TARIFF
AND CUSTOMS LAWS OF THE PHILIPPINES
This page features the full text of
Republic Act No. 1937
Tariff
and Customs Code of the Philippines
AN
ACT TO REVISE AND CODIFY THE TARIFF AND CUSTOMS LAWS OF THE PHILIPPINES
...
...
REPUBLIC
ACT NO. 1937
.
AN
ACT TO REVISE AND CODIFY THE TARIFF
AND CUSTOMS LAWS OF THE PHILIPPINES
BOOK
II
CUSTOMS
LAW
TITLE
IV
ASCERTAINMENT,
COLLECTION AND RECOVERY OF IMPORT DUTY
PART
1
IMPORTATION
IN GENERAL
Section
1201. Articles to Be Imported
Only Through Customhouse. — All articles imported into the Philippines,
whether subject to duty or not, shall be entered through a customhouse
at a port of entry.
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Sec.
1202. When Importation Begins
and Deemed Terminated. — Importation begins when the carrying vessel or
aircraft enters the jurisdiction of the Philippines with intention to
unlade
therein. Importation is deemed terminated upon payment of the duties,
taxes
and other charges due upon the articles, or secured to be paid, at a
port
of entry and the legal permit for withdrawal shall have been granted,
or
in case said articles are free of duties, taxes and other charges,
until
they have legally left the jurisdiction of the customs.
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Sec.
1203. Owner of Imported Articles.
— All articles imported into the Philippines shall be held to be the
property
of the person to whom the same are consigned; and the holder of a bill
of lading duly indorsed by the consignee therein named, or, if
consigned
to order, by the consignor, shall be deemed the consignee thereof. The
underwriters of abandoned articles and the salvors of articles saved
from
a wreck at sea, along a coast or in any area of the Philippine may be
regarded
as the consignees.
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Sec.
1204. Liability of Importer for
Duties. — Unless relieved by laws or regulations, the liability for
duties,
taxes, fees and other charges attaching on importation constitutes a
personal
debt due from the importer to the government which can be discharged
only
by payment in full of all duties, taxes, fees and other charges legally
accruing. It also constitutes a lien upon the articles imported which
may
be enforced while such articles are in custody or subject to the
control
of the government.
Sec.
1205. Importations by the Government.
— Except as otherwise specifically provided, all importations by the
government
for its own use or that of its subordinate branches on
instrumentalities,
or corporations, agencies or instrumentalities owned or controlled by
the
government, shall be subject to the duties, taxes, fees and other
charges
provided for in this Code: Provided, however, That upon
certification
of the head of the department or political subdivision concerned, with
the approval of the Auditor General, that the imported article is
actually
being used by the government or any of its political subdivision
concerned,
the amount of duty, tax, fee or charge shall be refunded to the
government
or the political subdivision which paid it.
Sec.
1206. Jurisdiction of Collector
Over Importation of Articles. — The Collector shall cause all articles
entering the jurisdiction of his district and destined for importation
through his port to be entered at the customhouse, shall cause all such
articles to be appraised and classified, and shall assess and collect
the
duties, taxes and other charges thereon, and shall hold possession of
all
imported articles upon which duties, taxes, and other charges have not
been paid or secured to be paid, disposing of the same according to
law.
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Sec.
1207. Jurisdiction of Collector
Over Articles of Prohibited Importation. — Where articles are of
prohibited
importation or subject to importation only upon conditions prescribed
by
law, it shall be the duty of the Collector to exercise such
jurisdiction
in respect thereto as will prevent importation or otherwise secure
compliance
with all legal requirements.
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Sec.
1208. Imported Articles to be
Received in General Order Stores. — Unless otherwise directed by the
Collector,
all articles except bulk cargo shall be received in general order
stores.
Sec.
1209. Limit of Period for Discharge.
— The period within which discharge should be effected is as
follows:
Vessels
of less than three hundred tons, eight working days after entry;
Vessels
of three hundred tons and less than eight hundred tons, twelve working
days after entry;
Vessels
of eight hundred tons and upward, fifteen working days after
entry.
The
working days of a vessel shall be computed by excluding the date of
entry,
legal holidays and stormy days when in the opinion of the Collector,
discharge
of cargo is impracticable.
Sec.
1210. Disposition of Imported
Articles Remaining on Vessel After Time for Unlading. — Imported
articles
remaining on board any vessel after the expiration of the said period
for
discharge, and not reported for transshipment to another port, may be
unladen
by the customs authorities and stored at the vessel's expense.
Articles
so stored may be claimed and entered at any time within fifteen days
after
discharge or such longer period not beyond thirty days as the Collector
shall approve. If not entered it shall be sold at public auction at the
next ensuing regular sale, though at any time prior to sale it may be
entered
for consumption or warehouse, and be withdrawn upon payment of duties,
taxes and other charges, and expenses.
Sec.
