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Section 1901. Establishment and Supervision of Warehouses. — When the business of the port requires such facilities, the Collector shall designate and establish warehouses for use as general order stores, public and private bonded warehouses, sheds or yards, or for other purposes.  chanrobles virtual law library

All such warehouses and premises shall be subject to the supervision of the Collector, who shall impose such conditions as may be deemed necessary for the protection of the revenue and of the articles stored therein.
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Sec. 1902. Responsibility of Government. — The Government assumes no legal responsibility in respect to the safekeeping of articles stored in any customs or bonded warehousee.

  

Sec. 1903. Bonded Warehouses. — Application for the establishment of bonded warehouses must be made in writing to the Collector, describing the premises, the location, and capacity of the same, and the purpose for which the building is to be used. 

Upon receipt of such application, the Collector shall cause an examination of the premises to be made, with reference particularly to its location, construction and means provided for the safekeeping of articles and if found satisfactory he may authorize its establishment, and accept a bond for its operation and maintenance. 

The Collector shall appoint storekeepers and other employees for such bonded warehouses, whose salaries shall be collected from operators of warehouses where the service is rendered.  chanrobles virtual law library

Sec. 1904. Warehousing Bond. — After articles declared is the entry for warehousing have been examined and the duties, taxes and other charges had been determined, the Collector shall require from the importer, a bond equivalent to one and one-half times the amount of such duties, taxes and other charges, conditioned upon the withdrawal of the articles within the period prescribed by section nineteen hundred and eight of this Code and for payment of any duties, taxes and other charges to which the articles shall be then subject.

Sec. 1905. Discontinuance of Warehouses. — The use of any warehouse may be discontinued by the Collector at any time when conditions so warrant, or, in case of a private warehouse upon receipt of written request to that effect from the operator thereof of the premises, provided all the requirements of the law and regulations have been complied with by said operator. Where dutiable article is stored in such premises the same must be removed at the risk and expense of the operator and the premises shall not be relinquished, nor discontinuance of its use authorized, until after a careful examination of the accounts of the warehouse and a comparison thereof with the books of the customhouse shall have been made. 

Sec. 1906. Entry of Articles for Warehousing. — The entry of articles for warehousing shall be in the required number of copies in the prescribed form, and shall be verified as in the entry of articles for consumption. No warehousing entry shall be accepted for any article if from the entry, supporting documents and/or information such article is imported contrary to any law. 

Sec. 1907. Withdrawal of Articles from Bonded Warehouse. — Articles entered under bond may be withdrawn at any time for consumption, for transportation to another port, for exportation or for delivery on board a vessel or aircraft engaged in foreign trade for use on board such vessel or aircraft as sea stores or stores for aircraft after liquidation of the entry. The withdrawal must be made by a person or firm named in the original warehouse entry, or by a person or firm duly authorized by the former, whose authority must appear in writing upon the face of the withdrawal. 

Sec. 1908. Limit to Period Of Storage in Bonded Warehouse. — Articles duly entered for warehousing may remain in bonded warehouses for a period of two years from the time of arrival at the port of entry, which period may for sufficient reason be further extended for not more than one year by the Commissioner whenever sufficient reasons for such extension are presented to him. Articles not withdrawn at the expiration of the prescribed period shall be sold at auction by the Collector. 

Sec. 1909. Charges of Storage In Bonded Warehouses. — The rates of storage in public or private bonded warehouses shall be subject to arrangement between the importer and the warehouse operator, but such rates shall not be in excess of the customary charges fixed by the Collector of the port for such warehouses. 

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Sec. 2001. Establishment of Bonded Manufacturing Warehouses. — All articles manufactured in whole or in part of imported materials, and intended for exportation without being charged with duty, shall, in order to be so manufactured and exported, be made and manufactured in bonded warehouses under such rules and regulations as the Commissioner, with the approval of the department head, shall prescribed: Provided, That the manufacturer of such articles shall first file a satisfactory bond for the faithful observance of all laws, rules and regulations applicable thereto.  chanrobles virtual law library

Sec. 2002. Exemption From Duty. —   a. Whenever articles manufactured in any bonded warehouse established under the provisions of the preceding section shall be exported directly therefrom or shall be duly laden for immediate exportation under the supervision of the proper official such articles shall be exempt from duty. 
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b. Any imported material used in the manufacture of such articles, and any packages, coverings, brands and labels used in putting up the same may, under the regulations prescribed by the Commissioner with the approval of the department head, be conveyed without the payment of duty into any bonded manufacturing warehouse, and imported articles may, under the aforesaid regulations, be transferred without the payment of duty from any bonded warehouse into any bonded manufacturing warehouse; but this privilege shall not be held to apply to implements, machinery or apparatus to be used in the construction or repair of any bonded manufacturing warehouse or for the operation of the business carried on therein. 

