TARIFF AND CUSTOMS CODE

1978 , 679
As Amended by the CUSTOMS MODERNIZA~

---.~=:=---------
ADE LESS TAXING: (R.A. 10863 or the CMTA?N AND TARIFF ACT
678 TAX M ITH CODALS AND CASES
A REVIEWER W
Sec, 1429. Other Offenses. - The owner r
aircraft or train shall be liable for a fine for tho of Pera~or of a vessel,
ved or repacked, or packages upon e o11owmg acts:
Merchandise so concealed, ~m:alue~ thereof have been so altered, (a) For anchoring at any dock pie~ wh rf
which marks, numbers or tll ie forfeited in favor of the governme nt. other than a port of entry, a fi~e of not ~e~s quay, or bulkhead
obliterated sha
defaced, or , m customs Custody. - Any
d . thousand pesos (PS00,000.00) but not more tha~~an: fiv_~_hundred
Ing Goods ,ro (Pl,000,0 00.00) for overseas vessels; mi ion pesos
sec. 1424. Remov warehouse , or any vehicle loa ed with or
person who entersnd~ny with Intent to unlawfully remove therefrom I
containing mercha ise In such vessel, vehicle or warehouse or (b) For dumping of garbage or slops over the sides of the
within three (3) miles from the nearest coastline a fi f vesse
any merchandise or bagg:;de or control, or any person who receives h (P , ne o not less
e milllo
otherwise in customs cus d,Ve or baggage unlawfully removed from t an on n pesos 1,O00,000.00) but not more than ten million
pesos (Pl0,000, 000.00);
or transports any mer~han0 / warehouse, or shall aid or abet such
any such vessel, vehhiclepenalties provided in Section 1401 hereof.
removal, shall suffer t e c) For dumping or cau_sing to spread crude oil, kerosene, or gasoline
a Duties, Taxes and Other Charges. m the_bay or at the piers within three (3) miles from the nearest
Sec. 1425, Failure toh~ %uties taxes and other charges of an coastline, a fine of not less than one million pesos (Pl ooo 000.00)
- For failure to_ paJ \ ~lS) days from the date of final assessment, but not more than ten million pesos (Pl0,000,000.00) for each
assessmentwithmfi ee t (lOo/o) of the total assessed amount or offense;
a surcharge of te~ ~,e;,ce;dded and collected, which surcharge shall
balance thereon s a ty~five percent (25%) if the delinquen cy lasts (d) For loading ga~ollne or any other petroleum products at a place
be increased to twen
for more than one (1) year. other than that designated, by the regulations, a fine of not less than
five hundred thousand pesos (PS00,000.00) but not more than one
h f Security. - Upon breach of security required million pesos (Pl,000,00 0.00) for each offense;
Sec. 1426. Breac
nd t~is Act the District Collector, subject to the
to be filed uth er missio~e~ may accept in satisfactio n thereof (e} F?r causing the emission and spread of harmful gas, fumes and
approval ofst e t~om that me~tioned in the penalty clause of the
chemicals , a fine of not less than one million pesos (Pl,000,000.00)
a smaller ~n a;se less than the amount necessary to indemnify
but n tnfoorc the damage occasioned by such breach. but not more than ten million pesos (Pl0,000,000.00) for each
security,
the govemmen offense; and

Sec 1427_ Failure to Keep Importat ion Re~ords and Fu// (f) For transportin g hazardous waste, radioactive waste and other
A ~ to Customs Officers. - Any person who_fails to keep all the toxic substances as provided under the Basel Convention and
business and computer
records of ·Importat'ions or books of accounts, h ·
Republic Act No. 6969, otherwise known as the "Toxic Substances
d all Customs commercia l data in t e manner
f prescnbed
t I h
and Hazardous and Nuclear Wastes Control Act of 1990," the penalty
systems an . . t
under this Act, shall be punished with Imprisonm en o no ess t an
shall be forfeiture of the vessel in favor of the government.
three (3) years and one (1) day but not more than six _(6) years
and/or a fine of one million peso_s (Pl,000,0 00.00). This penalty The fines imposed herein shall be without prejudice to the application
shall likewise be imposed against importers and brokers who deny of fines or penalties provided under special laws and regulations.
an authorized customs officer full and free access to such records,
books of accounts, business and computer syste~s, and all customs Sec. 1430. Violations of this Act and Rules and Regulations
commercial data including payment records, without prejudice to in General. - Any person who violates any other provision of this
the imposition of the administrative sanctions ~y the Bureau _against Act or the rules and regulations issued pursuant thereto, shall be
contumacious importers, including the authority to hold delivery or penalized with imprisonm ent of not less than thirty (30) days and
release of their imported goods. one ( 1) day but not more than one ( 1) year, or be liable for a fine
of not less than one hundred thousand pesos (Pl00,000.00) but not
Sec. 1428. Concealment or Destructi on of Evidence of Fraud.
- Any person who willfully conceals or destroys any invoice, book, more than three hundred thousand pesos (P300,000.00}, or both.
or document relating to any goods liable to duty after an inspection If the offender is a foreigner, the offender shall be deported after
thereof has been demanded by the District Collector or at any time serving the sentence. If the offender is a pub!ic office~ or employee,
conceals or destroys any such invoice, book, or documen t for the the offender shall be disqualified from holding public office, from
purpose of suppressing any evidence of fraud therein contained , shall exercising the right to vote and to participate in any public election
be penalized with Imprisonm ent of not less than three (3) years and for ten (10) years.
one (1) day but not more than six (6) years and shall be liable for a
fine of not less than three hundred thousand pesos (P300,000 .00)
but not more than one million pesos (Pl,000,0 00.00).
 TARIFF AND CUSTOMS CO
TAX MADE LESS TAXING : AS Amended by the CUSTOMS MODERN?£AOF 1978, 681
680 A REVIEWER WITH CODALS AND CASES (R.A. 10863 or the CMT~fN AND TARIFF ACT

