CHAPTER 2 warehouse, and accept a bond for its

operation and maintenance if the

CUSTOMS WAREHOUSES applicant was compliant with the
prescribed requirements; and
SEC. 801. Establishment and Supervision of
Customs Bonded Warehouses. – When the (5) The operator of the bonded
business of the port requires such facilities, warehouse shall pay an annual
the District Collector, subject to the supervision fee in an amount to be
approval of the Commissioner, shall fixed by the Commissioner.
designate and establish warehouses for use
as public and private bonded warehouses, What is a Customs Bonded Warehouse?
yards, or for other special purposes.
CAO 1-2022
All such warehouses and premises shall be A Customs Bonded Warehouse shall refer to a
subject to the supervision of the District warehouse authorized/licensed by the Bureau
Collector, who shall impose such to import, receive, and store, without payment
conditions as may be deemed necessary for of duties and taxes and under bond, goods,
the protection of the revenue and of the raw materials, accessories, and packing
goods stored therein. materials either for manufacture into finished
products for export or storage for the account
In the exercise of the District Collector's of accredited exporter/client.
supervisory functions herein and in the
Bureau's implementation of this chapter, Section 4.1 (2nd Par.)
existing contracts of private operators with A CBW includes the surrounding premises
appropriate government agency or within its perimeter fence per approved
regulator, such as, but not limited to, the application, rooms, compartments, and other
Philippine Ports Authority (PPA), Subic Bay areas necessary and exclusively used for
Metropolitan Authority (SBMA) and Phividec storing, processing, repacking, and
Industrial Authority (PIA) and their manufacturing imported raw materials and the
respective authorities and powers already finished product, by-products, wastages and
granted by law pertinent to such contracts, rejects incident to such activities as applied for
shall not be impaired or adversely affected. and approved by the Bureau. No other
establishment shall be allowed thereat except
Goods manufactured in whole or in part of upon proper approval of the Bureau and under
imported materials, and intended for such conditions as may be imposed by the
exportation, may be made and Bureau.
manufactured in a bonded manufacturing
warehouse subject to the following At what point should a Customs Bonded
conditions: Warehouse be established?

(1) The manufacturer shall file sufficient When the business of the port requires such
security for the faithful observance of facilities, a Customs Bonded Warehouse may
all laws, rules and regulations be established.
applicable thereto;
CAO 1-2022
(2) The application for the establishment
4.1. Establishment of Customs
of bonded warehouses must be made
in writing and filed with the customs Warehouses. When the business of the port
officer, describing the premises, the and trade requires such facilities, the District
location, and capacity of the same, and Collector, subject to the approval of the
the purpose for which the building is Commissioner, shall designate and establish
to be used, pursuant to Section 804 of customs warehouses for the storage of
this Act; imported goods or for other special
purposes.
(3) From the receipt of the application,
the customs officer shall examine the A CBW includes the surrounding
premises, evaluate its location, premises within its perimeter fence per
construction, and means provided for approved application, rooms, compartments,
the safekeeping of the goods; and other areas necessary and exclusively
used for storing, processing, repacking, and
(4) The customs officer may authorize the manufacturing imported raw materials and
establishment of the customs bonded the finished product, by-products, wastages
 and rejects incident to such activities as control, direction and management for customs
applied for and approved by the Bureau. No purposes. (CMO 18-2022)
other establishment shall be allowed thereat
except upon proper approval of the Bureau What is the purpose of supervising such
and under such conditions as may be warehouses and premises?
imposed by the Bureau.
The Collector shall impose such conditions as
ETHIDa

may be deemed necessary for the protection

Who designates and establishes of the revenue and of the goods stored
warehouses? therein.
The District Collector, subject to the approval
of the Commissioner, shall designate and In exercising the supervisory functions of
establish warehouses for use as public and the District Collector and the Bureau’s
private bonded warehouses, yards, or for other implementation of Chapter 2 (CMTA), what
special purposes. limitation does the law provide regarding
existing contracts with private operators?
After its establishment, who is responsible
for supervising these warehouses and Existing contracts of private operators with
premises? appropriate government agencies or
It shall be subject to the supervision of the regulators, such as, but not limited to, the
District Collector, within the limits of the place Philippine Ports Authority (PPA), Subic Bay
where the District Port is located. Metropolitan Authority (SBMA) and Phividec
Industrial Authority (PIA) and their respective
CAO 1-2022 authorities and powers already granted by law
For the protection of government revenue, all pertinent to such contracts, shall not be
CBWs shall be considered as extension of the impaired or adversely affected.
customs premises insofar as the dutiable
goods stored and introduced thereat. CBWs, CMO 18-2022
including their expansion, extensions and Goods — shall refer to articles, wares,
additional facilities and the goods stored merchandise, and any other items which are
thereat, shall be subject to the supervision and subject of importation or exportation.
control of the District Collector. The supervision Goods Declaration — shall refer to a
and control of the District Collector over statement made in the manner prescribed by
warehouses shall extend to the warehouse and the Bureau and other appropriate agencies, by
facilities of duly authorized members, which the persons concerned indicate the
Client/End-Users, Client-Exporters, and sub- procedure to be observed in the application for
contractors of CBWs. the entry or admission of imported goods and
the particulars of which the customs
NOTE: administration shall require.
In cases where the Client/End-User, Client- Importation — shall refer to the act of bringing
Exporter, or sub-contractor is also a Free Zone in of goods from a foreign territory into
locator/enterprise, the exercise of supervision Philippine territory, whether for consumption,
and control shall be coordinated with the warehousing, or admission.
government agency concerned. Dangerous or Hazardous Goods — shall
refer to substances, materials, and articles
Who are accredited clients/end-users? covered by the International Maritime
Accredited clients/end-users shall refer to Dangerous Goods (IMDG) Code and those
natural or juridical persons authorized by the defined by law or those by which, on account of
Bureau to be clients/end-users of Industry- their nature, cannot be stored in general cargo
specific CBW (ICBW). storage and require special handling.

Who are accredited client exporters? What goods may be made and
Accredited client-exporters shall refer to client- manufactured in a BONDED
exporters accredited by the Bureau to receive MANUFACTURING WAREHOUSE?
finished goods manufactured by MCBWs to be
used in their registered export activities. Goods manufactured in whole or part of
imported materials are intended for exportation.
What is Customs Premises?
Customs Premises shall include customs What conditions need to be complied with
offices, facilities, warehouses, ports, airports, before goods may be made and
wharves, infrastructure, and other areas over manufactured in a bonded manufacturing
which the Collection Districts have exclusive warehouse?
 compartments, and
The following conditions are as follows: other areas necessary
and exclusively used
(1) The manufacturer shall file sufficient for storing,
security for the faithful observance of all processing, repacking,
laws, rules, and regulations applicable and manufacturing
thereto; imported raw
materials and the
(2) The application for the establishment of finished product, by-
bonded warehouses must be made in products, wastages
writing and filed with the customs and rejects incident to
officer, describing the premises, the such activities as
location, and capacity of the same, and applied for and
the purpose for which the building is to be approved by the
used, pursuant to Section 804 of this Act; Bureau. No other
establishment shall be
(3) From the receipt of the application, the allowed thereat except
customs officer shall examine the upon proper approval
premises, evaluate its location, of the Bureau and
construction, and means provided for the under such conditions
safekeeping of the goods; as may be imposed by
the Bureau.
(4) The customs officer may authorize the
establishment of the customs-bonded
warehouse and accept a bond for its What goods may be made and
operation and maintenance if the manufactured in a bonded manufacturing
applicant is compliant with the warehouse?
prescribed requirements and
Goods manufactured in whole or in part of
(5) The operator of the bonded warehouse imported materials AND intended for
shall pay an annual supervision fee in exportation may be made and manufactured in
an amount to be fixed by the a bonded manufacturing warehouse.
Commissioner.
What condition is set by law for the
ESTABLISHMENT manufacturer to observe all applicable laws,
CAO 01-2022 CMO 18-2022 rules, and regulations faithfully?
CBW CFW
SECTION SECTION Sufficient Security.
4. General Provisions. 4. General
— Provisions. — What is Security
4.1. Establish 4.1. Establishm Security refers to any form of guaranty, such as
ment of Customs ent of CFWs. a surety bond, cash bond, standby letter of
Warehouses. When When the credit, or irrevocable letter of credit, which
the business of the business of the ensures the satisfaction of an obligation to the
port and trade port and trade Bureau. (CMTA Section 102mm)
requires such requires
facilities, the District such facilities, What are the formal requisites required for
Collector, subject to the Collection the application of establishment of a
the approval of the District, subject Bonded Manufacturing Warehouse?
Commissioner, shall to the approval
designate and of the 1. It must be made in writing;
establish customs Commissioner, 2. filed with the customs officer;
warehouses for the shall designate 3. describing the premises, the location,
storage of imported and establish and capacity of the same; and
goods or for other CFWs for the 4. the purpose for which the building is to
special purposes. storage of be used, pursuant to Section 804 of this
A CBW imported goods Act;
includes the or for other
surrounding premises special From the receipt of the application, what is
within its perimeter purposes. the duty of the Customs Officer who
fence per approved received the application?
application, rooms,
The Customs Officer shall: Above Php3 Million but Php25,000.00
1. examine the premises; not more than Php15
2. evaluate its location; Million
3. evaluate its construction; and Above Php15 Million but Php50,000.00
4. means provided for the safekeeping of not more than Php50
the goods; Million
Above Php50 Million Php100,000.00
What happens if the applicant is compliant For every extension
with the prescribed requirements? warehouse
Operator of CCBW and Php50,000.00
The customs officer may authorize the its accredited member
establishment of the customs bonded
warehouse and accept a bond for its operation 5.31.4. Other Types of CBW shall pay an
and maintenance if the applicant complies with Annual Supervision Charge of
the prescribed requirements. Php250,000.00.
Who shall pay the annual supervision fee? 5.32. CFW Annual Supervision Charge. An
annual supervision charge shall be paid by
The operator of the bonded warehouse shall the CFW Operator based on the following
pay an annual supervision fee in an amount to schedule:
be fixed by the Commissioner.
Main Facility Php250,000.00
CAO 02-2024
5.31. Annual Supervision Charge Additional Facility Php50,000.00 for
(Formerly Annual Supervision Fee) for every additional
CBWs. An annual supervision charge shall facility
be paid by the CBW Operator based on the
following schedule.
5.31.1. Miscellaneous Manufacturing
Bonded Warehouse (MMBW) and
Garments and Textiles Manufacturing
Bonded Warehouse (GTMBW)
Supervision Charge.

