TM 5 finals

• Penalties

  • Fines
  • Surcharges
  • Forfeiture (highest Penalty)
  • Imprisonment (criminal liability)
• Penalties Computation

  1. TADG

  2. PENALTY

  3. TAD or Total Amount Due
• POD

  Percentage of Discrepancy
• ASF

  As Found or As Appraised
• ASD

  As Declared or Entered
• Imposition of Surcharge


  1. POD

  2. Amount of SC
• POD Formula: POD= ASF – ASD = Difference x 100 / ASF
• Section 1400. Misdeclaration, Misclassification, Undervaluation in Goods Declaration


  • Misdeclaration- Quality, Quantity and Measurement
  • Misclassification- Tariff heading, ROD, clerical error
  • Undervaluation – lower value
• Days

  • 16 days to 365 days
  • 366 days or more (1 year)
• Percentage

  • 10%
  • 25%
• Exempted kapag 15 days lang
• Section 1402. Failure or Refusal of Party to give Evidence or Submit Documents for Assessment


  DV Peso X 20%
• Section 1404. Failure to Declare Baggage


  LC X 30%
• Section 1422. Unauthorized Withdrawal of Imported Goods from Bonded Warehouse


  • 1 year - 50%
  • 2 years - 25%
  • 3 years - 25%
  • 4 years
  • 5 years
• Percentage

  • 50%
  • 25%
  • 25%
  • 25%
  • 25%
• Basis: TADG
• Note: 50% kapag first year
• Section 1425. Failure to Pay Duties, Taxes and other charges


  1. 16 days to 365 days

  2. 366 days or more (1 year)
• Note: 15 days below NO SURCHARGE