MODULE

3:
OPERATIONAL
PROVISIONS ON
INFORMAL ENTRY
Presented By: AND FORMAL
Mercado, Kristine Kyla
D. Mozo, Angelica Mae ENTRY
T. Palima, Jan Cyrel P.
Peñalosa, Jennalene A. CUSTOMS
Rimorin, Darlyn Joy 5
LEARNING
OBJECTIVES:
1. Understand the difference between formal
and Informal Entry.
2.Know the Documentary requirements on Formal
and Informal Entry.
3.Learn the process of filing/lodgement of
Goods Declaration and Provisional Goods

TOPIC OUTLINE:
1. Shipments cleared through Informal Entry
and Formal Entry.
2.Documentary requirements on Informal
Entry and Formal Entry.
3.Process of Filing or lodgment of Goods
Declaration and Provisional Goods Declaration.
 FORMAL ENTRY
- shall refer to the cargo clearance process for imported
PROCESS
shipments considered to be of commercial nature which
are those in excess of FOB or FCA value limitation for
informal entry and those for which the informal entry
process may not be used, subject to the exceptions
FORMAL provided under the CMTA.

AND
INFORMAL INFORMAL ENTRY PROCESS
ENTRY -shall refer to the clearance process for imported
goods with FOB or FCA value of less than Fifty
PROCESSES Thousand Pesos (P50,000.00) and personal and
household effects or goods, not in commercial
CAO NO. 09-
CAO NO. 02- quantity, not for
hire or barter andsale,
otherlease,
shipments covered
2020
2021 & under Section 4 of this CAO.

4.
CUSTOMS SHIPMENTS
ADMINISTRATIVE CLEARED THROUGH
ORDER (CAO)
NO. 02-2021 INFORMAL ENTRY
PROCESS
4.
SEC. SHIPMENTS CLEARED
THROUGH INFORMAL ENTRY
4.1 PROCESS

Goods of Commercial Nature with FOB or

FCA value of less than Fifty Thousand
Pesos (P50,000.00).
4.1.
Personal and household effects or goods, not 1
in commercial quantity, whether or not
subject to duties and/or taxes.

4.1.
Conditionally Tax and/or Duty-Exempt
Importations under Section 800 of the
CMTA
2
SEC. SHIPMENTS CLEARED
THROUGH INFORMAL ENTRY
4.1 PROCESS

Conditionally Tax and/or Duty-Exempt Importations under Section 800 of the

CMTA

Importation of Returning Residents and OFWs

Balikbayan Boxes
Shipments accompanying travelers, that are arriving before
or after the arrival of the traveler in the Philippines.
Shipments containing Personal and household effects
belonging to foreign consultants and experts for their own
use. Shipments containing personal and household effects of
any officer or employee of the DFA or employee of other
departments assigned to any Philippine consular office abroad
SEC. SHIPMENTS CLEARED
THROUGH INFORMAL ENTRY
4.1 PROCESS

Conditionally Tax and/or Duty-Exempt Importations under Section 800 of the

CMTA

Shipments containing professional instruments and implements, tools

of trade, occupation or employment, wearing apparel, domestic
animals, and personal and household effects belonging to persons
coming to settle in the Philippines or Filipinos or their families and
descendants who are now residents or citizens of other countries,
such parties hereinafter referred to as overseas Filipinos subject to
conditions as may be required by the DOF and the Bureau.
Shipments containing Importations for the personal or family use of
members and attachés of representatives of foreign governments
and for official use.
Coffins or urns containing human remains, bones or ashes,
used personal and household effects of a decesed person.
SEC. 4.1 SHIPMENTS CLEARED THROUGH
INFORMAL ENTRY PROCESS

Those falling under the remaining sub-paragraphs of

4.1.
Section 800 of CMTA, Conditionally Tax and/or Duty-
Exempt Importations shall fall under Informal Entry
Process provided that its FOB or FCA value as determined
by the Bureau is less than fifty thousand pesos

4
(P50,000.00).

Clearance of previously imported

diplomatic supplies and equipment of
foreign embassies and tax-exempt
institutions sold to a non- privileged buyer
shall be manually processed under the
Informal Entry Division.
 SHIPMENTS
CLEARED THROUGH
FORMAL ENTRY
CAO NO. 02-2021 PROCESS
& CAO NO. 09-
2020
SHIPMENTS CLEARED
THROUGH FORMAL ENTRY
PROCESS

Goods of Commercial Nature

with FOB or FCA value of
more than Fifty Thousand
Pesos (P50,000.00).
SHIPMENTS CLEARED
THROUGH FORMAL ENTRY
PROCESS

Importation of motor vehicles,

motorcycles and motor scooters
regardless of the consignees,
including those under Section 800
of the CMTA, shall be under the
Formal Entry Process.
 DOCUMENTARY
REQUIREMENTS
CUSTOMS
ADMINISTRATIVE
ORDER (CAO)
INFORMAL
ON
ENTRY
NO. 02-2021
SEC.
5.2

