(c) When goods cannot be classified by reference to 3 (a) or 3 (b), they shall be

classified under the heading which occurs last in numerical order among those
which equally merit consideration.
4. Goods which cannot be classified in accordance with the-above Rules shall be dassified
under the heading appropriate to the goods to which they are most akin.
5. In addition to the foregoing provisions, the following Rules shall apply in respect of the
goods referred to therein:
(a) Camera cases. musical instrument cases, gun cases, drawing instrument
cases. necklace cases and similar containers. specially shaped or fitted to
contain a specific article or set of articles. suitable for long-term use and
presented with the artides for Which they are intended, shall be classified with
such articles when of a kind normally sold therewith. The Rule does not.
however, apply to containers which give the whole its essential character;
(b) Subject to the provisions of Rule 5 (a) above, packing materials and packing
containers presented with the goods therein shall be classified with the goods if
they are of a kind normally used for packing such goods. However. this
provision does not apply when such packing materials or packing containers are
clearly suitable for repetitive use.
6. For legal purposes, the classification of goods in the subheadings of a heading shall be
determined according to the terms of those subheadings and any related Subheading
Notes and. mutatis mutandis. 10 the above Rules. on the understanding that only
subheadings at the same level are comparable. For the purposes of the Rule the
relative Section and Chapter Notes also apply, unless the context otherwise requires.
/
SEC. 104. Rates 01 Import Duty'. v
. I "rf': ._.-....
~ . ..
All Tariff Sections, Chapters, headings Jlnd subheadings and the rates of import duty
under Section 104 of Preskfenlial Decree No_ ;}4 and all SUbsequent amendment issues under
Executive Orders and Presidential Decrees are hereby adopted and form part of this Code.
There shall be levied, collected, and paid upon all imported articles the rates of duty
indicated in the Section under this section except as olhelWise specifically provided for in this
Code: Provided. that. the maximum rate shall not exceed one hundred per cent ad valorem.
The rates of duty herein provided or SUbsequently fixed pursuant to Section four
hundred one of this Code shall be subject to periodic investigation by the Tariff Commission and
may be revised by the President upon recommendation of the National Economic and
Development Authority.
The rates of duty herein provided shall apply to all products whether imported direcUy or
indirectly of atl foreign countries. which do not discriminate against Philippine export products.
An additional 100% across-the-board dUty shall be levied on the products of any fQreign country
which discriminates against Philippine export products
The tariff Sections. Chapters, headings and SUbheadings and the rate of import duty
under Section One Hundred Four of this Code shall be as follows:
XI

SECTION 105. Importations

......
The follO'Ning articles shall be exempt from the payment of import duties upon compliance ....ith
the formalities prescribed in, or with. the regulations which shall be promulgated by the Commissioner of
Customs wIth the approval of the Secretary of Finance; Provided, That any article sold, bartered, hired 0..-
used for purposes other than lhat they were intended for without prior payment of the duty. tax Of other
charges which would have been due and payable al the time of entry if the article had been entered
without the benefit of this section, subJect to forfeiture and the importation shall constitute a
fraudulent practice against customs revenue punishable under SectIOn Thirtysix hundred and NJo, as
amended, of this Code; Provided, further, That a sale pursuant to a judicial order or in liquidation of the
estate of a deceased person shall not be subject to the preceding proviso, without prejudice to the
payment of duties, taxes and other charges; Provided, finally, That the President may upon
recommendation of the Secretary of Finance, suspend, disallow or completely withdraw, in whole 01 ill
part, any of the conditionally-lree importation under this section:
a. Aquatic products (e.g.. fishes, crustaceans. mollusks, marine animals, seaweeds. fish
oil, roe), caught or gathered by fishing vessels of Philipplile registry: Provided. Thatlhey
are imported in such vessels or in crafts attached thereto: And provided, further, Thill
they have not been landed in any foreign territory or. if so landed, they have been landed
solely for transshipment without having been advanced in condition;
b. Equipment for use in the salvage of vessels or aircrafts. not available locally. upon
identlfication and the giVing of a bond in an amount equal to one and one-half times the
ascertained duties, taxes and other charges thereon, conditioned for the '
thereof or payment of the corresponding duties, taxes and other charges within six (6) ,
months from the date of acceptance of the import entry: Provided, That the Collector 01 '
Customs may extend the lime for exportation or payment of duties. taxes and other
charges lor a term not exceeding six (6) months from the expiration of the original
period;
c. Cost of repairs. excluding the value of the article used. made in foreign countries upon -
vessels or aircraft documented, registered or licensed in the Philippines, upon proof
satisfactory to the Collector of Customs (1) that adequate facilities for such repairs are
not afforded in the Philippines. or (2) that such vessels or aircratts. while in the rcgu!aI
course of her voyage or flight was compelled by stress of "leather or other casualty to
put into a foreign port to make such repairs in order to secure the safety. seaworthiness
or airworthiness of the vessel or aircraft to enable her to reach her port of destinatlon;
d. Articles brought into the Philippines for repair, processing or reconditioning to be "
re-exported upon completion of the repair, processing or reconditioning: Provided, That'..:
the Collector of Customs shall reqUire the giving of a bond in an amount equal to one
and one-half times the ascertained duties. taxes and other charges thereon, conditioned
lor the exportation thereof or payment of the corresponding duties, taxes and other
charges w'ithin six (6) months from the date of acceptance of the import entry;
e. Medals, badges, cups and other small articles bestowed as trophies or prizes. or those
received or accepted as honorary distinction;
1. Personal and household effects belonging to residents of the Philipplnes returning from
abroad including jewelry. precious stones and other articles of lUXUry which
/ formally declared and listed before departure and)denlified under oath before the,
Collector of Customs when exported from the Philippines by such returning residentS':
upon their departure therefrom or during their stay abroad; personal and househOkli.
effects inCluding wearing apparel, articles of personal adornment (except luxury
toilet articles, instruments related to one's profession and analogous personal c:r:
household effects, exduding vehicles, watercrafts, aircrafts, animals purchased f1't
foreign countries by residents of the Philippines which were ,(ecessary, appropriate and,I'
normally used lor their comfort and convenience during their stay abroad.
them on their return, or arriving within a feasonable time which, barring unforeseen and_
fortuitous events. in no case shan exceed sixty (60) days after the ovmer's retum:
- 432-
Provided, That the personal and household effects shall neither be inkmerCial
quantities nor intended for barter, sale or hire and that the total dutiable value of which
shall not exceed Ten .Ktlousand Pesos (P10,OOO.OO): Provided further, That the
retuming resident has tot previously availed of the privilege under this section within
three hundred sixtyfive (365) days prior to his arrival: Provided, finally. That a fifty per
cent (50%) ad valorem duty across the board shall be levied and collected on the
personal and househo:d effects (except luxury items) in excess of Ten Thousand Pesos
(P10.000.00). For purposes of this section. the phrase residents
M
shan refer
to nationals who have stayed in a foreign country for a period of at least six (6) months.
1-1 In addition to the privilege granted under the immediately preceding paragraph, returning
overseas contract workers shall have the privilege to bring in, duty and tax free, used
home appliances, limited to one of every kind once in a given calendar year
accompanying them on their return, or arriving within a reasonable time which, barring
unforeseen and fortuitous events, In no case shall exceed sixty (60) days after the
owner's return upon presentation of their original passport at the Port of Entry: Provided,
That any excess of Ten Thousand Pesos (P10,OOO.OO) for personal and household
effects and/or of the number of duty and tax-free appliances as provided for under this
section, shall be subject to the corresponding duties and taxes provided under this
Code. For purposes of tllis section, the following words/phrases shall be understood to
mean: (a) Qverseas Contract Workers - Holders of valid passports duly issued by Ihe
Department of Foreign Affairs and certified by the Department of Labor and
EmploymenVPhilippine Overseas Employment Agency for overseas employment
purposes. It covers all nationals working in a foreign country under employment
contracts, including Middle East Contract WOf1<ers, entertainers, domestic helpers,
regardless of their employment status in the foreign country. (b) Calendar Year - shall
cover the period from January 1 to December 31.
g. Wearing apparel, articles of personal adornment, toilet articles, portable tools and
instruments, theatrical costumes and similar effects accompanying travelers, or tourists,
or arriving within a reasonable time before or after their arrival in the Philippines. which
are necessary and appropriate for the wear and use of such persons according to the
nature of the journey, their oomfort and convenience: Provided, That this exemption
shall not apply to articles intended for other persons or for barter, sale or hire: Provided,
further, That the Collector of Customs may, in hrs discretion, require either a written
commitment or a bond in an amount equal to one and one-tlal1 times the ascertained
duties, taxes and other charges conditioned for the exportation thereof or payment of the
corresponding duties, taxes and other charges within three (3) months from the date of
acceptance at the import entry: And Provided, finally, That the Collector of Customs
may extend the time for exportation or payment of duties, taxes and other charges for a
term not exceeding three (3) months from the expiration of the original period;
g-1 Personal and household effects and vehicles belonging to foreign consultants and
experts hired by, and/or rendering service to, the government, and their staff or
personnel and families, accompanying them or arriving within a reasonable lime before
or after their arrival in the Philippines, in quantities and of the kind necessary and
suitable to the profession, rank or position of the person importing them, for their own
use and not for barter, sate or hire proVided that, the Collector of Customs may in his
discretion require either a written commitment or a bond in an amount equal to one and
one-half times the ascertained duties, taxes and other charges upon the articles
claSSIfied under this subsection; conditioned for the exportation thereof or payment of
the corresponding duties, taxes and other charges within six (6) months after the
expiration of their term or contract; And Provided, finafly, That the Collector of Customs
may extend the time for exportation or payment of duties, taxes and other charges for
term not exceeding six (6) months from the expiration of the original period:
433
h. Professional instruments and implements. tools of trade. occupation or employment,
wearing apparel. domestic animals, and personal and household effects belonging to
persons coming to settle In the Philippines or Filipinos and/or their families and
descendants who are now residents or citizens of other countries, such parties
hereinafter referred to as Overseas Filipinos, in quantities and of the class suitable to the
profession, rank or position of the persons importing them, for their own use and not for .
barter or sale, accompanying such persons, or arriving within a reasonable time, in
the discrelion of the Conector of Customs, before or after the arrival of their owners,
which shall not be later than February 28. 1979 upon the production of evidence
satisfactory to the Collector of Customs that such persons are actualty coming to selUe
in the Philippines, that change of residence was bona fide and that the privilege of free
entry was never granted to them before or that such person qualifies under the
provisions of Letters of Instructions 105, 163 and 210, and that the articles are brought
from their former place of abode. shan be exempt from the payment of customs duties
and taxes: Provided, That vehicles, vessels. aircrafts, machineries and other similar
articles for use in manufacture, shall not be classified hereunder;
I.
J.
Articles used exclusively for public entertainment, and for display in public expositions, or
for exhibition or competition for prizes, and devices for projecting pictures and parts and
appurtenances thereof, upon identification, examination. and appraisal and the giving of
a bond in an amount equal to one and one-half times the ascertained duties, taxes and
other charges thereon, conditioned for exportation thereot or payment of the
corresponding duties, taxes and other charges within six (6) months from the date of
acceptance of the import entry; Provided, That the Collector of Customs may extend the
lime for exportation or payment of duties, taxes and other charges for a term not
exceeding six (6) months from the expiration of the origmal period; and technical and
scientific films when imported by technical, cultural and scientifIC institutions. and not to
be exhibited for profit Provided, further, That if any of the said films is exhibited for
profit, the proceeds therefrom shan be subject to confIScation, in addition to the penalty
provided under Section Thirtysix hundred and ten as amended, of this Code:
Artides brought by foreign film producers directly and exclusively used for making or
recording motion picture films on location in the upon their identification,
examination and appraisal and the giving of a bond in an amount equal to ooe and
one-half times the ascertained duties, taxes and other charges thereon, conditicned lor
exportation thereof or payment of the corresponding dUlies, taxes and other charges
within six (6) monlhs from the date of acceptance of the import entry, unless extended
by the Collector of Customs for another six (6) months; photographic and
cinematographic films, undeveloped, exposed outside the Philippines by resident Filipino
citizens or by producing companies of Philippine registry where the principal actors and
artists employed for the production are Filipinos, upon affidavit by the importer and
identification that such exposed films are the same films previously exported from the
Philippines. As used in this paragraph, the terms "actors" and "artists" include the
persons operating the photographic camera or other photographic and sound recording
apparalus by which the film is made;
,
k. Importations for the official use of foreign embassies, legations, and other agencies of
foreign governments: Provided. That those foreign countnes accord like privileges to
corresponding agencies of the Philippines.
Articles imported for the personal or family use of the members and attaches of foreign
embassies, legations. consular officers and other representatives of foreign
govemments: ProWded, That such privilege shall be accorded under special
agreements between the Philippines and the countries which they represent And
Provided, further, That the privilege may be granted only upon specific instructions of the
Secretary of Finance in each instance which will be issued only upon request of the
Department of Foreign Affairs;
434