Total Assets in Peso Annual

(excluding real estate) Supervision
Fee
Php5 Million and below Php50,000.00
Above Php5 Million but not Php150,000.00
more than Php50 Million
Above Php50 Million Php250,000.00
For every extension Php50,000.00
warehouse

5.31.2. Industry-specific CBW (ICBW).

ICBW servicing Airline Php50,000.00

Industry
Other ICBW (including Php250,000.00
airline catering)
For every extension Php50,000.00
warehouse

5.31.3. Customs Common Bonded

Warehouse (CCBW).

Operator of CCBW Php250,000.00

Every accredited member of CCBW
Total assets in Peso Rate
(Excluding real estate)
Php3 Million and below Exempted
 packing materials for export within a
specified period.
b. Garments and Textile Manufacturing
Bonded Warehouse (GTMBW). It is a
warehouse established and jointly
authorized by the Bureau and the
SEC. 802. Types of Customs Bonded GTIDO to import, receive, and store
Warehouses (CBWs). – Customs bonded duty and tax-free and, under bond, raw
warehouses may be classified as either materials and accessories for the
manufacturing or nonmanufacturing. manufacture of garments or textiles,
including packaging and packing
Manufacturing customs bonded warehouse materials for export within a specified
may be of the following types: period.
(a) miscellaneous customs bonded c. Customs Common Bonded
warehouse; Warehouse (CCBW). It is a warehouse
(b) customs common bonded warehouse; established and duly authorized by the
or Bureau alone or jointly with GTIDO, in
(c) industry-specific bonded warehouse. the case of the garments industry, to
import, receive, and store, duty-free and
Nonmanufacturing customs bonded under bond, raw materials and
warehouse include: accessories for the account of its
(a) public bonded warehouse; accredited members for manufacture
(b) private bonded warehouse; or into finished products for export
(c) other customs facilities. including packaging and packing
materials.
What are the classifications of Customs d. Industry-Specific Customs Bonded
Bonded Warehouses? Warehouse (ICBW). It is a warehouse
duly authorized by the Bureau to import
The classifications of CBW are: under bond and under its name and
1. Manufacturing CBW account, goods or raw materials (except
2. Nonmanufacturing CBW fibers, yarns, fabrics and accessories
for the manufacture of garments) for
What is Manufacturing CBW? storage and subsequent sale and
CAO 01 – 2022 - Customs Bonded transfer to its accredited Client/End-
Warehouses User either for export of the bonded
goods or for manufacturing into export
Section 4.3 - It is a warehouse established for products, in case of raw materials.
the manufacture of products utilizing raw
materials or components that are imported duty CAO 01-2022
and tax-free conditioned on the exportation of What are accessories?
the finished products within the period Accessories shall refer to goods that are
prescribed herein or withdrawal for domestic neither raw materials nor supplies that
consumption upon payment of duties and enhance the finished products to be
taxes, provided that raw materials entered for exported.
consumption shall not exceed thirty percent
(30%) of the volume of raw materials entered Who is an accountable officer?
for warehousing. Withdrawal for consumption An accountable officer shall refer to a
beyond thirty percent (30%) may be allowed by responsible official of the CBW named and
the Bureau under meritorious circumstances designated by the operator as the person,
such as but not limited to canceled orders, other than himself, answerable and liable to
closure of CBW, or cessation of operations due the Bureau for all the operational aspects of
to a state of calamity. the warehouse.

Types of Manufacturing CBW What are Airlines Customs Bonded

a. Miscellaneous Manufacturing Warehouse and Airlines Catering
Bonded Warehouse (MMBW). It is a Customs Bonded Warehouse?
warehouse established and duly Airlines Customs Bonded Warehouse and
authorized to import, receive, and store, Airlines Catering Customs Bonded
duty and tax free and under bond, raw Warehouse shall refer to an Industry-Specific
materials, except garments and textile, Customs Bonded Warehouses (ICBW) where
for manufacture into finished products, supplies, spare parts, in-flight duty-free items
including accessories, packaging and and such other goods necessary for the
reasonable requirements of the aircraft, its
crew and passengers are stored.

What will happen to CBWs who were

previously granted an Authority to Operate
either as a Multinational Regional Bonded
Warehouse, Airlines Customs Bonded
Warehouse, or Airlines Catering Customs
Bonded Warehouse?
Answer: They shall be re-classified as ICBWs
(Industry-Specific CBW) under this CAO.

The Bureau shall provide the guidelines and

parameters for the accreditation of
end-users/clients of ICBWs, such as those
engaged in international aviation, etc.

What will happen to all existing public

bonded customs warehouses in Airports?
Answer: They shall be re-classified as Customs
Facilities and Warehouse without prejudice to
the rights, conditions, and obligations already
acquired or vested prior to the effectivity of
CAO 01 – 2022.

What is Nonmanufacturing CBW?

It is a warehouse where goods are stored duty-
and tax-free, conditioned on the eventual
withdrawal of the goods for consumption. It
shall only be withdrawn within the period
prescribed upon payment of the corresponding
duties, taxes, and other charges whether or not
the goods are in the same state as imported.

An example of an NCBW is Private Customs

Bonded Warehouses (PCBWs), which the
Bureau authorizes to import, receive, and store
goods for their accounts intended for domestic
consumption.

What is a Public Bonded Warehouse?

A public bonded warehouse is a warehouse
facility duly authorized to receive and store
general cargoes for exportation, transfer to
another CBW, free zones, or local consumption
in the same way the cargoes were imported.
Goods for local consumption shall only be
withdrawn upon payment of the assessed
duties, taxes, and other charges. (CAO 13-
2019)

What is a Private Bonded Warehouse?

A Private Bonded Warehouse is a warehouse
facility duly authorized to import, receive, and
store goods intended for domestic
consumption, withdrawal of which shall be
made only upon payment of the corresponding
duties, taxes, and other charges. (CAO 13-
2019)
 allowed under customs laws, rules, and
regulations. (CMO 18-2022)

What is a Seaport Warehouse?

A Seaport Warehouse shall refer to a customs
facility established within the seaport premises
or off-dock for purposes of storage,
examination, stripping, stuffing, or safekeeping
SEC. 803. Types of Customs Facilities and of imported goods.
Warehouses (CFWs). — Customs facilities
and warehouses shall include: What is an Airport Temporary Storage
Warehouse?
(a) Container yard; 3.1. Airport Temporary Storage Warehouse —
(b) Container freight station; shall refer to a customs facility established
(c) Seaport warehouses; and within the airport premises or off-terminal for
(d) Airport warehouses. purposes of storage, examination, stripping, or
safekeeping of imported goods (CMO 18-2022)
Subject to consultation with the NEDA and
the DTI, and based on prevailing economic Who is authorized to create or dissolve
circumstances, the Secretary of Finance certain types of warehouses?
may, upon the recommendation of the
Commissioner, create or dissolve certain The Secretary of Finance is authorized to
types of warehouses. create or dissolve certain types of warehouses,
provided however, that:
What is the meaning of Customs Facilities 1. There must be a consultation with the
and Warehouses? NEDA and the DTI;
CMO 18-2022 – Rules and Regulations on the 2. The creation or dissolution must be
Establishment, Supervision, Operation and based on prevailing economic
Control of Customs Facilities and Warehouses circumstances; and
(CFWs) Pursuant to Customs Administrative 3. Upon the recommendation of the
Order (CAO) No. 9-2019 Commissioner.

Customs Facilities and Warehouses shall refer

to facilities for temporary storage of goods
established and authorized by the Bureau
under Title VIII, Chapter 2 of the CMTA. These
include container yards, container freight
stations, seaport temporary storage
warehouses, airport temporary storage
warehouses, and other premises for customs
purposes.

What is a Container Yard?

Container Yard shall refer to a facility duly
authorized to accept and store container vans
intended for international shipping, loaded or
empty, for storage within the prescribed period.
A container yard may be established either
within the seaport or off-dock, as may be
allowed under customs laws, rules, and
regulations. (CMO 18-2022)

What is a Container Freight Station?

