Proposed Bureau of Customs Order On Security To Guarantee Payment of Duties and Taxes
Proposed Bureau of Customs Order On Security To Guarantee Payment of Duties and Taxes
Proposed Bureau of Customs Order On Security To Guarantee Payment of Duties and Taxes
DEPARTMENT OF FINANCE
BUREAU OF CUSTOMS
MANILA 1099
NO. ________________
Section 1. Scope. This CAO applies to all forms of security required to guarantee
payment of duties and taxes and other obligations provided for under the CMTA and
other existing rules and regulations.
Section 2. Objectives.
2.2. To ensure that the interest of the government are amply protected with
the securities posted.
Section 3. Definition of Terms. For purposes of this CAO, the following terms
shall be defined as follows:
3.3. Free Zones shall refer to special economic zones registered with the
Philippine Economic Zone Authority (PEZA) under Republic Act No. 7916,
as amended, duly chartered or legislated special economic zones and
freeports such as Clark Freeport Zone; Poro Point Freeport Zone; John
Hay Special Economic Zone and Subic Bay Freeport Zone under Republic
Act No. 7227, as amended by Republic Act No. 9400; the Aurora Special
Economic Zone under Republic Act No, 9490, as amended; the Cagayan
Special Economic Zone and Freeport under Republic Act No. 7922; the
Zamboanga City Special Economic Zone under Republic Act No. 7903;
the Freeport Area of Bataan under Republic Act No. 9728; and such other
freeports as established or may be created by law.3
1
RA No. 10668 An Act Allowing Foreign Vessels To Transport And Co-Load Foreign Cargoes For Domestic
Transshipment And For Other Purposes, Section 2 (a)
2
Customs Memorandum Order 46-1998, Section 3.1.1
3
CMTA, Title I, Chapter 2, Section 102 (w)
4
Draft CAO on Rules and Regulations on the Admission, Movement and Withdrawal of Goods in Free Zones
5
cf. Glossary of Customs and Trade Terms
3.7. Security shall refer to any form of guaranty such as surety bond, cash
bond and standby letter of credit or irrevocable letter of credit which
ensures the satisfaction of an obligation to the Bureau.7
3.10. Transit shall refer to the customs procedure under which goods, in
its original form, are transported under customs control from one
customs office to another, or to a free zone.10
6
cf. CMTA, Title IV, Chapter 1, Section 403
7
CMTA, Title I, Chapter 2, Section 102 (mm)
8
cf. The Uniform Customs and Practice, Article 2, UCP 500
9
cf. CMTA, Title IV, Chapter 3, Section 426.
10
cf. CMTA, Title I, Chapter 2, Section 102 (rr)
11
cf. CMTA, Title XV, Section 1507
The District Collector may accept only a general security from declarants
who regularly declare goods at different offices in customs territory if
satisfied that an obligation to the Bureau will be fulfilled and under such
terms and conditions as may be prescribed by regulation.14
12
cf. CMTA, Title XV, Section 1507
13
CMTA, Title XV, Chapter 2, Section 1506
14
cf. CMTA, Title XV, Chapter 2, Section 1507, 2nd paragraph
15
cf. CMTA, Title XV, Chapter 2, Section 1507, 3rd paragraph
16
cf. CMTA, Title IV, Chapter 1, Section 403 and Chapter 3, Section 426
17
CMTA, Title IV, Chapter 3, Section 425 in relation to Section 102 (qq)
5.6. Transit of Goods to Free Zone Locators. For goods intended for
transit to Free Zones, the District Collector of the port of discharge shall
require Free Zone Locators to post a General Transportation Surety Bond
(GTSB) for the immediate and faithful delivery of the goods covered by
the Goods Declaration for transit to its destination.21
5.7. Carrier's Security. Carriers that transport imported goods that shall be
placed under customs transit from a port of entry to other ports, shall
post a general transportation security amounting to at least fifty
