FORMAL ENTRYPROCESS, PROCEDURES, MODES OF PAYMENT

Only BOC-accredited/registered importers

Who can transact business with BOC for the processing/clearance of their importations?

Yes, as long as they are accredited/registered with the BOC

Can a natural or juridical person transact with the bureau?

All goods into the Philippines are subject to duty and tax upon importation, including goods previously exported from the Philippines, except otherwise provided for in the CMTA or in other laws

Based on Sec 104 of CMTA, what is the general rule regarding duties and taxes on imported goods?

Importation begins when the carrying vessel/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 and the 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.

According to Sec. 103 of CMTA, when does the importation begin, and is deemed terminated?

Sec. 116 Free importation and exportation

Sec. 117 Regulated Importation and Exportation

Sec. 118 Prohibited Importation and Exportation

Sec. 119 Restricted Importation and Exportation

What are the types of Importation and exportation?

When the goods declaration is ELECTRONICALLY LODGED, together with any required supporting documents, with the pertinent customs office

According to Sec.115 of CMTA, when are imported goods considered entered for consumption in the Philippines?

Goods Declaration

This shall refer to a statement made in the manner prescribed by the Bureau and other appropriate agencies by which the persons concerned indicate the procedure to be observed in the application for the entry or admission of imported goods and the particulars of which the customs administration shall require

• Consumption

• Warehousing/CBW

• Admission

• Conditional Importation

• Transit

What are the types of Goods Declaration?

a. goods with FOB/FCA value of less than Php 50,000.00

b. Personal and Household Effect, not in commercial quantity, imported in a passenger’s baggage or mail

What are the goods that shall be cleared through an informal entry process

Letter of credit or any verifiable commercial document evidencing payment

If no sales for export, any commercial documents indicating the value of goods

All importations entered through a formal entry process shall be covered by what?

RA 8792 Electronic Commerce Act of 2000

What Republic Act governed the electronic submission of goods declaration?

Actionable Documents

What is it called when the declaration is printed and certified by a competent customs officer as a faithful reproduction of the electronic submission?

The goods declaration has been lodged with the Bureau

When does the entry of imported goods shall be allowed?

Within 15 days from the date of discharge of the last package from the vessel or aircraft

When must the goods declaration be lodged?

Commissioner

Who may adjust the period for the lodgement of goods declaration?

Yes, upon written request

another 15 days

Is the lodgement of the goods declaration can be extended?

Collector of Customs, as may be autorized by the Commissionerr

Who will approve the extension for the lodgement of the goods declaration

Before the expiration of the original period

When can you request the extension for goods declaration?

within 7 working days otherwise the request for extension shall be approved

How many days does the request for extension of goods declaration take to be acted?

Yes

Can the importer request an extension for the goods declaration and lodge a provisional goods declaration at the same time?

• Express Shipment

• those enrolled in any of the trade facilitation programs: Super Green Lanes, Authorized Economic Operator, Bulk and Break Bulk Cargo Clearance and Enhancement Program

Who can lodge a goods declaration prior to the arrival of the goods?

Prior to the final assessment or examination of goods

When can a declaration amend the goods declaration?

Post Modification of SAD

It is the process used when it is necessary to revise the data in the SAD. It includes the post assessment and post entry modification

Post Assessment

It is the stage where the shipment is already assessed but not yet released from Customs (i.e Green lane entries)

Post Entry

It is the stage where the shipment has already been released from customs

In-House Bank

Where to settle the additional duties and taxes calculated as a result of post assessment

Inspection Act

For short shipment, where can you modify or amend the SAD regarding the number of packages and/or gross weight

Letter Request to the District Collector

What does the declarant need to submit for the Post Modification of Sad?

Office of Deputy Commissioner, AOCG for approval

Where can the requests for SAD cancellation be forwarded?

Sad Cancellation

It is a process used when it is necessary to revise data in assessed SAD, which cannot be done in PMS

Electronic re-lodgement of New SAD

What is necessary for the sad cancellation in order to clear the goods/shipment from customs?

E2MSad Cancellation Form

What form shall be used for the Sad Cancellation

Letter Request addressed to District Collector

Documents required for the change of the Consignee, Customs Broker, and Other Non-Modifiable Data for SAD cancellation

No

Is the approval of DepCom AOCG required if the ground for SAD Cancellation is E2M exceptional error or MISTG-related errors?