1211. Handling of Articles on
Which Duty Has Not Been Paid. — Except when done under customs
supervision,
all unlading or transshipment of the cargo of vessels from foreign
ports,
which do not discharge at a wharf, must be by bonded lighters; and
likewise,
on land imported goods on which duty has not been paid shall be carried
about and handled by bonded draymen or cartmen only.
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Sec.
1212. Government Plan for Handling
Imported Articles. — Government plant for handling articles on or
around
the customs premises shall be maintained at the port of Manila and at
any
port of entry prescribed by the Commissioner, when the proper conduct
of
the customs business shall so require.
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Where
such plants are established, it shall be their function to receive,
land
and deliver imported articles and to handle the same, so far as may be
necessary, while on customs premises. Such plants shall also handle
articles
for export while on the customs premises, and, in the discretion of the
Commissioner, may deliver article abroad vessels for export.
Sec.
1213. Receiving, Handling, Custody
and Delivery of Articles. — The Bureau of Customs shall have exclusive
supervision and control over the receiving, handling, custody and
delivery
of articles on the wharves and piers at all ports of entry and in the
exercise
of its functions it is hereby authorized to acquire, take over, operate
and superintend such plants and facilities as may be necessary for the
receiving, handling, custody and delivery of articles, and the
convenience
and comfort of passengers and the handling of baggage, as well as to
acquire
fire protection equipment for use in the piers: Provided, That
whenever
in his judgment the receiving, handling, custody and delivery of
articles
can be carried on by private parties with greater efficiency, the
Commissioner
may, after public bidding and subject to the approval of the department
head contract with any private party for the service of receiving,
handling,
custody and delivery of articles, and in such event, the contract may
include
the sale or lease of government-owned equipment and facilities used in
such service.
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PART
2
ENTRY
AT CUSTOMHOUSE.
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Sec.
1301. Persons Authorized to Make
Import Entry. — Imported articles must be entered in the customhouse at
the port of entry within fifteen days from date of discharge of the
last
package from the vessel either (a) by the importer, being holder of the
bill of lading, (b) by any other holder of the bill of lading in due
course,
(c) by a customs broker acting under authority from a holder of the
bill,
or (d) by a person duly empowered to act as agent or attorney-in-fact
for
such holder: Provided, That the Collector may grant an extension of not
more than fifteen days.
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Sec.
1302. Import Entries. — All imported
articles, except importation admitted free of duty under subsection
"o",
section one hundred and five of this Code, shall be subject to a formal
or informal entry. Articles of a commercial nature intended for sale,
barter
or hire, the dutiable value of which is five hundred pesos or less, and
personal and household effects or articles, regardless of value,
imported
in passenger's baggage mail, or otherwise, for personal use, may be
cleared
on an informal entry whenever duty, tax or other charges are
collectible.
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The
Collector may, when he deems it necessary for the protection of the
revenue,
require a formal entry regardless of value.
A
formal entry may be for immediate consumption, or under bond for:
a. Placing
the articles in warehouse;
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b. Constructive
warehousing and immediate transportation to other ports of the
Philippines
without appraisement; or
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c. Constructive
warehousing and immediate exportation.
Import
entries under bond shall be subject to the provisions of Title V, Book
II of this Code.
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Sec.
1303. Entry of Articles in Part
for Consumption and in Part for Warehousing. — Import entries of
articles
covered by one bill of lading may be made simultaneously for both
consumption
and warehouse. Where an intent to export the articles is shown by the
bill
of lading and invoice, the whole or a part of a bill of lading (not
less
than one package may be entered for warehouse and immediate
exportation.
Articles received at any port from another port of the Philippines on
any
entry for immediate transportation without appraisal may be entered at
the port of delivery either for consumption or warehouse.
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Sec.
1304. Declaration of the Import
Entry. — Except in case of informal entry, no entry of imported article
shall be effected until there shall have been submitted to the
Collector
a written declaration, in such form as shall be prescribed by the
Commissioner,
containing statements of substance as follows:
a. That
the entry delivered to the Collector contains a full and true statement
of all the articles which are the subject of the entry.
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b. That
the invoice and entry contain a just and faithful account of the actual
cost of said articles, including and specifying the value of all
containers
or coverings, and that nothing has been omitted therefrom or concealed
whereby the Government of the Republic of the Philippines might be
defrauded
of any part of the duties lawfully due on the articles.
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c. That,
to the best of declarant's information and belief, the invoice and all
bills of lading relating to the articles are the only ones in existence
relating to the importation in question and that they are in the state
in which they were actually received by him; and, furthermore,
d. That,
to the best of the declarant's information and belief, the entry,
invoice
and bill of lading, and the declaration thereon are in all respects
genuine
and true, and were made by the person by whom the same purport to have
been made, respectively.
Sec.
1305. By Whom to be Signed. —
The declaration shall be signed by the importer, consignee or holder of
the bill, by or for whom the entry is effected, if such person is an
individual,
or in case of a corporation, firm or association, by its manager, or by
a licensed customs broker duly authorized to act for either of them.
