs official on any package warehouse or fraudulently alters, defaces, or
of warehoused articles shall be liable to fine of obliterates any mark or numbers placed upon
not more than one thousand pesos. 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.

REMOVING GOODS FROM CUSTOMS CUSTODY

In TCCP, the person liable shall be punished by a fine of not more than P2,000.00 or by imprisonment
for not more than (1) year, or both for fraudulently removing or fraudulently concealing or aiding or
abetting any such removal or concealment.
In CMTA, the person liable who received or transported goods therein or abet or aid the same or
entered not only WAREHOUSE but may also include VESSELS or VEHICLES warehouse or otherwise in
customs custody or control, shall be liable for penalties under Section 1401.

SECTION 3609. Fraudulent Removal or Sec. 1424. Removing Goods from Customs
Concealment of Warehoused Articles. — Any Custody. – Any person who enters any warehouse,
person who shall fraudulently remove or any vehicle loaded with or containing
warehoused articles from any public or private merchandise with intent to unlawfully remove
warehouse or shall fraudulently conceal such therefrom any merchandise or baggage in such
articles in any such warehouse, or shall aid or vessel, vehicle or warehouse or otherwise in
abet any such removal or concealment, shall be customs custody or control, or any person who
punished by a fine of not more than two receives or transports any merchandise or
thousand pesos, or by imprisonment for not baggage unlawfully removed from any such
more than one year, or both. vessel, vehicle or warehouse, or shall aid or abet
such removal, shall suffer the penalties provided
SECTION 3606. Breaking of Seal on Car or in Section 1401 hereof.
Conveyance by Land, Sea or Air. — Any person
who shall wilfully break or destroy any seal
placed by a customs official upon any car, or
other conveyance by land, sea or air, or any
compartment thereof, shall be punished by a fine
of not more than one thousand pesos.

FAILURE TO PAY DUTIES, TAXES AND OTHER CHARGES

In TCCP, the failure to pay the same within (10) working days from notice of liquidation shall cause the
adding of a surcharge of (5%) of the total amount or balance liquidation.
In CMTA, the failure to pay the same within (15) days ffrom the date of final assessment shall cause the
adding of a surcharge of (10%) of the total assessed amount or balance. If the delinquency lasts for
more than (1) year, surcharge shall be increased to (25%) percent.

SECTION 2501. Failure to Pay Liquidated Sec. 1425. Failure to Pay Duties, Taxes and Other
Charges. — For failure to pay the amount of Charges. – For failure to pay the duties, taxes and
liquidated duties, taxes and other charges of a other charges of an assessment within fifteen (15)
liquidation within ten working days after the days from the date of final assessment, a
notice of liquidation shall have been publicly surcharge of ten percent (10%) of the total
posted in the customhouse, a surcharge of found assessed amount or balance thereon shall be
upon five per centum of the total amount or added and collected, which surcharge shall be
balance liquidation shall be added thereto and increased to twenty-five percent (25%) if the
collected therewith. delinquency lasts for more than one (1) year.
 BREACH OF SECURITY
In TCCP, the term used was BOND. In Black’s Law Dictionary it was defined as one which is intended
to protect the assured from liability for damages or to protect the persons damaged by injuries
occasioned by the assured as specified, when such liability should accrue, and be imposed by law, as
by a court, as distinguished from an indemnity bond, whose purpose is only to indemnify the assured
against actual loss by way of reimbursement for moneys paid or which must be paid. Fenton v.
Poston, 114 Wash. 217, 195 P. 31, 33.
In CMTA, the term used was SECURITY. Thus, it is broader wherein the debtor could deposit any of
the security authorized to be posted. Black’s Law Dictionary defines the same as bonds, notes,
certificates of indebtedness, and other negotiable or transferable instruments evidencing the public
debt of a state or government.

SECTION 2506. Breach of Bond. — Upon breach Sec. 1426. Breach of Security. – Upon breach of
of a bond required to be filed under the tariff and security required to be filed under this Act, the
customs laws, the Collector subject to the District Collector, subject to the approval of the
approval of the Commissioner, may accept in Commissioner, may accept in satisfaction thereof
satisfaction thereof a smaller sum than that a smaller stun than that mentioned in the penalty
mentioned in the penalty clause of the bond, but clause of the security, but in no case less than the
in no case less than the amount necessary to amount necessary to indemnify the government
indemnify the Government for the damage for the damage occasioned by such breach.
occasioned by such breach.

CONCEALMENT OR DESTRUCTION OF EVIDENCE OF FRAUD.

In TCCP, the person liable shall be punished by a fine of not more than P2,000.00 or by imprisonment
for not more than (1) year, or both.
In CMTA, person liable shall suffer imprisonment ranging from (3) years and (1) day to (6) years and
fine ranging from (P300,000.00) to (P1,000,000.00).

SECTION 3605. Concealment or Destruction of Sec. 1428. Concealment or Destruction of

Evidence of Fraud. — Any person who wilfully Evidence of Fraud. – Any person who willfully
conceals or destroys, any invoice, book or paper conceals or destroys any invoice, book, or
relating to any article liable to duty, after an document relating to any goods liable to duty
inspection thereof has been demanded by the after an inspection thereof has been demanded
Collector of any Collection district, or at any time by the District Collector or at any time conceals or
conceals or destroys any such invoice, book or destroys any such invoice, book, or document for
paper for the purpose of suppressing any the purpose of suppressing any evidence of fraud
evidence of fraud therein contained, shall be therein contained, shall be penalized with
punished by a fine of not more than two imprisonment of not less than three (3) years and
thousand pesos, or by imprisonment for not one (1) day but not more than six (6) years and
more than one year, or both. 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).

