Download - Bureau of-customs
Bureau of CustomsCamille Anne E. Duterte | 4LM3
Department of Finance
Formulates revenue policies ensure funding of critical government programs
that promote welfare And acceleration of economic growth and
stability. Revenue generation Resource mobilization Debt management Financial market development
Functions
Chairman of the Economic Development Cluster of the President’s Cabinet
DTI Secretary (2004-2005), DOF Secretary in 2005
Governor for Ph at the ADB, World Bank; Alternate Gov. at International Monetary Fund
Alumni Merit Awardee for the Kellogg Graduate School of Management in Northwestern Alumni University Awards (2014)
Four-time Finance Minister of the Year Doctor of Humanities, Honoris Causa,
Angeles University Certified Public Accountant De La
Salle University Chairman and Managing Partner of
the country’s largest professional services firm, SGV & Co (1999 – 2004)
named Fellow of the Eminent Southeast Asians Programme of the Singapore International Foundation in (2003)Cesar V. Purisima
Finance Secretary2010 - present
Bureaus
• Budget Call
• DecemberDepartment of
Budget Management
•Proposals from different divisions (income-generating Bureaus)
•March•Actual obligations•Current Expenses
Department of Finance •All proposals are consolidated by
one person•Should contain•Personal Expenses•Maintenance and Other Operating Expenses
•Capital Outlay•May or June•Expected final: November
Department of Finance
Annual Budgeting
• Proposals from different divisionsDepartment of Finance
• + or -• Analysis
Department of Budget Management
• Becomes President’s Proposal• Or National Expenditure ProgramDepartment of Finance
• Defense of DOF’s Budget Proposal by Undersecretary of Finance, Director, Technical Staff
• To Sponsor CongressmanSubcommittee Meeting
• Sponsor Congressman defends the Budget Proposal
Plenary Hearing | House of Representatives
• Defense of DOF’s Budget Proposal by Secretary of Finance
• To Sponsor SenatorsSubcommittee Meeting
• Sponsor Senators defend the Budget ProposalSenate
• Becomes the General Appropriations Act
Signature of the President of the Philippines
General Provision- Expenditure of allowance allocated Official Discretionary Fund Special Allotment Release Order- Right to obligate to pay ( Budgeting ) Notice of Cash Allocation- Authority to pay ( Accounting ) Technical Malversasion- Dispense money without conforming to the rules of the CoA- Administrative case
Annual Budgeting
Reports- monthly report to CoA Misuse- A. O. M. – disallowance Excess- Goes to National Treasury Appraisals- Lowest bidders
Annual Budgeting
History
Manila-Acapulco Galleon Trade
(1564)
1st Customs House:
Customs Service of Manila is organized
(1573)
Anchorage fees on visiting
Chinese junks.(1575)
Opium use was legalized but
limited to Sangleys(1780)
Galleon Trade begins(1600)
3% tax on trade with China.1st Parian is established
(1581)
History
1st formal customs house to utilize silk as tax payment for
imports from China:
Royal Silk market of St. Ferdinand
(1782)
Port of Manila was opened to Asian shipping
(1782)
End of Galleon Trade.
Real Compania de Filipinas was
established.(1815)
Suez Canal opened(1869)
Royal Decree opened Port of Manila and the Philippines to international
trade.(1834)
Port of Manila was declared a
free port(1832)
History
America intrudes Philippine Affairs.
Manila Customs House; Spanish tariff System was in
use.1st Collector of Customs:
C.A. Whittier(1898)
1st Collector of Customs under the American
Civil Government(1901)
US Tariff Act was passed(1909)
Ph gains independence from US.
Tariff Law remained in force
(1946)
Phil. Customs Service became
Bureau of Customs and Immigration
Commonwealth Act No 613 made
Immigration as separate Bureau
History
Tariff and Customs Code was amended
(1972)
BoC celebrated its centennial
Anniversary(2002)
BoC was reorganized pursuant to Customs Admin.
