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    CAO-4-2004 - Basis of Dutiable Value

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    Customs Administrative Order 4-2004, amendment to CAO 5-2001, implementing RA 9135 on the basis of dutiable value.

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    CAO-4-2004 - Basis of Dutiable Value

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    zamboy0113
    755 views22 pages
    Customs Administrative Order 4-2004, amendment to CAO 5-2001, implementing RA 9135 on the basis of dutiable value.

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    Customs Administrative Order 4-2004, amendment to CAO 5-2001, implementing RA 9135 on the basis of dutiable value.

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    Download as pdf
    755 views22 pages

    CAO-4-2004 - Basis of Dutiable Value

    Uploaded by

    zamboy0113
    Customs Administrative Order 4-2004, amendment to CAO 5-2001, implementing RA 9135 on the basis of dutiable value.

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    LULPADTESL FL Finnie BUREAU Or CUSTOMS 08 My 2a CUSTOMS ADMINISTRATIVE ORDER No, fo ino Subjee AMENDIKENY TO CUS:OMS ADMINISTRATIVE OKDER £2001 QMPLEMENTING REPUBLIC ACT 9135: AH AGT ANENDING SERTAIN PROVISIONS OF PRESIDENTIAL DEGREE MO. 1464, OTHERWISE KNOWN AS THE TARIFF AND CUSTOMS CONE OF TIME PHILIPPIIES, AS AMENDED (CUSTOMS CODE). AND FOR (OTHER PURPOSES). ‘by outhorty of Section 18 of Repubite et Ha. #138, the following rules seu! jogulalions ane hereby jraandgaled SEG.L OBJECIVES A To enhanes and consolidate ine seguiations eenceming the WHO Valuation Systern, the objectives i which are: 1. Yo nava a tau, 415 fox saistonks pmmpowos thal prechedes the use of arb © filious customs valuos, 2 Vo weogue tit the basis for valusaion of purposes should, Io the qreslest enlent poasib lransaction value of Ihe yesnes boing vais wisi id Oana sysleun for the walualion of 3. To vecopnine that lhe aislams value should be based om "simple and cipatablo criteria consistent with commercial prsuiices saul thal valation procedmes shewdt ho of genera japplicaliain without cistnchun bekwean sources of supp, dist 4.10 recognise th soa eying, valuation rocechate stroukl rt be eso Le Bo implement the recmukeopiny aru post enty aucit syctews one! to facilitate importation SEC. DUTIAWLE VALUE A Gener il protect govemunand avs Ue The dulisbiee valves ol inporled goods shall be delernines! «sing one of ‘ho six nnothous of valualion listed beleny, labs alias sommsentialy in thet tle poesia ly Tae 8. 1 Mothod 1— the teaisae on Vane he duittts vue: ter ean imgpested ie which is lle price actusily paid ve payable for thks gous wert sold for port to the Uilinpines adpisied in accordance wily ine Provisions of Section IMM of this Qieor, aint subject to, the Conaiions apeciied in Section I? herein The dutta vag shall bo the tas if Gf the tollowing coneiigns are 5 clon Valse unis method tif fea There must beat sate far expest to the P, 5, theta mst be no resticliojs as tothe disposition o¢ use ef hus {yoods by ths buyer, other than restricsicem whic TW Ate tunposed oF nequited by lake oe by Phifippians faites: 2) inal the geouyaphieat awea in whic the gots ano bs Feecld, oF 8) Donot substantialy aaot the value of the goods; ©The sale ur prioa must not be subject ky some condlions oF causidaraiiins for which a vahue cannot De losin welly espet 10 the goods bouy vied, J Mo pait ofthe proceeds of any subeauent resale, disposal ar suse of the gootts Ly the buyer will accrus isuetly 6 di ech, to the seller unless an appropriate sdiestmend cal be ial i accordance vith ths pravisiens of Saction IBS of tis Ores stl 2 The buyer sul the seller ars nat rated oF where they are relates), such relationship dl not influtyicy the price oF tho ‘goods. The buyer anal tha selée hall be dees to be relates! only if V) they are officers or duvelors of one ancther's