Prepared by: Prof. Joyce Anne L.

Santos, LCB

Relief consignment; Traveler and Passenger

Baggage; Postal Mails; Express Shipments of Air
Express Operators

Get Started
SEC 102. (tt) Traveler refers to any person who

➢ temporarily enters the territory of a country

in which he or she does not normally resides
(non-resident),

➢ or who leaves that territory, and any person

who leaves the territory of a country in which
he or she normally resides (departing
resident)

➢ or who returns to that territory (returning

resident)
1. All arriving travelers and crew shall accomplish a Customs Baggage Declaration Form (CBDF) to be
prescribed by the Bureau which will be submitted to the assigned customs officer at the Customs
arrival area for clearance. In addition to CBDF, the following additional documents must also be
presented during the clearance process:

a. Owner’s Pre-Departure Declaration Form or Certificate of Identification (CI) for goods

previously exported;

b. A duly filled out Foreign Currency Declaration for travelers carrying foreign currency in
excess of USD10,000.00 or its equivalent in other foreign currency and foreign currency
denominated bearer monetary instruments.

c. Authorization duly issued by BSP for travelers with more than PHP50,000.00 in local
currency; and

d. Necessary permits/clearances from the regulatory government agency in case of restricted

and regulated goods in excess of the limits allowed by the agencies
2. Foreign Travelers with Diplomatic Status, who are duly documented
and acknowledged as such under the law, shall continue to avail of
the privileges accorded to them by applicable convention, laws, rules
and regulations as regards to traveler and passenger baggages;

3. The Bureau shall adopt and implement an advanced information

and traveler record system as a risk management tool in traveler
processing;
4. The Bureau shall create different lanes to cater different types of
travelers which shall include but not limited to the following:

a. OFWs, Returning Residents and Non-Resident Filipinos;

b. Foreign Travelers which with Diplomatic Status;

c. Airline Crew Members; and

d. Traveler with Accompanied and/or Unaccompanied Baggage

containing goods in commercial quantity
5. Baggage of arriving Travelers and Crew shall be subject to non-
intrusive inspection. When necessary, scanned Baggage may be
subject to physical inspection;

6. The Traveler, Crew, or any Baggage may be subject of inspection

based on derogatory information or reasoned and/or random
selection.
For this purpose, the Bureau shall restrict the entry of unauthorized
personnel into the customs arrival area, including the baggage
carousel area;
7. Tobacco goods, liquors, wines, and spirits brought in as
Accompanied Baggage even if within De Minimis Value, shall be
subject to Excise Tax.

Whenever such goods are purchased at Philippine Duty Free Stores

upon arrival of travelers and within the allowable quantity limits,
shall no longer be assessed the duties and taxes due;
8. Dutiable goods in accompanied baggage brought in by travelers thru the
airports which are intended for re-exportation may be:

a. Allowed release upon posting of cash bond amounting to 100% of the

assessed duties and taxes; or

b. Temporarily deposited for safekeeping in the deposit facility subject to

the following conditions :

i. Re-exportation shall conform to the date of departure but which shall not exceed three (3)
months from the date of acceptance of the goods;
ii. Full payment of Service and Storage Fees upon deposit of the goods;
iii. Rates of Service and Storage Fees shall be subject to periodic review and may increased or
decreased upon the approval of the Commissioner;
iv. Inventory of the items reflected in the appropriate form to be signed by the traveler and
authorized customs officer.
c. Failure to re-export the goods within the period agreed upon
shall subject the cash bond and the goods to forfeiture;

d. The deposit facility may be under the ownership and control of

the Bureau or outsourced from a third-party provider.
9. Baggage whether brought in or sent by Qualified Filipinos While
Abroad with value of more than PHP10,000.00 shall, at the option of
the Filipino traveler, be governed by Section 800(g) – Balikbayan box
of the CMTA insofar as the value of the Baggage and the frequency of
availment is concerned.

For the availment of the tax and duty exemption pursuant to said
Section, a processing fee of PHP250.00 (inclusive of LRF of PHP10.00)
shall be collected.

The Commissioner shall periodically review the processing fee and

revise the same accordingly;
10. Departing travelers with goods for export in commercial
quantities shall accomplish and file with the Bureau a Special Permit
to Load (SPL).

For goods that will be returned, the traveler shall accomplish a

simplified Owner’s Pre-Departure Declaration Form or CI for
presentation upon his return to the Customs Officers at the Arrival
Area.
11. Dutiable Goods that are not declared by any person arriving within
the Philippines, if not imported contrary to law shall be seized and
the traveler may obtain release of such goods, upon payment of a
surcharge equivalent to thirty per cent (30%) of the landed cost of
such goods , in addition to all duties, taxes and other charges due.