Order No. 4-65(1965)
Tariff and Customs Code of the Ph (R.A. No. 1937)Was enacted by Congress
(1953)
Pre-Spanish: barter system datus or rajahs collected tributes before a person may be engaged in trading
Spanish: Spanish Customs Law. Ad valorem levied on import and export Tariff Board collected uniform 10% ad valorem duty Tariff Code(1891)
American: Tariff Revision Law of 1901 Captain of the Port became Collector of Customs Tariff Revision Law of 1902 (imports from USA were exempted from tariff) Phil. Admin. Act No. 355 was passed on Feb. 6, 1902 establishing the Phil. Customs Service Public Act No. 430 renamed it as Bureau of Customs and Immigration
Commonwealth: The two became separate bureaus R.A. No.1937 provided for the Tariff Law of the Republic of the Phil. In 1957 (1st official
expression of autonomous Tariff policy
The Republic: Bureau Reorganization
History
Statutory and Regulatory provisions concerning: Import and export of goods Administrations and enforcement of rules and
regulations made by the BOC Includes Tariff and Customs Code of the Ph
Applies to all “Articles” coming within the territorial waters of the Ph on board vessels intending to unload on or after the said date
Customs Law
An authority or agency in a country responsible for collecting customs duties and taxes for controlling the flow of animals and goods in and out a country
Depending on local legislation and regulations, the import or export of some goods may be prohibited, restricted or regulated, and the agency enforces these rules.
Customs
A modernized and efficient customs administration that every Filipino can trust and
be proud of.
Vision
To assess and collect lawful revenues efficiently To effectively curb illicit trade and all forms of
customs fraud To facilitate trade in a secured manner To implement relevant technology for an efficient
and effective customs management aligned with the international customs best practices
To promote professionalism and integrity in the service
Mission
Assessment and collection of lawful revenues from importer articles and all other dues, fees, charges, fines, and penalties accruing under the tariff and customs law
Prevention and suppression of smuggling and other frauds upon the revenue
Primary Functions
Supervision and control over the entrance and clearance of vessels and aircraft engaged in foreign commerce
Enforcement of the tariff and customs laws and all other laws, rules and regulations relating to the tariff and customs administration
Ancillary Functions
Supervision and control over the handling of foreign mails arriving in the Ph for the collection of the lawful duty on the dutiable articles thus imported and the prevention of smuggling through the medium of such mails
Supervise and control all import and export cargoes, landed of stored in piers, airports, terminal facilities, including container yards and container freight stations, for the protection of government revenue
Exercise exclusive original jurisdiction over seizure and forfeiture cases under the tariff and customs law
Ancillary Functions
1) Prevent smuggling and other frauds 2) Control vessels/aircraft’s doing foreign trade 3) Enforce tariff and customs laws 4) Control the handling of foreign mails for revenues and prevention purposes 5) Control import and export cargoes6) Jurisdiction over forfeiture and seizure cases
Responsibilities
Operations
CollectionDuties
and Taxes
National Treasury
SpendingDOF
Process
Creation of General
Appropriations Acts
National Treasury
BoC
Commissioner of CustomsAlberto Lina
Deputy Commissioner
(IAG)Jesusa Lejos
Deputy Commissioner
(A&OCG)Agaton Uvero
Deputy Commissioner
(RCMG)Arturo Lachica
(I&EG)
Intelligence Div. Deputy
Commissioner Jessie Dellosa
Enforcement Div. Deputy
Commissioner Ariel
Nepomuceno
Deputy Commissioner
(MISTG)
Organizational Chart(Summary)
• Interest in forwarding industry• established the logistics company,
AIR21 and the Cargohaus Inc., U-Ocean Philippines Inc., and U-Freight Philippines, Inc., to name a few
• Chairman of the Lina Group of Companies and the PhilCycling.
• "Speed, integrity, and efficiency will be our trademarks.”
• levelling the playing field by ensuring fair, efficient, speedy, and hospitable services;
• battling corruption;• continuing to decongest ports
and improve systemic interventions by adapting to a growing economy getting busier every season;
• optimum performance from each and every officer and employee to transform the Bureau into a proactive organisation.
Alberto LinaCommissioner OF Bureau of Customs
Collect customs duties, taxes; account for all revenues
Exercise police authority Prevent and suppress smuggling, pilferage
and all economic frauds within all ports of entry
Supervise, control all exports, imports; administer all legal requirements
Functions of Commissioner(Exec. Order No. 127)
Bureau of CustomsCommissioners
AprIL 2015 – Present ALBERTO LINA
December 2013 – April 2015 JOHN P. SEVILLA
September 2011 - December 2013 ROZANNO RUFINO B. BIAZON
July 2010 - September 2011 ANGELITO A. ALVAREZ
Jan 2006 - July 2010 NAPOLEON L. MORALESJuly - Dec 2005 ALEXANDER M. AREVALO2005- 2005 ALBERTO D. LINA2004- 2005 GEORGE M. JEREOS2002 - 2004 ANTONIO M. BERNARDO2001 - 2002 TITUS B. VILLANUEVA1999 - 2001 RENATO A. AMPIL1998 - 1999 NELSON A. TAN1998 - 1998 PEDRO C. MENDOZA JR.1992 - 1998 GUILLERMO L. PARAYNO JR.1991 - 1992 TOMAS V. APACIBLE1987 - 1991 SALVADOR M. MISON1987 - 1987 ALEXANDER A. PADILLA1986 - 1987 WIGBERTO E. TAÑADA1977 - 1986 RAMON J. FAROLAN1975 - 1977 ALFREDO PIO DE RODA JR.
