4/26/22

CUSTOMS LAW CBLE SYLLABUS

2022 CUSTOMS LAW TUTORIAL CUSTOMS LAW CBLE COVERAGE
CUSTOMS ADMINISTRATION ESSENTIALS 40%
SESSION 01 1. General Common Provisions Sec. 101-114 8%
ADMINISTRATIVE AND JUDICIAL PROCEEDINGS 40%
1. Advance Ruling and Dispute Ruling Sec. 1100-1105 6%
CUSTOMS ADMINISTRATION 2. Types of Importation Sec. 115-119
3. Bureau of Customs
4%
18%
2. Protest Sec. 1106-1110 5%
3. Alert Orders Sec. 1111-1112 2%
ESSENTIALS: PART I 3.1General Administration Sec. 200-205 4. Seizure, Forfeiture and Authority of the Commissioner to
3.2Customs Districts and Ports of Entry Sec. 206-213 Make Compromise Sec. 1113-1125 8%
3.3Exercise of Police Authority Sec. 214-224 Appeal in Protest and Forfeiture Cases Sec.1126-1128
CB Bert T. Domondon 3.4Customs Jurisdiction Sec. 300
5. Abandonment Sec.1129-1130 2%
This material is exclusively prepared for excusive use of 6. Civil Remedies for the Collection of Duties and Taxes Sec.
those enrolled at the 2022 CLaP Escolta Tutorial. The 3.5Customs Control Sec. 301-307 1132-1134 3%
material is protected by the law of karma. Any user not 4. Customs Fees and Charges Sec. 1300-1301 1% 7. Judicial Proceedings Sec. 1135-1138 1%
authorized to use the material and those who will allow the 5. Miscellaneous CMTA Provisions Sec.1500-1514 7% 8. Disposition of Property in Customs Custody Sec. 1139-
unauthorized use shall have the eternal problem of passing 6. Congressional Oversight Committee Sec. 1700 1% 1151 9%
the Customs Broker Licensure Examinations and difficulty in 7. Final Provisions Sec. 1800 -1805 1% 9. Penalties Imposed Upon Bureau of Customs Employees
dealing with customs and tariff matters. Sec. 1431-1433 2%
1 2 3

1 2 3

IMPORTATION
CUSTOMS LAW CBLE COVERAGE WHAT MAY BE IMPORTED INTO OR EXPORTED
§ Definition FROM THE PHILIPPINES
ETHICS AND PRACTICES OF THE CB PROFESSION 20% § the act of bringing in of goods from a foreign
territory into Philippine territory, whether for • General rule: All goods may be imported into or
1. Code of Ethics and Code of Technical Standards 7% consumption, warehousing, or admission. exported from the Philippines without the need for
2. Customs Broker's Act 2004 (RA 9280) and CPD Law (RA
import or export permits, clearances or licenses
§ What about transshipment?
10912), Rules and Regulations 7% • Exception to the rule: Unless otherwise provided for
§ Admission
3. BIR, BOC and OTHER Regulatory Agencies Affecting the in laws and regulations. (Sec. 116)
Customs Brokers Profession 5%
§ the act of bringing imported goods directly or
through transit into a free zone
4. PRC-PRB Issuances Relative to the CB Profession 1%
§ SEZ registered with PEZA or freeport zone