,.
"
,
I. Imported articles donated to, or for the account of, any duly registered relief organization,
not operated for profit, for free distribution among the needy, upon certification by the
Department of Social Services and Development or the Department of Education,
Culture and Sports. as the case may be;
m. Containers, holders and other similar receptacles of any material including kraft paper
bags for locally manufactured cement for export. inclUding corrugated boxes for
bananas, mangoes, pineapples and other fresh fruits for export, except other containers
made of paper, paperboard and textile fabrics, which are of such character as to be
readily identifiable and/or reusable for shipment or transportation of goods shall be
delivered to the importer thereof upon identification, examination and appraisal and the
giving of a bond in an amount equal to one and one-half times the ascertained duties,
taxes and other charges within six (6) months from the date of acceptance of the import
entry;
n. Supplies which are necessary for the reasonable requirements of the vessel or aircraft in
her voyage or night outside the Philippines, inclUding articles transferred from a bonded
warehouse in any collection district to any vessel or aircraft engaged in foreign trade, for
use or consumption of the passengers or its crew on board such vessel or aircrafts as
sea or air stores; or articles purchased abroad for sale on board a vessel or aircraft as
saloon stores or air slore supplies: Provided, That any surplUS or excess of such vessel
or aircraft supplies arriving from foreign ports or airports shall be dutiable;
o. Articles and salvage from vessels recovered after a period of two (2) years from the dale
of filing the marine protest or the time when the vessel was wrecked or abandoned, or
parts of a foreign vessel or her equipment. wrecked or abandoned in Philippine waters
or elsewhere: Provided, That articles and salvage recovered within the said period of
two (2) years shall be dutiable;
p. Coffins or urns containmg human remain, bones or ashes. used personal and household
effects (not merchandise) of the deceased person, except vehicles. the value of which
does not exceed Ten Thousand Pesos (P10,OOO), upon identification as such;
q. Samples of the kind, in such quantity and of such dimension or construction as to render
them unsalable or of no appreciable commercial value; models not adapted for practical
use; and samples of medicines, property marked "sample-sale punishable by law", for
the purpose of introducing a new article in the Philippine market and imported only once
in a quantity sufficient for such purpose by a person duly registered and identified 10 be
engaged in that trade: Provided, That importations under this subsection shall be
previously authorized by the Secretary of Finance: Provided, however, That importation
of sample medicine shall be previously authorized by the Secretary of Health that such
samples are new medicines not available in the Philippines: Provided, finally, That
samples not preViously authorized and/or properly marked in accordance with this
section shall be levied the corresponding tariff duty.
Commercial samples, except those that are not readily and easily identifiable
(e.g. precious and semiprecious stones, cut or uncut, and jewelry set with precious or
semi-precious stones), the value of any single importation of which does not exceed ten
thousand pesos (P10,OOO) upon the giving of a bond In an amount equal to twice the
ascertained duties, taxes and other charges thereon. conditioned for the exportation of
said samples within six (6) months from the date of the acceptance of the import entry or
in default thereof, the payment of the corresponding duties, taxes and other charges. If
the value of any single consignment of such commercial samples exceeds ten thousand
pesos (P10,OOO), the importer lhereof may select any portion of same not exceeding in
value of ten thousand pesos (P10,OOO) for entry under the provision of this subsection.
and the excess of the consignment may be entered in bond. or for consumption, as the
importer may elect;
435
r. Animals (except race horses), and plants for scientific, experimental, propagation,
botanical, breeding, zoological and national defense purposes: Provided, That no live
trees, shoots, plants, moss, and bulbs, tubers and seeds for propagation purposes may
be imported under this section, except by order of the Government or other duly
authorized institutions: Provided, fUrlher, That the free enllY or animals for breeding
purposes shall be restricted to animals of recognized breed, duly registered in the book
of record established for that breed. certified as such by the Bureau of Animal Industry:
Provided, furthennore, That certificate of such record, and pedigree 01 such animal duty
authenticated by the proper custodian of such book of record. shall be produced and
submitted to the Collector of Customs. together with affidavit of the owner or imporier,
that such animal is the anjmal described in said certificate of record and pedigree: And
Prollided, finaffy, That the animals and plants are certified by the National Economic and
Development Authority as necessary for economic development;
s. Economic, technical, vocational. scientifIC, philosophical, historical, and cultural books
and(or publications: Provided. That those which may have already been imported bul
pending release by the Bureau of Customs at the effectivity oUhis Decree may stlll enjoy
the privilege herein provided upon certification by the Department of Education, Culture
and Sports that such imported books and/or publications are for economic, technical,
vocational, scientific, philosophical, historical or cultural purposes or that the same are
educational, scientific or cultural materials covered by the International Agreement on
Importation of Educational Scientific and Cultural Materials s ~ n by the President of
the Philippines on August 2, 1952, or other agreements binding upon the Philippines.
Educational, scientific and cultural malerials covered by international
agreements or commitments binding upon the Philippine Government so certified by lhe
Department of Education. Cullure and Sports.
Bibles,' missals, prayer books, Koran, Ahadilh and other religious books of
similar nature and extracts therefrom, hymnal and hymns for religious uses;
t Philippine articles previously exported from the Philippjnes and returned without having
been advanced in value or improved in condition by any process of manufacture or other
means. and upon which no drawback or bounty has been allowed. induding instruments
and implements, tools of trade. machinery and equipment used abroad by Filipino
citizens in the pursuit of their business, occupation or profession; and foreign articles
previously imported when returned after having been exported and loaned for use
temporarily abroad solely for exhibition. testing and experimentation, for scientific or
educational purposes; and foreign containers previously imported which have been used
in packing exported Philippine articles and returned empty if imported by or for the
account of the person or institution who exported them from the Philippines and nct for
sale, barter or hire subject to identification: Provided, That any Philippine article falling
under this subsection upon which drawback or bounty has been allowed shall, upon ':'
re-importation thereof, be subject to a duty under this subsection equal to the amount of
such drawback or bounty;
u. Aircraft, equipment and machinery, spare parts commissary and catering supplies,
aviation gas, fuel and oil, whether crude or refined, and such other articles or s u p p ~ s
imported by and for the use of scheduled airlines operating under Congresslonal
franchise: Provided, That such artlcles or supplies are not locally available in reasonable
quantity, quality and price and are necessary or incidental for the proper operation of the
scheduled airline importing the same;
v. Machjneries, equipment. tools for production, plants to convert mineral ores into
saleable form. spare parts. supplies, materials, accessories. explosives, chemicals, and
transportation and communicat'on facilities imported by and for the use of new mines
and old mines which resume operations. when certified to as such by the Secretary of
Agriculture and Natural Resources upon the recommendation of the Director of Mines.
for a period ending five (5) years from the first date of actual commercial production of
saleable mineral products: Provided, That such articles are not locally available in
- 436-
reasonable quantity, quality and price and are necessary or incidental in the proper
operation of the mine; and aircrafts imported by agroindustrial companies to be used by
them in their agriculture and industrial operations or activities, spare parts and
accessories thereof;
w. Spare parts of vessels or aircraft of foreign registry engaged in foreign trade when
brought into the Philippines exclusively as replacements or for the emergency repair
thereof, upon proof satisfactory to the Collector of Customs that such spare parts shall
be utilized to secure the safety, seaworthiness or airworthiness of the vessel or aircraft.
to enable it to contmue its voyage or fHght;
x. Articles of easy identificalion exported from the Philippines for repair and subsequently
reimported upon proof satisfactory to the Collector of Cusloms that such articles is not
capable of being repaired locally: Provided. That (he cost of the repairs made to any
such article shall pay a rale of duly of thirty per cent ad valorem;
y. Trailer chassis when imported by shipping companies for their exclusive use in handling
containerized cargo, upon posting a bond in an amount equal to one and one half times
the ascertained duties, taxes and other charges due thereon to cover a period of one
year from the date of acceptance of the entry, which period for meritorious reasons may
be extended by the Commissioner of Customs from year to year, subject to the following
conditions:
1. That they shall be properly identified and registered with the Land
Transportation CommiSSion;
2. That they shall be subject to customs SupelVtSIOn fee 10 be fixed by the
Collector of Customs and SUbject to the approval of the Commissioner of
Customs;
3. ThaI they shall be deposited in the Customs zone when not in use; and
4 That upon the expiration of the period prescribed above, duties and taxes shall
be paid. unless other"'''lse re-exported
The provisions of Sec. 105 of Presidential Decree No. 34, daled October 27, 1972, to the
contrary notwithstanding any officer or employee of the Department of Foreign Affairs, inclUding any
attache, civil or military, or member of his staff assigned to a Philippine diplomatic mission abroad by his
Department or any similar officer or employee assigned to a Philippine consular office abroad, or any
personnel of the Reparations Mission in Tokyo or AFP military personnel detailed with SEATO or any
AFP military personnel accorded assimilated diplomatic rank on duty abroad who is returning from a
regular assignment abroad, for reassignment to his Home office. or who dies. resigns, or is retired from
the service, after the approval of this Decree, shall be exempt from the payment of all duties and taxes on
his personal and household effects, inclUding one molar car which must have been ordered or purchased
prior to the receipt by the mission or consulate of his order of recall, and which must be registered in his
name: Provided, however, Thqt this exemption shall apply only to the value of the motor car and to the
aggregate assessed value of said personal and household effects the latter not to exceed thirty per
centum (30%) of the total amount received by such officer or employee in salary and allowances during
his latest assIgnment abroad but no! to exceed four years: Provided. further, That this exemption shall nor
be availed of oftener than once eveIY four years; And. Provided. finally. That the officer or employee
a;>ncerned must have served abroad for not less than two years.
The provisions of general and special laws, including those granting fanchises. to the contrary
notwithstanding, there shall be no exemptions whatsoever from the payment of customs dulles except
those prOVIded for in this Code; those granted to government agenCies, instrumentalities or
governmenl-owned or controlled corporations with existing contracts, commilmenls, agreements, or
obligations (requiring such exemption) with foreign countries; inlemational institutions. associahons or
organizations entitled to exemption pursuant to agreements or special laws, and those that may be
granted by the President upon prior recommendation of the National Economic and Development
Authority 1I1 the Interest of national economic development
- 437 -
c, Any proclamation issued by the President under this section shall, if he deems it consistent with
the interest of the Philippines. extend to the whole of any foreign country or may be confined to
any subdivislOO or subdivision.s thereof; and the President shaH, whenever he deems the public
interests require. suspend. revoke. supplement or amend any such proclamation.
d. All articles imported contrary to the provisIons of this section shall be forfeited to the Government
of the Philippines and shall be ~ b l e to be seized. prosecuted and condemned in ~ k e manner
and under the same regulations, restrictions and provisions as may from time to time be
established for the recovery, collection, distribution and remission or forfeiture 10 the government
by the tariff and customs laws. Whenever the provision of this section shalt be applicable to
importations into the Philippines of articles wholly or in part the growth or product of any foreign
country, they shall be applicable thereto. whether such articles are imported directly or indirectly.
e. It shall be the duty of the Commission to ascertain and at all times to be informed whether any of
the discriminations against the commerce of the Philippines enumerated in subsections "a" and
"b" of this section are practiced by any country; and if and when such discriminatory acts are
disclosed, it shall be the duty of the Commlssion to bring the matter to the attention of the
President, together with recommendallons.
f. The secretary of FV"i:ance shall make such rules and regulations as are necessary for the
execution of such proclamation as lhe Presidenl may issue in accordance with the provisions of
this section.
PART 3. FLEXIBLE TARIFF
SECTION 401. Flexible Clause. ./
a. In the interest of national economy, general welfare and/or national security, and subject to the
limitations herein prescribed, the President, upon recommendation of the National Economic and
Development Authority (hereinafter referred to as NEDA). is hereby empowered: (1) to increase.
reduce or remove exisung protective rates 01 import duty (induding any necessary change in
classification). The existing rates may be Increased or decreased to any level, in one or several
stages but in no Case shall the increased rate of import duty be higher than a maximum of one
hundred (100) per cent ad valorem; (2) 10 establish import quota or to ban imports of any
commodity, as may be necessary; and (3) to impose an additional duty on all imports not
exceeding ten (10) per cent ad valorem whenever necessary: Provided, That upon periodic
Investigations by the Tariff Commission and recommendation of the NEDA. the President may
cause a gradual reduction of protection levels granted in Section One Hundred and Four of this
Code, including those SUbsequently granted pursuant to this section.
b. Before any recommendation is submitted 10 Ihe President by the NEDA pursuant to the
provisions of this section, except in the imposition of an additional duty not exceeding ten (10)
per cent ad valorem, the Commission shall conduct an investigation in the course of which they
shall hold public hearings wherein interested parties shall be afforded reasonable opportunity to
be present. produce evidence and to be heard. The Commission shall also hear the views and
recommendations of any government office, agency or instrumentality concerned. The
Commission shall submit their findings and recommendations to the NEDA within thirty (30) days
after the termination of the publiC heanngs.
c. The power of the President to increase or decrease rates of import duty within the limits fixed in
subsection "a" shall include the authority to modify the form of duty. In modifying the form of
dUty, the corresponding ad vaforem or specific equivalents of the duty with respect to imports
from the principal competing foreign country for the most recent representative period shan be
used as bases.
461 .
d.
e.
f
The Commissioner of Customs shall regularly furnish the Commission a copy of all customs ,:"
import entries as filed in the Bureau of Customs. The Commission or its duly authorized,,'.:';
representatives shall have access to. and the right 10 copy aU liquidated customs import entries;Y
and other documents appended thereto as finally filed in the Commission all Audit. . . .,"
The NEDA shall promulgate rules and regulations necessary to carry out the provisions of this,
section.
Any Order issued by the President pursuant to the provisions of this section shall take effet:l thirty
(30) days after promulgalion. except in the imposition of additional dUly not exceeding ten (10) "
per cent ad valorem which shan take effect al the discretion of the President.
SECTION 402. Promotion of Foreign Trade.
a. For the purpose of expanding foreign markets for Philippine products as a means of assislance
in the economic development of the country, in overcoming domestic unemployment, in.
increasing the purchasing power of the Philippine peso, and in establishing and maintaining
better relations between the Philippines and other countries, the President, is authorized from
time to time.
(1) To enter into trade agreements with foreign governments or instrumentalities
and
(2) To modify import duties (including any necessary change in classification) and otheri;',:'
import restrictions, as are required or appropriate to carry out and promote foreign trad&:/
with other countries: Provided. however. That in modifying import duties or fixing impOI1*;'i,
quota the requirements prescribed in subsection "a" of Section 401 shall be
Provided, further. That any modifICation of import duties and any fixing of import quotas
made pursuant to the agreement on ASEAN Preferential Trading Arrangements ratified/.
on August 1, 1977 shall not be subject to the limitations of aforesaid section "at>
Section 401, ,',';:

#-
b. The duties and other import restrictions as modified in subsection "a" above, shall apply
articles which are the growth, prOduce or manufacture of the specIfic country. whether
directly or indirectly, with which the PhIlippines has entered into a trade agreement
That the President may suspend the application of any concession to articles which are
growth, produce or manufacture of such country because of acts (including the
international cartels) or policies which in his opinion tend to defeat the purposes set in
section; and the duties and other import restrictions as negotiated shall be in force and effece:)
from and after such time as specified in the Order. ,":","Z
;:",
"'''I
c, Nothing In this section shall be to give any authority to cancel or reduce in ..any
any of the indebtedness of any foreign country to the PhIlippInes or any claIm of the
against any foreign country. .

d. Before any trade agreement is concluded with any foreign government or instrumentality
reasonable public notice of the intention to negotiate an agreement with such government or.
instrumentality shall be given in order that any interested person may have an opportunity to)
present his views to the Commission which shall seek information and advice from
Department of Agriculture, Department of Natural Resources, Department of Trade and Industry;1j
Department of Tourism. the Central Bank of the Philippines, the Department of Foreign Affairs.t{
the Board of Investments and from such other sources as it may deem appropriate.
" .":\
, ,
e (1) In advising the President. as a result of the trade agreement entered into, the;:.:--
Commission shall determine whether the domestic industry has suffered or is being",;
threatened with injury and whether the wholesale prices at which the domestic products
are sold are reasonable, taking into account the cost of raw materials, labor,
fair return on investment, and the overall efficiency of the industry. .
- 462-

.-"
" ')',
SECTION 504. Official Seal.
The Commission is authorized to adopt an official seal.
SECTION 505. Functions of the Commission.
The Commission shall investigate
- 464
Ascertain import costs of such representative articles so selected;

.,
the administratIOn of, and the fiscal and industrial effects of. the tariff and customs laws
ot this country now in force or which may hereafter be enacted;

the relations between the rates of duty on raw materials and the finished or \:'
finished products. :,'
.,

the effects of ad valorem and specific duties and of compound specific and ad
duties:""a
all relative to arrangement of schedules and classification of articles in
several sections of the tartff law;
;j.'\1
the tariff relations between the Phitippines and foreign countries, commercial
preferential provisions. economic alliances, the effect of export bounties and
transportation rates; 'J:
'.
the volume of importaltOns compared with domestic production and consumption; .
. , ..,

conditions, causes and effects relating to competll1on of foreign industries with
the Philippines. inclUding dumping and cosl of productIOn;
in genera!. to investigate the operation of customs and tariff taws, including their r..
to the national revenues, their effect upon the industries and labOr of the country, and'
submit reports of its investigations as hereinafter provided; and .:. f
the nature and composition of. and the classification of, articles according to
commodity dassification and heading number for customs revenue and other :.
purposes which shall be fumished to NEOA. Board of Investments. Central Bank
Philippines, and Secretary of Finance.

Assistance to the President and Congress of the Philippines.

(d)
la)
Id)
(b)
Ih)
(b)
(c)
(a)
(i)
(Q
(g)
(c)
Ie)
In order that the President and the Congress may secure information and assistance, it shall.':"
the duty of the Commission to ..;.,. '
'.. ,.;.;. .
":
Ascertain conversion costs and costs of production in the principal growing, producing ..
manufacturing centers of the Philippines. whenever practicable: .'.':". -
.. '
Ascertain conversion costs and costs of production in the principal growing,
manufacturing centers of foreign countries of articles imported into the Phili .
,
whenever such conversion costs Of costs of production are necessary for co '.
with those in the Philippines; ..
Select and describe representative imported into the Philippines similar
comparable with. those locally prodUced; select and describe articles of the
similar to, Of comparable with. such imported article; and obtain and file
artides so selected whenever advisable;
' ....



