TARIFF AND CUSTOMS CODE OF CUSTOMS MODERNIZATION AND

THE PHILIPPINES TARIFF ACT

EXERCISE OF FLEXIBLE TARIFF POWERS

TCCP: Can be exercised by the President CMTA: The power can be delegated to
WON the Congress is in session. (Sec. the President subject to the condition
401) that the Congress is not in session. (Sec.
1608)

ADDED POWERS OF THE PRESIDENT

No such power existed Under Sec. 304 of the CMTA, when public
interest so requires, the President may,
by executive order, declare any wharf,
landing place, infrastructure, street or
land, in any port of entry under the
jurisdiction of the Bureau as may be
necessary, for customs purposes and/or
to authorize a port or terminal operator
to transfer overstaying cargoes in an
inland depot or terminal.

WORDINGS OF THE POWERS OF THE TARIFF COMMISSION

EXERCISE OF POLICE AUTHORITY

SECTION 2203. Persons Having SECTION 214. Persons Exercising Police

Police Authority. — For the Authority. — For the effective implementation of
enforcement of the customs and tarif this Act, the following persons are authorized to
laws, the following persons are effect search, seizure, and arrest: S
a. Officials of the Bureau, District Collectors,
authorized to efect searches, seizures
Deputy District Collectors, police officers, agents,
and arrests conformably with the
inspectors and guards of the Bureau;
provisions of said laws:
b. Upon authorization of the Commissioner,
a. Officials of the Bureau of officers and members of the Armed Forces of the
Customs, collectors, assistant Philippines (AFP) and national law enforcement
collectors, deputy collectors, surveyors, agencies; and
security and secret-service agents, c. Officials of the BIR on all cases falling within
inspectors, port patrol officers and the regular performance of their duties, when
guards of the Bureau of Customs. payment of internal revenue taxes is involved.
b. Officers of the Philippine Navy
when authorized by the Commissioner. In CMTA, the law limited the persons authorized to
effect searches, seizures, and arrest. It likewise
c. Any person especially authorized conferred such authority to the Bureau of Internal
in writing by the Commissioner. Revenue that was not conferred in the TCCP law.
d. Officers generally empowered by
law to efect arrests and execute
processes of courts, when acting under
direction of the Collector.
e. Any person especially authorized
by a Collector, subject to the
restrictions stated in the next
succeeding section.
Under this law, any person authorized in
writing by the Commissioner or Collector can
effect searches, seizures and arrest. This
provision is deleted under the CMTA.

AUTHORITY TO ENTER PROPERTIES

SECTION 2208. Right of Police Officer to SECTION 219. Authority to Enter

Enter Inclosure. — For the more
efective discharge of his official duties,
any person exercising the powers herein
conferred, may at anytime enter, pass
through, or search any land or inclosure
or any warehouse, store or other
building, not being a dwelling house.
A warehouse, store or other building or
enclosure used for the keeping of
storage of articles does not become a
dwelling house within the meaning
hereof merely by reason of the fact that
a person employed as watchman lives
in the place, nor will the fact that his
family stays there with him alter the
case.
Properties. — Any person exercising
police authority may, at any time, enter,
pass through, and search any land,
enclosure, warehouse, store, building or
structure not principally used as a
dwelling house.
When a security personnel or any
other employee lives in the
warehouse, store, or any building,
structure or enclosure that is used
for storage of goods, it shall not be
considered as a dwelling house for
purposes of this Act.

KINDS OF PROHIBITED ARTICLES

There is only one kind under the TCCP. There are 2 kinds under the CMTA --
(Sec. 102) Absolutely Prohibited Articles (Sec. 118)
and Restricted Articles (Sec. 119)

POWERS OF THE PRESIDENT REGARDING CONDITIONALLY-FREE ARTICLES

No such power existed. Section 800: “...Provided, the President

may, upon the recommendation of the
Secretary of Finance, suspend,
disallow or completely withdraw, in
whole or in part, any conditionally
free importation under this
section…”

TECHNICAL DEFINITION OF AN OVERSEAS FILIPINO WORKER (OFW)

No technical definition
SIMULTANEOUS OR SUBSEQUENT PAYMENT UNDER PROTEST
SECTION 2308. Protest and Payment
upon Protest in Civil Matters. — When a
ruling or decision of the Collector is
made whereby liability for duties, fees,
or other money charge is determined,
except the fixing of fines in seizure
cases, the party adversely afected may
protest such ruling or decision by
presenting to the Collector at the time
when payment of the amount claimed
to be due the Government is made, or
within thirty days thereafter, a written
protest setting forth his objections to
the ruling or decision in question,
together with the reasons therefor. No
protest shall be considered unless
payment of the amount due after final
liquidation has first been made.
PAYMENT OR NON-PAYMENT UNDER PROTEST
Section 2308. Protest and Payment
upon Protest in Civil Matters. - “...No
protest shall be considered unless
payment of the amount due after final
liquidation has first been made.”
ALERT ORDERS
Not provided under the old Tarif Code.
Section 800 (g)(1): OFWs refer to holders
of valid passports duly issued by the
Department of Foreign Afairs (DFA) and
certified by the Department of Labor and
Employment (DOLE) or the Philippine
Overseas Employment Administration
(POEA) for overseas employment
purposes. They cover all Filipinos,
working in a foreign country under
employment contracts, regardless of
their professions, skills or employment
status in a foreign country
SECTION 1106. Protest. — When a ruling
or decision of the District Collector or
customs officer involving goods with
valuation, rules of origin, and other
customs issues is made, except the
fixing offines in seizure cases, the party
adversely afected may appeal by way of
protest against such ruling or decision
by presenting to the Commissioner at
the time when payment of the
amount claimed to be due the
government is made, or within
fifteen (15) days thereafter, a
written protest setting forth the
objection to the ruling or decision in
question and the reasons therefore.
Section 1106. Protest. - “...Subject to
the approval of the Secretary of
Finance, the Commissioner shall
provide such rules and regulations
as to the requirement for payment
or nonpayment of the disputed
amount and in case of nonpayment, the
release of the importation under protest
upon posting of sufficient security.”
SECTION 1111. Alert Orders. — Alert
orders are written orders issued by

ARTICLES TO BE CLEARED IN AN INFORMAL ENTRY
Sec. 1302 Articles of a commercial
nature intended for sale, barter or hire,
the dutiable value of which is two
thousand pesos (P2,000.00) or
less, and personal and household
efects or articles, not in commercial
quantity,
imported in passenger's baggage, mail
or otherwise, for personal use, shall be
cleared
on an informal entry whenever duty, tax
or other charges are collectible.
PERIOD TO FILE IMPORT ENTRY
customs officers as authorized by the
Commissioner on the basis of derogatory
information regarding possible
noncompliance with this Act.
An alert order will result in the
suspension of the processing of the
goods declaration and the conduct of
physical or non-intrusive inspection of
the goods within forty-eight (48) hours
from issuance of the order. Within forty-
eight (48) hours or, in the case of
perishable goods, within twenty-four
(24) hours from inspection, the alerting
officer shall recommend the continuance
of processing of goods in case of a
negative finding, or issuance of a
warrant of seizure and detention if a
discrepancy between the declaration
and actual goods is found. The Bureau's
information system shall immediately
reflect the imposition or lifting of an alert
order.
SECTION 402. Goods Declaration for
Consumption. — All goods declaration
for consumption shall be cleared through
a formal entry process except for the
following goods which shall be cleared
through an informal entry process:
(a) Goods of a commercial nature with
Free on Board (FOB) or Free Carrier At
(FCA) value of less than fifty
thousand pesos (P50,000.00). Every
three (3)
years after the efectivity of this Act, the
Secretary of Finance shall adjust
this amount as provided herein to its
present value, using the Consumer
Price Index (CPI) as published by the
PSA; and
(b) Personal and household efects or
goods, not in commercial quantity,
imported in a passenger's baggage or
mail.
Sec. 1301. Persons Authorized to Make
Import Entry. — Imported articles must
be entered in the customhouse at the
port of entry within thirty (30) days,
which shall not be extendible, from the
date of discharge of the last package
from the vessel or aircraft
Sec. 407 - Goods declaration must be
lodged within fifteen (15) days from the
date of discharge of the last package
from the vessel or aircraft. The period to
􏰀le the goods declaration may, upon
request, be extended on valid grounds
for another fteen (15) days: Provided,
That the request is made before the
expiration of the original period within
which to le the goods declaration:
Provided, however, That the period of
the lodgement of the goods declaration
may be adjusted by the Commissioner.

MISDECLARATION, MISCLASSIFICATION, UNDERVALUATION IN GOODS

DECLARATION
The CMTA has increased the surcharge penalty for misdeclaration, misclassification
and undervaluation of imported goods.
Misdeclaration, Misclassification or Undervaluation of goods (where the
discrepancy between the “should be” duty and VAT payable v. the duty and VAT
actually paid is more than 10%), there shall be imposed a surcharge of 250% of
the duty and tax due.

An increase from the old law to a maximum of 200% of the duty diference under
the TCCP and customs issuances. (Sec. 1400, CMTA)

There is misdeclaration when the discrepancy pertains to quantity, quality,

description, weight, or measurement of the imported goods.

Misclassification, on the other hand, exists when insufficient or wrong description

of the goods or use of wrong tarif heading was declared resulting in a discrepancy.

Undervaluation is present when:

• The declared value fails to disclose in full the price actually paid or payable or
any dutiable adjustment to the price; or
• When an incorrect valuation method is used; or
• The valuation rules are not properly observed.