search
E. semedies
---sec=~.:2:1:9-.A:ut=h=orlty=~t::o-:E=n~te-r-:Pro~pe-rtJ_es
___- - - - - - - -
Remedies of the government police authority may, at any time enter · A: person exercising
Administrativ e any land, enclosure, warehouse' store' ~a~. rough, and search
principally used as a dwelling hou'se. ' ui mg or structure not
Sec,
214• Persons Exercising Police_Authority. - For the effective When a security personnel or any other em 1 • •
Implementation of this Act, the following persons are authorized to warehouse, store, or any building structure or enpdoyee hthves _in the
t f d • '
effect search, seizure, and arrest: for s orage o goo s, 1t shall not be considered asosure at 1s used
a dw II' h
for purposes of this Act. e ing ouse
(a) Officials of the Bureau, District Collectors, Deputy District
Collectors, police officers, agents, inspectors and guards of the Sec. 220. Authority to Search Dwelllng House. _ A dwelling
Bureau; house may be entered and searched only upon warrant issued by a
(b) Upon authorization of the Commissioner, officers and members Judge of a competent co_urt, the sworn application thereon showing
of the Armed Forces of the Philippines (AFP) and national law probable cause and particularly describing the place to be se hed
and the goods to be seized. arc
enforcement agencies; and
(c) Officials of the BIR on all cases fallin_g within the regular Sec. 221. Authority to Search Vessels or Aircrafts and Persons
performance of their duties, when payment of internal revenue taxes or Go~s Conve_yed Therein. - Any person exercising police
authonty ~nder this Act may board, inspect, search and examine a
Is Involved.
vessel or aircraft and any container, trunk, package, box or envelope
All officers authorized by the Commissioner to exercise police found on board, and physically search and examine any person
authority shall at all times coordinate with the Commissioner. thereon. In case of any probable violation of this Act, the person
exercising police authority may seize the goods, vessel, aircraft, or
Goods seized by deputized officers pursuant to this section shall be
any part thereof.
physically turned-over immediately to the Bureau, unless provided
under existing laws, rules and regulations. Such power to search includes removal of any false bottom, partition,
bulkhead, or any other obstruction for the purpose of uncovering any
For this purpose, mission orders shall clearly indicate the specific
concealed dutiable or forfeitable goods.
name carrying out the mission and the tasks to be carried out.
The proceeding herein authorized shall not give rise to any claim for
Subject to the approval of the Secretary of Finance, the Commissioner damage caused to the goods, vessel or aircraft, unless there is gross
shall define the scope, areas covered, procedures and conditions negligence or abuse of authority in the exercise thereof.
governing the exercise of such police authority including custody and
responsibility for the seized goods. The rules and regulations to this Sec, 222. Authority to Search Vehicles, other Carriers, Persons
effect shall be furnished to the concerned government agencies and and Animals. - Upon reasonable cause, any person exercising
personnel for guidance and compliance. police authority may open and examine any box, trunk, envelope, or
other container for purposes of determining the presence of dutiable
All seizures pursuant to this section must be effected in accordance or prohibited goods. This authority Includes the search of receptacles
with the provisions on the conduct of seizure proceedings provided used for the transport of human remains and dead animals. Such
for in Chapters 3 and 4 of Title XI of this Act. authority likewise includes the power to stop, search, and examine
any vehicle or carrier, person or animal suspected of holding or
Sec. ~15. Pla~e Where Authority May be Exercised. - All persons
conveying dutiable or prohibited goods.
exercising police authority as described in the preceding section
sha~I, only_exercise powers within customs premises as provided Sec. 223, Authority to Search Persons A"lving From Forel?n
for in Section 303 of this Act, and within the limits of the authority countries. - Upon reasonable cause, travelers a~ving from foreign
granted by the Commissioner. countries may be subjected to search and detention by the customs
officers. The dignity of the person under search and detention shall
Port and airport authorities in all ports of entry shall provide be respected at all times. Female Inspectors. may be employed for
a~th_onzed customs officers with unhampered access to all premises the examination and search of persons of their own sex.
within their administrative jurisdiction.
t ect and Visit. _ The commissioner or any
Sec. 224. :ower h~ 1i:?uthorized in writing by the Commissioner,
~!~oXtm~nJe: v~ence of payment of duties and taxes on imported
 TAX MADE LESS TAXING: TARIFF AND CUSTOMS
682 A REVIEWER WITH CODALS AND CASES As Amended by the CUSTOMS MODE~~DE OF 1978,
683
(R.A. 10863 or the AND TARIFF ACT

goods openly for sale or kept in storage. In the ev~nt_that the -

supplies shall not be forfeited if such
Interested party falls to produce such evidence within fifteen 1
(l 5) days, the goods may be seized and sub~ected to forfeiture stress of weather, or other necessity ua:~a~ing was due to accident
by the District Collector; is subsequently approved
proceedings: Provided, That during the proceedings, the Interested
party shall be given the opportunity to prove or show the source of
(e) Goods which are fraudulently conceal d .
the goods and the payment of duties and taxes thereon: Provided, to law from any public or private war e m or rem~ved contrary
further That when the warrant of seizure has been Issued but container freight station under customs ehous~, . container yard, or
subsequent documents presented evidencl~g proper payment are superv1s1on·
found to be authentic and In order, the Dlstnct Collector shall, within (f) Goods, the importation or exportar . '
fifteen (15) days from the receipt of the motion to quash or recall the '
attempted contrary to law, or an ~~n of wh,~h are effected or
warrant cause the Immediate release of the goods seized, subject to 00
or exportation, and all other go~d~ whic~f ~ro~~bited .i'!1portation
clearan~e by the Commissioner: Provided, finally, That the release District Collector, have been used are or we~'" t ~pinion of the
thereof shall not be contrary to law. instruments in the importation or' the exportat_en ef hto be used as
ion o t e former·
(g) Unmanifested goods found on any vessel or airc ft .f '.,
• Note that searches of dwelling houses require a search warrant therefor ls required; ra I mani est
issued by a judge.
(h) Sea sto~es or aircraft stores adjudged by the District Collector
Seizure and Forfeiture to be excessive, when the duties and taxes assessed by the District
Collector thereon are not paid or secured forthwith u
of the same; Pon assessment