1968 - 1975 ROLANDO G. GEOTINA1965 - 1968 JUAN PONCE ENRILE1965 - 1966 JACINTO T. GAVINO1965 - 1965 PABLO C. MARIANO1964 - 1965 ALFREDO D. DE JOYA1964 - 1964 JOSE D. LINGAD1963 - 1964 RODRIGO D. PEREZ JR.1962 - 1963 NORBERTO ROMUALDEZ1962 - 1962 CESAR C. CLIMACO1961 - 1961 ROLANDO G. GEOTINA1960 - 1961 ELEUTERIO CAPAPAS1960 - 1960 TIMOTEO Y. ASERON1957 - 1960 ELEUTERIO CAPAPAS1955 - 1957 MANUEL P. MANAHAN1954 - 1955 JAIME VELASQUEZ1950 - 1954 ALFREDO V. JACINTO1947 - 1950 ALFREDO DE LEON
Assessment and
Operations Coordinatin
g Gathers and
publishes values of
commodities imported
Monitors implementati
on of rules and
regulations
Intelligence and
Enforcement
Gathers information
inquiry and investigation
police authority
Management
Information System and Technology
Supports the aim of BOC to assume
direct management and control
of IT facilities and services
Internal Administrat
ion
Assists Commissione
r in policy formulation
Revenue Collection Monitoring
Accounting of revenues collected
Administers legal
requirements of BOC
Audits liquidated
entries and bonds
Functions of Groups
Functions Verify vessel’s arrival and vessel’s registry
number ; receives bill of lading, commercial invoice,
packing list , import permit Computation of duties and taxes Lodgement of Single Administrative Document
Customs Broker
R.A. No. 9280 , Customs Brokers Act of 2004 – enacted on March 30, 2004; regulates the practice of customs brokersCustoms Broker – person duly accredited to practice in the Bureau of Customs; bona fide holder of a valid certificate of Registration/Professional Regulation CommissionChamber of Customs Brokers, Inc. - • Established in 1990• Current President:
Dennis del Pilar• Active Brokers (as of
June 2015): about 2,000 members
Expeditious advances of technology competition borne by globalization Dictates in the conduct of businesses,
individual travels and consumer demands by the World Trade Org.(WTO), the General Agreement on Tariffs and Trade(GATT), and ASEAN Free Trade Agreement(AFTA)
Growth of smuggling, drug trafficking, money laundering, movements of prohibited cargoes
Challenges
160 member states; Geneva, Switzerland headquarters
Aim: Regulation of trade One member state grants benefit to one
member state; must grant the same benefit to all states
Exception to the Most Favored Nation Principle: Free Trade Zones: NAFTA, MERCOSUR, EU, ASEAN
World Trade Org. (WTO)
1945, as result of WWII economic problems Anti-dumping law – prevented countries from dumping exports
at lower price 117 countries in 1994 1994 WTO place to negotiate reduction trade barriers, enforce
trade rules, disagreements Effects:
Global trade development Cheaper consumption, diverse supply of goods Producers found new markets and employment Promoted and secured liberalization in trade Reduce trade barriers and tariff
General Agreement of Tariff and Trade (GATT)
10 member states 3 Pillars: Political, Economic, Socio-cultural
Communities 2007 Summit 2015: Free flow of
goods, services, investments, capital and skilled labour
1 production-based market, 0 tariff rates, all non-tariff barriers will be abolished
One ASEAN community
Assoc. of Southeast Asian Nations (ASEAN)
Trade and Investment Liberalization- reduces tariffs and other barriers to trade and investment
Business Facilitation – reduces the costs of business transaction by improving access to trade information and aligning business policy and strategies to facilitate growth, and free and open trade.