Any misdeclaration, misclassification or undervaluation of imported goods resulting

in a discrepancy (in duty and tax to be paid) between what is legally determined
upon assessment and what is declared will be subject to a fixed surcharge rate of
250% of the duty and tax due (previously, 100% to 200% of the duty due).

Surcharge, however, will not be imposed when:

• The discrepancy in duty is less than 10%; or
• The importer’s declared value and/or tarif heading/classification:
• Relied on an official government ruling; or
• Is rejected in a formal customs dispute settlement process involving difficult or
highly technical questions relating to the application of customs valuation rules
and/or tarif classifications.

If the misdeclaration, misclassification or undervaluation is intentional or

fraudulent (such as when a false or altered document is submitted or when false
statements or information are knowingly made), a 500% surcharge (of the duty
and tax due) will be imposed on the importer and to those who willfully
participated in the fraudulent act. The imported goods will be subject to seizure
regardless of the amount of the discrepancy.

The CMTA likewise adopts the previous rule under the TCCP, as amended, on the
existence of a prima facie evidence of fraud if the discrepancy (in duty and tax to
be paid) amounts to more than 30%.

PART 3 Examination, Classification and TITLE XIV OFFENSES AND PENALTIES

Appraisal of Imported Articles CHAPTER 1 CRIMES AND OTHER
SECTION 1401. Designation of OFFENSES
Packages To be Examined. — Unless the Sec. 1400. Misdeclaration,
Collector is of the opinion that the Misclassification, Undervaluation, in
examination of a less or greater Goods Declaration. – Misdeclaration as
proportion of packages will amply to quantity, quality, description, weight,
protect the revenues, there shall be or measurement of the goods, or
designated for examination and misclassification through insufficient or
appraisal, at least one package of every wrong description of the goods or use of
invoice, and at least one package of wrong tarif heading resulting to a
every ten packages of articles imported: discrepancy in duty and tax to be paid
Provided, That nothing in this section between what is legally determined
shall preclude the examiner from upon assessment and what is declared,
examining additional or all the shall be subject to a surcharge
packages. equivalent to two hundred fifty percent
(250%) of the duty and tax due. No
surcharge shall be imposed when the
discrepancy in duty is less than ten
percent (10%), or when the declared
tarif heading is rejected in a formal
customs dispute settlement process
involving difficult or highly technical
question of tarif classification, or when
the tarif classification declaration relied
on an official government ruling.

UNLAWFUL IMPORTATION OR EXPORTATION

Any person who shall fraudulently import or export or bring into or outside of
the Philippines any goods, or assist in so doing, contrary to law, or shall receive,
conceal, buy, sell, or in any manner facilitate the transportation, concealment, or
sale of such goods after importation, or shall commit technical smuggling as
defined in this Act shall be penalized by:
• Imprisonment of a minimum of 30 days to a maximum of 12 years or
a fine of a minimum amount of P25k to as high as P50M or both.
 • Unlawful importation becomes a Heinous Crime – appraised value
of the goods including DT exceeds P200M punishable by reclusion
perpetua and a fine of not less than P50M.
PART 3 Penal Provisions
SECTION 3601. Unlawful Importation.
— Any person who shall fraudulently
import or bring into the Philippines, or
assist in so doing, any article, contrary
to law, or shall receive, conceal, buy,
sell, or in any manner facilitate the
transportation, concealment, or sale of
such article after importation, knowing
the same to have been imported
contrary to law, shall be punished by a
fine of not less than six hundred
pesos nor more than five thousand
pesos and imprisonment for not less
than six months nor more than two
years and, if the offender is an alien,
he shall be deported after serving the
sentence.
When, upon trial for a violation of this
section, the defendant is shown to have
or to have had possession of the article
in question, such possession shall be
deemed sufficient evidence to authorize
conviction, unless the defendant shall
explain the possession to the
satisfaction of the court.
Sec. 1401. Unlawful Importation or
Exportation. – Any person who shall
fraudulently import or export or bring
into or outside of the Philippines any
goods, or assist in so doing, contrary to
law, or shall receive, conceal, buy, sell,
or in any manner facilitate the
transportation, concealment, or sale of
such goods after importation, or shall
commit technical smuggling as defined
in this Act shall be penalized by:
(a) Imprisonment of not less than thirty
(30) days and one (1) day but not
more than six (6) months, or a fine of
not less than twenty-five thousand pesos
(P25,000.00) but not more than
seventy-five thousand pesos
(P75,000.00), or both, if the appraised
value of the goods unlawfully imported,
to be determined in the manner
prescribed under this Act, including
duties and taxes, of the goods unlawfully
imported does not exceed two hundred
fifty thousand pesos (P250,000.00);
(b) Imprisonment of not less than six (6)
months and one (1) day but not more
than one (1) year, or a fine of not less
than seventy-five thousand pesos
(P75,000.00) but not more than one
hundred fifty thousand pesos
(P150,000.00), or both, if the
appraised value of the goods unlawfully
imported, to be determined in the
manner prescribed under this Act,
including duties and taxes, exceeds two
hundred fifty thousand pesos
(P250,000.00) but not more than five
hundred thousand pesos (P500,000.00);
(c) Imprisonment of not less than one
(1) year and one (1) day but not more
than three (3) years, or a fine of not
less than one hundred fifty thousand
pesos (P150,000.00) but not more than
three hundred thousand pesos
(P300,000.00) or both, if the
appraised value of the goods unlawfully
imported, to be determined in the
manner prescribed under this Act,
including duties and taxes, exceeds five
hundred thousand pesos (P500,000.00)
but not more than one million pesos
(P1,000,000.00);
(d) Imprisonment of not less than three
(3) years and one (1) day but not
more than six (6) years, or a fine of not
less than three hundred thousand pesos
(P300,000.00) but not more than one
million five hundred thousand pesos
(P1,500,000.00), or both, if the
appraised value of the goods unlawfully
imported, to be determined in the
manner prescribed under this Act,
including duties and taxes, exceeds one
million pesos (P1,000,000.00) but not
more than five million
pesos (P5,000,000.00);
(e) Imprisonment of not less than six (6)
years and one (1) day but not more
than twelve (12) years, or a fine of not
less than one million five hundred
thousand pesos (P1,500,000.00) but
not more than fifteen million pesos
(P15,000,000.00), or both, if the
appraised value of the goods unlawfully
imported, to be determined in the
manner prescribed under this Act,
including duties and taxes, exceeds five
million pesos (P5,000,000.00) but not
more than fifty million pesos
(P50,000,000.00);
(f) Imprisonment of not less than twelve
(12) years and one (1) day but not
more than twenty (20) years, or a fine
of not less than fifteen million pesos
(P15,000,000.00) but not more than
fifty million pesos (P50,000,000.00), or
both, if the appraised value of the
goods unlawfully imported, to be
determined in the manner prescribed
under this Act, including duties and
taxes, exceeds fifty million pesos
(P50,000,000.00) but not more than two
hundred million pesos
(P200,000,000.00);
(g) If the appraised value of the goods
unlawfully imported to be determined in
the manner prescribed under this Act,
including duties and taxes, exceeds two
hundred million pesos (P200,000,000.00)
or if the aggregate amount of the
appraised value of the goods which are
the subject of unlawful importation
committed in more than one instance,
including duties and taxes, exceeds two
hundred million pesos
(P200,000,000.00), the same shall be
deemed as a heinous crime and shall
be punishable with a penalty of
reclusion perpetua and a fine of not
less than fifty million pesos
(P50,000,000.00); and
(h) The penalty of prision mayor shall
be imposed when the crime of serious
physical injuries shall have been
committed, and the penalty of
reclusion perpetua shall be imposed
when the crime of homicide shall have
been committed by reason or on the
occasion of the unlawful importation.

In applying the above scale of penalties,

an ofender who is a foreigner shall be
deported without further proceedings
after serving the sentence. If the
ofender is a public officer or employee,
the penalty which is the next higher in
degree shall be imposed in addition
to the penalty of perpetual
disqualification from public office,
and disqualification to vote and to
participate in any public election. If
the ofender fails to pay the fine,
subsidiary imprisonment shall be
served. When, upon trial for violation of
this section, the defendant is shown to
have had possession of the goods in
question, possession shall be
deemed sufficient evidence to
authorize conviction unless the
defendant shall explain the possession
to the satisfaction of the court: Provided,
That each act of unlawful importation or
exportation shall be deemed as a
 separate ofense: Provided, however,
That payment of the tax due after
apprehension shall not constitute a valid
defense in any prosecution, under this
section: Provided, further, That outright
smuggling shall also be punishable
under this section: Provided, finally,
That the rights and privileges provided
in this Act for the importers, consignees,
exporters, service providers, third
parties and other third parties who
committed this ofense shall be
revoked.

FAILURE OR REFUSAL OF PARTY TO GIVE EVIDENCE OR SUBMIT DOCUMENTS FOR

ASSESSMENT
In TCCP, the surcharge shall be 20% of the ad valorem value; In TCCP the
surcharge shall be 20% of the dutiable value.

SECTION 2504. Failure or Refusal of Sec. 1402. Failure or Refusal of Party to

Party to Give Evidence or Submit
Documents for Examination. — When
the owner, importer or consignee of any
imported articles, or the agent of either,
fails or refuses, upon lawful demand in
writing by any customs official to
appear, make oath or submit himself to
examination, or to answer any material
question or refuses to produce records,
accounts or invoices in his possession
pertaining to the value, classification or
disposition of the article in question and
deemed material in appraising the
same, the Collector shall assess a
surcharge of twenty per centum ad
valorem on the article which is the
subject of the importation.
Give Evidence or Submit Documents for
Assessment. – When the owner,
importer or consignee of any imported
goods, or the agent of either, fails or
refuses, upon lawful demand in writing
by any customs officer to appear,
lawfully depose, or submit to
examination or to answer any material
question or refuses to produce records,
accounts or invoices in possession
pertaining to the value, classification or
disposition of the goods in question and
deemed material in assessing the same,
the District Collector shall assess a
surcharge of twenty percent (20%) on
the dutiable value of the goods which
is the subject of the importation.

