Customs Law

• Importation refers to bringing goods from outside the Philippines into the country.
• The Bureau of Customs is responsible for collecting customs duties, preventing the entry of prohibited or restricted items into the country, and ensuring compliance with trade agreements.
• Customs duties are taxes imposed on imported goods.
• Exportation involves sending goods out of the Philippines to other countries.
• Customs duties are taxes imposed on imported or exported goods, including import tariffs (ad valorem) and specific duties (per unit).
• The Bureau of Customs is responsible for collecting customs duties and regulating imports and exports.
• Customs duties are taxes imposed on imported goods by the government.
• Ad valorem duty is calculated as a percentage of the CIF value of the importation.
• There are two types of customs duties: ad valorem duty (based on value) and specific duty (fixed amount per unit).
• Prohibited articles include drugs, firearms, explosives, and other dangerous substances.
• Trade agreements such as ASEAN Free Trade Area (AFTA) aim to reduce tariffs and promote free trade among member countries.
• Excise tax is an indirect tax levied by the government on specific products such as tobacco, alcoholic beverages, petroleum products, and automobiles.
• Value-added tax (VAT) is a consumption tax that applies to most transactions involving goods and services within the Philippines.
• Duty-free shops allow travelers to purchase certain products without paying customs duties.
• Excise tax is an indirect tax levied on locally manufactured goods based on their value added during production.
• Taxation - The process of raising money for the government by imposing a tax on the public.
• Taxation - one of the inherent powers of the State, the other two being Police power and eminent domain
• Taxation - government levies or imposes financial obligations on residents or businesses.
• Taxation - takes the personal and property rights of the residents for the support of the government.
• Two purposes of Taxation:

  Primary/Revenue Purpose

  Secondary/Non-Revenue Purpose
• Primary/Revenue Purpose - raises funds and property.
• Primary/Revenue purpose - general welfare and protection of the people
• Secondary/Non-Revenue Purpose - economic growth
• Secondary/Non-Revenue purpose - the imposition of tariffs on imported goods to protect local industries
• Specific duties


  Taxes imposed on imported or exported goods, calculated on a per-unit basis. The amount of duty is fixed for each unit of the good, regardless of its value.
• Excise taxes


  Taxes imposed on the production, sale, or consumption of specific goods or services within a country. Unlike specific duties, excise taxes are not typically imposed on imported or exported goods.
• Requirements to practice the customs broker profession in the Philippines

  • Holder of a valid Certificate of Registration
  • Satisfactorily passed the licensure examination
  • Holder of a valid Professional Identification Card
• Raising money


  The process of generating revenue for the government through taxes. It involves making decisions about what taxes to impose, how much to charge, and who to tax.
• Collecting money


  The actual process of gathering the taxes that have been imposed on taxpayers. It involves implementing the tax system and ensuring that taxpayers pay the taxes they owe.
• Mandatory for customs brokers

  Becoming a member of the accredited professional organization for customs progress in government service
• If there is a conflict between the provisions of the code of ethics for professional customs brokers and republic act number 3019 for the anti-graft and corrupt practices

  The former shall prevail
• Due diligence and investigate the authenticity and accuracy of the information reflected in the documents provided by the client


  Required for a customs broker
• Contract for professional services between a customs broker and the client

  Should always be in written or electronic form
• Taxation


  The process of raising money for the government by imposing a tax on the public.
• Raising Money


  The purpose of taxation, used to fund government activities.
• Collecting Money


  Gathering or pooling already available funds, often in a single location.
• Code of Ethics


  A set of standards and principles that professional customs brokers must follow to ensure fair and honest business practices.
• Republic Act Number 3019


  A Philippine law regarding anti-graft and corrupt practices.
• Customs broker profession


  A person whose duty, not being clerical or manual in nature, involves the exercise of discretion in performing the function of the Bureau of Customs
• Requirements to practice customs broker profession in the Philippines

  • Holder of a valid Certificate of Registration
  • Satisfactorily passed the licensure examination
  • Holder of a valid Professional Identification Card