OTHER OFFENSES
The acts punishable under CMTA are more comprehensive and supplemented by special laws. The
penalties in TCCP are grossly inadequate if to be applied today. Thus, the framers of CMTA deemed it
necessary to increase penalties therefor accordingly.
SECTION 2529. Miscellaneous Offenses. — The Sec. 1429. Other Offenses. – The owner or
following administrative fines shall be imposed operator of a vessel, aircraft or train
upon any vessel that sails or operates under any shall be liable for a fine for the following acts:
of the circumstances hereunder specified: (a) For anchoring at any dock, pier, wharf, quay, or
A. For sailing or operating without proper bulkhead other than a port
certificate of inspection and special permit, fifty of entry, a fine of not less than five hundred
pesos for each offense; thousand pesos (P500,000.00) but
B. For sailing or operating with expired license or not more than one million pesos (P1,000,000.00)
permit, one hundred pesos for each offense; for overseas vessels;
C. For engaging in the business of transporting (b) For dumping of garbage or slops over the sides
passengers in the coastwise trade without license of the vessel within three (3)
or permit, one hundred pesos for each offense; miles from the nearest coastline, a fine of not less
D. For navigating without sufficient life than one million pesos
preservers, belts or rafts required by customs (P1,000,000.00) but not more than ten million
regulations, one hundred pesos for each offense; pesos (P10,000,000.00);
E. For navigating without fire-fighting apparatus (c) For dumping or causing to spread crude oil,
and/or medical supplies required by customs kerosene, or gasoline in the bay
regulations, fifty pesos for each offense; or at the piers within three (3) miles from the
F. For sailing with excess passengers, twenty nearest coastline, a fine of not less
pesos for each passenger in excess of the than one million pesos (P1,000,000.00) but not
authorized number, but in no case less than the more than ten million pesos (P10,000,000.00) for
fare payable by each passenger to his place of each offense;
destination; (d) For loading gasoline or any other petroleum
G. For sailing with overloaded cargo, fifty pesos products at a place other than
for each offense in case of vessels of fifty tons that designated, by the regulations, a fine of not
gross or less; one hundred pesos in case of less than five hundred thousand
vessels of not less than fifty tons nor more than pesos (P500,000.00) but not more than one
one hundred tons gross; and not less than two million pesos (P1,000,000.00) for
hundred pesos nor more than five hundred each offense;
pesos in case of vessels of one hundred tons (e) For causing the emission and spread of
gross or more; harmful gas, fumes and chemicals, a
H. A vessel shall be fined in an amount hereafter fine of not less than one million pesos
fixed for: (P1,000,000.00) but not more than ten
(1) Anchoring at any dock, pier, wharf, quay or million pesos (P10,000,000.00) for each offense;
bulkhead without rat guards, fifty pesos for and
coastwise vessels, and two hundred pesos for (f) For transporting hazardous waste, radioactive
overseas vessels; waste and other toxic
(2) Dumping garbage or slops over the side in substances as provided under the Basel
port, one hundred pesos; Convention and Republic Act No. 6969,
(3) Dumping or causing to spread crude oil, otherwise known as the "Toxic Substances and
kerosene or gasoline in the bay or at the piers Hazardous and Nuclear Wastes
while in port, two hundred pesos for each Control Act of 1990", the penalty shall be
offense; forfeiture of the vessel in favor of the
(4) Loading gasoline at a place other than that government.
designated by the regulations, four hundred The fines imposed herein shall be without
pesos for each offense. prejudice to the application of fines or
penalties provided under special laws and
 regulations.

VIOLATIONS OF THIS ACT AND RULES AND REGULATIONS IN GENERAL

In TCCP, the person liable shall be punished by a fine of not more than P400.00 or by imprisonment for
not more than (6) months, or both.
In CMTA, person liable shall suffer imprisonment ranging from (30) days and (1) day to (1) year and
fine ranging from (P100,000.00) to (P300,000.00). If the offender is a foreigner, the offender shall be
deported after serving the sentence. 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 (10) years.

SECTION 3610. Violation of Tariff and Customs Sec. 1430. Violations of this Act and Rules and
Laws and Regulations in General. — Any person Regulations in General. – Any person who violates
who violates a provision of this Code or any other provision of this Act or the rules and
regulations pursuant thereto, for which regulations issued pursuant thereto, shall be
delinquency no specific penalty is provided, shall penalized with imprisonment of not less thirty (30)
be punished by a fine of not more than four days and one (1) day but not more than one (1)
hundred pesos or by imprisonment for not more year, or be liable for a fine of not less than one
than six months, or both. 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.

STATUTORY OFFENSES OF OFFICERS AND EMPLOYEES

In TCCP, the person liable shall be punished by a fine ranging P400.00 to P10,000.00 or by
imprisonment for ranging (6) months to (1) year, or both.
In CMTA, person liable shall suffer imprisonment ranging from (6) years and (1) day to (12) years and
fine ranging from (P100,000.00) to (P300,000.00), perpetual disqualification to hold public office,
from exercising the right to vote and to participate in any public election and fine ranging
(P500,000.00) to (P1,000,000.00). All the benefits due from service in the government, including
separation and retirement benefits shall also be forfeited.