OTHER FRAUDULENT PRACTICES

In TCCP, the accused for each ofense, shall be punished by a fine of not less than
six hundred pesos nor more than five thousand pesos and by imprisonment
for not less than six months nor more than two years and if the ofender is an
alien, he shall be deported after serving the sentence; in CMTA the same shall be
punished in accordance with the penalties prescribed in Section 1401 thereof.

SECTION 3602. Various Fraudulent Sec. 1403. Other Fraudulent Practices

Practices Against Customs Revenue. — Against Customs Revenue. – Any person
Any person who makes or attempts to who makes or attempts to make any
make any entry of imported or exported entry of imported or exported goods by
article by means of any false or means of any false or fraudulent
fraudulent invoice, declaration, statement, document or practice or
affidavit, letter, paper, or by means of knowingly and willfully files any false or
any false statement, written or verbal, fraudulent claim for payment of
or by means of any false or fraudulent drawback or refund of duties shall, for
practice whatsoever, or shall be guilty each act, be punished in accordance
of any willful act or omission by means with the penalties prescribed in
of whereof the Government might be Section 1401 of this Act.
deprived of the lawful duties, taxes and
other charges, or any portion thereof,
accruing from the article or any portion
thereof, embraced or referred to in such
invoice, declaration, affidavit, letter,
paper, or statement, or afected by such
act or omission, shall, for each ofense,
be punished by a fine of not less than
six hundred pesos nor more than five
thousand pesos and by imprisonment
for not less than six months nor more
than two years and if the ofender is
an alien, he shall be deported after
serving the sentence.

FAILURE TO DECLARE BAGGAGE

To obtain release of the goods, TCCP provides merely for payment of surcharge of
30% while CMTA provides for appraised value of such article PLUS all the
duties, taxes and other charges due thereon.

SECTION 2505. Failure to Declare Sec. 1404. Failure to Declare Baggage.

Baggage. — Whenever any dutiable
article is found in the baggage of any
person arriving within the Philippines
which is not included in the baggage
declaration, such article shall be
seized and the person in whose
baggage it is found may obtain release
of such article, if not imported contrary
to any law upon payment of treble the
appraised value of such article plus
all duties, taxes and other charges
due thereon unless it shall be
established to the satisfaction of the
Collector that the failure to mention or
declare said dutiable article was
without fraud.
Nothing in this section shall preclude
the bringing of criminal action against
the ofender.
– Whenever dutiable goods are not
declared by any person arriving within
the Philippines, such goods shall be
seized and the person may obtain
release of such goods, if not imported
contrary to any law, upon payment of a
surcharge equivalent to thirty percent
(30%) of the landed cost of such goods,
in addition to all duties, taxes and other
charges due.
Nothing in this section shall preclude the
filing of criminal action against the
ofender.

VESSEL, SEACRAFT, OR AIRCRAFT DEPARTING BEFORE UNDERGOING CUSTOMS

FORMALITIES
In TCCP the departure was made before entry; while in CMTA the departure
contemplated was before undergoing customs formalities. The amount of fine
under the former shall not exceed P5,000.00 while in the latter it shall not be less
than P100,000.00 nor more than P300,000.00

SECTION 2513. Vessel or Aircraft Sec. 1405. Vessel, Seacraft, or Aircraft

Departing before Entry Made. — Any
vessel or aircraft arriving within the
limits of a collection district from a
foreign port which departs before entry
is made, without being compelled to do
so by stress of weather, pursuit or
duress of enemies, or other necessity,
shall be fined in a sum not exceeding
five thousand pesos.
Departing Before Undergoing Customs
Formalities. – Any vessel, seacraft, or
aircraft arriving within the limits of a
Customs District from a foreign port
which departs before undergoing
customs formalities, without being
compelled to do so by stress of weather,
pursuit or duress of enemies, or other
necessity, shall be liable for a fine of not
less than one hundred thousand pesos
(P100,000.00) but not more than three
hundred thousand pesos
(P300,000.00).

OBSTRUCTION TO BOARDING OFFICER

In TCCP, the fine imposed was not exceeding P5,000.00 while in CMTA it ranges
from P100,000.00 to P300,000.00

SECTION 2514. Obstruction to Sec. 1406. Obstruction to Boarding

Boarding Official. — If the master or
pilot in command or any member of the
complement of any vessel or aircraft
arriving at a Philippine port obstructs or
hinders any official from lawfully going
on board such vessel or aircraft for the
purpose of enforcing the customs and
tarif laws intentionally causes any such
official to be so obstructed or hindered,
the vessel or aircraft shall be fined in a
sum not exceeding five thousand
pesos.
Officer. – If the master or pilot-in-
command or any member of the
complement of any vessel or aircraft
arriving at the Philippine port obstructs
or hinders any officer from lawfully going
on board such vessel or aircraft for the
purpose of enforcing this Act, or
intentionally causes any officer to be so
obstructed or hindered, the vessel or
aircraft shall be liable to a fine of not
less than one hundred thousand pesos
(P100,000.00) but not more than three
hundred thousand pesos
(P300,000.00).

UNLAWFUL BOARDING OR LEAVING OF VESSEL OR AIRCRAFT

In TCCP, the vessel or aircraft was to be fined in sum of not exceeding P5,000.00
while in CMTA the amount was increased to range of P100,000.00 to
P300,000.00.

SECTION 2515. Unlawful Boarding or Sec. 1407. Unlawful Boarding or

Leaving of Vessel or Aircraft. — If upon Leaving of Vessel or Aircraft. – If, upon
arrival at a Philippine port, any master arrival at the Philippine port, any master
of a vessel or pilot in command of an of a vessel or pilot-in-command of an
aircraft engaged in a foreign trade aircraft engaged in a foreign trade
permits any person to board or leave
the vessel or aircraft without the
permission of the customs official in
charge, such vessel or aircraft shall be
fined in a sum not exceeding one
thousand pesos.
permits any person to board or leave the
vessel or aircraft without the permission
of the customs officer-in-charge, the
owner or operator of such vessel or
aircraft shall he liable for a fine of not
less than one hundred thousand pesos
(100,000.00) but not more than three
hundred thousand pesos
(P300,000.00).

UNLOADING OF CARGO BEFORE ARRIVAL AT PORT OF ENTRY

In TCCP, it shall be fined not exceeding P5,000.00; in CMTA it shall be be fined
ranging from P500,000.00 to P2,000,000.00 without prejudice to fines and
penalties imposed under Section 1401.

SECTION 2517. Unlading of Cargo Sec. 1408. Unloading of Cargo Before

Before Arrival At Port of Destination. —
If, upon the arrival within the limits of
any collection district of the Philippines
of any vessel or aircraft engaged in
foreign trade, the master or pilot in
command thereof permits any part of
the cargo to be unladen before her
arrival at her port of destination, and
without authority from a proper customs
official, such vessel or aircraft shall be
fined in a sum not exceeding five
thousand pesos, unless the unlading
was rendered necessary by stress of
weather, accident or other necessity;
and if due to necessity, the subsequent
approval of the proper Collector must
be obtained.
Arrival at Port of Entry. – If, upon the
arrival within the limits of any Customs
District of the Philippines of any vessel
or aircraft engaged in foreign trade, the
master or pilot-in-command thereof
permits any part of the cargo to be
unloaded before arrival at the port of
entry, and without authority from a
proper customs officer, the owner,
operator, or agent of such vessel or
aircraft shall he liable for a fine of not
less five hundred thousand pesos
(P500,000.00) but not more than two
million pesos (P2,000,000.00):
Provided, That no fine shall accrue upon
satisfactory proof to the proper District
Collector that the unloading was
rendered necessary by stress of
weather, accident or other necessity:
Provided, however, That the fine
imposed herein shall be without
prejudice to the application of fines or
penalties provided under Section 1401
of this Act.