.......
,
,
..
SECTION 506,
:':'.-
"
BOOK II CUSTOMS LAW
TrT1.E I. - THE BUREAU Of CUSTOMS

r
PART 1. _ ORGANIZATION. FUNCTION AND JURISDICTION OF THE BUREAU
S-
- ilW YI .. ChI .
601. .Clio! ()ff;cia!s 01 the BcnutJ 01 Customs Tne Bureau of Customs sh..11 have onl'! cruel atld
0ooy!ssiS1,!!!Ldlaefs,.to fespec;tivllly as the (l'Ittqlnafter know:-:. as I.....
Cammluio/ler) .nd uty ComlDisaonen;...of -Cusloms, each one 10 hl:-;lIc! la) Revenue
ColtICtJon Monitoring Group; (b) Customs Assessment ..nd Opetation.s Coordinltin9 Gtoup: jclln1etllSente ;II!<!
GfOUp, and {d} Inlernal hlminislrahOfl Group, who sn..11 elm al! .nnual COmpe'lsatlt>n m
accordance with the rales prMClibed by .>isting 18w. Th. Commission.er and the Deputy 01
Customs $l'laU bl appoiol..d by tne PrniOenl of the PhIlippines. (As ameodcd by E.O, 127 effective 30 JilJluary
1981).
In ease of kmPoBry Bnd'permanent vacanc:y, one of tha Depllly CommIssioners v,'ll be de'!oi!JniMed hy
-
lhe Seeretary of Finance to let n CommISSIoner of CU5toml, unlil !.he .incl.Imbenl reasSYml!">
his is by pefmElJlOOI appoilltmet"lt
of the Bureau, - The Q\1rM" ral d.u11es, powers .. nd jurisdiction 01 the bu.eau sh,.11
include: . ,..', rt' <::...
(-'.0 ---r--------..
a 1he Oilltllmint and cgllectiQo Q! thl! from lind all u\tll,r .'Ju,es,. fp.H.
finn and penalties ;IccnJirlg und'ii1Fi'el1liffilnd customs Imws.;
b. The prevetllion and supprMsion of lind upon the .' '
0. TnI' IUp.mslon and contfol over the iOlfance and deafaoce of "1"$ 'od ai<gal'lengaged in fQrl'!ig;-,
comme'ce;
d Th. enforcement of the tari1f rd "'51 liS I'iws al\(\! all rules and fegu!alrom. rfllatlflg to tt,e
tariff end c"stoms administration;
.. The supltNlsion and <:onlrol onr lhe handling of f_a rna'" aJ(\Yin9 10 the for the
purpo511 or ltle conedioo of the duly on the dutiable mrticlM thtJ$ If1\ported -a the preven:lon (II
smugglinlllhrougn tt1e me<!ium of 5uth
f Supervislt end control aD import and ltlCJfOI1 cargoes, l..ndM or stored jn Ri."l':.\. airport:;, Te:-mln<ll
facilitlll, lr\Clllding eonlainer yatcls al"ld freight Iytlons, fot the prlrteetion 01 tfMlOU.
9 Exera$l e:-dtlSiYtt oflginal jurislldian 0\IeI" sei1:ure and farfltillle cases Uflder the tati1f alld C\ntoms
I
EC 603 . orilll Jurisdiction. For the lNe and effK'live e:ll!f"ClSe of the pcwe1' conferred b)' lao... and
to !he en the/mr, said Bureau shall hcwl'l the right of aoo police authoflly
within the jurisdiction 01 the Philippines and OVfI( lilt airports, beYI o'{('rs and 'oland
Whether navigable: Of M! bom.lh sea. - tf1.,-tVvlv
- .
When a bltCOmes subject to seizure by reason 01 an act dol'll! in Pr.ilippine wa\ers in v1oIalion of the
lariN and cuSloms a-, a pursuit of 'umvesQl ngan within tn... jurisdictional Wil11!f1l may conlinuP. beyond
ma.itime zone. lInd tile vessel may be on the high seas. Imported articles which may be to
s",zure fOf vloialicm 01 th" la.iff and CUlloms laws may b" pursued in their Iraosportalion in Ihl!! Philippines
land, water 01 air and such jurisdietion exurted ove' them at any pillct th..... ein as may be necessary for the due

enfo en he la......
C. 604, tWit' Prem;,es Uwdlor CusrO/M f'utpou'J.. . The Bureau of CU5tomS shall. fOl
cuslom pelSes, hllVe e:a:lusiYe eonlre{. diJe<!ion and management of cu!oloml'louset. w<!r,tt9.YU!.;.
alt cases wirml"in-pre{uilic.IO Ihe genet"aJ pOi;cP.
powers of the city (lr munieipality arid the Philipolne COllst Guard in the exercise of lis funl.'lJons .."Cn
pJemises all!! $Itualoild
'/SEC 605. of PM RsgufatioIl of &xfNJ(J 01 Qu.varvirJe. - Cusloms offloais and employees
shall t:OOpot!t"ale lMIh the QIJ8fiInllOl! authorities In the l:!Oloroornent of the Fert legulaliV1\s
promulgated by the Bureau 01 Quarantine and shall give effect to the ume in 50 far as they life connected
matters of st'lipping and navigation
---{EC:' 606. Power of 'he presideni ,;' /0 of BurrtiJu of eLls/oms. - When any
pI.Iblic Wharf, landing place, street or lan'd, not preViously unde'r the jurisdictiOl1 of the Burea" of ClIstoms, in any
port of entry, is ne<:essaly or desirable lor any proper cu&tOfTIS p"rpose, lhe President 0/ Ihe Philippines may.
by e"Jt.ecullVe order, declare such premises to be under the jUlisdictioo of the Burellu 01 Customs, and thereafter
the authority of such Sureau in respect thereto Shalf be fully effective
607. Arrnu81 Report of . The annual repotl of the Commissioner to the P',,",,'dent
shall, among olher"things, cantlin a compilation 01 the (iI) quantity and value 01 the articles imported Into the
Philippines and the corresponding IImount of customs dlIlies, taxes lind other charges assessed and collected
on'importH articles itemized h accordance with the tariff Madings atld SUbheadings as appearing ill the
liquidated customs entries provldE!d lor"lri 1N& CodE!, (b) perCenlage collection of the peso value 01 imports, (c)
quantity and lIaiue ot conditionally-Iree Importations, (d} customs valuation over and abolle letters of credit
opened, (e) quanlity and value of tax-lrQI imports, and (I) 1M quantity and valve 01 arlrcles exported flam the
Ptlilippines as well IS the laxes bod other aSl>e&sed and collected Oil them lor the preceding year.
Copies of such annual report shall be furnished regularly to the Depllrtmnt of Finance, Tariff Commission,
NEDA, Celltfal Bank of the Philippines, Soard of Investments, Department 01 Budget, and ather economjc
agencies of the government, or'I or belore December 30, of each year
.' :' .-
..

608. Commissioner to Make' Rulas ami RegUlations. - The Commissioner shall, &ubject to lhe
approv he Secretary of Finance, promulgate ,all rUles and regulations neceuary ta enforce the provisions
olthis cOde. He 1>hall also ciuse The' preparation and publication or a. customs manual covering up-to-date
rules and rtguli.itions and de<:islons 01 tile Bureau of CU!.tOITlS. The 'manual shall be and made
avaibbie to the public at teast 'onceever'y'quartE!r within the first 'f!lonlh lifter the end ot every quarter Tile
Secre:ary of Finance and/or t Commissioner of shall rurnish "..
/ Boal . lilt.NEDA and the .. an.ff.t:omminion. with at least three COpies. each of
deparlmenlorder, iujministrailved'ider, 'mem'l5randum circulars and such rules and regulations which are
promulgated from trme to time for the purpose of implementing the provisions 01 tne Code.
, .
.. ,' :.
,..
/SEC, 509 Commisslon8r to FurniSh Copies of Liquldal8d Duplicares The Commissioner
sMII regularly furnish the NEDA. the Central Bank; of the Philippines,the Tariff Commission a copy each of all
customs import/export entries as filed with the 6ureau of Customs The Tariff Commission.. 0:' ..lIs duly
authorized agents shall have access 10 ilnd the light to copy all the customs import entries and other
documE!nls appended thereto as hnally filed in the Co';:;missiofl on AUdit.
.,
PART 2. - COLLeCTION DISTRiCTS AND PORT OF ENTRY
., .. ' :
/SEC. 701. Dls/ricts and Por" of Eftlry Ther&Of. - For administrative purposes, the Philippines
shall be divided into as many collection districts as necessary, 1M respective limits of which may bE! changed
from time 10 time by the -Commissioner of Customs upon approval of the Secretary 0' Finance. The principel
ports of entry lor the respective collection districts be Manh, Manila lnternalional Ailport, Cebu, Iloilo,
Dallao, Tacloban, ZambOllnga, Cagayan de Oro, SUligilo, legaspi, 8atangas and San Fernando'"
702.' Power of the President to Open end CIooe Any Pan. '. The President may or close afay
port of entry upon recommendation of the Commlssio/ler and the SeCrttary of Finance While a port. of entrY is
closed, ils elClsfing personnel shall be rllassigned to other duties by the Commissioner SUbject to the approval 01
the Secretary Of Fina'nce. L
. -.
....sEC. 703 Assignnl!inl of ClIsroms OffIe/US Itlld EmployeGs /0 Other Dufitts, - The Comm;ssior'ler of
Customs, may, with the approval of It\<:! Secrstary of Finance. assign any employ" of ths 8ureau of Customs
to liny pOrt,' Si!MCe, division or offICe within the Bureau or assigll him duties illS the inlerest or the service
may require. In accordance with the staffing pattern ()( organlzational set-up as may be prescribed by the
Cammissionllf 01 Customs with the apprOl'al 01 the Secre{ary of Finance. Provided. Tnat sucll llIssignment sllall
nol alfec.llhe lenure or olhce or the employees nor result in Itle change of status, demotion in lilnk andfor
"eduction in nlary
/sec s.at 01 Coiedor 0( CUstoms.' In the office of the Collector of a collection district ltlefe wi
be Kepi. seal 01 such design as the Commiuioner shall prescribe, WIth the approval of the Secret,.. y or
Wllh whICh \holll b<! ali doeuments and 'ecords requiring aulhentic.ation in such office
/ .
SEC 705 Autholiy of Dttputy Cohcton of CuslOfm. - TIM! deputy collector al a pnncipal poI'\ of mry
may. if! tile name of the Dlstric:t Cglledar and subject to hl'!ii supervision aM control pErform any partlc<Jlar atl
whICh might be done bY' the Olstrid CoUl!etor himself; "t sUbports, a celledor may. III his own
e-7egeneral porrfo'l!rs 01 a collector, sUb,ect 10 the supervision and control of !he Conedor at lite subport
SEC. 706 AppOl(Jlmoffl 01 SpeciBJ D&pufiss WIlli Lmited POWf!1f,. Colledars may. wrIl'1 ttle appraval at
the Comminian.lf, appoint tram too, loroe Iud! number or Ipeaal depul_ ;IS maY' be neocesuly lor lhe
preper canduct'of ttle public busillesS, Wllh luthority to sllln 50th documents and perfom1 such as may
be s.peclhad in INII!Jn9
./
SEC. 707. of Deputy CoIectOf to Position of AdX1g COIfK:Irx. - In ttlfl absence Of disability of
ill Collector It Bny port Of in case af a vacancy In his office. the temporary discharge of hiS duties sha:1
upon the ca"ecl:or of tile part Wllere no deputy collector is available, an otlic.al IQ se"'<! ,n suet.
cQnlingency may be designated in Wliting by lhe Collector from his own lore.. The Collector mak.ong s"ctl
designation shall report the Slime without delay to the CommiStiioner and the Chairman. Commi,.siof'l on Acdil.
fOlWardong to them the signature of the person sa designated.
/'
SEC. 708. 01 OIfir;iaJ as Customs Inspector. - AI ill coastwise port where na cllsl(lms
or empl(lyee is regularl:f slati(lned. UW Commissioner rMy desjgnate Iny natiollaJ, p.ovinci3l (I(
otndal 01 the port 10 Ict as an inspec!Of 0' custorm. tor the purpose of enforCing the laws and regUlations ollhe.
Bvreau of CU'ltOtm in tile particUlar port; but all such de,;ign.lJons shall be mitde with the consent olthe proFel
Oepartmanf. head 01 the official 50 designated.
709 AufhOf"ily of CoIector to Remit DutIes. - A Collector shall have discretionary euthonty 10 remit
the assessment and collection of cuslDms t.xes llnd othe< charges when the aggfltgale amount 0: wdl
duties. tues and otMr is leSi than ten pesos. Ina he may dispense with Ih, INure 01 artides of
Ihan h.'n pesos in value exe.pt ill eases 01 pronibitt'd .mporta!Jons or the Mbmral or iotenllonlll violation of llIe
tauff and eusloms laws
or
SEC 710. Recon1s 10 be /fepJ byellSroms Ofr.cJals. OlStrict Collectors. deputy and
customs oll'\claJs acllllg in such eapacit.es itte reqUIred to kel!'jl true, correct and permallen/. records of ltIelr
"tflciallransadions. 10 sobrnit ttle ..arne to lhe inspection ot .ultlorized oflia,al$ at .Ulimes. aMi to rumo..e, all
records and offICial pipers to!tleir successors or oltlef .uthonzed
,/
SEC 711. Port R"9u1afJOrls. - A Collector may prescribe local admirwstrative ragUlation, not inconsistent
with law or the general bureau regUlations, lor the 1l01'e1nment gf his port or district. th. same be I!Neellvc
upon approval by the Commisaioner
/ SEC. 712 Roports of Caledor 10 CommiuiOflef. A Colrl!C1or shalJ immediately make repor1to lne
Commis..ioner concerning prospeclille or newly begun IItlgalion in his district touchin" matter5 relOlting to Ih@
customs service: and he shd, in such form and detail as sl'lall be required by the Commisshmer maKe reogular
monltlly reports of ailliansaetions in his port and distrid.

',' , ,TiTlE II. - COASTWISE TRADE

'" """".,/ "Coo",",. Tn.", . .. ""'" ,,'
pasili'igHs transported from one o. port in Ole Ptlllippines aJlOUl.r on!y """m Ol'lt' Of both of such
pIa<: IS a p of enlty
" ,
MiJ/llfftSl Reqlired Depsrlut'e Pori of &/fry." to departure Irom II port of entry.
ttle of. "'use! kensed for the eoastwiw tr1Ide shall milke out and $l,lbscribe duplicate manit'es!$ 01 the
whole ollhe eargo and all or eM taken on bawd 5UCh vessels, specifying in the cargo maoifesb the
IMID and nl,lrTlben cl th. port of dt'StlNltion and namu of tne consigllps, to{l!!ther with $\leh
lnfonnation IS mil)' be requ:red Md in the passenger manife$l$ the name, sa,. age, residMCe, port 01
and destination of a!l Fus-ngers, t09elher'lOith sucf1 bther Information as mil)' be requiled. He
s.hal deliver weh manifests 10 the CoNedcr of ClUotoms or oth.er customs officials duly authorized, bei'Git
whOm he sr..:. SWMI to the best Of N1 knoWledge Md belief,.1n resped: 10 ttle ca'll0"mani'fMa, thai the goods
thl!n!if\ descoDoed, if I'oteign. 'IWlfe '-slily .nd tt1a! Ihe duties, I.xes and other charges lhefeon have
been OJ 5ec:lJred to be paid, and with ,ftpect to IIHl passenger manifests,' that the intormrion theJelfl
contained is true and corred as to all take:! on boald. Thereupon, ltIe uld Co'leel:or at Customs 01
customs o1Ticial, shal certify the U1me on Ihe manit.sts, the originill of wflich he shall 'I!tum to the masll!1 with
, permit on board such vessel and '.uthorizing him '0 Pf.OCeed 10
portofdesti . . , , " '.' .."','. ' " , .'
SEC. iOe, anJfosl-ll Reqwed P(iOf /0 UnloadinQ fit Port of Entry. - Upon Irrlval II port of entry of
ves . t,ad. and prior to the unloading of aroy part of the uriO, the master shari
deliver to eCollector or other proper customs offielll oomplete manifesliiof "-"cargo Ind passenger5
'blOught illto said pon, tOglltn.er with tne clmUlee 0 Q..4J!.asgwgef'$ for Sllopo;;grMiit!(!' af'-"
any rt or po 01 entry 110m wtIich nid wne! may have cleared during the voyage,
V8Uel ot i1'e
requirta-to'-- en! tt\4I pfopef deta'ied manliest before departule'of the wuet: PnMded, !lowev, That lhe
Commiuloner of Customs m.y by regulation pernVt venel to depart coastwise trom a pon of entry upon the
tiling of. genera' menif61 by the master lnefeof.
, ,
TIn.E Ill. - VESSELS AND AJRCRAfTS IN FOREIGN TRADE
PART 1. _ENTRANCE AND ct.EA,RANCE OF VESSELS
'.
C 1001. s Open ttl V95seb Foeign Ttadlt. - DutyfJI V.uerro Male. EnIry
Mgag tn lhe forifgn trade shall tOUdl at port. of entry l)flly, except as otM/Wi$e .1t0'lWd; and fNef')'
such vesselalfiWlg within e CUltomS C4llection dl.trict 01 ttle Philppil'leS from a foreign port shall make enlry at
ttl. port ot elrtry for lluc:tl district and shall he ubject to tM autl'lority of the Collector of !tie port while within his
jurisclictiOll.
, ' .
: , ., ,. ' .....
"
Th. master of an)' WEIll vissel employ8d by "ny foreign governmenl shall not be requl/lld to report Ind
enter Or! arrivlll in the Philippines, unless engaged In ttle transportOltion of articles in the way 01 trade
., of Custom, Official OVll'r BoardinQ or 'Leaving of Inooming ... and ovar O!her
VElssllls ApprnachinQ the F01Tflar. _ Upon the ,rrival in port of any veuel engaged in foreign trade, it Shall b.
IJIllawful lor any petson (4lltcept Ih.e pilot, con,ul, quarantioe officials, customs officials or oth.r duly auUtprized
persons) 10 board or leave the vessel without 1M permission of the customs offici.! in ch.rg.; and it shan
likewise be unlaw/ul for any tugboat, rowboat or other craft to go along side <lind Ialo:e any person aboard such
vessel or take any person therelrom, except as .,'oresaid. or foiler neu or along side such ve:s...et.
UnOluthorizl!d tugboats, end other vl!SSI!ls sI'I.11 keep _IY from such vesnt engaged in trade al a
. di$lance of
_.. ... -"'-
SEC, 1003 Quarantine Cetiificele for Incoming Vassel. Entry 011 vessel from a fcreig" port or place
outside of the Philippines shall not be permitted u"til it has obt!lined a ql.l!lrlmtine certificate issued by the
Boreao 01 Quarantine
SEC, 1004. Documenls 10 be Produced Oy Master Up<Jn Erltry of Vessel. - For the pUfp0511 of maklr\9
entry 01 a vessel eni}ed in foreign trade, the master thereof shall present the kJllowing documents, duly
certified by him. to the customs officials:
3. 11'te original manilest 01 alf cargo for the port, to be returned with the iodofsemefll 01
the boardirlg ofl'icials,
b, Three copies of the same manifest, one of which. upon certification by the boarding official
to the corredl'less of the copy. shall be returned to the master:
c. A copy of the cargo storage plan:
d Two copies 01 store list:
e, One copy 01 passengar list:
I. One copy of the crew list;
g. The ofli1rhal of all through calgo manifests, t()( cleposit, while in port, .....ith cusloms official in
cllarge of the vessel:
h, A passenger manifest of all aliens, in conlormity with the requirements of the immigralion
laws in lorcil in the Philippines:
I. One copy 01 original duphtate.of biHs of lalling fully accomplished,
/. The shipping arlicles Ind register of the vessel of Philippine registf)'
'SEC, 100 snirest RM/ulrerJ of (rom Foreign Port - Ellery vessel from iI lOfeign pori must have
on boar , complete manifest of all her cargo,