Nothing in this provision shall preclude the filing of criminal action

against the offender;

SECTION 1404. Failure to Declare Baggage.

12. Without prejudice to other provisions of the CMTA, imported goods
are deemed abandoned once the assessed duties taxes and other
charges have been paid and the owner, importer or consignee or
interested party after due notice, fails to claim the goods within thirty
(30) days from payment.

For this purpose, the Interline Operator and/or the Baggage Assistance
Division operator shall report the unclaimed goods to the District Collector
for disposition pursuant to the provisions of the said Act;
13. Any misdeclaration as to quantity, quality, description, weight or
measurement of the goods, resulting to a discrepancy in duty and tax
to be paid between what is legally determined upon assessment and
what is declared, shall be subject to surcharge equivalent to two
hundred fifty per cent (250%) of the duty and tax due. No surcharge
shall be imposed when the discrepancy in duty is less than ten per
cent (10%);

14. Any undervaluation in goods declaration, shall be imposed a

surcharge equivalent to 250% of the duty and tax due. No surcharge
shall be imposed when the discrepancy in duty is less than ten per
cent (10%).
1. OFWs, Resident Filipinos, Returning Residents and Non-Resident
Filipinos- shall undergo regular clearance formalities;

2. Crew Members- Baggage of Crew Members shall undergo

mandatory physical examination;

3. Resident Aliens and other Foreign Travelers- Other travelers not

falling under 1 and 2 shall undergo clearance procedures based on
traveler profiling and risk management control measures.
1. For availment of Section 800 (f) of CMTA, the Returning Resident or
OFW shall accomplish the Personal and Household Effects
Declaration Form (PHED) which may be downloaded from the
Bureau’s website and filled out prior to arrival; or secured from the
Customs Officer at the arrival area.

The duly filled out PHED Form shall be submitted to the Customs
Officer manning the Customs counter at the arrival area.

The PHED Form shall contain the following basic information:

a. Complete name of the traveler, date of birth, citizenship, passport number, address
abroad and in the Philippines, contact number and e-mail address, if any;

b. Contents, quantity, unit value and total value of Baggage;

c. Packing List information which shall contain an itemized listing of all goods in each
box and their respective quantities and description;

d. Names of accompanying family members and their respective passport numbers;

e. Date of last departure from the Philippines; and

f. Estimated date of arrival of the Returning Resident or OFW in the Philippines

2. For availment of Section 800 (g), the OFWs, Resident Filipinos,
Returning Residents and Non-Resident Filipinos shall accomplish and
Information Sheet which may be downloaded from the Bureau’s
website and filled out prior to arrival or secured from the Customs
Officer at the arrival area.

The duly filled out Information Sheet shall be submitted to the

Customs Officer manning the Customs counter in the arrival area.
The Information Sheet shall contain the following basic information:
a. Complete name of traveler, date of birth, citizenship, passport details, address
abroad and in the Philippines, contact number and e-mail address, if any;

b. Packing List Information which shall contain an itemized listing of all goods in each
Balikbayan Box and their respective description, quantities, unit value and total value;

c. Number of availments within the calendar years; and

d. Other essential information as may be required by the Bureau

a. Mistagged baggage;
b. Erroneously off-loaded baggage;
c. Advanced or delayed baggage;
d. Left behind of unclaimed baggage;
e. Transit baggage for foreign destinations
1. Baggage received, handled and placed at the IBR shall be covered by an Unclaimed
Baggage Report (UBR) to be issued by the Airline company, who shall furnish the copy
thereof to the interline operator and the Bureau;

2. Interline Baggage shall be subject to non-intrusive inspection before storage;

3. All claimed Interline Baggage for entry into the Philippines shall be subjected to 100%
physical examination by the Customs Officer in the presence of the traveler or authorized
representative to determine the duties, taxes and other charges due thereon;

4. All Interline Baggage, which remained unclaimed after 30 days from arrival shall be
subject to abandonment proceedings;

5. The Airline shall be required to furnish the Bureau a copy of a Property Irregularity Report
(PIR) issued to the passenger for delayed Baggage
In-Bond Baggage- refers to Baggage received, handled and placed at the
Customs In-Bond Baggage Room (CBR) due to the following:

a. Insufficient funds for payment of duties, taxes and other charges assessed;

b. Lack of presentation of the required permit/clearance from the Government

Agency concerned; or

c. Violates the Customs rules and regulations and other related laws
1. Baggage received, handled and placed at the CBR shall be covered by a Held Baggage
Receipt (HBR) which is secured from the CBR, Baggage Assistance Division and to be issued
by a Customs Officer;

