Article 113p. 113

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

SECTION 810. Release of Goods from CFWs. —

Imported

goods

shall

be

released when the goods

declaration is electronically lodged, together with any

related document required by any provision of this Act

and other regulations. All goods entered into the CFWs

shall be subject to the filing of a goods declaration within

the period specified under Section 407 of this Act.

SECTION 811. Period of Storage in CBWs. — Goods

entered for warehousing may remain in a CBW for a

maximum period of one (1) year from the time of its

arrival thereat. For perishable goods, the storage period

shall

be three (3) months from the date of arrival,

extendible for valid reasons, and upon written request, to

another three (3) months. Goods not withdrawn after the

expiration of the prescribed period shall be deemed as

abandoned, as provided under Section 1129 of this Act.

The Commissioner shall, in consultation with the

Secretary of Trade and Industry, establish a reasonable

storage period limit beyond one (1) year for bonded goods

for

manufacturing

and

intended

for

export,

the

processing into finished products of which requires a

longer period based on industry standard and practice,

subject to the approval of the Secretary of Finance.

SECTION 812. Exemption from Duty of Goods in

CBWs. — Goods duly entered for warehousing in CBWs

shall be exempt from duty and tax within the allowed

period for storage unless withdrawn for consumption,

exportation or transit to a free zone or another CBW, in

which case, such withdrawal will be subject to the

applicable rules and regulations on the liquidation of the

warehousing entry.

SECTION 813. Records to be Kept by CBW Operators.

— An account shall be kept by the Bureau of all goods

delivered to a CBW, and a report shall be made by the

CBW operator containing a detailed statement of all

imported goods entered and withdrawn from the CBW.

The Bureau shall specify the format of the report and may

require electronic submission.

All

documents,

books,

and

records

of

accounts

concerning

the

operation

of

any

CBW

shall,

upon

demand, be made available to the District Collector or the

representative of the District Collector for examination or

audit. For record purposes, all documents shall be kept

for three (3) years.

CHAPTER 3 Free Zones

SECTION

814.

When

Goods

are

Admitted

and

Withdrawn. — Imported goods shall be admitted into a

free zone when the goods declaration, together with

required documents, as required by existing laws and

regulations, are electronically lodged with the Bureau

and other relevant government authorities at the time of

admission.

Imported goods shall be withdrawn from the free

zone for entry to the customs territory when the goods

declaration

is

electronically

lodged,

together

with

required documents at the time of the withdrawal from

the free zone.

SECTION 815. Exemption from Duty and Tax of

Goods in Free Zones. — Unless otherwise provided by law

and in accordance with the respective laws, rules and

regulations of the free zone authorities, goods admitted

into a free zone shall not be subject to duty and tax.

SECTION 816. Movement of Goods into and from

Free Zones. — The entry of goods into a free zone,

whether directly or through the customs territory, shall be

covered by the necessary goods declaration for admission

or

transit.

Withdrawal

from

the free zone into the

customs territory shall be covered by the necessary goods

declaration for consumption or warehousing.

Transfer of goods from one free zone into another

free zone shall likewise be covered by the necessary

transit permit.

The

implementing

rules

and regulations on the

transit of goods admitted into, exported from, withdrawn

into the customs territory, and moved between free zones

shall be formulated and issued jointly by the Bureau and

the free zone authorities.

SECTION

817.

Coordination

with

Free

Zone

Authority. — To ensure compliance with customs laws

and regulations, the Bureau shall coordinate with the

governing authority of the free zone.

CHAPTER 4 Stores

SECTION 818. Stores for Consumption. — Stores for

consumption shall include:

(a) Goods intended for use by the passengers and the

crew on board vessels, aircrafts, or trains, whether or not

sold; and

(b)

Goods

necessary

for

the

operation

and

maintenance of vessels, aircrafts, or trains including fuel

and lubricants but excluding spare parts and equipment

which are either on board upon arrival or are taken on

board during the stay in the customs territory of vessels,

aircrafts, or trains used, or intended to be used, in

international

traffic

for the transport of persons for

remuneration

or

for

the

industrial

or

commercial

transport of goods, whether or not for remuneration.

SECTION 819. Stores to be Taken Away. — For

purposes of this chapter, "stores to be taken away" means

goods for sale to the passengers and the crew of vessels,

aircrafts, or trains with a view to being landed, which are

either on board upon arrival or are taken on board during

the stay in the customs territory of vessels, aircrafts, or

trains used, or intended to be used, in international traffic

for the transport of persons for remuneration or for the

industrial or commercial transport of goods, whether or

not for remuneration.

SECTION 820. Exemption from Duties and Taxes of

Stores. — Customs treatment of stores should apply

uniformly, regardless of the country of registration or

ownership of vessels, aircraft, or trains. Stores which are

carried in a vessel, aircraft, or train arriving in the customs

territory shall be exempted from import duties and taxes

provided

that

they

remain

on

board.

Stores

for

consumption by the passengers and the crew imported

as provisions on international express vessels, aircrafts, or

trains shall be exempted from import duties and taxes:

Provided , That:

(a) Such goods are purchased only in the countries

crossed

by the international vessels and aircrafts in

question; and

(b) Any duties and taxes chargeable on such goods in

the country where they were purchased are paid.

Stores necessary for the operation and maintenance

of vessels, aircrafts, or trains which are on board these

means of transport shall be exempted from import duties

and taxes: Provided, further , That they remain on board

while these means of transport are in the customs

territory. The Bureau shall allow the issue of stores for use

on board during the stay of a vessel in the customs

territory in such quantities as the customs authority

deems reasonable with due regard to the number of the

passengers and the crew and to the length of the stay of

the vessel in the customs territory. The Bureau should

allow the issue of stores for use on board by the crew

while the vessel is undergoing repairs in a dock or

shipyard: Provided, finally , That the duration of stay in a

dock or shipyard is considered to be reasonable.

When an aircraft is to land at one or more airports in

the

customs

territory,

the

Bureau

should allow the

issuance of stores for consumption on board both during

the stay of the aircraft at such intermediate airports and

during its flight between such airports.

The Bureau shall require a carrier to take appropriate

measures to prevent any unauthorized use of the stores

including sealing of the stores, when necessary. It shall

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