Customs Control -Risk Management Tool under E2M system

Title III CUSTOMS JURISDICTION AND Color of Selectivity system of BOC:

CUSTOMS CONTROL
-It randomly selected by the system of BOC
CHAPTER 2 which is the E2M
Section 301.Customs Control Over Goods • Green; your imported good doesn’t
have to undergo in the examination,
All goods, including means of transport,
automatically our goods will be
entering or leaving the customs territory,
subject to the payment confirmation
regardless of whether they are liable to
or validation. There will be no
duties and taxes, shall be subject to customs
scrutinization on the imported goods
control to ensure compliance with this Act.
therefore mas mabilis ma release
• Once the good that are imported yung shipment because there is no
shall be subject to customs duties. If document and physical examination.
those goods are imported they are No physical and documentary
also subject to the control of examination
customs. In the name of the duty of • Yellow; Magkakaroon ng kaunting
BOC that its function is to protect and Physical examination. The Customs
to make sure the border, control and Examiner will require you to produce
security. documentation in collection of
• All goods entering the Philippines goods. The customs examiner will
shall be subject to customs control in cost us to scrutinize our
order for them to effectively do their documents.Based on documentary
job based on the CMTA. evidences, iscrutinize yung shipment
• Regardless they are subject to duties • Red; Usually nag rered kapag yung
or not they are under control of goods kapag galing sa high risk
Bureau of Customs country, or yung goods is high risk
cargo or high risk in nature. The red
In the Application of customs control, the
lane is a combination of physical and
Bureau shall use audit-based controls and
documentary examination,
risk management systems and adopt a
bubuksan yung mismong container
compliance measurement strategy to
at titignan kung tugma ba yung
support risk management
declaration natin sa goods in
• It is all conducted in electronically physical.
The Bureau shall seek to cooperate and
conclude mutual administrative assistance
agreements with other customs
administrations to enhance customs control.
The Bureau shall consult, coordinate, and goods are safe to land in the
cooperate with other government Philippine Territory
regulatory agencies, free zones authorities,
At Anchorage (The vessel is not yet verted to
and the customs stakeholders in general to
the port, nasa anchorage palang sya.
enhance the customs control
Nakdrop yung anchor nya, nag aantay pa sya
• The Bureau of Customs is the ng queuing) : BOQ IRR
primary government agency task to
supervise and control all imported
goods entering our country. The Master of the vessel must submit to the
• They can also ask assistance or Senior Boarding Officer of the BOC the
cooperation and mutual following:
administrative assistance with other
a) Quarantine Certificate (Pratique)
government agency. In order to
effectively execute the CMTA -It is required in the vessel and also in the
cargo. It issued by the Bureau of quarantine
b) Clearance of the vessel from the last port
Section 302. Enforcement of Port
of call
Regulation of Bureau of quarantine
-They need to make sure that the vessel was
-Customs officials and employees shall
clear at the last port of call, they should have
cooperate with the quarantine authorities
a clearance that they already comply in the
in the enforcement of the port quarantine
quarantine procedure of the last port they've
regulations promulgated by the Bureau of
been. It means the vessel is safe
Quarantine and shall give effect to the same
in so far as connected with matters of c) 1 Original & 4 copies of IFM (Inward
shipping and navigation. Foreign Manifest) duly signed by the
Master
• It is the partnership of Bureau of
Customs and the department of -list of all goods intended to be imported or
health particularly under the bureau unload here in the Port
of quarantine
d) Other relevant documents
• The Bureau of quarantine is under
the Department of Health
• Imported goods is loaded on board
either vessel or aircraft, at may Upon Arrival: BOC Clearance
possibility na nag cacarry ng foreign
na bacteria na hindi familliar yung The Master must present to the BOC the
katawan natin. It might cause following docs upon arrival
pandemic, so the bureau of ✓ The vessel is already berthed
quarantine ask to inspect and make (dumaong na yung vessel) to the port
sure this vessel containing imported
 a) Quarantine Certificate from a
foreign port
Section 304. Power of the President to
▪ Quarantine Certificate of its
Subject Premises to Customs Jurisdiction
origin country
When public interest requires, The
b) Entry of Vessels from any port or place
President may by executive order, declare
Outside of PH unless QC was issued by the
any public wharf, landing place, street or
BOQ (Bureau of Quarantine)
land, in any port of entry under the
c) No person shall be allowed to leave or jurisdiction of the Bureau as may be
board the vessel unless granted by the BOQ necessary, for customs purposes and/or to
(Bureau of Quarantine) authorize a port or terminal operator to
transfer overstaying cargoes in an inland
d) QC must be received and stamped by the
depot or terminal.
BOC Senior Boarding Officer during
anchorage Sec.17, Article VII, Executive Department,
1987 Constitution
e) Animals, cargo, plants, etc. Must require
a pratique (Quarantine of Certificate) "...The President shall have control of
before discharge executive department/bureaus and offices.
He shall ensure that all laws are faithfully
executed."
Section 303. Control over premises used for
(Kapag Nakita ng President na hindi
Customs purposes
masyadong effective yung gingawa ng
The Bureau shall for customs purposes, have Customs, he can control)
exclusive control, direction and management
Inherent Power of the Government
of customs offices, facilitates warehouses
and ports, airports, wharves, and other 1. Police Power- is the right to protect the
premises in the Customs Districts, in all cases country and its population from threats to
without prejudice to the general police the public health and safety.
powers of the local government units
2. Power of Taxation- the power of the
(LGU's),the Philippine Coast Guard and of
sovereign to impose burdens or charges
law enforcement agencies in the exercise of
upon persons, property or property rights
the respective functions.
for the use and support of the government
• It must be harmonious in other to be able to discharge its functions.
government agency or local government
3. Power of Eminent Domain-The power of
unit in order have effective
the government, states and manipulates to
implementation the CMTA
take private property for public use,
EXCEPT: Free Zones. Section 814-817 of following the payment of just compensation.
CMTA (There will be no Customs authorities)
 • Bureau Officiaries also conduct
surveillance
Section 305. Trespass or Obstruction of
Customs Premises Section 307. Temporary storage of goods
(Trespass is uninvited visit, or passing on a Subject to the rules and regulations to be
private property without the consent of the issued by the Secretary of Finance, the
owner that makes it illegal) Commisioner shall establish a system for
temporary storage of imports prior to goods
No person shall enter or obstruct a customs
declaration in case of abandoned or
office, warehouse, port, airport, wharf, or
overstaying goods.
other premises under the control of the
Bureau without prior authority, including the • It is adopted under the Revised Kyoto
streets or alleys where these facilities are Convention. Nirerequire ng RKC na mag
located. provide ng shelter para sa abandoned
goods para hindi mag cause ng
• yung may legitimate business lang
congestion sa port.
pwede pumasok.
• It is also for the security of government
revenue and citizen.
Section 306. Special Surveillance for the
Protection of Customs Revenue and
prevention of Smuggling