Sec. 216. Exercise of Power of Seizure. - Any person exercising (i) Any package of imported goods which is found upan examination
police authority under this Act has the power and duty to seize any to contain goods not specified in the invoice or goods declaration
vessel, aircraft, cargo, goods, animal or any other movable property lncl~dlng all other packages purportedly containing Imparted goods
when the same is subject to forfeiture or when they are subject of a similar to those declared in the Invoice or goods declaration to be the
fine Imposed under this Act. contents of the mlsdeclared package;
Sec. 1113. Property Subject to Seizure and Forfeiture. _ U) Boxes, cases, trunks, envelopes, and other containers of
Property that shall be subject to seizure and forfeiture include: whatever character used as receptacle or as device to conceal goods
(a) Any vehicle, vessel or aircraft, including cargo, which shall be which are subject to forfeiture under this Act or which are so designed
as to conceal the character of such goods;
used unlawfully In the Importation or exportation of goods or In
conveying or transporting smuggled goods In commercial quantities (k) Any conveyance actually used for the transport of goods
into or from any Philippine port or place. The mere carrying or subject to forfeiture under this Act, with its equipage or trappings,
holding on board of smuggled goods in commercial quantities shall and any vehicle similarly used, together with its equipment and
subject such vehicle, vessel, aircraft, or any other craft to forfeiture: appurtenances. The mere conveyance of smuggled goods by such
Provided, That the vehicle, vessel, aircraft or any other craft Is not transport vehicle shall be sufficient cause for the outright seizure
used as a common carrier which has been chartered or leased for and confiscation of such transport vehicle but the forfeiture shall
purposes of conveying or transporting persons or cargo; not be effected if It Is established that the owner of the means of
conveyance used as aforesaid, is engaged as common carrier and
(b) Any vessel engaging in the coastwise trade which shall have on
not chartered or leased, or that the agent in charge thereof at the
board goods of foreign growth, produce, or manufacture In excess
time, has no knowledge of the unlawful act; and
of the amount necessary for sea stores, without such goods having
been properly entered or legally imported; (I) Goods sought to be imported or exported:
(c) Any vessel or aircraft into which shall be transferred cargo (1) Without going through a customs office, whether the act was
unlo_aded contrary to law prior to the arrival of the importing vessel consummated, frustrated, or attempted;
or aircraft at the port of destination;
(2) Found In the baggage of a person arriving from abroad and
(d)_ ~ny part of the cargo, stores, or supplies of a vessel or aircraft undeclared by such person;
arnvin? fro~ a for~lgn port which is unloaded before arrival at the
:ssel s or aircrafts port of destination and without authority from (3) Through a false declaration or affidavit executed by the owner,
Importer, exporter, or consignee concerning the importation of such
e cu stoms officer; but such cargo, ship, or aircraft stores and
goods;
 TARIFF AND CUSTOMS CODE OF
TAX MADE LESS TAXING: 1978
684 WITH CODALS AND CASES As Amended by the CUSTOMS MODERNIZATION AN,D TARIFF ACT 685
A REVIE WER (R.A. 10863 or the CMTA)

