Article 122p. 122

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

distraint on personal property, and the personal property

of the importer is not sufficient to satisfy the duty and tax

due,

the

Commissioner

or

a

duly

authorized

representative shall, within thirty (30) days after execution

of the distraint, proceed with the levy on the real property

of the importer.

Within ten (10) days after receipt of the warrant, a

report on any levy shall be submitted by the levying

officer

to

the

Commissioner:

Provided,

That

the

Commissioner may lift such warrants of levy issued,

subject

to

the

rules

and

regulations

promulgated

pursuant to this Act.

CHAPTER 9 Judicial Proceedings

SECTION 1135. Supervision and Control over Criminal

and Civil Proceedings. — Civil and criminal actions and

proceedings instituted on behalf of the Government

under the authority of this Act or other laws enforced by

the

Bureau

shall

be

brought

in

the

name

of

the

government of the Philippines and shall be prosecuted

and handled by the Bureau with the assistance of the

Department

of

Justice

(DOJ):

Provided,

That

the

determination of the existence of probable cause and the

subsequent filing of any criminal or civil case with the

proper court against violators of this Act shall exclusively

belong to the DOJ: Provided, however, That no civil or

criminal

action

for

the

recovery

of

duties

or

the

enforcement of any fine, penalty or forfeiture under this

Act shall be filed in court without the approval of the

Commissioner.

SECTION

1136.

Review

by

the

CTA.

—

Unless

otherwise provided in this Act or by any other law, the

party

aggrieved

by

the

ruling

or

decisions

of

the

Commissioner may appeal to the CTA, in the manner and

within the period prescribed by law and regulations.

Decisions of the Secretary of Finance when required by

this Act, may likewise be appealed to the CTA.

Unless an appeal is made to the CTA in the manner

and within the period prescribed by law and regulations,

the

ruling

or

decision

of the Commissioner or the

Secretary of Finance shall be final and executory.

SECTION 1137. Exclusive Jurisdiction of the Bureau.

—

Jurisdiction

over

imported

goods

and goods for

exportation shall be exclusive to the Bureau, or the

Secretary of Finance, when under review by the latter,

subject to the proceedings described in this title.

Except for the CTA, no court may issue any order or

decision until all the remedies for administrative appeal

have been exhausted.

SECTION 1138. Fraud Investigation and Prosecution.

— No criminal case for violation of this title shall be

instituted without the approval of the Commissioner

pursuant to the provisions of this Act.

The Bureau shall have the power to investigate and

institute

smuggling

cases

committed

within

its

jurisdiction: Provided, That in case of inquest, the same

may be instituted by the apprehending customs officer.

CHAPTER 10 Disposition of Property in Customs

Custody

SECTION

1139.

Goods

Subject to Disposition. —

Goods in customs custody that are in the following

conditions and status shall be subject to disposition:

(a) Abandoned goods;

(b) Goods entered under warehousing entry but not

withdrawn, or those whose duties and taxes have not

been paid within the period prescribed under Section 811

of this Act;

(c) Forfeited goods, other than prohibited, restricted

and regulated goods; after liability have been established

by the proper administrative or judicial proceedings in

conformity with the provisions of this Act; and

(d) Goods subject to a valid lien for customs duties,

taxes and other charges collectible by the Bureau, after

the expiration of the period allowed for payment thereof.

SECTION 1140. Place of Disposition of Goods. —

Upon the order of the District Collector, goods may be

sold or otherwise disposed of at the port where the goods

are located, unless the Commissioner shall direct its

transfer to another port.

SECTION 1141. Mode of Disposition. — The goods

subject

to

disposition

may

be

donated

to

another

government agency or declared for official use of the

Bureau, after approval of the Secretary of Finance, or sold

at a public auction within thirty (30) days after a ten

(10)-day notice posted at a public place at the port where

the goods are located and published electronically or in a

newspaper of general circulation.

For

purposes

of

donating

the

goods

as

above

described, goods suitable for shelter or consisting of

foodstuffs,

clothing

materials

or

medicines

may

be

donated to the DSWD.

SECTION

1142. Disqualification to Participate in

Auction Sale. — No customs officer or employee, their

spouses

and

relatives

within

the

fourth

degree

of

consanguinity or affinity shall be allowed to bid directly or

indirectly, in any customs auction.

SECTION

1143.

Disposition

of

Proceeds.

—

The

following expenses and obligations shall be paid from the

proceeds of the sale in the order provided:

(a) Customs duties, except in the case of forfeited

goods;

(b) Taxes and other charges due the government;

(c) Government storage charges;

(d) Expenses for the appraisal, advertisement, and

sale of auctioned goods;

(e)

Arrastre

and

private

storage

charges

and

demurrage charges; and

(f) Freight, lighterage or general average, on the

voyage of importation, of which due notice shall have

been given to the District Collector.

The Commissioner is authorized to determine the

maximum charges to be recovered by private entities

concerned under subsections (e) and (f) of this section.

SECTION 1144. Disposition of Perishable Goods. —

Perishable

goods

as

defined

under

this

Act

when

certified as such by the Bureau, may be sold at a public

auction within five (5) days, after a three (3)-day notice.

For

this

purpose, perishable goods shall include

goods

liable

to perish or be wasted, or those that

depreciate greatly in value while stored, or which cannot

be kept without great disproportionate expense. The

Bureau shall proceed to advertise and sell the same at

auction upon notice as shall be deemed to be reasonable.

SECTION 1145. Disposition of Goods Injurious to

Public Health. — Goods in the custody of the Bureau

which, in the opinion of the District Collector are injurious

to public health, shall be seized. The District Collector

shall, if the matter is not disposable under the provisions

relating to food and drugs, appoint three (3) members to

constitute a Board to examine the goods. The Board shall

be composed of one (1) representative from either the

DOH or other appropriate government agency or the

local government unit (LGU) concerned, and two (2)

representatives from the Bureau. If the goods are found

to be injurious to public health, the Board shall report this

to the District Collector, who shall order its destruction in

an appropriate manner or order its re-exportation in

accordance with this Act.

The District Collector shall immediately coordinate

with the health and quarantine officers at the port of

entry for the disposition of goods injurious to public

health.

© Compiled by RGL

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