CUSTOMS-MIDTERM REVIEW

Cards (87)

    1. ACT NO. 3893 “BONDED WAREHOUSE”
    ➢ An Act to Regulate the Business of Receiving Rice for Storage, Giving the Director of Commerce and Industry the Duty to Enforce If, Providing Penalties for Violation of the Provisions, Exempting Cooperative Marketing Associations of Rice Producers from Application Thereof, Repealing Act Numbered Thirty-Four Hundred And Sixty-Nine and for Other Purposes.   
    1. ACT NO. 3893 “BONDED WAREHOUSE”➢ The law that governs the responsibility of a person (warehouseman) engaged in the storage of rice. This law also provides the conditions and restrictions imposed upon the warehouseman as well providing penalties for the violations of the law. It also includes who may engage in the warehousing of rice other than the warehouseman.
    ➢ Took effect January 01, 1932.
  • 2. ACT NO. 2137 “THE WAREHOUSE RECEIPTS LAW”
    ➢ Enacted February 05, 1912
    ➢ This law provides for the rights, obligations, conditions, restrictions and responsibilities of the parties in a warehousing contract as well the penalties for the violation. Said law also gives the rule regarding issuance, transfer, negotiations of the receipt and delivery of the goods covered by a warehouse receipt. It provides the different contents of a warehouse receipt, lost/destroyed receipt, duplicate receipts, interpleader and types of receipts.
  • 3. Republic Act No. 10863 “Customs Modernization and Tariff Act”
    ➢ This law was enacted and came into effect in the year 2016 which amended the former Tariff and Customs Code of the Philippines. This law governs the rules and regulations regarding the creation, establishment and control of the Bureau of all Customs Bonded Warehouses. This law also provides the conditions and restrictions affecting customs facilities and warehouses such as container yards, container freight stations, seaport warehouses and airport warehouses.
  • 4. Implementing Rules and Regulations / Customs Administrative Order (CAO)
     
         CAO No. 13-2019
             “Customs Bonded Warehouses”
         CAO No. 09-2019
           “Establishment, Maintenance and   
       Operations of Customs Facilities and   
                          Warehouses”
           CAO No. 11-2019
             “Rules and Regulations on the
       Admission, Movement and Withdrawal
                   of Goods in Free Zones”
  • 5. Republic Act. No. 7916 “The Special Economic Zone act of 1995”
    ➢ Amended by Republic Act No. 8748
     
    ➢ “An Act Providing for The Legal Framework and Mechanisms for The Creation, Operation, Administration, And Coordination of Special Economic Zones in The Philippines, Creating for This Purpose, The Philippine Economic Zone Authority (PEZA), And for Other Purposes.”
  • 6. Republic Act No. 7227 “The Bases Conversion and Development Act”
    ➢ Amended by Republic Act No. 9400
     
    ➢ “An Act Accelerating the Conversion of Military Reservations into Other Productive Uses, Creating the Bases Conversion and Development Authority for This Purpose, Providing Funds Therefor and For Other Purposes.”
    1. Customs Bonded Warehouse (CBW)
    shall refer to a warehouse facility licensed by the Bureau to import, receive, and store, without payment of duties and taxes and under bond, goods, raw materials, accessories and packing materials either for manufacture into finished products for export or storage for the account of authorized end users or clients.
  • 2. Customs Facilities and Warehouses (CFW)
    • shall refer to facilities for temporary storage of goods established and authorized by the Bureau pursuant to Title VIII, Chapter 2 of the CMTA. These include container yards, container freight stations, seaport temporary storage warehouses, airport temporary storage warehouses and other premises, for customs purposes. [CAO No. 09-2019]
  • 3. Customs Premises
    Ø  shall include customs offices, facilities, warehouses, ports, airports, wharves, infrastructure and other premises over which the Bureau shall have exclusive control, direction, and management for customs purposes. [CMTA Sec. 303]
     
  • 4. Customs Territory
    Ø  shall refer to areas in the Philippines where customs and tariff laws may be enforced. [CMTA Sec. 102 (q)]
     