When
it is impracticable to obtain a declaration thus signed, the Collector
may allow it to be signed by some person in interest having first and
best
knowledge of the facts. A Collector may also, in his discretion,
require
that the declaration shall be sworn to by the person signing the
same.
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Sec.
1306. Form and Contents of Import
Entry. — Import entries shall be in the required number of copies in
such
form as prescribed by regulations. They shall be signed by the person
making
the entry of the articles, and shall contain the names of the importing
vessel and master, port of departure and date of arrival, the number
and
marks of packages, or the quantity, if in bulk, and the nature of the
articles
contained therein, and its value as set forth in a proper invoice to be
presented in duplicate with the entry.
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Sec.
1307. Description of Articles.
— The description of the articles in the import entry shall be in
customary
terms or communal designation, or, if feasible and practical, in tariff
terms, and in the currency of the invoice; and the values of the
several
classes of articles shall be separately declared according to their
respective
rates of duty, and the totals of each class duly shown.
Sec.
1308. Invoice — Contents of— Invoice of articles imported into the Philippines shall set forth
—
a. The place where, the date
when, and the person by whom and the person to whom the articles are
sold
or agreed to be sold, or if to be imported otherwise than in pursuance
of a purchase, the place from which shipped, the date when, and the
person
to whom and the person by whom they are shipped;
b. The
port of entry to which the articles are destined;
c. A
detailed description of the articles in customary terms or commercial
designation,
including the grade or quality, numbers, marks or symbols under which
sold
by the seller or manufacturer, together with the marks and numbers of
the
packages in which the articles are packed;
d. The
quantities in the weights and measures of the country or place from
which
the articles are shipped, or in the weights and measures of the
Philippines;
e. The
purchase price of each item in the currency of the purchase and in the
unit of the quantity in which the articles were bought and sold in the
place or country of exportation, if the articles are shipped in
pursuance
of a purchase or an agreement to purchase;
f. The
kind of currency; whether gold, silver or paper;
g. If
the articles are shipped otherwise than in pursuance of a purchase or
an
agreement to purchase, the value for each item in the unit of quantity
in which the articles are usually bought and sold, and in the currency
in which the transactions are usually made, or, in the absence of such
value, the price in such currency which the manufacturer, seller,
shipper
or owner would have received, or was willing to receive, for such
articles
if sold in the ordinary course of trade and in the usual wholesale
quantities
in the country of exportation;
h. All
charges upon the articles itemized by name and amount when known to the
seller or shipper; or all charges by name (e.g., commission, insurance,
freight, cases, containers, coverings and cost of packing) included in
invoice prices when the amounts for such charges are unknown to the
seller
or shipper;
i. All
discounts, rebates, drawbacks and bounties separately itemized, allowed
upon the exportation of the articles, all internal and excise taxes
applicable
to the home market;
j. The
current price at which same, like or similar article is offered for
sale
for exportation to the Philippines, on the date the invoice is prepared
or the date of exportation; and
k. Any
other facts deemed necessary to a proper examination, appraisement and
classification of the articles which the Commissioner may require.
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Sec.
1309. Certification of Invoice.
— a. Consular
Certification Required. — Invoice required by the preceding section
shall,
at or before the shipment of the articles or as soon thereafter as
conditions
will permit, be produced for certification to the consular officer of
the
Philippines of the consular district in which the articles were
manufactured
or purchased, or from which they are shipped, as the case may be:
Provided,
That in the absence of a Philippine consul in the country of
exportation,
such invoice may be certified by the consul of any friendly country in
the country of exportation, or by any responsible official of the
country
of exportation.
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b. Declaration.
— Every invoice prescribed above shall contain a declaration signed by
the purchaser, manufacturer, seller, owner or agent setting forth that
the invoice is in all respects correct and true and was made at the
place
whence the articles are exported to the Philippines; that it contains,
if the articles were obtained by purchase or an agreement to purchase,
a true and full statement of the date when, the place where, the person
from whom the same were purchased and the purchase price and unit of
quantity
thereof, and of all charges thereon; and that no discounts, bounties or
drawbacks are contained in the invoice except such as have been allowed
thereon; and when obtained in any other manner than by purchase or an
agreement
to purchase, the market value on wholesale price thereof at the time of
exportation to the Philippines in the principal market of the country
from
which exported; that such market value is the price in the unit of
quantity
at which the articles described in the invoice are freely offered for
sale
to all purchasers in said market for exportation to the Philippines,
and
that it is the price which the manufacturer, seller, owner or agent
making
the declaration would have received and was willing to receive for such
articles when sold in the ordinary course of trade in the usual
wholesale
quantities, and that it included all charges thereon; that the number,
weight, measurement or quantity stated is correct, and that no invoice
of the articles described different from the invoice so produced has
been
or will be furnished to anyone.
