Article 102p. 102

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

abandonment, may seek approval from the Bureau to

forward the goods saved from the wreck to the ports of

destination without going through the customs office in

the district in which the goods were cast ashore or

unloaded. Upon approval, the goods may be forwarded

with particular manifests and duly certified by a customs

officer in charge of the goods.

The owner of the vessel or aircraft may be permitted

to

export

the

remains

of

the

wreck

upon

proper

examination and inspection. The remains of a wrecked

vessel shall include not only its hull and rigging, but also

all sea stores, goods and equipment, such as sails, ropes

and chain anchors.

SECTION 418. Derelicts and Goods from Abandoned

Wrecks. — Derelicts and all goods recovered from sea or

from abandoned wrecks shall be under the jurisdiction of

the port where the goods arrive, and shall be retained in

the custody of the Bureau. If not claimed by the owner,

underwriter or salvor, the same shall be deemed as

property of the government.

When such goods are brought into port by lighters or

other craft, each vessel shall submit a manifest of their

respective cargo.

The customs officer nearest the scene of the wreck

shall take charge of the goods saved and shall give

immediate notice to the District Collector or the nearest

customs office.

In order to prevent any attempt to commit fraud, the

District Collector shall be represented at the salvage of

the cargo by customs officers who shall examine and

receive the inventory made on the cargo.

Derelicts and goods salvaged from foreign vessels or

aircrafts recovered from sea or wreck are prima facie

dutiable

and

may

be

entered

for

consumption

or

warehousing. If claimed to be of Philippine production,

and consequently conditionally duty-free, proof must be

submitted as in ordinary cases of reimportation of goods.

Foreign goods landed from a vessel or aircraft in distress

is dutiable if sold or disposed of in the Philippines.

Before any goods taken from a recent wreck are

admitted to the customs territory, the same shall be

appraised, and the owner or importer shall have the same

right to appeal as in ordinary importation.

No

part

of a Philippine vessel or aircraft or its

equipment,

wrecked

either

in

Philippine

or

foreign

waters, shall be subject to duty.

CHAPTER 2 Examination of Goods

SECTION 419. Examination of Goods. — Examination

of

goods,

when

required

by

the

Bureau,

shall

be

conducted immediately after the goods declaration has

been lodged. Priority in the examination shall be given to

live animals, perishable goods and other goods requiring

immediate examination.

Whenever necessary, a system of coordination and

joint examination of goods shall be established by the

Bureau and other regulatory agencies under existing laws

and regulations.

As a general rule, the Bureau may examine the goods

in

the

presence

of

the

declarant

or an authorized

representative. Examination of the goods in the absence

of the declarant or authorized representative may be

allowed in exceptional circumstance and for valid and

justifiable grounds, as may be defined by regulations

promulgated

by

the

Secretary

of

Finance,

upon

recommendation of the Commissioner. The Bureau may

require the declarant to be present or to be represented

at

the

examination of the goods or to render any

assistance necessary to facilitate the examination.

The Bureau shall take samples of the goods only

when needed to establish the tariff description and value

of goods declared, or to ensure compliance with this Act.

Samples drawn shall be as minimal as possible.

SECTION

420.

Conditions

for

Examination.

—

Pursuant

to

internationally

accepted

standards,

the

Bureau may adopt nonintrusive examination of goods,

such as the use of x-ray machines.

Physical examination of the goods shall be conducted

when:

(a) It is directed by the Commissioner on account of a

derogatory information;

(b) The goods are subject to an Alert Order issued by

competent authority;

(c) The goods are electronically selected for physical

examination;

(d) There are issues and controversies surrounding

the goods declaration and the import clearance process;

or

(e)

The

importer

or

declarant

requests

for

the

examination of the goods.

The

Commissioner

may

exempt

from

physical

examination the goods of authorized economic operators

or

of

those

provided

for

under

any

existing

trade

facilitation program of the Bureau.

Physical

examination,

when

required,

shall

be

conducted in an expeditious manner.

SECTION 421. Duties of Customs Officer Tasked to

Examine the Imported Goods. — In the examination,

classification, and valuation of the goods, the customs

officer shall:

(a) Determine whether the packages for examination

and their contents are in accordance with the goods

declaration, invoice and other pertinent documents;

(b)

Take

samples

of

the

imported

goods

for

examination or laboratory analysis when necessary;

(c) Issue a receipt for a sample taken and retained

during examination; and

(d) Report whether the goods have been correctly

declared as to value, quantity, measurement, weight,

tariff classification and not imported contrary to law.

Failure on the part of the customs officer to perform

the above duties shall be penalized according to Section

1431 of Title XIV of this Act.

SECTION

422.

Customs

Expenses

Constituting

Charges on Goods. — The cost of examination shall be for

the account of the importer or exporter, subject to proper

accounting and documentation. All expenses incurred by

the Bureau for the handling or storage of goods and

other necessary operations shall be chargeable against

the goods, and shall constitute a lien thereon.

CHAPTER 3 Assessment and Release

SECTION 423. Determination of the De Minimis

Value. — No duties and taxes shall be collected on goods

with

an

FOB

or

FCA value of ten thousand pesos

(P10,000.00) or below. The Secretary of Finance shall

adjust the de minimis value as provided herein, every

three (3) years after the effectivity of this Act. The value

herein stated shall be adjusted to its present value using

the CPI, as published by the PSA.

SECTION 424. Duty of Customs Officer Tasked to

Assess Imported Goods. — For purposes of assessing

duties and taxes on imported goods, the customs officer

shall classify, value, and determine the duties and taxes to

be paid. The customs officer shall prepare and submit an

assessment report as established under this Act.

SECTION

425.

Tentative

Assessment

of

Goods

Subject to Dispute Settlement. — Assessment shall be

deemed tentative if the duties and taxes initially assessed

are disputed by the importer. The assessment shall be

completed upon final readjustment based on the tariff

ruling

in

case

of

classification dispute, or the final

resolution of the protest case involving valuation, rules of

origin, and other customs issues.

© Compiled by RGL

102 of 201