MALACAÑANG

Manila

MEMORANDUM ORDER NO. 225

INTENSIFICATION OF ANTI-SMUGGLING OPERATIONS AND

DELINEATING RESPONSIBILITIES THEREFOR.

The economic recovery program of the country is anchored on the

enhancement of a healthy: business climate and the facilitation of
commerce and trade. However, this freer and more liberal economic and
social system may be taken advantage of by certain sectors of our society
to intensify their smuggling activity and to engage in other forms of
economic crimes. There is, therefore, a need to intensify our anti-smuggling
operations and to impress upon everyone our Government’s seriousness in
stumping out these maladies.

For this purpose, all government agencies and functionaries are

called upon to contribute in the fight against smuggling and other forms of
fraud upon customs revenue. To achieve harmony of efforts and to prevent
possible conflicts between agencies in the course of anti-smuggling
operations, the following guidelines are hereby issued:

1. The Bureau of Customs (BOC) shall have exclusive jurisdiction

over all anti-smuggling operations within the ports in all principal ports and
sub ports of entry as well as all areas considered as customs zones, such
as Customs Bonded Warehouse, and as such may call upon all other
agencies of government for assistance in the conduct of operations within
these areas of sole jurisdiction.

2. The Economic Intelligence and Investigation Bureau (EIIB) shall

be the agency of primary responsibility for anti-smuggling operations in all
land areas and inland waters and waterways outside the areas of sole
jurisdiction of the Bureau of Customs and as such may call up[on the
assistance of all other government agencies particularly military and police
assistance in the conduct of anti-economic subversion operations within
these areas of primary responsibility.

3. The Philippine Coast Guard (PCG) shall be the agency of

primary responsibility for all anti-smuggling operations conducted in
maritime waters within the territorial jurisdiction of the Republic of the
Philippines and as such may call upon the assistance of all government
agencies in the conduct of anti-smuggling operations within these areas of
primary responsibility.

4. All government agencies and functionaries authorized by law to

engage in anti-smuggling activities shall turn over to the Bureau of
Customs all confiscated or seized articles, for the appropriate seizure and
forfeiture proceedings as authorized under the Tariff and Customs Code.

5. All law enforcement agencies mandated by law to fight

smuggling and other fraud on customs revenue shall undertake their anti-
smuggling operations within the joint guidelines agreed upon by the
agencies concerned. The following general principles must be followed in
the preparation of the joint guidelines:

a. The joint guidelines must promote harmony and cooperation

among agencies in the conduct of operations to obtain optimum results,

b. Operations must be coordinated to achieve widest coverage

possible and thus maximize utilization of resources;

c. The joint guidelines must give due consideration for the rights
of informers and apprehending officers to rewards provided for under
existing laws and orders;

d. A mechanism should be provided for the coordination of

operations and the setting of disputes that may arise among units in the
conduct of operations;
 e. The joint guidelines must be consistent with all existing laws as
well as with the overall national defense doctrines, plans and standard
operating procedures against insurgency, criminality and other enemies of
the State.

6. In order for the PC/ INP to concentrate on its primary duty of

promoting peace and order, it shall not engage in the enforcement of
customs laws, rules and regulations unless specifically deputized by proper
authorities or requested to provide assistance by law enforcement agencies
mandated to operate against smuggling.

This memorandum Order shall take effect immediately.

(Sgd.) CORAZON C. AQUINO

President of the Philippines

Manila, March 17, 1989

MEMORANDUM OF AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:

This memorandum of agreement entered into this 8 th day of July,

1989 by and among:

The BUREAU OF CUSTOMS, a government Bureau organized and

existing under Republic Act No. 1937 as amended, with offices at the
Bureau of Customs Building South Harbor, Fort Area, Manila, represented
herein by its Commissioner,SALVADOR M. MISON and hereinafter
referred to as BOC;

And

THE ECONOMIC INTELLIGENCE AND INVESTIGATION BURAEU,

a government Bureau organized and existing under Executive Order No.
127, dated 30 January 1987, with offices at Camp General Emilio
Aguinaldo, Quezon City, represented herein by its Commissioner, JOSE T.
ALMONTE and hereinafter referred to as EIIB;