f lse Invoice or other document executed

- the Com~issioner,_or after the lapse of the period of review b th
th Commissioner, whichever is earlier. Y e
(4) on the streng ~e~, !xporter, or consignee concerning the
by the owner, imp~atlon of such goods; or
Importation or expo Sec. 11~8. Sale of ~erlshab/e Goods During Forfeiture
th ractice or device contrary to law by means of Proceedings. - Upon motion of_the importer of the perishable goods,
(5) Through any o er Pd through a customs office to the prejudice the g_oods may be _sold at a public auction during the pendency of the
which such goods entere
of the government. forfeiture p_roceedmgs. The proceeds of the auction shall be held in
escrow until the final resolution of the proceedings.
1 s not subject to Forfeiture In, the Absence
Sec. 1114, Prop:~:ence _ The forfeiture of the vehicle, vessel Sec. 1119. Servic~ of Warrant of Seizure. - The District Collector
of P_rlma Fac~f be eff~cted If It Is established that the owne~ shall cause the service of warrant of seizure to the owner or importer
or aircraft sha
th no t In charge of the means of conveyance used
of ~he goods or the a~thorized representative thereof. The owner
thereof or e agen knowledge of or participation In the unlawful
or importer shall be given an opportunity to be heard during the
as afore~~idd pr/ma facle presumption shall exist against the forfeiture proceedings.
act: e 'i , or aircraft under any of the following circumstances:
Provvesse
vehicle,
For the purpo~e of serving the warrant, the importer, consignee,
(a) If the conveyance has been used for smuggling before; or person holding the bill of lading or airway bill shall be deemed
(b) If the owner Is not In the business for which the conveyance Is the "owner" of the goods. For the same purpose, •authorized
generally used; and representative" shall include any agent of the owner and if the owner
or the agent is unknown, any person having possession of the goods
(c) If the owner is not financially In a position to own such at the time of the seizure.
conveyance.
Service of warrant to an unknown owner shall be effected by posting
Se 11 1s conditions Affecting Forfeiture of Goods. - The the warrant for fifteen ( 15) days in a public place at the concerned
fo;~iture shall be effected only when and while the goods are In district, and by electronic or printed publication.
the custody or within the jurisdiction or customs officers, or In the
possession or custody of or subject to the control of the Importer, Sec. 1120. Description, Classification and Valuation of Seized
exporter, original owner, consignee, agent of another person effecting Goods. - The District Collector shall cause the preparation of a list
the Importation, entry or exportation In question, or In the possession and particular description, classification, and valuation of the goods
or custody of or subject to the control of persons who shall receive, seized and valuation of identical or similar goods.
conceal, buy, sell, or transport the same, or aid In any of such acts,
with knowledge that the goods were Imported, or were the subject of Sec. 1121. Proceedings in Case of Property Belonging to
an attempt at Importation or exportation contrary to law. Unknown Parties. - If, within fifteen ( 15) days after service of
warrant, no owner or agent can be found or appears before the
sec. 1116. Seizure or Release of Goods. - The District Collector District Collector, the seized goods shall be forfeited ipso facto In
shall issue an order of release or a warrant of seizure within five favor of the government to be disposed of In accordance with this
(5) days, or two (2) days In case of perishable goods, upon the Act.
recommendation of the alerting officer or any other customs officer.
The District Collector shall lmmedlately make a report of such seizure Sec. 1122. Seizure of Vessel or Aircraft for Delinquency
or release to the Commissioner. of Owner or Officer. - When the owner, agent, master, pilot
in command or other responsible officer of any vessel or aircraft
Sec. 1117. Warrant of Seizure or Order of Release. - The becomes liable for any violation of this Act, the vessel or aircraft
District Collector shall have the authority to Issue a warrant of may be seized and be subjected to forfeiture proceedings for the
seizure of the goods upon determination of the existence of probable settlement of any fine or penalty for which such person Is liable. In
cause and in case of nonexistence thereof, the Issuance of order of determining whether or not to seize a vessel or aircraft, the Bureau
release. In case the District Collector Issued an order of release, the shall take Into account t he amount of fine or penalty In relation to
District Collector shall Immediately transmit all the records to the the commercial Impact that may be caused to International trade by
Commissioner who shall automatically review within forty-eight (48) the seizure or detention as well as the value of the vessel or aircraft.
hours, or within twenty-four (24) hours In case of perishable goods.
When no decision is made by the Commissioner within the prescribed sec. 1123. Burden of Proof In Forfeiture Proc~dings. - In all
period, the Imported goods shall be deemed released. proceedings for the forfeiture of any vehicle, vessel, aircraft, or goods
under this Act, the burden of proof shall be borne by the claimant.
The lifting of the alert order shall be Issued by the District Collector
only upon the affirmation of the decision of the District Collector by Sec 1124 settlement of Pending Seizure Case by Payment of
Fin; or Redemption of Forfeited Goods. - Subject to the approval
 TARIFF AND CUSTOMS CODE OF 1978
As Amended by the CUSTOMS MODERNIZATION AN1D TARIFF ACT 687
TAX MADE LESS TAXING: (R.A. 10863 or the CMTA)
686 A REVIEWER WITH CODAL5 AND CASES

Appeals to protest cases shall be governed by Section 114 of this

Act..
District Collector may allow the settleme nt
of the Commissi oner, th~ redemption of forfeited goods, during the The decision of the Commissioner may be served through the
by payment of fine or t e roceedlng . However, the Commissioner recognize d modes of service under existing law.
course of the forfeiture by redemption of any forfeiture case on
may accept the settlemen a ment of fine shall be allowed when Sec, 1127. Automatic Review In Forfeiture Cases. - The
appeal. No settleme n\:J ciisdrepancy in duties and taxes to be paid commiss ioner shall automatically review any decision by the District
there ls fraud or when ed and what is declared amounts to more Collect.or adverse to the governm ent. The entire records of the
between what Is determIn case shall be elevated within five (5) days from the promulgation
than thirty percent (30%).
of the decision. The Commissioner shall decide on the automatic
t b payment of fine, the owner, importer, review within thirty (30) days, or within ten (10) days in the case
In case of settlemen or\ ent shall offer to pay a fine equivalen t
exporter, or consl~;;: o) of ihe landed cost of the seized goods. In of perishab le goods, from receipt of the records. When no decision
to thirty percent redemption the owner, importer, exporter, or Is rendered within the prescribed period or when a decision adverse
case of settlemen:t~iall offer to pay the redeemed value equivalen t to the governm ent is rendered by the Commissioner involving goods
with FOB or FCA value of ten million pesos (Pl0,000,000.00) or more,
~i~~~n~~ n~~3~erc ent ( 100%) of the landed cost.
the records of the decision of the Commissioner, or of the District
f the fine or payment of the redeemed value, Collector under review, as the case may be, shall be automatically
Upon p~ym~n~I ~e released and all liabilities which may attach to elevate'cl within five (5) days for review by the Secretary of Finance.
the goods s ha be
discharged without prejudice to the filing of The decision issued by the Secretary of Finance, whether or not a
the goo s s a11
administrative or criminal case. decision was rendered by the Commissioner within thirty (30) days,
or within ten (10) days in the case of perishable goods, from receipt
Settlement of any seizure case by payment of the fine or redempti on
of the records, shall be final upon the Bureau.
of forfeited goods shall not be allowed when there Is fraud, or where
the importation ls prohibited or the release of the goods ls contrary Sec. 1128. Automatic Review by the Secretary of Finance
to law. In other Cases. - In cases not involving protest or forfeiture, the
Sec 11 2s Decision In Forfeiture Cases. - In forfeiture cases, Commissioner shall automatically review any decision by the District
the ·District. Collector shall issue an order for hearing wlthi~ fifteen Collect.or that Is adverse to the government. The records of the case
( l5) days, or five (5) days in case of perishable goods, from 1ssuan~e shall be elevated to the Commissioner within five (5) days from the
of the warrant. The District Collector shall rende~ a decision within promulga tion of the decision. The Commissioner shall decide on the
thirty (30) days upon termination of the hea_n~g, or w_ automati c review within thirty (30) days from receipt of the records,
l thln ten or within ten (10) days in the case of perishable goods. When no
(10) days in case of perishable goods. The dec1s1on shall include a
declaration of forfeiture, the imposition of a fine or such other action decision Is rendered within the prescribed period or when any decision
as may be proper. rendered by the Commissioner Is adverse to the government, the
records of the ease under review shall be automatically elevated
within five (5) days for the review of the Secretary of Finance.
Toe decision Issued by the Secretary of Finance, whether or not a
Appeal in forfeiture cases
decision was rendered by the Commissioner within thirty (30) days
from receipt of the records, or within ten (10) days in the case of
perishable goods, shall be final upon the Bureau.
Sec. 1126. Appeal to the Commissioner. - In forfeiture cases,
the person aggrieved by the decision of a District Collector may,
within fifteen (15) days or five (5) days In case of perishab le goods,
from receipt of the decision, file a written notice of appeal, together • Procedu re In seizure and forfeiture cases:
with the required appeal fee to the District Collector, furnishin g a An officer reports to the District Collector
copy to the Commissioner. The District Collector shall immedia tely 0
transmit all the records of the proceedings to the Commissioner, who o Within five days from the report, the District Collector may
shall review and decide on the appeal within thirty (30) days from Issue either a warrant of seizure or order of release;
receipt of the records, or fifteen (15) days in the case of perishab le
goods: Provided, That if within thirty (30) days, no decision Is • In either case, he must make a report to the Commiss ioner
rendered, the decision of the District Collector under appeal shall of Customs
be deemed affirmed. An appeal flied beyond the period herein
prescribed shall be dismissed. But If It's an order of release, he ~ust aIso transmit all the records
• to the Commis sioner for automat ic review
 TARIFF AND CUSTOMS CODE O
688
TAX MADE LESS TAXING: As Amended by the CUSTOMS MODERNIZArio19~~'o 689
A REVIEWER WITH CODALS AND CASES
(R.A. 10863 or the CMTA) TARIFF ACT

