Article 118p. 118

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

nonpayment,

the

release

of

the

importation

under

protest upon posting of sufficient security.

SECTION

1107.

Protest

Exclusive

Remedy

in

Protestable Case. — In all cases subject to protest, the

interested party who desires to have the action of the

District Collector reviewed, shall file a protest as provided

in Section 1106 of this Act, otherwise the action of the

District Collector shall be final and conclusive.

SECTION 1108. Form and Scope of Protest. — A

protest shall be filed in accordance with the prescribed

rules and regulations promulgated under this section. It

shall specify the particular decision or ruling of the

District Collector for which protest is being made, and

shall indicate the particular ground or grounds upon

which the protesting party bases the claim for relief. The

scope of a protest shall be limited to the particular goods

subject of a goods declaration, but any number of issues

may be raised in a protest with reference to the goods

declaration constituting the subject matter of the protest.

SECTION

1109.

Samples

to

be

Furnished

by

Protesting Parties. — If the nature of the goods permit,

importers filing protests involving questions of fact must,

upon demand, present to the Commissioner samples of

the goods which are the subject matter of the protest.

The samples of the goods shall be verified by the customs

officer who made the classification against which the

protests are filed.

SECTION 1110. Decision in Protest. — When a protest

is filed in proper form, the Commissioner shall render a

decision within thirty (30) days from receipt of the

protest. In case the protest is sustained, in whole or in

part, the appropriate order shall be made, and the entry

reassessed, if necessary.

CHAPTER 3 Alert Orders

SECTION 1111. Alert Orders. — Alert orders are written

orders issued by customs officers as authorized by the

Commissioner on the basis of derogatory information

regarding possible noncompliance with this Act. An alert

order will result in the suspension of the processing of the

goods

declaration

and

the

conduct

of

physical

or

non-intrusive inspection of the goods within forty-eight

(48) hours from issuance of the order. Within forty-eight

(48) hours or, in the case of perishable goods, within

twenty-four

(24)

hours from inspection, the alerting

officer shall recommend the continuance of processing of

goods in case of a negative finding, or issuance of a

warrant

of

seizure

and

detention

if

a

discrepancy

between the declaration and actual goods is found. The

Bureau's information system shall immediately reflect the

imposition or lifting of an alert order.

Derogatory information shall indicate the violations

and other necessary specifics thereof. For this purpose,

the

following

shall

not

be

considered

derogatory

information:

(a) General allegations of undervaluation;

(b) General allegations of misclassification without

providing the appropriate tariff heading and duty of the

shipment to be alerted;

(c)

General

allegations

of

over-quantity

without

indicating

the source of information supporting the

allegation;

(d) General allegations of misdeclaration in the entry

without indicating the suspected actual contents thereof;

and

(e) General allegations of importations contrary to law

without indicating the specific law or rule to be violated.

No

alert

order

shall

be

issued

on

account

of

allegations of undervaluation unless said undervaluation

is caused by the submission to customs of forged or

spurious invoice or other commercial documents.

An alert order may be issued only after lodgement of

the goods declaration and prior to the release of goods

from customs custody. Under no circumstances shall the

suspension of the processing of goods declaration be

allowed except through an alert order issued by an

authorized customs officer.

The costs of the physical inspection shall be borne by

the Bureau: Provided , That such cost shall be reimbursed

by the owner prior to the release of the goods if the

physical

inspection

results

in

the

assessment

of

additional duties or taxes or the issuance of a warrant of

seizure.

The

Commissioner

shall

be

notified

of

the

recommendation

by

the

alerting

officer

within

twenty-four (24) hours from the issuance of the alert

order. Alert orders shall be dated and assigned a unique

reference number in series which shall be the basis for

reporting to and monitoring by the Commissioner and

the Secretary of Finance.

The Bureau shall create a central clearing house for

alert orders and shall submit reports quarterly on the

status thereof.

SECTION 1112. Alert Orders on Perishable Goods. —

When the subject of the alert order are perishable goods,

the

Bureau

shall

attach

to

the

recommendation

a

certificate stating that the goods are perishable.

CHAPTER 4 Seizure and Forfeiture

SECTION

1113.

Property

Subject

to

Seizure and

Forfeiture. — Property that shall be subject to seizure and

forfeiture include:

(a) Any vehicle, vessel or aircraft, including cargo,

which shall be used unlawfully in the importation or

exportation of goods or in conveying or transporting

smuggled goods in commercial quantities into or from

any Philippine port or place. The mere carrying or holding

on board of smuggled goods in commercial quantities

shall subject such vehicle, vessel, aircraft, or any other

craft to forfeiture: Provided , That the vehicle, vessel,

aircraft or any other craft is not used as a common carrier

which has been chartered or leased for purposes of

conveying or transporting persons or cargo;

(b) Any vessel engaging in the coastwise trade which

shall have on board goods of foreign growth, produce, or

manufacture in excess of the amount necessary for sea

stores, without such goods having been properly entered

or legally imported;

(c)

Any

vessel

or

aircraft

into

which

shall

be

transferred cargo unloaded contrary to law prior to the

arrival of the importing vessel or aircraft at the port of

destination;

(d) Any part of the cargo, stores, or supplies of a vessel

or aircraft arriving from a foreign port which is unloaded

before

arrival

at

the

vessel's

or

aircraft's

port

of

destination and without authority from the customs

officer; but such cargo, ship, or aircraft stores and supplies

shall not be forfeited if such unloading was due to

accident, stress of weather, or other necessity and is

subsequently approved by the District Collector;

(e) Goods which are fraudulently concealed in or

removed contrary to law from any public or private

warehouse, container yard, or container freight station

under customs supervision;

(f) Goods, the importation or exportation of which are

effected or attempted contrary to law, or any goods of

prohibited

importation

or

exportation, and all other

goods which, in the opinion of the District Collector, have

been used, are or were entered to be used as instruments

in the importation or the exportation of the former;

(g) Unmanifested goods found on any vessel or

aircraft if manifest therefor is required;

(h) Sea stores or aircraft stores adjudged by the

District Collector to be excessive, when the duties and

taxes assessed by the District Collector thereon are not

paid or secured forthwith upon assessment of the same;

© Compiled by RGL

118 of 201