. All 01 the cargo intended 10 b. landed at It port in the Philippines must tie described in separale manifesls
fOI each port of call therein. Each manifest shall inClude the pf departure and the with the
marks, ",umbel?, 01 the packages Ilnd" the consignees thereof, Every
ves$el- frcrm a f()(eign port must have 011 board complete manifasts of J'ass.engers and !:>MSa91, In the
presCl"ibed form. setting forth melr destioalion and all particulars require(lby\fle'ii111nlgration laws, Ind" every
such ...essel have preparedmOf llI'Itation to the proper customs official upon arrival in pons of the
Philippines a complete list of a then on board, If the ves!>el does not carry cargo or passengers,
the mani!ests must Show that nO. --- r passenger, as the CaSe may be, is carried from the port of departure
to the port of destmation in the Philippines.
A cargo manifest Shall in no case be changed or altered lIfter..entey except by means 01 an
arTl!.ndmanlj1Y.tbe, JUil$tel"amsignee or agent thereof, undero;j\lr, aild llttactiecl to the on!l'nal manifest
Provided hOWlWer Th"l-after the invoice and/or entry covering an imporhtion have been received and
recorded in tile office of the appraiser, no amendment 01 the manifest shall be aUowoo. excepl when it is
obvIOUS that a clefital efror or any ottler distrepancy has been committe<! in tile preparation of the manifest,
witt-out any {raud\Jlent intent, discovery 01 which would not have been made until after examination of the
-;,;;
""""'-SEC. 1000. Tr8llslalion of Manifest. .The cargo manilest and each copy thereof shall be accompanied
by alranstation into tne O"iciallanguage 01 the Philippines, 1I originalv written in another language.
.........- SEC, 1007. Manifests for on Audit snd Colleclor, - Papers /0 Oe DeposJf9d wn.h COrlsul.
1."11medialelr after the Ilflval of ;] vessel from a fOreign port, the master shaY clelilfer 01 mail to the Chairman,
CommiuiOn on Audit Manila, a copy 01 the cargo manifes1$ properly indorsed by the boarding officer. and the
maSler shall immediately prsenl to the Collector the original copy of tile cargo manifests property indorsed by
the boardmg OffiCer, ens., for inspection, the ship's Hlgister or other documents in lieu thereof, together With the
clearance and other papers granted to the vessel ill the port 01 departure lor the Philippines.
/SEC. 1008 Transit Cargo. _When transit cargo from a f()(eign port or other local ports is lorwarded frorr:
the port of importation separate manilest, in triplicate, shall be presented by each carrier,
SEC: 1009 Clearance of Foreign Vessa/s To and From Coastwise Ports. Passengers or articles
arrMng a oad upon a toreign vessel maybe carried by the $arne vessel Wough any port oll!ntry to the
port of destination in the Philippines or articles intended for export may be carried in a foreign vessel through a
Philippine port.
...
Upon suCh reasonable condition as he may Impose, the Commiuioner may clear foreign vessels lor any
PQrt and lIIlIthorize the conveyance therein 01 either articles or passengers broughl Irom abroad upon such
vessels; Ilf'Id he may likeWise, upon such conditions as he may impose, vessel to take cargo and
passeflgers at any port and COovey the same, upoJ1 $lICh vesset to a port .
. I
$EC. 1010.' Requirem&nt as to DeWlJi)' 01 Mail. A lIesse! arriving wllhin a collElctlon dlsillct in the
Phihppirl!S shall riot be permitted 10 make entry or break bulk until it is made 10 i1pp63l, to the sati$faction of
Ihe corlector, that the- master, consignee or agent of the vessel is ready to deliver 10 the postmaster 01 too
rlearest post office ill! mail matter 011 board such vesset llfId lor that port. COIIectOfS are aUlhor;zed 10
examine end search lIessels for mail carri,.a contrary to law.
/SEC. 1011, ProducliOll (;Tew. master of a Philippine ilbroad Shall
produce the entire crew listed in the ve!!>eTs shil)ping articles; and il any member be missing, the master shall
produce proof satisfactory fo that such member has died, absconded, has been forcibly impressed
into other service, or has been discharged; lind in case of discharge in a foreign country, he shall produce a
certificate from the consul, Wce-conwl or consular agent of the PhilippilleS there residing, sho.....lllg that sllch
discharge was eHected with the consent of the representative of the Philippines aforesaid.
/ ... .. . ....
SEC. 1012. Record of Amva! and Entry of Vessel". A record shall be mlde and kept to pUb}lc
mspectiofl in every customhouse of lhe dale 01 arlival and entry 0' ell vessels:
'1013, Arrosf of V9ssel Departing BiJfora Entry Mad8. When a ..:essel arriving wilhin the limits of a
colleclion dJ$trict from a foreigll port departs 01" altemph to depart before entry shall have been made, not be-ing
thereunto compelled by stress of weather, duress of enemies, or olher necessity;the Collector of the port or the
commandei :01 any revenue cutllH" may arfest and bring back such ves!>el to the most conwmlent port.
"., ')'.'
SEC'Ot4. Discharge of Baltas/. - When not brou\lM to port as article, ballast of no commercial value
may be discharge<! Uporl permit graflted by the CoUecl:or for such purpose...
SEC. 1015. Time of Unladirlg Cargo. Micles brought if! a vessel from a foreIgn port shall be unladen
only during regular working hours on regular work days. Unlading at any other time or dily may only be dOlle
upon authority Of the Collector c:miditioned on lf1e paym9flt of losses and overtime pay by the interested
parties,' ' , .
, , ,', '," ,. .
SEC.' 10'16. ranee 01 VeM6I throUgh Necflssity. _When a vessel from a foreign port tS compelled by
stress wea er' or other flecesSity 10 put info any other port than that of her destination, the milster within
he.- ,,,ivai, shall make prote!>t under oalh selling lortl'l the causes Dr circumstances of
such flecessity. This protest. if not made before the Collector, must be produced to hIm, and a copy thereof
IOOged with him.
Within the ':fame time, the master shall make II report to Ihe Colfeelof if lOy part or the cargo was uniaden
from necessity or lost by casualty before arrival, Blld such lact should be made to appeer by sufficient proof to
the Collector wtlo shall give his approval thereto and the unlading Shall be deemed to have been lawfully
effected." .' , .. ' ...
nlading r:f in Putt from Necessiry. If the situation is such as to require thaunfading
of pendil'lg sojour' in port, the Colteclot" shall, upon suffidlMlt proof 01 the neoo!>sity, grant a perm"
therefor, afld the articles Shall 'be unledefl and stored under the supervision ofti'll! customs authorities
. At tlie request: of the master of the vessel or 01 the owner tnereof, the Collector may grant permission to
enter ami pay Ihe duties, taxes and other charges 011, and dispose 01, such a part of the talgo as may be of
perlsh<lble nalt.Jre or as may be ne<:;essary to defray ttle expenses <lttendlng the vessel.
Upon departure, the oilrgo, or a residLle thereof, may be reladen on board the vessel, and Ih*! may
proceed with the same to her destination, subject only to the charge for storing and safe-keeping of the articles
and the fees for entraoce and clearaoce.
No port charges shall be collected on vessels entering through stress of weather or other causes above
described
SEC 1018 Entry and Clearance of Vessels of e FO{elgn Government. - The entry and c1e<l'ance of
transport or supply ship of a foreign go",ernmO'mt shall be in accordance with the agreement by and between
Ph,lippines and the foreign government.
SEC 1019. Clearance of Vessel for Frxeign Port. - Before a cleilrilnce shall be grilnted to any ",essel
bound to a foreign port, the master. or lhe agent thereof, Shall present to the Collector the following properly
authenticated documents'
a A bill of health from the quarantine official or official of the public heaith service in the port
b of the manifest of export cargo, one of which, upon certificiltion by the customs
official as. to the correctness of the copy, shall bl! returned to the master.
c Two copies of the passenger list, showing alian and other passengers
d, The register and shipping articles, if the lIessel is of Philippine registry,
e The consular certificate of entry, if the ",essel is 01 foreign registry, when required
I A certifICale of Ihe Bureau of Posts to Ihe effect tIlat it receilled timely notice of the sailing 01
the Vessel: Prollided, That the Collector shall flot permit vess.ello sall for a foreign porI
if the master or agent thereof refuses to receille bags of mail delivered to Ihe same by the
Bureau of Posts for transportation for a reasoflable compensation. Jfl c"se Ihe D,retlor of
Posts and said master or "gent do not come to an agreement concerning the amount ollhe
compensation to be paid for the carriage of the maW, the matter shall be sUbmifled for
decision to 8 Board of Refereei-' composed or three members appointed, respectively, by the
Bureau of Posts, the of the company to Which the lIesset concemed belongs, and Ihe
/..<,", of Customs, 1hich board shall fix a reasonable rate of compensation
102 De/enlion or Warlike Vessel Containing Arms and Munitions - Collectors shall detain any
merciaI reg*:otry manifestly buill for warlike purposes and about to depart from the Philippines 'oI'I!th
a cargo consisting prinCipally of arms and munitions ofwar, l'I'hen the number of men shipped on board or
other circumstances render it probable that such lIessel is intended to be by the owner or owners to
crUise or commit hostilities upon the subjects, citizens, or of any foreign prince or state, 01 01 any
colony, district, or people with whom fhe Philippines is at peace, unlil the decision of the of the
Philippines be had thereon, or until the owner or owners shall give bond a' security, in double the lIalue of the
"nll cargo, that she win nol be so employed, if in the discrelion of the Colledor such bond will P'e'Yent
the ",iolalion 01 the provisions of this section
SEC 1021 Manifest of Export Cargo fa be Delivered 10 Chairman, Commission on Audit. - The master
shall, prior to departure, deliver or mail to the Chairman, Commissior'l on Audit, Manila, Ihe returned copy of the
manilest of export cargo.
SEC. 1022 Oath of Master of Departing Vessel. - The master of such departing vessel shall state under
oath to the effect'