SECTION 3604. Statutory Offense of Officials CHAPTER 2 PENALTIES IMPOSED UPON

and Employees. — Every official, agent or BUREAU EMPLOYEES
employee of the Bureau of Customs who is guilty Sec. 1431. Statutory Offenses of Officers and
of any delinquency hereinbelow specified or who Employees. – Every officer, agent, or employee of
falls within any of the classes hereinbelow the Bureau or of any other agency of the
indicated shall be punished by a fine of not less government charged with the enforcement of the
than four hundred pesos nor more than ten provisions of this Act, who shall be found guilty of
thousand pesos or by imprisonment for not less any delinquency as described below shall be
than six months nor more than five years, or penalized with imprisonment of not less than six
both. (6) years and one (1) day but not more than
A. Those guilty of extortion of willful oppression twelve (12) years, and perpetual disqualification
under color of law. to hold public office, from exercising the right to
B. Those who knowingly demand other or greater vote and to participate in any public election and a
sums than are authorized by law or receive any fine of not less than five hundred thousand pesos
fee, compensation or reward, except as by law (P500,000.00), but not more than one million
prescribed, for the performance of any duty. pesos (P1,000,000.00):
C. Those who wilfully neglect to give receipts, as (a) Extortion or willful oppression under color of
by law required, for any sum collected in the law;
performance of duty, or who wilfully neglect to (b) Knowingly demanding other or greater sums
perform any of the duties enjoined by law. that are authorized by law or receive any fee,
D. Those who conspire or collude with another or compensation, or reward except as by law
others to defraud the customs revenue or prescribed, for the performance of any duty;
otherwise violate the law. (c) Willfully neglecting to give receipts, as
E. Those who wilfully make opportunity for any required by law, for any sum collected in the
person to defraud the customs revenue or who performance of duty, or who willfully neglect to
do or fail to do any act with intent to enable any perform any of the duties enjoined bylaw;
person to defraud said revenue. (d) Conspiring or colluding with another or others
F. Those who negligently or designedly permit to defraud the customs revenue or otherwise
the violation of the law by any other person. violate the law;
G. Those who make or sign any false entry or (e) Providing an opportunity for any person to
entries in any book, or make or sign any false defraud the government of customs revenue or
certificate or return in any case where the law failing to do any act with the intent to enable any
requires the making by them of such entry, person to defraud the government of customs
certificate or return. revenue;
H. Those who, having knowledge or information (f) Negligently or designedly permitting the
of a violation of the tariff and customs law or any violation of the law by any other person;
fraud committed on the revenue collectible by (g) Making or signing for any false entry or entries
the Bureau of Customs, fail to report such in any book, making or signing any false
knowledge or information to their superior certificate or return in any case where the law
official or to report as otherwise required by law. requires the making by them of such entry
I. Those who, without the authority of law, certificate or return;
demand or accept or attempt to collect directly (h) Failing to report knowledge or information to
or indirectly as payment or otherwise, any sum of their superior officer about an act or acts of fraud
money or other thing of value for the committed in revenue collection as required by
compromise, adjustment, or settlement of any law;
charge or complaint for any violation or alleged (i) Demanding or accepting or attempting,
violation of law. without authority, to collect directly or indirectly
as payment or otherwise, any sum of money or
other thing of value for the compromise,
adjustment, or settlement of any charge or
complaint for any violation or alleged violation of
law;
(j) Unlawfully disclosing confidential information
gained during any investigation or audit, or using
such information for personal gain or to the
detriment of the government, the Bureau, or third
 parties.
All the benefits due from service in the
government, including separation and retirement
benefits, of an officer, agent, or employee of the
Bureau or of any other agency of the government
charged with the enforcement of the provisions of
this Act found guilty of the foregoing violations
shall be forfeited.

FAILURE TO REPORT FRAUD

In TCCP, the person liable shall be punished by a fine not more than P2,000.00 or by imprisonment for
not more than (1) year, or both.
In CMTA, person liable shall suffer imprisonment ranging from (6) years and (1) day to (12) years and
fine ranging from (P100,000.00) to (P300,000.00), perpetual disqualification to hold public office,
from exercising the right to vote and to participate in any public election and fine ranging
(P500,000.00) to (P1,000,000.00). All the benefits due from service in the government, including
separation and retirement benefits shall also be forfeited.

SECTION 3603. Failure to Report Fraud. — Any Sec. 1432. Failure to Report Fraud. – Any
master, pilot in command or other officer, owner employee of the Bureau who has knowledge of any
or agent of any vessel or aircraft trading with or fraud committed against the government
within the Philippines and any employee of the pertaining to customs revenue, and who fails to
Bureau of Customs, who, having cognizance of report all information relative thereto to the
any fraud upon the customs revenue, shall fail to District Collector, shall be penalized with
report all information relative thereto to the imprisonment of not less than six (6) years and
Collector, as by law required, shall be punished by one (1) day but not more than twelve (12) years
a fine of not more than two thousand pesos or and a fine of not less than five hundred thousand
by imprisonment for not more than one year, or pesos (P500,000.00) but not more than one
both. million pesos (1,000,000.00). The offender shall
suffer the additional penalty of perpetual
disqualification to hold public office, to vote and
to participate in any election. All the benefits of
the offender due from service in the government,
including separation and retirement benefits,
shall be forfeited.

Liability for Other Offenses

In CMTA, the penalties imposed under the same shall be without prejudice to the application of fines
or penalties provided under Chapter 1 of this title and special laws and regulations.

Not included in TCCP. Sec. 1433. Liability for Other Offenses. – The fines
and penalties imposed in this chapter shall be
without prejudice to the application of fines or
penalties provided under Chapter 1 of this title
and special laws and regulations.

PERIOD OF STORAGE IN CUSTOMS BONDED WAREHOUSE

TCCP provides a period of 2 years extendible for not more than 1 year while CMTA
provides for a non-extendible period of 1 year but, in case of perishable goods, 3 months.