The Commiss ioner has 48 hours to decide (24 if perishabl e to effect any search, seizure or arrest It h
0
goods) police officer and other national law ~nfor~ a11 tbe t_he duty of any
assistance . ers O give such lawful
. . n within the time period, the goods can be
If no d ec1s10
0
released Sec. 1209. Arrest of Vessel or Aircraft De rtl
Hade. - When a vessel or aircraft arrivin ' :· _ng 8efo~ Entry
0 If it's a warrant of seizure, the Distri~ Collector shall cause it Customs District from a foreign port de ari! 1th1n the limits of a
to be served to the importer, who will _ h a~e a chance to have before entry shall have been made not b~ing t t attempts to depart
his say on the matter in front of the District Collector stress of weather, duress of enemies or other ~reunt? compelled by
Collector of the port may cause the a;rest and b ~ce~i1 the District
• The importer has the burden of proof though or aircraft to the most convenient port with th~ng _ate such vessel
concerned agencies. assis ance of other
• He can also settle if he wants to, but no settleme nt is
allowed if there is fraud or the discrepan cy is more than
30%
Authority of the Commissioner to Make Compromise
0 The District Collector shall render a decision within 30 days
upon terminati on of the hearing ( 10 days if perishabl e goods)
Se_c. 113S1.b~uctthtorltyh of the Commissioner to Hake Compro-
0 The person aggrieved may appeal to the Commiss ioner within mise. - u Je o t e approval of the Secretary of Fl th
15 days (five if perishabl e goods) Commiss!oner ~ay c?mpromise any administrative ca~~nc:risin~
~nd edr. th1sthAct m~~lvmfg the imposition of fines and surcharges,
The commiss ioner has 30 days to decide (15 if perishabl e me1u mg os~ ansm~ rom the conduct of a post clearance audit
goods) unless otherwise specified by law. '
Cases Involving !orfeiture proceedings shall however not be subject
Automatic review in forfeiture cases to any compromise.

• If the decision of the Collector in forfeiture cases is adverse to

the governme nt, it will result into an automati c review by the
• Note that cases involving forfeiture proceedings cannot be
Commiss ioner comprom ised.
o The Commiss ioner has 30 days to decide automati c review
cases (10 if perishabl e goods) Taxpaye r remedies
Protest
If no decision is rendered or when the Commiss ioner's
decision is still adverse to the governm ent and the value
of the goods is Pl0,000, 000 or more, it'll go up to the Sec. 1106. Protest. - When a ruling or decision of the District
Secretary of Finance on automati c review. Collector or customs officer involving goods with valuation, rules
of origin, and other customs issues Is made, except the fixing of
• Once the administr ative remedies are exhauste d, then the case
fines In seizure cases, the party adversely affected may appeal by
may be elevated to the CTA division via petition for review within way of protest against such ruling or decision by presenting to the
30 days Commissioner at the time when payment of the amount claimed to be
due the government is made, or within fifteen {15) d~ys there~~er,
a written protest setting forth the objection to the ruling or deas1on
Arrest In question and the reasons therefore.
Subject to the approval of the Secretary of Finance, the Comm!ssioner
shall provide such rules and regulations as to the requirement
Sec. 218. Authority to Require Assistance and Informat ion. -
Any person exercising police authority may demand the assistance of for payment or nonpayment of the disputed amount and In case
of nonpayment, the release of the Importation under protest upon
and request Information from the Philippine National Police (PNP) the
AFP and other national law enforcement agencies, when neces~ary, posting of sufficient security.
 TARIFF AND CUSTOMS COD
TAX MADE LESS TAXING: 1978