  • 5. Free Zone
    Ø  refers 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
  • Authority to Operate The authority given by the Bureau allowing persons, natural or juridical, to establish and operate a CBW
  • Authority to Transfer The document issued by the District Collector to a CBW allowing transfer or sale of imported raw materials, semi-finished products, or finished products to another CBW, member of a Common Bonded Warehouse, client-exporter/ client end-user of an Industry Specific Customs Bonded Warehouse (ICBW) of subcontractor, or Freeport Zone locator for subsequent export
  • Certificate of Authority to Operate The document issued by the Bureau to persons, natural or juridical, duly authorized to operate a CBW
  • Certificate of Identification (CI) The document certifying that the finished products to be exported is from a particular warehousing entry, and also to determine whether or not a particular entry is partially or fully consumed
  • Certificate of Importer Accreditation The document issued by the Bureau to an entity registered as importer and recognized to electronically lodge goods declaration in the Bureau's existing registration system
  • Certificate of Inspection and Loading (CIL)
    The document issued by the Bureau certifying the conduct of inspection over the cargo for export and its actual loading on the exporting carrier
  • Client-Exporter A natural or juridical person engaged in the manufacture of products utilizing goods, raw materials, accessories and packing materials sourced from an ICBW subject to the condition that finished products shall be exported within the period prescribed by existing laws and regulations
  • Diversion
    An act of bringing bonded articles to some place other than its intended destination without prior authority from the Bureau
  • Entry
    The act, documentation, and process of bringing imported goods into the customs territory, including goods coming from the free zones
  • Exportation
    The act, documentation, and process of bringing goods out of Philippine territory
  • Extension Warehouse
    A separate CBW facility granted by the Bureau to an already duly authorized CBW operator to optimize capacity and efficiency in its operations
  • Formula of Manufacture
    The formula of conversion issued by the duly authorized government institution to the CBW operator, determining the raw material usage and wastages of a particular finished product for export and subsequent liquidation
  • Goods
    Articles, wares, merchandise and any other items
  • Goods Declaration
    A statement made in the manner prescribed by the Bureau and other appropriate agencies, by which the persons concerned indicate the procedure to be observed in the application for the entry or admission of imported goods and the particulars of which the customs administration shall require
  • Importation
    The act of bringing in of goods from a foreign territory into Philippine territory, whether for consumption, warehousing, or admission
  • Liquidation of Raw Materials
    The process of accounting the usage of bonded raw materials, including wastages, in the manufacture of finished products for export as against the importation by CBWs of raw materials using the formula of manufacture
  • Lodgement
    The registration of a goods declaration with the Bureau
  • Member
    An entity accredited to operate under an existing Customs Common Bonded Warehouse (CCBW) facility established for the manufacture of products using imported duty and tax-free raw materials or components subject to the condition that finished products shall be exported within the period prescribed by existing laws and regulations. Members may either be accredited by the Bureau alone or jointly with the Garments and Textiles Industry Development Office (GTIDO) in case of entities engaged in the manufacture of garments
  • Perishable Goods
    Goods liable to perish or goods that depreciate greatly in value while stored or which cannot be kept without great disproportionate expense
  • Physical Security Feature
    A system to secure and monitor premises, storage and production areas of CBWs including the safety of person
  • Security
    Any form of guaranty, such as a surety bond, cash bond, standby letter of credit or irrevocable letter of credit, which ensures the satisfaction of an obligation to the Bureau
  • Sub-contractor
    A person or company licensed by the Bureau, and GTIDO in case of garments, to undertake or perform, for a definite period, certain manufacturing operations or activities incidental to the manufacture of bonded raw materials into finished products in behalf of a licensed CBW in cases where the latter's facilities are insufficient to address its immediate requirements or due to lack of material time to meet export commitments
  • Unauthorized Withdrawal or Repacking
    The act of fraudulent concealment, removal, or repacking merchandise in any CBW; or fraudulent alteration, defacement, or obliteration of any markings or numbers placed upon packages deposited in such warehouse, or aiding or abetting any such acts
  • “Sec. 801. Establishment and Supervision of Customs Bonded Warehouses.
     
    When the business of the port requires such facilities, the District Collector, subject to the approval of the Commissioner, shall designate and establish warehouses for use as public and private bonded warehouses, yards, or for other special purposes.
  • “Sec. 801. Establishment and Supervision of Customs Bonded Warehouses.
      
    All such warehouses and premises shall be subject to the supervision of the District Collector who shall impose such conditions as may be deemed necessary for the protection of the revenue, and of the goods stored therein.
  • “Sec. 801. Establishment and Supervision of Customs Bonded Warehouses.
    In the exercise of the District Collector's supervisory functions herein and in the Bureau's implementation of this chapter, existing contracts of private operators with appropriate government agency or regulator, such as, but not limited to, the Philippine Ports Authority (PPA), Subic Bay Metropolitan Authority (SBMA) and Phividec Industrial Authority (PIA) and their respective authorities and powers already granted by law pertinent to such contracts, shall not be impaired or adversely affected.
  • Goods manufactured in whole or in part of imported materials, and intended for exportation, may be made and manufactured in a bonded manufacturing warehouse
    1. Manufacturer shall file sufficient security for the faithful observance of all laws
    2. Application for the establishment of bonded warehouses must be made in writing and filed with the customs officer
    3. From the receipt of the application, the customs officer shall examine the premises
    4. The customs officer may authorize the establishment of the customs bonded warehouse
    5. The operator of the bonded warehouse shall pay an annual supervision fee in an amount to be fixed by the Commissioner
    1. Establishment of Customs Warehouses (CAO No. 13-2019)
    When the business of the port and trade requires such facilities, the District Collector, subject to the approval of the Commissioner, shall designate and establish customs warehouses for the storage of imported goods or for other special purposes.