Bureau of Custom (PH) (some slides were copied from various ppts on Customs. Reference found in the notes)

1. Bureau of Customs
Camille Anne E. Duterte | 4LM3
Department of Finance

4.  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

6.  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 Secretary
2010 - present

7. Bureaus

8. •Budget Call
•December
Department 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

9. • Proposals from different divisionsDepartment of Finance
• + or -
• Analysis
Department of Budget
Management
•Becomes President’s Proposal
•Or National Expenditure Program
Department of Finance
•Defense of DOF’s Budget Proposal by Undersecretary of Finance,
Director, Technical Staff
•To Sponsor Congressman
Subcommittee Meeting
• Sponsor Congressman defends the Budget
Proposal
Plenary Hearing | House of
Representatives
•Defense of DOF’s Budget Proposal by Secretary of
Finance
•To Sponsor Senators
Subcommittee Meeting
• Sponsor Senators defend the Budget ProposalSenate
•Becomes the General Appropriations ActSignature of the President of the
Philippines

10.  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

11.  Reports
- monthly report to CoA
 Misuse
- A. O. M. – disallowance
 Excess
- Goes to National Treasury
 Appraisals
- Lowest bidders
Annual Budgeting

14. 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)

15. 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)

16. 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

17. 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)

18.  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

19.  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

20.  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

21. A modernized and efficient customs administration that
every Filipino can trust and be proud of.
Vision

22.  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

23.  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

24.  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

25.  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

26. 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 cargoes
6) Jurisdiction over forfeiture and seizure cases
Responsibilities

28. Operations
Collection
Duties
and Taxes
National
Treasury
Spending
DOF
Process
Creation of
General
Appropriations
Acts
National
Treasury
BoC

30. Commissioner of
Customs
Alberto 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)

31. • 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 Lina
Commissioner OF Bureau of Customs

32.  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)

33. Bureau of Customs
Commissioners
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. MORALES
July - Dec 2005 ALEXANDER M. AREVALO
2005- 2005 ALBERTO D. LINA
2004- 2005 GEORGE M. JEREOS
2002 - 2004 ANTONIO M. BERNARDO
2001 - 2002 TITUS B. VILLANUEVA
1999 - 2001 RENATO A. AMPIL
1998 - 1999 NELSON A. TAN
1998 - 1998 PEDRO C. MENDOZA JR.
1992 - 1998 GUILLERMO L. PARAYNO JR.
1991 - 1992 TOMAS V. APACIBLE
1987 - 1991 SALVADOR M. MISON
1987 - 1987 ALEXANDER A. PADILLA
1986 - 1987 WIGBERTO E. TAÑADA
1977 - 1986 RAMON J. FAROLAN
1975 - 1977 ALFREDO PIO DE RODA JR.
1968 - 1975 ROLANDO G. GEOTINA
1965 - 1968 JUAN PONCE ENRILE
1965 - 1966 JACINTO T. GAVINO
1965 - 1965 PABLO C. MARIANO
1964 - 1965 ALFREDO D. DE JOYA
1964 - 1964 JOSE D. LINGAD
1963 - 1964 RODRIGO D. PEREZ JR.
1962 - 1963 NORBERTO ROMUALDEZ
1962 - 1962 CESAR C. CLIMACO
1961 - 1961 ROLANDO G. GEOTINA
1960 - 1961 ELEUTERIO CAPAPAS
1960 - 1960 TIMOTEO Y. ASERON
1957 - 1960 ELEUTERIO CAPAPAS
1955 - 1957 MANUEL P. MANAHAN
1954 - 1955 JAIME VELASQUEZ
1950 - 1954 ALFREDO V. JACINTO
1947 - 1950 ALFREDO DE LEON

34. Assessment
and
Operations
Coordinating
Gathers and
publishes values
of commodities
imported
Monitors
implementation
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
Administration
Assists
Commissioner
in policy
formulation
Revenue
Collection
Monitoring
Accounting of
revenues
collected
Administers
legal
requirements of
BOC
Audits
liquidated
entries and
bonds
Functions of Groups

35.  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

36. R.A. No. 9280 , Customs
Brokers Act of 2004 – enacted
on March 30, 2004; regulates
the practice of customs
brokers
Customs Broker – person duly
accredited to practice in the
Bureau of Customs; bona fide
holder of a valid certificate of
Registration/Professional
Regulation Commission
Chamber of Customs Brokers,
Inc. -
• Established in 1990
• Current President: Dennis
del Pilar
• Active Brokers (as of June
2015): about 2,000
members

37.  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

38.  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)

39.  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)

40.  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)

41.  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)

42.  “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

43.  poses serious and direct threat to the national
economy by:
1. depriving the government of the much needed
revenues
2. unfairly competing with legitimate businesses
3. to the national security through the entry of illegal
drugs or prohibited articles in the country
Anti-Smuggling Campaign