The Bureau shall conduct surveillance on

vessels of aircrafts entering Philippine
territory and on imported goods entering
the customs office: Provided. that the
function of the Philippine Coast Guard to
prevent and suppress the illegal entry of
these goods, smuggling and other forms of
customs fraud and violations of maritime
law and its proper surveillance of vessels
entering and/or leaving the Philippine
territory as provided in Republic Act No.
9993, otherwise known as "Philippine Coast
Guard Law of 2009," shall continue to be in
force.

• Without being prejudice in the duty of

Philippine Coast Guard they can always
conduct special surveillance to within
our border. (For our national Security)
CRIMES AND OTHER OFFENSES or any dutiable adjustment to the
price actually paid or payable;
SECTION1400.Misdeclaration, (b) when an incorrect valuation method
Misclassification, Undervaluation in Goods is used or the valuation rules are not
Declaration. – Misdeclaration as to quantity, properly observed, resulting in a
quality, description, weight, or discrepancy in duty and tax to be
measurement of the goods, or paid between what is legally
misclassification through insufficient or determined as the correct value
wrong description of the goods or used of against the declared value. When
wrong tariff heading resulting in a the undervaluation is established
without need to go through the
discrepancy in duty and tax to be paid
formal dispute settlement process
between what is legally determined upon
provided for in this Act, a surcharge
assessment and what is declared. shall be imposed equivalent to two
Misdeclaration hundred fifty percent (250%) of the
duty and tax due. No surcharge shall
(Iniiba yung nilalagay sa goods declaration) be imposed when the discrepancy in
duty is less than ten percent (10%),
1. shall be subject to a surcharge or the declared value is rejected as a
equivalent to two hundred fifty result of an official ruling or decision
percent (250%) of the duty and tax under the customs dispute
due. settlement process involving difficult
2. No surcharge shall be imposed when or highly technical question relating
the discrepancy in duty is less than to the application of customs
ten percent (10%), or when the valuation rules.
declared tariff heading is rejected in
a formal customs dispute settlement A discrepancy in duty and tax to be paid
process involving difficult or highly between what is legally determined
technical question of tariff amounting to more than thirty percent
classification, or when the tariff (30%) shall constitute a prima facie evidence
classification declaration relied on an of fraud.
official government ruling.
When the misdeclaration, misclassification
There is undervaluation when; or undervaluation is intentional or
fraudulent, such as when a false or altered
(Violation wherein instead of declaring kung document is submitted or when false
magkano yung totoong value ng goods na statements or information are knowingly
nabili abroad, you are declaring it a much made, a surcharge shall be imposed
lesser amount, para mabawasan yung goods equivalent to five hundred percent (500%)
and taxes) of the duty and tax due and that the goods
shall be subject to seizure regardless of the
(a) the declared value fails to disclose in amount of the discrepancy without
full the price actually paid or payable prejudice to the application of fines or
penalties provided under Section 1401 of
this Act against the importer and other thousand pesos
person or persons who willfully participated (P150,000.00),or both, if the
in the fraudulent act. value of the goods unlawfully
imported, to be determined
Misclassification in the manner prescribed
under this Act, including
500% of the duty and tax due and that goods duties and taxes, exceeds
shall subject to seizure regardless of the Two hundred fifty thousand
amount of the discrepancy pesos (P250,000.00) but not
more than Five hundred
SECTION 1401. Unlawful Importation or thousand pesos
Exportation- Any person who shall (P500,000.00);
fraudulently import or export or bring into or (c) imprisonment of not less
outside of the Philippines any goods, or than one (1) year and one (1)
assist in so doing, contrary to law, or shall day but not more than three
receive, conceal, buy, sell, or in any manner (3) years, or a fine of not less
facilitate the transportation, concealment, than One hundred fifty
or sale of such goods after importation, or thousand pesos
shall commit technical smuggling as defined (P150,000.00) but not more
in this Act shall be penalized by: than Three hundred
thousand pesos
(a) imprisonment of not less (P300,000.00), or both, if the
than thirty (30) days and one appraised value of the goods
(1) day but not more than six unlawfully imported, to be