SECTION 1908. Limit to Period Of Storage in SECTION 811. Period of Storage in CBWs. —
Bonded Warehouse. — Articles duly entered Goods entered for warehousing may remain in a
for warehousing may remain in bonded CBW for a maximum period of one (1) year from
warehouses for a period of two years from the time of its arrival thereat. For perishable
the time of arrival at the port of entry, which goods, the storage period shall be three (3)
period may for sufficient reason be further months from the date of arrival, extendible for
extended for not more than one year by the valid reasons, and upon written request, to
Commissioner whenever sufficient reasons
another three (3) months. Goods not withdrawn
for such extension are presented to him.
after the expiration of the prescribed period shall
Articles not withdrawn at the expiration of the
be deemed as abandoned, as provided under
prescribed period shall be sold at auction by
the Collector. Section 1129 of this Act.

SETTLEMENT OF CASE BY PAYMENT OF FINE OR REDEMPTION

In TCCP, settlement may be made by paying a fine or the appraised value of the property or the
fine imposed upon him by the Commissioner after appeal.
In CMTA, settlement may be made by payment of a fine or redemption of the forfeited goods but no
settlement can be accepted if the case is already on appeal or when there is fraud or when the
discrepancy in duties and taxes to be paid between what is determined and what is declared
amounts to more than thirty percent (30%)

SECTION 2307. Settlement of Case by Payment SECTION 1124. Settlement of Pending Seizure
of Fine or Redemption of Forfeited Property. — Case by Payment of Fine or Redemption of
If, in any seizure case, the owner or agent shall, Forfeited Goods. — Subject to the approval of the
while the case is yet before the Collector of the Commissioner, the District Collector may allow
district of seizure, pay to such Collector the fine the settlement by payment of fine or the
imposed by him or, in case of forfeiture, shall redemption of forfeited goods, during the course
pay the appraised value of the property, or, if of the forfeiture proceeding. However, the
after appeal of the case, he shall pay to the Commissioner may accept the settlement by
Commissioner the amount of the fine as finally redemption of any forfeiture case on
determined by him, or, in case of forfeiture, shall appeal. No settlement by payment of fine shall
pay the appraised value of the property, such be allowed when there is fraud or when the
property shall be forthwith surrendered, and all discrepancy in duties and taxes to be paid
liability which may or might attach to the between what is determined and what is
property by virtue of the offense which was the declared amounts to more than thirty percent
occasion of the seizure and all liability which (30%).
might have been incurred under any bond given In case of settlement by payment of fine, the
by the owner or agent in respect to such property owner, importer, exporter, or consignee or agent
shall thereupon be deemed to be discharged. shall offer to pay a fine equivalent to thirty
Redemption of forfeited property shall not be percent (30%) of the landed cost of the seized
allowed in any case where the importation goods. In case of settlement by redemption, the
is absolutely prohibited or where the owner, importer, exporter, or consignee or agent
surrender of the property to the person shall offer to pay the redeemed value equivalent
offering to redeem the same would be to one hundred percent (100%) of the landed
contrary to law. cost.
 PERIOD TO RECLAIM ABANDONED GOODS

SECTION 1803. Right to Reclaim Article. — The SECTION 1130, second paragraph. Treatment
owner or importer of an article impliedly and Disposition of Abandoned Goods.
abandoned may, at any time before it is sold or If the Bureau has not disposed of the abandoned
otherwise disposed of, reclaim such article goods, the owner or importer of goods impliedly
provided all legal requirements regarding its abandoned may, at any time within thirty (30)
importation are complied with and the days after the lapse of the prescribed period to
corresponding duties, taxes and other charges as file the declaration, reclaim the goods provided
well as all expenses incurred as a consequence of that all legal requirements have been complied
the abandonment, are paid. with and the corresponding duties, taxes and
other charges, without prejudice to charges and
fees due to the port or terminal operator, as well
as expenses incurred have been paid before the
release of the goods from customs custody.

MODE OF DISPOSITION OF PROPERTIES IN CUSTOMS CUSTODY

The mode of sale of sale provided in TCCP is public auction after 10 days notice while CMTA provides
that the goods may either be donated to another government agency or declared for official use of
the Bureau or be sold at a public auction within thirty (30) days after a ten (10)-day notice.

SECTION 2603. Mode of Sale. — In the SECTION 1141. Mode of Disposition. — The
absence of any special provision, property goods subject to disposition may be donated to
subject to sale by the customs authorities another government agency or declared for
shall be sold at public auction after ten official use of the Bureau, after approval of the
days' notice conspicuously posted at the port Secretary of Finance, or sold at a public auction
and such other advertisement as may appear within thirty (30) days after a ten (10)-day
to the Collector to be advisable in the notice posted at a public place at the port where
particular case.
the goods are located and published electronically
or in a newspaper of general
circulation.
For purposes of donating the goods as above
described, goods suitable for shelter or consisting
of foodstuffs, clothing materials or medicines may
be donated to the DSWD.

PERSONS DISQUALIFIED TO PARTICIPATE IN AUCTION SALE

Under the TCCP, only the customs officials or employee are disqualified but CMTA also includes the
spouses and relatives within the fourth degree of consanguinity or affinity of such
officials and employees

SECTION 2604. Disqualification to Participate in SECTION 1142. Disqualification to Participate

Auction Sale. — No customs official or in Auction Sale. — No customs officer or
employee shall be allowed to bid directly or employee, their spouses and relatives
indirectly, in any customs auction. within the fourth degree of consanguinity
or affinity shall be allowed to bid directly or
indirectly, in any customs auction.
 PERIOD OF DISPOSITION OF PERISHABLE GOODS
The period for disposition of perishable in TCCP is not exceeding three days after the public
notice while under CMTA, the period is within five (5) days, after a three (3)-day notice.

SECTION 2607. Disposition of Articles Liable SECTION 1144. Disposition of Perishable

to Deterioration. — Perishable articles shall Goods. — Perishable goods as defined under
not be deposited in a bonded warehouse; this Act when certified as such by the Bureau,
and, if not immediately entered for export or may be sold at a public auction within five (5)
for transportation from the vessel or aircraft in days, after a three (3)-day notice.
which imported or entered for consumption
and the duties and taxes paid thereon, such
articles may be sold at auction, after such
public notice, not exceeding three days, as
the necessities of the case permit.