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If
the articles were purchased, or shipped otherwise than in pursuance of
a purchase or an agreement to purchase, the declaration shall also
contain
a statement that the amount in the unit of quantity shown is that which
was paid, or the price in the unit of quantity that the shipper would
have
received, or was willing to receive, for such articles, and that the
currency
stated in such invoice is the currency of the purchase, or in which the
transaction is usually made.
c. Making
and Signing. — The invoice to be certified in accordance with the
provisions
of this section shall be made out in five copies and signed by the
manufacturer
or seller if the articles have been purchase, or by the manufacturer,
shipper
or owner thereof if the same have been procured or obtained otherwise
than
by purchase, or by the duly authorized agent of such manufacturer,
seller,
shipper or owner.
d. Purchases
in Different Consular Districts. — When articles have been purchased in
different consular districts for shipment to the Philippines and are
assembled
for shipment and embraced in a single invoice which is produced for
certification
under the provisions of this section, there shall be attached to the
consular
invoice the original bills or invoices certified by the manufacturer or
seller and received by the shipper showing the prices paid or to be
paid
for such articles. The consular officer to whom the invoice is so
produced
for certification may require that any such original bill or invoice be
certified by the consular officer for the district in which the
articles
were purchased.
e. Disposition.
— The original and the quintuplicate of the invoice shall be delivered
to the exporter, the former to be forwarded to the consignee for use in
making entry of the articles. The duplicate shall be filed in the
office
of the consular officer by whom the invoice was certified there to be
kept
until the Secretary of Foreign Affairs authorizes its destruction. The
triplicate shall be promptly transmitted by the consular officer to the
Collector of the port of entry named in the invoice, and the
quadruplicate
to the Tariff Commission, through the Department of Foreign
Affairs.
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Sec.
1310. Invoice to Accompany Every
Importation over P500 in Export Value. — Except in case of personal and
household effects accompanying a passenger as baggage, or arriving
within
a reasonable time which in no case shall exceed ninety days before or
after
the owner's return, or in case of other articles brought in for
personal
use, no importation of articles exceeding five hundred pesos in export
value shall be admitted to entry without the production of a duly
certified
invoice of the kind hereinabove described, or the filing of an
affidavit
made by the owner, importer or consignee before the Collector, showing
why it is not possible to produce such invoice, together with a bond,
conditioned
upon the production of such invoice within a reasonable time, in an
amount
prescribed by law, rules or regulations. In the absence of such
invoice,
no entry shall be made based on the aforesaid affidavit unless the same
be accompanied by a commercial invoice signed by the manufacturer or
seller
or a statement in the form of an invoice showing the purchase price of
such articles in the unit of quantity and currency of the purchase, if
same were purchased, or if obtained otherwise than by purchase, the
market
value or wholesale price thereof at the time of exportation to the
Philippines
at which sold or offered for sale in the principal markets of the
country
from whence imported for export to the Philippines, and in the currency
and unit of quantity in which the transaction is usually made. This
statement
shall be verified by the oath of the owner, importer, consignee or
agent
desiring to make the entry, taken before the Collector and it shall be
lawful for that official to examine the deponent under oath regarding
the
source of his knowledge, information or belief, concerning any matter
contained
in his affidavit, and to require him to produce any correspondence,
document
or statement of account in his possession or under his control, which
may
assist the customs authorities in ascertaining the value of the
importation
or of any part thereof; and in the event of his failure to produce such
correspondence, document or statement of account when so required, such
owner, importer, consignee or agent shall thereafter be barred from
producing
such correspondence, document or statement for the purpose of avoiding
the imposition of additional duty, penalty or forfeiture incurred under
this Code or any other Act in force in the Philippines unless it is
shown
to the satisfaction of the Collector that it was not in his power to
produce
the same when so demanded; but no articles shall be admitted to entry
under
the provisions of this section unless the Collector shall be satisfied
that the failure to produce the required invoice is due to causes
beyond
the control of the owner, importer, consignee or agent: Provided, That
whenever it is shown to the satisfaction of the Collector that it is
impossible
to produce the consular invoice required by this section, the entry of
the articles may be effected upon the filing of a commercial or pro
forma invoice and the payment of a surcharge provided by section
twenty-five
hundred and two of this Code.
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Sec.
1311. Fraudulent Invoice Report.
— Officers of the Philippine foreign service having knowledge or
information
of any case or practice by which a person obtaining verification of an
invoice defrauds or may defraud the revenue of the Philippines shall
report
the facts to the Commissioner, through the Secretary of Foreign Affairs.
Sec.
1312. Bond for Subsequent Production
of Invoice. — When it is impossible to produce the consular invoice at
the time entry is made, the Collector may accept a commercial or pro
forma
invoice and require a bond to be given for the subsequent production of
the consular invoice. In the case of articles dutiable ad valorem the
bond
shall be in an amount of not less than fifty per centum of the
estimated
duties, taxes and other charges upon the importation: Provided, That in
no case shall the bond be less than two hundred pesos.