A Container Freight Station shall refer to a
facility duly authorized to accept and store
containers loaded with consolidated shipments
for temporary storage, examination, stripping,
stuffing, and other related activities as may be
allowed under customs laws, rules, and
regulations. A CFS may be established either
within the seaport or off-dock, as may be
 5.31. Annual Supervision Charge
(Formerly Annual Supervision Fee) for
CBWs. An annual supervision charge shall
be paid by the CBW Operator based on the
following schedule.
5.31.1. Miscellaneous Manufacturing
Bonded Warehouse (MMBW) and
Garments and Textiles Manufacturing
Bonded Warehouse (GTMBW)
Supervision Charge.
SEC. 804. Application for Operation of a
Customs Warehouse. – Application for the Total Assets in Peso Annual
establishment of CBW and CFW shall be (excluding real estate) Supervision
filed with the District Collector where the Fee
CBW or CFW is located, describing the Php5 Million and below Php50,000.00
premises, location, capacity and purpose Above Php5 Million but not Php150,000.00
thereof. more than Php50 Million
Above Php50 Million Php250,000.00
Upon receipt of such application, the For every extension Php50,000.00
District Collector shall examine the warehouse
premises of such proposed warehouse,
particularly its location, construction and 5.31.2. Industry-specific CBW (ICBW).
storage facilities. The District Collector,
with the approval of the Commissioner, may
ICBW servicing Airline Php50,000.00
authorize the establishment of customs
Industry
warehouses, and accept the required
security for its operation and maintenance. Other ICBW (including Php250,000.00
The operator of such CBW and CFW shall airline catering)
pay an annual supervision fee, as For every extension Php50,000.00
determined by the Commissioner. warehouse

Where to file the application for the 5.31.3. Customs Common Bonded
establishment of CBW and CFW? Warehouse (CCBW).
The application for the establishment of CBW
and CFW shall be filed with the District Operator of CCBW Php250,000.00
Collector where the CBW or CFW is located, Every accredited member of CCBW
describing the premises, location, capacity and Total assets in Peso Rate
purpose thereof. (Excluding real estate)
Php3 Million and below Exempted
What is the duty of the District Collector Above Php3 Million but Php25,000.00
upon receipt of such application? not more than Php15
Upon receipt of the application, the District Million
Collector shall: Above Php15 Million but Php50,000.00
1. Examine the premises of such proposed not more than Php50
warehouse, particularly its location, Million
construction, and storage facilities. Above Php50 Million Php100,000.00
2. With the approval of the Commissioner,
For every extension
the District Collector may authorize the
warehouse
establishment of customs warehouses;
Operator of CCBW and Php50,000.00
and
its accredited member
3. accept the required security for its
operation and maintenance.
5.31.4. Other Types of CBW shall pay an
What is the duty of the CBW and CFW Annual Supervision Charge of
operator after the approval of the Php250,000.00.
application for operation?
The operator of such CBW and CFW shall pay 5.32. CFW Annual Supervision Charge. An
an annual supervision fee, as determined by annual supervision charge shall be paid by
the Commissioner. the CFW Operator based on the following
schedule:
CAO 02-2024
Main Facility Php250,000.00
 Additional Facility Php50,000.00 for Accreditation of Free Zone Locator/Enterprise
every additional may be accredited by the Bureau as a Sub-
facility contractor of a MMBW, GTMBW, or of an
accredited member of a CCBW.
What is an Authority to Operate CBW?
Authority to Operate shall refer to the authority If a person is found to be operating a
given by the Bureau allowing persons, natural bonded warehouse without a valid customs
or juridical, to establish and operate a CBW authority, is he absolutely prohibited from
(CAO 01-2022) availing of any privileges provided under
the CMTA?
What is a Certificate of Authority to
Operate? No, he is only barred from being granted any
Certificate of Authority to Operate shall refer to warehousing privileges.
a document issued by the Bureau to persons,
natural or juridical, duly authorized to operate 4.9. Operation without a CBW Authority. Any
an off-dock or off-terminal CFW, or any of the person, natural or juridical, found to be
other types of CFWs.(CMO 18-2022) operating as a bonded warehouse without a
valid customs authority shall be barred from
What is a Certificate of Registration? being granted any warehousing privileges.
A Certificate of Registration shall refer to the
document issued by the Bureau to terminal 4.10. Misrepresentation of Material Information.
facilities granted a Permit to Operate under Any misrepresentation, false statement, or non-
existing contracts with the Philippine Ports disclosure of any material information required
Authority (PPA) or other similar regulatory in any application shall be a ground for its
agencies. (CMO 18-2022) disapproval without prejudice to any
administrative/criminal charge as deemed
CUSTOMS ADMINISTRATIVE ORDER NO. proper.
01-2022
SUBJECT : Customs Bonded Warehouses 5.5. Renewal of Authority to Operate. At least
ninety (90) days before the expiration of the
What is a Customs Bonded Warehouse Authority to Operate, the off-dock/off-terminal
Committee (CBWC)? CFW operator shall file the application for
CBWC shall refer to the committee created to renewal of the Authority to Operate.
act on applications for the establishment and
operation of CBW, renewal of Authority to REMEDIES IN CASE OF DENIAL
Operate CBWs, application as a member of a
CCBW, application as a subcontractor of a CAO 01-2022 CMO 18-2022
CBW, and other related matters pertaining to CBW CFW
the operation of a CBW. What is the remedy What is the remedy
of the application of the applicant in
Is the Authority to Operate CBW for Authority to case of denial of his
transferrable? Operate CBW or its application for
No, the Authority to Operate is personal to the renewal? Authority to
warehouse operator and shall not be Operate CFW or its
transferred or assigned for whatever reason. SECTION 7. Appeals renewal?
Mechanism. —
CAO 01-2022 Section 4.6. 7.1. An applicant 5.1.5. Procedure and
Non-Transferability of Authority. The Authority whose application to Remedies in Case of
to Operate a CBW is personal to the establish or renew a Denial of the
warehouse operator and shall not be CBW was denied by Application.
transferred or assigned for whatever reason. the Commissioner
may file a Motion for a. An applicant
Are Accredited Free Zone Locators may be Reconsideration on whose application
allowed to operate as subcontractors of an the denial with the for Authority to
Industry-Specific Customs Bonded Commissioner within Operate a CFW or
Warehouse? fifteen (15) days from its renewal was
No, they may be accredited by the Bureau only receipt of the Notice denied by the
as a Sub-contractor of an MMBW, GTMBW, or of Denial, copy District Collector
of an accredited member of a CCBW. furnished the CBWC may file an Appeal
and the District with the
Section 4.8 Collector, stating Commissioner
clearly the grounds through the Legal
 why the application Service within fifteen 4.12.3. Locks and Keys. The door and
should be approved. (15) days from entrance to a CBW and the designated
receipt of the Notice compartments for new materials,
7.2. The of Denial, copy finished goods and wastages, rejects
Commissioner, within furnished the Chief, and by-products shall have a secured
twenty (20) days Port Operations
locking system which complies with
from receipt of the Coordinating
the standard and specification set by
Motion for Division (POCD) of
Reconsideration, the AOCG and the the Bureau. Access to the areas shall be
shall issue a District Collector. limited to personnel duly authorized by
resolution granting b. The Legal both the Bureau and the CBW operator.
the Motion or Service, within 4.12.4. Assignment of Warehouse
affirming his denial of twenty (20) days Number. Before the bonded warehouse
the application. from receipt of the
shall be allowed to operate, the
Appeal, shall
7.3. The applicant recommend action
Warehousing Coordinating Division
whose application on the application (WCD) under the Office of the Deputy
was denied by the based on the Commissioner, AOCG shall assign a
Commissioner may grounds clearly warehouse number for all CBWs
file a new application stated in the Appeal. including accredited members of
once the ground/s for c. The CCBWs for all Authority to Operate
the denial ceased to Commissioner, granted after the effectivity of this
exist. within five (5) days CAO. All existing CBWs whose
from receipt of the warehouse number were previously
recommendation of assigned by the District Collector
the Legal Service, having jurisdiction over the same shall
shall affirm or
be retained.
reverse his previous
denial of the 4.12.5. Payment of Warehouse
application. Supervision Fee. Proof of payment of
d. The applicant the Warehouse Supervision Fee in the
whose application amount prescribed by the Bureau must
was denied by the be copy furnished the CBWC for
Commissioner, record purposes.
instead of filing an
Appeal, may choose 4.12.6. Installation of Required
to file a new Signages. The Authority to Operate
application. issued by the Commissioner must be
posted or displayed in conspicuous
places in the office of the CBW
CAO 1-2022 Operator and at the entrance to the
4.12. Requirements Prior to Operation. CBW.
Before the bonded warehouse shall be allowed 4.12.7. Conduct of Final Inspection for
to operate, the following pre-operating Compliance Check. The District
requirements must be complied: Collector shall cause the final
4.12.1. Assignment of Customs Officers inspection of the CBW by the
and Personnel. The assignment of Warehousing Inspection Division or
Bureau personnel shall take into equivalent unit for compliance to the
account the extent of operations of the requirements before the CBW begins
CBW and the number of accredited actual operations.
members in case of CCBW. 4.12.8. Registration in CPRS of CBW
4.12.2. Provision for a Suitable Working Operators including Members of
Space for Bureau Personnel. The CCBW. CBW Operators must register
CBW operator shall provide Bureau in the CPRS as warehouse operators.
personnel with suitable working areas Members of CCBWs must, in addition
complete with office equipment and to its accreditation as importer should
supplies necessary to perform their also register as warehouse operator
basic functions. with its warehouse code.
 4.12.9. Posting of the General
Warehousing Bond, Performance
Bond and General Transportation
Surety Bond (GTSB). The General
Warehousing Bonds, Performance
Bond and the GTSB must be filed with
the Bonds Division or equivalent unit
of the port concerned. The CBW
operator should likewise create a Bond
Account in the Bureau's ABMS for
automatic debiting of the assessed
duties and taxes to the bonds filed
during the lodgement of the
Warehousing Goods Declaration or
Transit Goods Declaration.