4 5 6

4 5 6

RESTRICTED IMPORTATION AND EXPORTATION RESTRICTED IMPORTATION AND EXPORTATION

REGULATED IMPORTATION AND EXPORTATION (c) Lottery and sweepstakes tickets, except advertisements thereof
Except when authorized by law or regulation, the
and lists of drawings therein.
• Prior import permit rule: Goods may only be imported importation and exportation of the following restricted
(d) Marijuana, opium, poppies, coca leaves, heroin or other
or exported only after securing the necessary goods are prohibited: narcotics or synthetic drugs which are or may hereafter be
clearances, clearance, or other requirements. (a) Dynamite, gunpowder, ammunitions and other declared habit forming by the President of the Philippines, or
explosives, firearms and weapons of war, or parts any compound, manufactured salt, derivative, or preparation
– Exception: In case of importation, submission of thereof, except when imported by the government of the
thereof;
requirements after arrival of the goods but prior to Philippines or any person duly authorized by the Dangerous
the release from customs custody shall be allowed (b) Roulette wheels, gambling outfits, loaded dice?, Drugs Board, for medicinal purposes;
• but only in cases allowed by governing rules and marked cards?, machines, apparatus or mechanical (e) Opium pipes or parts thereof, of whatever material;
devices used in gambling or the distribution of (f) Any other goods whose importation and exportation are
regulations. (Sec. 117) restricted.
money, cigars, cigarettes or other goods when such
Ø The restriction to import or export restricted goods shall
distribution is dependent on chance, including
include the restriction on their transit. (Sec. 119)
jackpot and pinball machines or similar contrivances,
7
or parts thereof; 8 9

7 8 9

1
 4/26/22

PROHIBITED IMPORTATION AND EXPORTATION PROHIBITED IMPORTATION AND EXPORTATION PROHIBITED IMPORTATION AND EXPORTATION

(a) Written or printed goods in any form containing any (c) Written or printed goods, negatives or (e) Any adulterated or misbranded food or goods
matter advocating or inciting treason, rebellion, cinematographic film, photographs, for human consumption or any adulterated or
insurrection, sedition against the government of the
engravings, lithographs, objects, paintings, misbranded drug in violation of relevant laws
Philippines, or forcible resistance to any law of the
Philippines, or written or printed goods containing any drawings or other representation of an and regulations;
threat to take the life of, or inflict bodily harm upon obscene or immoral character; (f) Infringing goods as defined under the
any person in the Philippines; (d) Any goods manufactured in whole or in Intellectual Property Code and related laws; and
(b) Goods, instruments, drugs and substances designed, part of gold, silver or other precious metals (g) All other goods or parts thereof, which
intended or adapted for producing unlawful abortion, or alloys and the stamp, brand or mark
or any printed matter which advertises, describes or
importation and exportation are explicitly
does not indicate the actual fineness of prohibited by law or rules and regulations
gives direct or indirect information where, how or by
whom unlawful abortion is committed; quality of the metals or alloys; issued by the competent authority.
10 11 12

10 11 12

WHEN IMPORTATION DEEMED ENTERED FOR WHEN IMPORTATION BEGINS AND WHEN DUTY AND TAX DUE ON IMPORTED
CONSUMPTION DEEMED TERMINATED GOODS
• When the carrying vessel or aircraft enters the Philippine
• General rule: All goods, when imported into the
• Imported goods shall be deemed “entered” in territory with the intention to unlade therein. (Sec. 103)
Philippines, shall be subject to duty upon
the Philippines for consumption when the – Two (2) concurring elements
– When jurisdiction starts
importation, including goods previously exported
goods declaration is electronically lodged, • If subject to payment of D&T: from the Philippines.
together with any required supporting – D&T have been paid or secured to be paid at the port of – Except:
documents, with the pertinent customs entry and legal permit for withdrawal has been granted. • As provided for by law; or
office. (Sec. 115) (Sec. 103)
• What is meaning of secured to be paid? – special laws granting exemptions
– Electronic lodgment of goods declaration is • If free from D&T: • As provided for in CMTA.
mandatory – Goods have legally left the jurisdiction of the Bureau of
Customs. (Sec. 103) – Warehousing, transshipment, conditionally
• When does customs re-assume jurisdiction of the free
goods imported duty and tax free?
13 14 15

13 14 15

LEGAL INTEREST ON UNPAID DUTIES AND

TAXES SURCHARGE FOR FAILURE TO PAY BOC REQUIRED TO ISSUE PROOF OF PAYMENT
• Unpaid duties, taxes and other charges, shall incur
legal interest of 20% per annum computed from the § For failure to pay D&T of an assessment within 15
date of final assessment when payment becomes days from the date of final assessment a surcharge • Upon payment of the duties, taxes and other
due and demandable. (Sec. 104) of 10% of the total assessed amount or balance charges, the Bureau shall issue the necessary
thereof shall be added and collected, which receipt or document as proof of such payment. (Sec.
– Assessment shall be deemed final fifteen (15) 104)
days after receipt of the notice of assessment by surcharge shall increase to 25% if the delinquency
the importer or consignee. (Sec. 429) lasts for more than 1 year. (Sec. 1425) – Under current regulations what is issued by
BOC?
– The legal interest shall likewise accrue on any
fine or penalty imposed. (Ibid.)