(6) months or a fine of not determined in the manner
less than Twenty-five prescribed under this Act,
thousand pesos (P25,000.00) including duties and taxes,
but not more than Seventy exceeds Five hundred
five thousand pesos thousand pesos
(P75,000.00), or both, if the (P500,000.00) but not more
value to be determined in the than One million pesos
manner prescribed under this (P1,000,000.00);
Act, including duties and (d) imprisonment of not less
taxes, of the goods unlawfully than three (3) years and one
imported does not exceed (1) day but not more than six
Two hundred fifty thousand (6) years, or a fine of not less
pesos (P250,000.00); than Three hundred
(b) imprisonment of not less thousand pesos
than six (6) months and one (P300,000.00) but not more
(1) day but not more than one than One million five hundred
(1) year, or a fine of not less thousand pesos
than Seventy five thousand (P1,500,000.00),or both, if
pesos (P75,000.00) but not the appraised value of the
more than One hundred fifty goods unlawfully imported,
 to be determined in the million pesos
manner prescribed under this (P200,000,000.00).
Act, including duties and (g) If the appraised value of the
taxes, exceeds One million goods unlawfully imported to
pesos (P1,000,000.00) but be determined in the manner
not more than Five million prescribed under this
pesos (P5,000,000.00); Act, including duties and
(e) imprisonment of not less taxes, exceeds Two hundred
than six (6) years and one (1) million pesos
day but not more than twelve (P200,000,000.00) or if the
(12) years, or a fine of not less aggregate amount of the
than One million five hundred appraised values of goods
thousand pesos which are the subject of
(P1,500,000.00) but not more unlawful importation
than Fifteen million pesos committed in more than one
(P15,000,000.00), or both, if instance, including duties and
the appraised value of the taxes, exceeds Two hundred
goods unlawfully million pesos
imported, to be determined (P200,000,000.00), the same
in the manner prescribed shall be deemed as a heinous
under this Act, including crime and shall be punishable
duties and taxes, exceeds with a penalty of reclusion
Five million pesos perpetua and a fine of not
(P5,000,000.00) but not more less than Fifty million pesos
than Fifty million pesos (P50,000,000.00); and
(P50,000,000.00); (h) The penalty of prision mayor
(f) imprisonment of not less shall be imposed when the
than twelve (12) years and crime of serious physical
one (1) day but not more than injuries shall have been
twenty (20) years, or a fine of committed, and the penalty
not less than Fifteen million of reclusion perpetua shall be
pesos (P15,000,000.00) but imposed when the crime of
not more than Fifty million homicide shall have been
pesos (P50,000,000.00), or committed by reason or on
both, if the appraised value of the occasion of the unlawful
the goods unlawfully importation.
imported, to be determined
in the manner prescribed In applying the above scale of penalties, an
under this Act, including offender who is an alien shall be deported
duties and taxes, exceeds without further proceedings after serving
Fifty million pesos the sentence. If the offender is a public
(P50,000,000.00) but not officer or employee, the penalty which is the
more than Two hundred next higher in degree shall be imposed in
addition to the penalty of perpetual
disqualification from public office, and ➢ If the Value of Imported Goods P
disqualification to vote and to participate in 1M-P5M:
any public election. If the offender fails to
pay the fine, subsidiary imprisonment shall ▪ Imprisonment: 1 year + 1 Day up
be served. to 3 years
▪ Fine: P 75,000-P 150,000
When, upon trial for violation of this Section, ▪ Or Both
the defendant is shown to have had
possession of the goods in question, ➢ If the Value of Imported Goods P1M-
possession shall be deemed sufficient P5M
evidence to authorize conviction unless the
defendant shall explain the possession to the ▪ Imprisonment: 3 years + 1 Day up
satisfaction of the court: Provided, That each to 6 years
act of unlawful importation or exportation ▪ Fine: P 300,000-P 1,500,000
shall be deemed as a separate offense: ▪ Or both
Provided,however, That payment of the tax
due after apprehension shall not constitute ➢ If the value of imported Goods P5M-
a valid defense in any prosecution under this P50M:
Section: Provided further, That outright
smuggling shall also be punishable under this ▪ Imprisonment: 12 years + ! Day
Section: Provided finally, That the rights and up to 20 years
privileges provided in this Act for the ▪ Fine: P1.5M-P15M
importers, consignees, exporters, service ▪ Or Both
providers, third parties and other third
parties who committed this offense shall be ➢ If the Value of Imported Goods
revoked. P50M-P200M:

1401 SUMMARY (Smuggling) ▪ Imprisonment: 12 years + 1 Day

up to 20 years
➢ If the value of Imported Goods is ▪ Fine: P15M-P50M
below P250,000: ▪ Or Both

▪ Imprisonment: 30+1 Day up to 6 ➢ If the value of Imported goods

months exceeds P200M:
▪ Fine: P25,000-P75,000
▪ Or both ▪ Imprisonment: Reclusion
Perpetua (Heinous Crime) or life
➢ IF the Value of Imported Goods imprisonment
P250,000-500,000: ▪ Fine: P50M
▪ Or Both
▪ Imprisonment: 6mos + 1 Day up ➢ If Committed Physical Injury
to 1 year ▪ Imprisonment: Prison Mayor
▪ Fine: P75,000-P150,000 (Kung ano yung maximum na
▪ Or Both ipapataw sa nagkasala)
 ➢ If committed Homicide: practice or knowingly and willfully files any
false or fraudulent claim for payment of
▪ Reclusion Perpetua drawback or refund of duties shall, for each
act, be punished in accordance with the
➢ If Offender is Alien penalties prescribed in Section 1401 of this
Act.
▪ Deported without further
proceedings in Bureau of SECTION 1404.Failure to Declare
Immigratiom Baggage. – Whenever dutiable goods are
not declared by any person arriving within
➢ If Offender is Public Officer the Philippines, such goods shall be seized
and the person may obtain release of such
▪ Highest Penalty goods, if not imported contrary to any law
▪ Perpetual disqualification from upon payment of a surcharge equivalent to
public office (Hindi na sya thirty percent (30%) of the landed cost of
pwedeng maupo sa kahit anong such goods, in addition to all duties, taxes
public offices) and other charges due. Nothing in this
▪ Disqualification to vote and to Section shall preclude the filing of criminal
participate in any public election. action against the offender.

SECTION 1402.Failure or Refusal of Party to (Kapag hindi mo dineclare yung duriable