MODE OF DISPOSITION OF UNSOLD ARTICLES FOR WANT OF BIDDERS

Under the TCCP, unsold articles for want of bidders may be disposed to the best advantage of the
government or given to government charitable institutions but under CMTA, it may
disposed by sale at public auction or donated to another government agency or declared for
official use of the Bureau, if still unsold after at least 2 public biddings, or be subject to re-export or
negotiotiated sale if not suitable for official use or donation.

SECTION 2610. Disposition of Unsold SECTION 1149. Disposition of Unsold Goods for
Articles for Want of Bidders. — When any Want of Bidders. — Goods subject to sale at
article remains unsold for want of bidders or public auction by the Bureau shall be sold at a
for lack of an acceptable bid, then the price not less than the landed cost of the goods
Collector shall, subject to the approval of the adjusted for normal depreciation. Goods which
department head, dispose of such article to remain unsold after at least two (2) public
the best advantage of the government in a biddings either due to the lack of bidders or for
private sale, and in case the same cannot be
the lack of an acceptable bid, may be donated to
sold, then such articles shall be given to
another government agency or declared for
government charitable institutions
through the Social Welfare Administration. official use of the Bureau. If the goods are not
suitable either for official use or donation, these
may be subject to re-export as government
property or sold through a negotiated sale.

ADVANCE CUSTOMS RULING

The CMTA incorporated a new provision empowering the Commissioner to render advance ruling on
tariff classification and valuation.

Not provided in TCCP SECTION 1100. Classification Ruling. — An

importer or exporter may file a written application
for an advance ruling on the tariff classification
of goods with the
Commission. The Commission shall render a
ruling within thirty (30) days from receipt
of a properly documented application.
 SECTION 1101. Valuation Ruling. — An importer
or exporter may file a written
application for an advance valuation ruling on
the proper application of a specific method on
customs valuation of specific goods as prescribed
in Title VII, Chapter 1 of
this Act.

RELIEF CONSIGNMENT
In TCCP, relief goods are not entirely exempt from taxes and duties but in CMTA, they are exempt
and treated as a matter of priority and subject to a simplified customs procedure

SECTION 105. Conditionally Free Importations. SECTION 120. Relief Consignment. — Goods such
— The following articles shall be exempt from as food, medicine, equipment and materials for
the payment of import shelter, donated or leased to government
duties upon compliance with the formalities institutions and accredited private entities for free
prescribed in, or with the regulations which shall distribution to or use of victims of calamities shall
be promulgated by the Commissioner of be treated and entered as relief consignment.
Customs with the approval of the department Upon declaration of a state of calamity, clearance
head: of relief consignment shall be
u. Articles donated to public or private a matter of priority and subject to a simplified
institutions established solely for educational, customs procedure. The Bureau shall provide for:
scientific, cultural, charitable, health, relief, (a) Lodging of a simplified goods declaration or
philanthropic or religious purposes, for free of a provisional or incomplete goods declaration
distribution among, or exclusive use of, the subject to completion of the declaration within
needy. a specified 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;
(c) Clearance beyond the designated hours of
business or away from customs offices and
waiver of any corresponding charges; and
(d) Examination and/or sampling of goods only
in exceptional circumstances.
The Department of Finance (DOF) and the
Department of Social Welfare and Development
(DSWD) shall jointly issue the rules and
regulations for the implementation of this
provision.

SECTION 121. Duty and Tax Treatment. — Relief

consignment, as defined in Section 120, imported
during a state of calamity and intended for a
specific calamity area for the use of the calamity
victims therein, shall be exempt from duties and
taxes.
 SAFEGUARD DUTY
A new provision on safeguard duty is imposed in CMTA.

Not provided in TCCP SECTION 712. Safeguard Duty. —

The provisions of Republic Act No. 8800,
otherwise known as the "Safeguard
Measures Act", are hereby adopted.

ABANDONMENT OF GOODS

SECTION 1801. Abandonment, Kinds and Effect SECTION 1129. Abandonment, Kinds and Effects
of. — Abandonment is express when it is made of. — Imported goods are deemed abandoned
direct to the Collector by the interested party in under any of the following circumstances: (a)
writing, and it is implied when, from the action or When the owner, importer, or consignee of the
omission of the interested party, an intention to imported goods expressly signifies in writing to
abandon can be clearly inferred. The failure of the District Collector the intention to abandon
any interested party to file the import entry the same; or (b) When the owner, importer,
within fifteen days or any extension thereof consignee, or interested party after due notice,
from the discharge of the vessel or aircraft, fails to file the goods declaration within the
shall be implied abandonment. An implied prescribed period in Section 407 of this Act:
abandonment shall not be effective until the Provided, That the term goods declaration shall
article is declared by the Collector to have been include provisional or incomplete goods
abandoned after notice thereof is given to the declaration deemed valid by the Bureau as
interested party as in seizure cases. Any person provided in Section 403 of this Act. For this
who abandons an imported article renounces purpose, it is the duty of the District Collector to
all his interests and property rights therein. post a list of all packages discharged and their
consignees, whether electronically or physically in
SECTION 1802. Abandonment of Imported the District Office, or send a notice to the
Articles. — The owner or importer of any consignee within five (5) days from the date of
articles may, within ten days after filing of the discharge; or (c) Having filed such goods
import entry, abandon to the Government all declaration, the owner, importer, consignee or
or a part of the articles included in an invoice, interested party after due notice, fails to pay
and, thereupon, he shall be relieved from the the assessed duties, taxes and other charges
payment of duties, taxes and all other charges thereon, or, if the regulated goods failed to
and expenses due thereon: Provided, That the comply with Section 117 of this Act, within
portion so abandoned is not less than ten per fifteen (15) days from the date of final
cent of the total invoice and is not less than assessment: Provided, That if such regulated
one package, except in cases of articles goods are subject of an alert order and the
imported for personal or family use. The article assessed duties, taxes and other charges thereof
so abandoned shall be delivered by the owner or are not paid within fifteen (15) days from
importer at such place within the port of arrival notification by the Bureau of the resolution of the
as the Collector shall designate, and upon his alert order, the same shall also be deemed
failure to so comply, the owner or importer shall abandoned; or (d) Having paid the assessed
be liable for all expenses that may be incurred in duties, taxes and other charges, the owner,
connection with the disposition of the articles. importer or consignee or interested party after
Nothing in this section shall be construed as due notice, fails to claim the goods within thirty
relieving such owner or importer from any (30) days from payment. For this purpose, the
criminal liability which may arise from any arrastre or warehouse operator shall report the
violation of law committed in connection with unclaimed goods to the District Collector for
the importation of the abandoned article. disposition pursuant to the provisions of this Act;
or (e) When the owner or importer fails to claim
goods in customs bonded warehouses within
the prescribed period. The due notice
requirement under this section may be provided
by the Bureau through electronic notice or
personal service: Provided, That for non-regular
importers, notification shall be by registered mail
or personal service. For this purpose, the
accreditation of importers, exporters, and other
third parties shall include provision for mandatory
receipt of electronic notices.