UNLOADING OF CARGO AT IMPROPER TIME OR PLACE AFTER ARRIVAL

In TCCP, it covers any vessel and aircraft before arrival at port of destination who
discharges after arrival at her PORT OF DESTINATION shall be fined not exceeding
P10,000.00 and there is express requirement for subsequent approval of fine
exemption due to necessity; in CMTA it covers anythe owner or operator of the
vessel or aircraft upon arrival IN THE PHILIPPINES shall be be fined ranging from
P100,000.00 to P300,000.00 and there is no express requirement for
subsequent approval of fine exemption due to necessity.
SECTION 2518. Unlading of Cargo at
Improper Time or Place After Arrival. —
Any vessel or aircraft, which after
arrival at her port of destination in the
Philippines, discharges cargo at any
time or place other than that
designated by the Collector shall be
fined in a sum not exceeding ten
thousand pesos unless the unlading
was rendered necessary by stress of
weather, accident or other necessity;
and if due to necessity, the subsequent
approval of the proper Collector must
be obtained.
FAILURE TO EXHIBIT OR DEPOSIT DOCUMENTS
In TCCP, the vessel or aircraft shall be fined not exceeding P5,000.00 and the
vessel shall be liable if the master fails to produce the proper documents or
evidence; in CMTA the owner or operator shall be be fined ranging from
P100,000.00 to P300,000.00.
SECTION 2519. Failure to Exhibit or
Deposit Documents. — When the
master of a vessel or pilot in command
of an aircraft engaged in foreign trade
fails to exhibit to the Collector at the
time of entry of his vessel or aircraft the
register or other paper in lieu thereof,
together with the clearance and other
papers granted by the customs officials
to his vessel or aircraft at the last
foreign port of departure, or fails to
exhibit any certificate or other
document required to be then exhibited,
such vessel or aircraft shall be fined in a
sum not exceeding five thousand
pesos.
Such vessel shall be liable for the
payment of the aforesaid fine if the
master, within forty-eight hours after
arrival, shall fail to deliver to the proper
consular officer of his nation such
documents as are required by law to be
deposited with him, or, if after having
made such deposit, the master shall fail
to produce to the Collector the required
evidence that the same has been
efected.
Sec. 1409. Unloading of Cargo at
Improper Time or Place After Arrival. –
The owner or operator of any vessel or
aircraft from which cargo is discharged
upon arrival in the Philippines at a time
or place other than that designated by
the District Collector, shall be fined not
less one hundred thousand pesos
(P100,000.00) but not more than three
hundred thousand pesos (P300,000.00):
Provided, That no fine shall accrue upon
satisfactory proof to the proper District
Collector that the unloading was
rendered necessary by stress of
weather, accident or other necessity.
Sec. 1410. Failure to Exhibit or Deposit
Documents. – When the master of a
vessel or pilot-in-command of an aircraft
engaged in foreign trade fails to submit
to the District Collector at the time of
entry of the vessel or aircraft the
register or other documents in lieu
thereof, together with the clearance and
other documents granted by the
customs officers to the vessel or aircraft
at the last foreign port of departure, or
fails to exhibit any certificate or other
documents required to be then
exhibited, the owner or operator of such
vessel or aircraft shall be liable for a fine
of not less than one hundred thousand
pesos (P100.000.00) but not more than
three hundred thousand pesos
(P300,000.00).
 BRINGING OF UNMANIFESTED ARMS, EXPLOSIVES OR WAR EQUIPMENT
In TCCP, the vessel or aircraft was to be fined in sum of not exceeding P25,000.00
while in CMTA the owner, operator, or agent shall answer to the amount ranging
from P500,000.00 to P1,000,000.00.

SECTION 2520. Bringing of Sec. 1411. Bringing of Unmanifested

Unmanifested Arms, Explosives or War
Equipment. — Any vessel or aircraft
arriving at a port in the Philippines,
having firearms, gunpowder, cartridges,
dynamite or any other explosives,
munitions or equipments of war
concealed on board his vessel or not
contained in the manifest of the vessel
or aircraft, shall be fined not exceeding
twenty thousand pesos.
Arms, Explosives or War Equipment. –
The owner, operator, or agent of a vessel
or aircraft arriving at a port in the
Philippines bearing cargo consisting of
firearms, gunpowder, cartridges,
dynamite or any other explosives,
munitions or equipment of war not
contained in the manifest of the vessel
or aircraft, or which are concealed on
board, shall be liable for a fine of not
less than five hundred thousand pesos
(P500,000.00) but not more than one
million pesos (P1,000,000.00).

FAILURE TO SUPPLY ADVANCE AND REQUISITE MANIFESTS

In TCCP, the vessel or aircraft was to be fined in sum of not exceeding P10,000.00
upon failure to submit proper manifests or shall enter or depart conveying
unmanifested cargo while in CMTA the owner, operator, or agent shall answer to
the amount ranging from P100,000.00 to P300,000.00 upon failure to transmit
electronic manifest. Moreover, in CMTA the shipping or forwarding agent of the
carrier or the vessel who fails to submit the manifest at least twenty-four (24)
hours before entry shall be liable for the same.

SECTION 2521. Failure to Supply Sec. 1412. Failure to Supply Advance

Requisite Manifests. — If any vessel or
aircraft enters or departs from a port of
entry without submitting the proper
manifests to the customs authorities, or
shall enter or depart conveying
unmanifested cargo other than as
stated in the next preceding section
hereof, such vessel or aircraft shall be
fined in a sum not exceeding ten
thousand pesos.
The same fine shall be imposed upon
any arriving or departing vessel or
aircraft if the master or pilot in
command shall fail to deliver or mail to
the Auditor General a true copy of the
manifest of the incoming or outgoing
cargo, as required by law.
and Requisite Manifests. – Failure to
transmit the electronic manifest within
the required time as may be prescribed
by the Bureau, prior to arrival of the
carrying vessel or aircraft at the port of
entry shall make the owner, operator, or
agent of the vessel or aircraft liable for a
fine of not less than one hundred
thousand pesos (P100,000.00) but not
more than three hundred thousand
pesos (P300,000.00).
If the transit time from port of origin to
port of entry is at least seventy-two (72)
hours, the shipping or forwarding agent
of the carrier or the vessel who fails to
submit the manifest at least twenty-
four (24) hours before entry shall
likewise be liable for a fine of not less
than one hundred thousand pesos
 (P100,000.00) but not more than three
hundred thousand pesos
(P300,000.00).

DISAPPEARANCE OF MANIFESTED GOODS

In TCCP, the vessel or aircraft was to be fined in sum of not exceeding P2,000.00
upon failure to forthcoming (appear, produce or made available) any package or
article or does not tally materially in character or otherwise with the description in
the manifest; In CMTA the agent shall answer to the amount ranging from
P100,000.00 to P300,000.00 upon failure to unload any package or goods
mentioned in the manifest. Moreover, in CMTA owner, operator, or agent of a vessel
or aircraft shall be liable for the payment of the same fine when a package or
goods listed in the manifest does not tally materially in character or otherwise with
the description in the manifest.

SECTION 2522. Disappearance of Sec. 1413. Disappearance of

Manifested Article. — When any
package or article mentioned in the
manifest shall not be duly forthcoming
upon the arrival of the vessel or aircraft,
the vessel or aircraft shall be fined in a
sum not exceeding two thousand
pesos, unless the disappearance of the
package or article in question was not
due to the negligence of the master of
the vessel or pilot in command of an
aircraft and explained to the
satisfaction of the Collector.
The vessel or aircraft shall be liable for
the payment of the same fine when a
package or article listed in the manifest
does not tally materially in character or
otherwise with the description thereof in
the manifest.
Manifested Goods. – When any package
or goods mentioned in the manifest
meant to be unloaded at the port of
destination is not unloaded upon the
arrival of the vessel or aircraft, its agent
shall be liable for a fine of not less than
one hundred thousand pesos
(P100,000.00) but not more than three
hundred thousand pesos (P300,000.00)
unless the disappearance of the package
or the goods in question was not due to
the negligence of the master of the
vessel or pilot-in-command of an aircraft,
and is explained to the satisfaction
of the District Collector.
The owner, operator, or agent of a vessel
or aircraft shall be liable for the payment
of the same fine when a package or
goods listed in the manifest does not
tally materially in character or otherwise
with the description thereof in the
manifest.

DISCREPANCY BETWEEN ACTUAL AND DECLARED WEIGHT OF MANIFESTED

ARTICLE
In TCCP, the master or pilot in command, owner or employee of the vessel or
aircraft was to be fined in sum of not exceeding not more than 15% of the value
of the package or article in respect to which the deficiency if the gross weight of
any article or package described in the manifest exceeds by more than twenty
per centum the gross weight; In CMTA the master or pilot-in-command, the
owner, employee, operator or agent of the importing vessel or aircraft shall be
liable for a fine of not more than 20% of the value of the package or goods in
respect to which the deficiency exists if the gross weight of goods or package
described in the manifest or bill of lading exceeds the declared weight by
more than ten percent (10%).

SECTION 2523. Discrepancy Between Sec. 1414. Discrepancy Between Actual

Actual and Declared Weight of
Manifested Article. — If the gross weight
of any article or package described in
the manifest exceeds by more than
twenty per centum the gross weight
as declared in the manifest or bill of
lading thereof, and the Collector shall
be of opinion that such discrepancy was
due to the carelessness or
incompetency of the master or pilot in
command, owner or employee of the
vessel or aircraft, a fine of not more
than fifteen per centum of the value
of the package or article in respect to
which the deficiency exists, may be
imposed upon the importing vessel or
aircraft.
and Declared Weight of Manifested
Goods. – If the gross weight of goods or
package described in the manifest or bill
of lading exceeds the declared
weight by more than ten percent
(10%), and such discrepancy was due to
the negligence of the master or pilot-in-
command, the owner, employee,
operator or agent of the importing
vessel or aircraft shall be liable for a fine
of not more than twenty percent
(20%) of the value of the package or
goods in respect to which the deficiency
exists.

DISCREPANCY WITH THE MASTER'S OR PILOT'S-IN-COMMAND REPORT

In TCCP, vessel or aircraft shall be fined in a sum not exceeding P5,000.00; In
CMTA the owner, operator or agent of the vessel or aircraft shall be liable for a fine
of not less than one hundred thousand pesos (P100,000.00) but not more than
three hundred thousand pesos (P300,000.00).