4.13. Requirements during Operation.

4.13.1. Principal Books of Accounts. The
Bureau and the CBW operator shall keep
and maintain Principal Books of
Accounts containing the records of
importation and exportation of all goods
delivered to and withdrawn from a
CBW. As far as practicable, the Bureau
and CBW operator shall utilize an ICT-
enabled inventory and liquidation system
of all goods delivered to and withdrawn
from a CBW, which may serve as the
principal books of accounts.
4.13.2. Stock Inventory Report. All
CBWs shall establish and maintain a
computer-based AIMS for bonded goods
with linkage to the Bureau. The stock
inventory report must be submitted at the
end of every calendar year. Non-
submission of stock inventory report
may be a ground for the suspension or
cessation of operations of the CBW.
A coding system acceptable to the
Bureau shall be adopted by CBW
operators and utilized to identify and
track goods entered for warehousing and
withdrawn for export from CBW
compartments.
 3. In case of loss of the goods stored in a
CBW or CFW:
If due to the operator's gross negligence
or willful misconduct, the operator shall
be liable for the payment of duties and
taxes due thereof.

The government assumes no legal

responsibility over the safekeeping of goods
stored in any customs warehouse, yard, or
premises.

CAO1-2022 CMO 18-2022

CBW CFW
SECTION 4.7.6. Loss and
9. Responsibilitie Damage of Goods
s of CBW Stored in CFWs. In
Operator. — The case of loss or
SEC. 805. Responsibility of Operators. – following are the damage of the goods
The operator of a CBW or CFW shall comply duties and stored in CFWs due
with the customs requirements on the responsibilities of to the gross
establishment, security, suitability, and a CBW Operator: negligence or willful
management, including stock-keeping and 9.1. Comply with misconduct of the
accounting- of the goods, of the CBW or all Customs rules operator, the operator
CFW. and regulations shall be liable for the
governing the payment of duties
Upon lawful demand, the operator of a CBW operation of CBW and taxes due. The
or CFW shall allow authorized and all other government assumes
representatives of the Bureau access to the applicable no legal responsibility
premises at a reasonable time, and to all issuances; over the safekeeping
documents, books, and records of accounts 9.2. Present of goods stored in
pertaining to the operations of the CBW or evidence of any customs
CFW. payment of warehouse, yard, or
duties, taxes and premises, unless due
In case of loss of the goods stored in a other charges to to its personnel's
CBW or CFW due to the operator's gross the customs gross negligence or
negligence or willful misconduct, the warehouseman or willful misconduct.
operator shall be liable for the payment of customs
duties and taxes due thereof. The storekeeper 4.7. General
government assumes no legal before making Requirements in the
responsibility over the safekeeping of any withdrawal Operation of CFW.
goods stored in any customs warehouse, from the
yard, or premises. warehouse in 4.7.1. Secure and
case of PBWCs Safe Environment.
What are the responsibilities of CBW or or local sales; Operators shall
CFW operators? 9.3. Implement ensure a secured
The operator of a CBW or CFW shall effective security and safe environment
measures, such for persons and
1. As to the warehouse or facility: as the installation goods stored in the
comply with the customs requirements of 24-hour Closed facilities by
on the establishment, security, Circuit Television implementing
suitability, and management, including Camera (CCTV) effective security
stock-keeping and accounting- of the system and measures, such as
goods of the CBW or CFW. similar devices to the employment of a
2. Upon lawful demand: ensure a safe 24-hour security
the operator of a CBW or CFW shall environment for scheme and the
allow authorized representatives of the persons working installation of CCTV
Bureau access to the premises at a inside the CBW and similar devices
reasonable time, and to all documents, and to prevent as required under
books, and records of accounts pilferage, this Order based on
pertaining to the operations of the CBW unauthorized internationally
or CFW. withdrawal, and accepted safety
loss of goods standards and best personnel customs personnel
through fires, practices. assigned to the must be adequate
floods, and other CBW; and enough to also store
such 4.7.2. Installation of records in the
occurrences; Non-Intrusive SECTION custody of the
9.4. Indemnify the Inspection Machines, 10. Liabilities of Bureau personnel
Bureau of the Provision of Areas for CBW Operators. assigned thereat until
duties and other Physical Examination — The CBW their disposition
charges on the and Facilities operator shall be pursuant to the
goods entered Suitable for the jointly and pursuant to the
into the Nature of Cargoes severally liable National Archives of
warehouse which being Handled. CFW with its the Philippines (NAP)
were lost or operators shall Accredited "General Records
destroyed, provide designated Member and/or Disposition
damaged, pilfered areas for physical Subcontractor for Schedule."
or stolen while in examination and non- any violation
storage due to the intrusive inspection, committed. 4.7.4. Designated
operators' gross including open areas Areas for
negligence or for stuffing and Abandoned, [9]
wilful misconduct. stripping, loading and Overstaying and
The government unloading, and Forfeited Goods
assumes no legal Container Hold Area within the CFW. For
responsibility over (CHA) or the area proper accounting
the safekeeping designated for seized and inventory, CFWs
of goods stored in items. shall designate
CBW; [21] special areas for the
9.5. Allow access The CFW shall also temporary storage of
to the premises provide suitable abandoned,
and extend areas with overstaying and
assistance to appropriate facilities forfeited goods.
examiners, for cargoes which Disposition of
inspectors, require special abandoned cargoes
inventory and handling such as shall be made
audit teams, and temperature- pursuant to existing
other authorized controlled areas or rules and regulations.
customs compartments for [10]
personnel who temperature sensitive
may be sent on shipments, secured 4.7.5. Report on
mission orders to storage for valuable Overstaying Cargoes
conduct shipments, and and Empty
examination separate areas for Containers. [11] CFW
and/or physical electronic goods, operators, through
and records express cargoes, the Wharfinger-in-
inventory/audit of dangerous goods, Charge or
cargoes stored in returned cargoes, Warehouseman-in-
the CBW; [22] livestock quarantine, Charge assigned at
9.6. Pay to the plant quarantine, etc., the CFW, shall
Collector of if applicable. provide a weekly
Customs at the report to the District
port concerned 4.7.3. Provision for a Collector of all
such fees as may Suitable Working overstaying goods
be fixed by Space of Bureau including empty
appropriate Personnel. The CFW containers
regulations for the operator shall provide transferred to the
supervision and customs personnel facility.
operation of the with suitable working
CBW; [23] areas and office 4.7.6. Loss and
9.7. Provide the equipment and Damage of Goods
necessary office supplies necessary to Stored in CFWs. In
space, equipment perform their basic case of loss or
and supplies to functions. The damage of the goods
customs working area for stored in CFWs due
to the gross the processing of any
negligence or willful information or
misconduct of the documents already
operator, the operator submitted to the
shall be liable for the bureau.
payment of duties
and taxes due. The 4.7.9. Annual
government assumes Supervision Fee. The
no legal responsibility CFW operator shall
over the safekeeping pay an annual
of goods stored in supervision fee in the
any customs operations of CFW in
warehouse, yard, or accordance with the
premises, unless due schedule provided
to its personnel's under pertinent rules
gross negligence or and regulations.
willful misconduct.

4.7.7. Inspection of
CFW and Inventory
of Goods Stored
Thereat. The District
Collector or his/her
authorized
representative shall
conduct regular
inspections of off-
dock/off-terminal
CFWs and annual
inventory of goods
stored therein under
the jurisdiction of the
Collection District.
His/her authorized
representatives shall
be covered by
appropriate Mission
Orders which shall
contain their names
and the time and
date of inspection.
Inspection of off-
dock/off-terminal
CFWs shall also
include validation of
the structural lay-out
of the CFWs as
approved by the Port.

4.7.8. Cooperation in
Customs
Investigation. During
any investigation
conducted by the
Bureau, the
operators shall make
available pertinent
papers and
documents as well as
issue statements,
affidavits, and
attestation and allow
 management of customs offices, facilities,
warehouses, ports, airports, wharves,
infrastructure and other premises in the
Customs Districts, in all cases without
prejudice to the general police powers of
the local government units (LGUs), the
Philippine Coast Guard and of law
enforcement agencies in the exercise of
their respective functions.