-
690 As Amended by the CUSTOMS MODERNiiA~ , 691
A REVIEWER WITH CODALS AND CASES (RA 10863 ,, ,ON AND TARI FF ACT
· · or the CMTA)

sec. 1101. Protest Exclusive Remedy fn Protestable Case. _ (b) When the owner, lmporte~ consignee •
st
In all cases subject to protest, the interested party who desires to due notice, falls to file the go~ds declaratl~~ '"~:~ ed party after
have the action of the District Collector revlewe~, shall file_a protest period in Section 407 of this Act: Provided ttte preScnbed
as provided in section 1106 of this Act, otherwise the action of the declaration shall include provisional or lncom'pletea ed tedrm g~ds
.d b th goo s ec1arat,on
District Collector shall be final and conclusive. deem~d va l I y e Bureau as provided in Section 403 of this Act.
sec. 1108. Form and Scope of Protest. - A pro~est shall be filed For this purpo~e, It Is the duty of the District Collector to post a list of
in accordance with the prescribed rules and regulations promulgated all packages d1scharg~d ~nd their consignees, whether electronically
0 ~ physically In the D1stnct Office, or send a notice to the consignee
under this section. It shall specify the particular decision or ruling
of the District Collector for which protest is being made, and shall within five (5) days from the date of discharge; or
indicate the particular ground or grounds upon which the protesting (c) ~aving fil~d such goods declaration, the owner, importer,
party bases the claim for relief. The scope of a protest shall be consignee o~ interested party after due notice, fails to pay the
limited to the particular goods subJect of a goods declaration, but
assessed duties, taxes an~ other charges thereon, or, if the regulated
any number of issues may be raised in a. protest with reference to
goods failed to comply with Section 117 of this Act, within fifteen
the goods declaration constituting the subJect matter of the protest.
(15) days from the date of final assessment: Provided, That if such
Sec. 1109. Samples to be Furnished by Protesting Parties. - If regulated goods are subject of an alert order and the assessed
the nature of the goods permit, importers filing protests involving duties, taxes and other charges thereof are not paid within fifteen
questions of fact must, upon demand, present to the Commissioner (15) days from notification by the Bureau of the resolution of the
samples of the goods which are the subject matter of the protest. alert order, the same shall also be deemed abandoned; or
The samples of the goods shall be verified by the customs officer who
made the classification, against which the protests are filed . ( d) Having paid the assessed duties, taxes and other charges, the
owner, Importer or consignee or interested party after due notice,
Sec. 1110. Decision In Protest. - When a protest is filed In proper fails to claim the goods within thirty (30) days from payment. For
form, the Commissioner shall render a decision wit_hin thirty (30) this purpose, the arrastre or warehouse operator shall report the
days from receipt of the protest. In case the protest 1s sustained, in unclaimed goods to the District Collector for disposition pursuant to
whole or in part, the appropriate order shall be made, and the entry the provisions of this Act; or
reassessed, if necessary.
(e) When the owner or importer falls to claim goods in customs
bonded warehouses within the prescribed period.
• Procedure of protest cases The due notice requirement under this section may be provided by
o Collector makes a ruling on the valuation, rules of origin, and the Bureau through electronic notice or personal service: Provided,
other customs issues That for non-regular importers, notification shall be by registered
mall or personal service. For this purpose, the accredltatio~ of
EXCEPT the fixing of fines in seizure cases Importers, exporters, and other third parties shall Include provision
for mandatory receipt of electronic notices.
o Importer files a written protest with the Commissioner at the
time of payment or within 15 days after Sec 1130 Treatment and Disposition of Abandoned Goods. -
Exp~essly ~bandoned goods under paragraph (a) of Section 1129 of
o Commissioner has 30 days to decide the protest this Act shall Ipso facto be deemed the property of the government
and shall be disposed of In accordance with the provisions of this Act.
o In case of adverse decision by the Commissioner, Importer
files a petition for review before the CTA Division within 30 If the Bureau has not disposed of the abandoned goods, _the o7;t
days or Im orter of goods Impliedly abandoned may, at any time w n
thlrt/(30) days after the lapse of the prescribed period t~ Ille th~
Abandonment declaration, reclalmd th~ttodJ t:~v~i~r~s~:~d~~9le3~~1;:,q~a~~~eannd
have been compile w an s and fees due to the port
other charges, without prejudice to charge Incurred have been paid
Sec. 1129, Abandonment, Kinds and Effects of. - Imported goods or terminal olperatorf, tahse wg~~d~sfr~~e~ss~~ms custody.
are deemed abandoned under any of the following circumstances : before the re ease o
have been Impliedly abandoned,
(a) When the owner, importer, or consignee of the Imported goods When the Bureau sells goods which d the proceeds of the
has been dlscovere , and
expressly signifies in writing to the District Collector the Intention to although no offense d d tax and all other charges
abandon the same; or sale, after deduction of any uty an
 TARIFF AND CUSTOMS CODE OF
As Amended by the CUSTOMS MODERNIZATION 197
TAX MADE LESS TAXING: ~·D 693
692 (R.A. 10863 or the CMTA) TARIFF ACT
A REVIEWER WITH CODALS AND CASES