Immediately after the goods declaration has been lodged

When shall the examination of goods be conducted?

Yes, it is given to live animals, perishable goods, and other goods requiring immediate examination

Is there any priority to the examination of goods?

a. Documentary Check

Non-intrusive inspection

Physical examination

Types of Examination ofGoods

yes

Is the x-ray examination of all containerized cargoes bound to CBW mandatory?

Importer

Who shall born the expense of request examination?

Consignee’s Premises or Warehouse

When shall the examination take place if the importation is consigned to an importer enrolled in any of the trade facilitation programs of the Bureau

As minimal as possible

How much samples of the goods shall the examiner take?

It should be properly receipted for and retained

If customs officers took a sample during examination, what should be done next?

Assessment

Refers to the process of determining the amount of duties and taxes and other charges due on imported and exported goods

Tentative Assessment

What is it called when the assessment is based on a provisional goods declaration of the declarant and when the duties and taxes initially assessed are subject of a valid dispute on the grounds of valuation?

Final Assessment Notice (FAN)

What shall the Bureau issue to the importer signifying that the assessment is complete?

Final Assessment Notice (FAN)

This shall serve as a payment instruction to the AAB to debit the amount of duties, taxes, and other charges from the account of the importer.

15 calendar days after receipt of AN

When does the assessment be deemed final?

Register in the CPRS with their JO 2-91 identification number

What do the government agencies eligible for the deferred payment scheme do in order to import goods?

DPG

What shall the government agencies for importation enter in Box 37 of SAD?

No, it should be selected as Yellow

Is the importation of government agencies automatically selected as green?

20% per annum computed from the date of final assessment

How much interest shall the party incur? when failing to pay duties, taxes, and other charges

Online Cargo Release System (OLRS)

Where shall the Bureau transmit the release instructions for the delivery of the goods to the consignee?

3 years from the date of final payment or upon completion of post-clearance audit

In the absence of fraud, when shall the goods be conclusive

Within 48 hours from the online filing of the Goods Declaration

When shall the original hard copies of the Goods Declaration and supporting documents be submitted at the CCC

B. Within 24 hours to the Section Chiefs in the Assessment Division (for POM and MICP) or the Chief of the Assessment Division (for other ports)

After the ETU personnel assigned at the Customs Care Center (CCC) receive the hard copy of a goods declaration for consumption, when and to whom should it be transmitted?

Liquidation and Billing Division (LBD)

After the COO-5 reviews and approves the recommendation of the COO-3, where should the hard copy of the goods declaration be forwarded?

48 hours from receipt of declaration

The COO-3 and COO-5 are required to complete the examination, review, approval, and forwarding of the hard copy of the goods declaration to the LBD within:

Entry Processing Unit (EPU)

If there is no CCC available, to whom shall the hard copies of goods declaration and supporting documents be submitted?

Advising Bank (Bank in PH)

It is the bank that advises the credit at the request of the issuing bank

Applicant (Importer)

It is the party on whose request the credit is issued

Beneficiary (Exporter)

It is the party in whose favour a credit is issued

Complying Presentation

It is a presentation that is in accordance with the terms and conditions of the L/C

Commercial Invoice and Bill of Lading or Airwaybill of Lading

What are the necessary documents to be presented by the beneficiary?

Documents Against Payment (D/P)

It is the mode of payment where the AABs shall advise the importer of the receipt of the complete original documents and effect the release of said documents to the importer upon receipt of payment.

Documents Against Acceptance (D/A)

It is a mode of payment where the original shipping documents are released to the importer by the AAB at the instance of the seller’s bank upon the importer’s acceptance of the seller’s bill of exchange obligating the importer pay for the shipment at some future date.

Open Account O/A

It is a mode of payment where the shipping documents are sent directly to the buyer upon the importer’s promise to pay at some future date. D/A or O/A must be payable at least 30 days after B/L date

Direct Remmitance (DR)

It is a mode of payment where banks may service within 29 calendar days after B/L date applications for direct remittance of import payments upon presentation of the complete original shipping documents and import clearance in case of regulated goods

Self-Funded/”No Dollar” Imports

These are imports funded by the importer’s own foreign currency deposit accounts or those sent by suppliers abroad for which no payment in foreign exchange will be made, whether immediate or potential

Importations on Consignment Basis

It is a foreign arrangement where importations by export producers from raw materials from foreign suppliers abroad for the manufacture of goods for export to the party that supplied the raw materials.