CONSUMPTION ENTRY

1. The documents that details the importer's declaration, nature of the goods, their value,
quantity, quality, weight, tariff classification, payment of duties, taxes and other charges
2. The process by which the duty is paid at once, or secured to be paid by means of
adequate security and when immediate release of merchandise from customs custody is
desired.

KINDS OF PROCEDURES FOR GOODS DECLARATION FOR CONSUMPTION

FORMAL ENTRY- a kind of customs entry made directly by the importer, or broker on all goods
of commercial quantity and value. It excludes personal effects, diplomatic articles, household
items, postal parcels and those made by returning residents or immigrants.

INFORMAL ENTRY- an import entry made by a Customs Examiner or appraiser in behalf of an

importer or consignee. It generally covers personal effects or articles not in commercial
quantity, importations of diplomatic officers, and household goods of returning residents
(balikbayan), overseas contract workers, and those settling in the country as immigrants. These
also refers to articles that are considered not of commercial value and includes parcels landed
through the postal route.( Section 402 CMTA)

Formal Entry process

Goods subject For Consumption under Formal Entry Process
• All goods commercial nature with FOB/FCA value of P50,000 or more whether taxable or
exempted
• All Goods not eligible for exemption under Section 800 of CMTA
• All goods belonging to Qualified Person imported in commercial quantities or excess of
duty/ tax exempt or de minimis amount
• Government importation whether taxable or exempt
Stages of Procedural Flow of entry Process Flow
• Lodgment ( Section 102-dd, 401, 407, 408, 412,CMTA)
Refers to the registration of a goods declaration with the Bureau.
• Assessment ( Sections 102-f, 424, 429, CMTA)
- Refers to the process of determining the amount of duties and taxes and other charges
due on imported and exported goods.
• Clearance ( Sections 102-k, CMTA)
- Refers to the completion of customs and other government formalities necessary to
allow goods to enter for consumption, warehousing, transit or transshipment or to be exported
or placed under another customs procedure.

• Release of Goods ( Sections 102kk, 431, CMTA)

- Refers to the action by the Bureau to permit goods undergoing clearance to be placed at
the disposal of the party concerned

Single Administrative Document (SAD)

