Article 119p. 119

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

(i) Any package of imported goods which is found

upon examination to contain goods not specified in the

invoice or goods declaration including all other packages

purportedly containing imported goods similar to those

declared in the invoice or goods declaration to be the

contents of the misdeclared package;

j)

Boxes,

cases,

trunks,

envelopes,

and

other

containers of whatever character used as receptacle or as

device to conceal goods which are subject to forfeiture

under this Act or which are so designed as to conceal the

character of such goods;

(k) Any conveyance actually used for the transport of

goods

subject

to

forfeiture under this Act, with its

equipage or trappings, and any vehicle similarly used,

together with its equipment and appurtenances. The

mere conveyance of smuggled goods by such transport

vehicle shall be sufficient cause for the outright seizure

and

confiscation

of

such

transport

vehicle

but the

forfeiture shall not be effected if it is established that the

owner of the means of conveyance used as aforesaid, is

engaged as common carrier and not chartered or leased,

or that the agent in charge thereof at the time, has no

knowledge of the unlawful act; and

(l) Goods sought to be imported or exported:

(1) Without going through a customs office, whether

the act was consummated, frustrated, or attempted;

(2) Found in the baggage of a person arriving from

abroad and undeclared by such person;

(3) Through a false declaration or affidavit executed

by

the

owner,

importer,

exporter,

or

consignee

concerning the importation of such goods;

(4)

On

the strength of a false invoice or other

document executed by the owner, importer, exporter, or

consignee concerning the importation or exportation of

such goods; or

(5) Through any other practice or device contrary to

law by means of which such goods entered through a

customs office to the prejudice of the government.

SECTION 1114. Properties not Subject to Forfeiture in

the Absence of Prima Facie Evidence. — The forfeiture of

the vehicle, vessel, or aircraft shall not be effected if it is

established that the owner thereof or the agent in charge

of the means of conveyance used as aforesaid has no

knowledge

of

or

participation

in

the

unlawful

act:

Provided, That a prima facie presumption shall exist

against the vehicle, vessel, or aircraft under any of the

following circumstances:

(a) If the conveyance has been used for smuggling

before;

(b) If the owner is not in the business for which the

conveyance is generally used; and

(c) If the owner is not financially in a position to own

such conveyance.

SECTION

1115. Conditions Affecting Forfeiture of

Goods. — The forfeiture shall be effected only when and

while

the

goods

are

in

the

custody

or within the

jurisdiction of customs officers, or in the possession or

custody of or subject to the control of the importer,

exporter, original owner, consignee, agent of another

person effecting the importation, entry or exportation in

question, or in the possession or custody of or subject to

the control of persons who shall receive, conceal, buy, sell,

or transport the same, or aid in any of such acts, with

knowledge that the goods were imported, or were the

subject of an attempt at importation or exportation

contrary to law.

SECTION 1116. Seizure or Release of Goods. — The

District Collector shall issue an order of release or a

warrant of seizure within five (5) days, or two (2) days in

case of perishable goods, upon the recommendation of

the alerting officer or any other customs officer. The

District Collector shall immediately make a report of such

seizure or release to the Commissioner.

SECTION

1117.

Warrant

of

Seizure

or

Order

of

Release. — The District Collector shall have the authority

to

issue

a

warrant

of

seizure

of

the

goods

upon

determination of the existence of probable cause and in

case of nonexistence thereof, the issuance of order of

release. In case the District Collector issued an order of

release, the District Collector shall immediately transmit

all

the

records

to

the

Commissioner

who

shall

automatically review within forty-eight (48) hours, or

within twenty-four (24) hours in case of perishable goods.

When no decision is made by the Commissioner within

the

prescribed period, the imported goods shall be

deemed released.

The lifting of the alert order shall be issued by the

District

Collector

only

upon

the

affirmation

of

the

decision of the District Collector by the Commissioner, or

after

the

lapse

of

the

period

of

review

by

the

Commissioner, whichever is earlier.

SECTION

1118.

Sale of Perishable Goods during

Forfeiture Proceedings. — Upon motion of the importer

of the perishable goods, the goods may be sold at a

public auction during the pendency of the forfeiture

proceedings. The proceeds of the auction shall be held in

escrow until the final resolution of the proceedings.

SECTION 1119. Service of Warrant of Seizure. — The

District Collector shall cause the service of warrant of

seizure to the owner or importer of the goods or the

authorized representative thereof. The owner or importer

shall be given an opportunity to be heard during the

forfeiture proceedings.

For the purpose of serving the warrant, the importer,

consignee, or person holding the bill of lading or airway

bill shall be deemed the "owner" of the goods. For the

same purpose, "authorized representative" shall include

any agent of the owner and if the owner or the agent is

unknown, any person having possession of the goods at

the time of the seizure.

Service of warrant to an unknown owner shall be

effected by posting the warrant for fifteen (15) days in a

public place at the concerned district, and by electronic

or printed publication.

SECTION

1120.

Description,

Classification

and

Valuation of Seized Goods. — The District Collector shall

cause the preparation of a list and particular description,

classification, and valuation of the goods seized and

valuation of identical or similar goods.

SECTION

1121.

Proceedings

in

Case of Property

Belonging to Unknown Parties. — If, within fifteen (15)

days after service of warrant, no owner or agent can be

found or appears before the District Collector, the seized

goods

shall

be

forfeited

ipso

facto

in favor of the

government to be disposed of in accordance with this

Act.

SECTION

1122.

Seizure

of

Vessel or Aircraft for

Delinquency of Owner or Officer. — When the owner,

agent, master, pilot in command or other responsible

officer of any vessel or aircraft becomes liable for any

violation of this Act, the vessel or aircraft may be seized

and

be

subjected

to

forfeiture

proceedings

for the

settlement of any fine or penalty for which such person is

liable. In determining whether or not to seize a vessel or

aircraft, the Bureau shall take into account the amount of

fine or penalty in relation to the commercial impact that

may be caused to international trade by the seizure or

detention as well as the value of the vessel or aircraft.

SECTION

1123.

Burden

of

Proof

in

Forfeiture

Proceedings. — In all proceedings for the forfeiture of any

vehicle, vessel, aircraft, or goods under this Act, the

burden of proof shall be borne by the claimant.

SECTION 1124. Settlement of Pending Seizure Case

by Payment of Fine or Redemption of Forfeited Goods.

— Subject to the approval of the Commissioner, the

District Collector may allow the settlement by payment of

fine or the redemption of forfeited goods, during the

course

of

the

forfeiture

proceeding.

However,

the

© Compiled by RGL

119 of 201