made if It is certified by the Importer or consig

rovided In Section 1143 of this Act, shall be penalty for falsification or perjury, and upon
expenses lncurred aS P u~der pain of
t O th OSe P
ersons entitled to recei ve them or, when this satisfacto ry to the Collector concerned , that the ~ackaCtio_n of pr?Of
turned over•ble
. held at their disposal for a speclfied per10 · d. Aft
er the
is not pfoshsi ' citied period the balance shall be transferred to the has not been unlawfully imported into the Phllippines . ge in question
lapse o t e spe ' • f h. Act
forfeiture fund as provided in Section 1151 o t is . Sec. 907. Abateme nt or Refund for Deficiency i c
Pack ages. - If, upon opening
•
of any package a d nfi ·ontents
.
of
quantity of the goods is found to exist based up'on the ~ien:Y in th e
Abateme nt and Refund fi · h II b ·
de ~1en~ st~ e certified, under pain of penalty forefalsification
invoice such
or
p~rJUryf cut~tom~ officers concerned and upon the produCtion
Sec. 903 . Refund of Duties and Taxes. - Refund shall be granted o p~oo_ s t~w1~~·t· a~ t e shortage occurred before the arrival of the
where it is established that duties and taxes have been ov~rcharged goo s m e 11ppmes. Upon sufficient proof thereof th
as a result of an error in the assessment or goods declaration. abatemen t or refund of the duty shall be made. ' e proper
Where permission is given by the Bureau for goo~s originally declared Sec. 908. Abateme nt or Refund of Duties on Goods Lost or
for a customs procedure with payment of duties and taxes to be Destroye d A~er Arrlv~I. - The Bureau may abate or refund the
placed under another customs procedure, a refund shall be made of amount of d_u~1es accruing or paid on any goods that have been
any duties and taxes charged In excess_of t~e amount due under the lost due to inJury, theft, destruction through fire or through
new procedure, subject to such regulation issued for the purpose. other ~aus~s, upon satisfactory proof of the same, under any of
following circumstances:
A refund shall not be granted If the amount of duties and taxes
Involved Is less than five thousand pesos (PS,000.00): Provided, That (a) While 'within the territory of any port of entry, prior to unloading'
the secretary of Finance, in consultation with the Commissioner, may under the Bureau's supervision;
adjust the minimum amount specified In this Act, taking into account
the CPI as published by the PSA. (b) While remaining in customs custody after unloading;

sec. 904. Abatement of Duties and Taxes. - When goods have (c) While in transit from the port of entry to any port in the
not yet been released for consumption or have been placed under Philippines; and
another customs procedure, provided that no other offense or
(d) While released under sufficient security for export except in case
violation has been committed, the declarant shall neither be required of loss by theft.
to pay the duties and taxes nor be entitled to refund thereof in any
of the following cases: Sec. 909. Abateme nt and Refund of Defective Goods. - Under
conditions to be set by the Commissio ner, and with the approval
(a) When, at the request of the declarant, the goods are abandoned,
of the Secretary of Finance, an abatement and refund shall be
or as determined by the Bureau, the goods are destroyed or rendered
granted on imported or exported goods which are found defective
commercially valueless while under customs control. Any cost herein
or otherwise not in accordance with, the agreed specifications at the
incurred shall be borne by the declarant;
time of importation or exportation and are returned either to the
(b) When goods are destroyed or irrecoverably lost by accident or supplier or to another person designated by the supplier, subject to
force majeure, the remaining waste or scrap after destructio n, if the following conditions:
taken into consumption, shall be subject to the duties and taxes
(a) The goods have not been worked, repaired, or used in the
that would be applicable on such waste or scrap if imported in same
country of importation, and are reexported within, a reasonable
state; and
time ; and
(c) When there are shortages due to the nature of the goods.
(b) The goods have not been worked, repaired, or used in the
Sec. 905. Abatement for Damage Incurred During Voyage. _ country to which, they were exported, and are reimported within a
Except as otherwise provided, no abatement of duties shall be made reasonable time.
on account of damage incurred or deterioration suffered during the Use of the goods shall, however, not hinder the ref4nd if such use
voyage of importation; and duties will be assessed on the actual was indispensable to discover the defects or other circumstances
quantity imported as determined by the customs officers concerned. which caused the reexportation or reimportation of the goods.
Sec. 906. Abateme nt or Refund of Duty on Missing Package. As an alternative to reexportation or reimportation, the goods may
- . When any package appearing on the manifest or bill of lading or be expressly abandoned or destroyed or rendered commercially
airway bill is missing, an abatemen t or refund of the duty shall be
694 TAX MADE LESS TAXING:
A REVIEWER WITH CODAL.S AND CASES TARIFF AND CUSTOMS C
As Amended by the CUSTOMS MODERODE OF 1978
( R.A. 10863 or theNIZATION
CMTA)
AN'D
TARIFF ACT
695

valueless under customs control as the Bureau may decide. In such

case, the importer shall not be entitled to an abatement or a refund Within thirty (30) days from .
if it does not defray the costs of such abandonment, destruction, or Commissioner, the case may also ~~ceipt of the decision of
. . appealed to the CTA. the
rendition. Notwithstanding the provisions in th .
Sec. 910. Abatement of Duty on Dead or Injured Animals. _ filing of claims for refund of nationaleiJ:~~eding paragraphs, the
Where It is certified, under pain of penalty for falsification or perjury, be governed by the provisions provid d al revenue taxes shall
and upon production of proof satisfactory to the Bureau that an amended. e under the NIRc of 19971 as
animal subject of Importation dies or suffers injury before arrival
or while in customs custody, the duty due thereon shall be abated
provided that its carcass on board or in customs custody is removed • Claims for refund must be made In .. .
in the manner required by the Bureau and at the expense of the Bureau within 12 months from dat w;iting and filed with the
O
importer. taxes e payment of duties and
Sec. 911. Investigation Required in Case of Abatements and
Refunds. - The Customs Officer concerned shall, in all cases of Advance Classification Ruling
abatement or refund of duties, submit an examination report as to
any fact discovered which indicates any discrepancy and cause the
corresponding adjustment on the goods declaration.
Sec. 1100. Classification Ruling. _ An im
Sec. 912. Refund Arising from Correction of Errors. - Manifest may file a written application for an advan porter or exporter
clerical errors made on an invoice or entry, errors in return of classification of goods with the Commission c~hru~ng 0 ~ the tariff
weight, measure and gauge, when duly certified under penalties of render a ruling within thirty ( 30) days fro~ e _omm1ss1on shall
documented application. ' receipt of a properly
falsification or perjury by the surveyor or examining officer when
there are such officers at the port, and errors in the distribution of
Whe~ a decl_are~ tariff classification of goods, not sub 'ect of a
charges on invoices not involving any question of law and certified pending application for advance ruling, is in dispute, the]importer,
under penalties of falsification or perjury by the examining customs exporter, or the Bureau shall submit the matter to the co · ·
officer, may be corrected in the computation of duties, if such errors for a ruling, without prejudice to the application of Sectio~~~~o~
are discovered before the payments of duties, or if discovered within this Act on ':protest''.: Pr~vided, That such rulings of the Commissiin
one (1) year after release from customs custody of Imported goods on commodity class1ficat1on shall be binding upon the Bureau, unless
upon written request and notice of error from the importer, or upon the Secretary of Finance shall rule otherwise.
statement of error certified by the District Collector.
Sec. _1101. V~luation Ruling. - An importer or exporter may file
For the purpose of correcting errors specified in the next preceding a wr_itte~ application ~or an advance valuation ruling on the proper
paragraph, the Bureau is authorized to make refunds within the application of a specific method on customs valuation of specific
statutory time limit. goods as prescribed in Title VII, Chapter 1 of this Act.
Sec. 913. Claims for Refund. - All claims and application for The application for a valuation ruling shall be filed with the
refund of duties and taxes shall be made in writing and filed with Commissioner who shall issue a ruling within thirty (30) days from
the Bureau within twelve (12) months from the date of payment of submission of the application form and supporting documents as
duties and taxes. may be required by rules and regulations.

