REPUBLIC OF THE PHILITIN DEPARTMENT OF FIMANCE BUKEAU GF CUSTOMS MANIA. SUP CUSTOMS ADMINISTRATIVE ORDER SUBIECT: RULES AND REGULATIONS RATIONALIZING THE USE AND OPERATION OF PUBLIC CBWs; SUPPLEMENTING/ MODIFYING CAG 2-91 AND OTHER RELATED ISSUANCES By authority of Secuon G08 and pursuant to Tile V of the Tanff ancl Customs Code of the Philippines, as amended, in relation t CAO Nos, 2.91 and 7- 2002 and other related issuances, the following rules anc regulations are hereby gate I. Objectives 1. To rationalize the use and aperations of Public Customs Sonded Warehouses (Public CBWs) such that only those that the business of the port requires shall be established/aliowed to operate. 2, sure that these facilities shall not be payment of lawful duties and laxes accruing on iv entering such warehouses, or in any scheme that would cle ota government of its lawful revenucs TE Scope This Order covers Public CBWs duly registered with, BOC to operate as such, when the business of the part so rectTL Iv. CAO 2-f0es General Provisions For pumoses of this Order, a “Public Customs Bonded Warehouse” is dofined a5 a facility fitensed by the Bureau of Customs, when the business of the port requires, to receive, store and take custody of general caigoes, under bond, for expoitalion, kensfer to another customs bonded jouse or ecorone/PEZA, or for local consumption, in the same. state and condition the cargoes were when imported. Except 2s otherwise herein provided, applications for the establishment operations of Public CDWs shall be processed follawing the documentary and procerlural requirements for the establishment of C8Ws under existing laws, meles and regulations. The establishment/eperation of Public CBWs shalt only be allowed upon determination that the business of a particular port requires such facility, on recommendation of the District Collector and the Customs Bonded Warehouse Commnittes, subject to the approval ef “ joner of Customs. ‘On a per shipment basis, imported articles shall be entered into a Public CDW vpon certification by the arrastre gperator Uiet the port has no available space and/or has no available equipment/faclities sprciatly required to handle such articles; and upon certification by the Public CBW operator that he/she has the necessary space for storing such materials andfor the =~ necessary special ‘equipment/facilities to handle the same, on the recommendation of the chief of the operating division, with the approval of the Distict Collector. Imported articles entered into Public CBWs may be stored therein for a period not exceeding one (1) year to be counted from the date of their arrival. Specific Provisions AL Translers from the Port to Public CBWSs Authorized transfers from the port to Public CBWs may be effected upon filing of the corespunding warehousing entry, which shall be processed i) accordance with the existing Selectivity system and upon the posiB. Withiolres L 049. 2-23 dn ports where the Selectivity system for warehousing entries is not yet operational, the transter of the imported warehousing articles from the Customs zone shall be mace under s Transshinment Permit, in which case the warehousing entry shall be Med within five (5) days from date of transfer, which period may be extended for another five (5) days by the District Collector as provided for under CHO 39-51 Regulated articles without the correspending clearance and/or import authority duly issued by a competent authority shall not be allowed transfer from the port to a Public CBW and shall be subject to seirureffosfeiture, without prejucice to other appropriate penalties imposable under existing laws and regulations. Prohibited articles shall be subiect to immediate seizure and such other sanctions, ‘The transfer of imported articles from the port to a Public CBW shall be under continuous guarding by customs guerd until delivery at the warchouse is acknowledged in the covering boatnote by the customs personnel assioned thereat. wats from Public CBWs Withelrawals for local constimption shall be allowed only upon payment of duties and taxes. Withdrawals for transfer to another CBW or ecozone/PEZA shall be allowed without payment of customs duties ancl taxes; Provided thot the transfer to another CBW shall be under bond; and provided further thal the articles sought to be transferred fall within 2 suthorily/license of the receiving CBW; and pravided finally that hh transfer shall be approved by the chief of the concemed operating division of the receiving CBW, Subsequent transfer trom a receiving CHW to another CBW shall as a mule no longer be allowed. in case of transfers to ecozones/PEZA, the articles sought to be shall be covered by an import authority duly issued by cemed ecnzone/PEZA authority duly designated for the chiof of the operating division shall verify the and due execution of the ecozone/PEZA importvi. 3 Articles not withdrawn-at the end of the one-year strorage period shall be sold ai public auction pursuant to Sec. 1908, Tariff and Customs Code of the Philippines. © Liquidation af Warehousing Enlzy and Cancellation of Bonds dation of imported articles under bond shall be done within from saloftransfer/withdrawal, provided that the 30-day period shalt fail within the ong-year siorage period. 2. Only upon the full iguidation shall Lhe borvels be cancelled, materials and their covering entries Transitery Provisions 1. Within the iirst three (3) months from the effectivity of this Orcier, the Bonded Warehouse Commitiee shall review alt existing Public CBWs, whether licansad or operating as such, for the purpose of clearly determining whether these facilities are operating in conformity with this Order taking into account their individual storage Capacity and faciiitiesfequipment, among others. 2. Existing Public CBs found net to be operating in conformity with the provisions af this Order may convert at their option to Industry Specific CEWs in accordance with Customs Administrative Order (CAD) 7-202, or to any other type of CBW not covered by the moratorium under CMO 3-98, within three (3) months from the effectivity of this Order. 3 CBWs found to be operating not im conformity with the jons of this Order and which opts not to convert within the e-montls period shail be deemed closed. Penalties In addition to the nalties provided for under CAO 7-2002, is hereof shall subject the imported goods public auction and such other appropriate The above administrative penalties shall be without to the criminal sanctions against the imporler, consignee MY ns provided for uncer existing laws,2 Any customs officer who wilfully or negligently allows or permits the violation of any provisions hereof shall be subject to administrative and criminal liabilities as provided for by existing laws. VIL. Authority of the Commissioner to Pramulgate Additi al Rules. ‘The Commissioner of Customs is hereby authorized to issue acklitional rules and regulations tm moze effectively implement this Order. VIII. Repeating Clause All Orders, Memoranda, or circulars, inconsistent herewith are hereby repealed and/or deemed modified accorelingly, VIL Effectivity ‘This Order shall take effect upon the approval of the Secretary of Finance ant after fifteen (15) days from publication ina newspaper of general circulation in the Philippines. jase AN ppare Ae ANTONIO M. BERNARDO ‘Commissioner of Customs JOSEASIORO CAMACHO retary of Finance Date Signed: 23 /2 [es