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Sec.
1313. Information Furnished Prior
to Entry. — a. As to Classification. — When an article imported or
intended
to be imported is not specifically mentioned in this Code, the
interested
party, importer or foreign exporter may submit to the Tariff Commission
a sample together with a full description of its component materials
and
uses, and request it in writing to indicate the heading under which the
article is or shall be dutiable, and the Tariff Commission shall comply
with such request if it is satisfied that the application is made in
good
faith, in which case classification of the article in question, upon
the
particular importation involved, shall be made according to the heading
indicated by the Tariff Commission.
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b. As
to Value. — Upon written application of the consignee or his agent, the
Collector shall furnish any importer the latest information in his
possession
as to the value of the articles to be entered at his port, after
arrival
or upon satisfactory evidence that they have been exported and are en
route
to the Philippines: Provided, that the information shall be
given
only if the Collector is satisfied after questioning the importer and
examining
all pertinent papers presented to him, such as invoices, contracts of
sale
or purchase, and orders, that the importer is acting in good faith and
is unable to obtain proper information as to the value of the articles
on the date of exportation due to unusual conditions: And Provided,
further, That the information so given is in no sense an appraisal
or binding upon the Collector's action on appraisal.
Sec.
1314. Forwarding of Cargo and
Remains of Wrecked Vessel or Aircraft. — When vessels or aircrafts are
wrecked within the Philippines, application must be made to the
Commissioner
by the original owners or consignees of the cargo, or by the
underwriters,
in case of abandonment to them, for permission to forward the articles
saved from the wreck to the ports of destination, in other conveyance,
without entry at the customhouse in the district in which the article
was
cast ashore or unlade. On receipt of such permission, the articles may
be so forwarded with particular manifests thereof, duly certified by
the
customs official in charge of the articles.
If
the owner of the vessel or aircraft wishes to export the remains of the
wreck, he may be permitted to do so upon proper examination and
inspection.
The
remains of a wrecked vessel shall be considered to be not only the hull
and rigging of the same but also all sea stores and articles of
equipment,
such as sails, ropes, chains, anchors and so forth.
Sec.
1315. Derelicts and Articles
from Abandoned Wrecks. — Derelicts and all articles picked at sea or
recovered
from abandoned wrecks, shall be taken possession of in the port or
district
where they shall first arrive, and be retained in the custody of the
Collector,
and if not claimed and entered, as the case may be, by the owner,
underwriter
or salvor, shall be dealt with as unclaimed property.
When
such articles are brought into port by lighters or other craft, each of
such vessel shall make entry by manifest of her cargo.
If,
in case of wreck there be no customhouse at the point where the vessel
or aircraft is wrecked, the coastguard of customs official nearest the
scene of the wreck shall render all possible aid in saving the crew and
cargo of the vessel or aircraft, taking charge of the articles saved
and
giving immediate notice to the Collector of the nearest
customhouse.
In
order to prevent any attempt to defraud the revenue the Collector shall
be represented at the salvage of the cargo by customs officials
detailed
for that purpose, who shall examine and countersign the inventory made
of such cargo and receive a copy of the same.
Derelicts
and articles salvaged from foreign vessels or aircrafts picked up at
sea,
or taken from wreck is prima facie dutiable and may be entered for
consumption
or warehousing. If claimed to be of Philippine production, and
consequently
free, proof must be adduced as in ordinary cases of reimportation of
articles.
Foreign articles landed from a vessel or aircraft in distress is
dutiable
if sold or disposed of in the Philippines.
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Before
any article which has been taken from a recent wreck shall be admitted
to entry, the same shall be appraised, and the owner or importer shall
have the same right to appeal as in ordinary importation.
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No
part of a Philippine vessel or aircraft or her equipment, wrecked
either
in Philippine or foreign waters, shall be subject to duty.
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PART
3
EXAMINATION,
CLASSIFICATION AND APPRAISAL OF IMPORTED ARTICLES
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Sec.
1401. Designation of Packages
To be Examined. — Unless the Collector is of the opinion that the
examination
of a less or greater proportion of packages will amply protect the
revenues,
there shall be designated for examination and appraisal, at least one
package
of every invoice, and at least one package of every ten packages of
articles
imported: Provided, That nothing in this section shall preclude the
examiner
from examining additional or all the packages when he deems it
necessary
to protect the government revenues and public interest.
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Sec.