SECTION 1130. Treatment and Disposition of

Abandoned Goods. — Expressly abandoned
goods under paragraph (a) of Section 1129 of
this Act shall ipso facto be deemed the property
of the government and shall be disposed of in
accordance with the provisions of this Act. If the
Bureau has not disposed of the abandoned
goods, the owner or importer of goods
impliedly abandoned may, at any time within
thirty (30) days after the lapse of the prescribed
period to file the declaration, reclaim the goods
provided that all legal requirements have been
complied with and the corresponding duties,
taxes and other charges, without prejudice to
charges and fees due to the port or terminal
operator, as well as expenses incurred have been
paid before the release of the goods from customs
custody. When the Bureau sells goods which
have been impliedly abandoned, although no
offense has been discovered, the proceeds of
the sale, after deduction of any duty and tax
and all other charges and expenses incurred as
provided in Section 1143 of this Act, shall be
turned over to those persons entitled to receive
them or, when this is not possible, held at their
disposal for a specified period. After the lapse of
the specified period, the balance shall be
transferred to the forfeiture fund as provided in
Section 1151 of this Act.

CHIEF OFFICIALS OF THE BUREAU

SECTION 601. Chief Officials of Bureau of SECTION 200. Chief Officials of the Bureau. —
Customs. — The Bureau of Customs shall have The Bureau shall be headed by a Commissioner
one chief and one assistant chief, to be known and shall be assisted by at least four (4) but not
respectively at the Commissioner (hereinafter more than six (6) Deputy Commissioners.
known as the “Commissioner”) and Assistant
Commissioner of Customs, who shall each The Commissioner shall be appointed by the
receive an annual compensation in accordance President of the Philippines.
with the rates prescribed by existing laws. The
Assistant Commissioner of Customs shall be The Deputy Commissioners shall also be
appointed by the proper department head. appointed by the President and at least majority
of whom shall come from the ranks of the Bureau.

CONDITIONALLY-FREE AND DUTY-EXEMPT IMPORTATIONS

SECTION 105. SECTION 800

bb. Coffins or urns containing human remains, q. Coffins or urns containing human remains,
bones or ashes, and all articles for ornamentingbones or ashes, used personal and household
said coffins or urns and accompanying same; effects (not merchandise) of the deceased person,
used personal and household effects, not except vehicles, the FCA value of which does not
merchandise, of deceased persons, upon exceed one hundred fifty thousand pesos
identification as such, satisfactory to the (P150,000.00), upon identification as such:
Collector of Customs. Provided , That every three (3) years after the
effectivity of this Act, the value herein stated shall
No limit to the value of personal and household be adjusted to its present value using the CPI as
effects owned by the deceased. published by the PSA;

Under this provision, the law limited the value of

personal and household articles owned by the
deceased, which is exempt from taxes and duties.
The FCA value must not exceed P150, 000.

No definition is provided. The CMTA law specifically defined who a returning

resident is.

Section 800.
f. xxx

For purposes of this section, the phrase

"returning residents" shall refer to
nationals who have stayed in a foreign
country for a period of at least six (6)
months.
Animals and plants for scientific, experimental, Animals, except race horses, and plants
propagation, botanical, breeding, zoological for scientific, experimental propagation or
and national defense purposes: Provided, That breeding, and for other botanical,
no live trees, shoots, plants and moss, and
zoological and national defense purposes:
bulbs, tubers and seeds for propagation
purposes may be imported under this section, Provided , That no live trees, shoots,
except by order of the Government of the plants, moss and
Philippines or other duly authorized bulbs, tubers and seeds for propagation
institutions: Provided, further, That the free purposes may be imported under this
entry of animals for breeding purposes shall be section, except by order of the
restricted to animals of a recognized breed, government or other duly authorized
duly registered in the book of record
institutions: Provided, however, That the
established for that breed: And provided,
finally, That certificate of such record, and free entry of animals for breeding
pedigree of such animal duly authenticated by purposes shall be restricted to animals of
the proper custodian of such book of record, recognized breed, duly registered in the
shall be produced and submitted to the record or registry established for that
Collector of Customs, together with affidavit of breed, and certified
the owner or importer, that such animal is the as such by the Bureau of Animal Industry
identical animal described in said certificate of
(BAI): Provided, further, That the
record and pedigree.
certification of such record, and pedigree
of such animal duly authenticated by the
No requirement of certification from NEDA. proper custodian of such record or
registry, shall be
submitted to the District Collector,
together with the affidavit of the owner or
importer that such animal is the animal
described in said certificate of record and
pedigree: Provided, finally ,That the
animals and plants are certified by the
NEDA as necessary for economic
development;

The animals and plants imported must be

certified by the NEDA as necessary for
economic development.