CONTROL
CAO 01-2022 CMO 18-2022 (CFW)
(CBW)
Section 4.2. 3.6. Customs
Licensing, Premises — shall
Supervision and include customs
Control over offices, facilities,
CBWs. warehouses, ports,
airports, wharves,
The Bureau is infrastructure and other
responsible for the areas over which the
licensing of all Collection Districts
CBWs. For the have exclusive control,
SEC. 806. Customs Control Over CBWs and
protection of direction and
CFWs. – The Bureau shall, for customs
government management for
purposes, exercise control over, direct and
revenue, all CBWs customs purposes.
manage CBWs and CFWs pursuant to
shall be considered
Section 303 of this Act and likewise over
as extensions of 4.2. Supervision and
the goods thereat pursuant to Section 301
the customsControl over
of this Act: Provided, That the Bureau shall
premises insofar as CFWs. All CFWs
not be liable for any loss or damage of the
the dutiable goods including their
goods stored for safekeeping in any CBW,
stored and
expansion, extensions
CFW, yard or premises.
introduced thereat. and
CBWs, including
additional facilities shal
SECTION 301. Customs Control their expansion,l be considered as part
over Goods. — All goods, including means extensions, and
of customs premises
of transport, entering or leaving the customs additional facilities
subject to the
territory, regardless of whether they are and the goods supervision and control
liable to duties and taxes, shall be subject stored thereat,
of the Collection
to customs control to ensure compliance shall be subject to District which shall
with this Act. the supervision and impose such conditions
In the application of customs control, control of the
as may be deemed
the Bureau shall employ audit-based District Collector.
necessary for the
controls and risk management systems, use The supervision
protection of
automation to the fullest extent possible, and control of the government revenue
and adopt a compliance measurement District Collector
and of the goods
strategy to support risk management. over warehouses stored therein.
shall extend to the 4.3. Authority to
The Bureau shall seek to cooperate warehouse and
Operate. The Bureau
and conclude mutual administrative facilities of duly shall be responsible for
assistance agreements with other customs authorized the issuance of an
administrations to enhance customs control. members, Authority to Operate a
The Bureau shall consult, coordinate, and Clients/End-Users, CFW, including the
cooperate with other government regulatory Client-Exporters, imposition of different
agencies, free zones authorities, and the and sub-
sets of requirements
customs stakeholders, in general, to contractors of
for their establishment,
enhance customs control. CBWs. maintenance and
SECTION 303. Control over operation, setting forth
Premises Used for Customs Purposes. — In cases where the the rights and
The Bureau shall, for customs purposes, Client/End-User, obligations of
have exclusive control, direction and Client-Exporter, or operators, and the
sub-contractor is penalties and sanctions
also a Free Zone for violation of these shall be charged or equivalent to the
locator/enterprise, rules. as a condition for average duties and
[14] the exercise of 4.3.1. CFWs with the storage and taxes for goods or
supervision and Existing Contracts withdrawal of the empty containers
control shall be Granted by Port bonded goods transferred to the
made in Authorities. Operators within the period facility for the last
coordination with of prescribed by 12 months,
the government terminal facilities with Section 811, whichever is higher.
agency concerned. existing contracts Chapter 2, Title [13]
granted by the VIII of the CMTA.
The Bureau, Philippine Ports
however, shall not Authority and other port
be liable for any authorities shall be
loss or damage of authorized to operate
the goods stored in as CFW, provided they
any CBW. comply with the
additional requirements
and conditions as may
be imposed by the
Bureau for the effective
exercise of
jurisdictional control
over ports and
terminal facilities.

4.5. Assignment of
Personnel. In pursuit
of its supervisory and
control functions over
customs premises, the
District Collector shall
assign customs
personnel to monitor
and implement control
measures for customs
purposes, in
accordance with its
existing organizational
structure and staffing
pattern.

SECURITY
CAO 1-2022 CAO 18-2022 -
5.7.1.

CBW CFW
8.4. Postin Posting of Annual
g of Security for Security. CFW
Goods Stored in Operators shall post
CBWs. For goods non-chargeable
declared and annual security to
entered under the cover for the duties
CBW scheme, the and taxes due on
District Collector lost or damaged
shall require the goods while in
importer to post a transit or stored in
general the facility. The
warehousing bond Security shall be in
as security where the amount of Five
the assessed Million Pesos
duties and taxes (Php5,000,000.00)
 What will happen to the dutiable goods
stored in such premises?
Where dutiable goods are stored in such
premises, the same must be removed at the
risk and expense of the operator: Provided,
however, That the premises shall not be
relinquished, and its use shall not be
discontinued until after a careful examination of
the account of the warehouse shall have been
made.

Notice of discontinuance made by the operator

shall not result in the discharge from duties,
taxes, fees, and other charges imposed on
dutiable goods in said warehouse.

When will the discontinuance of the use of

any warehouse be effective?
Discontinuance of the use of any warehouse
shall be effective upon approval thereof by the
District Collector, who shall, within ten (10)
days, inform the Commissioner of such action
in writing.
SEC. 807. Discontinuance of CBW and CFW. CAO1-2022 CMO 18-2022
– The use of any CBW and CFW may be CBW CFW
discontinued by the District Collector when SECTION 11. 7.5.7. Suspension
conditions so warrant, or upon receipt of a Suspension of the and Closure and
written request from the operator thereof: Authority to Operate Liability of the
Provided, That all the requirements of the and Closure of CFW Operator. The
laws and regulations have been complied CBW. — suspension and
with by said operator. Where dutiable goods 11.1. The Bureau closure of the
are stored in such premises, the same must shall, without Terminal Operator
be removed at the risk and expense of the prejudice to the shall be governed
operator: Provided, however, That the imposition of by the provisions of
premises shall not be relinquished, and its administrative the contract and the
use shall not be discontinued until after a penalties and filing rules and
careful examination of the account of the of criminal cases regulations of the
warehouse shall have been made. against the concerned
Discontinuance of the use of any responsible person, government agency
warehouse shall be effective upon approval initiate suspension or or regulating body.
thereof by the District Collector who shall, closure proceedings Notwithstanding, the
within ten (10) days, inform the against any CBW in owner, operator or
Commissioner of such action in writing. the following Officers of the CFW
instances: shall not be relieved
Notice of discontinuance made by the from criminal liability
operator shall not result in the discharge a. In case of arising from any
from any duties, taxes, fees and other discontinuance violation of the
charges imposed on dutiable goods in said requested by the Customs law and
warehouse. CBW operator or other laws enforced
when the by the Bureau.
When may a CBW and CFW discontinue to conditions
operate? warrant pursuant 5.8.5. Suspension
The use of any CBW and CFW may be to Section 807, or Closure of CFW.
discontinued by the District Collector when: Chapter 2, Title a. The District
1. conditions so warrant; or VIII of the CMTA; Collector, without
2. upon receipt of a written request from b. Filing an prejudice to the
the operator thereof. application imposition of
containing false administrative
Provided, however, all the requirements of the information for penalties and filing
laws and regulations have been complied with establishment or of criminal cases
by said operator. renewal of CBW against the
Authority to responsible person,
 Operate; shall cause the and other
c. Failure to file suspension or charges, b. Closure/
application for closure of any CFW imposition of Suspension
renewal; under the following surcharge in Proceedings.
d. Being inactive for grounds: accordance with Except in cases of
a continuous i. In case of Section 1422 of voluntary
period of at least discontinuance the CMTA; and discontinuance, the
one (1) year, i.e., requested by k. Violation of following shall
no importation, or the CFW customs rules govern the
if there is one, no operator or and regulations procedure for the
corresponding when the on CBW closure or
legal withdrawal conditions operations. suspension of an
of imported warrant off-dock/off-terminal
goods or pursuant to 11.2. Upon the CFW:
exportation of Section 807, closure of the CBW, i. Notice of
finished Chapter 2, Title a physical inventory Violation. The
products; VIII of shall be conducted District
e. When the the CMTA; and the Books of Collector,
operator or any ii. When the Account examined. through the Law
responsible operator The remaining Division —
official shall knowingly dutiable goods inside upon report of
knowingly the facilitates or the CBW shall be violation or
use of the assists in the disposed by the existence of
warehouse for commission of District Collector in any of the
illegal activities; smuggling and accordance with grounds
f. Unauthorized other illegal existing rules and enumerated in
relocation or use activities in the regulations. the preceding
of extension CFW; paragraph, by
warehouse; iii. In case of 11.3. Closure of the the PID, or
g. Unauthorized pilferage of CBW shall be concerned
changes in the goods stored in effective upon Office/s of the
CBW lay-out; the facility; approval by the Port or upon the
h. Unauthorized iv. Failure to District Collector, recommendatio
structural account for who shall within ten n of pursuant to
changes of the goods stored; (10) days, inform the its monitoring
CBW and/or its v. Being inactive Commissioner of and supervision
extension for a continuous such action in writing. functions under
warehouse; period of at The decision ordering Section 10 of
i. Withdrawal of least one (1) the closure of a CBW this Order —
any year, i.e., no may be appealed to shall issue a
material/article transfer of the Commissioner Notice of
stored in a CBW imported goods; within fifteen (15) Violation to the
without the duly vi. Failure to days from receipt of CFW Operator.
processed submit the the Decision of the Within ten (10)
withdrawal or required District Collector. days from
requisition slip, documents for receipt of such
without prejudice renewal under 11.4. Notice of Notice, the
to the Section 5.6 of discontinuance CFW operator
confiscation of CAO 9-2019; made by the shall submit his
the general vii. Violation of operator shall not Answer thereto.
warehousing customs laws, result in the ii. Summary
bond; rules and discharge from any Proceeding. U
j. Illegal withdrawal regulations; and duties, taxes, fees pon receipt of
of any imported viii. Other practice and other charges the Answer, the
material or or violation of imposed on Chief, Law
finished article law which dutiable goods in Division shall
from the CBW negates the said warehouse. immediately set
without prejudice intended the case for
to forfeiture of purpose for hearing so that
the goods or in which the CFW issues shall be
case of payment was joined.
of duties, taxes established. Clarificatory
 hearing/s may shall within ten
be conducted (10) working
as may be days inform the
deemed Commissioner
necessary. ICH of such action
Dca in writing.
iv. Appeal. The
Within five (5) decision
workings days ordering the
from the closure or
termination of suspension of a
the hearing, the CFW may be
CFW Operator appealed to the
shall be Commissioner
required to through the
submit a Legal Service
verified Position within fifteen
Paper, copy (15) working
furnished the days from
Office of the receipt of the
Deputy decision, copy
Collector furnished the
Operations or Chief,
the Chief, PID/POCD or
POCD as the concerned
case may be, office and the
who shall District
submit his Collector,
Comment otherwise it
thereto within shall be
five (5) working deemed final
days from and executory.
receipt.
The Legal
Within 10 days Service, within
from ten (10) days
submission of from receipt of
the last the Appeal,
pleading, the shall
Chief, Law recommend
Division shall action on the
submit his order of closure
recommendatio or suspension
n to the District based on the
Collector, who grounds clearly
shall render a stated in the
decision within Appeal.
five (5) working
days from The
receipt thereof. Commissioner,
iii. Order of within five (5)
Closure or days from
Suspension. receipt of the
Closure or recommendatio
suspension of n of the Legal
the CFW shall Service, shall
be effective affirm or
upon the reverse the
issuance of an District
order by the Collector's
District Order.
Collector, who
c. Closure in Case
of Voluntary
Discontinuance. W
ithin three (3)
working days from
receipt of the
notarized letter-
request of the
Operator the District
Collector, through
the Law Division,
shall issue a
Closure Order.