a That .all cargo conlleyed on said lIessel, with destination to the Philippines. has been duly
dischargsd or accounted for
b. That he has mailed or delillered to the Chilirman, Commrss.ion on AUdrt a true copy of the
outgoing cargo mar'lilest.
c That he has not recei",ed and will not conlley any letters or packets not enclosed in properly
stamped en",elore sufficient to covor postage, except those relating to the lIessel, lind thilt he
has deli",ered ilt the proper foreign port all molils placed on board his ",essel belore her last
clearance from Ihe Philippines.
1, Name or owner or operator of aircraft, registration marks and nationality of aircraft. and
ftight number of idi!IltJfication:
2 Poinl 01 clearance, data thereof and destination:
3. Health and customs clearance;
". Itine'ary of aircraft, induding information as 10 airport of destination and departure date.
5. Names and nationality of crew mambeJs,
6. Pilssenger rnanife.-.t sllowiflg place 01 destination:
7. Export cargo showing inlormatioo as (0 airwaybm numbllr, the number or
package", related to each airwaybill na(Ufe of goods. destination, and g,oss
weight. together with a copy of each airwaybill securely attached thereto: and
6, Store fist showing stones laden
SEC " 12, Oath of Person ii' Charge of Departing AIrcraft. - The- pilotin-comrmInQ or aUlhoriled agef't
of such dep3rr'"g ailcraft shall also state u1der oath to the effect thaI:
a. All cargo comreyed on said aircraft destined 10 the has. been dUly discharged or
lIccounled lor.
b He has mailed or delivered to Commission on Audit a bue copy of the ournard general
declsration.
c. He has 1'101 received nOf will CO{lvey any letter, or packet not 1111(>losOO in properly stamped
envelope sufficiellllo cover pO'$tage, except t!lose relating to the ca'90 01 the .ircraft, lind that
he has delivered to The proper foreign port all matlS placed 00 board said Iloircralt before its
lasl clelilrance Irom tMe Philippines.
d If clelilring without pliissengers, the aircral'l: 1'<i11 I10t carry upon depllrlure !lny passenger.
A reco'd shall be malle lind kept open 10 public insptction in every customhouse at tift airport of entry of
tne 031es of affiv81 and entry of atl aircntts,
TITLE COLLECTION AND
RECOVERY Of IMPORT DUTY
PART 1. -IMPORTATION IN GENERAL
.. .
S C 12(11 ./0.be Imporl&d qnJy - Ali articles imported irlto Ihe Philippines
C 1202. lMIen Imporlalion &gins and Deemed Terminated. - Importation begins wilen the o;arrylng
, vessel Of alrGi"aft jurisdiction of the Philipplnes with intention 10 unlade therein. Importallon is
deemed payment Dltfle Wlle& and other diwe;-1hie' 10 be
paid. at a par! of .entry a(ld the legal permit for withdrawal shilll been granted or\j Cl;Ise sl\ld alt'cles Ille
free of dutiu. taxes .;i rid other charges, urltil they hSl/e legaUV left tne jurisdiction of customs.
lZP'J Owner of Importer! Arlicln - All articles Imported into the Philippines be helo to be Ihe
p,operty 01 Ihe person 10 whom tht same are cOl1signed: and the holder of II bill of lading duly indorsed by Ihe
consignee the,ein named. 01, if consigned '10 order, by lhe consilloor. shilll be deemed the consignee Ihf!.reol.
The undefwl"!lers of aban!toned articles and the salVor:o of articlts sailed from wreck at sea. along a coast or in
may be regarded as the consignees.
Uabi/lW of ImportfN lor Dulies. - refieY$d by or regulttio,n;s, Ihe liability for duhas,
taxes, fees and charges attaching onimportalioo cOf\tolituteto a Rt!. I dudrom Ih9 importer to Ih"
government which can be discharged only by payment in l'\lb of all duties. talles, lees and other charges legally
accruing It also constitute;'11 Jierdipon the articles imported wtlich may be enforced whi!(l sue!' artide5. are in
custody or subject!O it;" arine government. I
1205. Imporrarir:m5 by Ihe Governmenl. - Exteptrhose for in Section One hundred and nile
of thi, Cadi. aU Importations by the governmll!nt for its aWTl use or that of It, subordmate bran:::hn or
i!1st'umen1alil;es. or corporations. agencies or ,"Jlrumentaliues awned or controlled by the governmenl, shall
subject its. talltS. lees and other chargel providect for in IN$ code.
EC 1205. urisdictioll of 0W'f'" ImporfMioll of Mld9s - The Collector shalt cauSoe all ii1l11cte1;
enlerlng ttl JUflsdlclJon of his distflct and desllned lor importatlon through hiS port 10 be entered al the
eustomhoo..rse. sh,ll CllUSOi! II such articles to be IpprliSltd lind cl.assi"'ed. end shill nsess and collect the
r1dG'"ei>-;ii'lfItS and OIher charges thereon, ilnd Sohal! !>old poneu.iI)n of all Imported articles IIpon v.hich
talfes. and other tt1arges hiil... not been paid o. secured 10 be paid. disposing 01 the salm! "ccmd,"g to law.
. . ---
1207 Jumdrc:tloil of Cc:'eclOl'" OV9r 0( ImperlaliM - Whe/e "rticle$ are oJ
prohibited wnportaliof> or subject to importat'Otl only upoI'l condibons pt"esaibed by l.J.v. II. shll be U-e duly 01
tne Collector to exerClSl! such jurrsdiction in respec:l thereto a'S WI. prevent Imporllhon or othelWlW> $ecu!e
compllince with arllellal requirements.
Disposifjon oIlmporfed Alt.des Remlliw7g on Vessel AAfJI Tim! for UnI<Jdiqg Impor.ec
,
arllcles rcma,nmll on board any vessel aller Ihe ollhe said peuod tor dIscharge and nol reponed fJ'
t'ansshlpment 10 111011'1. port. may be unladen by the CUSloms authorities and storltd at the \l'C'5sel's
UnlesS prevented by causes beyond the .....SII!"S control. such <IS port Wlkes. or
cOnlmot:ons. fallufes 01 vessers gear. bad weather. and slmih.lf ceu"...., article,.; so slored sha:1 bil "nrp',ed
within thirty (30) days, which Shall not be eKterldible, from Ihe date of discharge 01 the I,ut packagc Irom the
vessel or <Iircratl and shall be claimed within lifteen (15) days, which sh<lll I'lOt likewise be Illflendible Irom '''e
date of posling 01 Ihe 10 claim in consprcuous pIeces in the Bureau 01 CusIOm,.. II nol entered or not
c1a,med. it shall be disposed of In accordance with Ihe proviSions of lhls Code 7651, June- 04. 199Ji
../s'EC. 1211 Hiilnd/lng of Mieles on "'*" DIlly Has Nol Paid. ElfCIlp! when dO!lB under C\l$IomS
supervision. atl unlading or transhipment of the Cllffi/O 01 wsSftb from forejgn ports. which do not discharge 81 a
Wl'latf, musl be by bonded lighters; and likewisl!". on land fnported goods OIl wI\idl dl.ll)" hIS not been pitl;:! <,ha,1
be carried about and han(lled by bol'lded draylTlen 01 Cllrtmen only
PART 2. ENTRY AT CUSTOMHOUSE
o p"""" " , .... '"PO<! /mp'rt" m"" " .".", " ",.
al the port of entry vwithin ttwrtyd1'L@"lo shall not bl!" extendible. 'rom lhe date 01
01 the 11011 pacl\age tIOm the vessel ()( aifcrall by the ,mport.r be;r>g holder Of Ihe
ladlnsWbl'tly 1 cusloms all1bonl.:; 4affl II III Ibe brI! or@:; a
duly en'!po'="!l'ed 10 act 1m rw rich t'dder: Provided. TlU!' where the Bf'IIJ)' is 6iW by T""
Pirty other than the importer. said Importer sh,n himlltl1 be lequired to decla,. UIlcler oath and uno",) the
oer.at:les of lalslflc;alron or perjury th..1 the declarations and statemenls conlaJl'led In the entry are mle lind
couect: P'ovided. !vftl'1er, That such stalf!fTIl!Ots uMer Oltl'l shall conslitute prima facie 01 kfl.O'\\lle1Jge
and c.onsenl 01 the Importer of violalion against app1lcilbl. prpvislOrls 01 this Code v.t\etl the import<lhOl"l IS
found to hi! unlawful (R A. ?65!LJ:#,fle W90..l.)
-All imported articles, importations admitted Iree of dUly under sub-
ser::tlon1(:;seCt;on one hundred and livl!" 01 this Coda, shall be 5ubjI!"'Ct to a lormal or informal entry. 01
a commercia! nalUle intended /Q{ sale. barter or hire. Ihe dutieble value of which is two thousand pnos
(P2,OOO.OD) a! 8M persorlill erlel ho","hold effects or articles, not jn commerCial quantity, imported In
paslllng&t's baggage. or otherwise, for persollai lise, shall be cleared on an Inf6rmal entry whlnever auly.
tax or other charges ale collectible.
The Commissioner may. upon ;nslflJcliOn of the S8Q'"etary of Finance for the proleet,on 01 dOfT".utic
industry 01 ollhe revenue. rl!'quire a fOl'mal etll'V. regardless of value. whatever be &.e purpose and rlature of
the importalion.
A formalenllY may be for immedl3te or und.... iTTevoc.. ble .... of
guar",nlee or bone
or pl"otest, be final Ml! conclusille upo'! all parties, unless the liquidation 01 the Import entry was merely
tentatiVe.
SEC. 1604. rreatnwrn of Fraelrons in the Liquidation. - In determlflillglM tola! amount 01 dulles. laxes.
surehafges, and/or other charges 10 be pail! on entries, a fraction a peso less than fifty centallOj shall be
oisfegalded, and a fraclion of a peso amounting to fifty centallOs or more shall be considered as one PEso. In
ease 01 ollerpayment or underpa}'mellt of dUlies, tal<&$ surcharges andlor other chlrges paid on entries, where
the ilrt"lO'lnt involved is less than ten pesos, no relund or collection shaU be made.
SEC. 110 Aba/em9llt or Refund 01 Dvties ()(J Arlicles tost or Dasiroyad artlH" Arrival. A conector may
abate or re und the itmouro! of diJties accruing or paid, and msy likewis"e make a correspondin!il allowance on
the irrevoCable'domeslic letter of credit, bank guarantee: or the entry bond or Qthe"r document, upon satisfactory
proal of iniury,destrLietion, or loss by theft. fire or other causes of any article IS follows:'
. . ,. . . .
a 'While within the limits 'Qf any port of etltr)' prior 10 unlading under customs supervisions:
b ' Whil! remaini
ll
l1 in customs eustod}' a.fter unlading: '
e 'While (n transit uncler Irrevocable domestic letter of credit, bank guarantee or bond With formal entry in
eccordance wltll section one Ihousand three hundred two from the port of 10 any pon in the
Philippines. .
d. While released under irrevocable domestic letter of credit, bank guarantee or bond fQI export except "or
case of loss by lheft.
of Duty on _ it is certified, under penalhes 01
falsific'auoi'lorperjury and upon production of proal satisfactory to (he Collector that 811 anif1'1al which is tile
subject of impor1ation dies or suffers injury before anival, or while in customs Cl.lstody, til! dUll' slla!1 be
c<lfrespondirigly abated by him, provided the carcass of any oead animal remaining on board or in customs
custody be rOVe<! in the manner required by the Collector aM at Ihe e.o:pense offhe impmtw
1706 !nY,s/iqatioo Required iQ ",PEA of AllpWments And Refunds, The Collector shall. in ali c"ses
of al owa . ab"tements, or refunds of duties, cause en el<amination and report 111 writing 10 be made itS to
.IlY fact discoveiiXl during SuCD e:xamination Which lencis to account fa, the discrepancy Of diffe'ence- and
cause lhe correfipondiog to be made on the import et'ltry' Provided, That no abatement or refund 01
dulie$, talles al'"j other charges shall be allowed on articles lost or de$lroyed in bond9d public Qr p'lVsle
Wal'ehOllS tSlcie customs zone
SEC. 1707. or E!Tors.- Refund of Excess Payments. - Manifests clerical errors made io an
in 01 e or en ry. elTors in return of weight, measure and gauge, when dUly tertm.d to, under of
f3lsifitation Of perjury, by the sUNeyor or examining official (!tIen there il1'e such officials at the port), and
errorr. in the distribUtion of chaiges on Jnvoice$ Jlot involVing any quer.tion or law end certified to, under
p!nallies or falsiflcal10n or perjury. by the examining official, may be corrected in the computation of duties, if
such errors be discollereo before the payments of duties, or if discovered within one year after the li!'ill
liqUIdatiOn, upon written tequest and notice of error from the importer, 0( upon staternanl of erlor certified by
the C..,nector. . ... .
,
For Ihe purpose of correcting errors specifIed in the next preceding Ihe Collector is authorlZlld
to $ntries and coliect "ddi!ional charges. or to make refunds on statements of error wlthm the
statulory time limit
17Q;) C . fOf RefUlld of Duties nd Taxes and Mode of Payme . All claims for refund of duties
Sh'in be made in I 1/1 an orwardett 10 Ihe Collector to whom sue: u ies are paid, who upon receipt of such
claim, shiln ame by the records of his Office, and if round to be correct and II'l accorllance law,
certil) Iha same 10 the Commissioner with his recommendation together With necessary papers and
docunWflts. Upon receipt by tile Commissioner of such certified claim he Shill cause Ihe same to be paid if
10l'nd correct ..
If a result of the refund of customs duties there would neceuarily result a correspom1ing refund of Internal
revenue taxes on Ihe same importatioo, the Collector shall likewise certify the same to the Commissioner whO
shal! cause the said excess taxes to be paid, refunded, or lax credited in favor of the importer, with to the
Commio;sioner of Internal ReYerllJe.
PART 7. ABANDONMENT OF IMPORTED ARTICLES
f{.f tNt4
1
180t, Abandonment, Kinds and Effect! of. - An imported artide >s deemed abarldoned undel
or the following circum",lances:
..t-
a When the q:,llQer, ifO,p.ll!ter, consignee of the imported article expressly signifieS in vtrill!J..9 to the
Collector of Customs his. intention to abar'ldon, or ./
b, When the consignee or inlele",ted party Mterl*: f.tds til 'ii' Be eorry W!!.hJ!1
daj,\.S, ljlotl shall pot be edendlble, from the date the last package from the
vessel or aircra QylhavIIl9 fIled such entry. faits tQ claim his importation within
which shall' , from Ihe qalg pI posting ollbt nolia' 10 claim Such ,ml'0rtllllOn
Any pef$on wha.abanrfpPf an fails 10 cl!im his importatiol'l as provided for in the precedmg
paragraph shall be deemed to have renounced 811nls Interests and property rights therein (R A, 7651, June 04,
1(;193),
/ -sEC. 1802. AbandocmSnf of Imporled - An abandoned article shall ipso facto be deemed Itle
property of Ihe Govelflment aM shall be di5pO$e<I of in accordance with the PIOV;sions ot Ihis Code.
/Nothing in this sections Shall be construed as relieving the owner ,H importcr from any criminal iiabliity
whoch may arise from any vioration of law commrtted in connection with the importalign tM! abandoned
IIrtic
l
e
ofliclal 01 :mPloyet!; of the Bureau otherJoverl'lmenl who,
of tt'le el<istence ()f an onl(ol or 01 such abandoned <lrucl..-rails
to to thl! C()ller.tor Within !Vient\' fpllr (?4J h;'1D" fronl the time thp Jrfir'e 15 aeeil"o1 aMpdongd, shall be
punish<'!d with the penalties prcscribed in Paragraph 1, Secfloii :!604 of this Code [R,A 7651, June 04, 1993),
/"SEC 1803. Rep",ai ..<1 by B" June 04, 1993
TITLE V. - WAREHOUSING OF IMPORTED ARTICLES
PART 1. _WAREHOUSING IN GENERAL
SEC Est3bkshmf3r>1 and Supervision of Warehouses - When Ihe business of the port rlKluitl'lS
facilities, the Collector iubjed to the approval of the Commissioner shall deSignate and establish
war"houses for use as public and pnvate bonded warehou",es, sheds or yards, or for other special purpo;es
All :llIch warehouses and pt<'!m",es shalt be subject to the supervi:<ion of the Collector, who ",hall
such conditions II!\. maV be deemed necessary 101 Ihe prolect;on 01 the level\Ue and ul the articles sture<!
thereIn
SEC 1()(J2, Responsibr!rr:; 0' Ope,.:ttors, . The ope,ators of bonded i1 los" cf ti,e
Importcd 0l11icles stored slJali be iiabie lor the payment of duties and due tt\4treon
carrying oullhl provisions of this section shall he prescribed by (he Commissioner with the OIpproval of the
Department head: ArId Provided, finally, That the several cllarge$ llgainst tile bond 01 any smelting warehouse
established ,under the pro"isions III this section may be cancelled UpOrl tile exportation or trarlsfer to a bonded
manufacturing warehouse from any other bonded smelting W'8rehouSe established under this section 01 e
quantity of the same kind of metal, in excess of that covered by open bonds, equal to the amount 01 metal
producible tram lne. slTMllting or refining. or both of Ihe duliable metal eonta;ned in the importe<l ores or <:rude
metals, due alloWanci't baing made 01 Ihe smeler wastage as IScertained Irom time to time by the
Commissioner with the approval of the department head.
PART 3, TRANSPORTATION IN BOND
SEC, 2101. Enlry for Immediate - Articles entered lor constructive wllrehous,"g -and
immediate transportation under transit manilest 10 other perls ef the without appraisement may be
lransported under irrevocable domestic letter,of credit, bank guarantee Of bllnd, upon proper e:xamination aM
consigned 10 tM Collector at Ihe port of crestination, who will allow flntry 10 be made at his port by the
consignee.
Articles (ecti"ed et any port from enother port of the Philippines on an entry lor imrpediale transportation
milY be entered It the port of delivery eilher lor consumption or wilrehousing. \
SEC 2102, Bonding of Carrier Transporting Atticlas Under Ille Proceeding Section. A garrier engaged in
conveying imported erticles under the proceeding seclion from a port 01 importation to other ports 5hall give
Se<;l,Jrity in thE nilture of J general transportation bond, in II sum nelles-s than ten thousand Pesos (i=l10.000)
cooditioned that tile carrier shall transport and deliver wilholJt delay. and In accordane with law and
regulations. to the Collector at the port or deslinetion all erticles delivered to touch carrier and thai an proper
charges ;800 expenses jn.curred by the customs authorities ()( al their illstance by. reason of such
transshipments shall be duly paid.
SEC, 2103, Attic/ell; Entsrad for Immediate Exportatirm, Where an inter1t to export thi articleS is shewn
by the bi" of lao'ing, In,,oice, manifest, or other satisfactory evidence, the whole or a part 01 il bill (not less than
one package) may be entered for immediate exportation uncler bono', ThlfColiector shall designate the "essel
or aircraft in which the articles lire laden constructivel\, as a warehouII;8 to facilitilte the direct transfer of the
articles to the exporting vessel or aircralt.
Unklss it sl\aU appear by the bill of lading. invoice, ImInife$l, or other salisfactol)' evidence. thaI articles
, arriving in the Philippines are destmed for transshipment, no expoltabon thereof will be plfmitled extept under
enlry lor immediate exponation under irrevocable domestie letter of credit, bank guaranty or bOnd in an amount
equal to the ascertilined duties. taxes IInci other charges..."
Upon the el(,Portation of the arlicles, and the production of prool of landing of same beyond the 01
the Ptlilippines, the irre"ocilbJe domestic letter 01 bank guaranty or bond shall be released,
TiTlE VI. - ADMINISTRATIVE AND JUDICIAL PROCEEDINGS
PART 1. - SEARCH. SEIZURE AND ARREST
IX Obstruction of Customs Promis,s. - No person other than those with legitimate
busllles,; With, or employees ot, the"ort or the Bureau of Customs shall be allowed to enter the cusloms
premises without a written permission of Ihe Collector. No person shall obslrud a customhouse, warehouse.
office, wharf, street or other premises under the control of the Bureau of Customs. or in any el thlllllpproaches
to Illat house or premise$. ..
s..rve.!ance for of Cusloms R&WIlue lJfId Prevenfion of SnruggIing. - In
order to prevlt smuggling alld 10 secure the coMedion 01 the legal duties, taxes and other charges. Ihe
customs service exercise surveill&nce o"er the coast, beginning When a vessel or airera\'! enters Philippine
territory arld cOf'IClUding when the article imported therein has been legally passeo' through Ih! customllouse
Pro"ided. Thallhe function or the Philippine Coast Guard 10 prevent Ilnd suppress iliegal entry. smuljgling and
other customs frauds and violatioM of the maritime law and its proper surveillance of vessels enll!ring ilnd/o'
lea\l;r,g the Philippine territory as provided in seelio'l 3 (a) of Republic Act Numbered Fiftyone hundred
Se'Jenty :hree shall continue to be in lorce and effect.
Persons having Poke AUfho'lly. For enforcement 01 the tariff and customs laws, the
are authorized to effect seizuru and arrests conformably with the provision of saic
lavtS. _.
iI. the deEuty .collectors, police otlicers, ilIgents,
ir,speclors and guards ollhe 8ur,au of Customs.; . -
b OfflCi!ri cillh!! Phillpplne-Na-..y and other members of the Armed Forces of the Philippil\es and nallooal
enfbrcemenl by the Commissicner: '
c. Ollidals' of the Bureau ollri1ernal.Reo.ll; on all ("ases falling within the regular perlo;mance of their
dulles, when the revenuelaxes are irwclved:
d. O!ftcers generally empow!led by law to effect arrests lind execute processes of courts, when eeling
under the direction of the Collector.
In order 10 al/oid connicts, and insure coordmalion among these persons hal/ing aUlhori1y to effecl
sea'ehE'$, '3l'.d Ilrests lor Ihe effective enforcement of, and conio(mably with tanh' and customs laws
the Secre'.>uy of Finance, shall, subject 10 the approval 01 the President of the PhIlippines, def,ne the scope,
areas clNered, procedures and condilions gOl/erning the exercise of such police authority including cIJstody and
responsibIlity lor the goods seized The rules and regulations to Ihis effect shall De furnIshed 10 aU the
Qov""""f"lent agencies aM personnel concerned for theil guidaoce and compliance. ar:d Shall bf' published in a
newspaper of general circulation,
22iY Place Wileffl Authority May be &erc#;8d. - AP persons conferred with the powers In the
prl1ce ;:sedion may exercise the same at any place wIlhin lhe juriscliction of the Bureau of Customs
ExerCi$e of Power of Seizure and Arres/. It shit" be withIn the pt)Wer of a c\lslQms official or
perso orlled as aforesaid, and it shall be his dUly, to make seizure of aily art",le,
amwal or when the same is subj&c1 to forfeiture or tiBbie for any linr-imposed under
tariff :lind customs rules and regulations, suc!l power to be exercised in conformity with tt>e law aM Ih!"
provisions of this COde: PrOl/ided, That the powers of the Fisheries Commission to mal(e arresti, searches and
seizures as provided in section lour paragraphs .g" and'r of Republic Act NlJmbered Thirty-five hUMled and
twelve. a'ld the Philippine Coast Guard I,mder Republic Act Numbered Fitly-one hundled and seventy-three
shall conlinue to be in force and effect
2;;) Duty 01 OfrICel <N OftjejM 10 Disclose Off!Cid Ch8fader. - h Shall be Ihe dUly of any person
exercising aulhority as aforesaId, upon being questioned al the lime of the exercise thereof, to make knclwn hIS
official character as an officer or official of the Government. and if his iUlhority is derived from special
i!L1horization ir writing to exhibit trle same for inspection, if demanded.
2207 fo Requife Ass/stance. Ally pelson exercising authority under the
and t,lIIff laws may demal'd assist3nCe of any police offlCt'l" when such assistance shall be 10 effect
seal"(;h, seizure or arrest which may be lawfUlly made or attempted by him. It shall be the duly Of a"y
politI! oF-,cer up!)n whom such requisition is made to give suCh lawful assistance in the mltter as may b..
required.
SEC 2208. ighl of Polfe. Dfficer to Enler Inclosure. - For the more effective dischalge (,If his offiCIal
duties, any rson exercising the powers herein conterred, may at anytime enler, pass through, or search aoy
land or Inclosure or any warehouse, store or other building, not being a dweWng house
A warehouse, Mo:e or other building or inclOS\Ke used for !he keepiog or storage of articles dOes not
become a dwelling house withlll the meaning hereof merely by reason or the fact that a perSOIl employed as
watchman lives in Ihe place, norWllllhe fact Ihat his family sta,'s there with him alter lh. case,
of Dwe/ling HOUS8. _ A dwelling house may be entered and searChed OI'\ly upon
war'ilnt Issued by a Judge or the Court or such other responsible officers as may be authorized by law upon
sworn applicstian sha..... ing probable cause and particularly describing lhe place to be searched and person or
thing to be seized,
QEC. to Search or and Persons or ArricMs Con... Therm. - II 5h<I1I ,M
lalOI offiCial Dr person exercising police authority under provlioions of tnis Code to go aboard any
vesioel or aircraft the limits of any l;:ollectian district, ilnd to inspect, search ilr'ld examine said vessel or
aircraft and any lIunk, pacilage, box 01 envelope on board, and to search any person on bo'lfd the said vessel
or aircra1t if under way, 10 lise ai' necessary 100C/! to compel compNance: and if it &h811 lippea>' Ihal any brMch
or violation of Ihe customs and tariff laws 01 the Philippines has been committed, or in of
which such vessels or aircrafts, or the article, or any part thereof, on board of or imported such vessel or
aircraft., ;5 liable to forfeiture 10 make seizure of the same or any part theleof.
The power of search hereinabove given, shall extend to' the removal of any false bottom, partition
bulkhead or. other Clbstlucllon, 50 far as may b!l necessary to enable the officer to dISCClVe!" wtlether any dutiable
Ot, Iorleitable artiCles may be concealed therein.
No proceeding hereirl shall give rise to any claim for the .:lamage caused to article or vessa', 0'
aircraft,
Ri<Jht 10 sea;ch Veflkfes, Beasts and - It stlall also be la'wlul I'lf a pel'$1ln
authorl y as aforesaid 10 open and examine any box, trunk, envelope or other container, wherever 10uOO When
he has feasonable cause to suspect Ine presence ttje.-ein of clJtiabie or prohibited a]'ticle 01 article iniroduced
into the Philippif'les contrary 10 law, and likewise to stop, $earch and examme any vehicle, beast or person
reasonebly suspected of holding or conveying suctl article as sfore-silid
%: 2;;> $flarch of Pe:.sons From Foreign -All persons coming the
countries st,art be liable to detention and sean;h by !he cus.toms 8uthofi:ies tlflder such regulations
as may be prescribed rel3tive thereto., ' ..
"
Female Inspectors milt be employed for the examination Ind search of persons of their own sex,
PART 2,. ADMINISTRATIVe PROCEEOINGS