Reduction of tariff – positively impacts trade and investment and overall development
Asia-Pacific Economic Cooperation (APEC)
“An act of any person or any agency who shall fraudulently import or bring into the Philippines or assist in so doing any article contrary to law shall receive, conceal, buy, sell or in any manner facilitate the transportation, concealment, or sale of such article after importation, knowing the same to have been imported contrary to law.” (Sec.3602)
Smuggling
poses serious and direct threat to the national economy by:1. depriving the government of the much
needed revenues2. unfairly competing with legitimate businesses3. to the national security through the entry of
illegal drugs or prohibited articles in the country
Anti-Smuggling Campaign
Phil. Port Authority Phil. National Police Presidential Anti-Organized Crime
Commission Special Projects Group Maritime Industry Authority National Intelligence Coordinating Agency Armed Forces of the Philippines Department of Justice
Other Agencies involved in the campaign
The Tariff Commission Phil. Ports Authority Board of Investments Garments and Textile Export Board Phil. Economic Zone Bureau of Import Services Phil. Shippers Bureau
Other Agencies that aid in the enforcement of import and export rules
10% of the fair market value of the smuggled and confiscated goods (P 1M per case) shall be given to informers instrumental in the discovery and seizure of such goods
Governed by Sec. 3515, TCCP
Reward
Domestic port open to both foreign and domestic trade
Principal Port of Entry – chief port of entry of the collection district wherein it is situated; has a customhouse, and is the permanent station of the District Collector
Sub-port of Entry – headed by a Port Collector of Customs, under the District Collector’s jurisdiction
Port of Entry (Collection District)
Collects duties, taxes and other charges Exercises police powers Supervises the entrance and clearance of
vessels engaged in foreign trade Supervises and controls handling of foreign
mail Supervises all import and export cargoes and
freight stations
District Collector of Customs
District Ports of Entry Sub-Port of EntryI San Fernando EPZA Baguio; Sual; SalomagueII-A Manila Masinloc, FTI Customhouse; Post Offi ce; Rosario EPZA-Cavite, PEZA LagunaII-B MICP North HarborIII NAIA Manila Domestic Airport; Airmall Distribution CenterIV Batangas Puerto Princesa-Palawan; Siain-QuezonV Legaspi Jose Panganiban-Camarines Norte; Tabaco-AlbayVI Iloilo Pulupandan-IloiloVII Cebu Mactan International Airport; DumagueteVIII Tacloban Isabel-Leyte; Catbalogan-Samara; San Jose-LeyteIX Surigao Bislig; NasipitX Cagayan de Oro Ozamis; IliganXI Zamboanga Zamboanga International Airport, Jolo, Tawi-tawi, Basilan, SuluXII Davao Dadiangas, ParangXIII SubicXIV Clark International AirportXV Port of Aparri Irene, Curimao, Loaog International AirportXVI Port of Limay Mariveles
Ports and Sub-Ports
Republic Act No. 1937 , Tariff and Customs Code of the Philippines
2 books: Tariff Law Customs Law
Tariff and Customs Code
Anything that may be made the subject of importation or exportation
Articles
All cargoes coming into the country To bring goods into a domestic port from a
foreign country Nothing is imported until it comes within the
limits of the port
Import
Outbound; outgoing cargoes from the Philippines
Export
Freely Importable Commodities Regulated Commodities Prohibited Commodities Conditionally free importations
Classification of Imports
GR: All articles, imported to the Ph, whether subjected to duty or not, shall be entered through a Customhouse at a port of entry, regardless of its nature or ownership
Reason: To ensure the proper collection of duties and
taxes National security purpose, protection to local
industry, securing public health
Rules on Articles
XPN: Articles for the official use of foreign
embassies, legations, consular officers and other representatives of foreign government
Provided: Privilege shall accord like privileges to
corresponding agencies of the Ph Upon specific instruction of the Finance Secretary
Rules on Articles
Firearms and parts thereof, any types of replicas, explosives and ammunition.
Printed subversive, obscene and pornographic materials Drugs or substances aiding abortion Gambling machines and articles of such (jackpot or pinball
machines, lottery sweepstakes Tickets, coin operated video machines Any precious metals without indications of actual fineness of quality Misbranded adulterated drugs or foodstuffs Prohibited drugs and plants/ seeds that prohibited drugs are made
of (coca leaves, poppy, marihuana) as well as smoking pipes and parts thereof
Prohibited Articles
Undervaluation - assigned too low a value Misclassification –assigned to the wrong
category Misdeclaration – declared incorrect
information (weight, measurement, quantity)
Less than by at least 10% (not more than 30%) than should be legally collected
Undervaluation, Misclassification, Misdeclaration
Ex Computation for Undervaluation:Duty as found –Duty as declared = Percentage differenceDuty as appraised/found
Declared value per unit = $1.00Value as found/appraise = $1.20
$1.20 - $1.00= $0.20 =16.17%$1.20
Computation
Not less than the difference between the full duty and the estimated duty as declared by importer
If misdeclaration/undervaluation is intentional, importer is subject to penal provision of Sec 3602, TCCP
Exceeding 30% is fraud penalized by Sec. 2530
Surcharge
Duties and Taxes
Duty Charged by government
on import and export of goods
Imposed upon imports and exports
Narrow scope
Tax Mandatory obligation
payable to the government
Imposed upon income, property, services, etc.