• A document sourced out from successfully lodging the goods declaration into VASP
accredited by the BOC which is sprinted form the E2m Customs System
• It replaces the former BC Form 236 or Import Entry and Internal Revenue Declaration
Lodgment of Goods Declaration
• Submitted electronically pursuant to RA 8792 otherwise known as Electronic Commerce
Act of 2000
• When printed must be secured or certified by a competent Customs officer as a faithful
reproduction of electronic submission shall be considered as actionable documents for purpose
of prosecuting a declarant if the declaration is found to be fraudulent.
Content of the Goods Declaration/SAD
• Consignee
• Importing vessel/aircraft
• Port of Departure
• Port of Destination
• Date of arrival
• Number and marks of packages or quantity in in bulk
• Nature and correct commodity description of goods
• Value as set forth in the invoices such other information as may require (Sec. 411 CMTA)
Description of goods in the goods declaration for consumption
• Enough and specific in detail to enable the goods to be identified for Customs valuation,
statistical purposes and classification to the appropriate tariff heading and subheading in the
currency of the invoice and such other particulars, necessary for the proper assessment and
collection of duties and taxes.
Specific Description of goods CAO-8-2007/CMO-25-2007
• General Description – pertains to the generic name or general name of the product.
• Specific Description – pertains to the specific name of such generic description.
• Make/Brand – pertains to the brand name of the product.
• Model/Style – model number style, reference, and other reference.
• Capacity/Quality/Grade/Process – the capacity, output, other indication of size and
performance among other, or the description of quality grade specification of the product or
applicable standards
• Retail Packaging- this pertains to the details packaging or measure within the unit used.
Description for Motor Vehicle CMO-26-2014
• Make/Brand
• Series
• Body type
• Only if the motor vehicle is used indicate USED
• Only if the motor vehicle is model year difference from the year during which is enter the
year of the model
Note : 1) subject to 100% Physical Examination
2) May be Subject to seizure and forfeiture proceedings, if proven upon examination as
to concealed goods by declaring a generic description.
(the above is the consequences failure to declare specific description)
Assessment
• Process of determine the amount of duties and taxes and other charges due to an
imported and exported goods
• On importation and its customs broker initially made the assessment of duties and taxes
by classification and computation, thereof subject to adjustment and final determination by
customs officer upon filling of goods declaration
• A customs officer (COO V) usually render self-assessment if the enumerated information
in the goods declaration was found correctly and orderly.
• final fifteen (15) days after receipt of the notice of assessment by the importer or
consignee
• when the goods have been finally assessed and released, the assessment shall be
conclusive upon all parties three (3) years from the date of final payment of duties, or upon
completion of the post clearance audit.
Clearance
• refers to the completion of customs and other government formalities necessary to
allow goods to enter for consumption, warehousing, transit or transshipment, or to be exported
or placed under another customs procedure.
Requisite of clearance of goods
1. Lodgment of goods declaration (SAD)
2. Submission and acceptance of the SAD and supporting documents
3. Examination of goods is required
4. Verification and validation of applicable permits/clearances issued by government
agencies checking the goods declaration
5. Rendition of final assessment
6. Payment of duties and taxes
Release of goods
• refers to the action by the Bureau to permit goods undergoing clearance to be placed at
the disposal of the party concerned.
Release of goods after payment of duties and taxes
• Goods declared shall be released when duties and taxes and other lawful charges have
been paid or secured and all the pertinent laws, rules and regulations have been complied with.
• When the Bureau requires laboratory analysis of samples, detailed technical 'documents
or expert advice, it may release the goods before the results of such examination are known
after posting of sufficient security by the declarant.
Imported goods shall be released on the following conditions:
• Payment of lawful revenues and collect by the Bureau of Customs
• Presentation of required release order of documents
• Payment of charges or fees collectible by the PPA
Documentary requirements:
• SAD print out (front and Back page 2 copies)
• Temporary assessment notice prints out from e2m customs System lodged thru VASP
• Bill of lading/airway bill
• Commercial invoice
• Packing list
• Document processing time form
• Revised supplemental declaration on valuation
• Other documents required if applicable.
Process flow
1. Importer/customs broker- Prepares the documents, the importer through their CB
initially classify and compute the duties and taxes. Lodges the same to the e2m customs system
thru BOC accredited VASP then print out the SAD and proceed to the BOC through FED

2. EPU personnel - Log in to the GDVS using their own username and password, will check
the completeness of the documents submitted to him and then encode the import entry
number and assigned color to the GDVS
3. System - Randomly choose the available examiner and appraiser who will process the
entry
4. Examiner and appraiser - Log in individually to the GDVS daily with cut off 9AM. The
appraiser will assess the declared value and once done he will update the status of the entry
through GDVS. The examiner will also update the status of the entry through GDVS once he has
inspected the goods
5. Display monitor and Kiosk - Will deployed at the port premises for BOC stakeholders to
check and monitors the status and update their entries

Payment of Duties and taxes

• Once assessed, payment of duties and taxes is done through PASS 5
• A system wherein the duties, taxes and fees payable, both advance and final will be
transmitted to the AAB via a payment gateway through a secured communication channel and
collected by debit from designated bank account
Requirements under PASS5
• Importer must have a valid and existing CCN
• Debit accounts with AAB
• AAB reference number (BRN)
Release of Goods
• Once paid though PASS5, e2m system automatically sends release instruction through
OLRS to the Port operator/off dock CY-CFS/Airport transit Facility concerned with the release of
cargoes.