lusinwsses 2) hey ara loyally radoynizen! parinars in lausinsss: 3) thay ore eniplayer anid eniployen, 4} any person ivectly oF wcivectly owns, eoMtels us tly 19F@ of he eullataediny voting look or sles of both thorn, 8) Gag of theam duectly or muectty controke tes ahr cad ©) ath of ten aio cuexaly or Insevetiy conti ty a ted pecseni 1) tawetier tty a person, lly OF lirecily oval a third A) thay ate solute feud ck f. W the lnyor and setter ace related, the se of the tansacten valve inethad is acceptably it the Sdeumstences- -susrounxting the wansadiion \Weeemstrals thal thc relationsh thd 0k intresting ise aidually paid ue payable, ar 2) the ansaction value ctosety apprommates wo one wt Hs following lest Valves accuring al or abot the ezine tae, 4) Tive tt atsaction value in sles to uneolled buyers of identical quets oF sine gels low apaitt 40 las Phutinpines, or ) the dachetive value of ident sit or sutae yous felurinsid io accaicance: wath Method 4: on 1 “The computed value of idenkical or similar gouds datesntted in acececlanes wath Method 5 1 applying the foregung tosis, due accouait shall be taken ul ewer strated differences in commercial lavels, quséily levels, the slesnunts ehwmersted in the iiimecialcly lellewing Poroprenh 3 and costs ineinied by le gallee ar sales in which fee seler andl the buyer ire pol vefaled nat ara aol ceed Dy fhe sellor i zales in wh dct the sellar andl te buyer ane related! ‘hy fight of infomation provilod Uy ue inperter or ®. the Bigeau has grounds for covicidsing tll tho Folationship interned the pries, steal conuenaicate is eavwxts 10: the importer and te nportar shall be gaven a ‘easunsble oppealunity ta vespond_ W ihe impurtes su requests, {the communication of the grands stl be in wring {hy Uotetnining ihe Transaction Value, the following udustnenits shal be added to the pre actually paid ar payable forthe imported ons bsing valacd i ich value Fats not been included in ts price cluably pall or payable & Cousiissions and brokerage wes (exept buying eosnissions), 1b. Cast ot Containers which are Iroated 2 being one for Customs pxposes will ile foods in question, 6 Ginsu packing abotbar tr Rabi ar als ha f Assists, Assists is dstined as the vale, apponioand as spypropiata, of Cartain goods and sarvioss suppliod directly ex feudeactly by the bayer trea of charge ot at sl uedhurau cust Lor Lise in connection wil the presluction and sale tor expos of tha iinported qooris, to the extent thal sacle value has nol been Jncorporelau ii the price actully paul or payable. They includ 1) Meteiais, components, sneprper tod ithe tin and Simar dawis Tools, hes, moulds and sinilar Hews sad in the roitucsion tthe imparted ecu, 4) Matarials concamed) iy the production of the umported goods; anu! 1) Cogmictring, developmen, sthwork, desig) ‘work, and plans undeitaken elsowhore than in the Philppanes nd acssealy for thie prOxluction of the anported goods, © sas and Ficorets hot alate to us yisels Bay ve [Tha value of any part of the proceeds ui any subsequent rosule, disposal or use of the linporled goods that saucruss sezelly 8 i etafy ta tha soli fa. The cool af ranaport of We mported yoents wth fn the Plalippiness pak of entey hoax spat Oro huyporladt goods fram the eok ha Philppisas; ant f, untoading sand handling eharges assaciated will the ry of exportslion, i the-cost of mnsura “The ehlisble vale mist nol neck We the following char ass oc they are digtingpashed from the price acially paid or payable for the ‘goo 2s Charges tor consiayction, stedion, assembly, matiteresce o+ toch! seston, undertaken ater inyorlation an imparted fueds such ax ek plan, machinery ar expaipment tGoal of rans afta impentston, © Duties aad lanes of Bie Mblpppins, nt Chea pease seduction alrwéd ude tna WTO Viduabion Aree he imports shall pay sdpatments wy Ianmactian Vobe pextabnirag a Aasiois | See. I{U)(@) (0). and Royalties icons | ees (See. 1 18) (0) (ell and the valli Gf sey