Article 104p. 104

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

be issued by the Bureau after conducting the necessary

public hearings and consultations with the concerned

sectors.

TITLE V Export Clearance and Formalities

CHAPTER 1 Export Clearance and Declaration

SECTION

500.

Export

Declaration.

—

All goods

exported from the Philippines, whether subject to export

duty or not, shall be declared through a competent

customs

office

through

an

export

declaration,

duly

signed electronically or otherwise by the party making

the declaration.

The description of the goods in the export declaration

must

contain

sufficient and specific information for

statistical purposes as well as for the proper valuation and

classification of the goods.

SECTION

501.

Export

Product

to

Conform

to

Standard Grades. — If applicable, products shall conform

to

export

standard

grades

established

by

the

government. The packaging of the said goods shall

likewise be labeled and marked in accordance with

related laws and regulations. Export declaration may not

be

granted

for

goods

violating

the

aforementioned

requirements.

SECTION 502. Lodgement and Processing of Export

Declaration. — The Bureau shall promulgate rules and

regulations to allow manual and electronic lodgement

and processing of the export declaration.

SECTION 503. Rules of Origin. — Pursuant to the

applicable

rules

of

origin, the Bureau or any other

designated

government

agency

may

determine

the

origin of goods for export and, if appropriate, issue the

corresponding

certificates

of

origin.

However,

the

exporter may adopt a self-certification system: Provided ,

That it is duly accredited by the Bureau or any other

authorized government agencies.

TITLE VI Customs Transit and Transshipment

CHAPTER 1 Customs Transit

SECTION

600.

Customs Transit in the Customs

Territory. — Customs transit within the customs territory

shall be allowed for goods except those intended for

consumption, to be transported as follows:

(a) From port of entry to another port of entry as exit

point for outright exportation;

(b) From port of entry to another port of entry or

inland customs office;

(c) From inland customs office to a port of entry as

exit point for outright exportation; and

(d) From one port of entry or inland customs office to

another port of entry or inland customs office.

A transit permit is required for goods transported

under customs transit. However, transfer of goods in

customs transit from one means of transport to another

shall be allowed: Provided , That any customs seal or

fastening is not broken or tampered.

The party responsible for the compliance of the

obligations imposed on customs transit shall ensure that

the goods are presented intact and in due course at the

customs office of destination. Failure to comply with the

aforementioned obligations or likewise failure to follow a

prescribed itinerary or period for delivery of the goods

may immediately subject the goods to the corresponding

duties, taxes and other applicable fines, penalties, and

surcharges.

SECTION 601. Duty and Tax on Goods Intended for

Transit.

—

Transit goods admitted for storage in a

customs bonded warehouse, or for outright exportation

at the port of destination or inland customs office, and

goods intended for transit covered by Republic Act No.

10668 , otherwise known as "An Act Allowing Foreign

Vessels to Transport and Co-Load Foreign Cargoes for

Domestic Transshipment and for Other Purposes", shall

not be subject to the payment of duties and taxes at the

port of entry: Provided , That any conditions and security

required by the Bureau are complied with.

Goods for consumption and other goods intended for

customs

transit

not

covered

by

the

immediately

preceding paragraph shall be subject to the payment of

duties and taxes at the port of discharge.

SECTION 602. Carrier's Security. — Carriers that

transport imported goods that shall be placed under

customs transit from a port of entry to other ports, shall

post a general transportation security amounting to at

least fifty thousand pesos (P50,000.00). Such security

shall ensure the complete and immediate delivery of

goods to the customs officer at the port of destination

and the payment of pertinent customs charges and

expenses and other transfer costs. The amount of the

security may be adjusted by the Commissioner, upon

approval of the Secretary of Finance.

CHAPTER 2 Customs Transshipment

SECTION 603. Customs Transshipment. — Goods

admitted for transshipment shall not be subject to the

payment of duties and taxes: Provided , That the goods

declaration

for

customs

transshipment

particularly

indicates such nature of the goods, duly supported by

commercial

or

transport

documents or evidence as

required by the Bureau.

Goods for transshipment must be exported from the

Philippines within thirty (30) days from arrival thereof. The

Commissioner may allow an extension of such period

after the establishment of valid reasons.

SECTION

604.

Goods

Entered

for

Immediate

Reexportation. — Where an intent of reexportation of the

goods is shown by the bill of lading, invoice, manifest, or

other satisfactory evidence, the whole or a part of a bill

comprising not less than one package may be entered for

immediate

reexportation

under security. The District

Collector shall designate the vessel or aircraft in which

the goods are loaded constructively as a warehouse to

facilitate the direct transfer of the goods to the exporting

vessel or aircraft.

Unless it shall appear in the bill of lading, airway bill,

invoice, manifest, or other satisfactory evidence, that

goods

arriving

in

the

Philippines

are

destined

for

transshipment, no exportation thereof will be permitted

except under entry for immediate reexportation under

sufficient security in an amount equal to the ascertained

duties, taxes and other charges.

Upon

the

reexportation

of

the

goods,

and

the

production of proof of landing beyond the limits of the

Philippines, the security shall be released.

TITLE VII Import Duty and Tax

CHAPTER 1 Basis of Valuation

SECTION 700. Sequential Application of Valuation

Methods.

—

Imported

goods

shall

be

valued

in

accordance with the provisions of Section 701 of this Act

whenever the conditions prescribed therein are fulfilled.

Where the customs value cannot be determined

under the provisions of Section 701 of this Act, it is to be

determined

by

proceeding

sequentially

through the

succeeding sections hereof to the first such section

under which the customs value can be determined.

Except as provided in Section 704 of this Act, it is only

when the customs value cannot be determined under

the provisions of a particular section that the provisions of

the next section in the sequence can be used.

© Compiled by RGL

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