CUSTOMS-1 (Principles of Customs Administration)

COURSE DESCRIPTION:

Introduction to customs administration with emphasis on the profile of the Bureau of

Customs, its organization, functions and jurisdiction as the main government agency
implementing customs laws in the Philippines.

CONTENT OUTLINE

INTRODUCTION TO CUSTOMS LAW

 Historical Background of Customs System in the Philippines

 Jurisdiction (National Territory vs Customs Territory) - Art. 1, Sec. 1 of the 1987
Constitution & Sec. 102 (q) CMTA
 Discussion on Smuggling and other Customs offenses and how they affect the economy.
 Evolution of Tariff and Customs Laws in the Philippines
 Introduction to the Customs Modernization and Tariff Act (Section 101 of RA 10863-
CMTA)
 Commonly Used Terms in Customs Adminitration ((Section 102 of RA 10863-CMTA)

Sec. 300 Customs Jurisdiction

Sec. 301 Customs Control Over Goods
Sec. 302 Enforcement of Port Regulation of the Bureau of Quarantine

Sec. 303 Control Over Premises Used for Customs Purposes

Sec. 304 Power of the President to Subject Premises to
Customs Jurisdiction
Sec. 305 Trespass or Obstruction of Customs Premises
Sec. 306 Special Surveillance for the Protection of Customs
Revenue and Prevention of Smuggling
Sec. 307 Temporary Storage of Goods

PROFILE OF THE BUREAU OF CUSTOMS

See BOC website

 Vision and Mission statements of the BOC

 Organizational Structure of the BOC
 Functions and Mandates of the BOC

GENERAL ADMINISTRATION (RA 10863 - Customs Modernization and Tariff Act)

Sec. 200 Chief Officials of the Bureau

Sec. 201 Powers and Functions of the Commissioner
Sec. 202 Functions of the Bureau
Sec. 203 Annual Report of the Commissioner
Sec. 204 Promulgation of Rules and Regulations
Sec. 205 Copies of Goods Declaration

CUSTOMS DISTRICTS AND PORTS OF ENTRY (RA 10863 - Customs Modernization and
Tariff Act)

Sec. 206 Customs Districts

Sec. 207 Ports of Entries
Sec. 208 Power of the President to Open and Close Any Port
Sec. 209 Assignment of Customs Officers and Employees to Other Duties
Sec. 210 Duties of the District Collector
Sec. 211 Temporary Succession of Deputy District Collector to Position of
Acting District Collector
Sec. 212 Records to be Kept by Customs Officers
Sec. 213 Reports of the District Collector to the Commissioner

EXERCISE OF POLICE AUTHORITY (RA 10863 - Customs Modernization and Tariff Act)

Sec. 214 Persons Exercising Police Authority

Sec. 215 Place Where Authority May be Exercised
Sec. 216 Exercise of Power of Seizure
Sec. 217 Duty of Officer to Disclose Official Character
Sec. 218 Authority to Require Assistance and Information
Sec. 219 Authority to Enter Properties
Sec. 220 Authority to Search Dwelling House
Sec. 221 Authority to Search Vessels or Aircrafts and Persons or Goods
Conveyed Therein
Sec. 222 Authority to Search Vehicles, Other Carriers, Persons and
Animals
Sec. 223 Authority to Search Persons Arriving From Foreign Countries

Sec. 224 Power to Inspect and Visit

GENERAL AND COMMON PROVISIONS (RA 10863 - Customs Modernization and Tariff Act)

Sec. 103 When Importation Begins and Deemed Terminated

Sec. 104 When Duty and Tax are Due on Imported Articles
Sec. 105 Effective Date of Rate of Import Duty
Sec. 106 Declarant
Sec. 107 Rights and Responsibilities of the Declarant
Sec. 108 Penalties for Errors in Goods Declaration
Sec. 109 Application of Information
Sec. 110 Relationship Between the Bureau and Third Parties
Sec. 111 Information of General Application
Sec. 112 Information of a Specific Nature
Sec. 113 Decision and Ruling
Sec 114 Right of Appeal, Forms and Ground