2. In-Bond Baggage shall be subject to physical inspection before storage;

3. All In-Bond Baggage, which are prohibited in nature, shall be turned over to the
appropriate agencies;

4. All In-Bond Baggage, which remained unclaimed after 30 days from arrival shall be subject
to abandonment proceedings
All international baggage ultimately destined
to a domestic port shall be cleared ad the first
port of entry in the Philippines
1. The Bureau shall establish a system that is capable of interfacing
with the designated postal operator of the Philippines for the
submission of the following:

a. Advance copy of the Postal Customs Declaration Form for Postal Item
from countries wherein the designated postal operator of the Philippines has
a bilateral or multilateral agreement;
b. List of Postal Items received which should contain at least the
following:
i. Addressee or claimant’s name;
ii. Address;
iii. Contact Number (e-mail or
mobile number);
iv. Sender;
v. Origin;
vi. Declared description of goods;
vii. Declared value of the content;
viii. Declared weight; and; ix.
Postage and other fees paid
c. List of unclaimed postal items beyond thirty (30) days from the
third delivery of the Notice Card to the addressee or claimant;

d. List of Returned to Sender Postal Item;

e. List of Postal Items that were redirected to a third country;

f. List of damaged Postal Items;

g. Periodic reports on the Postal Items received, handled, processed and
dispatched by
1. Central Mail Exchange Center (CMEC),

2. Foreign Surface Mail Distribution Center (FSMDC),

3. and other similar Postal Items receiving and distribution centers; and

h. The List required under 4.1.3 to 4.1.7 of CAO 3-2017 shall include this
Postal Items dispatched thru various Offices of Exchange (OE)
2. The Bureau shall maintain, in collaboration with the designated postal
operator of the Philippines, centralized offices for the examination and
assessment of customs duties, taxes, and other charges of postal items
arriving and for delivery within the Philippines:

a. One receiving and distribution center at OE for Postal Items arriving by air including
Surface Airlifted (SAL) Postal Items;

b. One receiving and distribution center at OE for Postal Items conveyed by sea;

c. One receiving and distribution center at OEs that may be established in the future.
3. The designated postal operator of the Philippines shall secure prior
arrival from the District Collector for the re-exportation of
-Misrouted Postal Item,

-Missent Postal Item, or

-Damaged Postal Item to be returned to Sender;

4. The transfer of Postal Item from the carrier to the Receiving

Distribution Center up to the final OE shall be under the continuous
supervision of the Bureau;
5. Carriers shall be required to submit the IFM and OFM to the Bureau
within the prescribed period;

6. Rules and regulations on De Minimis importation shall apply to Postal

Item falling within the De Minimis Value.

Postal Items shall be released under a simplified clearance procedure

using Postal Customs Declaration Form unless another form is otherwise
prescribed;
7. Postal Items with an FCA/FOB Value of more than PHP50,000.00 shall be
cleared thru a Formal Entry Process and shall require the lodgment of
goods declaration;

8. The following shall be cleared thru an Informal Entry Process using the
form prescribed by the Bureau;

a. Those covered by Section 800 (f) and (g) of CMTA;

b. Goods of commercial nature with FCA/FOB Value of less than PHP50,000.00;
c. Personal and household effects or goods, not in commercial quantity
1. Goods redeemed or claimed from airlines, hotels, magazines, online bloggers, etc.,
thru mileage or points earned by the addressee or claimant;

2. Conditionally free importations under Section 800 of CMTA;

3. Postal Items that are non-compliant with the conditions imposed by the concerned
regulatory agency;

4. Postal Items declared as “Without Commercial Value” or of “No Commercial Value”

or with specific amount but qualified by the phrase “For Customs Purposes” or
analogous phrases. Hence the sender must declare in Postal Customs Declaration
Form the specific value of goods;
5. Importation of tobacco, cigars, cigarettes, and liquor products within the De
Minimis value shall be subject to excise tax;

6. Prohibited and Restricted Postal Items as provided for under the CMTA and the
Universal Postal Convention and its Regulations;

7. Postal Items to be entered conditionally free, for warehousing, for transit, and/or
for admission to Free Zone;

8. Postal Items purchased online and with discount which shall be subject to
presentation of transaction record such as credit card statement or confirmation of
the receipt of the seller
CORRESPONDENCE AND
DOCUMENTS
1. The AECO shall ensure that non-document shipments are not mixed
with Correspondence and Documents. Should this occur, the AECO
shall provide supporting documents to the Bureau that the non-
document shipment was manifested correctly.
Any shipment found to contain dutiable goods shall be segregated from
Correspondence and Documents and the same shall be filed and cleared separately.