Vehicles, horses, harness, bed and table linen, Wearing apparel, goods of personal adornment,
table service, furniture, musical instruments and toilet goods, portable tools and instruments,
personal effects of like character, owned and theatrical costumes and similar effects
imported by travelers or tourists for their accompanying travelers, or tourists, or arriving
convenience and comfort, upon identification within a reasonable time
before or after their arrival in the Philippines,
and the giving of a bond in an amount equal to which are necessary and appropriate for the wear
one and one-half times the ascertained duties, and use of such persons according to the nature of
taxes and other charges thereon, conditioned for the journey, their comfort and convenience:
the exportation thereof or payment of the Provided , That this exemption shall not apply to
corresponding duties, taxes and other charges goods intended for other persons or for
within six months from the date of acceptance of barter, sale or hire: Provided, however, That the
the import entry: Provided, That the Collector of Bureau may require either a written commitment
Customs may extend the time for exportation or or a security in an amount equal to one hundred
payment of duties, taxes and other charges for a percent (100%) of the ascertained duties, taxes
term not exceeding six months from the and other charges thereon,
expiration of the original period. conditioned for the exportation thereof or
payment of the corresponding duties, taxes and
other charges within three (3) months from the
· Vehicles, horses, harness, bed and table date of acceptance of the goods declaration:
linen, table service, furniture, which are not Provided, further, That the Bureau
necessary for the wear and use of tourists and may extend the time for exportation or payment
travellers are exempted from customs duties and of duties, taxes and other charges for a term not
taxes. Such privilege has been abolished under exceeding three (3) months from the expiration of
the CMTA. the original period.
A bond equal to 1 ½ times the ascertained duties,
taxes and other charges thereon, conditioned for · Only goods necessary and appropriate for
the exportation thereof or payment of the the wear and use of such persons according to the
corresponding duties, taxes and other charges nature of the journey, their comfort and
must be given. convenience, are exempted from customs duties
and taxes.
1) Written commitment or 2) a security in an
amount equal to one hundred percent (100%) of
the ascertained duties, taxes and other charges
thereon, conditioned for the exportation thereof
or payment of the corresponding duties, taxes and
other charges must be given. Under the new law,
two options are given, a written commitment or a
security.

Articles donated to public or private institutions m. Imported goods donated to or, for the account
established solely for educational, scientific, of the Philippine government or any duly
cultural, charitable, health, relief, philanthropicregistered relief organization, not operated for
or religious purposes, for free distribution profit, for free distribution among the needy,
among, or exclusive use of, the needy. upon certification by the DSWD or the
Department of Education (DepED), or the
· The articles donated under the old law Department of Health (DOH), as the case may be;
are given to select public or private institutions
only. Goods given to the government are not · Covers two situations
exempted. o Imported goods must be donated to or for
No certification is needed under this law. the account of the Philippine Government;
o Importation of any duly registered relief
organization, not operated for profit, for free
 distribution among the needy, upon certification
by the DSWD or the Department of Education
(DepED), or the Department of Health (DOH), as
the case may be;

Certification by the DSWD or the Department of

Education (DepED), or the Department of Health
(DOH) is needed if imported by any non-profit
duly registered relief organization.

AUTOMATIC REVIEW

Lack of an automatic review when the decision is SECTION 1127. Automatic Review in Forfeiture
adverse to the government. Cases. — The Commissioner shall automatically
review any decision by the District Collector
adverse to the government. The entire records of
the case shall be elevated within five (5) days from
the promulgation of the decision. The
Commissioner shall decide on the automatic
review within thirty (30) days, or within ten (10)
days in the case of perishable goods, from receipt
of the records. When no decision is rendered
within the prescribed period or when a decision
adverse to the government is rendered by the
Commissioner involving goods with FOB or FCA
value of ten million pesos (P10,000,000.00) or
more, the records of the decision of the
Commissioner, or of the District Collector under
review, as the case may be, shall be automatically
elevated within five (5) days for review by the
Secretary of Finance. The decision issued by the
Secretary of Finance, whether or not a decision
was rendered by the Commissioner within thirty
(30) days, or within ten (10) days in the case of
perishable goods, from receipt of the records,
shall be final upon the Bureau.

SECTION 1128. Automatic Review by the

Secretary of Finance in Other Cases.— In cases
not involving protest or forfeiture, the
Commissioner shall automatically review any
decision by the District Collector that is adverse to
the government. The records of the case shall be
elevated to the Commissioner within five (5) days
from the promulgation of the decision. The
Commissioner shall decide on the automatic
review within thirty (30) days from receipt of the
 records, or within ten (10) days in the case of
perishable goods. When no decision is rendered
within the prescribed period or when any decision
rendered by the Commissioner is adverse to the
government, the records of the case under review
shall be automatically elevated within five (5) days
for the review of the Secretary of Finance. The
decision issued by the Secretary of Finance,
whether or not a decision was rendered by the
Commissioner within thirty (30) days from receipt
of the records, or within ten (10) days in the case
of perishable goods, shall be final upon the
Bureau.