part of the: paaceads of any Wibccquent iasala, disposal or tase of Ue imported goods that esetly to tes sei [Sec 1 (0) (9) (19 joo the shake vb wmportadioe ex fay ve (45) mala, ja (45) day day haw tho tau payment has best © Ad Method 2- the Wr ction Value tor Mfealicad oo: Ws the stotiabls wakes of wparted yond cenniol bo deter minsd! inde the provisions ut Sacton HD of thas Order, th dutisble value shall bbe tha tcwisaction value of identical goods sekd for expert to tne Plilingines sind exported al ov boul the same lin as the yeas being valued he sala involving sch idenlil quits mist alse be al tne sauie commatcial evel and in substantially he seine quently asthe goods Bein vaied Dain tua of identical aoods ical oorls ae data! as goa, which ere 1) the sto kr all eapeds inch: 4) pivysic characteretcs, 5) quay, ant Hi) dag 2) practi sare cenuniry as the und yoods being waked, 3) pwodkscud by the ponkacar af te goods boing vated, b. The delintion of identical goods exckules urpertad goats ts ‘which engineeding, development, arhwuk, design work, sd plans and skeichos i undatiakan in the Philjipius sine! is ridod by tha luyel to tha peodacer of Whe goods free of change ur al aredhiead cil, 6 Wie there sie sna identical guords prucices! by tho eerie: person in the comity of proxi ontical goncs praukiced by s chilesxonl person in the sewn [nuntny any be taken into scecun sat ait ih Sppennisnce well Het prechuke ysrouks Which otherwise conform fa the dedinion hon Boing regarded a 1 no sla f ontical goous al the sams commercial level ssl gn substantially dhe same Guantiy 25 thie goods kaa ig valued is foun, the Werbacins wale of ibonlical” gamds cold at a dlilererd nescial level an i dilfnern quay waiy be ttensaction value of identical goods shall he sadist ayn Soxmwatds 10 account foi Uemorctatad derenoas hulwoor Mt (goods being valuad anil li identical gocal, ta Lake arin of not sia fovel eilinea aes, be Gustiy autres, seu © Sigullcaut difecences toy kansperiation casks due to wanarnics ites aves aration distant lsinjnil 4 aAe liersyyplyingg Method 2, wore thay one ttanscasion value al wienical ‘goauks is found, he lowest of such value shal ba used te delermine the asians vaiue af the imparted goods ‘Mothou 3—The Transaction Value of lar Gouus {fhe duliable value of iuportod gaucs cannot be Ualesnino! Undae the preceding metbous, the dutiable vakie shall be the tiancaction ‘value of simi) yoods sold fov vxpod 10 the Philippines anel espe at or aliul the same tine ais the gees being valued he sale involving such similar goods must alse be at the same exninicrcial evel andl in substaplialy the same quantity as the goods being Mal Df iiow of sma goods: 2. Similar yous a8 defined 8s qaccls which, although nol ale in all esp, 1) Have tke characteristics and the componunt materials 2) Ate capable on performing se slams funciona lee goods being valued, 2) Are comuneally inferchangsable wih Ure gots beta vals, 4) Ave produced in the gama ceustey of the goods being a 8) Ate psodhuced by the produce uf the youuls beg vated BL Hhe detiition oF sunilar goods exchutes imported yous 11 wind engineeiiny, dovolopmant, artwork, dasign work, and pking and skulehas ie undertaken in the Philippines sod ts provided by the buyer te the preducer ef the quods free of al avedacec cist, Where these ace mo simiiar goods produced by the sansa G21 in tha cauniry of fadustion of the goods beng valued 1 youds prodhaced by a differant pereon im the esme ssounity nay be taken info account Yohole: na sie ef sitar goods atthe same commercial love ana subslantilly ne seria quanlily wa the gad beng wales ta lun ‘sinular yoods al diferent exmmeccial laval andor iy dilerci uaniily tway b2 uliized. Such \ransaction value of similar goods shell Lo adjusted upwards or downwards to accoul for omonstratce diflarences between the goods boing values sind the similar goaus, to lake account at rece oval vitforaries ity wlterunc gE 1 \pilienit Jiftoesiees tor Lanepoctation eels dhs lo vatiar a thé nous andl distance al las Ii applyny Mothou 3, ware thus une Wansaction vals of siywan 4jouits 1s found, the lows! of seh yale shall bu tised fa desi ns valu of tw imported gands dimiablo value stil camel he determined through the sesive application Of the be inwaesliaely poceding mothoxts, the chtiable valve sll be Ueler ninod andar hathod Four af. whet the ualliste value stil canal bs datarmined unides thal stati under MMatned Five, except Maal ol Hee caquest of Ure importer, Hie oder of application of Methods Fim ssuf Vive shall bee caverse Provided, however, That if the Gamnissioner of Customs deen Ihat he wil exporisnce real difficulties in daternining the dutiable value easing Mathod Fivo, the Commissioner of Custame may rence ‘suche request mi whitels even te: dukoble Vali Sh I lctosimn ad ienkid Mab ed Feu, Hil can be sn dolore Moto! A "Thee Dacuetive Wali Diy iy esti, id Bullable vais iz deterwiined on the bastis of ase in the: Phuipnines of the goods being valued or ll wiestizil ur similar hncrted yous, 1es8 cerlain specified expenses resulbing frome the impevtation aiid sale of the goods he sales in the Phibppanas must meet the following curation {ihe iapurted goods or kdeotical or sinilas mmpried goods hee bean sold inthe Phikppnes in the same conuhlur 25 u poxtad, b. Sales ol tie goods baling vahual ur ef kdandical or sinitar goods ave laken placo alo abied the time of enpartation of the ‘quails being valued: fm su (pomalled to, USS Salt of he wmportedd goocls Ui Sunllar inperlok gauds, sold ia the Philippines in Condi as imported, ale earbest date after i belore the expiration al 80) days alter such ampewt ook place ator about the tne oF ampantatieny, a is ical oF a4 the condhlor ss mipevtad that mect the inpoiter may choose to use Valuott aller futher procession, (3 arg nw shee of identical of sniine wnparted goods jn I the above coquuromes, sis of Hye gone being 10 the per Front whine ‘he tetas ones rt ee vee b ays sath goods, the panes views sist et ewes sagppllad sists eter eet or inchs The eprassion “al or ated the same tine, when applic! ba like veskeathe tielhed, chal naan a poor! éxtenduyy 45 days Wine to: sed 4b days tllerwing he impewtabow of the yaad being valk A Geihstive Vili Is deteiminesl by. ening a seduction nom the Ratabliched paice per ut tor the sygnogate of the kllowing Gonumigsions genecully aarnaet oA wit basta in comnection ‘will audos an Bie Phityines tor goods of the Soins class ev und: 0 U. ukstions usually mar ior in epanection. ganelal expanses lass hr ant it sales posit sat ithe Philipines for gods of Wis same Mae usual danspolt, wsuane ‘wisn ihe Rippin, aed vs! auscuialod costs meanved 4 Customs shitios and cihee sutional taxes payable ia the Phulippives ty reason ef tho impes tation er sao ne yous, Methods — The Cony Vale Under this ete, the dutiebie value rs Uotummined on thes basis al the cost of prosto:tion of he gulls batag sziod, pled sas sno ton pron wx! general exponses ustelly resected ye sales trou tho {county of exportion to the Philippines al goods of tne same Clos i kind ie Guiaba vehie sy be catente as follows: 2 Detar the aggregate uf tha ralavant eo eapsnses or the walag of: ieee! 1) otskatals employed in producing the wnpusled gos, and 2) ploducuun 01 ther processing easts for ne imported ‘guods (direct saul ndirget labes, Mclory uvexlwas|, Bb The toting eae to be sckleal if not inched ava 2) and a2 above 1) Cast of Cuntainess which ae Waaled as being one lar (Calsions pasposas with the goods in question, -stof packing ebelhur far labor or materials 3} Asaists (apportioned ma reasonable manner in scoidanea with ysnerallyaccaplgd accounting Principles), 4) Engineering, dovalopmes, pk cand sketches nai: charged to the pausbicar antwrk, design won con the. Philippines gdp » got © Bild ataouits tw prof und geneva expenses, usvally sallooled tn expen sales te Ihe