January 16, 1991

CUSTOMS ADMINISTRATIVE ORDER NO. 002-91

SUBJECT : Rules and Regulations for the Establishment, Operations, Supervision,

and Control of Customs Bonded Warehouses

By authority of Section 608 and pursuant to the provisions of Sections 1901, 1909,
and Sections 2001-2004 of the TCCP, as amended; L.O.I. 1040; E.O. 226; R.A. 3137,
as amended by E.O. 823, the following rules and regulations for the establishment,
operation, control and supervision of all types of Customs Bonded Warehouses are
hereby promulgated.

TITLE I

General Provisions

SECTION 1. The Bureau of Customs is responsible for the licensing, supervision,

and control of all Customs Bonded Warehouses.

SECTION 2. Articles that are manufactured by any bonded manufacturing

warehouse shall be exported exempted from payment of duties and taxes. Such
exportation shall be supervised by assigned customs officials.

SECTION 3. Imported materials and/or accessories used in the manufacture of

articles that are transferred to other bonded manufacturing warehouses of members of
a common bonded manufacturing warehouse for processing into finished products or
for its own manufacture and thereafter exported shall also be exempted from paying
any duties and taxes. This privilege, however, shall not apply to implements,
machineries or apparatuses to be used to construct, repair or operate any bonded
manufacturing warehouse unless otherwise authorized by law.

SECTION 4. Imported raw materials, accessories, and the like, if sold or used for
domestic consumption shall be subject to duties, taxes, and other charges.

SECTION 5. All imported articles or finished products shall either be exported or

withdrawn for domestic consumption within the period prescribed in Section 1908 or
2002 of TCCP, as amended; R.A. 3137, as amended by E.O. 823, or E.O. 226.

SECTION 6. Customs Bonded Warehouses are classified as follows:

1. Customs Bonded Manufacturing Warehouses, which are further divided into:

a. Garment/Textile Manufacturing Bonded Warehouse

b. Miscellaneous Manufacturing Bonded Warehouse
c. Common Bonded Manufacturing Warehouse

2. Public/Private Bonded Warehouse

3. Customs Bonded Trading Warehouse
4. Multi-national Regional Warehouse
SECTION 7. A bonded warehouse includes the premises, rooms, compartments,
and other areas necessary for storing, processing, repacking, and manufacturing
imported raw materials and the by-products or wastage incident to such activities.

SECTION 8. The visitorial power of the Bureau of Customs over Customs Bonded
Warehouses shall extend to subcontractors, as well as the accredited members of
Customs Common Bonded Manufacturing Warehouses.