d. Effect of
Closure/Suspensio
n. Upon the closure
of the CFW, a
careful examination
of the account of the
warehouse shall be
made and dutiable
goods stored in
such premises must
be removed at the
risk and expense of
the operator.
Provided, however,
that the premises
shall not be
relinquished and its
use shall not be
discontinued until
after a careful
examination of the
account of the
warehouse shall
have been made.
The owner,
operator or Officers
of the CFW shall not
be relieved from
criminal liability
arising from any
violation of the tariff
laws and other laws
enforced by the
Bureau.

In case of notice of
discontinuance
made by the
operator, the same
shall not result in
the discharge of
liability for the
payment of any
duties, taxes and
other charge
imposed on the
dutiable goods in
the warehouse.
 8.4. Posting of Security for Goods Stored in
CBWs. For goods declared and entered under
the CBW scheme, the District Collector shall
require the importer to post a general
warehousing bond as security where the
assessed duties and taxes shall be charged as
a condition for the storage and withdrawal of
the bonded goods within the period prescribed
by Section 811, Chapter 2, Title VIII of the
CMTA.

A CBW operator shall likewise post a separate

GTSB at the port of discharge for goods for
transfer via transit goods declaration.

What is an Authority to Transfer or Sell

(ATS)?
An Authority to sell shall refer to the document
issued by the District Collector allowing the
transfer or sale of imported raw materials,
semi-finished products, or finished products to
another CBW, Client-Exporter, Client/End-
User, or Freeport Zone locator for subsequent
export. Transfers to subcontractors or
members of CCBW shall be covered by
Authority to Transfer only.

What is security referred to in this section?

3.42. Security — shall refer to any form of
guaranty, such as a surety bond, cash bond,
standby letter of credit, or irrevocable letter of
SEC. 808. Warehousing Security on Goods credit, which ensures the satisfaction of an
Stored in CBWs. – For goods declared in obligation to the Bureau. [12]
the entry for warehousing in CBWs, the
District Collector shall require the importer
to post a sufficient security equivalent to
the computed duties, taxes and other
charges, conditioned upon the withdrawal
of the goods within the period prescribed
by Section 811 of this Act or the payment of
duties, taxes and other charges and
compliance with all importation
requirements.

What is the duty of the District Collector

over the goods declared in an entry for
warehousing in CBWs?
For goods declared in the entry for
warehousing in CBWs, the District Collector
shall:
1. require the importer to post a sufficient
security equivalent to the computed
duties, taxes, and other charges
conditioned upon the withdrawal of the
goods within the period prescribed by
Section 811 of this Act; or
2. the payment of duties, taxes, and other
charges and compliance with all
importation requirements.

CAO 01-2022
 What is a diversion of bonded goods?
Diversion of the bonded goods — Closure of
the CBW.

Diversion — shall refer to a violation of

customs law committed when an imported
material entered through the warehousing
scheme and destined for transit to a
particular CBW, Free Zone locator/enterprise,
or from the CBW to the port or airport for
exportation, is brought to someplace other
than its intended destination.

What are the penalties for Unauthorized

Withdrawal or Transfer of Goods to
another CBW or Free Zone?

First Offense — Duties, taxes, and charges

due on the goods withdrawn; and Surcharge
of fifty percent (50%) of duties, taxes,
customs fees, and charges found to be due
and unpaid;

Second Offense — Duties, taxes, and

charges due on the goods withdrawn plus
surcharge of fifty percent (50%) of duties,
taxes, customs fees, and charges found to be
due and unpaid and Suspension of
warehousing privileges for six (6) months;

Third Offense — Duties, taxes, and charges

due on the goods withdrawn plus surcharge
SEC. 809. Withdrawal of Goods from CBWs. of fifty percent (50%) of duties, taxes,
– – Imported goods shall be withdrawn from customs fees, and charges, found to be due
the CBWs when the necessary withdrawal and unpaid and Closure of the CBW; and
permit has been filed, together with any
related document required by any provision Where the withdrawal is attended with fraud
of this Act and other regulations. even if first offense — Duties, taxes and
charges due on the goods withdrawn plus
Goods entered under sufficient security as surcharge of fifty percent (50%) of duties,
provided in Section 1507 of this Act may be taxes, customs fees, and charges found to be
withdrawn at any time for consumption, due and unpaid and Closure of the CBW.
transit, or exportation. The withdrawal must
be made by the CBW operator or its duly The operator of a CBW who illegally
authorized representative. withdraws such merchandise and any
customs personnel who fails to report such
What is Unauthorized Withdrawal? illegal withdrawal shall both be liable under
Unauthorized withdrawal shall refer to the Section 1431 of the CMTA, as amended.
withdrawal of any material/goods stored in a
CBW without the duly processed withdrawal SECTION 1431. Statutory Offenses of
or requisition slip or the substitution of Officers and Employees. — Every officer,
materials or finished products with local agent, or employee of the Bureau or of any
materials or goods. other agency of the government charged with
the enforcement of the provisions of this Act,
Unauthorized withdrawal shall also include
who shall be found guilty of any delinquency
the act of directly transferring the imported
materials to an Accredited Member or as described below shall be penalized with
Subcontractor without passing through the imprisonment of not less than six (6) years
physical facility of the CBW or the transfer of and one (1) day but not more than twelve (12)
such materials to a non-accredited member years, and perpetual disqualification to hold
or subcontractor. public office, from exercising the right to vote
and to participate in any public election and a direct transfer to the warehouse of the
fine of not less than five hundred thousand accredited members of CCBWs.
pesos (P500,000.00); but not more than one The Bureau shall establish a
million pesos (P1,000,000.00) mechanism to ensure the integrity of the
bonded goods during the transfer of
OTHERS… shipment from the port of entry to the CBW.
15.3. Unauthorized Relocation of CBW — 8.3. Provisional Goods Declaration.
Closure of the CBW. The Bureau may allow the lodgement of a
15.4. Unauthorized Changes in the CBW provisional goods declaration for goods
Lay-out. entered under warehousing in accordance
15.4.1. First Offense — Suspension of with the rules and regulations on the filing
warehousing privileges for six (6) of a provisional goods declaration.
months; 8.4. Posting of Security for Goods
15.4.2. Second Offense — Closure of the Stored in CBWs. For goods declared and
CBW. entered under the CBW scheme, the District
Collector shall require the importer to post a
15.5. Unauthorized Structural Changes of general warehousing bond as security where
the CBW and/or of its Extension the assessed duties and taxes shall be
Warehouse. charged as a condition for the storage and
15.5.1. First Offense — Suspension of withdrawal of the bonded goods within the
warehousing privileges for six (6) period prescribed by Section 811, Chapter 2,
months; Title VIII of the CMTA.
15.5.2. Second Offense — Closure of the A CBW operator shall likewise post a
CBW. separate GTSB at the port of discharge for
goods for transfer via transit goods
declaration.
8.5. Bonded to Bonded Transfer.
For MCBW operator which sources its raw
materials from enterprises in Free Zones or
What is a Certificate of Identification (CI)? from existing customs manufacturing
bonded warehouse, the Bureau shall
Certificate of Identification shall refer to the
document certifying that the finished products
prescribe the specific form of goods
to be exported are from a particular declaration and supporting documents
warehousing entry and also to determine covering the transfer.
whether or not a particular entry is partially or 8.6. Withdrawal of Bonded Goods.
fully consumed. The CBW operator shall, within the
prescribed storage period, apply for
CAO 1-2022 withdrawal of the bonded goods either for
8.2. Transfers of Goods to CBWs. production, for transfer to its end-user/client
Goods for transfer to CBWs shall be subject or client-exporter, as the case may be.
to mandatory non-intrusive inspection at the 8.7. Identification of Bonded Goods
port of discharge whether covered by a Prior to Stuffing for Export. The CBW
warehousing goods declaration or transit operator shall notify the District Collector in
goods declaration. Unless the goods entered advance before any actual stuffing into a
for warehousing is placed under Alert Order container shall be made.
or selected for physical or non-intrusive
All goods for export by the CBW
examination, the District Collector shall
shall be stuffed only upon prior examination
allow immediate transfer of bonded goods to
by a Customs Officer (Examiner) from the
the CBW where the examination shall be
Warehousing Assessment Division (WAD)
conducted.
or equivalent unit who shall issue the
All goods for transfer to CCBWs Certificate of Identification (CI).
must first pass through the CCBW operator
8.8. Exportation of CBW Products.
for recording and stock inventory purposes
The CBW operator shall lodge an export
unless the District Collector allows the
declaration for finished products which are
manufactured in CBWs within the
prescribed period.
For CBW operators which supplies
its raw materials or packaging materials to
its client-exporters, client/end-users, Free
Zones locators/enterprises, or to another
MCBW, the Bureau shall prescribe the
specific form of goods declaration and
supporting documents to be submitted.
8.9. Wastages. Wastages, rejects and
by-products in the manufacture of export
products shall be properly accounted for and
disposed of in accordance with existing rules
and regulations.
8.10. Liquidation of Goods
Declaration for Warehousing and
Cancellation of Bond. The CBW operator
shall cause the liquidation of the goods
declaration for warehousing and the
cancellation of the bonds related to the
finished products.
A Raw Materials Liquidation System
(RMLS) shall be adopted and utilized to
effectively monitor the liquidation of raw
materials used in the manufacture of
imported goods and the wastages derived
therefrom. Further, a Wastage Valuation
Database (WVDB) shall be established for
wastages, rejects and by-products.
Cancellation of Bonds. The CBW
operator shall cause the liquidation of the
Warehousing Goods Declaration and the
cancellation of the bonds filed for the
bonded goods. An ABMS shall be utilized to
assist in the effective cancellation of bonds
for the liquidation of raw materials/goods
declaration.
 supporting documents shall not be required
except when necessary.
Goods declaration must be lodged
within fifteen (15) days from the date of
discharge of the last package from the vessel
or aircraft. The period to file the goods
declaration may, upon request, be extended
on valid grounds for another fifteen (15)
days: Provided, That the request is made
before the expiration of the original period
within which to file the goods
declaration: Provided, however, That the
period of the lodgement of the goods
declaration may be adjusted by the
Commissioner.