Sec. 2003. Procedure for Withdrawal. — Articles received into such bonded manufacturing warehouse or articles manufactured therein may be withdrawn or removed therefrom for direct shipment and for immediate exportation in bond to foreign countries under the supervision of the proper official, who shall certify to such shipment and exportation, or lading for immediate exportation as the case may be, describing the articles by their mark or otherwise, the quantity, the date of exportation and the name of the vessel or aircraft: Provided, That the waste and by-products incident to the processes of manufacture in said bonded warehouse may be withdrawn for domestic consumption upon payment of duty equal to the duty which would be assessed and collected pursuant to law as if such waste or by-products were imported from a foreign country: Provided, further, That all waste materials may be destroyed under government supervision. All labor performed and services rendered under these provisions shall be under the supervision of a proper customs official and at the expense of the manufacturer. 

Sec. 2004. Verification by the Commissioner. — A careful account shall be kept by the Collector of all articles delivered by him to any bonded manufacturing warehouse, and a sworn monthly return, verified by the customs official in charge, shall be made by the manufacturer containing a detailed statement of all imported articles used by him in the manufacture of the exported articles. 

Before commencing business the operator of any manufacturing warehouse shall file with the Commissioner a list of all the articles intended to be manufactured in such warehouse, and state the formula of manufacture and the names and quantities of the ingredients to be used therein. 

 Sec.  2005. Bonded Smelting Warehouses. — The plants of manufacturers engaged in smelting or refining, or both, of ores and crude metals, may, upon the filing of satisfactory bonds, be designated as bonded smelting warehouses. Ores or crude metals may be removed from the vessel or aircraft in which imported, or from a bonded warehouse, into a bonded smelting warehouse without the payment of duties thereon, and there smelted or refined, or both, together with ores or crude metals of home or foreign productions: Provided, That the bonds shall be charged with a sum equal in amount to the regular duties which would have been payable on such ores and crude metals if entered for consumption at the time of their importation, and the several charges against such bond shall be cancelled upon the exportation or delivery to a bonded manufacturing warehouse established under section twenty hundred and one hereof of a quantity of the same kind of metal equal to the quantity of metal producible from the smelting or refining, or both, of the dutiable metal contained in such ores or crude metals, due allowance being made of the smelter wastage as ascertained from time to time by the Commissioner: Provided, further, That the said metals so producible or any portion thereof, may be withdrawn for domestic consumption or transferred to a bonded warehouse and withdrawn therefrom and the several charges against the bond cancelled upon the payment of the duties chargeable against an equivalent amount of ores or crude metals from which said metal would be producible in their condition as imported: Provided, further, That on the arrival of the ores or crude metals at such establishments they shall be sampled and assayed according to commercial methods under the supervision of proper government officials: Provided, further, That all labor performed and services rendered pursuant to this section shall be under the supervision of the proper customs official and at the expenses of the manufacturer: Provided, further, That all regulations for carrying out the provisions of this section shall be prescribed by the Commissioner with the approval of the department head: And Provided, finally, That the several charges against the bond of any smelting warehouse established under the provisions of this section may be cancelled upon the exportation or transfer to a bonded manufacturing warehouse from any other bonded smelting warehouse established under this section of a quantity of the same kind of metal, in excess of that covered by open bonds, equal to the amount of metal producible from the smelting or refining, or both, of the dutiable metal contained in the imported ores or crude metals, duel allowance being made of the smelter wastage as ascertained from time to time by the Commissioner with the approval of the department head. 

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Sec. 2101. Entry for Immediate Transportation. — Articles entered for constructive warehousing and immediate transportation under transit manifest to other ports of the Philippines without appraisement may be transported under bond and consigned to the Collector at the port of destination, who will allow entry to be made at his port by the consignee. chanrobles virtual law library

Articles received at any port from another port of the Philippines on an entry for immediate transportation without appraisal or classification may be entered at the port of delivery either for consumption or warehouse. 
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Sec. 2102. Bonding of Carrier Transporting Articles in Bond. — A carrier engaged in conveying dutiable articles in bond from a port of importation to other ports shall give security in the nature of a general transportation bond, in a sum not less than ten thousand pesos, conditioned that the principal shall transport and deliver without delay, and in accordance with law and regulation, to the Collector at the port of destination all articles in bond delivered to such carrier and that all proper charges and expenses incurred by the customs authorities or at their instance by reason of such shipments shall be duly paid. 

Sec. 2103. Exportation under Bond. — Where an intent to export the articles is shown by the bill of lading and invoice, the whole or part of a bill of lading (not less than one package) may be entered for warehouse and immediate exportation. The Collector may designate the vessel or aircraft in which the articles are laden as constructively a warehouse to facilitate the direct transfer of the articles to the exporting vessel or aircraft. The same procedure may apply to articles entered for warehouse and immediate transportation. 

Unless it shall appear by the invoice, bill of lading, manifests, or other satisfactory evidences, that articles arriving in the Philippines are destined for transshipment, no exportation thereof will be permitted except under entry for warehouse and exportation bond and appraisal or classification made. 

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Upon withdrawal for export, a bond equivalent to one and one-half the amount of the duties, taxes and other charges, shall be required conditioned upon the exportation of the articles, and for the production of proof of the landing of same beyond the limits of the Philippines.