44.  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

45.  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

46.  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

47.  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)

48.  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

49. District Ports of Entry Sub-Port of Entry
I San Fernando EPZA Baguio; Sual; Salomague
II-A Manila Masinloc, FTI Customhouse; Post Office; Rosario EPZA-Cavite, PEZA Laguna
II-B MICP North Harbor
III NAIA Manila Domestic Airport; Airmall Distribution Center
IV Batangas Puerto Princesa-Palawan; Siain-Quezon
V Legaspi Jose Panganiban-Camarines Norte; Tabaco-Albay
VI Iloilo Pulupandan-Iloilo
VII Cebu Mactan International Airport; Dumaguete
VIII Tacloban Isabel-Leyte; Catbalogan-Samara; San Jose-Leyte
IX Surigao Bislig; Nasipit
X Cagayan de Oro Ozamis; Iligan
XI Zamboanga Zamboanga International Airport, Jolo, Tawi-tawi, Basilan, Sulu
XII Davao Dadiangas, Parang
XIII Subic
XIV Clark International Airport
XV Port of Aparri Irene, Curimao, Loaog International Airport
XVI Port of Limay Mariveles
Ports and Sub-Ports

52.  Republic Act No. 1937 , Tariff and Customs Code of
the Philippines
 2 books:
 Tariff Law
 Customs Law
Tariff and Customs Code

53.  Anything that may be made the subject of
importation or exportation
Articles

54.  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

55.  Outbound; outgoing cargoes from the Philippines
Export

56.  Freely Importable Commodities
 Regulated Commodities
 Prohibited Commodities
 Conditionally free importations
Classification of Imports

57.  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

58.  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

59.  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

60.  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

61.  Ex Computation for Undervaluation:
Duty as found –
Duty as declared = Percentage difference
Duty as appraised/found
Declared value per unit = $1.00
Value as found/appraise = $1.20
$1.20
- $1.00
= $0.20 =16.17%
$1.20
Computation

62.  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

63. 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

64. F.O.B (terms of shipment)
Freight
Insurance
Dutiable Value (US$)
x Exchange Rate (Php)
Taxable Value
x Rate of Duty (5% or 0%)
Customs Duty
Duties and Taxes

65. Taxable Value
Customs Duty
Brokerage Fee
Arrastre Fee
Wharfage Fee (PPA)
Customs Stamp
Import Processing Fee (Global Tax)
L.C.
--- x x
x 12 % VAT
VAT
Duties and Taxes

66. Summary:
Customs Duty
VAT
Import Processing Fee
Total Duties and Taxes
Duties and Taxes

67.  Letter of Credit
 Commercial invoice
 Clearance
 Bill of Lading
Documents for Importing and
Exporting

68.  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

69. 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 York
Advising / Negotiating Bank
Inquires the product & price lists …

70.  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

71.  Electronic verification of licenses to prevent
fraudulent use or use of spurious documents
 In conjunction with other agencies
Clearance

72.  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

73. 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

74. Formal entry declaration ( consumption )

75.  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)

76. 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

77. VASP EPD
Release of cargo
FED
EntryProcessingDivision
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

78. Broker
CPRS-Clientprofile
registrationsystem
VASP-ValueAdded
ServicesProvider
Warehouse
Assessment
Division -EPU
FORMAL ENTRY PROCESS (WAREHOUSING)
Copied from: Customs Clearance Procedure, Louvie Dieron , Danna Nicole Maraña, slideshare, 2014

79. 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 Division
MBWD/PBWD/GMBWD
IMPORT LETTER OF CREDIT ( L/C ) TRANSACTION
Copied from: Customs Clearance Procedure, Louvie Dieron , Danna Nicole Maraña, slideshare, 2014

84.  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

86. Exporter : will provide
Final booking number
Commercial invoice
Packing list
Bill of Lading
IMPORT SECURITY FILING
(ISF) on US only
Broker Receives : Bill of lading
Commercial Invoice
Packing List
BUYER
PURCHASE ORDER/
LETTER OF CREDIT (
LC)
Prepares : Export
Declaration (ED)
Copied from: Customs Clearance Procedure, Louvie Dieron , Danna Nicole Maraña, slideshare, 2014
EXPORT PROCEDURE

87. Programs
1. Authorized Economic Operator Program
2. Voluntary Disclosure Program
3. E2m Customs System

88.  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

89.  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

90.  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

91. 1. Corruption
2. Smuggling
3. Balikbayan Boxes
4. Customs Modernization Act
Issues

92.  Two types:
 Outright Smuggling
 Technical Smuggling
 Misclassification
 Federation of Phil. Industries, Fight Illicit Trade
Movement
Smuggling

93.  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

95.  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

96.  "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

97.  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

98. 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

99. 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

101.  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

102.  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

103. Interviewees:
• Ma Luisa Notario
Budget Officer,
Department of Finance
• Mr. Marlon Bayona
Customs Broker