2. The detailed e-CIFCM for all Correspondence and Documents shall

serve as the Goods Declaration.
CORRESPONDENCE AND
DOCUMENTS
3. Prior to release, the Bureau shall conduct a non-intrusive examination for
shipments classified as Correspondence and Documents.

4. All Correspondence and Documents shall be placed in a sealed green bag.

5. Documents included in the e-CIFCM for Correspondence and Documents shall

be cleared without payment of duty and tax.

6. The Bureau shall utilize risk management techniques in determining criteria

for the physical and documentary examination of documents, e.g., weight,
volume.
DE MINIMIS SHIPMENTS

- shall refer to the value of goods for which no duty and taxes is collected. Prior
to the arrival of the shipments and to enable the processing of Express
Shipments, the AECO shall submit to the Bureau a detailed e-CIFCM of all De
Minimis Shipments with FOB/FCA Value of Php10,000.00 or less

1. The detailed e-CIFCM shall also serve as the goods declaration for all De Minimis
shipments, but regulated goods shall be declared separately per HAWB.

2. The Customs Examiner shall carry out risk assessment on the e-CIFCM submitted
by the AECO and tag shipments for physical examination and require submission of
clearance or permit from the concerned regulatory agency, if applicable.
LOW VALUE, DUTIABLE AND/OR TAXABLE EXPRESS SHIPMENTS -
SHALL REFER TO GOODS WITH FOB/FCA VALUE OF MORE THAN
PHP10,000.00 BUT LESS THAN PHP50,000.00.
Subject to the application of risk-based management techniques, the Bureau
shall allow the advanced processing of Low Value, Dutiable and/or Taxable
Express Shipments subject to the following conditions:

1. The e-CIFCM shall be submitted to the Bureau prior to arrival of the goods for
purposes of processing information, calculating the amount to duties and taxes
payable and for selecting shipments for documentary or physical examination
or both, if deemed necessary. The e-CIFCM must also contain the following
information:
a. Customs Duty Amount; c. Express Clearance Fee; and
b. Value Added Tax; d. Other Charges (i.e., fines and penalties)
LOW VALUE, DUTIABLE AND/OR TAXABLE EXPRESS SHIPMENTS -
SHALL REFER TO GOODS WITH FOB/FCA VALUE OF MORE THAN
PHP10,000.00 BUT LESS THAN PHP50,000.00.

2. A simplified goods declaration containing the information required by the

Bureau shall be filed by the AECO prior to the arrival of the goods.

3. Low Value, Dutiable and/or Taxable Express Shipments with a value of less
than Php50,000.00 may be released prior to the payment of the assessed
customs duty, tax and other charges subject to the posting by the AECO of a
bank guaranty which shall act as security deposit as provided under Section 11
of this CAO and provided further that the following are present:
LOW VALUE, DUTIABLE AND/OR TAXABLE EXPRESS SHIPMENTS -
SHALL REFER TO GOODS WITH FOB/FCA VALUE OF MORE THAN
PHP10,000.00 BUT LESS THAN PHP50,000.00.
3.a. The informal entry for Express Shipments sought to be released shall have been duly filed and
processed;
3.b. The documentary and/or physical examination of the cargo, if necessary, has been completed,
and the duties, taxes and other charges due on the consignment have been properly determined by
the Bureau;
3.c. Only such number of shipments with aggregate assessed duties, taxes and other charges not
exceeding the amount guaranteed by an AAB shall be allowed to be released;
3.d. The shipment sought to be released shall is not subject to any alert or hold order issued by the
authorized Alerting Unit of the Bureau; and
3.e. The AECO shall submit to the District Collector a notarized written commitment executed by an
AAB, guaranteeing to pay the Bureau upon demand whatever customs duties, taxes and other
charges assessed on any import not paid by the AECO
HIGH VALUE SHIPMENTS
- shall refer for the shipments with an FOB Value of Php50,000.00 and above.
Each shipment shall be declared individually through the Customs Cargo
Clearance System and shall processed under formal entry

TREATMENT OF SPLIT CONSIGNMENTS

Two or more low-value non-document express consignment which appears on
the e-CIFCM to have the same shipper and the same consignee, the aggregate
value of which amounts to Php50,000.00 or more, or its foreign currency
equivalent value at the date of arrival of the shipment shall be treated as a
single consignment and will require filing of formal entry.
MIS-SORTED OR MISROUTED SHIPMENTS
Mis-Sorted or misrouted shipments may be returned to the shipper without
payment of duties, taxes and other charges under the following circumstances:
1. The AWB indicates that the consignee’s address is other than the Philippines;