1402. Ascertainment of Weight
and Quantity. — Where articles dutiable by weight, and not otherwise
specially
provided for, are customarily contained in packing, packages, or
receptacles
of uniform or similar character, it shall be the duty of the
Commissioner,
from time to time, to ascertain by tests the weight or quantity of such
articles, and the weight of the packing, packages or receptacles
thereof,
respectively, in which the same are customarily imported, and upon such
ascertainment, to prescribe rules for estimating the dutiable weight or
quantity thereof, and thereafter such articles, imported in such
customarily
packing, packages or receptacles shall be entered, and the duties
thereon
levied and collected, upon the bases of such estimated dutiable weight
or quantity: Provided, That if the importer, consignee or
agent
shall be dissatisfied with such estimated dutiable weight or quantity,
and shall file with the Collector prior to the delivery of the packages
designated for examination a written specification of his objections
thereto,
or if the Collector shall have reason to doubt the exactness of the
prescribed
weight or quantity in any instance, it shall be his duty to cause such
weights or quantities to be ascertained.
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Sec.
1403. Return of Examining Official.
— The examining official shall compare the packages designated for
examination
and their contents with the invoice and shall make return of the
description
of the articles covered thereby in such a manner as to indicate whether
the articles have been truly and correctly measured and declared and
not
imported contrary to law, whether or not the quantities are correct,
and,
in case of articles dutiable ad valorem, whether the prices indicated
show
the correct value of the articles. Examining officials shall submit
samples
to the laboratory for analysis when feasible to do so and when such
analysis
is necessary to the proper classification, appraisal and/or admission
into
the Philippines of imported articles.
Sec.
1404. Duties of Appraisers. —
Appraisers shall, under the supervision of the Collector, appraise the
articles in the unit of quantity in which they are usually bought and
sold,
and determine the classification of all such articles of whatever
description,
whether dutiable or free, which may be presented to them in proper
form.
Appraisers
shall be responsible to the Collector for the correct appraisal of all
such articles. They shall see to it that the amounts, classes and
values
returned by them are in all respects accurate and correct pursuant to
the
provisions of this Code, and that the rules and instructions of the
Commissioner
in respect thereto have been correctly applied and followed.
Sec.
1405. Proceedings and Report
of Appraisers. — Appraisers, shall by all reasonable ways and means,
ascertain,
estimate and determine the value or price of the articles as required
by
law, any invoice or affidavit thereto or statement of cost, or of cost
of production to the contrary notwithstanding, and after revising and
correcting
the reports of the examine as they may judge proper, shall report in
writing
on the face of the entry the value so determined, irrespective of
whether
such value is equal, higher or lower than the invoice and/or entered
value
of the articles.
Appraisers
shall describe all articles on the face of the entry in tariff and such
terms as will enable the Collector to pass upon the appraisal and
classification
of the same, which appraisal and classification shall be subject to his
approval or modification, and shall note thereon the measurements and
quantities,
and any disagreement with the declaration.
Sec.
1406. Appraisers' Samples. —
Appraisers shall see that representative and sufficient samples of all
kinds of articles which may be readily sampled are taken under proper
receipt
and retained for official purposes; but samples of articles identical
in
quality, material and values shall not be retained, if their return is
desired, longer than may be required for use in contested cases.
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The
quantity and value of the samples taken shall be noted on the face of
the
entry. Such samples shall be duly labeled as will definitely identify
them
with the importation for which they are taken.
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Sec.
1407. Readjustment of Appraisal,
Classification or Return. — Such appraisal, classification or return as
finally passed upon and approved or modified by the Collector shall not
be altered or modified in any manner, except:
a. Within
one year after payment of the duties, upon statement of error in
conformity
with section seventeen hundred and seven hereof, approved by the
Collector.
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b. Within
fifteen days after such payment, upon request for reappraisal and/or
reclassification
addressed to the Commissioner by the Collector, if the appraisal and/or
classification is deemed to be low.
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c. Upon
request for reappraisal and/or reclassification, in the form of a
timely
protest addressed to the Collector by the interested party if the
latter
should be dissatisfied with the appraisal or return.
Sec.
1408. Assessment of Duty on Less
Than Entered Value. — Duty shall not be assessed in any case upon an
amount
less than the entered value, unless by direction of the Commissioner in
cases in which the importer certifies at the time of entry that the
entered
value is higher than the market value and that the articles are so
entered
in order to meet increases made by the appraised on similar cases then
pending reappraisement; and the lower assessment shall be allowed only
when the importer's contention is sustained by final decision, and
shall
appear that such action of the importer was taken in good faith after
due
diligence and inquiry on his part.
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Sec.
1409. Employment and Compensation
of Persons to Assist in Appraisal or Classification of Articles. — When
necessary, the Collector may request two disinterested persons versed
in
the matter to assist the appraiser in appraising or ascertaining the
value
of any article. Persons so employed shall be paid compensation in an
amount,
to be determined by the Commissioner, not exceeding ten pesos for each
day of such service.
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PART
4
DELIVERY
OF ARTICLES
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Sec.
1501. Delivery of Articles to
Holder of Bill of Lading. — A Collector who makes a delivery of a
shipment,
upon the surrender of the bill of lading, to a person who by the terms
thereof appears to be the consignee or lawful holder of the bill shall
not be liable on account of any defect in the bill or irregularity in
its
negotiation, unless he has notice of the same.
