Article 123p. 123

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

SECTION 1146 Disposition of Prohibited Goods. —

Prohibited goods, as provided in Section 118 of this Act,

shall be destroyed, except paragraph (d) thereof which

shall be turned over to the BSP. All goods suitable for

shelter, foodstuffs, clothing materials or medicines may

be disposed in accordance with Section 1141 of this Act.

SECTION 1147. Disposition of Restricted Goods. —

Restricted goods as described in Section 119 of this Act

shall be disposed as follows:

(a) Dynamite, gunpowder, ammunitions and other

explosives,

firearms

and weapons of war, and parts

thereof shall be turned over to the AFP;

(b) Roulette wheels, gambling outfits, loaded dice,

marked

cards,

machines,

apparatus

or

mechanical

devices used in gambling or the distribution of money,

cigars, cigarettes, or other goods when such distribution

is dependent on chance, including jackpot and pinball

machines or similar contrivances, or parts thereof shall be

turned over to the appropriate government body or

agency;

(c)

Lottery

and

sweepstakes

tickets,

except

advertisements thereof, and lists of drawings therein shall

be turned over to the appropriate government body or

agency;

(d) Marijuana, opium, poppies, coca leaves, heroin, or

other narcotics or synthetic drugs which are or may

hereafter be declared habit forming by the President of

the Philippines, or any compound, manufactured salt,

derivative, or preparation thereof, shall be turned over to

the Dangerous Drugs Board;

(e)

Opium

pipes and parts thereof, of whatever

material, shall be turned over to the Dangerous Drugs

Board; and

(f)

All

other

restricted

goods

which

are

highly

dangerous to be kept or handled shall be destroyed in a

manner as the District Collector deems appropriate.

Otherwise, the restricted goods shall be turned over to

the proper government agency for appropriate handling.

SECTION 1148. Disposition of Regulated Goods. —

Regulated goods shall be disposed of in a manner to be

determined by the appropriate regulatory agency. In the

event that the regulatory agency allows the disposition of

the regulated goods with commercial value and capable

of

legitimate

use,

these

shall

be

disposed

of

in

accordance with Section 1141 of this Act.

SECTION 1149. Disposition of Unsold Goods for Want

of Bidders. — Goods subject to sale at public auction by

the Bureau shall be sold at a price not less than the

landed

cost

of

the

goods

adjusted

for

normal

depreciation.

Goods which remain unsold after at least two (2)

public biddings either due to the lack of bidders or for the

lack of an acceptable bid, may be donated to another

government agency or declared for official use of the

Bureau. If the goods are not suitable either for official use

or

donation,

these

may

be

subject to re-export as

government property or sold through a negotiated sale.

In case of negotiated sale, the same shall be subject to

the approval of the Secretary of Finance and executed in

the presence of a representative of the COA. 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 1150. Disposition of Smuggled Goods. —

Smuggled goods, when forfeited, shall be disposed of as

provided in Section 1148 of this Act.

SECTION 1151. Forfeiture Fund. — All proceeds from

public auction sales after deduction of the charges as

provided in Section 1143 of this Act and subject to the

claim

of

the

owner

or

importer

of

an

impliedly

abandoned goods as provided in Section 1130 of this Act,

shall

be

deposited

in

an

account to be known as

Forfeiture Fund.

The Fund shall be in the name of and shall be

managed by the Bureau which is hereby authorized,

subject to the usual government accounting rules and

regulations, to utilize it for the following purposes:

(a) To outsource, subject to the rules on government

procurement established by law, the management of the

inventory, safekeeping, maintenance and sale of goods

enumerated in Section 1139 of this Act to private service

providers:

Provided,

That

the

Bureau

shall

retain

jurisdictional control and supervision over these goods as

well

as

the

operations

of

the

service

provider

so

contracted;

(b) To facilitate customs seizure, abandonment and

forfeiture proceedings and the disposition of goods under

Section 1139 of this Act, particularly those to be disposed

of other than through public sale;

(c) To enhance customs intelligence and enforcement

capability to prevent smuggling; and

(d) To support the modernization program and other

operational efficiency and trade facilitation initiatives of

the Bureau.

The

DOF

and

the

Department

of

Budget

and

Management (DBM) shall, upon the recommendation of

the Bureau, issue a joint regulation to implement the

provisions of this section.

TITLE XII Third Parties

CHAPTER 1 Customs Service Providers

SECTION 1200. Customs Brokers and Other Service

Providers.

—

Upon

the

recommendation

of

the

Commissioner, the Secretary of Finance shall issue the

necessary rules and regulations for the registration of

customs brokers and the accreditation of other customs

service providers to ensure compliance with this Act and

the rules and regulations that shall be promulgated to

implement it.

CHAPTER 2 Carriers, Vessels, and Aircrafts

SECTION 1201. Ports Open to Vessels and Aircrafts

Engaged

in Foreign Trade. — Vessels and aircrafts

engaged in foreign trade shall visit designated ports of

entry only except as otherwise especially allowed by law:

Provided, That no existing and valid government contract

covering the handling of import and export cargo shall be

diminished or impaired. Every vessel or aircraft arriving

within a Customs District of the Philippines from a

foreign port shall dock at the designated port of entry

and shall be subject to the authority of the District

Collector of the port while within its jurisdiction.

SECTION

1202. Control of Customs Officer over

Boarding or Leaving of Incoming Vessel and over Other

Vessel Approaching the Former. — Upon the arrival in

port of any vessel engaged in foreign trade, it shall be

unlawful

for

any

person,

except

the

pilot,

consul,

quarantine

officers,

customs

officers,

or

other

duly

authorized persons, to board or leave the vessel without

permission of the customs officer concerned. It shall

likewise be unlawful for any tugboat, rowboat, or other

craft to go alongside such vessel and for any person so

authorized to board the vessel to take any unauthorized

person to board the same, or allow loitering near or

alongside such vessel. Unauthorized tugboats and other

vessels shall keep away from such vessel engaged in

foreign trade at a distance of not less than fifty (50)

meters.

SECTION 1203. Documents to be Produced by the

Master Upon Entry of Vessel. — Upon entry of a vessel

engaged

in

foreign

trade,

the

master

thereof shall

present the following certified documents to the customs

boarding officers:

(a) The vessel's general declaration;

© Compiled by RGL

123 of 201