Article 112p. 112

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

CHAPTER 2 Customs Warehouses

SECTION 801. Establishment and Supervision of

Customs Bonded Warehouses. — When the business of

the port requires such facilities, the District Collector,

subject

to

the

approval

of

the

Commissioner, shall

designate and establish warehouses for use as public and

private bonded warehouses, yards, or for other special

purposes. All such warehouses and premises shall be

subject to the supervision of the District Collector who

shall

impose

such

conditions

as

may

be

deemed

necessary for the protection of the revenue, and of the

goods stored therein. In the exercise of the District

Collector's

supervisory

functions

herein

and

in

the

Bureau's

implementation

of

this

chapter,

existing

contracts

of

private

operators

with

appropriate

government agency or regulator, such as, but not limited

to,

the

Philippine

Ports

Authority

(PPA),

Subic

Bay

Metropolitan Authority (SBMA) and Phividec Industrial

Authority

(PIA)

and

their

respective

authorities

and

powers

already

granted

by

law

pertinent

to

such

contracts, shall not be impaired or adversely affected.

Goods manufactured in whole or in part of imported

materials, and intended for exportation, may be made

and

manufactured

in

a

bonded

manufacturing

warehouse subject to the following conditions:

(1) The manufacturer shall file sufficient security for

the faithful observance of all laws, rules and regulations

applicable thereto;

(2) The application for the establishment of bonded

warehouses must be made in writing and filed with the

customs officer, describing the premises, the location,

and capacity of the same, and the purpose for which the

building is to be used, pursuant to Section 804 of this Act;

(3) From the receipt of the application, the customs

officer shall examine the premises, evaluate its location,

construction, and means provided for the safekeeping of

the goods;

(4)

The

customs

officer

may

authorize

the

establishment of the customs bonded warehouse, and

accept a bond for its operation and maintenance if the

applicant

was

compliant

with

the

prescribed

requirements; and

(5) The operator of the bonded warehouse shall pay

an annual supervision fee in an amount to be fixed by the

Commissioner.

SECTION

802.

Types

of

Customs

Bonded

Warehouses (CBWs). — Customs bonded warehouses

may

be

classified

as

either

manufacturing

or

nonmanufacturing.

Manufacturing customs bonded warehouse may be

of the following types: (a) miscellaneous customs bonded

warehouse; (b) customs common bonded warehouse; or

(c) industry-specific bonded warehouse.

Nonmanufacturing

customs

bonded

warehouse

include: (a) public bonded warehouse; (b) private bonded

warehouse; or (c) other customs facilities.

SECTION

803.

Types

of

Customs

Facilities and

Warehouses

(CFWs).

—

Customs

facilities

and

warehouses shall include:

(a) Container yard;

(b) Container freight station;

(c) Seaport warehouses; and

(d) Airport warehouses.

Subject to consultation with the NEDA and the DTI,

and based on prevailing economic circumstances, the

Secretary of Finance may, upon the recommendation of

the Commissioner, create or dissolve certain types of

warehouses.

SECTION

804.

Application

for

Operation

of

a

Customs

Warehouse.

—

Application

for

the

establishment of CBW and CFW shall be filed with the

District Collector where the CBW or CFW is located,

describing the premises, location, capacity and purpose

thereof.

Upon

receipt

of

such

application,

the

District

Collector shall examine the premises of such proposed

warehouse,

particularly its location, construction and

storage facilities. The District Collector, with the approval

of the Commissioner, may authorize the establishment of

customs warehouses, and accept the required security for

its operation and maintenance. The operator of such

CBW and CFW shall pay an annual supervision fee, as

determined by the Commissioner.

SECTION 805. Responsibility of Operators. — The

operator of a CBW or CFW shall comply with the customs

requirements on establishment, security, suitability and

management, including stock-keeping and accounting of

the goods, of the CBW or CFW.

Upon lawful demand, the operator of a CBW or CFW

shall allow authorized representatives of the Bureau

access to the premises at a reasonable time, and to all

documents, books and records of accounts pertaining to

the operations of the CBW or CFW.

In case of loss of the goods stored in a CBW or CFW

due to operator's gross negligence or willful misconduct,

the operator shall be liable for the payment of duties and

taxes due thereof. The government assumes no legal

responsibility over the safekeeping of goods stored in any

customs warehouse, yard or premises.

SECTION 806. Customs Control over CBWs and

CFWs. — The Bureau shall, for customs purposes, exercise

control

over,

direct

and

manage

CBWs

and

CFWs

pursuant to Section 303 of this Act and likewise over the

goods

thereat

pursuant

to

Section

301 of this Act:

Provided , That the Bureau shall not be liable for any loss

or damage of the goods stored for safekeeping in any

CBW, CFW, yard or premises.

SECTION 807. Discontinuance of CBW and CFW. —

The use of any CBW and CFW may be discontinued by

the District Collector when conditions so warrant, or upon

receipt of a written request from the operator thereof:

Provided , That all the requirements of the laws and

regulations have been complied with by said operator.

Where dutiable goods are stored in such premises, the

same must be removed at the risk and expense of the

operator: Provided, however , That the premises shall not

be relinquished, and its use shall not be discontinued

until after a careful examination of the account of the

warehouse shall have been made. Discontinuance of the

use of any warehouse shall be effective upon approval

thereof by the District Collector who shall, within ten (10)

days, inform the Commissioner of such action in writing.

Notice of discontinuance made by the operator shall

not result in the discharge from any duties, taxes, fees

and other charges imposed on dutiable goods in said

warehouse.

SECTION

808.

Warehousing

Security

on

Goods

Stored in CBWs. — For goods declared in the entry for

warehousing in CBWs, the District Collector shall require

the importer to post a sufficient security equivalent to the

computed duties, taxes and other charges, conditioned

upon the withdrawal of the goods within the period

prescribed by Section 811 of this Act or the payment of

duties, taxes and other charges and compliance with all

importation requirements.

SECTION 809. Withdrawal of Goods from CBWs. —

Imported goods shall be withdrawn from the CBWs when

the necessary withdrawal permit has been filed, together

with any related document required by any provision of

this Act and other regulations.

Goods entered under sufficient security as provided

in Section 1507 of this Act may be withdrawn at any time

for consumption, transit, or exportation. The withdrawal

must

be

made

by

the

CBW

operator

or

its

duly

authorized representative.

© Compiled by RGL

112 of 201