SECTION 2524. Delivery of Cargo Not
Agreeing With Master’s or Pilot’s in
Command Report. — When a vessel or
aircraft arriving from a foreign port is
compelled by necessity to put into
another port than the port of her
destination and permission is granted
by the Collector for the unlading of the
vessel or aircraft or the delivery of any
part of her cargo and it shall be found
that the delivery of the cargo does not
agree with the master’s or pilot’s in
command report, and the discrepancy is
not satisfactorily explained, the vessel
or aircraft shall be fined in a sum not
exceeding five thousand pesos.
Sec. 1415. Discrepancy With the
Master's or Pilot's-in-Command Report. –
When a vessel or aircraft arriving from a
foreign port is compelled by necessity to
unload in another port other than the
port of entry and permission is granted
by the District Collector for the
unloading of the vessel or aircraft or the
delivery of any part of the cargo and it
shall be found that there is discrepancy
between the cargo unloaded and the
report of the master or the pilot-in-
command and such discrepancy is not
satisfactorily explained, the owner,
operator or agent of the vessel or
aircraft shall be liable for a fine of not
less than one hundred thousand pesos
(P100,000.00) but not more than three
hundred thousand pesos
(P300,000.00).

FAILURE TO REPORT FRAUD

In TCCP, Any master, pilot in command or other officer, owner or agent of any
vessel or aircraft trading with or within the Philippines and any employee of the
Bureau of Customs shall be punished by a fine of not more than P2,000.00 or by
imprisonment for not more than (1) year, or both.
In CMTA, a requirement that the fraud “result in the loss or diminution of customs
revenue” was expressly provided and the persons enumerated except the BOC
employee (in TCCP) shall sufer imprisonment ranging from (6) months and (1)
day to (1) year and fine ranging from (P100,000.00) to (P300,000.00). It was
added that if the ofender is a foreigner, the ofender shall be deported after
serving the sentence. If the ofender is a public officer or employee, the ofender
shall sufer additional penalty of perpetual disqualification to hold public
office, to vote and to participate in any election. All the benefits due from
service in the government, including the separation and retirement benefits, shall
be forfeited.

SECTION 3603. Failure to Report Fraud.
— Any master, pilot in command or
other officer, owner or agent of any
vessel or aircraft trading with or within
the Philippines and any employee of the
Bureau of Customs, who, having
cognizance of any fraud upon the
customs revenue, shall fail to report all
information relative thereto to the
Collector, as by law required, shall be
punished by a fine of not more than
two thousand pesos or by
imprisonment for not more than one
year, or both.
Sec. 1416. Failure to Report Fraud. – A
master, pilot-in-command or other
officer, owner or agent of any vessel or
aircraft trading with or within the
Philippines who has knowledge of the
commission of fraud that shall result in
the loss or diminution of customs
revenue but fails to report all
information relative thereto to the
District Collector shall be penalized with
imprisonment of not less than six (6)
months and one (1) day but not more
than one (1) year and shall be liable for
a fine of not less than one hundred
thousand pesos (P100,000.00) but not
more than three hundred thousand
pesos (P300,000.00). If the ofender is
a foreigner, the ofender shall be
deported after serving the sentence. If
the ofender is a public officer or
employee, the ofender shall sufer
additional penalty of perpetual
disqualification to hold public office,
to vote and to participate in any
election. All the benefits due from
service in the government, including the
separation and retirement benefits, shall
be forfeited.

FALSE STATEMENT OF VESSEL'S OR AIRCRAFT'S DESTINATION

In TCCP, the vessel or aircraft shall be fined not more than P5,000.00.
In CMTA, the owner or operator of such vessel or aircraft shall be fined ranging
from (P100,000.00) to (P300,000.00).

SECTION 2528. False Statement of Sec. 1417. False Statement of Vessel's

Vessel’s or Aircraft’s Destination. — or Aircraft's Destination. – When the
When the master or pilot in command of
a vessel or aircraft laden with articles
shall make a false statement as to the
next destination of such vessel or
aircraft, when information concerning
the same is required of him by a
customs official, such vessel or aircraft
shall be fined in a sum not exceeding
five thousand pesos; and the
circumstances that a vessel or aircraft
after clearing for a certain port of
destination goes to some other port, not
being impelled to do so by necessity,
shall be prima facie proof that the
original statement of the vessel’s or
aircraft’s actual destination was false.
master or pilot-in-command of a vessel
or aircraft loaded with goods shall make
a false statement as to the next
destination of such vessel or aircraft
when that information is required by a
customs officer, the owner or operator of
such vessel or aircraft shall be liable for
a fine of not less than one hundred
thousand pesos (P100,000.00) but not
more than three hundred thousand
pesos (P300,000.00).
The arrival of a vessel or aircraft at a
diferent port other than the one it had
been originally authorized and cleared
for without having been impelled to do
so by necessity, shall be prima facie
proof that the original statement of the
actual destination of the vessel or
aircraft was false.

AFFIXING SEALS
In TCCP, the act punishable was the “breaking” while in CMTA it includes “affixing
or attaching without authority”.
In the former the vessel or aircraft shall be fined in a sum not exceeding
P5,000.00 for each seal so broken or destroyed; while in the latter the person
liable shall sufer imprisonment ranging from (6) months and (1) day to (1)
year and fine ranging from (P100,000.00) to (P300,000.00). It was added that if
the ofender is a foreigner, the ofender shall be deported after serving the
sentence. If the ofender is a public officer or employee, the ofender shall sufer
additional penalty of perpetual disqualification to hold public office, to vote
and to participate in any election.

SECTION 2525. Breaking of Seal
Placed by Customs Official. — If any seal
placed by a customs official upon any
vessel or aircraft or compartment
thereof, or upon any box, trunk or other
package of article on board any vessel
or aircraft is broken or destroyed, the
vessel or aircraft shall be fined in a sum
not exceeding five thousand pesos
for each seal so broken or destroyed.
SECTION 2526. Breaking of Lock or
Fastening Placed by Customs Official. —
If any lock or other fastening device
placed by a customs official upon any
hatch door, or other means of
communication with the hold of a vessel
Sec. 1418. Affixing Seals. – Any person
who, without authority, affixes or
attaches a customs seal, fastening, or
any mark, or fastening purporting to be
a customs seal, to any vessel, aircraft,
vehicle, warehouse, or package, shall be
penalized with imprisonment of not less
than six (6) months and one (1) day
but not more than one (1) year, and
shall be liable for a fine of not less than
one hundred thousand pesos
(P100,000.00) but not more than three
hundred thousand pesos
(P300,000.00).
If the ofender is a foreigner, the
ofender shall be deported after serving
the sentence. If the ofender is a public
or aircraft, or other part thereof, for the officer or employee, the ofender shall
security of the same during the sufer additional penalty of perpetual
nighttime, shall be unlawfully opened, disqualification to hold public office,
broken or removed, or if any of the to vote and to participate in any
articles contained in the hold or in other election.
compartments so secured shall be
clandestinely abstracted and landed,
the vessel or aircraft shall be fined in a
sum not exceeding five thousand pesos.

SECTION 704. Seal of Collector of

Customs. — In the office of the Collector
of a collection district there shall be
kept a seal of such design as the
Commissioner shall describe, with the
approval of the department head, with
which shall be sealed all documents and
records requiring authentication in such
office.

BREAKING OF SEAL PLACED BY CUSTOMS OFFICERS

In TCCP, the vessel or aircraft shall be fined not more than P5,000.00 for each
broken or destroyed seal.
In CMTA, the owner or operator or agent of such vessel or aircraft shall be fined
ranging from (P100,000.00) to (P300,000.00) for each broken or destroyed seal.

SECTION 2525. Breaking of Seal Sec. 1419. Breaking of Seal Placed by

Placed by Customs Official. — If any seal
placed by a customs official upon any
vessel or aircraft or compartment
thereof, or upon any box, trunk or other
package of article on board any vessel
or aircraft is broken or destroyed, the
vessel or aircraft shall be fined in a sum
not exceeding five thousand pesos
for each seal so broken or destroyed.
Customs Officers. – If any seal placed by
a customs officer upon any vessel or
aircraft or compartment thereof, or upon
any box, trunk or other package of
goods on board is broken, the owner,
operator, or agent of the vessel or
aircraft shall be liable for a fine of not
less than one hundred thousand pesos
(P100,000.00) but not more than three
hundred thousand pesos (P300,000.00)
for each broken or destroyed seal.

BREAKING OF LOCK OR FASTENING PLACED BY CUSTOMS OFFICERS

In TCCP, the vessel or aircraft shall be fined not more than P5,000.00.
In CMTA, the owner or operator or agent of such vessel or aircraft shall be fined
ranging from (P100,000.00) to (P300,000.00).

SECTION 2526. Breaking of Lock or Sec. 1420. Breaking of Lock or

Fastening Placed by Customs Official. —
If any lock or other fastening device
placed by a customs official upon any
hatch door, or other means of
communication with the hold of a vessel
Fastening Placed by Customs Officers. –
If any lock or other fastening device
placed by a customs officer upon any
hatch door, or other means of
communication in the hold of a vessel or
or aircraft, or other part thereof, for the
security of the same during the
nighttime, shall be unlawfully opened,
broken or removed, or if any of the
articles contained in the hold or in other
compartments so secured shall be
clandestinely abstracted and landed,
the vessel or aircraft shall be fined in a
sum not exceeding five thousand
pesos.
aircraft, or other part thereof for the
security of the same during the night
time, is unlawfully opened, broken or
removed, or if any of the goods
contained in the hold or in the other
compartments so secured is
clandestinely abstracted and landed, the
owner, operator, or agent of the vessel
or aircraft shall be liable for a fine of not
less than one hundred thousand pesos
(P100,000.00) but not more than three
hundred thousand pesos
(P300.000.00).