If, as a result of the refund of duties, a corresponding refund of When the valuation method of goods not subject of an application for
internal revenue taxes on the same importation becomes due, the advance valuation ruling or the declared customs value is in dispute,
Bureau shall cause the refund of internal revenue taxes in favor of the matter shall be resolved in accordance with Section 1106 of this
the importer after issuance of a certification from the Commissioner Act on " protest."
of Internal Revenue, when applicable. Sec. 1102. Ruling on the Rules of Origin. - An importer or
exporter may file a written application for a ruling on whether the
The importer may file an appeal of a denial of a claim for refund or goods qualify as originating under the rules of origin of the apphcable
abatement, whether it is a full or partial denial, with the Commissioner preferential trade agreement. The application for an advance ruling
within thirty (30) days from the date of the receipt of the denial. The on origin shall be filed with the Commissioner who shall act on the
Commissioner shall render a decision within thirty (30) days from the appllcatlon within thirty ( 30) days from receipt of the applicatlo~ and
receipt of all the necessary documents supporting the application. supporting documents as may be required by rules and regulations.

I
 TAX MADE LESS TAXING:
696 A REVIEWER WITH CODALS AND CASES

for
About the Author
Wh the declared origin of the goods, not subject of a request
en on origin is in dispute, the matter shall be resolved
11
advance ru ce ng ' " t
hi Act on pro es ·t "
In accordan with Section 1106 oft s Ignatius Michael "Mickey" Ingles is a student-athlete-tumed-
Sec, 1103, conditions for App/feat/on and Effect of Advanc e Jawyer.
Ru/Ing. _ An application for an advance ruling shall cover only
one
(l) product or Item. The application for advance ruling shall be filed He splits his time between working as an associate in the
at least ninety (90) days before the importation or exportation of the Law Firm of Ingles Laurel & Calderon and teaching as a full-time
product or Item, as the case may be. professor at the Ateneo Law School, where he teaches Constitutional
Sec, 1104. Administrative and Judicial Appeals . - An aggrieved
Law, Tax Law, Emerging Issues in Sports Law, and Robots, Artificial
party may, within thirty (30) days from receipt of an adverse ruling Intelligence, and the Law.
or decision, appeal the same to the CTA without prejudice to the Mickey has also written various articles on sports law, the law of
authority of the Secretary of Finance to review decisions adverse to religion, the law of robots, and the constitutional aspects of student
the government in accordance with Sections 1127 and 1128 of this
Act, as the case may be. social media use, which have been published in the Philippines,
Europe, and the United States. He is the founder and editor-in-chief
e
of Batas Sportiva, the first and only law blog dedicated to Philippin
sports law, writes about sports law for Rappler and Spin.ph , and sits
• One of the new features of the CMTA is the opportunity for th
importe~ to get an adv~nce ruli.ng, which allows the importer t~ in the LawinSport editorial board. He is also the author of Laws for
get a ruling before the 1mportat1on or exportation of goods. Sports and the Sporty , a handy guidebook on Philippine sports law.

o !he im~orter must be filed within 90 days before the He graduated salutatorian from the Ateneo Law School in
1mportat1on or exportation of the product or item. 2012, where he was also given the St. Thomas More Award for
Most Distinguished Graduate. He ranked first in the 2012 Philippin
e
from the Georget own Univers ity
• And it must cover only one product or item. Bar Exams . He obtaine d his LL.M.
Law Center (Hoya Saxa!) in 2016. He is a licensed attorney in the
0
The ruling can cover either the valuation of the goods or on Philippines and the State of New York.
the rules of origin.
When not busy lawyering, Mickey can be found in the soccer
field, struggling (against father time and fitness and fat~ess~ to
relive his glory days as a student-athlete. He was the starting right
winger of the Ateneo Men's Football team that won .a ~ecord three
straigh t University Athletics Association of the Phlhppines .(UAAP)
championships from 2004-2 006. He was the team captain from
2005-2 006 and was named 2006 UAAP Athlete-Scholar of the Year.
Aside from his obvious love for futbol (FC Barcelona for life~a~~
11
football (Go, Pats!), he is also an avid baskedtbha ; 1~-h ~~~~ think
over Lebron -which isn't really a debate. An e
that Tom Brady now plays for the Buccaneers.
R law (and proud!), but
He is a BTS ARMY .me~be r from . av~~~re from Hufflepuff... if
will still consider you his friend. eve~/ J/Lee Ji-eun. If you're Into
1 1
you buy him a PSS or connect him .~ n adult novel, Alinam:
fiction, Mickey also wrote the exciti~g Y~~h\o u can find In any of
Diego Domingo and the Mandato Ruiz, w
your favorite bookstores. d
on Twitter, lnstagram, an
You can follow his ramblings
Facebook :@MickeyinglesLa.W.