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Sec.
1502. Delivery of Articles Without
Production of Bill of Lading. — No Collector shall deliver imported
articles
to any person without the surrender by such person of the bill of
lading
covering said article, except on written order of the carrier or agent
of the importing vessel or aircraft, in which case neither the
Government
nor the Collector shall be held liable for any damages arising from
wrongful
delivery of the articles: Provided, however, That where
delivery
of articles is made against such written order of the carrier or agent
of the importing vessel or aircraft, the Collector may, for customs
purposes,
require the production of an exact copy of the bill of lading
therefor.
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Sec.
1503. Bond Upon Delivery of Unexamined
Packages. — To effect immediate delivery of packages not ordered for
examination,
the Collector may accept a bond in such sum and with such conditions as
shall be sufficient to safeguard the revenue.
If
such security is not supplied, all the packages shall be held until the
return is made and duties, taxes and other charges paid.
Sec.
1504. Delivery Upon Order of
Importer. — An importer of record may authorize delivery to another
person
by writing upon the face of the warehouse withdrawal entry his order to
that effect. Such authority to deliver the article under bond shall not
relieve the importer and his sureties from liability for the payment of
the duties, taxes and other charges due on the said article unless the
person to whom delivery was authorized to be made assumes such
liability
by the filing of a new warehousing bond.
Sec.
1505.Withholding Delivery Pending
Satisfaction of Lien. — When the Collector is duly notified in writing
of a lien for freight, lighterage or general average upon any imported
articles in his custody, he shall withhold the delivery of the same
until
he is satisfied that the claim has been paid or secured.
In
case of a disagreement as to the amount due between the party filing
the
lien and the importer regarding the amount of the freight and
lighterage
based upon the quantity or weights of the articles imported, the
Collector
may deliver the articles upon payment of the freight and lighterage due
on the quantity or weight actually landed as shown by the return of the
proper official or by other means to his satisfaction.
Sec.
1506. Customs Expenses Constituting
Charge on Articles. — All expenses incurred by the customs service for
the handling or storage of articles and other necessary operations in
connection
therewith, or incident to its seizure, shall be charged against such
articles,
and shall constitute a lien upon it.
Sec.
1507. Fine As Charge on Articles.
— No article which is liable for any fine or surcharge imposed under
the
tariff and customs laws shall be delivered until the same shall have
been
paid or secured.
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PART
5
LIQUIDATION
OF DUTIES
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Sec.
1601. Liquidation and Record
of Entries. — If the Collector shall approve the returns of the
appraiser
and the report of the weights, gauge or quantity, the liquidation shall
be made on the face of the entry showing the particulars thereof,
initiated
by the liquidating clerk, approved by the chief liquidator, and
recorded
in the record of liquidations.
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A
daily record of all entries liquidated shall be posted in the public
corridor
of the customhouse, stating the name of the vessel or aircraft, the
port
from which she arrived, the date of her arrival, the name of the
importer,
and the serial number and date of the entry. A daily record must also
be
kept by the Collector of all additional duties, taxes and other charges
found upon liquidation, and notice shall promptly be sent to the
interested
parties.
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Sec.
1602. Tentative Liquidation.
— If to determine the exact amount due under the law in whole or in
part
some future action is required, the liquidation shall be deemed to be
tentative
as to the item or items affected and shall to that extent be subject to
future and final readjustment and settlement. The entry in such case
shall
be stamped "Tentative liquidation".
Sec.
1603. Finality of Liquidation.
— When articles have been entered and passed free of duty or final
adjustment
of duties made, with subsequent delivery, such entry and passage free
of
duty or settlement of duties will, after the expiration of one year,
from
the date of the final payment of duties, in the absence of fraud or
protest,
be final and conclusive upon all parties, unless the liquidation of the
import entry was merely tentative.
Sec.
1604. Treatment of Fractions
in the Liquidation. — In determining the total amount of duties, taxes,
surcharges, wharfage and/or other charges to be paid on entries, a
fraction
of a peso less than fifty centavos shall be disregarded, and a fraction
of a peso amounting to fifty centavos or more shall be considered as
one
peso. In case of overpayment or underpayment of duties, taxes,
surcharges,
wharfage and/or other charges paid on entries, where the amount
involved
is less than five pesos, no refund or collection shall be made.
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PART
6
ABATEMENTS
AND REFUNDS
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Sec.
1701. Abatement for Damage Incurred
During Voyage. — Except as herein specially provided, no abatement of
duties
shall be made on account of damage incurred or deterioration suffered
during
the voyage of importation; and duties will be assessed on the actual
quantity
imported, as shown by the return of weighers, gaugers, measures,
examiners
or appraisers, as the case may be.
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Sec.