Give Evidence or Submit Documents for goods sa baggage mo or hindi mo
Assessment.– When the owner, importer or dinedeclare yung baggage mo)
consignee of any imported goods, or the
agent of either, fails or refuses, upon lawful SECTION 1405.Vessel, Seacraft, or Aircraft
demand in writing by any customs officer to Departing Before Undergoing Customs
appear, lawfully depose, or submit to Formalities. – Any vessel, seacraft, or
examination or to answer any material aircraft arriving within the limits of a
question or refuses to produce records, Customs District from a foreign port which
accounts or invoices in possession pertaining departs before undergoing customs
to the value, classification or disposition of formalities, without being compelled to do
the goods in question and deemed material so by stress of weather, pursuit or duress of
in assessing the same, the District Officer enemies, or other necessity, shall be liable
shall assess a surcharge of twenty percent for a fine of not less than One hundred
(20%) on the dutiable value of the goods thousand pesos (P100,000.00) but not more
which is the subject of the importation. than Three hundred thousand pesos
(P300,000.00).
(Hindi nakapagbigay ng resibo)
(Kapag umalis na hindi pa nag sasubmit ng
SECTION 1403. Other Fraudulent Practices documents, yung may ari ng barko yung
against Customs Revenue.– Any person who magbabayad)
makes or attempts to make any entry of
imported or exported goods by means of any
false or fraudulent statement, document or
SECTION 1406.Obstruction to Boarding shall be liable for a fine of not less Five
Officer.– If the master or pilot-in-command hundred thousand pesos (P500,000.00) but
or any member of the complement of any not more than Two Million pesos
vessel or aircraft arriving at the Philippine (P2,000,000.00): Provided, That no fine shall
port obstructs or hinders any officer from accrue upon satisfactory proof to the proper
lawfully going on board such vessel or District Officer that the unloading was
aircraft for the purpose of enforcing this Act, rendered necessary by stress of weather,
or intentionally causes any officer to be so accident or other necessity: Provided,
obstructed or hindered, the vessel or aircraft however, That the fine imposed herein shall
shall be liable to a fine of not less than One be without prejudice to the application of
hundred thousand pesos (P100,000.00) but fines or penalties provided under Section
not more than Three hundred thousand 1401 of this Act.
pesos (P300,000.00).
(Kapag nag unload na ng cargo sa maliit na
(Kapag pinigilan yung mga Boarding officer bangka habang hindi pa nakakadaong yung
na iperform yung duty nya) vessel sa port of entry)

SECTION 1407.Unlawful Boarding or SECTION 1409.Unloading of Cargo at

Leaving of Vessel or Aircraft.– If upon arrival Improper Time or Place after Arrival.– The
at the Philippine port, any master of a vessel owner or operator of any vessel or aircraft
or pilot-in-command of an aircraft engaged from which cargo is discharged upon arrival
in a foreign trade permits any person to in the Philippines at a time or place other
board or leave the vessel or aircraft without than that designated by the District Officer,
the permission of the customs officer-in- shall be fined not less One hundred
charge, the owner or operator of such vessel thousand pesos (P100, 000.00) but not more
or aircraft shall be liable for a fine of not less than Three hundred thousand pesos (P300,
than One hundred thousand pesos (P100, 000.00): Provided, That no fine shall accrue
000.00) but not more than Three hundred upon satisfactory proof to the proper District
thousand pesos (P300, 000.00). Officer that the unloading was rendered
necessary by stress of weather, accident or
(Kapag bumaba ng barko ng walang other necessity.
pahintulot ng Customs, or without
clearance.) SECTION 1410. Failure to Exhibit or Deposit
Documents. – When the master of a vessel
SECTION 1408.Unloading of Cargo before or pilot-in-command of an aircraft engaged
Arrival at Port of Entry. – If, upon the arrival in foreign trade fails to submit to the District
within the limits of any Customs District of Officer at the time of entry of the vessel or