And

The PHILIPPINE COAST GUARD, a government agency organized

and existing under Republic Act No. 5173, dated 10 October 1967, with
offices at HQ 25th Street, Port Area, Manila, represented herein by its
Commodore, PIO H. GARRIDO and hereinafter referred to as PCG;

And

The DEPARTMENT OF JUSTICE, a government agency with office

address at Department of Justice, Padre Faura St., Manila herein
represented by the Chief State Prosecutor and Chairman of the Tax and
Duty Prosecution Group (TDPG) FERNANDO P. DE LEON and hereinafter
referred to as DOJ;

And
 The DEPARTMENT OF TRADE AND INDUSTRY, a government
agency with offices at 5th Floor, Trade and Industry Building, 360 Sen. Gil J.
Puyat Avenue, Makati, represented by the Director of the Bureau of Import
Services, LEOPOLDO A. ABAD JR. and hereafter referred to as DTI;

And

The DEPARTMENT OF ENVIRONMENT AND NATURAL

RESOURCES, a government agency organized and existing under
Presidential Decree No. 705 with offices at Visayas Avenue, Diliman
Quezon City, represented by its Secretary, FULGENCIO S. FACTORAN,
JR. and hereinafter referred to as DENR;

And

The BUREAU OF INTERNAL REVENUE, a government agency

organized and existing under Reorganization Act No. 1189, with offices at
BIR National Office Bldg., Extension Triangle, Quezon City, represented by
its Commissioner, JOSE U. ONG and hereinafter referred to as BIR

And

The BUREAU OF FISHERIES AND ACQUATIC RESOURCES, a

government agency organized and existing under Presidential Decree No.
704, with offices at Arcadia Bldg., 860 Quezon Avenue, Quezon City,
represented by its Director, JUANITO B. MALIG and hereinafter referred to
as BFAR;

And

The PHIL. CONSTABULARY/ INTEGRATED NATIONSAL POLICE,

a government agency organized and existing under Staff Memo No. 15
dated 15 January, 1976, with offices at OJMP Camp Crame, Quezon City,
represented by its Chief, RAMON F. MONTANO and hereinafter referred to
as PC/ INP;

W I T N E S S E T H :
 Whereas, Presidential Memorandum Order No. 225 dated March 17,
1989 directed the intensification of anti-smuggling operations and called
upon all government agencies to contribute in the fight against smuggling
and other forms of fraud upon Customs revenue even as it stipulated
certain guidelines on how the intensified operations shall be conducted;

Whereas, the Bureau of Customs (BOC) has the exclusive jurisdiction

over all anti-smuggling operation within the ports in all principal ports and
sub-ports of entry as well as all areas considered as Customs Zone;

Whereas, the Economic Intelligence and Investigation Bureau (EIIB)

has primary responsibility for anti-smuggling operations in all land areas
and inland waters and waterways outside the areas of sole jurisdiction of
the Bureau of Customs;

Whereas, the Philippine Coast Guard (PCG) has the primary

responsibility for all anti-smuggling operations conducted in maritime
waters within the territorial jurisdiction of the Republic of the Philippines;

Whereas, the Department of Justice is mandated to extend all the

necessary assistance in the successful prosecution of smuggling cases;

Whereas, PMO 225 is also calling upon other government agencies

to contribute in the fight against smuggling;

Whereas, the Department of Trade and Industry in its commitment to

protect our local industry from the harmful effects posed by smuggled
goods, actively participates through the Inter-Agency inspection teams in
the concerned law enforcement agencies;

Whereas, the Bureau of Internal Revenue operates against untaxed

goods, most of which are smuggled into the country;

Whereas, the Department of Environment and Natural Resources is

mandated to prevent the smuggling out of the country of certain controlled
forestry products;
 Whereas, the Bureau of Fisheries and Aquatic Resources is
mandated to prevent the smuggling of controlled fish, fisheries/ aquatic
products;

Whereas, the PC/ INP may be called upon by other law enforcement
agencies for assistance in the conduct of their anti-smuggling missions
although in general, it has been mandated not to engage by itself in the
enforcement of Customs laws, rules and regulations;

Whereas, in the joint guidelines implementing Presidential

Memorandum Order No. 225, the heads of the Bureau of Customs,
economic Intelligence and Investigation Bureau, the Philippine Coast
Guard and the PC/ INP agreed to put down detailed procedures
implementing the General guidelines in a Memorandum of Agreement
among the heads of all law- enforcement agencies concerned;

Now, therefore and in furtherance of the objectives laid down in the

Presidential Memorandum Order No. 225, the undersigned enters into this
Memorandum of Agreement as herein defined.