What is Electronic Tracking of

Containerized Cargo (E-TRACC) System?
E-TRACC shall refer to a system that enables
the Bureau to have real-time monitoring of
inland movements of containerized goods
using an Information and Communications
Technology-enabled system such as the GPS
tracking device to secure its transport to the
intended destination.

What is Cargo Clearance Procedure?

The cargo clearance procedure under existing
customs rules and regulations for consumption,
warehousing, and transit goods declaration
shall be observed for LCL shipments
SEC. 810. Release of Goods from CFWs. – transferred to CFWs.
Imported goods shall be released when the
goods declaration is electronically lodged, a. Physical Examination of LCL shipments.
together with any related document LCL shipments selected "RED" under the
required by any provision of this Act and Bureau's Selectivity System shall be
other regulations. All goods entered into the physically inspected at the destination
CFWs shall be subject to the filing of a CFW as part of the cargo clearance
goods declaration within the period process.
specified under Section 407 of this Act. Physical examination of LCL shipments
tagged as "Orange" with suspicious
SECTION 407. Goods Declaration images shall likewise be examined at the
CFW.
and Period of Filing. — As far as
practicable, the format of the goods b. Cargo Clearance Unit. For the clearance
declaration shall conform with international of shipments transferred from the Port of
standards. The data required in the goods Discharge to the ICT, the Bureau may
declaration shall be limited to such establish a clearance unit in the CFW
particulars that are deemed necessary for the which may be composed of Customs
assessment and collection of duties and Examiners, representatives from the
taxes, the compilation of statistics, and Enforcement Group (EG), Intelligence
compliance with this Act. The Bureau shall Group (IG) and other concerned offices.
require the electronic lodgment of the goods
declaration. The Port shall coordinate with the
Terminal Operator for the provision of the
The Bureau shall only require necessary ICT-infrastructure to facilitate
supporting documents necessary for customs the cargo clearance of goods transferred
control to ensure that all requirements of the to the ICT.
law have been complied with. Translation of
c. Hold/Alert Order. For consolidated indicated in the IMS and tag the shipment
shipments, when a certain HBL is subject as "approved" in the IMS.
of an alert or hold order, this shall not
prevent the transfer of the container to the 5.7.3. On-Line Release System (OLRS).
CFW for stripping. The shipment shall be Accredited CFWs shall be required to set-
processed in accordance with the rules up their own On-Line Release System
and regulations on the processing of (OLRS) which shall be linked to the
shipments subject of Alert or Hold Orders. Bureau's computer system for the
electronic transmission of instruction
Processing of Hold/Alert Orders issued messages from the Bureau to the
against LCL shipments transferred to off- concerned operator of the CFW granting
dock/off-terminal CFWs shall follow these entities authority to release the
existing rules and regulations on the goods to the rightful owner.
processing of hold/alert orders.

For shipments issued with Hold/Alert

Order after the transfer to a CFW other
than container freight stations, the
conduct of 100% physical examination,
the lifting thereof for continuous
processing, or issuance of a Warrant of
Seizure and Detention (WSD), as the
case may be, shall comply with the
procedure under existing customs rules
and regulations.

d. Seizure. Cargoes under seizure

proceedings shall be transferred to a
Container Hold Area (CHA) or the area
designated by the CFW operator for
seized items. Accordingly, the cargoes
shall be appropriately tagged in IMS to
prevent the release thereof pending
seizure proceedings. The Auction and
Cargo Disposal Division (ACDD) or
equivalent unit shall be given access in
the IMS in order to properly reflect the
status of the shipments under seizure and
forfeiture proceedings.

e. Overstaying Cargoes. The existing rules

and regulations on the abandonment of
cargoes shall be observed. For proper
disposition of overstaying cargoes, the
concerned Wharfinger or Warehouseman
shall submit a weekly report generated in
the IMS to the District Collector, through
the Chief, Law Division.

f. Release of Cargoes. Upon the receipt by

the IMS of release instructions (OLRS)
transmitted by the BOC e2m system, the
CFW Operator shall issue the gate pass
for the release of the cargo. The
Wharfinger or Warehouseman shall
validate the details in the gate pass as
against the details in the IMS for the
particular BL by matching the same in the
declaration in the hardcopy of the
processed goods declarations and the
gate pass. If in order, he shall then
approve the release of the cargo as
 Goods entered for warehousing may remain in
a CBW for a maximum period of one (1) year
from the time of its arrival thereat.

For perishable goods, the storage period shall

be three (3) months from the date of arrival,
extendable for valid reasons and upon written
request, to another three (3) months.

Goods not withdrawn after the expiration of the

prescribed period shall be deemed as
abandoned, as provided under Section 1129 of
this Act.

SECTION 1129. Abandonment,

Kinds and Effects of. — Imported goods are
deemed abandoned under any of the
following circumstances:
(e) When the owner or importer fails to
claim goods in customs bonded
warehouses within the prescribed period.

Can the Commissioner extend the period

limit beyond one (1) year for bonded goods
for manufacturing and intended for export?
Yes, the Commissioner, subject to the approval
of the Secretary of Finance and in consultation
with the Secretary of Trade and Industry, may
establish a reasonable storage period limit
beyond one (1) year for bonded goods for
manufacturing and intended for export, the
processing into finished products of which
requires a longer period based on industry
standard and practice.
SEC. 811. Period of Storage in CBWs. – 8.11. Period of Storage in CBWs.
Goods entered for warehousing may remain 8.11.1. Goods entered for warehousing
in a CBW for a maximum period of one (1) may remain in a CBW for a maximum
year from the time of its arrival thereat. For period of one (1) year from the time of
perishable goods, the storage period shall its arrival at the warehouse, without
be three (3) months from the date of arrival, prejudice to the provisions of Section
extendable for valid reasons, and upon 8.12.4 of this CAO.
written request, to another three (3) months.
Goods not withdrawn after the expiration of 8.11.2. For perishable goods, the storage
the prescribed period shall be deemed as period shall be three (3) months from
abandoned, as provided under Section 1129 the date of arrival at the warehouse,
of this Act. extendible for valid reasons, and upon
written request, for another three (3)
The Commissioner shall, in consultation months.
with the Secretary of Trade and Industry,
establish a reasonable storage period limit Imported goods shall be withdrawn from
beyond one (1) year for bonded goods for the CBWs when the necessary
manufacturing and intended for export, the withdrawal permit has been filed,
processing into finished products of which together with any related document as
requires a longer period based on industry may be required by the Bureau. Goods
standard and practice, subject to the not withdrawn after the expiration of the
approval of the Secretary of Finance. prescribed period shall be deemed
abandoned, as provided under
What is the maximum period for goods paragraph (e), Section 1129, Chapter 6,
entered for warehousing to remain in a Title XI of the CMTA, [20] unless the
CBW? CBW operator expressly abandons the
 goods prior to the expiration of the
period to withdraw the same within the
prescribed storage period.

