CUSTOMS-MIDTERM REVIEW

• Sec. 804 - Application for Operation of a Customs Warehouse


  Ø  Application for the establishment of CBW and CFW shall be filed with the District Collector where the CBW or CFW is located, describing the premises, location, capacity and purpose thereof.
• Sec. 804 - Application for Operation of a Customs Warehouse


  Ø  Upon receipt of such application, the District Collector shall examine the premises of such proposed warehouse, particularly its location, construction and storage facilities. The District Collector, with the approval of the Commissioner, may authorize the establishment of customs warehouses, and accept the required security for its operation and maintenance. The operator of such CBW and CFW shall pay an annual supervision fee, as determined by the Commissioner.”
• Establishment or Renewal of Authority to Operate Customs Bonded Warehouses (CAO No. 13-2019)


  Ø  The application to operate a CBW, including applications for accreditation as member, subcontractor or client-exporter of an existing warehouse, shall be filed with the District Collector where the CBW is located, describing the premises, location, capacity, and purpose of such establishment.
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  Ø  In case of CBMW with sub-contractors, CCBW, and ICBW, the joint application for renewal shall be supported with all of the above requirements complied by all CBMW, CCBW, ICBW and each sub-contractor, member and client-exporter, respectively.
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  Ø  Late Filing of Application for Renewal of Authority to Operate. Non-filing within the prescribed period shall cause the imposition of penalties, which may take the form of fines, suspension, or revocation of the Authority to Operate, as may be warranted.
• a)       Warehouse layout showing and describing the following:

              i.            I. Floor plan and building structure;

             ii.            Storage areas for raw materials, finished products and wastages;

           iii.            Production area;

           iv.            Office spaces for both CBW and customs personnel; and

             v.            Physical security feature
• Evaluation of the Application.

  The District Collector of the Port shall:

  a)       Determine the completeness of the documents submitted in support of the application; 

  b)      Cause the conduct of physical inspection and taking of photographs of the premises;

  c)       Evaluate and review the documents including the physical inspection report; and,

  d)      Recommend to the Commissioner the approval of the application upon compliance with all the requirements.
• Ø  The District Collector may deny the application at any stage of the evaluation process in cases where the application is attended with fraud or material misrepresentation, or the applicant does not meet the regulatory requirements to operate a CBW.
• The District Collector shall recommend approval of the application within five (5) working days from completion of documents and inspection report;
• Provided, however, that in case of failure to act within the said period, the application for establishment or renewal is deemed favorably acted upon by the District Collector, who shall forward the records to the Commissioner for appropriate action.
• Denial of the Application by the District Collector. In case of denial, the District Collector shall send a notice to the applicant stating clearly the grounds for the denial of the application.
• The Commissioner shall act on the recommendation of the District Collector within twenty (20) working days from receipt of the recommendation.
• Automatic Approval Mechanism. If the Commissioner fails to act on the application within the prescribed period, said application shall be deemed approved: Provided, that all required documents have been submitted and all required fees and charges have been paid.
• In case the Commissioner fails to act on the application for renewal within the prescribed period, the Authority to Operate shall be deemed automatically extended until the regular Authority to Operate is issued. The effectivity of any Authority to Operate shall retroact to the first day immediately after the expiration of the previous authority.
• Notice of Denial. In case of denial of application by the Commissioner, a notice shall be sent to the applicant stating clearly the grounds for the denial.
• Ø  The applicant may appeal the denial of the application to establish or renew a CBW by filing an appeal to the District Collector within fifteen (15) days from receipt of the notice of denial, copy furnished the Office of the Commissioner, stating clearly the grounds why the application should be approved.
• Ø  Records of Appeal. The District Collector shall forward the complete records of the application to the Commissioner within five (5) days from receipt of the appeal.
• Customs Bonded Warehouse Committee


  Ø  The Commissioner of Customs shall constitute a CBW Committee for purposes of evaluating, reviewing, and consolidating all applications for the establishment and renewal of CBW and other related matters pertaining to the operations of CBW.
• Certificate of Authority to Operate


  Ø  Upon approval of the CBW application, the District Collector shall issue a Certificate of Authority to Operate a CBW, which shall be conspicuously displayed at all times at the CBW and its extension offices.
• Amendment of Certificate of Authority

  Ø  Upon the request of the CBW operator, the District Collector may amend the Certificate of Authority based on any of the following grounds:

   

  a)       Change of company name;