Yellow lane Shipment

1. Once duties and taxes were paid thru PASS5 with OLRS in place importer/Customs
Broker may release the goods subject to compliance with other import formalities
Red Lane Shipment
Once duties and taxes were paid thru PaSS5 with OLRS in plan e imported/Customs Broker may
now proceed to the designated areas for X-Ray inspections prior to release
Yellow/Red Lane (if Sea LCL/Break bulk and Air Shipments
1. Pay storage chargee due to Off dock CY-CF8/Airport Transit Facility
2. Proceed to Wharfinger's Office for final release of documents and goods

Informal Entry Process

Documents Required:
• Informal Import Declaration and entry (IIDE, CS Form 177)
• Permit to deliver imported goods (PDIG BC FORM 194 if by sea) or Gatepass (BC form
291 if by Air)
• Bill of lading or Airway Bill
• Commercial Invoice
• Packing List
• Other documents required.

Process Flow
1. Importer/Customs Broker - Prepare the documents, accomplishes the IIDE and
PDIG/Gatepass as appropriate then bring the fully accomplished documents
2. Chief, IED - Assign entry to designated section in IED
3. EPU-IED Staff - Record details of IIDE in the logbook, matches IIDE against electronic
manifest, check the completeness of attached documents and review IIDE
4. EPU- IED Chief - Reviews and approves if IIDE is processed in compliance with existing
rules and regulations
5. EPU- IED Staff - Indicate and assign entry number, stamp the entry number on the
supporting documents, segregates copies of IIDE for distribution to corresponding offices and
necessary date in the logbook and transfer with working copy to the section concern
6. Section Clerk - Receives the IIDE from EPU, records IIDE into logbook, and forward IIDE
to COO V
7. COO V - Assigns IIDE to COO III
8. COO III - Conducts physical examination of goods (if sea LCL/Air shipments), reflect
findings at the back of IIDE and stamp name and affix signature
9. COO V - Review findings of COO III and may approve or disapprove the same, same and
affix signature
10. Section Clerk, IED - Record details of IIDE in the logbook and forwards it to the
liquidation and Billing Division for pre-liquidation
11. LBD Assessor - Receives IIDE from IED records IIDE in the logbook, review computation
of duties and taxes, returns the same to IED
12. Assistant Chief, IED - Review IIDE and forward to chief, IED
13. Chief, IED - Review IIDE, affix signature allowing release of cargo
14. In house Bank - Accept the payment and issue a BOC official receipt
15. COO III - Be presented the BCOR given by importer, they shall log in to the E2M customs
system and shall confirms through appropriate menu in the e2m. Will retrieves the data
corresponding to the HBL of the particular informal entry
After that the COO III shall encode the following data corresponding to the said shipment:
1. consignee Name
2. Broker name
3. Registration Serial
4. Registration Number
5. Transit Shed Code
6. Reference Year
7. Declaration Office Code
8. Commodity Code
9. Total number of packages
10. Packaging Types
11. Total Gross Weight
In cases of consolidated informal entry where one entry is lodge for a maximum 10 HBL, each
HBL in the import declaration will have to be manually discharged/written off by the COO III.
The entry number of the consolidated informal Entry shall be repeated for every HBL included
the entry.
Existing Procedure (NAIA CMO 41-2008)
Steps 1-24 of procedure applicable for POM/MICP shall be observed;
1. Releasing Clerk, IED - Forward IIDE to Collection Division whether or not subject to
duties and taxes
2. Receiving Clerk - Collection Division receives IIED and forwards to Collecting Officer
3. Collecting Officer - Collect duties and taxes from importer/Broker, issues BCOE and
attaches Green Copy thereof to IIED and forward the IIED to OLRS Officer
4. OLRS Officer - Encodes details of IIED and the payment made in the system for matching
and gives the cargo clearance for release

Release of Goods
If Sea FCL:
• Proceed to Arrastre Operator for payment of Arrastre and Wharfage Fees
• Presentation of delivery order issued by shipping lines
• Booking of container to terminal Appointment Booking System
Release of Goods if Sea LCL and Air Shipments
1. Pay storage charges due to off dock CY-CFB/Airport transit Facility
2. Proceed to Wharfage office for final release of documents and goods.
3. For sea LCL, abstract is issued
4. Abstract- document the Broker presents to the wharfinger to the warehouse where
cargo is kept certifying that it has been release