Prior to the lapse of the prescribed

storage period, the Bureau shall notify
the CBW operator to either withdraw the
bonded goods for production and
reexport, or in the alternative, pay the
assessed duties and taxes due thereon.

8.11.3. Bonded raw materials withdrawn

within the prescribed storage period
shall be manufactured and exported
within one (1) year from the time of
arrival at the CBW. Bonded goods not
withdrawn either for manufacture or
export shall be deemed abandoned.

For goods withdrawn for manufacture

within the prescribed period of one (1)
year but not exported, the CBW
operator may request for the exportation
of the said finished goods subject to
imposition of applicable penalties for
late re-exportation and late liquidation or
pay the duties and taxes due on the
bonded goods provided the request for
late exportation or payment of duties
and taxes is made before the lapse of
the storage period.

8.11.4. The Commissioner shall, in

consultation with the Secretary of Trade
and Industry, establish a reasonable
storage period limit beyond one (1) year
for particular bonded goods for
manufacturing and intended for export,
the processing into finished products of
which requires a longer period based on
industry standard and practice, subject
to the approval of the Secretary of
Finance.

The storage period of goods transferred

to extension warehouses for production
shall be limited to one (1) month and
extendible for another one (1) month
subject to approval by the Bureau.
 DONE in the City of Manila, this 20th day of
June, in the year of Our Lord, Two Thousand
and Twenty-Four.

Published in the Manila Bulletin on June 22,

2024.

 CMO 29-2024 - Directive of the

President to Implement 24/7 Customs
Clearance Process

AGENCY – BUREAU OF CUSTOMS AND

DEPARTMENT OF AGRICULTURE
immediately implement a 24/7 deployment of
teams to ensure the uninterrupted processing
of shipments and air cargo nationwide.

All concerned are likewise instructed to

coordinate with the DA, shipping lines, arrastre
and terminal operators, warehouse facilities,
financial institutions and other stakeholders in
the supply chain, in order to facilitate the
continuous inspection, clearance and payment
processes of shipments and air cargo.

The actions taken and mechanisms put in

place by your respective ports shall be
submitted to the Office of the Commissioner
within twenty-four (24) hours from receipt of
this Memorandum.

CAO 1-2022
4.11. Terms and Conditions of Authority to
Operate a CBW.
4.11.1. Exemption from Duty and Tax of
Goods in CBWs. Goods duly entered for
SEC. 812. Exemption from Duty of Goods in warehousing in CBWs shall be exempt from
CBWs. – Goods duly entered for duty and tax within the prescribed period for
warehousing in CBWs shall be exempt from storage [17] and must be withdrawn from the
duty and tax within the allowed period for warehouse either for manufacture into export
storage unless withdrawn for consumption, products; for repacking; for distribution to
exportation or transit to a free zone or foreign markets; for sale to MCBW; for
another CBW, in which case, such transfer to subcontractors or members of
withdrawal will be subject to the applicable CCBWs; or transfer to accredited clients/end-
rules and regulations on the liquidation of user. Goods entered for warehousing shall
the warehousing entry. include imported raw materials, accessories,
spare parts, labels, hangers, cartons,
 EXECUTIVE ORDER NO. 62- June 20, packaging materials and the like used in the
2024 manufacture of goods. Withdrawals for
domestic consumption shall be subject to
MODIFYING THE NOMENCLATURE AND payment of duties and taxes.
RATES OF IMPORT DUTY ON VARIOUS
PRODUCTS Exportation of goods manufactured by any
MCBW shall be supervised by assigned
SECTION 2. Levy on Articles. — Upon the customs officials.
effectivity of this Order, all articles specifically
listed in Annex A hereof, which are entered into 4.11.2. Exclusion from Exemptions. The
or withdrawn from warehouses in the privilege of exemption from payment of duties
Philippines for consumption, shall be levied the and taxes, however, shall not apply to
MFN rates of duty as prescribed therein. implements, machineries, spare parts and
apparatus, supplies and tools to be used to
construct, repair or operate any MCBW
unless these supplies and spare parts are compliance and performance levels of all
indispensably needed in the production of CBWs especially with regard to applicable
finished products for exports subject to laws, rules and regulations and other
presentation of a Certificate of Qualification performance factors such as import-export and
from BOI and/or the corresponding economic viability, among others, in
exemption from the DOF.
consultation with stakeholders. The system
shall be utilized by the Bureau as a risk
4.11.3. Period to Liquidate. The importer management mechanism in its evaluation of
shall, within a non-extendible period of sixty any application or used as basis in any action
(60) days from the date of complete and full which may be taken by the Bureau for or
exportation, submit the complete documents against a CBW.
required for the liquidation of the entry. The
Periodic audits shall be conducted on a CBW
same period shall likewise be given an
for the purpose of monitoring its operations as
importer for the submission of the complete
well as to determine its compliance with
documents required for the liquidation of the
governing rules and regulations.
warehousing entry even in cases where
complete exportation is made before the For record purposes, all documents shall be
expiration of period prescribed. kept for three (3) years. [18]
Notwithstanding the foregoing, the maximum
period within which to submit complete
liquidation documents is thirty (30) days from 4.13. Requirements during
the expiration of the storage period. Operation.
Submission of documents after the thirty (30)- 4.13.1. Principal Books of Accounts. The
day period shall be considered as late Bureau and the CBW operator shall keep and
submission of documents and shall be subject maintain Principal Books of Accounts
to the penalties prescribed under this CAO. containing the records of importation and
exportation of all goods delivered to and
The imposition of the periods herein withdrawn from a CBW. As far as practicable,
prescribed shall be without prejudice to the Bureau and CBW operator shall utilize an
existing rules and regulations. ICT-enabled inventory and liquidation system
of all goods delivered to and withdrawn from
4.11.4. Raw Materials Importation. CBWs,
a CBW, which may serve as the principal
including its members, if applicable, may books of accounts.
import goods based on its approved SMRMIR
as duly authorized by the Bureau. SDAaTC
4.13.2. Stock Inventory Report. All CBWs
shall establish and maintain a computer-
SEC. 813. Records to be Kept by CBW based AIMS for bonded goods with linkage to
Operators. – An account shall be kept by the Bureau. The stock inventory report must
the Bureau of all goods delivered to a CBW, be submitted at the end of every calendar
and a report shall be made by the CBW year. Non-submission of stock inventory
operator containing a detailed statement of report may be a ground for the suspension or
all imported goods entered and withdrawn cessation of operations of the CBW.
from the CBW. The Bureau shall specify the
format of the report and may require A coding system acceptable to the Bureau
electronic submission. shall be adopted by CBW operators and
utilized to identify and track goods entered for
All documents, books, and records of warehousing and withdrawn for export from
accounts concerning the operation of any CBW compartments.
CBW shall, upon demand, be made
available to the District Collector or the What is an Automated Inventory
representative of the District Collector for Management System (AIMS)?
examination or audit. For record purposes, Automated Inventory Management System
all documents shall be kept for three (3) shall refer to the automated system to be
years. adopted by the CBW operator as a tool to
determine and monitor the stock inventory of
imported raw materials from the time of its
CAO 1-2022 entry into the CBW up to the liquidation of the
4.11.5. Compliance Rating System. The covering warehousing entry.
Commissioner shall establish a CRS which
shall be used to measure and assess the
What is an Automated Bonds Regulatory
Management System (ABMS)?
Automated Bonds Management System shall Administration, etc.);
refer to the automated system utilized by the
Bureau as a tool to effectively monitor and 13.4. As a pre-
cancel bonds for liquidating raw requisite for renewal
materials/entries.
of a license to operate
SECTION 12. Inspection of CBW and a CBW;
Bonded Goods. — The District Collector may
issue a Mission Order (MO) authorizing a 13.5. Voluntary
representative to conduct inspection of the
CBW and the bonded goods stored in the
closure; and
CBW and to examine the documents, books,
and records of accounts concerning the
13.6. As directed by
operation of any CBW. MOs shall contain the the Commissioner.
names of the representative, time and date of
inspection, and the documents, books, and
records of accounts to be examined.

CAO 1-2022
SECTION 13. Audit
of CBWs. — The
Commissioner may order
the audit and inspection
of CBWs by the
Warehousing Monitoring
and Audit Unit (WMAU) of
the Post Clearance Audit
Group (PCAG) on the
following grounds:
13.1. Information
from internal sources
such as the Customs
Intelligence and
Investigation Service
(CIIS), Enforcement
and Security Service
(ESS);
13.2. Referral from
the District Collector
or warehousing
operating divisions;
13.3. Derogatory
report/information
from external sources
(i.e., National Bureau
of Investigation, Sugar