Simlplified Cao 2 2021
Simlplified Cao 2 2021
Simlplified Cao 2 2021
02-2021
Section 1 - Scope:
This CAO applies to all imports cleared through the Informal Entry Process, excluding accompanied baggage, D
e Minimis imports, and relief consignments, which have their specific regulations.
Section 2 - Objectives:
2.1. Identify and separate personal and household effects and qualified non-commercial goods from c
ommercial imports.
2.2. Expedite clearance under the Informal Entry Process while ensuring revenue collection and preve
nting smuggling.
2.3. Establish a uniform procedure for clearance in line with international standards and utilize Inform
ation and Communications Technology (ICT).
Section 3 - Definitions:
3.1. Air Waybill (AWB) - document for airfreight specifying the holder's right to claim goods.
3.2. Bill of Lading (BL) - document for water-borne freight specifying the right to claim goods.
3.6. Conditionally Tax and/or Duty-Exempt Importation - goods exempt upon fulfilling specific requir
ements.
3.13. Household Effects - personal use items like furniture, dishes, etc.
3.14. House Airway Bill (HAWB) - airway bill for individual shipments.
3.15. House Bill of Lading (HBL) - bill of lading for individual sea shipments.
3.16. Informal Entry Process - clearance for low-value goods and personal items.
3.19. Off-dock Customs Facilities and Warehouses (CFW) - customs facilities outside ports.
3.25. Tax Exemption Indorsement (TEI) - endorsement from DOF-RO granting tax exemption.
4.1. The following types of shipments will go through the Informal Entry Process:
4.1.3. Conditionally Tax and/or Duty-Exempt Imports (per Section 800 of CMTA):
b. Duty-free Balikbayan Boxes sent to Filipinos Abroad (as outlined in CAO no. 1-2018).
d. Personal and household items for foreign consultants, experts, and their families.
f. Imports for foreign embassy members and officials (as per DFA, DOF, and Bureau condition
s).
g. Coffins or urns with human remains and used personal items of the deceased, valued unde
r P150,000 (except vehicles).
h. Personal and household items for DFA, consular, and military personnel returning from dut
y abroad.
4.1.4. Imports falling under other Section 800 sub-paragraphs of CMTA are eligible for the Informal En
try Process if their value is under P50,000 (as determined by the Bureau).
4.1.5. Clearance of previously imported diplomatic supplies and tax-exempt items sold to non-privileg
ed buyers will be manually processed by the Informal Entry Division.
4.2. All motor vehicles, motorcycles, and scooters, regardless of the recipient, including those under Section 80
0 of CMTA, will undergo the Formal Entry Process.
Goods declaration must be signed, notarized, and submitted to IED. Include these supporting documents:
1. BL/HBL or AWB/HAWB.
2. Commercial invoice or other proof of value.
3. Packing list or a similar itemized document.
4. Gate Pass BC Form No. 201 (for airport, if filing manually).
5. Any other documents needed as per rules and regulations, like import permits or certificates.
PGD allows for trade facilitation and prevents goods from being abandoned.
A specific code identifies a provisional goods declaration upon lodgement.
If the declarant doesn't indicate its provisional nature, it's considered complete.
PGD is allowed in these situations:
When required permits, clearances, or licenses aren't available at lodgement, but the application has
been filed before the goods leave the origin country or arrive in the Philippines.
When the Tax Exemption Indorsement (TEI) hasn't been issued but an application has been filed.
In any other situation where the declarant lacks certain information or documents, as long as it's not
due to the declarant's negligence.
5.5. Abandonment:
Provisions on abandonment under Chapter 6, Title XI of the CMTA also apply to goods cleared through the Info
rmal Entry Process.
Goods examination, if required by the Bureau, happens right after lodging the goods declaration. Reasons for P
hysical Examination of Goods:
Bureau uses profiling techniques and selectivity parameters for risk management in import determinations.
Pay customs duties, taxes, and charges through an Authorized Agent Bank (AAB), in-house bank, or the Collecti
on Division of the port.
Follow specific payment procedures depending on the shipment type (sea or air).
Once payment is confirmed, the Bureau electronically instructs the terminal facility operator/Off-dock CFW to
release the goods.
In cases without full automation, the Customs Operations Officer V (COO V) verifies payment and marks "Paym
ent Verified" on the BCOR.
COO V forwards the verified BCOR copies to the Chief Informal Entry Division.
Chief Informal Entry Division performs manual write-off for the shipment using specific data.
Manual discharge triggers the electronic release instruction to the terminal facility operator/Off-dock CFW.
The Bureau collects Import Processing fees, Container Security fees, and Documentary Stamp Tax for Informal
Entry goods declaration as per rates set in a separate CAO on Customs Service Fees, Dues, and Charges.
The Commissioner may propose changing the value threshold for Informal Entry goods, subject to the Finance
Secretary's approval.
The Bureau plans to develop or outsource an ICT-enabled customs cargo clearance system for Informal Entry, f
ollowing international standards.
This system aims to facilitate trade by efficiently processing information in a technology-neutral and secure infr
astructure.
Anyone using false or fraudulent statements to process imported goods faces penalties under the CMTA and o
ther relevant laws.
Rules and regulations conflicting with this Order are repealed or modified.
If any part of this CAO is declared unconstitutional or contrary to laws, the remaining parts still apply.
Section 12 - Review:
This CAO will be reviewed every three years and amended if necessary.