CL DAY 5 - power to inspect / AO / seizure and forfeiture proceedings

Under CMTA §224, who has the authority to exercise the power to inspect and visit?

Commissioner OR a customs officer authorized in writing by the Commissioner.

What imported goods may be inspected under Sec. 224?

Imported goods openly offered for sale OR kept in storage.

What may the authorized customs officer demand from the person in possession of imported goods?

Evidence of payment of duties and taxes.

How long is the period given to produce evidence of payment of D&T?

15 days

What happens if evidence of D&T payment is not produced within 15 days?

The goods may be seized and subjected to forfeiture proceedings.

Does failure to produce proof within 15 days automatically mean the goods are finally forfeited?

No. The goods may be seized and subjected to forfeiture proceedings, during which the interested party is given an opportunity to prove the source and payment of D&T.

During forfeiture proceedings, what must the interested party be given the opportunity to prove?

1) Source of the goods and

2) payment of duties and taxes.

What is an LOA?

BACK: The written authorization of the Commissioner allowing customs officers to exercise the power to visit, inspect, and when necessary demand evidence of D&T payment.

Who issues the LOA?

Commissioner

Who may implement an LOA?

Only customs officers authorized in writing by the Commissioner.

May deputized officers assist in implementing an LOA?

Yes, when the Commissioner requires their assistance.

When does the validity of an LOA commence?

and

When does an LOA terminate?

Upon issuance.

Upon completion of the mission.

What is the basic distinction between LOA and MO?

LOA = written authority.
MO = document issued to implement the LOA.

What persons must be identified in the LOA?

Customs Officers authorized to implement the LOA

What places must be identified in the LOA?

stores, stalls, exhibition places, warehouses, and enclosures where imported goods are openly offered for sale or kept in storage.

When must the LOA be exhibited?

Immediately at the start of the exercise.

What is required if the occupant/person in possession is absent?

Entry shall be in the presence of any 2 witnesses who are residents of the same locality, OR barangay officials, OR a building-management representative.

What is conducted if evidence of payment is produced?

An inventory of the foreign goods.

Who should be present during the inventory?

The owner/person in possession and the authorized customs officer, with the required witnesses where applicable.

What document records the details of the inventory?

Inventory Report.

Who signs the Inventory Report?

authorized customs officer, person in possession, and witnesses.

What happens after the Inventory Report is prepared and signed?

A copy is furnished to the person in possession, who must acknowledge receipt.

if the person in possession refuses to acknowledge receipt

A copy shall be posted in a conspicuous space in the building or premises.

What is the significance of 15 days under the inspection procedure?

The owner/person in possession has 15 days to produce evidence of payment of D&T.

failure to produce D&T proof within 15 days?

The goods may be seized and subjected to forfeiture proceedings.

During the 15-day period, what is the status of the goods?

CCC

Constructive Customs Custody

- Customs custody/control over the goods without necessarily physically removing them from the premises.

restricted or regulated goods are found without the required import permit

Recommend issuance of a Warrant of Seizure and Detention (WSD).

What happens if prohibited goods are discovered during the inspection?

shall be confiscated under the Plain View Doctrine.

What undertaking must the owner/person in possession execute?

the goods will not be removed from their place without BOC authority.

What happens if the owner refuses to execute the undertaking?

padlocked or sealed and shall be continuously underguarded.

After seizure, within how long must the authorized customs officer witness delivery of the goods to the Collector?

Within 24 hours from service of the WSD.

what fund are transportation and warehousing expenses of seized goods taken?

Forfeiture Fund.

What important report must be included in the reports submitted to the Commissioner?

Inventory Report.