Wide scope
F.O.B (terms of shipment)FreightInsuranceDutiable Value (US$)
x Exchange Rate (Php)Taxable Value
x Rate of Duty (5% or 0%)Customs Duty
Duties and Taxes
Taxable ValueCustoms DutyBrokerage FeeArrastre FeeWharfage Fee (PPA)Customs StampImport Processing Fee (Global Tax)L.C.
--- x xx 12 % VAT
VAT
Duties and Taxes
Summary:Customs DutyVATImport Processing FeeTotal Duties and Taxes
Duties and Taxes
Letter of Credit Commercial invoice Clearance Bill of Lading
Documents for Importing and Exporting
basically a guarantee or promise by a bank on behalf of the buyer to pay the seller a specified sum in the agreed currency, provided that the seller submits the required documents by a predetermined deadline.
Letter of Credit
Seller/Exporter
Beneficiary
Buyer / Importer
Application copy of L/C
IMPORT LETTER OF CREDIT ( L/C ) TRANSACTION
BPI Global City , Taguig
Applies L/C to Opening Bank
.
Opening / Issuing Bank
CITIBANK – New YorkAdvising / Negotiating Bank
Inquires the product & price lists …
Copied from: Customs Clearance Procedure, Louvie Dieron , Danna Nicole Maraña, slideshare, 2014
Written account, or itemized statement of merchandise shipped or sent to a purchaser, consignee, factor, etc., with the quantity and value or prices and charges annexed and may be as appropriate to a consignment or a memorandum shipment as it is to a sale
Bill or record of transaction between the seller and buyer
Commercial Invoice
Electronic verification of licenses to prevent fraudulent use or use of spurious documents
In conjunction with other agencies
Clearance
Document that establishes the terms of a contract between a shipper and a transportation company.
Document of title, a contract of carriage and a receipt for goods
3 important functions Conveys title to the goods Receipt of acknowledgment of the goods signed by
the carrier Serves as a contract of transportation between the
shipper and the carrier
Bill of Lading
Import Process
Informal Entry Articles intended for commerce dutiable value
of which is P200,000 or less Personal household effects/ non-commercial
articles Formal Entry
May be for immediate consumption Consumption Entry Warehousing Entry
Formal entry declaration ( consumption )
Republic Act No. 7925, March 1, 1995 Privately-owned and reputable IT Company accredited
by the Bureau of Customs Extends the services being offered by the Bureau by
being the first line of contact of BOC clients for most business transactions
Accredited: eKonek Pilipinas Cargo Data Exchange Center InterCommerce Network Service Crimson Logic Philippines, Inc.
Value Added Service Provider (VASP)
COLOR LANES good to good; forward to Arrastre
payment; release
document inspection; comply
alert shipment (CISS, Office of Commissioner)
shipment problem: underdeclaration, goods; subject for physical inspection by Examiner
VASP EPD
Release of cargo
FED
Entry Processing Division
Formal Entry Division Collection
division ARRASTRE/
Wharfage FCL Warehouse
GREEN LANE
YELLOW LANE
RED LANE
ARRASTRE/ Wharfage LCL Warehouse
CY CFS
FORMAL ENTRY PROCESS
Copied from: Customs Clearance Procedure, Louvie Dieron , Danna Nicole Maraña, slideshare, 2014
Broker CPRS -Client profile
registration system
VASP- Value Added Services Provider
Warehouse Assessment Division -
EPU
FORMAL ENTRY PROCESS (WAREHOUSING)
Copied from: Customs Clearance Procedure, Louvie Dieron , Danna Nicole Maraña, slideshare, 2014
Warehouse Assessment Division EPU
GREEN LANE YELLOW LANE RED LANE
WAD –Examination &Appraisal
BONDS DIVISION
Pier and Inspection Division
ARRASTRE / WHARFAGE
Transfer of Goods
Operating DivisionMBWD/PBWD/GMBWD
IMPORT LETTER OF CREDIT ( L/C ) TRANSACTION
Copied from: Customs Clearance Procedure, Louvie Dieron , Danna Nicole Maraña, slideshare, 2014
retail establishments licensed by the government to sell duty and tax free merchandise for the convenience of travellers.