16 17 18

16 17 18

2
 4/26/22

EFFECTIVE DATE OF RATE OF IMPORT DUTY: APPLICABLE RATE OF DUTY FOR GOODS
WITHDRAWN FROM FREE ZONE FOR RATES OF DUTY FOR GOODS SOLD AT CUSTOMS
APPLICABLE RATE OF DUTY PUBLIC AUCTION
INTRODUCTION TO CUSTOMS TERRITORY
• Imported goods shall be subject to the import duty
• In case of withdrawal from free zones for introduction
rates under the applicable tariff heading that are
to the customs territory, the duty rate at the time of
• In case of goods sold at customs public
effective at the date of importation; or auction, the duty rates at the date of the
withdrawal shall be applicable on the goods originally
– Date of importation is date of lodging goods admitted, whether withdrawn in its original or auction shall apply for purposes of
declaration. advanced form. (Sec. 105) implementing Section 1143(a):
• In case of goods entered for warehousing: – Locator “A” has PEZA IP allowing him to import 5 – Why is there a need to compute duties and
– upon withdrawal from the warehouse for tons of plastic resins duty and tax free. The plastic taxes due on the goods auctioned?
consumption. (Sec. 105) resins were processed into 1,000 plastic chair. 100
plastic chairs were sold to a company operating in
the customs territory.
• What shall be tariff classification and customs
19 value for assessment purposes? 20 21

19 20 21

DECLARANT PERSONS WHO MAY ACT AS DECLARANT

PERSONS WHO MAY ACT AS DECLARANT IN
• Any person who makes a goods declaration or in • A declarant may be a consignee or a person who has the CASE IMPORTER IS A JURIDICAL PERSON
whose name such a declaration is made. (RKC) right to dispose of the goods.
– Goods declaration: a statement made in the • The declarant shall lodge a goods declaration with the
Bureau and may be: • In case the consignee or the person who has the
manner prescribed by BOC and other
(a) the importer, being the holder of the bill of right to dispose of the goods is a juridical person, it
appropriate agencies, by which the persons
concerned indicate the procedure to be lading; or may authorize a responsible officer of the company
observed in the application for the entry or (b) the exporter, being the owner of the goods to be to sign the goods declaration as declarant in its
admission of imported goods and the shipped out; or behalf. (Sec. 106)
particulars of which the customs administration (c) a customs broker acting under the authority of – An importer may either be a natural person or a
shall require. the importer or from a holder of the bill; or juridical person.
(d) a person duly empowered to act as agent or
attorney-in-fact for each holder. (Sec. 106)
22 23 24

22 23 24

SIGNING AND PROCESSING OF GOODS RIGHTS AND RESPONSIBILITIES OF DECLARANT PENALTIES FOR ERRORS IN GOODS
DECLARATION AND CUSTOMS BROKER DECLARATION
• The declarant shall sign the goods declaration, even • The declarant shall be responsible for the accuracy of • The Bureau shall not impose substantial penalties
when assisted by a licensed customs broker, who the goods declaration and for the payment of all duties, for errors when such errors are inadvertent and
shall likewise sign the goods declaration. taxes, and other charges due on the imported goods. there was no fraudulent intent or gross negligence
• The goods declarations submitted to the Bureau • The licensed customs broker shall likewise be in the commission thereof:
shall be processed by the declarant or by a licensed responsible for the accuracy of the goods declaration • Provided, That, in order to discourage repetition of
customs broker. but shall not be responsible for the payment of duties, such errors, a penalty may be imposed but shall not
taxes and other charges due on the imported goods. be excessive. (Sec. 108)
(Sec. 107)