Pripines, by prockirars in thee counry of export wf ods af tha sets else oF bara, Aid the cost of tase, ak oF placa ot sorta a1a8IGO Br elated args bo Une G Mellow é —The Fatinack value Wiicit the diabla vaio caren be deleriined undee any of the aeons ‘welhaus af voluati2o, 1 shill ls detest by tising etter waazenaiy Maans sonsistent with the prinexplos arab gesteral ywovisioes of GALL 1904, th sigroemen on the implementation of Jutiele Vil of the Garieral Agresinent on Tarils and Inde as comained in the Urnguay ona ital Act, vel on thie basis of cits atvatable in thas Philippines tho importer go reysests, he hull he kalonrned di ening Ls te eetiable vale deluunined under Blethad Six sod maths used to dalvinin sich vali Ho didiatily state bas td inches Mth Sie re bats of 1 The selling poe my the # Phulispnacs, pines of gouds pchiesel in Hae 2 Asyste thal provides tar the secuptance for cuslemns purposes of tho higher of tans Remiatios alms, The price ol qoos in the domestic warkel of the eouniey of exportation: 4 The-cost ol piodioction, ols than compel values, that lieve been deter mined tor ntical or stauler goods in actinstanca wil Melt Fre nuient, 8, The pus af gods tor exjion to a covmiy other tan Ds Ph 6 hunnansieatstoms wstues; oF 7. Aubaray or Uctiious vale HL lability to accept or doubt as ta the wanwaetion value documents subsalited yy the Lupoiter at the tie entry is filed 1 process: 4. This sectoi dul apply te import yoloasing precedes includ lentalive release: under Sufficient nuerantes 2. Whence! Une Bureaus unl lo (0 accept tha haan vali uw i has essen Ia doubt tha tls wr aeeurscy of the pewticulars or a document prediced in suppl of the import dackeation, it shoukd ality and give the snporier Whe oppuunity 1o prowl further feplnetion. Ihe Bias shall commumicite to tie injaatet, i walking Prep cote, is grams for doubling ibe Irth ar accuracy a eAb-Y-a yf he paticulsrs or documenis pruguced and give ke importer ‘estsantable oppantunly la respond her ruceiving tunher isumation, oi the absence ca «1 rom the inportes, the Bureau sill has reasonable danbts stoi te fuih or acura ol the declare wae, than it is dees Ihat the cuslams value of imported goods carol be dototmined tinder Method One The Bursatr shall tien proceed to deteriine the: Guliabie valve unces alternative meltiols sequentially sid in the nwar OF succession as provide lp ta AL Upon writin seguiast, the iynporter shill have Uns tight toon explanetion wn wniling fvom the Buea as fo-tiow the estos vale ‘af the importe’s goods was Jetermined, When a final decision ts faite, the Guvead shal commmincle ta Whe imports in wring ils daciston and ihe quoninds therefor 5S The above pracacire (8 wilhoul prsjusice ta an importers right lo apecal purstand lo Arlicls 11 of the WHO: Agreement on Custones Vakuatian ADMINISTRETIVE PROVISIONS AL Raference Value as Fisk Manageme Fublislie! ur established cisions value, of any ether value reference from wiralevs soues, carmel Le used a subeitte yaks for cuetoine Valislion Mowaver, ach value intoishalion may BS Wied as 3 Ask management lool 12 establish doubt or to abet customs to do a value ‘verification cleat eer uphond thew a system uated bo the purpose oF iva pos! entry basis theough the Post Fniry Audit infrastructure, Bh eiey Conversion ‘Whore thes conmation of aurency ix necessary foe he delernination of Ine dutiable value, Wie rele at exchange 19 be used shall bo that duly published Wy the Mangko Seotial ng Plpinss and shall cellect 35 fifaclivaly #3 possibile, in respect of the period covered by each suit document uf publication, te catent valug Mm such Currey Sausercial Ienssestions in terms of the curancy af ths Philippines, The conetsion vate to be Used shall be that in eftect as provice fori Gustams Metnorandurn Oder Mo. 24-05 G. Release Under Sutficiant Guarantee Win tne rouse of ustenuning the dutiabla vane of mposte

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