thousand pesos (50,000.00). Such security shall ensure the complete
and immediate delivery of goods to the customs officer at the port of
destination and the payment of pertinent customs charges and expenses
and other transfer costs. The amount of the security may be adjusted
by the Commissioner, upon approval of the Secretary of Finance.22
5.8. Transit of Goods under Co-loading Act. Goods intended for transit
covered by Republic Act No. 10668, otherwise known as An Act Allowing
Foreign Vessels to Transport and Co-Load Foreign Cargoes for Domestic
Transshipment and for Other Purposes, shall not be subject to the
payment of duties and taxes at the port of entry. Provided, that any
conditions and security required by the Bureau are complied with.23
18
cf. CMTA, Title IV, Chapter 3, Section 431
19
cf. CMTA, Title IV, Chapter 4, Section 439
20
CMTA, Title VIII, Chapter 2, Section 808
21
cf. BOC-PEZA JMO No. 1-2015, 7 subsection (a)
22
cf. CMTA, Title VI, Chapter 1, Section 602
23
cf. CMTA, Title VI, Chapter 1, Section 601
The Returning Resident or OFW must, within forty-five (45) days from
his arrival but not to exceed sixty (60) days from the release of the
shipment, submit to the Bureau the TEC issued by the DOF to support
his entitlement to the privilege. Failure to do so shall cause the Bureau
24
cf. CMTA, Title VII, Chapter 1, Section 707
25
cf. CMTA, Title VII, Chapter 1, Section 707
26
cf. CMTA, Title VIII, Chapter 1, Section 800
27
cf. CAO 6-2016, Section 9
28
cf. CMTA, Title VIII, Chapter 2, Section 801
29
cf. CMO 4-99, Section 3.2.1
30
cf. CMO 4-99, Section 3.2.4
6.4. General Fund. All final payments of additional duties and taxes and
other charges shall be receipted and remitted to the General Fund of the
Bureau of the Treasury through authorized government banks following
the accounting and auditing rules and regulations on revenue
collections.32
31
CMO 4-99, Section 3.1
32
CMO 4-99, Section 3.4
33
cf. CAO 1-1999, Section 2.4
34
CAO 1-1999, Section 2.5
35
CMO 22-2003, Section 3.1
36
CMO 22-2003, Section 3.2
37
CMO 22-2003, Section3.2.1
38
CMO 22-2003, Section 3.2.2
39
CMO 22-2003, Section 3.2.3
40
CMO 22-2003, Section 3.2.4
41
CMO 22-2003, Section 4.1.3
42
CMO 22-2003, Section 3.4
43
CMO 22-2003, Section 3.5
44
CMO 22-2003, Section 3.3
8.3.1.2. After the lapse, of six (6) months from expiry date,
the penal amount of the bond shall be collected if no
re-exportation is made, and in addition thereto 2%
per month of the collectible duties and taxes shall be
collected.
45
cf. CAO 5-1991 with modification, amount of penalty adjusted in accordance with GAAP (Generally Accepted
Accounting Principle :12% per annum compounded annually)
8.4.1. The Bonds Division or equivalent office in the port shall establish
and maintain a system for the proper accounting and
monitoring of all surety bonds posted as guaranty.
Section 10. Repealing Clause. This CAO specifically amends or repeals previously
issued CAOs and CMOs which are inconsistent with the provisions therein.
Section 12. Effectivity. This CAO shall take effect after fifteen (15) days after its
publication at the Official Gazette or a newspaper of national circulation.
The Office of National Administrative Register (ONAR) of the UP Law center shall be
provided three (3) certified copies of this CAO.
46
cf. CMO 8-2007, (I) 1st paragraph
47
CAO 12-2003, Section 8
Approved:
Informational Section. As the title denotes this section only provides information
and does not give rise to any substantive or formal rights or obligations.
1. History. This is the first CAO dealing exclusively to all forms of security required
to guarantee payment of duties and taxes and other charges.
2. Related Policies.