Article 127p. 127

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

commercial

records,

the

Bureau

shall

extend

the

following incentives:

(a)

Release

of the goods upon provision of the

minimum information necessary to identify the goods

and permit the subsequent completion of the final goods

declaration;

(b) Grant of clearance of the goods at the declarant's

premises or another place authorized by the Bureau; and

(c) Other special procedures such as:

(i) Allowing a single goods declaration for all imports

or exports in a given period where goods are imported or

exported frequently by the same person;

(ii) Use of commercial records to self assess their duty

and

tax

liability

and,

where

appropriate,

to

ensure

compliance with other customs requirements; and

(iii) Allowing the lodgement of goods declaration by

means of an entry in the records by the authorized

person

to

be

supported

subsequently

by

a

supplementary goods declaration.

SECTION

1228.

Trade

Facility

for

AEO.

—

The

Secretary of Finance shall, upon the recommendation of

the Commissioner, issue the necessary rules:

(a)

To

supervise

and

regulate

the

conduct and

operations of the AEOs, consistent with international best

practices,

the

World

Customs

Organization

(WCO)

framework of standards to secure and facilitate global

trade,

and

other

international

conventions

and

agreements;

(b) To develop a trade facilitation program for AEOs

and

other

authorized

persons

consistent

with

international best practices and international conventions

and agreements; and

(c) To recognize existing facilities where the authority

or right to operate AEOs has been granted by the relevant

government agency or regulator through a contract,

where the Bureau shall:

(i) Only require an endorsement by the relevant

agency or regulator;

(ii) Issue a certificate of authority as a matter of

course; and

(iii) Ensure that the term of the certificate of authority

shall be coterminous with the applicable government

contract or any extension thereof.

The Bureau shall implement the provisions of this

chapter without interfering, or impeding AEO operations

as well as existing operations of wharves, container yards,

container freight stations, warehouses, examination areas

and other facilities located in customs territory and/or in

airports and seaports. The Bureau shall likewise ensure

that

any

subsequent

rules,

regulations,

orders

or

memoranda issued in relation to AEOs shall be consistent

with the appropriate government agency's or regulator's

prevailing operating procedures and international best

practices.

Existing

contracts

of

private

operators

with

appropriate government agency or regulator, such as, but

not

limited

to,

the

PPA,

SBMA

and

PIA and their

respective authorities and powers already granted by law

pertinent to such contract, shall not be impaired or

adversely affected with the Bureau's implementing rules

and regulations on AEOs.

TITLE XIII Customs Fees and Charges

SECTION 1300. Customs Dues, Fees and Charges. —

For services rendered and documents issued by the

Bureau, dues, fees and charges shall be collected as may

be provided under existing regulations issued by the

Secretary of Finance, upon the recommendation of the

Commissioner.

SECTION 1301. General Provision on the Authority to

Increase or Decrease Dues, Fees and Charges. — The

Secretary of Finance may, upon the recommendation of

the Commissioner, increase or decrease the dues, fees

and charges collectible by the Bureau to protect the

interest of the government.

TITLE XIV Offenses and Penalties

CHAPTER 1 Crimes and Other Offenses

SECTION

1400.

Misdeclaration,

Misclassification,

Undervaluation in Goods Declaration. — Misdeclaration

as

to

quantity,

quality,

description,

weight,

or

measurement of the goods, or misclassification through

insufficient or wrong description of the goods or use of

wrong tariff heading resulting to a discrepancy in duty

and tax to be paid between what is legally determined

upon assessment and what is declared, shall be subject

to a surcharge equivalent to two hundred fifty percent

(250%) of the duty and tax due. No surcharge shall be

imposed when the discrepancy in duty is less than ten

percent (10%), or when the declared tariff heading is

rejected in a formal customs dispute settlement process

involving difficult or highly technical question of tariff

classification, or when the tariff classification declaration

relied on an official government ruling.

There is undervaluation when: (a) the declared value

fails to disclose in full the price actually paid or payable or

any dutiable adjustment to the price actually paid or

payable; or (b) when an incorrect valuation method is

used or the valuation rules are not properly observed,

resulting in a discrepancy in duty and tax to be paid

between what is legally determined as the correct value

against the declared value. When the undervaluation is

established without the need to go through the formal

dispute settlement process provided for in this Act, a

surcharge shall be imposed equivalent to two hundred

fifty percent (250%) of the duty and tax due. No surcharge

shall be imposed when the discrepancy in duty is less

than ten percent (10%), or the declared value is rejected as

a result of an official ruling or decision under the customs

dispute settlement process involving difficult or highly

technical question relating to the application of customs

valuation rules.

A discrepancy in duty and tax to be paid between

what

is

legally

determined

and

what

is

declared

amounting

to

more

than

thirty percent (30%) shall

constitute a prima facie evidence of fraud.

When

the

misdeclaration,

misclassification

or

undervaluation is intentional or fraudulent, such as when

a false or altered document is submitted or when false

statements

or

information

are

knowingly

made,

a

surcharge shall be imposed equivalent to five hundred

percent (500%) of the duty and tax due and that the

goods

shall be subject to seizure regardless of the

amount of the discrepancy without prejudice to the

application of fines or penalties provided under Section

1401 of this Act against the importer and other person or

persons who willfully participated in the fraudulent act.

SECTION 1401. Unlawful Importation or Exportation.

— Any person who shall fraudulently import or export or

bring into or outside of the Philippines any goods, or

assist in so doing, contrary to law, or shall receive, conceal,

buy, sell, or in any manner facilitate the transportation,

concealment, or sale of such goods after importation, or

shall commit technical smuggling as defined in this Act

shall be penalized by:

(a) Imprisonment of not less than thirty (30) days and

one (1) day but not more than six (6) months, or a fine of

not less than twenty-five thousand pesos (P25,000.00)

but

not

more

than

seventy-five

thousand

pesos

(P75,000.00), or both, if the appraised value of the goods

unlawfully imported, to be determined in the manner

prescribed under this Act, including duties and taxes, of

the goods unlawfully imported does not exceed two

hundred fifty thousand pesos (P250,000.00);

© Compiled by RGL

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