Article 95p. 95

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

(pp)

Technical

Smuggling

refers

to

the

act

of

importing

goods

into

the

country

by

means

of

fraudulent, falsified or erroneous declaration of the goods

to its nature, kind, quality, quantity or weight, for the

purpose of reducing or avoiding payment of prescribed

taxes, duties and other charges;

(qq) Tentative Release refers to a case where the

assessment is disputed and pending review, an importer

may put up a cash bond equivalent to the duties and

taxes due on goods before the importer can obtain the

release of said goods;

(rr) Transit refers to the customs procedure under

which goods, in its original form, are transported under

customs control from one customs office to another, or to

a free zone;

(ss) Transshipment refers to the customs procedure

under

which

goods

are

transferred

under

customs

control from the importing means of transport to the

exporting means of transport within the area of one

customs office, which is the office of both importation

and exportation;

(tt) Traveler refers to any person who temporarily

enters the territory of a country in which he or she does

not normally resides (non-resident), or who leaves that

territory, and any person who leaves the territory of a

country in which he or she normally resides (departing

resident)

or

who returns to that territory (returning

resident); and

(uu) Third Party refers to any person who deals

directly with the Bureau, for and on behalf of another

person,

relating

to

the

importation,

exportation,

movement or storage of goods.

SECTION

103.

When

Importation

Begins

and

Deemed Terminated. — Importation begins when the

carrying vessel or aircraft enters the Philippine territory

with the intention to unload therein. Importation is

deemed terminated when:

(a) The duties, taxes and other charges due upon the

goods have been paid or secured to be paid at the port of

entry unless the goods are free from duties, taxes and

other charges and legal permit for withdrawal has been

granted; or

(b) In case the goods are deemed free of duties, taxes

and

other

charges,

the goods have legally left the

jurisdiction of the Bureau.

SECTION 104. When Duty and Tax are Due on

Imported Goods. — Except as otherwise provided for in

this Act or in other laws, all goods, when imported into

the

Philippines,

shall

be

subject

to

duty

upon

importation, including goods previously exported from

the Philippines.

Unpaid duties, taxes and other charges, shall incur

legal

interest

of

twenty

percent

(20%)

per

annum

computed from the date of final assessment under

Section 429 of this Act, when payment becomes due and

demandable. The legal interest shall likewise accrue on

any fine or penalty imposed.

Upon payment of the duties, taxes and other charges,

the Bureau shall issue the necessary receipt or document

as proof of such payment.

SECTION 105. Effective Date of Rate of Import Duty.

— Imported goods shall be subject to the import duty

rates under the applicable tariff heading that are effective

at the date of importation or upon withdrawal from the

warehouse for consumption. In case of withdrawal from

free zones for introduction to the customs territory, the

duty rate at the time of withdrawal shall be applicable on

the goods originally admitted, whether withdrawn in its

original or advanced form.

In case of goods sold at customs public auction, the

duty rates at the date of the auction shall apply for

purposes of implementing Section 1143 (a) of this Act.

SECTION 106. Declarant. — A declarant may be a

consignee or a person who has the right to dispose of the

goods. The declarant shall lodge a goods declaration with

the Bureau and may be:

(a) The importer, being the holder of the bill of lading;

or

(b) The exporter, being the owner of the goods to be

shipped out; or

(c) A customs broker acting under the authority of the

importer or from a holder of the bill; or

(d) A person duly empowered to act as agent or

attorney-in-fact for each holder.

In case the consignee or the person who has the right

to dispose of the goods is a juridical person, it may

authorize a responsible officer of the company to sign the

goods declaration as declarant on its behalf.

The goods declaration submitted to the Bureau shall

be processed by the declarant or by a licensed customs

broker: Provided , That for importations, a transition period

of two (2) years from the effectivity of this Act is hereby

provided during which subparagraph (d) of this section

shall not be implemented by the Bureau: Provided,

further , That after two (2) years from the effectivity of this

Act, subparagraph (d) of this section shall take into effect

consistent with international standards and customs best

practices.

SECTION 107. Rights and Responsibilities of the

Declarant. — The declarant shall be responsible for the

accuracy of the goods declaration and for the payment of

all duties, taxes and other charges due on the imported

goods. The licensed customs broker shall likewise be

responsible for the accuracy of the goods declaration but

shall not be responsible for the payment of duties, taxes

and other charges due on the imported goods.

The declarant shall sign the goods declaration, even

when assisted by a licensed customs broker, who shall

likewise sign the goods declaration.

SECTION

108.

Penalties

for

Errors

in

Goods

Declaration. — The Bureau shall not impose substantial

penalties for errors when such errors are inadvertent and

there was no fraudulent intent or gross negligence in the

commission thereof: Provided , That in order to discourage

repetition of such errors, a penalty may be imposed but

shall not be excessive.

SECTION

109.

Application

of

Information

and

Communications Technology. — In accordance with

international

standards,

the

Bureau

shall

utilize

information and communications technology to enhance

customs control and to support a cost-effective and

efficient customs operations geared towards a paperless

customs environment.

The

Bureau

shall

communicate,

exchange

and

process trade- and logistics-related information in the

national and regional level for the efficient and prompt

clearance

of

goods

and

commodities

in

a

technology-neutral

and

secured

infrastructure

for

business, industries, and government.

The security of data and communication shall be in a

manner that is consistent with applicable local and

internationally

accepted

standards

on

information

security.

The

Bureau shall likewise include as part of its

systems and processes, a disaster preparedness and

recovery

plan

to

ensure

business

continuity

by

maintaining its uptime goal for its electronic and online

services.

For

purposes

of

customs

procedures,

electronic

documents,

permits,

licenses or certificates shall be

acceptable and shall have the legal effect, validity or

enforceability as any other document or legal writing:

Provided , That when the prescribed requirements are

duly complied with, the Bureau shall:

(a)

Recognize

the

authenticity

and

reliability

of

electronic documents;

© Compiled by RGL

95 of 201