The goods declaration shall be signed by the declarant and/or the customs broker,
duly notarized and submitted to the IED or equivalent office or unit through the
Customer Care Center (CCC), with the following supporting documents:

BL/HBL or AWB/HAWB

Commercial invoice or any other verifiable commercial document evidencing value

Packing list or any other similar document that contains the itemized
specific information of the importation;

Gate Pass BC Form No. 201 for airport, in case of manual filing; and
SEC.
5.2

The goods declaration shall be signed by the declarant and/or the customs broker,
duly notarized and submitted to the IED or equivalent office or unit through the
Customer Care Center (CCC), with the following supporting documents:

a.Import authority, permit, clearance or license for imported goods

listed in the official list of regulatedgoods as posted in the BOC
website. For this purpose, the Bureau shall periodically update the
official list of regulated goods;

b.Sanitary and Phytosanitary (SPS) certificate, ifapplicable;

c. Authority to Release Imported Goods (ATRIG), ifapplicable; and

d.Tax Exemption Indorsement (TEI).

 DOCUMENTARY
REQUIREMENTS
ON FORMAL
CUSTOMS
ADMINISTRATIVE
ORDER (CAO)
NO. 09-2020

ENTRY
SEC.
5.2
Unless and until the Bureau is operating in a paperless environment, the printout of the
SAD signed by the declarant and the customs broker, if any, and duly notarized, must be
submitted to the Formal Entry Division (FED) or its equivalent office or unit, together with
the following documents which shall form an integral part of the Goods Declaration:

Duly accomplished SDV form.

Duly endorsed BL or AWB, or in the absence thereof, a written order (Delivery

Order, Telex Release or Release Order) by the carrier or agent of the vessel or
aircraft;

Commercial invoice, letter of credit or any other verifiable commercial

document evidencing payment; in cases where there is no sale for export, by
any commercial document indicating the commercial value of the goods

Packing list, or the commercial invoice, provided, it contains the itemized

specific information
SEC.
5.2

Documents as may be required by rules and regulations, such as:

a.Import authority, permit, clearance or license for imported goods listed in the official
list of regulated goods as posted in the BOC website. For this purpose, the Bureau shall
periodically update the official list of regulated goods;
b.Sanitary and Phytosanitary Import Clearance (SPSIC);
C. Authority to Release Imported Goods (ATRIG);
d. Certificate of Origin (for various Free Trade Agreements and Economic Partnership
Agreements) or other Proof of Origin such as Invoice Declaration by Certified Exporter
when the Self Certification System is availed of by contracting countries and Origin
Declaration by Approved Exporter for PH- EFTA FTA;
E. Advance Ruling, if the ruling was applied in the lodgement of the goods declaration;
F. LPS or DPS report for bulk or break bulk importations;
g. TEI, if applicable; and
h. Other documents as may be required by the Bureau or existing regulations.
 Filing or Lodgment of
GoodS Declaration
and ProviSional GoodS
Declaration.
CAO NO. 02-2021
& CAO NO. 09-
2020
 GOODS DECLARATION
shall refer to a statement made in a manner
prescribed by customs laws, rules and regulations for
the entry or admission of imported goods.

Goods Declaration PROVISIONAL GOODS DECLARATION

and Provisional shall refer to a goods declaration made in a
Goods manner prescribed by customs laws, rules and
regulations for the entry or admission of imported
Declaration goods pending submission of information or
supporting documents, clearances or permits
CAO NO. 09-
02-2021 required by the Bureau or other regulatory
2020
& agencies.
LODGEMENT OF GOODS
DECLARATION

Goods declaration shall be lodged with the Bureau's

E2M system and shall be filed at the Informal Entry
Division (IED) or equivalent unit of the port concerned.
The declarant shall accomplish, submit and register the
goods declaration
online following a prescribed format. Pending
implementation of the Informal Entry System, the declarant
shall file the goods declaration using the Informal Import
Declaration and Entry (IIDE) BC Form No. 177.
Period to Lodge Goods Declaration.
Goods declaration must be lodged within fifteen (15) calendar days from the
date of discharge of the last package from the vessel or aircraft. The
period for the lodgement of the goods declaration may be adjusted by the
Commissioner.
Extension of lodgement of goods
declaration: written request
may be extended another fifteen (15) calendar days, subject to the approval of the Collector of
Customs, as may be authorized by the Commissioner.
Provided, that the request is made before the expiration of the original period within which to lodge the
goods declaration and is based on the following grounds:

Fraud committed against the owner, importer or consignee;

Accident;
Mistake
Excusable negligence Force
Majeure
Technical issues as certified by the Management Information System
Technology Group (MISTG); and
Other analogous circumstances
Provisional Goods Declaration.
Provisional Goods Declaration (PGD) may be allowed
in order to facilitate trade andto prevent goods
from being declared abandoned.