1702. Abatement or Refund of
Duty on Missing Package. — When any package or packages appearing on
the
manifest or bill of lading are missing, a remission or refund of the
duty
thereon shall be made if it is shown by proof satisfactory to the
Collector
that the package or packages in question have not been imported into
the
Philippines.
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Sec.
1703. Abatement or Refund for
Deficiency in Contents of Package.
— If, upon opening any package, a deficiency or absence of any article,
or of part of the contents thereof, as called for by the invoice shall
be found to exist, such deficiency shall be certified to the Collector
by the appraiser; and upon the production of proof satisfactory to the
Collector showing that the shortage occurred before the arrival of the
article in the Philippines, the proper abatement or refund of the duty
shall be made.
Sec.
1704. Abatement or Refund of
Duties on Articles Lost or Destroyed after Arrival. — A Collector may
abate
or refund the amount of duties accruing or paid, and may likewise make
a corresponding allowance or credit on the entry bond, or other
document,
upon satisfactory proof of the injury, destruction, or loss by theft,
fire
or other causes of any article as follows:
a. While
within the limits of any port of entry prior to unlading under customs
supervision.
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b. While
remaining in customs custody after unlading.
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c. While
in transit under bond from the port of entry to any port in the
Philippines.
d. While
released under bond to export, except in case of loss by theft.
Sec.
1705. Abatement of Duty on Dead
or Injured Animals. — Where it is satisfactorily shown to the Collector
that an animal which is the subject of importation dies or suffers
injury
before arrival, or while in customs custody, the duty shall be
correspondingly
abated by him, provided the carcass of any dead animal remaining on
board
or in customs custody be removed in the manner required by the
Collector
and at the expense of the importer.
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Sec.
1706. Investigation Required
in case of Abatements and Refunds. — The Collector shall in all cases
of
allowances, abatements or refunds of duties, cause an examination and
report
in writing to be made as to any fact discovered during such examination
which tends to account for the discrepancy or difference and cause the
corresponding adjustment to be made on the import entry.
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Sec.
1707. Correction of Errors —
Refund of Excess Payments. — Manifest clerical errors made in an
invoice
or entry, errors in return of weight, measure and gauge, when duly
certified
to by the surveyor or examining official (when there are such officials
at the port), and errors in the distribution of charges on invoices not
involving any question of law and certified to by the examining
official,
may be corrected in the computation of duties, if such errors be
discovered
before the payment of duties, or, if discovered within one year after
the
final liquidation, upon written request and notice of error from the
importer,
or upon statement of error certified by the Collector.
For
the purpose of correcting errors specified in the next preceding
paragraph
the Collector is authorized to reliquidate entries and collect
additional
charges, or to make refunds on statement of error within the statutory
time limit.
Sec.
1708. Claim for Refund and Mode
of Payment. — All claims for refund of duties shall be made in writing,
and forwarded to the Collector to whom such duties are paid, who upon
receipt
of such claim shall verify the same by the records of his office, and
if
found to be correct and in accordance with law, shall certify the same
to the Commissioner with his recommendation together with all necessary
papers and documents. Upon receipt by the Commissioner of such
certified
claim he shall cause the same to be paid if found correct.
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PART
7
ABANDONMENT
OF IMPORTED ARTICLES
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Sec.
1801. Abandonment, Kinds and
Effect of— Abandonment is express when it is made direct to the
Collector
by the interested party in writing, and it is implied when, from the
action
or omission of the interested party, an intention to abandon can be
clearly
inferred. The failure of any interested party to file the import entry
within fifteen days or any extension thereof from the discharge of the
vessel
or aircraft, shall be implied abandonment. An implied abandonment shall
not be effective until the article is declared by the Collector to have
been abandoned after notice thereof is given to the interested party as
in seizure cases.
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Any
person who abandons an imported article renounces all his interests and
property rights therein.
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Sec.
1802. Abandonment of Imported
Articles. — The owner or importer of any articles may, within ten days
after filing of the import entry, abandon to the Government all or a
part
of the articles included in an invoice, and, thereupon, he shall be
relieved
from the payment of duties, taxes and all other charges and expenses
due
thereon: Provided, That the portion so abandoned is not less
than
ten per cent of the total invoice and is not less than one package,
except
in cases of articles imported for personal or family use. The article
so
abandoned shall be delivered by the owner or importer at such place
within
the port of arrival as the Collector shall designate, and upon his
failure
to so comply, the owner or importer shall be liable for all expenses
that
may be incurred in connection with the disposition of the
articles.
Nothing
in this section shall be construed as relieving such owner or importer
from any criminal liability which may arise from any violation of law
committed
in connection with the importation of the abandoned article.
Sec.
1803. Right to Reclaim Article.
— The owner or importer of an article impliedly abandoned may, at any
time
before it is sold or otherwise disposed of, reclaim such article
provided
all legal requirements regarding its importation are complied with and
the corresponding duties, taxes and other charges as well as all
expenses
incurred as a consequence of the abandonment, are paid.
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