THE SUPER GREEN LANE

Super Green Lane
• Facility created by the BOC to highly compliant importers to effectively release their
shipments in an expeditious manner in view of their goal for trade facilitation
Basic Criteria to be considered by the BOC in order that the importer may be accredited as an
SGL user
• Has not been subjected to disciplinary action or similar penalties
• Subject imports are not prohibited
• Has been transacting with the BOC for at least 1 year and falls within the top 1000
importers in terms of duties and taxes paid
Qualification for importers for SGL Facility
1. Accredited by the BOC as such in accordance with existing rules and regulations
2. Importer has been actively engaging in the importer business for at least 1 year at the
time of taking his/her application for SGL Accreditation
3. Importer is regular importing the same type of articles/goods
4. Importer of BOC registered user of remote lodgment facilities and holder of certificate of
registration for the purpose
5. Willing to go voluntary such as per CAO 5-2001
Shipments shall qualify for SGL Treatment only when:
1. In the list of importable
2. Freely importable commodities
3. Declare under consumption entries
4. Do not contain prohibited articles/goods

Accreditation of SGL users

⦿ MISTG-within first month every 1 year, generate the list of top 1000 importers in terms
of duties and taxes paid during previous years…Arranged from highest to lowest
⦿ MISTG- submit the list to the accreditation subcommittee, copy furnished the SGL
committee
⦿ The SGL committee choose the importers to be limited into SGL program, taking into SGL
Program
⦿ SGL committee shall act on the recommendation either moving in or by sending
invitation
Certificate of Accreditation
⦿ The CA shall remain valid until suspended, cancelled or revoked by the Commissioner of
Customs upon recommendation by the SGL Committee after due notice and hearing on any of
the ff . Grounds:
1. When accredited importers fail or refuse without justifiable reasons to submit the hard
copies of Import entries filed thru SGL facility
2. When SGL application or importation itself is may have seen fraud
3. Submission of fake documents during accreditation or importation process
4. Failure or refusal without justifiable cause to pay additional duties and taxes lawfully
demanded
5. When SGL user utilized the SGL facility to process and clear a shipment not included in
the list of importable commodities
6. Violations of any express or implied terms and condition of the accreditation
7. Failure or refusal without any valid ground to comply with any lawful order of directive
issued officially by the SGL Committee.
Post Release Verification/ Validation
a. OLRS Officer - Submit to the concerned EPU copies/print out of SAD filed, sign the SAD,
notarize and affixed the proper number/value of documentary Stamp together with the other
supporting documents

b. OLRS Officer - Shall process SAD in accordance with existing regulation and forward the
working copy and supporting documents too concerned ICS

Upon receipt of the working copy of SAD and supporting documents and ICS shall perform the ff:
1. Check the completeness of the entry documents using the data captured in the ACOS
2. Check the imported articles as against the approve list of importable commodities
3. Review the description, tariff classification unit value and any information declared in
the SAD vis a VI's the date provided in the amended
4. Log in daily any problem or issue encountered in the processing or review of SGL entries
under jurisdiction and submit monitoring report form to the SGL Committee
5. Compare number of SAD documents submitted with the number of electronically lodged
entries
6. If upon post verification by the ICS unit, deficiency in payment of duties and taxes are
establishes, the concerned ICS unit shall notify in writing the DC copy furnished the chair, SGL
Committee for issuance of a demand letter to the SGL use for collection of additional duties and
taxes.
Post Release Inspection
1. An SGL Shipment shall not be inspected/examined except when it is subject of a
derogatory intelligence information and/or as directed by the SGL Committee Chair, in which
case the inspection shall be covered by mission order.
2. The mission Order shall be issued by the Commissioner of Customs or by his duly
authorized representative and shall specify the basis issuance, the extent of the inspection be
done, the number of containers to be inspected if the shipment consist of several containers
3. The concerned ICS unit shall form a team that would undertake the inspection at the
importer’s premises and in accordance by Mission Order the SGL import shall extend full
cooperation and assistance to be inspecting team.
4. The ICS team leading shall monitor the conduct of inspection and shall require
inspecting team from the submission of and after mission report within 1 working day from the
completion of the mission.