   

  b)       Change of the name of the street or building

   

  c) Such other changes which do not substantially alter the conditions
• The Authority to Operate a CBW, including warehouse extensions and additional facilities issued pursuant to CAO No. 13-2019, shall be valid for three (3) years counted from the date of the approval of the application for establishment, as stated in the Certificate of Authority to Operate.
• Ø  If the term of the lease of contract submitted during the application is less than three (3) years, the validity of the Authority to Operate shall be coterminous with the lease contract unless a new contract of lease with a longer period is submitted. In such case, the Authority to Operate shall be amended to its maximum period of three (3) years counted from its date of original issuance.
• Ø  The application for renewal of Authority to Operate a CBW shall be filed not later than ninety (90) days but not earlier than one hundred twenty (120) days before its expiration. For CCBWs or ICBWs with more than ten (10) members or client-exporter respectively, application for renewal shall be filed not later than one hundred twenty (120) days before its expiration.
• Ø  Membership in a CCBW shall be governed by the following rules and regulations:

   

  a)       A company which is considered as micro or small enterprise shall have the option to establish its own CMBW or apply as a member of a CCBW; and

   

  b) Medium and Large-Scale enterprises can be accredited as members in meritorious cases
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  Ø  The CCBW Operator and its applicant member, the CBMW Operator and its applicant sub-contractor or the ICBW Operator and its applicant client-exporter of CBMW's, as the case may be, shall jointly file the application for accreditation and renewal with the District Collector who has supervision and control over the applicant CBW.
• Structural Changes or Additional Facilities


  Ø  The CBW Operator may introduce structural changes or additional facilities in the CBWs provided that the ingress and egress or the physical security feature of the CBW shall not be altered or compromised.
• Structural Changes or Additional Facilities


  Ø  The CBW Operator shall file the application with the District Collector prior to the introduction of any structural changes or additional facilities.
• Extension Warehouse.


  Ø  The CBW Operator may apply for an extension warehouse which should be located within the territorial jurisdiction of the District Collector who has control over the main warehouse.
• Extension Warehouse.


  Ø  In case the proposed extension warehouse or facility is located in a place outside the territorial jurisdiction of the District Collector where the main warehouse or facility is situated, such shall be treated as a new application and shall be filed with the District Collector who has territorial jurisdiction over the area where the new warehouse is located.
• Relocation.


  Ø  As a general rule, any application for relocation of a CBW shall be approved by the Commissioner as recommended by the District Collector.
• Relocation.

   

  Ø  In cases where the CBW is relocated to another structure or warehouse within the same compound or building, the application shall be approved by the District Collector.
• Relocation.


  Ø  In case the warehouse or facility is relocated in a place outside the territorial jurisdiction of the District Collector, such shall be treated as a new application and shall be filed with the District Collector who has territorial jurisdiction over the area where the new warehouse is located.
• Relocation.


  Ø  Any unauthorized relocation shall be a ground for the suspension or revocation of the Authority to Operate issued to the CBW, its members, or sub-contractors, as the case may be.
• Physical Inspection by the Bureau


  Ø  In all cases of application for structural changes or additional facilities, extension warehouse or relocation of CBW, physical inspection of the premises must first be conducted prior to approval.
• Annual Supervision Fee and Other Charges


  Ø  The Bureau shall impose an annual supervision fee, service fee, and other charges on the operations of CBWs, including extensions and additional facilities, if any, in accordance with the schedule provided under the CAO on Service Fees.
• Sec. 805. Responsibility of Operators


  Ø  The operator of a CBW or CFW shall comply with the customs requirements on establishment, security, suitability and management, including stock- keeping and accounting- of the goods, of the CBW or CFW.
• Sec. 805. Responsibility of Operators

  Ø  Upon lawful demand, the operator of a CBW or CFW shall allow authorized representatives of the Bureau access to the premises at a reasonable time, and to all documents, books and records of accounts pertaining to the operations of the CBW or CFW.
• Sec. 805. Responsibility of Operators


  Ø  In case of loss of the goods stored in a CBW or CFW due to operator's gross negligence or willful misconduct, the operator shall be liable for the payment of duties and taxes due thereof. The government assumes no legal responsibility over the safekeeping of goods stored in any customs warehouse, yard or premises.”
• 1. Responsibilities of CBW Operators (CAO No. 13-2019)


  Ø  Operators of CBWs shall comply with the requirements of the Bureau on establishment, security, suitability and management, including stock-keeping and accounting of the goods introduced.
• Responsibilities of CBW Operators (CAO No. 13-2019)


  Ø  Upon lawful demand, the operators shall allow duly authorized representatives of the Bureau