CLAIM FOR REFUND

SECTION 1708. Claim for Refund and Mode of SECTION 913. Claims for Refund. — All claims and
Payment. — All claims for refund of duties shall application for refund of duties and taxes shall be
be made in writing, and forwarded to the made in writing and filed with the Bureau within
Collector to whom such duties are paid, who twelve (12) months from the date of payment of
upon receipt of such claim shall verify the same duties and taxes.
by the records of his office, and if found to be
correct and in accordance with law, shall certify If, as a result of the refund of duties, a
the same to the Commissioner with his corresponding refund of internal revenue taxes on
recommendation together with all necessary the same importation becomes due, the Bureau
papers and documents. Upon receipt by the shall cause the refund of internal revenue taxes in
Commissioner of such certified claim he shall favor of the importer after issuance of a
cause the same to be paid if found correct. certification from the Commissioner of Internal
Revenue, when applicable.

The importer may file an appeal of a denial of a

claim for refund or abatement, whether it is a
full or partial denial, with the Commissioner
within thirty (30) days from the date of the
receipt of the denial. The Commissioner shall
render a decision within thirty (30) days from the
receipt of all the necessary documents supporting
the application. Within thirty (30) days from
receipt of the decision of the Commissioner, the
case may also be appealed to the CTA.
Notwithstanding the provisions in the preceding
paragraphs, the filing of claims for refund of
national internal revenue taxes shall be governed
by the provisions provided under the NIRC of
1997, as amended.
 STATEMENTS UNDER ENTRY DECLARATION/GOODS DECLARATION

SEC. 1304. Declaration of the Import Entry. - SEC. 412. Statements to be provided in the
Except in case of informal entry, no entry of Goods Declaration. – No entry of imported
article shall be effected until there shall have goods shall be allowed unless the goods
been submitted to the collector a written declaration has been lodged with the Bureau.
declaration under penalties of falsification or The goods declaration shall, under penalties
perjury, in such form as shall be prescribed of falsification or perjury, contain the following
by the Commissioner, containing statements statement:
in Substance as follows: a. The invoice and goods declaration contain
a. That the entry delivered to the Collector and accurate and faithful account of the prices
contains a full account of the value or price or payable for the goods and other
articles, including subject of the entry; adjustments to the price actually paid or
b. That the invoice and entry contain a just payable, and that nothing has been omitted
and faithful account of the value or price of therefrom or concealed whereby the
said articles including and specifying the government of the Republic of the Philippines
value of all containers or coverings, and that might be defrauded of any part of the duties
nothing has been omitted, therefrom or and taxes lawfully due on the goods; and
concealed whereby the government of the b. To the best of the declarant’s information
Republic of the Philippines be defrauded of and belief, all the invoices and bills of lading or
any part of the duties lawfully due on the airway bills relating to the goods are the only
articles; ones in the existence relating to the
c. That, to the best of the declarant's importation in question and that there
information and belief, all the invoke and bills documents are in the same state as when they
of lading to the articles are the only ones in were received by the declarant, and the
existence relating to the importation in declaration thereon are all in respects genuine
question and that they are in the state in and true.
which they were actually received by him; Goods declaration shall be submitted
d. That, to the best of the declarant's electronically pursuant to Republic Act No.
information and belief, the entries, invoices 8792, otherwise known as the “Electronic
and bill of and the declaration thereon under Commerce Act of 2000.” Such declarations
penalties of falsification of perjury are in all when printed and certified by a competent
respects genuine and true, and were made by customs officer as a faithful reproduction of
the person by whom the same purpose to the electronic submission shall be considered
have been made. as actionable documents for purposes of
prosecuting a declarant if a declarations are
found to be fraudulent.

PROVISIONAL GOODS DECLARATION

Sec. 403. Provisional Goods Declaration. –

Where the declarant doesn’t have all the
information or supporting documents required
to complete the goods declaration, the lodging
of a provisional goods declaration may be
allowed: Provided, that it substantially contains
the necessary information required by the
Bureau and the declarant undertakes to
 complete the information or submit the
supporting documents, within forty-five (45)
days from the filing of the provisional goods
declaration, which period may be extended by
the Bureau for another forty-five (45) days for
valid reasons.
If the Bureau accepts a provisional goods
declaration, the duty treatment of the goods
shall not be different from that of goods with
complete declaration.
Goods under a provisional goods declaration
may be released upon the posting of any
required security equivalent to the amount
ascertained to be the applicable duties and
taxes.

AUDIT POWER OF THE BUREAU OF CUSTOMS

SECTION 1000. Audit and Examination of

Records. — Within three (3) years from the date of
final payment of duties and taxes or customs
clearance, as the case may be, the Bureau may
conduct an audit examination, inspection,
verification, and investigation of records
pertaining to any goods declaration, which shall
include statements, declarations, documents, and
electronically generated or machine readable
data, for the purpose of ascertaining the
correctness of the goods declaration and
determining the liability of the importer for
duties, taxes and other charges, including any fine
or penalty, to ensure compliance with this Act.

POWER TO INSPECT AND VISIT

Sec 224. Power to Inspect and Visit. – The

Commissioner or any customs officer who is
authorized in writing by the Commissioner, may
demand evidence of payment of duties and taxes
on imported goods openly for sale of kept in
storage. In the vent that the interested party fails
to produce such evidence within fifteen (15) days,
the goods may be seized and subjected to
forfeiture proceedings. Provided, That during the
proceeding, the interested party shall be given the
opportunity to prove or show the source of the
goods and the payment of duties and taxes
thereon: Provided, further, That when the warrant
of seizure has been issued but subsequent
documents presented evidencing proper payment
are found to authentic and in order, the District
Collector shall, within fifteen (15) days from the
receipt of the motion of quash or recall the
warrant, cause the immediate release of the
goods seized, subject to clearance by the
Commissioner: Provided, finally, That the release
thereof shall not be contrary to law.