Section 1141. Mode of Disposition.

– The goods subject to disposition may be donated to another

government agency or declared for official use of the Bureau, after approval of the Secretary of Finance,
or sold at a public auction within thirty (30) days after a ten (10)-day notice posted at a public place at
the port where the goods are located and published electronically or in a newspaper of general
circulation.

For purposes of donating the goods as above described, goods suitable for shelter or consisting of
foodstuffs, clothing materials or medicines may be donated to the DSWD.

- There are three (3) ways on how the Bureau disposition goods/cargoes. First, it can be donated to
another government agency. In cases the goods are suitable for shelter or consisting of foods, clothing
or medicines it can be donated to the Department of Social Welfare Development (DSWD). Second, it
can be declared for official use of the Bureau, with the approval of the Secretary of Finance. Lastly, it can
be subject for a public auction within thirty (30) days after a ten(10) day notice posted at public place at
the port where the goods are located and published electronically or in a newspaper of general
circulation.

Section 1142. Disqualification to Participate in Auction Sale. – No customs officer or employee, their
spouses and relatives within the fourth degree of consanguinity or affinity shall be allowed to bid
directly or indirectly, in any customs auction.

- According to this section, no customs officer or employee can participate in customs auction sale
including their spouses and relatives within the fourth degree of consanguinity.

Section 1143. Disposition of Proceeds. – The following expenses and obligations shall be paid from the
proceeds of the sale in the order provided:

(a) Customs duties, except in the case of forfeited goods;

(b) Taxes and other charges due the government;

(c) Government storage charges;

(d) Expenses for the appraisal, advertisement, and sale of auctioned goods;

(e) Arrastre and private storage charges and demurrage charges; and

(f) Freight, lighterage or general average, on the voyage of importation, of which due notice shall have
been given to the District Collector.

The Commissioner is authorized to determine the maximum charges to be recovered by private entities
concerned under subsections (e) and (f) of this section

- Section 1143. Disposition of Proceeds. This are the following expenses and obligation that needs to be
paid from the proceed of sale in order as stated from this section from subsection a to f. The
Commissioner have the authority to determine the maximum charges to be recovered by private
entities concerned under subsections (e) and (f).