2. The AWB indicates that the consignee’s address is the Philippines, but the labels or markings
clearly show that the destination of the shipment is other than the Philippines and the Bureau has
verified the same;

3. The Bureau is notified prior to the arrival of the shipment and lodgment of goods declaration that
the same is mis-sorted or misrouted; and

4. The shipment is not subject of an alert order or derogatory information and the same is not
regulated, restricted or prohibited upon conduct of non-instrusive inspection
The AECO shall re-export the same within 24 hours from the arrival of the
shipment. The Bureau shall require the AECO to provide a designated and
secured area for mis-sorted or misrouted shipment.

The AECO shall also submit electronically a monthly summary of all mis-sorted
and misrouted shipments to the Bureau with the following information:
a. Arrival into the Philippines;
b. Departure Date from the Philippines;
c. Export AWB Number;
d. Export Flight Number;
e. Correct Destination; and
f. Document showing proof of landing or other evidence of re-exportation.

For purposes of recording, the Bureau shall compute the duties and taxes that should
have been collected from the shipment had it not been mis-sorted or misrouted.
SECURITY DEPOSIT

• In case of Low Value, Dutiable and/or Taxable Express Shipment, the

AECO shall deposit and maintain in AAB the amount of Php5,000,000.00
specifically to guaranty immediate payment by the bank upon demand
by the Bureau.

In case of default on the part of the AECO to pay the assessed customs
duties, taxes and other charges due on shipments that were released
under Section 6.3.3 of this CAO, the Bureau shall deduct the security
deposit the payment of duties, taxes and other charges.
SECURITY DEPOSIT

• The security likewise covers mis-sorted and misrouted shipments being

returned to the shipper.

In case of failure to show proof of landing or evidence or re-exportation

or that the said shipment was not re-exported within 24 hours from
arrival, the amount of duties, taxes and other charges which should have
been collected shall be deducted from the security by way of penalty
ACCREDITATION OF AECO

The AECO shall be accredited by the Bureau before it can avail of the
privileges for handling Air Express Shipments. The applicant for
accreditation shall comply with the following:

1. Accreditation by the Bureau as an Importer;

2. Accreditation by the Bureau as a CFW Operator;
3. Must be accredited by CAB as a freight forwarder;
4. Proof of membership to a recognized existing international organization for
air express operators, i.e., Conference of Asia Pacific Express Carriers (CAPEC);
ACCREDITATION OF AECO

5. Certification as an operator of a global or regional hub for handling express

shipments;
6. Must have dedicated air carrier for their use as Air Express Operator;
7. Must have integrated end-to-end tracking system; and
8. Must have at IT system capable of interfacing with the Bureau’s automated
system.
EXCLUSIONS FROM IMMEDIATE RELEASE

1. Importations declared as “without commercial value”, ”of no

commercial value’ or with specific amount but qualified by the phrase
“for customs purposes” or analogous phrases.
Hence the sender, importer, consignee, AECO must declare the specific
value of the goods supported by available invoice, receipt or equivalent
document, if any, except Correspondences and Documents classified
under Category 1 of the WCO Guidelines for the Immediate Release of
Consignments by Customs.
EXCLUSIONS FROM IMMEDIATE RELEASE

2. Goods subject to requirements or conditions imposed by the concerned

regulatory agency unless for personal use and within the limits allowed
by the regulations.

Regulated Goods with De Minimis Value shall comply with the

requirements of the concerned regulatory agencies. However, when the
importations consist of Regulated Goods of personal use and in limited
quantity as determined by the implementing regulatory agencies, the
same may be processed and released by the Bureau.
EXCLUSIONS FROM IMMEDIATE RELEASE

3. Importations to be entered conditionally-free, for warehousing, for

transit and/or admission to free zone
EXPRESS SHIPMENT RESTRICTIONS

The following shall not be considered as an Express Shipments:

1. Prohibited and/or Restricted Goods under the Philippine Laws;

2. Dangerous Goods and/or Hazardous substances such as explosives and other
hazardous chemicals under RA 6969;
3. Valuable such as jewelry, works of art and the like;
4. Animals, fishes and fowls;
5. Foodstuff and highly perishable articles;
6. Human remains or cadavers; and
7. Money (coins, cash, paper money and negotiable instruments equivalent to cash)