Import Clearance and Customs Procedures Review

Practice flashcards covering the Philippine Bureau of Customs import clearance process, including accreditation, goods declaration, assessment, and modes of payment based on the CMTA and relevant CMOs.

Accreditation as Importer

A requirement where only BOC-accredited/registered natural or juridical persons can transact business with the Bureau of Customs for the processing or clearance of importations.

Section 103, CMTA

The legal provision stating that importation begins when the carrying vessel/aircraft enters Philippine territory with the intent to unload, and is terminated when duties/taxes are paid and legal permit for withdrawal is granted.

Conditional Importation

Also known as temporary admission, where certain goods are brought into a customs territory relieved from payment of import duties and taxes for a specific purpose subject to reexportation.

Section 115, CMTA

Specifies that imported goods are deemed "entered" for consumption in the Philippines when the goods declaration is electronically lodged with the pertinent customs office.

Informal Entry Process

The clearance method for goods of a commercial nature with a Free on Board (FOB) or Free Carrier At (FCA) value of less than $P50,000.00$, or non-commercial personal and household effects.

SAD Box 41

The specific box in the Single Administrative Document (SAD) used for supplemental units, which is mandatory to fill up according to CMO 49-2019 and CMO 2-2021.

Republic Act No. 8792

The "Electronic Commerce Act of 2000" and its Implementing Rules and Regulations, which govern electronically submitted goods declarations.

Lodgement Period

The timeframe for lodging a goods declaration, which is 15 calendar days from the date of discharge of the last package, extendable for another 15 calendar days upon written request.

Post Modification of SAD (PMS)

A process used to revise data in the SAD, divided into post assessment (before release) and post entry (after release) stages.

SAD Cancellation (SC)

A process used to revise data in an assessed SAD that cannot be done under the Post Modification of SAD, requiring electronic re-lodgment of a new SAD.

Non-Intrusive Inspection

Examination of goods using X-ray machines or other non-intrusive equipment, which is mandatory for all containerized cargoes bound for a Customs Bonded Warehouse (CBW).

Blue Lane

A Bureau of Customs selectivity lane indicating that the declaration is tagged for post clearance.

Examination at Consignee’s Premises

Physical inspection conducted at the importer's warehouse for alerted shipments if the importer is enrolled in trade facilitation programs or if the Bureau lacks necessary facilities.

Tentative Assessment

Occurs when assessment is based on a provisional goods declaration or when duties and taxes are subject to a valid dispute regarding valuation, classification, or rules of origin.

Final Assessment Notice (FAN)

The Bureau's notice signifying complete assessment, acting as a payment instruction to the Authorized Agent Bank (AAB) to debit duties and taxes; it becomes final 15 calendar days after receipt.

Legal Interest

A rate of $20\%$ per annum computed from the date of final assessment for unpaid duties, taxes, and other charges when payment becomes due and demandable.

Period of Limitation (Section 430)

The provision stating that final assessment and release are conclusive upon all parties 3 years from the date of final payment, in the absence of fraud.

Automated Routing and Monitoring System (ARMS)

A system that randomly assigns goods declarations to a COO III (Examiner) and COO V (Appraiser) at the port of discharge.

UCP 600

The Uniform Customs and Practices for Documentary Credits, which provides the basic rules and common terms for Letter of Credit (L/C) transactions.

Documents Against Acceptance (D/A)

A mode of payment where shipping documents are released to the importer upon acceptance of a bill of exchange, necessitating payment at a future date, at least 30 days after the B/L date.

Direct Remittance (DR)

A payment mode where banks service import payments within 29 calendar days after the Bill of Lading (B/L) date upon presentation of original documents.

No Dollar Imports

Also known as Self-Funded imports, these are funded by the importer's own foreign currency accounts or sent by suppliers for which no foreign exchange payment is made.