25 26 27

25 26 27

3
 4/26/22

ISSUANCES OF GENERAL APPLICATION AND

RELATIONSHIP BETWEEN BOC AND THIRD RELATIONSHIP BETWEEN BOC AND THIRD
AVAILABILITY OF ISSUANCES
PARTIES PARTIES
• All laws, decisions, rulings, circulars, memoranda
• Parties may transact business with the Bureau • A designated third party shall have the same and orders of the Bureau shall be published in
either directly or through a designated third party rights and obligations as the designating party accordance with law.
to act on their behalf. when transacting business with the Bureau. • To foster an informed compliance regime, the
• The customs transactions directly transacted by a Bureau shall ensure that all relevant and available
• Subject to the provisions of existing laws, information of general application pertaining to
party shall not be treated less favorably or be treaties, convention and international
subject to more stringent requirements than those customs operations and procedures which are not
agreements, the Secretary of Finance shall make confidential or intended for BOC’s internal use only,
transacted through a designated third party (Sec.
the necessary guidelines for the defined shall be readily accessible to any interested person.
110)
relationship of the Bureau and third parties. (Sec. 111)
(Sec. 110)

28 29 30

28 29 30

INFORMATION OF SPECIFIC NATURE

ADVANCE NOTICE REQUIRED INFORMATION OF GENERAL APPLICATION
• The Bureau shall provide information, not otherwise
confidential or for the Bureau’s internal use only,
• Any new information, amendment or changes in • The Bureau shall ensure that all information of relating to a specific matter as may be requested by an
customs law, administrative procedures or general application pertaining to customs, including interested party for legitimate use.
requirements, shall, as far as practicable, be made revisions or amendments thereto, shall be available
readily available prior to its effective date of to the general public. (Sec. 1500) • The Bureau may require the payment of a reasonable
fee in providing such information. The requested
implementation unless advance notice is precluded.
information shall be released within reasonable time
(Sec. 111) from the filing of the request and payment of the
required fee. (Sec. 112)

31 32 33

31 32 33

CHIEF OFFICIALS OF BOC POWERS AND FUNCTIONS OF THE POWERS AND FUNCTIONS OF THE
COMMISSIONER COMMISSIONER
• The Bureau shall be headed by a Commissioner and (e) Delegate the powers vested under CMTA to any
shall be assisted by at least 4 but not more than 6 (a) Exclusive and original jurisdiction to interpret the customs officer with the rank equivalent to division
Deputy Commissioners. The Commissioner shall be provisions of CMTA, in collaboration with other chief or higher, except for the following powers and
appointed by the President of the Philippines. relevant government agencies, subject to review by functions:
• The Deputy Commissioners shall also be appointed by the Secretary of Finance; i. Promulgation of rules and regulations;
the President and at least majority of whom shall come (b) Exercise any customs power, duties and functions, ii. Issuance, revocation or modification of rulings; and
from the ranks of the Bureau. (Sec. 200) directly or indirectly; iii. Compromise or abatement customs obligations.
(c) Review any action or decision of any customs officer - Customs Officer as distinguished from a clerk or
performed pursuant to the provisions of this CMTA; employee, refers to a person whose duty, not being
(d) Review and decide disputed assessments and other clerical or manual in nature, involves the exercise of
matters related thereto, subject to review by the discretion in performing the function of BOC. It may
Secretary of Finance and exclusive appellate also refer to an employee authorized to perform a
34
jurisdiction of CTA; 35 specific function of BOC. 36