BREAKING OF LOCK OR FASTENING PLACED BY CUSTOMS OFFICERS

In TCCP, the person liable shall be punished by a fine of not more than P1,000.00
for altering, defacing or obliterating such distinctive mark on: any package of
warehoused articles.
In CMTA, the person liable shall be fined ranging from (P100,000.00) to
(P300,000.00) for willfully removing, breaking, injuring, defacing or altering
without authority such customs seal or other fastening or mark placed upon:
vessel, vehicle or warehouse or package.

SECTION 3607. Alteration of Marks on Sec. 1421. Removal, Breakage, and

Any Package of Warehoused Articles. —
Any person who alters, defaces or
obliterates any distinctive mark placed
by a customs official on any package of
warehoused articles shall be liable to
fine of not more than one thousand
pesos.
Alteration of Marks. – Any person who,
without authority, willfully removes,
breaks, injures, defaces or alters any
customs seal or other fastening or mark
placed upon any vessel, vehicle, on land,
sea or air, warehouse or package
containing merchandise or baggage in
bond or in customs custody, shall be
punished with the penalty prescribed in
Section 1420 hereof.

UNAUTHORIZED WITHDRAWAL OF IMPORTED GOODS FROM BONDED WAREHOUSE

In TCCP, the person liable shall be punished by a fine of not more than P1,000.00
or by imprisonment for not more than (1) year, or both for fraudulently
removing or fraudulently concealing or aiding or abetting any such removal or
concealment.
In CMTA, the person liable shall be liable for surcharge of (50%) of duties,
taxes, customs fees, and charges, found to be due and unpaid which shall be
added to the duties, taxes and charges due on the goods withdrawn. If the
delinquency lasts for more than (1) year, the surcharge shall be increased by
(25%) of the unpaid duties and taxes annually. Further, where the withdrawal
is attended with fraud, such as when a fake or altered withdrawal permit is
submitted, the warehouse operator shall be held liable without prejudice to
suspension or revocation of the warehousing privileges.
PERIOD OF STORAGE IN A CUSTOMS BONDED WAREHOUSE (CBW)
The general rule under the CMTA is that goods entered for warehousing may
remain in a CBW for a fixed period of one year from the time of their arrival,
except for perishable goods where the storage period is three months from the
date of arrival, extendible (for valid reasons and upon written request) for
another three months. This is a departure from the current rule which fixes the
storage period in a CBW to a maximum one year period, regardless of whether the
goods are perishable or not. Goods not withdrawn after the expiration of the
prescribed period shall be deemed abandoned.
The Customs Commissioner, in consultation with the Secretary of Trade and
Industry, shall also establish reasonable storage period limits beyond the general
one-year period for bonded goods, the processing into finished goods of which
require a longer period based on industry standards and practice, subject to the
approval of the Secretary of Finance.
The unauthorized withdrawal of imported goods from the CBW shall be subject to a
surcharge of 50% of duties, taxes, customs fees and charges, found to be
due and unpaid. If the delinquency lasts for more than one year, the surcharge
shall be increased by 25% of the unpaid duties and taxes annually.

SECTION 3609. Fraudulent Removal or Sec. 1422. Unauthorized Withdrawal of

Concealment of Warehoused Articles. —
Any person who shall fraudulently
remove warehoused articles from any
public or private warehouse or shall
fraudulently conceal such articles in any
such warehouse, or shall aid or abet
any such removal or concealment, shall
be punished by a fine of not more than
two thousand pesos, or by
imprisonment for not more than one
year, or both.
SECTION 3005. General Provisions. —
L. The storage charges hereinbefore
prescribed accruing on cargo which has
not been withdrawn or removed from
the customs premises in due time,
made for good reasons, be reduced or
remitted by the Collector subject to the
approval of the Commissioner and of
the Auditor General: Provided, That in
case of reduction, the amount
corresponding to such reduction shall
not be in excess of 50 per cent nor
less than 10 per cent of the storage
liability of the importer or consignee.
Imported Goods from Bonded
Warehouse. – Any person who causes
the unauthorized withdrawal of imported
goods stored from a CBW shall be liable
for payment of a surcharge of fifty
percent (50%) of duties, taxes,
customs fees, and charges, found to
be due and unpaid. The amount of
surcharge shall be added to the
duties, taxes and charges due on the
goods withdrawn. If the delinquency
lasts for more than one (1) year, the
surcharge shall be increased by
twenty-five percent (25%) of the
unpaid duties and taxes annually:
Provided, That where the withdrawal is
attended with fraud, such as when a
fake or altered withdrawal permit is
submitted, the warehouse operator shall
be held liable under the pertinent
provisions of this Act, without prejudice
to the suspension or revocation of
the warehousing privileges granted
by the Bureau pursuant to this Act.

SECTION 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.

REMOVING OR REPACKING GOODS IN WAREHOUSE

In TCCP, the person liable shall be punished by a fine of not more than P1,000.00
for altering, defacing or obliterating such distinctive mark.
In CMTA, the person liable shall sufer imprisonment ranging from (6) months and
(1) day to (1) year and fine ranging from (P100,000.00) to (P300,000.00) for
fraudulently concealing, removing, or repacking merchandise or fraudulently
altering, defacing, or obliterating any mark or numbers placed or aiding or abetting
any of such acts. If the ofender is a foreigner, the ofender shall be deported
after serving the sentence. If the ofender is a public officer or employee, the
ofender shall sufer additional penalty of perpetual disqualification to hold
public office, to vote and to participate in any election. Further, the
merchandise shall be forfeited in favor of the government.

SECTION 3607. Alteration of Marks on Sec. 1423. Removing or Repacking

Any Package of Warehoused Articles. —
Any person who alters, defaces or
obliterates any distinctive mark placed
by a customs official on any package of
warehoused articles shall be liable to
fine of not more than one thousand
pesos.
Goods in Warehouse. – Any person who
fraudulently conceals, removes, or
repacks merchandise in any warehouse
or fraudulently alters, defaces, or
obliterates any mark or numbers placed
upon packages deposited in such
warehouse, or shall aid or abet any such
acts, shall be punished with the
penalties prescribed in Section 1418
hereof. Merchandise so concealed,
removed, or repacked, or packages upon
which marks, numbers or the values
thereof have been so altered, defaced,
or obliterated shall be forfeited in
favor of the government.

REMOVING GOODS FROM CUSTOMS CUSTODY

In TCCP, the person liable shall be punished by a fine of not more than P2,000.00
or by imprisonment for not more than (1) year, or both for fraudulently
removing or fraudulently concealing or aiding or abetting any such removal or
concealment.
In CMTA, the person liable who received or transported goods therein or abet or
aid the same or entered not only WAREHOUSE but may also include VESSELS or
VEHICLES warehouse or otherwise in customs custody or control, shall be liable for
penalties under Section 1401.

SECTION 3609. Fraudulent Removal or Sec. 1424. Removing Goods from

Concealment of Warehoused Articles. — Customs Custody. – Any person who
Any person who shall fraudulently enters any warehouse, or any vehicle
remove warehoused articles from any loaded with or containing merchandise
public or private warehouse or shall with intent to unlawfully remove
fraudulently conceal such articles in any
therefrom any merchandise or baggage
such warehouse, or shall aid or abet in such vessel, vehicle or warehouse or
any such removal or concealment, shall otherwise in customs custody or control,
be punished by a fine of not more than or any person who receives or transports
two thousand pesos, or by
any merchandise or baggage unlawfully
imprisonment for not more than one removed from any such vessel, vehicle
year, or both. or warehouse, or shall aid or abet such
removal, shall sufer the penalties
SECTION 3606. Breaking of Seal on Car provided in Section 1401 hereof.
or Conveyance by Land, Sea or Air. —
Any person who shall wilfully break or
destroy any seal placed by a customs
official upon any car, or other
conveyance by land, sea or air, or any
compartment thereof, shall be punished
by a fine of not more than one thousand
pesos.

FAILURE TO PAY DUTIES, TAXES AND OTHER CHARGES

In TCCP, the failure to pay the same within (10) working days from notice of
liquidation shall cause the adding of a surcharge of (5%) of the total amount
or balance liquidation.
In CMTA, the failure to pay the same within (15) days from the date of final
assessment shall cause the adding of a surcharge of (10%) of the total
assessed amount or balance. If the delinquency lasts for more than (1) year,
surcharge shall be increased to (25%) percent.

SECTION 2501. Failure to Pay
Liquidated Charges. — For failure to pay
the amount of liquidated duties, taxes
and other charges of a liquidation within
ten working days after the notice of
liquidation shall have been publicly
posted in the customhouse, a surcharge
of found upon five per centum of the
total amount or balance liquidation
shall be added thereto and collected
therewith.
Sec. 1425. Failure to Pay Duties, Taxes
and Other Charges. – For failure to pay
the duties, taxes and other charges of
an assessment within fifteen (15) days
from the date of final assessment, a
surcharge of ten percent (10%) of the
total assessed amount or balance
thereon shall be added and collected,
which surcharge shall be increased to
twenty-five percent (25%) if the
delinquency lasts for more than one (1)
year.
 BREACH OF SECURITY
In TCCP, the term used was BOND. In Black’s Law Dictionary it was defined as one
which is intended to protect the assured from liability for damages or to protect the
persons damaged by injuries occasioned by the assured as specified, when such
liability should accrue, and be imposed by law, as by a court, as distinguished from
an indemnity bond, whose purpose is only to indemnify the assured against actual
loss by way of reimbursement for moneys paid or which must be paid. Fenton v.
Poston, 114 Wash. 217, 195 P. 31, 33.
In CMTA, the term used was SECURITY. Thus, it is broader wherein the debtor
could deposit any of the security authorized to be posted. Black’s Law Dictionary
defines the same as bonds, notes, certificates of indebtedness, and other
negotiable or transferable instruments evidencing the public debt of a state or
government.