the Philippines of any vessel or aircraft aircraft the register or other documents in
engaged in foreign trade, the master or pilot- lieu thereof, together with the clearance and
in-command thereof permits any part of the other documents granted by the customs
cargo to be unloaded before arrival at the officers to the vessel or aircraft at the last
port of entry, and without authority from a foreign port of departure, or fails to exhibit
proper customs officer, the owner, any certificate or other documents required
operator, or agent of such vessel or aircraft to be then exhibited, the owner or operator
of such vessel or aircraft shall be liable for a pesos (P100, 000.00) but not more than
fine of not less than One hundred thousand Three hundred thousand pesos (P300,
pesos (P100,000.00) but not more than 000.00).
Three hundred thousand pesos
(P300,000.00). (Manifest-Summary of bill of lading, listahan
na kung saan naka declare lahat kung ano
SECTION 1411.Bringing of Unmanifested laman ng barko)
Arms, Explosives or War Equipment.– The
owner, operator, or agent of a vessel or SECTION 1413. Disappearance of
aircraft arriving at a port in the Philippines Manifested Goods.– When any package or
bearing cargo consisting of firearms, goods mentioned in the manifest meant to
gunpowder, cartridges, dynamite or any be unloaded at the port of destination is not
other explosives, munitions or equipment of unloaded upon the arrival of the vessel or
war not contained in the manifest of the aircraft, its agent shall be liable for a fine of
vessel or aircraft, or which are concealed on not less than One hundred Thousand Pesos
board, shall be fined not less than Five (P100,000.00) but not more than Three
hundred thousand pesos (P500, 000.00) but hundred thousand pesos (P300,000.00)
not more than One Million pesos (P1, unless the disappearance of the package or
000,000.00). the goods in question was not due to the
negligence of the master of the vessel or
(Kapag nagdala ka ng unmanifested arm, pilot-in-command of an aircraft and is
explosives or war equipment or hindi explained to the satisfaction of the District
nakalista sa listahan ng barko na wala sa Collector.
manifest.)
The owner, operator, or agent of a vessel or
SECTION 1412. Failure to Supply Advance aircraft shall be liable for the payment of the
and Requisite Manifests.– The failure to same fine when a package or goods listed in
transmit the electronic manifest within the the manifest does not tally materially in
time as may be prescribed by the Bureau character or otherwise with the description
prior to arrival of the carrying vessel or thereof in the manifest.
aircraft at the port of entry shall make the
owner, operator, or agent of the vessel or (May nakalagay sa manifesto pero walang
aircraft be liable for a fine of not less than nakalagay sa barko or shut out cargo)
One hundred thousand pesos (P100, 000.00)
but not more than Three hundred thousand SECTION 1414. Discrepancy between Actual
pesos (P300, 000.00). and Declared Weight of Manifested
Goods.– If the gross weight of goods or
If the transit time from port of origin to port package described in the manifest or bill of
of entry is at least seventy-two (72) hours, lading exceeds the declared weight by more
the shipping or forwarding agent of the than ten percent (10%), and such
carrier or the vessel who fails to submit the discrepancy was due to the negligence of
manifest at least twenty-four (24) hours the master or pilot-in-command, the owner,
before entry shall likewise be liable for a fine employee, operator or agent of the
of not less than One hundred thousand importing vessel or aircraft shall be liable to
for a fine of not more than twenty percent the offender shall be deported after serving
(20%) of the value of the package or goods in the sentence. If the offender is a public
respect to which the deficiency exists. officer or employee, the offender shall
suffer additional penalty of perpetual
If the discrepancy is 10% in BL: disqualification to hold public office, to vote
and to participate in any election. All the
• A fine not more than twenty percent benefits due from service in the
(20%) of the value of the package or government, including the separation and
goods. retirement benefits, shall be forfeited.

