Article 93p. 93

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

SECTION 11. Separability Clause. – If any provision of this

Act is subsequently declared invalid or unconstitutional,

other provisions hereof which are not affected thereby

shall remain in full force and effect.

SECTION 12. Repealing Clause. – All other laws, acts,

presidential

decrees,

executive

orders,

issuances,

presidential proclamations, rules and regulations or parts

thereof which are contrary to and inconsistent with any

provision of this Act are hereby repealed, amended or

modified accordingly.

SECTION 13. Effectivity. – This Act shall take effect fifteen

(15) days after its complete publication either in the

Official Gazette or in at least one (1) newspaper of general

circulation.

RA No 10863 | Customs Modernization

and Tariff Act

May 30, 2016

REPUBLIC ACT NO. 10863

AN ACT MODERNIZING THE CUSTOMS AND TARIFF

ADMINISTRATION

TITLE I Preliminary Provisions

CHAPTER 1 Short Title

SECTION 100. Short Title. — This Act shall be known

as the "Customs Modernization and Tariff Act (CMTA)".

CHAPTER 2 General and Common Provisions

SECTION 101. Declaration of Policy. — It is hereby

declared the policy of the State to protect and enhance

government

revenue,

institute

fair

and

transparent

customs

and

tariff management that will efficiently

facilitate international trade, prevent and curtail any form

of customs fraud and illegal acts, and modernize customs

and tariff administration. Towards this end, the State shall:

(a)

Develop

and

implement

programs

for

the

continuous

enhancement

of

customs

systems

and

processes that will harmonize customs procedures;

(b)

Adopt

clear

and

transparent

customs

rules,

regulations,

policies

and

procedures, consistent with

international standards and customs best practices;

(c)

Establish

a

regime

of

transparency

of

and

accessibility to customs information, customs laws, rules,

regulations,

administrative

policies,

procedures

and

practices,

in

order

to

ensure informed and diligent

compliance with customs practices and procedures by

stakeholders;

(d) Consult, coordinate and cooperate with other

government

agencies

and

the

private

sector

in

implementing and developing customs policy;

(e) Provide a fair and expeditious administrative and

judicial appellate remedy for customs related grievances

and matters;

(f)

Employ

modern

practices

in

customs

administration

and

utilize

information

and

communications technology in the implementation of

customs functions; and

(g)

Institute

professionalism

and

meritocracy

in

customs tax administration by attracting and retaining

competent and capable customs officers and personnel

to enforce the provisions of this Act.

SECTION 102. Definition of Terms. — As used in this

Act:

(a) Abatement refers to the reduction or diminution,

in whole or in part, of duties and taxes where payment

has not been made;

(b)

Actual

or Outright Exportation refers to the

customs procedure applicable to goods which, being in

free circulation, leave the Philippine territory and are

intended to remain permanently outside it;

(c) Admission refers to the act of bringing imported

goods directly or through transit into a free zone;

(d) Airway Bill (AWB) refers to a transport document

for airfreight used by airlines and international freight

forwarders which specify the holder or consignee of the

bill who has the right to claim delivery of the goods when

they arrive at the port of destination. It is a contract of

carriage that includes carrier conditions, such as limits of

liability and claims procedures. In addition, it contains

transport

instructions

to

airlines

and

carriers,

a

description of the goods, and applicable transportation

charges;

(e) Appeal refers to the remedy by which a person

who is aggrieved or adversely affected by any action,

decision, order, or omission of the Bureau, seeks redress

before

the

Bureau,

the

Secretary

of

Finance,

or

competent court, as the case may be;

(f) Assessment refers to the process of determining

the amount of duties and taxes and other charges due on

imported and exported goods;

(g) Authorized Economic Operator (AEO) refers to the

importer, exporter, customs broker, forwarder, freight

forwarder, transport provider, and any other entity duly

accredited by the Bureau based on the World Customs

Organization (WCO) Framework of Standards to Secure

and Facilitate Global Trade, the Revised Kyoto Convention

(RKC), the WCO Supply Chain Management Guidelines

and the various national best practices to promote trade

facilitation and to provide a seamless movement of goods

across borders through secure international trade supply

chains with the use of risk management and modern

technology;

(h) Bill of Lading (B/L) refers to a transport document

issued by shipping lines, carriers and international freight

forwarders or non-vessel operating common carrier for

water-borne freight. The holder or consignee of the bill

has the right to claim delivery of the goods at the port of

destination. It is a contract of carriage that includes

carrier conditions, such as limits of liability and claims

procedures. In addition, it contains transport instructions

to shipping lines and carriers, a description of the goods,

and applicable transportation charges;

(i) Bureau refers to the Bureau of Customs;

(j) Carrier refers to the person actually transporting

goods or in charge of or responsible for the operation of

the means of transport such as airlines, shipping lines,

freight

forwarders,

cargo

consolidators,

non-vessel

operating

common

carriers

and

other

international

transport operators;

(k) Clearance refers to the completion of customs

and other government formalities necessary to allow

goods to enter for consumption, warehousing, transit or

transshipment, or to be exported or placed under another

customs procedure;

(l) Commission refers to the Tariff Commission;

(m) Conditional Importation refers to the customs

procedure known under the RKC as temporary admission

in which certain goods can be brought into a customs

territory conditionally relieved, totally or partially, from

payment of import duties and taxes; such goods must be

imported for a specific purpose and must be intended for

reexportation

within a specified period and without

having undergone any substantial change except due to

normal depreciation;

(n) Customs Broker refers to any person who is a

bona

fide

holder

of

a

valid

Certificate

of

Registration/Professional Identification Card issued by

the

Professional

Regulatory

Board

and

Professional

Regulation Commission pursuant to Republic Act No.

© Compiled by RGL

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