EC. 2 . Warrant (or Detet>lion of Prop6lfy_Cash Bond. _Upon making any seizule, the C"llector shall
the deteotion of 1M Ind il the OWrler or importer desires to secure the of
the p legitlmale' I,/se, lhe Collector shen, with the approval of the Commissioner, of Customs,
suneridefil iJpon the filjng'of a dsh bond. In art amount to be fixed by him. condilioned upon lhE paymenl of
the appraised value of lhe a"ide andlor any and COS1$ Which m3Y be adjudged," Ihe case:
Provided, That such impartation not be released urtder any bond when there is a prima facie evidence of
fraud'm the nnportalion althe a"iclc: Provided, further, That articles the impartation of which is prohibited by
law shaU not be released under 80)' circumstance whomsoever, Provided; finaHy, Th8t nothing In this sectiOll
sh.all be construed as relieving the owner or importer tmm any criminal liabi'lly which may "rise from any
violation of 13Wcommitted il'l connection with the Importation of the i1rticle (RA 7651, June 04, 1iilS3)
Report of Seizure 10 Commissioner and Chairman, Com.''1lission ton Audit. - When a seizule is
made for any calise, Ihe CoRe<:tor 01 the district wtlerein ttle seizures is effecled shaR immedi3te'r m3ke reporr
thereof 10 the Commissioner Ind Chairman of the Commission on Audit.
SEC. 2303 '(;calion Ito OWiler 01 Importer. - The Collector shall give lhe owner or Importer of tne
Dr his agenl a wntten notice of the seizure and shall give him an OP?ortunity to be heard in reference 10
the delinquency which was ttll;- of such seizure.
for lhe purpose of gMrtg' such noltee atld of all' othe-r proceedings 'In the matter of such seizure, the
importer, consignee or person,holditlg the bill of l;ading shalt be deemed to be lhe owner of the artick> inc:uded
in the bill
For the um, plIrpO$e, "agent" shall be deemed to InclUde not only any agent in facl 0' the owner 01 the
seized pt<lperty but also any person hilving respon$il)!!) possession 01 Ihe property at the time at the seizure, if
the owner or his 8geflt in filet is unknown or cannot be reaChed,
4 1304. NoIi6cs/.on 10 Unll:noWn Owner. Notice 10 an unknown owner sh.11 be by polling for
tile public corridor 0' ttl, CUStomhoUM 01 the district in whlCtl tile SeIlUI' Wa$ made, <lnd, In the
diseretion (If the Commissioner. by publication In I nE!'lY$paper or by su:h other me..ns 8$ he shall col\$M.ler
desuable . .
2305. Oescriptiofl. Appr"aisll 8fld Clauitfc;at-t d Seized PfOpIII'ty. - The Collectol S"!l.l also cause
list and particular description arid/Of daurficacion of the ptOpet1y seized to be prepared end an appr.ti5emem of
the sa",', like, 01 limhr article at its wt\Olesale value in the local market in the usual wholesale quantities If}
the ordinary coun;e of trlde to be made by at Iusl two appraisinll officials, it are sueh at or Ilear
lne place of seizlJr. III the absence or ttlose ot1ici.als., by two competent <lind disJntereste!l crtlz"ns 01 the
PhilIppines, to Hlected by him for that putpOStI, residing at or neSI the place ot seizure, Which Vst aric1
ap;lra lhatl be p'opel1y attested 10 by ttle Collecto, and ltIe persons rnakng the apprars<llt
e.C. 23 . gs in Case 01 Proptlrly 10 UnlaiowlI Parnes II, within lifteen days after
ttle nold,ca'.JOn presclibed in section tweIIty-thrl':e hundred and tour of thiS Code, no owner or agEnt COIn be
muruS Of before the Collldor, the latter shll dedat. the property fa1e"ed to the government 10 be sOlll
al auction in lICC<1,-dance wilh law,
2307. Sel/iemllfll 01 Case by Peyment of F;ne OT Redamplion of Forfeited Propelfy. - Subjl1'Cl l:;l
approva' of lhe Commissioner, the district collector may, while the case Is still pending. e}lcepl when Ihefe is
fraud, accept th& settlement of any seizure provided that the owner, importer, exporter. or consig'lee or his
agenl Shall offer to p.y to Ihe collector a Ii'le imposed by him upon the property. or in case of forfeiture, The
DWn8l', exporter, lmpOrtef oc coosignee or agenf shal offer to pay lor tile domestic mar\l;,e1 yalue of tne
seiZed The Commi$Sione, may accept lhe setTlement of any seizu,e case on appeal In Ihe same
mal"ll\er
Upon Pillyment of lhe fine as determined by lh. distli<:t C'O'Jector which shall be in arnollnl not II!S$ Ihan
twenty percentum (2O%j no, mare lnan eighty p--=Rnwm (80%) of the I8nded cost or the seized imported
article ()( the F.O.e valiue of the seized article foI" uporl. or payment of the domestiC malice! value, the proper1y
shal De 10rtllWlth 'eleitsed and all wtllch may Of m !iht attach to the property by vinue of L'te offence
wtlicb was the aee.Js1OfI of the seizure .nd all lability which might haVe been incurred und.r any cash depoSIt
or bond given by the owner or .gent ., respect to such propeft)' shall thereupon be deemltCllo be
Settlement 01 .ny Cl5e by payment of the r.... Of redemp.'ion at fortllited Pfoperty !'lot be
alloWed in any us. where Itle irnportabon is. absolutely Pfohib!ted or where the release of the pl'operty w.ookl be