I. INTELLIGENCE

A. Intelligence Gathering- Intelligence gathering particularly against the

organized smuggling groups shall be the endeavor of all the participating
agencies to maintain an updated file on organized smuggling groups or
regular smuggling personalities following a file structure to be agreed upon
but at least containing the following information full name and alias of the
different personalities, their office and residential addresses and phone
numbers, the firms and entities being used for smuggling operations and
vehicle description and plate numbers being used in their trade.

B. Information Sharing – a participating agency is requested and

there are no legal constraint, shall furnish the requesting agency of its
information holding on the person or firm specifically identified in the
request.
ll. OPERATIONS

A. BOC EXCLUSIVE AREA OF JURISDICTION

1. All anti-smuggling operation in all ports and subports of entry,

including Customs zones, container yards, container freight stations, and
customs bonded storage and manufacturing warehouse, customs areas in
postal offices/postal stations and areas under the direct supervision of the
Bureau of Customs, as may be required in the enforcement of Customs
laws and regulations and the protection of customs revenues, shall be
undertaken and conducted only by personnel of the Bureau of Customs as
are duly empowered by their appointments, assignment and designation or
by special orders, directives or deputation from the District Collector
concerned or the Commissioner of Customs,

2. All airplanes/vessels engaged in foreign trade, within the

airports or ports of entry, under the direct control and supervision of the
Bureau of Customs, shall be considered as extension of the exclusive
jurisdiction of the Bureau of Customs to the exclusion of other government
agencies in so far as anti-smuggling operations is/are concerned;

3. Inspections, audits, investigations and inventory taking as are

provided for by customs laws and regulations in all areas mentioned in
paragraph 1, shall continue to be performed exclusively by authorized
personnel;

4. Articles transferred from the Customs Zone to CY/CFS bonded

warehouses and to other customs areas which are considered as extension
of the customs zone which customs has not yet released from its custody
and control shall not be subject to interception/apprehension unless by the
circumstances surrounding, there could be no other possibility except that
such imported cargo is in fact being diverted before it reaches its
destination to the prejudice of customs revenues;
 5. Articles of foreign origin on board domestic vessels shall be
treated as follow;

a. Apprehension by the Philippine Coast Guard (PCG) shall

be done before the vessel have docked at the pier, quay or wharf. However
in piers, quay or wharf where is/are no Customs personnel, the PCG may
affect the apprehension on dockside. In such a case, turnover to the
Bureau of Customs shall be done soonest but not be exceed after proper
inventory shall have been made,

b. Once the domestic vessel shall have docked, then it shall

be the Bureau of Customs which shall be exclusive jurisdiction insofar as
an anti-smuggling operation is concerned. However, if in the performance
of SOLAS as well as other security operation on docked domestic vessels,
the PCG chanced upon the presence of foreign goods and time is of the
essence, then they shall take the necessary action to prevent the
smuggling ang notify the Bureau of Customs accordingly of their action and
effect immediate transfer of responsibility in the apprehension of imported
articles. Foreign goods being illegally unloaded from foreign vessel in
anchorage shall be similarly treated;

c. If the Bureau of Customs shall have information on the

cargo of domestic vessel which are in violation of Customs laws, rules
and/or regulations, even if the ship/vessel shall not have yet docked, it shall
coordinate with the PCG in the apprehension of the articles, and it (BOC)
shall be accorded full support by the PCG;

6. Should it become necessary for an offices or agency to

participate in any activity above-mentioned by reason of their charter and/or
function, request for such participation, shall be made by the Commissioner
of Customs/Sub port Collector in the out ports;

7. Should other participation agencies have information not yet

known to the Bureau of Customs of an impending or ongoing violation of
Customs laws, rules and regulations requiring the apprehension of goods
and vehicles in areas under Customs jurisdiction, coordination shall be
made with the Bureau of customs which shall provide the needed
personnel and resources to effect the apprehension together with the
informing agency in which case, the informing agency shall be credited for
the information while both agencies shall have credit for the actual
apprehension. The Bureau of Customs shall issue the necessary orders
describing the mechanics of coordination to insure proper crediting.