The filing of Provisional Goods Declaration shall be allowed under the following
circumstances:

a.When no regulatory permit, clearance or license has been presented at the time
of lodgement, providedthat the importer has filed his application for such permit,
clearance or license, prior to the departure of the goods from the country of origin
or the arrival of the goods into the Philippines, depending on thepolicy of the
concerned regulatory agency;
b. When the TEI has not been issued, provided an application has already been
filed at the time of lodgement; or
c.Any other situation where the declarant lacks certain information or document to
make a complete goods declaration provided it is not due to the declarant's
Lodgement of Provisional Goods Declaration may be allowed provided the
following documents arepresented:

a.Pro forma invoice;

b.Duly endorsed BL or AWB, or in the absence thereof,a written order by the carrier or
agent of the vessel or aircraft;
c. Advanced copies of Certificate of Origin, if applicable;and
d.Duly notarized undertaking by the declarant that the other supporting documents
required shall be submitted within forty-five (45) calendar days from lodgement of
Provisional Goods Declaration. The 45- day period may be extended for another 45 days
for valid reasons upon approval of the written request by the Collector of Customs,
provided that the said request for extension is made prior to the lapse of the original 45-
day period.
EFFECTS OF GOODS DECLARATION:

i.If the Collector of Customs accepts a provisional goods declaration, the duty
and tax treatment of the goods shall not be different from that of goods with
complete declaration;

ii.Tentative assessment of duties, taxes and other charges on goods covered by a

provisional goods declaration shall be completed upon final readjustment and
submission by the declarant of the additional information or documentation required
to complete the goods declaration within forty-five (45) calendar days from the
lodgement of the provisional goods declaration, subject to extension period of
another forty-five (45) calendar days for valid reasons.
SEC. 5 OPERATIONAL
PROVISION

The conditional release of goods under provisional goods declaration shall be governed by the
following rules:
a.In case of regulated shipments, the conditional release of goods shall not be permitted
unless
the regulatory agency concerned allows such release, subject to the following conditions:
i.Goods shall be delivered to the importer's premises for storage and shall not be disposed
until the required permit, clearance or license is issued and submitted to the Bureau
within the prescribed period.
ii.A specific and sufficient security shall be required to cover the duties, taxes and other
charges of the goods, except in case of importers enrolled in any of the trade
facilitation programs of the Bureau where a general security or an undertaking may be
required in lieu of a security.
b.In all other cases, the conditional release of goods provisionally declared shall be subject to
the
following rules:
i. A specific and sufficient security shall be required to cover the amount of
duties, taxes and other charges that shall be collected when the lacking information or
document is not submitted within the prescribed period.
ii.In case of highly compliant importers such as those enrolled in any of the trade
facilitation
SEC. 5 OPERATIONAL
PROVISION

Effects of the non-compliance with the conditions for the release of goods
under provisional goods declaration.

a. In case the declarant fails to submit the required permit, clearance or license
from the regulatory agency within the prescribed period, the regulated goods shall
be subject to seizure, provided due notice is given to the declarant.

b. In case of release under the provisional goods declaration due to the lack of
import documents to assess the correct duties, taxes and other charges, any
security posted or undertaking submitted shall be subject to forfeiture for failure of
the declarant to submit the required supporting documents or information within
the prescribed period; Provided that due notice is given to the declarant, and
without prejudice to any other legal remedy to recover duties, taxes and other
charges that may be due on the importation.
Electronic
Lodgement.
No entry of imported goods shall be allowed
unless the goods declaration has been lodged
with the Bureau. All goods declaration shall be
lodged through the BOC portal which allows the
declarant to accomplish, submit and register
goods declaration online at anytime, anywhere
following a prescribed format.
Who may be a
Declarant?
A declarant is any person who makes a goods declaration or in whose
name a goods declaration is made, and may be:

The importer, being the holder of the BL or AWB;

A customs broker acting under the authority of
the importer or from a holder of the bill; or
A person duly empowered to act as agent or
attorney-in- fact for each holder of the bill
consistent with international standards and customs
best practices.
In case the importer is a juridical person, a responsible
officer who must be an official of the business, shall be
authorized to sign the goods declaration as declarant on
its behalf.

For corporations, the responsible officer must be authorized

by the Board of Directors to sign as the declarant on its
behalf, as shown by the corporate secretary's certificate.
For partnerships, the responsible officer must be
authorized by the partners, as shown by the certification
of the managing partner.
For sole proprietorships, the declarant may be the owner
or a
responsible officer of the business authorized under
oath by the owner.
Rights and Responsibilities of the Declarant.

The declarant shall be responsible for the accuracy of the

goods declaration and for the payment of all duties, taxes
and other charges due on the imported goods.

The Customs Broker shall likewise be responsible for the accuracy

of the goods declaration but shall not be responsible for the
payment of duties, taxes and other charges due on the imported
goods.

The declarant shall sign the goods declaration, even when

assisted by a Customs Broker, who shall likewise sign the
goods declaration.
THANK YOU
REFERENCES:

CAO 02, 2021

CAO 09, 2020
MODULE 3: OPERATIONAL PROVISIONS
ON INFORMAL ENTRY AND FORMAL
ENTRY