SECTION 1415.Discrepancy with the SECTION 1416 SUMMARY:

Master’s or Pilot’s-in-Command Report.
– When a vessel or aircraft arriving from a • Imprisonment of not less six (6) months
foreign port is compelled by necessity to and one (1) day but not more than one
unload in another port other than the port (1) year
of entry and permission is granted by the • A fine not less than one hundred
District Officer for the unloading of the thousand pesos (P100,000.00) but not
vessel or aircraft or the delivery of any part more than three hundred thousand
of the cargo and it shall be found that there pesos (P300,000)
is discrepancy between the cargo • Deported after serving the sentence (if
unloaded and the report of the master or Alien)
the pilot-in-command and such discrepancy • If the offender is public officer or
is not satisfactorily explained, the owner, employee, the offender shall suffer
operator or agent of the vessel or aircraft additional penalty of perpetual
shall be liable for a fine of not less than One disqualification to hold public office, to
hundred thousand pesos (P100,000.00) but vote and to participate election.
not more than Three hundred thousand • Benefits due from service in the
pesos (P300,000.00). government, including the separation
and retirement benefits, shall be
SECTION 1416. Failure to Report Fraud. – A FORFEITED.
master, pilot-in-command or other officer,
owner or agent of any vessel or aircraft SECTION 1417.False Statement of Vessel’s
trading with or within the Philippines who or Aircraft’s Destination. – When the master
has knowledge of the commission of fraud or pilot-in-command of a vessel or aircraft
that shall result in the loss or diminution loaded with goods shall make a false
of customs revenue but fails to report all statement as to the next destination of such
information relative thereto to the District vessel or aircraft when that information is
Officer shall be penalized with imprisonment required by a customs officer, the owner or
of not less six (6) months and one (1) day but operator of such vessel or aircraft shall be
not more than one (1) year and shall be liable for a fine of not less than One hundred
liable for a fine of not less than One hundred thousand pesos (P100, 000.00) but not more
thousand pesos (P100,000.00) but not more than Three hundred thousand pesos (P300,
than Three hundred thousand pesos 000.00). The arrival of a vessel or aircraft at
(P300,000.00). If the offender is a foreigner, a different port other than the one it had
been originally authorized and cleared for SECTION 1420.Breaking of Lock or
without having been impelled to do so by Fastening Placed by Customs Officers. – If
necessity, shall be prima facie proof that the any lock or other fastening device placed by
original statement of the actual destination a customs officer upon any hatch door, or
of the vessel or aircraft was false. other means of communication in the hold
of a vessel or aircraft, or other part thereof
SECTION 1418.Affixing Seals.– Any person for the security of the same during the night
who, without authority affixes or attaches a time, is unlawfully opened, broken or
customs seal, fastening, or any mark, or removed, or if any of the goods contained in
fastening purporting to be a customs seal, to the hold or in the other compartments so
any vessel, aircraft, vehicle, warehouse, or secured is clandestinely abstracted and
package, shall be penalized with landed, the owner, operator, or agent of the
imprisonment of not less than six (6) months vessel or aircraft shall be liable for a fine of
and one (1) day but not more than one (1) not less than One hundred thousand pesos
year, and shall be liable for a fine of not less (P100,000.00) but not more than Three
than One hundred thousand pesos hundred thousand pesos (P300,000.00).
(P100,000.00) but not more than Three
hundred thousand pesos (P300,000.00). If SECTION 1421.Removal, Breakage, and
the offender is an alien, the offender shall be Alteration of Marks. – Any person who
deported after serving the sentence. If the without authority, willfully removes,
offender is a public officer or employee, the breaks, injures, or defaces or alters any
offender shall suffer an additional penalty of customs seal or other fastening or mark
perpetual disqualification to hold public placed upon any vessel, vehicles, on land,
office and disqualification from exercising sea or air, warehouse or package containing
the right to vote and to participate in any merchandise or baggage in bond or in
election. customs custody, shall be punished with the
penalty prescribed in Section 1420 hereof.
(Kapag hindi authorized magkabit ng seal,
tapos nagkabit ka) • One hundred thousand pesos
(P100,000.00) but not more than Three
SECTION 1419. Breaking of Seal Placed by hundred thousand pesos (P300,000.00).
Customs Officers.– If any seal placed by a
customs officer upon any vessel or aircraft or SECTION 1422.Unauthorized Withdrawal of
compartment thereof, or upon any box, Imported Goods from Bonded
trunk or other package of goods on board is Warehouse. – Any person who causes the
broken, the owner, operator, or agent of the unauthorized withdrawal of imported goods
vessel or aircraft shall be liable for a fine of stored from a CBW shall be liable for
not less than One hundred thousand pesos payment of a surcharge of fifty percent
(P100, 000.00) but not more than Three (50%) of duties, taxes, customs fees, and
hundred thousand pesos (P300, 000.00) for charges, found to be due and unpaid. The
each broken or destroyed seal. amount of surcharge shall be added to the
duties, taxes, and charges dues on the goods
withdrawn. If the delinquency lasts for more
than one (1) year, the surcharge shall be
increased by twenty-five percent (25%) of disqualification to hold public office and
the unpaid duties and taxes disqualification from exercising the right
annually: Provided, That, where the to vote and to participate in any election.
withdrawal is attended with fraud, such as
when a fake or altered withdrawal permit is
submitted, the warehouse operator shall be
held liable under the pertinent provisions of SECTION 1424. Removing Goods from
this Act, without prejudice to the suspension Customs Custody. – Any person who enters
or revocation of the warehousing privileges any warehouse, or any vehicle loaded with
granted by the Bureau pursuant to this Act. or containing merchandise with intent to