B. PCG AREA OF PRIMARY RESPONSIBILITY

1. Anti-Smuggling Operations in the country’s maritime and

coastal waters is the primary responsibility of the PCG. To promote
harmony and prevent conflict of operations, anti-smuggling operations in
these waters shall be coordinated with the PCG STATION nearest the area
of operation, the PCG shall provide all agencies involved in anti-smuggling
on updated list of the addresses of all PCG STATIONS all over the country
for the purpose.

2. If time is of the essence rendering prior coordination

impracticable, the national agency concerned should proceed with the
operation but make every effort to notify the PCG station with jurisdiction
over the area of the operation in progress.

3. The coordination/notification must contain as a minimum

the following information:

a. Date

b. General Area of Operation

c. Subject of Operation, i.e. description watercraft,

persons and goods to be apprehended

d. Team Leader of the operating unit and watercraft

to be employed
 To maintain confidentially and so as not to prematurely disclose
information on the operations, the notification may be placed in a sealed
envelope to be opened only prior to the commencement of operation. Other
arrangements whereby the required notification can be accomplished
without compromising the operations can be worked out.

4. While operations may be conducted independently

provided the proper coordination/notification is made, a joint
operation with the PCG is encouraged to ensure cooperation and
success.

5. Goods apprehended in the maritime and coastal waters

must be brought directly to the nearest PCG station or Customs office
whichever is closer to the place of apprehension for investigation
unless there are compelling reason to bring the goods first elsewhere.
Goods not brought initially to the Customs Office shall be turned over
to the nearest BOC District Headquarters within 72 hours from date of
apprehension unless a longer period of time is necessary to
document the violation.

C. EIIB AREA OF PRIMARY RESPONSIBILITY

1. Operations Center – For each region, there shall be

designated regional operations center (ROC) to serve as point of
coordination for all overt ant-smuggling operations. All operations with the
objective of apprehending smuggled goods must be notified with the
Operations Center. The notification must contain as a minimum the
following information;

a. The name of the unit conducting the operations and the

telephone number that could be contacted for verification purposes;

b. The name of the team leader of the operations;

 c. Vehicle plate numbers and description to be used in the
operations;

d. Object of the operations such as the goods to be seized

or the persons to be apprehended.

e. Address of the place covered by the Search Warrant or

Warrant of Seizure and Detention or in case of interceptions, the areas
covered; and

f. Duration of the operations.

To maintain confidentially and so as not to prematurely,

disclose information on the operations, the notification may be placed in a
sealed envelope to opened only prior to the commencement of the
operation. Other arrangements whereby the required notification can be
accomplished without compromising the operation can be worked out.

2. The operation Center shall make coordination with local

PC/Police Units and direct them to provide assistance upon request by the
operating unit.

3. In case a target is also the subject of other agencies, then

the operations shall be conducted jointly by all agencies that made the
proper coordination with the ROC. The EIIB Operating Unit involved (if any)
shall take lead but credit for the operations shall be given to then agency
that per ROC records, made the first coordination.

4. After the completion of the operation, the operating unit

shall render an initial report to ROC on the completion of the operations. A
copy of the units After Mission Report shall be furnished the ROC. The
AMR must contain the following information:

a. Coordination file-number

b. Outcome of Operation
 ( ) Positive

( ) Negative

c. Goods Seized and Disposition

d. Claimant/Owner of Goods and Address

e. Person/s Apprehended and Dispositions

f. Problems Encountered Needing Remedial Measures in

the Guidelines

5. The Operations Center shall furnish the Commissioner EIIB a

monthly list of all coordination made with the Operations Center of the
Operation and maintenance of Data Base file of operation undertaken.

The file which shall contain the same information as in C-1

above shall be available for accessing by all participating agencies as
reference in their intelligence operations and future operations.

II. INVESTIGATION AND PROSECUTION

A. TURNOVER OF APPREHENDED GOODS

1. Goods apprehended for violation of TCCP by virtue

of a Warrant of Seizure and Detection or through interception must be
turned over to the Bureau of Customs within three working days from time
of apprehension unless a longer period of time to document the seizure is
necessary. Warrant9s0 of Seizure and Detection shall be applied for by the
operating agency/office/unit against the imputed articles with the District
Collector of Customs concerned.