34 35 36

4
 4/26/22

POWERS AND FUNCTIONS OF THE FUNCTIONS OF BOC

COMMISSIONER FUNCTIONS OF BOC
(a) Assessment and collection of customs revenues
(f) Assignment or reassignment any customs from imported goods and other dues, fees,
officer subject to the approval of the charges, fines and penalties accruing under CMTA;
(b) Simplification and harmonization of customs
Secretary of Finance: Provided, That District procedures to facilitate movement of goods in
- Assessment refers to the process of determining international trade;
Collectors and other customs officers that the amount of duties and taxes and other charges
perform assessment functions shall not (c) Border control to prevent entry of smuggled
due on imported and exported goods.
goods;
remain in the same area of assignment for - Collection refers to the physical act of receiving
(d) Prevention and suppression of smuggling and
more than 3 years; and payments.
other customs fraud;
(g) Perform all other duties and functions as may
be necessary for the effective
implementation of this CMTA and other
customs related laws. (Sec. 201) 37 38 39

37 38 39

SMUGGLING
• The fraudulent act of importing any good into PH, or the act of FUNCTIONS OF THE BUREAU FUNCTIONS OF THE BUREAU
assisting in receiving, concealing, buying, selling, disposing or
transporting such goods with full knowledge that the same (h) Supervision and control on all import and export cargoes,
(e) Facilitation and security of international trade landed or stored in piers, airports, terminal facilities,
has been fraudulently imported, or the fraudulent exportation and commerce through an informed including container yards and freight stations for the
of goods. Goods referred to under this definition are known
as smuggled goods.
compliance program; protection of government revenue and prevention of
entry of contraband;
– Technical smuggling – the act of importing into the country (f) Supervision and control over the entrance (i) Conduct of compensation studies, and development and
by means of fraudulent, falsified or erroneous declaration and clearance of vessels and aircraft engaged recommendation to the President of a competitive
of the goods to its nature, kind, quality, quantity or weight,
for the purpose of reducing or avoiding payment of
in foreign commerce; compensation and remuneration system to attract and
retain highly qualified personnel, while ensuring that the
prescribed D&T; (g) Supervision and control over the handling of Bureau remains financially sound and sustainable.
– Outright smuggling – the act of importing goods into the foreign mails arriving in the Philippines for (j) Exercise of exclusive original jurisdiction over forfeiture
country without complete customs prescribed importation
the purpose of collecting revenues and cases under CMTA; and
documents, or without being cleared by customs or other
regulatory government agencies, for the purpose of preventing the entry of contraband; (k) Enforcement of CMTA and all other laws, rules and
evading payment of prescribed D&T. regulations related to customs administration. (Sec. 202)
40 41 42

40 41 42

ANNUAL REPORT OF THE COMMISSIONER PROMULGATION OF RULES AND REGULATIONS IMPLEMENTING RULES AND REGULATIONS

• The Commissioner shall submit to the 1. The Commissioner, subject to the approval of the
• The Secretary of Finance shall, upon the
President, the Congress of the Secretary of Finance, shall promulgate rules and
regulations for the enforcement of CMTA. recommendation of the Commissioner, promulgate
Philippines and NEDA an annual report rules and regulations for the effective
2. The Commissioner shall regularly prepare and implementation of CMTA. (Sec. 1800)
on the performance of BOC, on or publish an updated customs manual, and the
before March 31 of the following year. rules, regulations and decisions of the Bureau.
(Sec. 203) The Commissioner shall furnish the Congress of
the Philippines, the NEDA and the Tariff
Commission with electronic copies of department
orders, administrative orders, circulars, and rules
and regulations promulgated pursuant to CMTA.
43 (Sec. 204) 44 45