SEC. 23GB. ro/esC tmd Payme'" upoII ProIIUi in CM Mafiers When a 11.1111I9 or deasion of the
Co de whereby liability for dl.l!ies, laxes, fees or aU- chillrges are determmed. elCCepl the fucin.J of
lines in seIZUre CISe'S, the party advet'sely atfeded may protest such t.uling or de<:lsioo by presenting to the
CgJ ,t \!:Ie time paymenl 01 the amou"!. fl.!'l'!'l!d ,;ojl".duePIt!. goYernment If; made. or withiri1illeeJi'
IJMeafter, ....,lttefl p,-i:i!e:s.l",rtlng forth his objedion to the' IUli!'l9'Or'deCis'ionTri 'que5tlo'( toge-Ihn
....,- '.' e reasons therelor. No pralest sflall b'e con$idelad unless 'payment 01 Iha 'alT'lOUnt due afler lina'
Iquid.tlon has rirst been made and the corresponding dClcket Cee, as provided fo, In Section 3301,
::62309.)prorest EKCJusive Remedy in Proleslebl& C!lse. l'l aW cases subject to protest, tile
interes;party wfJ" desires 10 have the action of the Collector reviewed, shall maka prollS!, otherMse. Ihe
action of the Collector shalf be fmal .fId Jncluslve against him. ","cflPl as to malters collectIble fur manileSI
!he ",o,,"d ""d'", oed ,
ec. Fotm lind Scopl' of ProtnL E.,"!)' protest shall be filllll in aexordance with lhe prescribed
ruIn regulations promulgated und...-IhlS 'iectlon and shaQ point out the partjcular decision or rubng. of the
Colledor 10 whim exception is lakan or Objection made, and shall ineicate v.,'ith reasonable p'ecision Ihe
parbcu!ar ground Of grounds upon ....illd! the protesllng party bases claim for relief
The scope of a protest Shall be limited 10 tl1e l>ubjecl matter of a Sil191e adjuslment or oIlier indepelldflnl
lransactiotl; btlt any l1umber Of issue be raised In a protest with reference 10 the pilrtic;ula.r ilem or items
C('lnslltuting the subject matter of the pratest
"Single ad:juslmenl', as hereinabo",e use, refers to the entire content of one liquidation, including all
duties, fees, 5urct1!lrges or fines il'lcident thereto,
2311, Samplu ba Furnished by Protestirlg Parties_ " Ir the natUle of the articles permit, Importer'll
ming protests irwol",ing questions of tael-musl, uPon demand, supply tne collector with samples of the art:ctes
which are Ille subject matter or the prolest Such samples shall be verified by Ii'll' customs official who made
the classincatiOl1 1Igai'ns\ which the'prcitests liTe filed,' '" .
k";231:>Decisibn or In Protest and S9izur& C.SllS, When a protest in proper
form is presented in a case where'protest is required, tlie Collector shall inue an order for heartng willlil'lfil'l:eeJ1
, " I' '.. . .", , ' -
(15) dayS lrom receipt 01 Jhe protdt Il'ld l1&ar the metter Inus pres.e-nt&d. Upon the termination of the
the Collector sl'lillil render a decisiOr\ within (30) dillys, and if the protUI is sustained, in Whole Of in part.
he shall the appropriate ordei-, ilia entrY reliquidated nessary_
In -s.eizure cas'e&', ColleCtor-, aner a hearing shall in writing make a dedaratlon or forfeiture or rix the
amount of tne line or take such other action as may be proper,
of Commis!ionflf,. The persOl'l Sggriwed by the decis'lon 0( letioo 01 the in
idii!d upon prooost or by his action in any cue of seizure may;'witl'lln (t5) days after
netiflcation' on writing by the Collector of his aclior\ or decisions, fil. a written notice to the Collector With a copy
furniShed to -n.e Commi;slcmer of his intention 10 "IiPPeal-tha action or declsion 01 Ihe ColJotCto( to the
Cori\missiorl-et. Thereupon"the Collector shall forihwitl'l'triinsmil ell fhe (eco'rds of the pr'>Ceedings to the
"'.' ._r _. _ ' . _ ... <" ......
CommissiOrleT, who shall approve, inodily or reverse the aclion or deCtslOO of the CoRector and lake su<:h steps
and milke such orders as may oeceSs<lry to give efl&ct 10 his decision: Provided, That when an appeal is
filed beyond the period herein prescribed, the same shall be d,emed dismissed,
',;,: _r,." _ _ .' ..
. If_ in. Seiz_u,re reridefs:._fiIeelsion 8dverR t9 deCision
Shall a'utomllilcafly -reviewed bYtM' Commisslon.r and" Ihe records 0' the cese er....ated wTthin fi",e (51 Oar'"
from promuJgaj;on or the'deCisioii of the 'ColleCtor:' The CommlssloriN'shall render e decision 'on Ihe
01 .. 1f,!l'Ie is
r8'll!rsecj ,,/ ttl. CommiSSioner, tlie deCision of the C(immlSsloQec aM OlCff;lj(PD' .. Howe\IeJ. if Ihe 7 'r /.4<-.'
ledOf's deeision./s .. from the' r, rr'
Commissione';-'rio deci$\cfl IS 'rendered or the dedsiofl imported J-': ::"1.0;:
milli-on-pesOs' {PS;aOO;OOO) cif'rilCite,-sUch'oocision$halt be deem.o appaa:led to'the Secrel.1ry of S-t.lll'.-
Finance',fnd Ihe records cf the proceedings shall be elevated within five (5) days from the promLlI51atiOI'l' 01 the ....
decision 01 the CommiUioner or Of the Collector under appear, lIS the casoil may be: Provided, further. That if f
the decisiOn of Ihe 'CommiSsioner or of the Collector under IIppe(ll. as the cllse may be; Is affirmed by'lhe , .:
Secretary of Finan'ce, or if within {30) days from receipt of the records Of pfoceedings by tfle !
or FltIani no' l:fetision is the -decision-cir !he'SeCretarY Of Finanee, 0, of the Commissioner, or of the
Coil ector under apPell!, 'asthe case mal' be: shiJllbei;:om-e and - /, (. '.d.< .. .t.' ,;.
In shan nOI t, ,1
of tht Collector has confil1Tled in writing by the" Comrrils'Sloner of Customs (RA 7651, June 04, 1993).
hC.' 2314. NotiuJ of Decision of Ccmmissionar_ Notice of the decision of the 'be-
given to the pi'rty by w/l'om the case Was brollght before him tor fe>/ieW': and in seiZure cases such shall
be effected b' '5cnal service i.f . '.
h SEC, 2315, lJpervisory of Commission6( end of S#JCrfJlary of Finance in Certain . If
case ,nvo rn;'.Ss'e-!;sinentOf dutias,ttie COllector rellders. decls-ioi'laclwlrse to Ihe gO'lllrnment. ItUeh
decision shall automaticalty be afEwated to. and' reviewed by, the Com'missioner:' end if tt1e Collector....s deciSlol1
wo'uid be 'affirmed 'by the CommIssioner, sucfl dltCision shall be lloJlomar;cafly elevated to, and be finally
feviewed by. the &cretary 0) Finance: 'Plovided,' h'oWever. That if wtInin from recelpt of the
record 01 the case by the Commissioner or by the Secretary of Finanee, as tile case may be, no decision is
rendered by either of them, the decision under review shall become finel and (;'!)(ecutory: Prol/ided, further That
any party aggri&\led by either Ihe decision of tile Commission or 01 the Secretary,of Fimulce may appeal to the
Court ot TSlC Appeals wit 'n thirty (30) da I tram receipt 01 a copy of such de.cision For this purpose. Republic
Act Ilumbl!red l!le\l1 hereby amended accordingl>,.
r- --- -
Except as provided in the p'eceding paraglaph, the svpervisoty authorilV ollhe SeCletary 01 Finance over
the Bureau 0' Customs shall not e:<lend to the administrative review- of the ruling 01 decision of the
Commissioner i" matters appealed to the Court of TalC Appeals,
2316, AlJrhonly of Commissioner 10 make Compromise, SUbject to the approval, of the Secretary
of Financfl, the Commissioner of Customs may compromise any case arising un,der this.. code laws or
pal"! of law$,eo(orced by tile Bureau of Customs involvins the imposition 01 fines, surch.Hges al'ld fOI:ertures
unless olherwin by law.' . .
PART 3, JUDICIAL PROCEEDINGS
2401. Supervision and Conrrol ovitr Judicial Proceedings - In the absen,,(- of special prov:sion,
jud;c,al aciio" and proceedings instituted on behalf of the Govemment purt;uant to the provlsio"s of this code
shall be subjecl to the supervision ilnd conlrol of the Commissioner,
2402 Review by Court of Tall Appeals. - The party by a ruling of fM COmmISSIOn"" in
any matter brought before him upon prOlest or by his action 01 lU:ing in any case Dr seiZure may appeal to the
Court of Tax Appeals. in the manner and within the pt'!fiod pfescribed by law and legulations
Unless an appeal is made to the Court of Tax Appeals in the milnner and within the period prescribed by
laws and regulations, the action or ruling of the Commissioner shall be t'"al and conclusive,
'PAfH.A. - 5URCHARGES, FINES AND FORFEITURES
SE:C. 2501. i=a;J"m to Pay l.iqvithled Charges. - FOI lailllle to pay the amount of liquidated dutie5. taxes
and other charges of a liquidatIon w'thin lell {10) wof1(ing days after the notice of liquidation shaq have beell
publicly posted tn Ihl! customhouse, a surcharge of ten (10%) percent of the total amount Of balance found
upon shall be added thereto and collected therewith, which surcharge shall be increased to twenty-
five (25%) per cent if the delinque"cy lasts 101 more than one year,
SEC. 2501A UnalJrhorixed Withdrawal of Imported Articles From Bonded WarehOlJ!5. Upon any
IJmlullwrized withdrawal of imported articles StOled in a cusloms bonded warehouse, a 5urchalge of fifty (50%j
pel cent 01 dillies, taxes, custom lees and charges, lound to be due alld unpaid, shall be iidded thereto alld
collected. The surcha,ge shall be inc,eaHd by twenty-five (25%) per cent annually of the unpaid taxes il tile
delinquency lasts fOI more than one year.
SEC 2502, Failure 10 SIJPPIy (:orrSI./I/ir Invokit - When an entry of article of dutiable I/alue of which
more than three thousand (P3,000) is permilled by the Collector 10 be eHeeled upon commercial ,nvoice
certified by the manufacturer, seller or Shipper, the Collector. instead of requiring a cash deposit. irrevocable
domestic letter of credit. bank guarantee or bond for the subsequent production of the consular invoice, may if
the importer who is nol bonded so prefers, impose a surcharge 01 not less thall'ten pel cent (10%) nor more
tha."l fifty pel cent (50%) of the dulies. lees and othel charges dues upon the impartafion but in no case ..s
Ihan one thousand pesos. (PI.OGO).
SEC. 2503. UndelValuation, Mlsclassirlcation and Misded<lration ill Enfry - When the duhable value of trw
imported articles shall be so declared and entered th(ll the duties, billed On the declaration of the importpc or.
the face of tne entry would be less by te" (10'Yo) Ulan should be leg8:ly collected or when imported
articles shall be so dellcribed and elltered that duties based on the importer's description on the far-e of thp
pilot's in command report, and the discrepancy is not satisladory explained, the vessel Of aircraft shall hi>' foned
in a sum!'Ot exceedinylive thousand (P5.000) pesos,
. .
SEC 2526 False SCat6l1llllnl 01 Ve.s.sBfs or Ait'cra"'.s Destin8licm. When the master or pilot in cornmana
of a vessel or aircraft laden with articles shall make. false statement as to the next destin.tion of such vessel
or t1ircraft IM\en information conceming the same Is required of him by a customt, official, such vessel or
aircraft shall be fined ifl a slim not 8xceeding ten thousand (P10,OOO) pesos: lind Ihe circumstances that ;'I
vessel or aircraft aftel clearing for a certain port of destirlation \Ioes to some other port, not beirlg impelled to dt!
so by necessity. $hall be p,ima facie proof tllal the oriOlnal statement of tile vessel's or. ai/craft's actual
destinatiorl was false.
SEC. 2529 Oth8rOffences. -"A shali be in an amounl 'hereafter fiXed to,:
(I) Anchoriog al any dock, pier. wharf. quay, or bulkhead without rat guards, two hUr'lCred (P200) pesos
lor coastwise vessels, and one thousafld (F'1 ,000) pesos for overseas vessels:
(2) Dumping garbage or :olops over the side within Il'lree miles from the nealrest coastline, one thousafld
Pl,OOOl pesos; ': .', . .. . .'... :
(3) Dumpiflg Of causiflg to spreed crude oil, kerose"e or gasoline in Ii'll! bay or at the piers within three
miles ftom the nearest coastline, noe thousand (P1.000) pesos for eech offence;
(4J loading \Iasoline al a place other ltlafl thai designated by the /egulaliofls. One thousand (Pt,ODO)
pesos lor each offence: '.
lS) Causing the emissiofl arid spread of harmful gas, fumes and chemicals, five thousand (PS.DOO) pesns
/ for each offem:e, ' '"'
SEC. 2530. PropfJrty Suojeet ro Forfeiture Urn/fir Tariff !lInd ellSroms Law. . Any vehicle. venel or
aircren. cargo, article und other objects shaW, Uflder the following COrlditioflS be subjected to forfeiture'
a Any vehicle, vessel or ,aircraft, incl4(lirlg .cargo, wtlich shall be used unlawfully in the importatiofl or
.exportation .of articles, or in eonveylflg. andlor .transportiflg conl"!band :or, srnlJggled articles in
l:OI'rtmercillt quantities Into or trom any Philippine por1 or placo&. The'mere carrying or holding on board
of cOrlllabafld or smug\lled articles in commercial quantities shall subject sLlch vessel, vehicle, aircraft
01 any 0(h8l' craft to forfeilure; Provlded.-:That the vessel, or alrCf3/t. or Ifly olher craft is nol used as
duly iluthorized common carrier and as such a carrier it is not chartered or lellsed; "
b. Any vessel enga\ling in the coastwise which shall have Oil board arlY article of loreigfl growth, produce,
01 manufacture in excess 01 the amount necessary for sea stores. wnhout such article having been
properl,. fnlered or imported: . ,. ' . .
c. AJtt vessel or aircr3" into which sh311 be transferred cargo unladen contrary to law prior to the arrival
of the importiflg vessel or aircraft al her port of destinati,on; ..
. .. , ',.' " ,
d Any part of the cargo, stores pr .supplies of a veSoSel or airclal't arriving from It fOl'eign port ....-!lich is
ul'\llden before arrival al the vessel's or aircr31'ts port 01 destination and without lIuth<Jrity flom the
customs officials; but such cargl>, ship or .. supplies .shall riot. be forfeited il such
unlading was due to accident. Siress. 01 weather o' other necessity aOd is subSequently ippraved by
the Colleetpr; ... :' .
': -'
,"*"--
e. Any article wt1ich IS fraudulently concealed In or remo....ed contrary to law from an)' pubHc or private
warehouSe, contilliner )'ard or container frlljght station under customs supervision:
f. Any article the importation or exportation 01 which ll; effected or attempted conllar)' to law, or any
attlcl. 01 prohibited importatlon or exportation, and aft olller 8rtides which, In the opinion 01 Jt>&
hPe been used, or were entered 10 be used as in Che Importat,on Of"
ll.lfpolt.lion ollh,lormer:
g. Unm.anifnted 8/ticre found 00 any "esse( or aircraft if manile5t therefore required,
h. S6ilI stOln or aitctaft stores adjudged by the Cclltetor 10 be excessi\le, wtIfIo !tie duties assessed by
lite Collector thereon are not paid or secured brtJrootith upon assenmenl of the me.,
Any package 01 imported article 'Hhieh i. Iound by the e)l3fTllning offici.l to COfltain any article nOl
speeified in Ihe ,nvoice or enlry, mctuding aU other paclcages purporledy COnlil'l'll"'!t mportw article!>
Sll'Tllliil' to those declared i'l the invoice or entry to be the COrients 01 Ihe mlsdeelared package:
Provided, Thallhe Collector is of the opinion lhalltle misdeclaralion was contrary 10 I-:
BOlIn. cases. trunks, envelopes and ol:hN contillil\efs of wtlatever characl:lr used JIll receptacles or as
device to concul articN! which is itself subject to forfeiture uncer the taritl'nd customs law:s 0' wtuch
IS SO dHltlnlld IS to conceal the characler of such articles;
k. Any COIWItyllflCt actually being used for the transport of articlH subject to forfeilure under the tarin
and customs laws. wilh lis equipage or frappings, and any veNd! simllar1y used, together with ils
8quMlIf' .nd appurtDliclnces Includmg the tenl, sleam or moIMi power drawing 0/
Ihe same. The mere conveyance of contr.band or smuggled artIcles by $lKh beast or vehicle s;han tie
suffiCient caU!>e for the outright seizure and confiscation 01 such 00a51 or YehICI<e, but I:he forfflure
shall fIOl be effected if it is establlsh.d thllt tl'le owner of the me.. ns of CQnveyance und as .. foresaiC.
hi engaged es common carri.r .nd not chartered or leased. or his agent In charg. thereof at the torne,
has no kr10wledge of the unlawful act
1. Ally article soughllo be imported or exported
(' l Without going through a customhouse, whether Ihe .et was consummated, frustrililed or attempted,
(2) By failure to mention to a customs offici.l, articles found in the baggage of a person un"'ln\! Irom
abroad;
(3) On Ihe strenglh of a lalse dec:laratioo or .ffidavit ellecu1ed by the OWI'Ief, Importe" I!KpOrtM or
consignee conct'fning the import",tion or such article;
(4) On the stfenglh of Il faJse invoic:e or other document Qll.9CUtid by the owner, importer, expOItet or
eonsignee cancerning the importation or exportation of such article; llnd
(5) Through .nl' other prac:tice or device contlW'J to law by mUllS of which such al'b(:4es Wil5 elltll'l"ed
throUlih customhouse to the prejudICe 01 tile lIovernment.
2531. Propertj"s Not Su!1j.ct to FOl"feifureNl Ib" Absenw- of Prima F.de ElIid.nu, The forledure
of lIle vehicle, vessel, or aircraft shaU I10t be effected If " i$ estIbbhed thai the OWTler thereof or his agent In
charge of the mNns of eGnwyance used as aforesaid has roo lmOYfledge ot or pMIicip.tlon itI the unla.....ul ace:
Prov'Cled. hoWever, That I prima facie presumption shill exist the vessel, vllhicle or tlll'O'"olITt uo<lef any
of tN! falkJoMng ci/cumstarlen:
l,lf the conveyance has been U$8'd for smuggbng ailea$!. twice before:
2.lf lIle ownl'l" 's not in the busroess for which Ih. cOlTV6Yance is generatly USN, and
owner IS not financially in a poailion to own such COflvepoce,
SEC 2532 Alfming FotfeitlPe of Article A$ regards imported or exported IItlCIe Q( lIrtld<es
wtle,eof tnt tmpOrtlltion or is merely attempted, the forlellure shall be en:ec:ted only when alld"
the artidB i" the custody Dr within the juorisdictJon a1l:he CUSIIllJlS alJlhomies or In I:he hand' or subject to the
control ollll' imparler, uporter, origi!\al owner, con5igrlH, agent of other pll'l"50n <effectlnll Ihe impllrtation,
entry or txportetlon in question, or in the hands or sUbject to the control o' some persons who $hall re<:e:I'e,
oonceal. bUy, sell or IUlOsport the 5ama or.id In any lOCh aets. with krtowledge lhat the .rtlcle was imported,
subject of an attempt at importation Of expOrtatiOll, contrary to law,
SEC, 2533. Enforeamttnl of Uen, Adminisfftltive Fines. ilnd Fotfaifu"" - Adminis\ratill'e fines and
forleitures sllill be enforced by the selzure of lhe vehicle, vessel or eire/att or other property subjecl 10 the rlne
or forteiture and by subS6quent proceedings in conform.ywlth the provisions ot Paris 2 and 3, Title VI, Book lI.
ef this Code For the ptJl'JIO$e of enforcing the HilA for customs duties, fees and otller ctlartl8S on IIny seized Dr
confiscated article In the C\,Islody of the Bureau of rl'llemat Revenue, the Bureau of Intimal Revenue is hl!'l"eby
authOriz' . se and enfllfce the said
eizute of VfIs$ei Of" ..vera" for DeIflquency of 0WI'Ier 01" Officsr. When Ihe owner. agent.
, cOlTVTland or other reSpClntaO!e orrlCer 01 any or ai/craft becolTlM riable 10 bll fined unde<
the tariff and customs laws on account of a dtllnquency Itl Ihe discharge of a duly imPOled \JpDn him wrUI
.Ielelence to Ihe laid vessel or aircral'l, the vessel or aircraft itself may be seized and ll.lbjected in an
administrative proceeding for Ihe satisfaction 01 the fine for wIlich such person would have been liable.
2535. en 01 Proof in S&i7UItJ andlry Forf9irure. - In all ploceedings taken for tt1e SeiZUle and/or
fortel l.lr >'esse!, vehicle, aircraft, beast or articles under .he provisions or the tariff lind customs I<lws,
Ihe burden of proof shsll lie upon Ihe claim!lnt: Provided, That probable caU$B s!Ja_ be lilst Shown 101 the
institution or such proceeainqs end thai seizure ilndlOl foI1"silUle was made undel the circumstances and in tne
in the precetHng sections of this Code " ,
of MicffU. .The Commissior!81 01 and CoUeclOl of CUsloms and/Of
any ethel" cusloms officer. >Mlh tlle prior.aulhoriz<llion in writing by the Commissioner. may demand evidence 01
payment of duties and laxes on foreign articles openl)' offered lor sale or kept in storage, 'and if flO such
evidence csn be prl)(juced, 6uch ilrtides may be seind snd subjected to Iolfeilure Provided.
howevf1r, Thet during such pfoceedings tM parson 01 entity for whom such articles have been seized shall
given the opportunity 10 prove or show tile 119ufce of SUch articles aneSthe paym8llt of duties and taxes thereon
'. ' .. )','." """"
PART 5 DISPOSITION OF PROPERTY IN CUSTOMS CUSTODY
2601. Property SU;cI to Sa/&. - Propelt)' III customs' shall tle subject to sale under Ihe
'Fiereirtafler provided: . " '"
iii Abandoned articleS;
b ArtIcles entered under warehousing entry not withdrawn nor the dl.l!ie$. ane! taxes paid thereOfl withIn
the prescriDec" under Section HIDS of this Code;
c. Seiled property, other ttlal'l contraballd, atter liability to sale shaJJ have established by proper
lldmll'listrative or jUdicial proceedings in cOllformll)' with the pravisions of tIlis Code: and
d. Any article SUbject to a valid liell for customs dlllies, taxes or other chargeS conec:lible by the Burellu of
Customs. after the expiration of the period allowed for Ihe satisfactioo of Ih. same <RA 7851, June
04.1993). '.,.; :.,.,;".
2602, Place of Sme or orller Disposition . the puf'lliew of this Part or
thiS Code shall be sold, 01 othefWise disposed 01. uPOI'\ the Older of the CoIl9ctor of the port Where the property
in question is found. unless Ihe Commissioner shall direct its conveyance for such pU'l'0se to some other port
Mode Qf Sale. - Ifl the absence of any the' of 5ecl,(l.'l
2601 abovl' provided. fH"operty subject to sale by the cuslQms authoritJes shan be sole! at public allcliQn within'
Ihlrty (30) days aft.r ten (to} lI8)'S notice 01 such sale Shall have been conspicuously pQ5led at tne port afld
such ether advertisemeflt as may appear to the Collector to be In the particular case. . . .'
2s.04. DisquaJillclJlitm ro Parlicipate in -No"customs or shall hE
allowed to bid directl)' or indirectly, in any customs 8ucti-on.
hc. 2505. Disposilior> of - ;,JioWiIlQ charges shall be paid from the proceeds 01 the sille
in Ihe order lIamed,
. E"penses Q' appraisal. advertisement anti sale..
b. Duties excepl in the case of abandoned and lorfeited articles.
c, lailes and Olher charges due the GOVilrnment.
d Govelflmenl storage charges. ' .. "'.' , '.'
aAfras\le alld privale st.orilge charges.
t Freililht, lighterage or general average, on the voyage of importatiClfl. or whk:1; due notil:e shall have
/ been givell 10 Ihe Collector.. ' .... . .
/ SEC. 2606. Disposition of SUrplus frr;m the of SsJe or Abandt:Jned or Forfeited Articles,- Except
in the case of the sale or abandoned or fork!ited artieles. and all artil:les which aft! IlOt claimed by paymenl of
duties, taxes and other cllalg("> 81'ld complial'lCe wilh aU le!ilal reqlJiremenls within the prescribed period. en)
sUrplus remaining after the sal lfaalion of all lawful charges as aforesaid sl1all be retained by Ihe Colledof lor
t.n (10) days subject to the call of the owner. . . ." '.
Upon the failure ollhe owner 10 claim 5uch slIrplus .....ithin this period, the Collector shall depOSIt
amount with the Treasurer 01 the Philippines as iii special deposit. to be paid 10 the ploper claimant demllOltnp
the same within one year therealler, llpon such evidence and ifl sucl1 mallner as \tie Comml$sion on 'Audit snail
prescribe, . "'.' . ,'" , .
$3 P
In an such C;lses the Collector shall report his action in the matter, together all the pal":iclliars 10
the CommissiO(ler and to the Chairma(l, Commission on Audit. After one year, all unclaimed special deposits
shall be considered by the Bureau 01 TrEasury a... cU'.>toms receipts.
2607. Dispot.i!ion of ArlicIes UsbJe to Delenmalion articles shan be deposited in any
appiup.-iale'&:AIded Warehouse: and. if not immediately entered fo' export (]( 10' lr.lnsportation 110m llie
or aircralt in wh,,;h ,""ported or enteu,d fOf consumption and the duties and taKes paid thereon, such articles
be sold II luction, Iftll!" such public notk:l'!, not exceeding three liS tile necessities of the ease
permit