In all cases, immediate inventory of the articles in the

presence of the consignee or its/her/his authorized representative shall be
conducted by the representative of the Bureau of Customs and the
representative(s) of the agency/office turning over such articles to the
Bureau of Customs.
In the absence or failure by the owner/importer/consignee or its/her/his duly
authorized representative to be present in the inventory, a representative
from the Commission on Audit shall be requested to participate in the
inventory;

2. The turnover of the apprehended goods must be covered

by a memorandum touching on the following:

a. The reason for the operation.

b. The violations documented supported by the evidence;

c. The recommended courses of action.

The original of the3 memorandum must be forwarded to the

Commissioner of Customs in case of the Customs Districts located at the
National Capital Region and to the District Collection of Customs in cases
of the out ports.

3. After examination and before closing the van/creates a

photograph of the goods must be taken to show its condition prior to the
locking and scaling of the containers.

The container must be sealed jointly by the examiner and the apprehending
office and the seal number reflected in the turnover documents as show in
Annex “A”.

4. Another photograph of the goods shall be taken upon its

receipt at the Bureau of Customs Security Warehouse to show its condition
at the time receipt.

B. APPREHENDING UNIT TO INVESTIGATE ANMD DOCUMENT

VIOLATION

In order for the apprehending office to prepare the above

memo, the goods must be examined at the office of the apprehending
Bureau/Office which examination must be conducted jointly by a Customs
examiner duly assigned for the purpose and representatives of the
apprehending unit.

As much as possible, a representative of the claimant must witness the

examination or in his absence, a representative from COA.

C. BUREAU OF CUSTOMS TO PROVIDE CUSTOMS EXAMINERS

AND NEEDED DOCUMENTS

The Bureau of Customs shall provide Customs examiner(s) for

the purpose and furnish the apprehending unit, whatever covering
documents are needed to be able to document properly the violations.

D. MUTUAL ASSISTANCE

All participating agencies shall extend to each other mutual

assistance in the conduct of investigation/prosecution such as in providing
witness and investigators and available evidence.

IV. COORDINATING COMMITTEE

A. REGIONAL COORDINATING COMMITTEE

For each region, there shall be constituted COORDINATING

COMMITTEES composed of representatives from each of the participating
agencies the overall mission of which shall be to take the necessary
measures to facilitate the accomplishment of the objectives set firth in the
PMO 225. The following shall be the specific functions of the Committee.

1. To periodically assess the nature and extent of smuggling in

the region;

2. To set up plans and programs on how to effectively combat

smuggling in the region and to allocate tasks;

3. To periodically assess how much have been accomplished in

the anti-smuggling campaign and the programmed objectives;

4. To thresh out problems encountered and iron out any

disharmony in the course of operations; and

5. To submit monthly reports to the President thru the Secretary

of Finance on how well the objectives set forth in PMO are being
accomplished;

6. To monitor and periodically assess the status of cases filed

and to take necessary measures to ensure their successful prosecution.

B.NATIONAL COORDINATING COMMITTEE

There shall be constituted a National Coordinating Committee

to be composed of the heads of the represented Bureau the primary
mission of which is to assess the reports of the Regional Coordinating
Committees on a regular basis and propose the needed legislative
measures for the enhancement of the government’s all-out drive against
smuggling and other forms of fraud upon customs revenue.

C. SECRETARIAT

The EIIB shall provide personnel to man the National as well as

the Regional Coordinating Committee Secretariat.
 In witness whereof, we have here unto net our hands this 8 th day July
1989.

Sgd. SALVADOR M. MIZON Sgd. JOSE T. ALMONTE

Commissioner, BOC Commissioner, EIIB

Sgd. Commodore PIO H. CARRIDO Sgd. Jose U.ONG

Commandant, PCG Commissioner, BIR

Sgd. FERNANDO P. DE LEON Sgd. LEOPLODO A. ABAD JR

Chief State Prosecutor, DOJ Director, BIS-DTI

Sgd.FULGENCIO S. FACTORAN JR. Sgd. JUANITO B. MALIC

Secretary, DENR Director, BFAR

M/Gen RAMON E. MONTANO

Chief, PC/Dir General INP

Noted:

Sgd. VICENTE R. JAYME

Secretary,DOF