43 44 45

5
 4/26/22

CUSTOMS DISTRICTS
COPIES OF GOODS DECLARATION • For administrative purposes, the Philippines shall be PORT OF ENTRY
divided into as many Customs Districts as necessary,
• The Commissioner shall regularly furnish NEDA, PSA, the respective limits of which may be changed from • Port of Entry refers to a domestic port open to both
BIR and the Tariff Commission electronic copies of all time to time by the Commissioner, with the approval of domestic and international trade, including principal
customs goods declaration processed and cleared by ports of entry and subports of entry.
the Bureau. the Secretary of Finance. • A principal port of entry is the chief port of entry of
• Upon request, the Tariff Commission shall have access • Each Customs District shall be supervised by 1 District the Customs District wherein it is situated and is the
to, and the right to be furnished with copies of Collector, permanent station of the District Collector of such
liquidated goods declaration and other documents – assisted by as many Deputy District Collectors as port.
supporting the goods declaration as finally filed in • Subports of entry are under the administrative
COA. may be necessary. jurisdiction of the District Collector of the principal
• For this purpose, the Bureau shall maintain electronic • The choice of the location of a District Office, its port of entry of the Customs District.
records of goods declaration and other documents business hours and the staffing pattern thereof, shall be • Port of entry as used in CMTA shall include airport of
supporting the declaration. (Sec. 205) based on the particular requirements of each district. entry;”
(Sec. 206)
46 47 48

46 47 48

PORTS OF ENTRY AREAS AND EQUIPMENT FOR CUSTOMS POWER OF THE PRESIDENT TO OPEN OR CLOSE
• All ports of entry shall be under the supervision and EXAMINATION PURPOSES ANY PORT
control of a Customs District.
– A District Collector shall be assigned in the principal • For the effective enforcement of the Bureau’s
ports of entry. functions and without hampering business and • Upon the recommendation of the Secretary of
– A Deputy District Collector may be assigned to commercial operations of the ports, sea ports and Finance, the President may open or close any port
other types of ports of entry. airport authorities and private ports and airport of entry.
• The principal ports of entry shall be located in Aparri, operators shall provide suitable areas for • Upon closure of a port of entry, the existing
San Fernando, Manila, MICP, NAIA, Subic, Clark, examination and for other customs equipment free personnel shall be reassigned by the Commissioner,
Batangas, Legaspi, Iloilo, Cebu, Tacloban, Surigao, of charge within a definite period of time, as agreed subject to the approval of the Secretary of Finance.
Cagayan de Oro, Zamboanga, Davao, Limay and such with private port and airport operations, if any. (Sec. 208)
other ports that may be created. (Sec. 207) (Sec. 207)

49 50 51

49 50 51

ASSIGNMENT OF CUSTOMS OFFICERS AND DUTIES OF DISTRICT COLLECTOR DUTIES OF DISTRICT COLLECTOR
EMPLOYEES TO OTHER DUTIES (1) ensure entry of all imported goods at the (6) hold and dispose imported goods;
customs office; (7) prevent smuggling and other customs fraud; and
• The Commissioner, with the approval of the
Secretary of Finance, may assign any employee of (2) prevent importation and exportation of (8) perform other necessary duties that may be
the Bureau to any port, service, division or office of prohibited goods; assigned by the Commissioner.
the Bureau within the Bureau’s staffing pattern or (3) ensure legal compliance of regulated goods - Subject to the supervision and control of the
organizational structure, or be assigned other and facilitate the flow of legitimate trade; District Collector, the duties and functions of the
duties: (4) examine, classify and value imported goods; District Collector may be delegated to the
– Provided, That such assignment shall not affect (5) assess and collect duties, taxes and other Deputy District Collector.
the employee’s tenure of office nor result in a charges on imported goods. - The Deputy District Collector assigned to a sub-
change of status, demotion in rank and/or salary
port shall be under the supervision and control
deduction. (Sec. 209)
of the District Collector of the corresponding
52 53
principal port. (Sec. 210) 54

52 53 54

6
 4/26/22

TEMPORARY SUCCESSION OF DEPUTY DISTRICT

COLLECTOR TO POSITION OF ACTING DISTRICT
COLLECTOR
• In the absence or disability of a District Collector or, in case
of vacancy, the Deputy District Collector shall temporarily
discharge the duties of the District Collector.
– Should there be no Deputy District Collector, the District
Collector shall designate, in writing, a senior ranking
customs officer to temporarily perform the duties of the
District Collector.
– In case there are 2 or more senior ranking customs
officers with equal length of service, a drawing of lots
shall be undertaken.
– The District Collector shall report the designation to the
Commissioner within 24 hours after the designation. (Sec.
55
211)

55