unlawfully remove therefrom any
(Mga hindi pa bayad na goods na nasa merchandise or baggage in such vessels,
bonded warehouse tapos inilabas na hindi vehicle or warehouse or otherwise in
ina approve ng Bureau of Customs) customs custody or control, or any person
who receives or transports any merchandise
SECTION 1423. Removing or Repacking or baggage unlawfully removed from any
Goods in Warehouse. – Any person who such vessel, vehicle or warehouse, or shall
fraudulently conceals, removes, or repacks aid or abet such removal, shall suffer the
merchandise in any warehouse or penalties provided in Section 1401 hereof.
fraudulently alters, defaces, or obliterates
any mark or numbers placed upon packages • Unlawful importation
deposited in such warehouse, or shall aid or
abet any such acts, shall be punished with
the penalties prescribed in Section 1418
hereof. SECTION 1426.Breach of Security.– Upon
breach of security required to be filed under
Merchandise so concealed, removed, or this Act, the District Officer, subject to the
repacked, or packages upon which marks, approval of the Commissioner, may accept in
numbers or the values thereof have been so satisfaction thereof a smaller sum than that
altered, defaced, or obliterated shall be mentioned in the penalty clause of the
forfeited in favor of the government. security, but in no case less than the amount
necessary to indemnify the government for
• shall be penalized with imprisonment of the damage occasioned by such breach.
not less than six (6) months and one (1)
day but not more than one (1) year, and (May hindi ka sinunod sa usapan sa bonds,
shall be liable for a fine of not less than pwedeng ma penalized kung magkano yung
One hundred thousand pesos terms na nakalagay sa penalty ng bonds,
(P100,000.00) but not more than Three nagkaroon ng breach.)
hundred thousand pesos (P300,000.00).
If the offender is an alien, the offender
shall be deported after serving the
sentence. If the offender is a public
officer or employee, the offender shall
suffer an additional penalty of perpetual
SECTION 1427.Failure to Keep Importation (P300,000.00) but not more than One
Records and Full Access to Customs Officers. million pesos (P1,000,000.00.).
–Any person who fails to keep all the records
of importations or books of accounts, • Imprisonment: 3 years + 1 day up to 6
business and computer systems and all months
customs commercial data in the manner • Fine: P300,00-P1M
prescribed in this Act, shall be punished with
imprisonment of not less than three (3) years SECTION 1429. Other Offenses. – The owner
and one (1) day but not more than six (6) or operator of a vessel, aircraft or train shall
years and/or a fine of One million pesos (P1, be liable for a fine for the following acts:
000,000.00). This penalty shall likewise be
imposed against importers and brokers who (a) for anchoring at any dock, pier, wharf,
deny an authorized customs officer full and quay, or bulkhead other than a port of
free access to such records, books of entry, a fine of not less than Five
accounts, business and computer systems, hundred thousand pesos (P500,000.00)
and all customs commercial data including but not more than One million pesos
payment records, without prejudice to the (P1,000,000.00) for overseas vessels;
imposition of the administrative sanctions (b) for dumping of garbage or slops over
by the Bureau against contumacious the sides of the vessel within three (3)
importers, including the authority to hold miles from the nearest coastline, a fine
delivery or release of their imported goods. of not less than One million pesos
(P1,000,000.00) but not more than Ten
(Kapag hindi ka nakapag present ng record million pesos (P10,000,000.00);
sa Bureau of Customs na nabayaran mo yung (c) for dumping or causing to spread crude
duties and taxes) oil, kerosene, or gasoline in the bay or at
the piers within three (3) miles from the
• Imprisonment: 3 years + 1 day up to 6 nearest coastline, a fine of not less than
months One million pesos (P1,000,000.00) but
• Fine: P1M not more than Ten million pesos
(P10,000,000.00) for each offense;
SECTION 1428.Concealment or Destruction (d) for loading gasoline or any other
of Evidence of Fraud.– Any person who petroleum products at a place other
willfully conceals or destroys any invoice, than that designated by the regulations,
book, or document relating to any goods a fine of not less than Five hundred
liable to duty after an inspection thereof has thousand pesos (P500,000.00) but not
been demanded by the District Officer or at more than One million pesos
any time conceals or destroys any such (P1,000,000.00) for each offense
invoice, book, or document for the purpose (e) for causing the emission and spread of
of suppressing any evidence of fraud therein harmful gas, fumes and chemicals, a
contained, shall be penalized with fine of not less than One million pesos
imprisonment of not less than three (3) years (P1,000,000.00) but not more than Ten
and one (1) day but not more than six (6) million pesos (P10,000,000.00) for each
years and shall be liable for a fine of not less offense; and
than Three hundred thousand pesos
(f) for transporting hazardous waste,
radioactive waste and other toxic
substances as provided under the Basel
Convention and Republic Act No. 6969
otherwise known as the “Toxic
Substances and Hazardous and Nuclear
Wastes Control Act of 1990”, forfeiture
of the vessel in favor of the government.

The fines imposed herein shall be without

prejudice to the application of fines or
penalties provided under special laws and
regulations.

SECTION 1430.Violations of this Act and

Rules and Regulations in General.– Any
person who violates any other provision of
this Act or the rules and regulations issued
pursuant thereto, shall be penalized with
imprisonment of not less than thirty (30)
days and one (1) day but not more than one
(1) year, or be liable for a fine of not less than
One hundred thousand pesos (P100,000.00)
but not more than Three hundred thousand
pesos (P300,000.00), or both. If the offender
is an alien, 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.

• Imprisonment: 31 days-1 year

• Fine: P100kP300K
• Alien: Deportation
• Government employee: Disqualified
from holding public office, from
exercising the right to vote and to
participate in any public election for ten
(10) years.