Government earns revenues from the operation of these stores which are utilized to defray tourism and other related projects.
Duty Free
Exporter : will provide Final booking number Commercial invoicePacking list Bill of Lading
IMPORT SECURITY FILING (ISF) on US only
Broker
Receives : Bill of ladingCommercial Invoice Packing List
BUYERPURCHASE ORDER/ LETTER OF CREDIT (
LC) Prepares : Export Declaration (ED)
Copied from: Customs Clearance Procedure, Louvie Dieron , Danna Nicole Maraña, slideshare, 2014
EXPORT PROCEDURE
Programs
1. Authorized Economic Operator Program2. Voluntary Disclosure Program3. E2m Customs System
importers, exporters, customs brokers, forwarders, and other entities duly accredited by the bureau based on international standards and various national best practices, and which are entitled to minimal requirements for processing of goods.
offers certain benefits and incentives to certain economic operators considered as BOC’s trusted allies
Reduce processing periods
Authorized Economic Operator Program
importers the opportunity to correct any erroneous, inaccurate or insufficient information previously declared to customs authorities by reason of pure mistake, negligence or inadvertence.
compromise the imposition of fines
Voluntary Disclosure Program
to enhance BOC’s core and support ICT systems nationwide
Through Internet-based and wireless technologies, the Project will streamline imports and exports processing and improve trade facilitation among BOC, other government agencies and its stakeholders anywhere, anytime—all towards the realization of the National and ASEAN Single Windows
e2m Customs System
1. Corruption2. Smuggling3. Balikbayan Boxes4. Customs Modernization Act
Issues
Two types: Outright Smuggling Technical Smuggling
Misclassification Federation of Phil. Industries, Fight Illicit
Trade Movement
Smuggling
shipments of rice worth P1.2 B counterfeit products, P621.95 M vessels, P150 M medicines, P62.7 M motor vehicles, P50 M ukay-ukay or used clothing P33.7 M foodstuff, P32.7 M other items violating the Intellectual Property Rights Law, P30
M steel, P23.5 M sugar and other agricultural products, P14.5 M
Smuggling
Solicited for a bribe fell from 50% in 2012 to 44% in 2013 and 2014/15.
Only 13% of those solicited for a bribe reported it
23% said most companies in their line of business give bribes to win private sector contracts
90% agreed "Corruption will be reduced by the passage of a strong law on the right of the people to information from the government."
Corruption
"Some importers and brokers would resort to bribery just to make their transactions with the Bureau faster, and at the same time, with little or no knowledge of the import process, traders are often victimized or exploited by unscrupulous Customs employees“-John Sevilla, former Customs Commissioner
Corruption
as mandated by Pres. Ferdinand Marcos, should not exceed $500 in value, otherwise, subject to tax
benefit extending only to balikbayan boxes by OFWs who have intentions of returning to the country
Balikbayan Boxes
Why are they being opened? To protect the legitimate interests of
consignors/senders and their consignees, in particular, and the transacting public, in general;
To protect the interest of the government; To prevent and suppress smuggling and
other fraud upon customs.
Balikbayan Boxes
Why are they being delayed? Unforeseen circumstances and/or natural calamity like
typhoon that sets back the arrival of cargo carrying vessels; Consolidated shipments are tainted by:
Undeclared and/or misdeclared goods; Banned or regulated cargoes like firearms and
ammunitions, prohibited drugs, pornographic materials, gambling materials/apparatus;
Goods in commercial quantity; Consolidated shipments that are abandoned by the Philippine
agent/ representative/ broker for reasons of non-remittance of funds by the foreign freight forwarding entity/ consolidator.
Balikbayan Boxes
to keep up with changing international standards
to make customs valuation and inspection procedures more transparent and predictable
to implement automated procedures. reduce logistic chain costs and enhance the
country’s competitiveness.
Customs Modernization and Tariff Act
removal of the current de minimis (P 10.00) adjust P10,000 value of Balikbayan boxes to
P150,000 increased fines and penalties use of Information Communications
Technology (ICT)
Customs Modernization and Tariff Act
Interviewees:• Ma Luisa NotarioBudget Officer, Department of Finance• Mr. Marlon
BayonaCustoms Broker