SECTION 2506. Breach of Bond. — Sec. 1426. Breach of Security. – Upon

Upon breach of a bond required to be
filed under the tarif and customs laws,
the Collector subject to the approval of
the Commissioner, may accept in
satisfaction thereof a smaller sum than
that mentioned in the penalty clause of
the bond, but in no case less than the
amount necessary to indemnify the
Government for the damage occasioned
by such breach.
breach of security required to be filed
under this Act, the District Collector,
subject to the approval of the
Commissioner, may accept in
satisfaction thereof a smaller stun than
that mentioned in the penalty clause of
the security, but in no case less than the
amount necessary to indemnify the
government for the damage occasioned
by such breach.

CONCEALMENT OR DESTRUCTION OF EVIDENCE OF FRAUD.

In TCCP, the person liable shall be punished by a fine of not more than P2,000.00
or by imprisonment for not more than (1) year, or both.
In CMTA, person liable shall sufer imprisonment ranging from (3) years and (1)
day to (6) years and fine ranging from (P300,000.00) to (P1,000,000.00).

SECTION 3605. Concealment or Sec. 1428. Concealment or Destruction

Destruction of Evidence of Fraud. — Any
person who wilfully conceals or
destroys, any invoice, book or paper
relating to any article liable to duty,
after an inspection thereof has been
demanded by the Collector of any
Collection district, or at any time
conceals or destroys any such invoice,
book or paper for the purpose of
suppressing any evidence of fraud
therein contained, shall be punished by
a fine of not more than two thousand
pesos, or by imprisonment for not more
than one year, or both.
of Evidence of Fraud. – Any person who
willfully conceals or destroys any
invoice, book, or document relating to
any goods liable to duty after an
inspection thereof has been demanded
by the District Collector or at any time
conceals or destroys any such invoice,
book, or document for the purpose of
suppressing any evidence of fraud
therein contained, shall be penalized
with imprisonment of not less than three
(3) years and one (1) day but not
more than six (6) years and shall be
liable for a fine of not less than three
hundred thousand pesos (P300,000.00)
but not more than one million pesos
(P1,000,000.00).
 OTHER OFFENSES
The acts punishable under CMTA are more comprehensive and supplemented by
special laws. The penalties in TCCP are grossly inadequate if to be applied today.
Thus, the framers of CMTA deemed it necessary to increase penalties therefor
accordingly.
SECTION 2529. Miscellaneous
Ofenses. — The following
administrative fines shall be imposed
upon any vessel that sails or operates
under any of the circumstances
hereunder specified:
A. For sailing or operating without
proper certificate of inspection and
special permit, fifty pesos for each
offense;
B. For sailing or operating with expired
license or permit, one hundred pesos
for each offense;
C. For engaging in the business of
transporting passengers in the
coastwise trade without license or
permit, one hundred pesos for each
offense;
D. For navigating without sufficient life
preservers, belts or rafts required by
customs regulations, one hundred
pesos for each offense;
E. For navigating without fire-fighting
apparatus and/or medical supplies
required by customs regulations, fifty
pesos for each offense;
F. For sailing with excess passengers,
twenty pesos for each passenger in
excess of the authorized number, but in
no case less than the fare payable
by each passenger to his place of
destination;
G. For sailing with overloaded cargo,
fifty pesos for each offense in case of
vessels of fifty tons gross or less; one
hundred pesos in case of vessels of
not less than fifty tons nor more than
one hundred tons gross; and not less
than two hundred pesos nor more
than five hundred pesos in case of
vessels of one hundred tons gross or
more;
H. A vessel shall be fined in an amount
Sec. 1429. Other Ofenses. – The owner
or operator of a vessel, aircraft or train
shall be liable for a fine for the following
acts:
(a) For anchoring at any dock, pier,
wharf, quay, or bulkhead other than a
port
of entry, a fine of not less than five
hundred thousand pesos (P500,000.00)
but
not more than one million pesos
(P1,000,000.00) for overseas vessels;
(b) For dumping of garbage or slops over
the sides of the vessel within three (3)
miles from the nearest coastline, a fine
of not less than one million pesos
(P1,000,000.00) but not more than ten
million pesos (P10,000,000.00);
(c) For dumping or causing to spread
crude oil, kerosene, or gasoline in the
bay
or at the piers within three (3) miles
from the nearest coastline, a fine of not
less
than one million pesos (P1,000,000.00)
but not more than ten million pesos
(P10,000,000.00) for each ofense;
(d) For loading gasoline or any other
petroleum products at a place other
than
that designated, by the regulations, a
fine of not less than five hundred
thousand
pesos (P500,000.00) but not more than
one million pesos (P1,000,000.00) for
each ofense;
(e) For causing the emission and spread
of harmful gas, fumes and chemicals, a
fine of not less than one million pesos
(P1,000,000.00) but not more than ten
million pesos (P10,000,000.00) for
each ofense; and
(f) For transporting hazardous waste,
hereafter fixed for: radioactive waste and other toxic
(1) Anchoring at any dock, pier, wharf, substances as provided under the Basel
quay or bulkhead without rat guards, Convention and Republic Act No. 6969,
fifty pesos for coastwise vessels, and otherwise known as the "Toxic
two hundred pesos for overseas Substances and Hazardous and Nuclear
vessels; Wastes
(2) Dumping garbage or slops over the Control Act of 1990", the penalty shall
side in port, one hundred pesos; be forfeiture of the vessel in favor of
(3) Dumping or causing to spread crude the
oil, kerosene or gasoline in the bay or at government.
the piers while in port, two hundred The fines imposed herein shall be
pesos for each ofense; without prejudice to the application of
(4) Loading gasoline at a place other fines or
than that designated by the regulations, penalties provided under special
four hundred pesos for each laws and regulations.
offense.

VIOLATIONS OF THIS ACT AND RULES AND REGULATIONS IN GENERAL

In TCCP, the person liable shall be punished by a fine of not more than P400.00 or
by imprisonment for not more than (6) months, or both.
In CMTA, person liable shall sufer imprisonment ranging from (30) days and (1)
day to (1) year and fine ranging from (P100,000.00) to (P300,000.00). If the
ofender is a foreigner, the ofender shall be deported after serving the sentence. If
the ofender is a foreigner, the ofender shall be deported after serving the
sentence. If the ofender is a public officer or employee, the ofender shall be
disqualified from holding public office, from exercising the right to vote and to
participate in any public election for (10) years.

SECTION 3610. Violation of Tarif and
Customs Laws and Regulations in
General. — Any person who violates a
provision of this Code or regulations
pursuant thereto, for which delinquency
no specific penalty is provided, shall be
punished by a fine of not more than
four hundred pesos or by
imprisonment for not more than six
months, or both.
Sec. 1430. Violations of this Act and
Rules and Regulations in General. – Any
person who violates any other provision
of this Act or the rules and regulations
issued pursuant thereto, shall be
penalized with imprisonment of not less
thirty (30) days and one (1) day but
not more than one (1) year, or be liable
for a fine of not less than one hundred
thousand pesos (P100,000.00) but not
more than three hundred thousand
pesos (P300,000.00), or both. If the
ofender is a foreigner, the ofender shall
be deported after serving the sentence.
If the ofender is a public officer or
employee, the ofender shall be
disqualified from holding public office,
from exercising the right to vote and to
participate in any public election for ten
(10) years.

STATUTORY OFFENSES OF OFFICERS AND EMPLOYEES

In TCCP, the person liable shall be punished by a fine ranging P400.00 to
P10,000.00 or by imprisonment for ranging (6) months to (1) year, or both.
In CMTA, person liable shall sufer imprisonment ranging from (6) years and (1)
day to (12) years and fine ranging from (P100,000.00) to (P300,000.00),
perpetual disqualification to hold public office, from exercising the right to vote
and to participate in any public election and fine ranging (P500,000.00) to
(P1,000,000.00). All the benefits due from service in the government, including
separation and retirement benefits shall also be forfeited.

