Article 120p. 120

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

Commissioner may accept the settlement by redemption

of

any

forfeiture case on appeal. No settlement by

payment of fine shall be allowed when there is fraud or

when the discrepancy in duties and taxes to be paid

between

what

is

determined

and what is declared

amounts to more than thirty percent (30%).

In case of settlement by payment of fine, the owner,

importer, exporter, or consignee or agent shall offer to

pay a fine equivalent to thirty percent (30%) of the landed

cost of the seized goods. In case of settlement by

redemption, the owner, importer, exporter, or consignee

or agent shall offer to pay the redeemed value equivalent

to one hundred percent (100%) of the landed cost.

Upon

payment

of

the

fine

or

payment

of

the

redeemed value, the goods shall be released and all

liabilities

which

may

attach

to

the

goods

shall

be

discharged

without

prejudice

to

the

filing

of

administrative or criminal case.

Settlement of any seizure case by payment of the fine

or redemption of forfeited goods shall not be allowed

when

there

is

fraud,

or

where

the

importation

is

prohibited or the release of the goods is contrary to law.

SECTION 1125. Decision in Forfeiture Cases. — In

forfeiture cases, the District Collector shall issue an order

for hearing within fifteen (15) days, or five (5) days in case

of perishable goods, from issuance of the warrant. The

District Collector shall render a decision within thirty (30)

days upon termination of the hearing, or within ten (10)

days in case of perishable goods. The decision shall

include a declaration of forfeiture, the imposition of a fine

or such other action as may be proper.

CHAPTER 5 Appeal in Protest and Forfeiture

Cases

SECTION 1126. Appeal to the Commissioner. — In

forfeiture cases, the person aggrieved by the decision of a

District Collector may, within fifteen (15) days or five (5)

days in case of perishable goods, from receipt of the

decision, file a written notice of appeal, together with the

required appeal fee to the District Collector, furnishing a

copy to the Commissioner. The District Collector shall

immediately transmit all the records of the proceedings

to the Commissioner, who shall review and decide on the

appeal within thirty (30) days from receipt of the records,

or fifteen (15) days in the case of perishable goods:

Provided, That if within thirty (30) days, no decision is

rendered, the decision of the District Collector under

appeal shall be deemed affirmed. An appeal filed beyond

the period herein prescribed shall be dismissed.

Appeals to protest cases shall be governed by Section

114 of this Act.

The decision of the Commissioner may be served

through the recognized modes of service under existing

law.

SECTION 1127. Automatic Review in Forfeiture Cases.

—

The Commissioner shall automatically review any

decision

by

the

District

Collector

adverse

to

the

government. The entire records of the case shall be

elevated within five (5) days from the promulgation of the

decision.

The

Commissioner

shall

decide

on

the

automatic review within thirty (30) days, or within ten (10)

days in the case of perishable goods, from receipt of the

records.

When

no

decision

is

rendered

within

the

prescribed period or when a decision adverse to the

government is rendered by the Commissioner involving

goods with FOB or FCA value of ten million pesos

(P10,000,000.00) or more, the records of the decision of

the Commissioner, or of the District Collector under

review,

as

the

case

may be, shall be automatically

elevated within five (5) days for review by the Secretary of

Finance. The decision issued by the Secretary of Finance,

whether

or

not

a

decision

was

rendered

by

the

Commissioner within thirty (30) days, or within ten (10)

days in the case of perishable goods, from receipt of the

records, shall be final upon the Bureau.

SECTION 1128. Automatic Review by the Secretary of

Finance in Other Cases. — In cases not involving protest

or forfeiture, the Commissioner shall automatically review

any decision by the District Collector that is adverse to the

government. The records of the case shall be elevated to

the

Commissioner

within

five

(5)

days

from

the

promulgation of the decision. The Commissioner shall

decide on the automatic review within thirty (30) days

from receipt of the records, or within ten (10) days in the

case of perishable goods. When no decision is rendered

within

the

prescribed

period

or when any decision

rendered

by

the

Commissioner

is

adverse

to

the

government, the records of the case under review shall

be automatically elevated within five (5) days for the

review of the Secretary of Finance. The decision issued by

the Secretary of Finance, whether or not a decision was

rendered by the Commissioner within thirty (30) days

from receipt of the records, or within ten (10) days in the

case of perishable goods, shall be final upon the Bureau.

CHAPTER 6 Abandonment

SECTION 1129. Abandonment, Kinds and Effects of.

— Imported goods are deemed abandoned under any of

the following circumstances:

(a) When the owner, importer, or consignee of the

imported goods expressly signifies in writing to the

District Collector the intention to abandon the same; or

(b)

When

the

owner,

importer,

consignee,

or

interested party after due notice, fails to file the goods

declaration within the prescribed period in Section 407 of

this Act: Provided, That the term goods declaration shall

include

provisional

or

incomplete

goods

declaration

deemed valid by the Bureau as provided in Section 403 of

this Act. For this purpose, it is the duty of the District

Collector to post a list of all packages discharged and

their consignees, whether electronically or physically in

the District Office, or send a notice to the consignee

within five (5) days from the date of discharge; or

(c) Having filed such goods declaration, the owner,

importer, consignee or interested party after due notice,

fails to pay the assessed duties, taxes and other charges

thereon, or, if the regulated goods failed to comply with

Section 117 of this Act, within fifteen (15) days from the

date of final assessment: Provided, That if such regulated

goods are subject of an alert order and the assessed

duties, taxes and other charges thereof are not paid

within fifteen (15) days from notification by the Bureau of

the resolution of the alert order, the same shall also be

deemed abandoned; or

(d) Having paid the assessed duties, taxes and other

charges, the owner, importer or consignee or interested

party after due notice, fails to claim the goods within

thirty (30) days from payment. For this purpose, the

arrastre

or

warehouse

operator

shall

report

the

unclaimed goods to the District Collector for disposition

pursuant to the provisions of this Act; or

(e) When the owner or importer fails to claim goods

in customs bonded warehouses within the prescribed

period.

The due notice requirement under this section may

be provided by the Bureau through electronic notice or

personal service: Provided, That for non-regular importers,

notification

shall

be

by

registered

mail or personal

service. For this purpose, the accreditation of importers,

exporters, and other third parties shall include provision

for mandatory receipt of electronic notices.

SECTION

1130.

Treatment

and

Disposition

of

Abandoned Goods. — Expressly abandoned goods under

paragraph (a) of Section 1129 of this Act shall ipso facto be

deemed the property of the government and shall be

disposed of in accordance with the provisions of this Act.

If the Bureau has not disposed of the abandoned

goods,

the

owner

or

importer

of

goods

impliedly

abandoned may, at any time within thirty (30) days after

the lapse of the prescribed period to file the declaration,

© Compiled by RGL

120 of 201