TYPES OF IMPORTATION (RA 10863 - Customs Modernization and Tariff Act)

Sec. 115 Treatment of Importation

Sec. 116 Free Importation and Exportation
Sec. 117 Regulated Importation and Exportation
Sec. 118 Prohibited Importation and Exportation
Sec. 119 Restricted Importation and Exportation

RELIEF CONSIGNMENT (RA 10863 - Customs Modernization and Tariff Act)

Sec. 120 Relief Consignment

Sec. 121 Duty and Tax Treatment

References:

- RA 10863 - Customs Modernization and Tariff Act

- Also see implementing rules and regulations available at the BOC website (Customs
Administrative Orders and Customs Memorandum Orders)
- Bureau of Customs Citizen’s Charter
- Recommended Books:

1. Principles and Remedies in the Customs Modernization and Tariff Act by: Atty
Joseph Romano, published by Central Books Supply, ISBN: 978-621-02-0155-0
2. Customs Modernization and Tariff Act 2019
by: Atty. Ferdinand Asejo Nague, published by Central Books Supply, ISBN: 978-
621-02-0688-3
 CUSTOMS - 2 (The Relationship of Customs to International Trade)

COURSE DESCRIPTION

Principles of importation and exportation of merchandise in compliance with the

Government policies, existing laws and implementing rules and regulations. It also
includes topics on the modes of payment and documentation between the importer and
exporter through.

CONTENT OUTLINE:

TRADE FACILITATION & BORDER CONTROL

- Definition of Terms
- Revenue Collection, Trade Facilitation and Border Protection
- The role of Customs in Trade Facilitation and Border Control
- ICT Projects and Systems of the BOC to facilitate trade, protect the borders and
enhance transparency.
- The E2M Customs System
- The National Single Window

GENERAL RULES OF IMPORTATION

- As provided under RA 10863 (CMTA)

GENERAL RULES OF EXPORTATION

- Principles of the Simplified Export Procedures under P.D. 930
- Re-alignment of functions of various government agencies on export control.

TYPES OF IMPORTATION & EXPORTATION

- List of freely Importable and Exportable Commodities

- List of Regulated Importable and Exportable commodities and Government regulatory
agencies
- List of Conditionally Prohibited commodities and Government regulatory agencies
- List of Absolutely Prohibited commodities and Government regulatory agencies

BASIC DOCUMENTS FOR INTERNATIONAL TRADE IN GOODS TRANSACTIONS

- Purchase Order
- Proforma Invoice
 - Commercial Invoice
- Packing List
- Forwarding Instruction / Shipper’s Letter of Instruction
- Ocean Bill of Lading
- Inland / Domestic Bill of Lading
- Airway Bill
- Certificate of Origin
- Import Permit for regulated and restricted products
- Sanitary and Phytosanitary Certificate (for Agricultural Products)
- Fumigation Certificate (for wooden packaging materials)
- Certificate of Chemical Analysis
- Material Safety Data Sheet for handling of hazardous products and substances
- Other documents for cross-border transactions

MODES OF PAYMENT FOR IMPORTS AND EXPORTS

- As provided under Central Bank Circular 1389 (as amended)
- Other modes of payment currently used in International Trade
- Discussions on how the payment transactions between importer and exporter are
executed.
- Different modes of payment and their mechanics as well as risks and obligations of each
party

UNIFORM CUSTOMS PRACTICE ON DOCUMENTARY CREDITS (UCP 600)

- Principles of the Letter of Credit
- Mechanics and bank transactions involving the shipping documents.

References:

- Customs Modernization and Tariff Act (RA 10863)

- Presidential Decree 930 (as amended)
- Existing Customs Administrative Orders and Memorandum Orders
- Uniform Customs Practice on Documentary Credits by ICC
- Central Bank Circular 1389 (as amended)
- Department Orders by respective government agencies on regulated and prohibited
import/export articles.
- Useful government websites