Wilen seizure shall be made of property wl1ich, in the opinion or the Collector, is Nable 10 perish or be
wasted or to depreciate greatly in value by keeping or which cannot be kept witholJI great dispropo,l<onate
expense. whether such property consists 01 live animals or of any article, the appraiser shall so hr.;
appraisal. thoen the Collector may proceed 10 ad\lertlse ilnd sell the Samll OIl al:ctlon, upon nolice as he s!lall
deem to be reasonable.
The same disposition,may be maoe 01 any waret10used artldes when the opinion of Ihl;! Colledor illS
_thaI of depreciation. damage, or . may so redvce Its valve as to be
insuffiCient lb pay the dUlles, taxes ilno other charges due Ihereon, II it should be p,ermlll:ed to bt so kept and be
subject e irl the usual course, "
2 Disposition of Artie/etl Unfit for Use or Sale or Injurious to Public Healt.h. - When article,
whlc I e I'inion of IhlflColieclo., is a menace to public health, is seized 01 olherw,se comes into the
01 the f;ureau 01 Customs, the Collector 01 the port shall, Hthe mattel is not disposable IInder the
provisions 'elat,ng to food and drugs. appoint a board of three members to examine IN' article. Wheoover
possible, Ofle member shall be a representative of the Department 01 Heakh or oflor....l health officer, and lhe
two ol:hers shall be responsible officials of the Bu,eau 01 Customs, at least one of whom shall be an appraiser.
Such board shall examine said artietll, aM if the same is found 10 be unfit or a menace 10 the health, the
board shall so leport in writing to Ihe Collector, who shall for1l1with order its destruction in such manner as the
case may require.
Health alJthorities at port of entry shall collaborate wfth the collectors in such malters with reasonable
dispatch
:2600, Disposition of Cootr8band. - Article of pJonlbited importation or know" as
contraband shall. in the absence of special provision. be dealt with as foUOW!I:
il. Dynamlle, gunpowder. ammUl1ilion lind other fi,earms alld weapons 01 war and palt"
therltOf, Shall be turned Ov"r 10 the Armed Forces 01 the Philippines:
b, If the aMiele In question is highly dangerOlJs to be k.ept or handled, it shall forthwith bl! destrovell,
c Contraband coin or bullion, foleililn ClJrrencies and negotiable instrum"nts shall accrue to the
Slabilization Fund of the Central Bank subject to the payment of the expenses inCident 10 seizure
reward to the informer
l
if anv:
d Other contraband 01 commercill value and capable of legitimale use may be lold under svch
restrictions as will insure its use for legitimate purposes only: bul II the thing IS unlit lor use OJ the
Collect(l( IS olth. opinion Ihal. if sold, it would be used for unlawful purposes, " shali be deslrayed in
such manner as the Collector shall direct. st..b-t... - i.J
r _. <
SEC. 2610. position of Unsold Mieles for Want of Bidders. Artidcs sUbject to sale al pubilc auction
by s aulhorili("s s!lal! be sold at a price nol less than the Wholesale value or prICe '1'1 the domestic
market of these or similar articles in tht usual whOlesale quanlities e.nd in the ordrnary course of trade as
determined in accordance with seclion hundred and five ollhis Code,
When any article ,emains UnSOld in at least two public bldr:finlils for want 01 bidders or for lack of ,In
article is perishable and/O1 SUitable for OR,CIat:Use, Ihen the Collector shall 'eporl the
ma"er edla to the of Customs who may. SVbJe<:1 10 the approval of the Secrel.;or, of
E!n!!Jce, .vthorize the official use ofttlat 8rticte by the Bureau of Customs to promote tht!' intensive collect'on of
taxes amlfoJ 10 help prevent Of suppres'S smuggling and other frauds upon Ihe Cu<;tom$. lind if tM artlcle is nOl
suitable for 'Such use, then it may be channeAed 10 the official use of Olher oflices of the National Governmef'.t.
If the article i$ suitable for sheltel or of fll.W1Atuffs, c12!J'i09 roatwials or rn,.J:llicines then that 1I",cle
Shall be given 10 gove:rnmenl institlJlio,ns through the Department of SOCIal and
Development

.... ..
V,""\'" "'"
II the article offE!!red for sale is nOl $uitable either for official use or Charity, then the same may be re-
exported as government property ll\rough the 'Dep.rtmeot or 1'&88 ' 8rly other goverllWenl entity thrcu9h
,..dpr or fale. II the article cannot be disposed of as provided above, th... Collector shall report the matter
immedllltely 10 the Commissioner who may, subject to the approval of the Sec[e!a'y 0' Ejnance, dispose of the
article to ltIe best advantag8 of the governmenlln a "8lIotil1ted prtvat8 58. which shaM be coosummated in the
of a '&tl)m'fs5ion on for by this .'
SEC 2611. Troafmlml of Dangerous EKpIotilVes. - Gunpowder or ottler dangerous Of explosive
SUbstances, illcluding firecrackers, Shill not be 'deposited in boonded warehouse, and when not entered for
immediille use. Iral'lSportation Of export. shall be r.ubje.ct. to such disposition. in lhe discreliDn of the
Commissioner 01 Customs, consistent with public sllfet>'
EKPenses incurred In such shall COflstitute II lien on the ortielet and 8 chefge against lhe
c....ner. , ..
/ I"
2612 Dnposition of Smuggled Micfes articles: after liabtllty to seizure or fOffe-ture
SMII have been established by proper administrative or judicial proceecllngs in conlormity with the of
lhis CoOe. shall b& disposed of as pro\lided for in section ti1llysjx Modmd and len: P,o....ided. That articles
whose importation 1$ under Sectjpn One hundred to b, c, d, e and j sl'1aR, upon
order to the Collector be bllLD.!!Lor destroyed. in such manner as the case may require as to rencler
them absolutely worthless, In the presence of a each from lhe CoMminlon on Audit. Ministry of
Justice. Bureau of Customs. and if pOSSible, any sector \
, PARnFEES AND eH.RGES
I ... . ...
SEC. 3301. QJstoms Fafls and CJlargas, For services remlflred Bnd documents Issued by the Bureau of
Customs, the following fees shall be charged and collected, by affixing documentary customs stamps in the
correct amount upon the document or any 'other paper Whicl'1 is the subject of the charge and by the
cancellation of such stamps In Ihe manner prescriHd by the Commissioner. and no such documMf Of any
other paper shail be issued I)r granted by any customs official until the correc'l amount tlf lltamps Shall tlave
been and cancelled: Pro....ided. however. That fees of twenty pelos or over may be pllid in cash.
For each amendment allowed to II foreign inward manifest.. .. " " ,.,."" "., ,.,. F:30,OO
For each permit to OthelS Ihan passengers to take cigars IIboard
ship. per thousand cigars.,.,.;......- ,;., _ :.. ,,.... , '., .... ' " .......... ,30.00
For each permit (to other than passengers) til lake cigarettes aboard ship.
per lhouund cigarettes.. ..........., _ , 30.00
For each original import or export entry exceecling fifty pesos in alue , , , ,,.3000
For each entry for .immedialll transportation in bond 30 00
For eacl'1 original internal revenue' enlry..,..0:'.;.,:: .. ":': ,.... : : _" 30.00
For each original wilhdrawal entry from any warehouse.. ,. '... ,., ,... "." .. ,.. ,., .. 30.00
For each bond accepted at r_d , ................ ,. _._ ................... .......... 30.0C
For each approval of application in respect 10 transaction covered by general baM., , ,.,30.00
Fat formal prolest filed before, the Collector of Customs..................... , ,, , 50.00
For each appeal in protest and seiZure CliSeli.,..... :..:: .;.. .-....:... :.:...:............................ _..50.00
FI;Ir eaCh certificate nat hereinabo....e specified. 01 such ere made In the course
of routine 'nol subseNe any sp&Cilll .' --'. "'"
pecuniary interest of the party concerned Iherein..:, .. ;.... . ;; : ,....L 30.00 ".
. ,. .., ',"' - -,. -
sec. 3302. Othfll Chargtts. '. When any aoticle is sold or any reMe,ed by the Bureau of Customs
in alny matter far wI1lth a charge may be collected legally. nc fee therefor having been fixed by law. Such charge
snail be all '!iuch amounl IS mOlY from lime to time be fixed by or Order of the Commissioner ami
approved by the Departmenl of Finance. ilnd the of sveh Charge rnay made by aNi)(lrrg end
cancelling the dacumef1tary customs stamps
: ,- I . :""'" .:"''-, .'. . ..... 1.. ....__.. ..
SEC 3303 Failure fa Affix SltNnp UPOll Document. No ddcument or any other paper upon....
which no documentary customs stamps I'1Bve been affixed and callcelled Shall be received ar recogniz.ed by any
customs offICials '.'
. -.
""
sec_ 3304.. OIl the AJJfhOfily to Jncrea!lrt qr.D6cr8aslJ.FH!I and Charges. The rales
of the fees diarge;s ill an ports in the Philippines shall be those now provided for under $(lelion thirtythree
and one Cade: Provided. however. That Ihe Se,?relary of Finilnce may. upon recommendation
-'..
of Commi""iollel of Customs, Increase or decrease the saiCl rees, dues anCl charge" collectible by the
8ureau of Customs to the illtere"t of the Government.
TITLE VlI1 - GENERAL PROVISIONS
PART I. CUSTOMS BROKERS
SEC. 3401. OuMflcaliom of Applica{\fs (or Customs Btol<"'s Cet1ifica/a. - All applio:;an1!i fm cuSloms
bfokefs cer1if,cale shall pas., a writtell el<aminatioo lot the purpose.
Applicants for admission 10 l.'le said eXilmination shall have the to/lowing qualiftcations'
(al At least 21 years of age;
(b) A ciii&n 01 the Philippines;
te) Of good moral characler; ilnD
(d) Has completeli at least a four-yea' collegiate COUlse, where he has creditably taken al least eighteen
(18) academic units in tariff and customl andlor taX3110n, and applicant may be allowed to la1<e the
exam:nation providlX!that tor e"Iery deficiency olthree (3) academic in tariff and customs tn(lfor
ta""hol shall be substituted by at least three (3) monthl of actual e:<perience in cusloms broKerage
and/or customs a"d tariff malte":, Providlld, Thilt said experience shall be duly certified by the
employer or employers of the applicant.
No corporation. association Of par1nership shall engage in the customs brokerage business unless allea.,l
two (2) ollhe officers 01 SVCh eorporatiOfl or association, or at least two 121 of lhe members of such partnership
have such certificate,
No certificate as customs broker shall be granted to any person who has been convicted of a crime
inVOlving moral turpitude.
SEC. 3402. Ex&mina#OIl by Ih6 Board of E)(sminers for Customs Broilers. examinations for cuslom.,
broker shaH Oe given by the Board of Examiners for customs broker under Ille supervision of the Civil SefVi-::e
Commission Application for admission to sl.Ich E:<amination lhall be tiled with Ihe Civil Service ComnllSSlon,
Examination for customs brokers shall be given once every two (2) years or oftener as the need
arises Which fact shall be certified by the Commissioner of Customs and shall be confined 10 SUbjects with
suGh brokers are required 10 be conversant, including knowledge 01 customs and tariff Jaw!, and
regulations. and of otrler laws and regulafions the enforceroem Of which is ltle concern ot the Sureau of
Customs.
The Board shall submit within one hundrer:t twenty (120) days alter the date of txamination the ratings
obtained by each candidate to the CommiSSioner of Civil Service who shaR submit such ratings to the Presidefll
of lhe Philippines for release,
A general avefage of seventy-five per cent (75%) shall be the passing grade lor this examinalion
Provided. Thai the e:<aminee shall not obtOlined II grade ot len lhan sixty per ce-ntj60%) in any of lhe
examination subjects
ThtS custom" broKers' examination shall bil considered as equi'o'alenl to the fll"t grade re;ulal
examination given by Civil SelVice Commission for purposes of appointment to pOll1iorls in the classified
service tile duties of whICh involve knowledge 0/ customs and tariff maners The e:<amin"lion and registralion
fees shlll be subject to Republu:: Act Numbered tour hundred and sbrty-flve.
SEC, 3403 The Soara of EJ(....minars. The Board of Examin,r$ for Customs Brokers shall be compoSf'!d
oOhe Commissioner of CUlloms, as ex-officio chairman, Tariff Commissioner and (3) other members
whO shall be appointed by the President upon the recommendation of tne CommiSSioner of Clvii S... rvice, The