Article 117p. 117

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

(c) Take such testimony of the person concerned,

under oath, as may be relevant or material to such

inquiry; or

(d) Obtain information from banks or other financial

institutions

on

commercial

documents

and

records

pertaining specifically to payments relevant to import

transaction.

The

provisions

of

the

foregoing

paragraphs

notwithstanding,

nothing

in

this

section

shall

be

construed as granting the Commissioner the authority to

inquire

into

bank

deposits

of

persons

or

entities

mentioned in this Title.

SECTION 1005. Failure to Pay Correct Duties and

Taxes on Imported Goods. — Any person who, after

being subjected to post clearance audit and examination

as provided in Section 1000 of this Act, is found to have

incurred

deficiencies

in

duties

and

taxes

paid

for

imported goods, shall be penalized according to two (2)

degrees

of

culpability

subject

to

any

mitigating,

aggravating,

or extraordinary factors that are clearly

established by available evidence as described hereunder:

(a) Negligence . — When a deficiency results from an

offender's failure, through an act or acts of omission or

commission, to exercise reasonable care and competence

in

ensuring

that

a

statement

made is correct, the

offender shall be charged for committing negligence,

and,

if

found

guilty shall be penalized with a fine

equivalent to one hundred twenty-five percent (125%) of

the revenue loss: Provided , That subject to Section 108 of

this Act, no substantial penalty shall be imposed on an

inadvertent error amounting to simple negligence, as

defined

by

rules

promulgated

by

the

Secretary

of

Finance, upon recommendation of the Commissioner;

(b) Fraud. — When the material false statement or act

in connection with the transaction was committed or

omitted

knowingly,

voluntarily

and

intentionally,

as

established

by

clear

and

convincing

evidence,

the

offender who is charged for committing fraud and is

found guilty thereof, shall be penalized with a fine

equivalent to six (6) times of the revenue loss and/or

imprisonment of not less than two (2) years, but not more

than eight (8) years.

The

decision

of the Commissioner, upon proper

hearing, to impose penalties as prescribed in this section

may be appealed in accordance with Section 1104 of this

Act.

SECTION 1006. Records to be Kept by the Bureau. —

The Bureau shall keep a database of importer and broker

profiles which shall include a record of audit results and

the following information and papers:

(a) Articles of Incorporation;

(b) The company structure, which shall include, but

not limited to, incorporators and board of directors, key

officers, and organizational structure;

(c) Key importations;

(d) Privileges enjoyed;

(e) Penalties; and

(f) Risk categories.

The Bureau shall furnish the BIR and the DOF a copy

of the final audit results within thirty (30) days from the

issuance thereof.

TITLE XI Administrative and Judicial Procedures

CHAPTER 1 Advance Ruling and Dispute

Settlement

SECTION 1100. Classification Ruling. — An importer

or exporter may file a written application for an advance

ruling

on the tariff classification of goods with the

Commission. The Commission shall render a ruling within

thirty (30) days from receipt of a properly documented

application.

When a declared tariff classification of goods, not

subject of a pending application for advance ruling, is in

dispute,

the

importer, exporter, or the Bureau shall

submit

the matter to the Commission for a ruling,

without prejudice to the application of Section 1106 of this

Act on "protest": Provided , That such rulings of the

Commission on commodity classification shall be binding

upon the Bureau, unless the Secretary of Finance shall

rule otherwise.

SECTION 1101. Valuation Ruling. — An importer or

exporter may file a written application for an advance

valuation ruling on the proper application of a specific

method

on

customs

valuation

of specific goods as

prescribed in Title VII, Chapter 1 of this Act.

The application for a valuation ruling shall be filed

with the Commissioner who shall issue a ruling within

thirty (30) days from submission of the application form

and supporting documents as may be required by rules

and regulations.

When the valuation method of goods not subject of

an

application

for

advance

valuation

ruling

or

the

declared customs value is in dispute, the matter shall be

resolved in accordance with Section 1106 of this Act on

"protest".

SECTION 1102. Ruling on the Rules of Origin. — An

importer or exporter may file a written application for a

ruling on whether the goods qualify as originating under

the rules of origin of the applicable preferential trade

agreement. The application for an advance ruling on

origin shall be filed with the Commissioner who shall act

on the application within thirty (30) days from receipt of

the application and supporting documents as may be

required by rules and regulations.

When the declared origin of the goods, not subject of

a request for advance ruling on origin, is in dispute, the

matter shall be resolved in accordance with Section 1106

of this Act on "protest".

SECTION 1103. Conditions for Application and Effect

of Advance Ruling. — An application for an advance

ruling shall cover only one (1) product or item. The

application for advance ruling shall be filed at least ninety

(90) days before the importation or exportation of the

product or item, as the case may be.

SECTION 1104. Administrative and Judicial Appeals.

— An aggrieved party may, within thirty (30) days from

receipt of an adverse ruling or decision, appeal the same

to the CTA without prejudice to the authority of the

Secretary of Finance to review decisions adverse to the

government in accordance with Sections 1127 and 1128 of

this Act, as the case may be.

SECTION

1105.

Implementing

Rules

and

Regulations. — The Secretary of Finance, upon the

recommendation of the Bureau and the Commission,

shall promulgate rules and regulations to implement the

preceding provisions on advance ruling.

CHAPTER 2 Protest

SECTION 1106. Protest. — When a ruling or decision

of the District Collector or customs officer involving goods

with valuation, rules of origin, and other customs issues is

made, except the fixing of fines in seizure cases, the party

adversely affected may appeal by way of protest against

such

ruling

or

decision

by

presenting

to

the

Commissioner at the time when payment of the amount

claimed to be due the government is made, or within

fifteen (15) days thereafter, a written protest setting forth

the objection to the ruling or decision in question and the

reasons therefore.

Subject to the approval of the Secretary of Finance,

the

Commissioner

shall

provide

such

rules

and

regulations

as

to

the

requirement

for

payment

or

nonpayment of the disputed amount and in case of

© Compiled by RGL

117 of 201