SECTION 3604. Statutory Ofense of CHAPTER 2 PENALTIES IMPOSED UPON

Officials and Employees. — Every
official, agent or employee of the
Bureau of Customs who is guilty of any
delinquency hereinbelow specified or
who falls within any of the classes
hereinbelow indicated shall be punished
by a fine of not less than four hundred
pesos nor more than ten thousand
pesos or by imprisonment for not less
than six months nor more than five
years, or both.
A. Those guilty of extortion of willful
oppression under color of law.
B. Those who knowingly demand other
or greater sums than are authorized by
law or receive any fee, compensation or
reward, except as by law prescribed, for
the performance of any duty.
C. Those who wilfully neglect to give
receipts, as by law required, for any
sum collected in the performance of
duty, or who wilfully neglect to perform
any of the duties enjoined by law.
D. Those who conspire or collude with
another or others to defraud the
customs revenue or otherwise violate
the law.
E. Those who wilfully make opportunity
for any person to defraud the customs
revenue or who do or fail to do any act
with intent to enable any person to
defraud said revenue.
F. Those who negligently or designedly
permit the violation of the law by any
other person.
G. Those who make or sign any false
entry or entries in any book, or make or
sign any false certificate or return in any
case where the law requires the making
BUREAU EMPLOYEES
Sec. 1431. Statutory Ofenses of
Officers and Employees. – Every officer,
agent, or employee of the Bureau or of
any other agency of the government
charged with the enforcement of the
provisions of this Act, who shall be found
guilty of any delinquency as described
below shall be penalized with
imprisonment of not less than six (6)
years and one (1) day but not more
than twelve (12) years, and perpetual
disqualification to hold public office,
from exercising the right to vote and to
participate in any public election and a
fine of not less than five hundred
thousand pesos (P500,000.00), but not
more than one million pesos
(P1,000,000.00):
(a) Extortion or willful oppression under
color of law;
(b) Knowingly demanding other or
greater sums that are authorized by law
or receive any fee, compensation, or
reward except as by law prescribed, for
the performance of any duty;
(c) Willfully neglecting to give receipts,
as required by law, for any sum
collected in the performance of duty, or
who willfully neglect to perform any of
the duties enjoined bylaw;
(d) Conspiring or colluding with another
or others to defraud the customs
revenue or otherwise violate the law;
(e) Providing an opportunity for any
person to defraud the government of
customs revenue or failing to do any act
with the intent to enable any person to
defraud the government of customs
by them of such entry, certificate or
return.
H. Those who, having knowledge or
information of a violation of the tarif
and customs law or any fraud
committed on the revenue collectible by
the Bureau of Customs, fail to report
such knowledge or information to their
superior official or to report as
otherwise required by law.
I. Those who, without the authority of
law, demand or accept or attempt to
collect directly or indirectly as payment
or otherwise, any sum of money or
other thing of value for the compromise,
adjustment, or settlement of any charge
or complaint for any violation or alleged
violation of law.
revenue;
(f) Negligently or designedly permitting
the violation of the law by any other
person;
(g) Making or signing for any false entry
or entries in any book, making or signing
any false certificate or return in any case
where the law requires the making by
them of such entry certificate or return;
(h) Failing to report knowledge or
information to their superior officer
about an act or acts of fraud committed
in revenue collection as required by law;
(i) Demanding or accepting or
attempting, without authority, to collect
directly or indirectly as payment or
otherwise, any sum of money or other
thing of value for the compromise,
adjustment, or settlement of any charge
or complaint for any violation or alleged
violation of law;
(j) Unlawfully disclosing confidential
information gained during any
investigation or audit, or using such
information for personal gain or to the
detriment of the government, the
Bureau, or third parties.
All the benefits due from service in the
government, including separation and
retirement benefits, of an officer, agent,
or employee of the Bureau or of any
other agency of the government
charged with the enforcement of the
provisions of this Act found guilty of the
foregoing violations shall be forfeited.

FAILURE TO REPORT FRAUD

In TCCP, the person liable shall be punished by a fine not more than P2,000.00 or
by imprisonment for not more than (1) year, or both.
In CMTA, person liable shall sufer imprisonment ranging from (6) years and (1)
day to (12) years and fine ranging from (P100,000.00) to (P300,000.00),
perpetual disqualification to hold public office, from exercising the right to vote
and to participate in any public election and fine ranging (P500,000.00) to
(P1,000,000.00). All the benefits due from service in the government, including
separation and retirement benefits shall also be forfeited.

SECTION 3603. Failure to Report Fraud. Sec. 1432. Failure to Report Fraud. –
— Any master, pilot in command or Any employee of the Bureau who has
other officer, owner or agent of any knowledge of any fraud committed
vessel or aircraft trading with or within
the Philippines and any employee of the
Bureau of Customs, who, having
cognizance of any fraud upon the
customs revenue, shall fail to report all
information relative thereto to the
Collector, as by law required, shall be
punished by a fine of not more than
two thousand pesos or by
imprisonment for not more than one
year, or both.
against the government pertaining to
customs revenue, and who fails to report
all information relative thereto to the
District Collector, shall be penalized with
imprisonment of not less than six (6)
years and one (1) day but not more
than twelve (12) years and a fine of not
less than five hundred thousand pesos
(P500,000.00) but not more than one
million pesos (1,000,000.00). The
ofender shall sufer the additional
penalty of perpetual disqualification
to hold public office, to vote and to
participate in any election. All the
benefits of the ofender due from service
in the government, including separation
and retirement benefits, shall be
forfeited.

Liability for Other Ofenses

In CMTA, the penalties imposed under the same shall be without prejudice to the
application of fines or penalties provided under Chapter 1 of this title and
special laws and regulations.

Not included in TCCP. Sec. 1433. Liability for Other Ofenses.

– The fines and penalties imposed in this
chapter shall be without prejudice to the
application of fines or penalties provided
under Chapter 1 of this title and
special laws and regulations.

PERIOD OF STORAGE IN CUSTOMS BONDED WAREHOUSE

TCCP provides a period of 2 years extendible for not more than 1 year while CMTA provides
for a non-extendible period of 1 year but, in case of perishable goods, 3 months.

SECTION 1908. Limit to Period Of Storage in SECTION 811. 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.
CBWs. — Goods entered for warehousing
may remain in a CBW for a maximum
period of one (1) year from the time
of its arrival thereat. For perishable
goods, the storage period shall be
three (3) months from the date of
arrival, extendible for valid reasons,
and upon written request, to another
three (3) months. Goods not withdrawn
after the expiration of the prescribed
period shall be deemed as abandoned,
as provided under Section 1129 of this
Act.
 SETTLEMENT OF CASE BY PAYMENT OF FINE OR REDEMPTION
In TCCP, settlement may be made by paying a fine or the appraised value of
the property or the fine imposed upon him by the Commissioner after appeal.
In CMTA, settlement may be made by payment of a fine or redemption of the
forfeited goods but no settlement can be accepted if the case is already on
appeal or when there is fraud or when the discrepancy in duties and taxes
to be paid between what is determined and what is declared amounts to
more than thirty percent (30%)

SECTION 2307. Settlement of Case by SECTION 1124. Settlement of Pending

Payment of Fine or Redemption of
Forfeited Property. — If, in any seizure
case, the owner or agent shall, while
the case is yet before the Collector of
the district of seizure, pay to such
Collector the fine imposed by him or,
in case of forfeiture, shall pay the
appraised value of the property, or,
if after appeal of the case, he shall
pay to the Commissioner the
amount of the fine as finally
determined by him, or, in case of
forfeiture, shall pay the appraised value
of the property, such property shall be
forthwith surrendered, and all liability
which may or might attach to the
property by virtue of the ofense which
was the occasion of the seizure and all
liability which might have been incurred
under any bond given by the owner or
agent in respect to such property shall
thereupon be deemed to be discharged.
Redemption of forfeited property shall
not be allowed in any case where the
importation is absolutely prohibited or
where the surrender of the property to the
person offering to redeem the same would
be contrary to law.
Seizure Case by Payment of Fine or
Redemption of Forfeited Goods. —
Subject to the approval of the
Commissioner, the District Collector may
allow the settlement by payment of
fine or the redemption of forfeited
goods, during the course of the
forfeiture proceeding. However, the
Commissioner may accept the
settlement by redemption of any
forfeiture case on
appeal. No settlement by payment
of fine shall be allowed when there
is fraud or when the discrepancy in
duties and taxes to be paid between
what is determined and what is
declared amounts to more than
thirty percent (30%).
In case of settlement by payment of
fine, the owner, importer, exporter, or
consignee or agent shall ofer to pay a
fine equivalent to thirty percent (30%)
of the landed cost of the seized
goods. In case of settlement by
redemption, the owner, importer,
exporter, or consignee or agent shall
ofer to pay the redeemed value
equivalent to one hundred percent
(100%) of the landed cost.

PERIOD TO RECLAIM ABANDONED GOODS

SECTION 1803. Right to Reclaim SECTION 1130, second paragraph.

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,
Treatment and Disposition of Abandoned
Goods.
If the Bureau has not disposed of the
abandoned goods, the owner or importer
of goods impliedly abandoned may, at
any time within thirty (30) days
after the lapse of the prescribed
taxes and other charges as well as all period to file the declaration, reclaim
expenses incurred as a consequence of the goods provided that all legal
the abandonment, are paid. requirements have been complied with
and the corresponding duties, taxes and
other charges, without prejudice to
charges and fees due to the port or
terminal operator, as well as expenses
incurred have been paid before the
release of the goods from customs
custody.

MODE OF DISPOSITION OF PROPERTIES IN CUSTOMS CUSTODY

The mode of sale of sale provided in TCCP is public auction after 10 days
notice while CMTA provides that the goods may either be donated to another
government agency or declared for official use of the Bureau or be sold at
a public auction within thirty (30) days after a ten (10)-day notice.

SECTION 2603. Mode of Sale. — In the SECTION 1141. Mode of Disposition. —

absence of any special provision, property
subject to sale by the customs authorities
shall be sold at public auction after ten
days' notice conspicuously posted at the
port and such other advertisement as may
appear to the Collector to be advisable in the
particular case.
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 foodstufs,
clothing materials or medicines may be
donated to the DSWD.

PERSONS DISQUALIFIED TO PARTICIPATE IN AUCTION SALE

Under the TCCP, only the customs officials or employee are disqualified but
CMTA also includes the spouses and relatives within the fourth degree of
consanguinity or affinity of such officials and employees

SECTION 2604. Disqualification to SECTION 1142. Disqualification to Participate

Participate in Auction Sale. — No
customs official or employee shall be
allowed to bid directly or indirectly, in
any customs auction.
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.

PERIOD OF DISPOSITION OF PERISHABLE GOODS

The period for disposition of perishable in TCCP is not exceeding three days after the
public notice while under CMTA, the period is within five (5) days, after a three (3)-day
 notice.

SECTION 2607. Disposition of Articles Liable SECTION 1144. Disposition of Perishable

to Deterioration. — Perishable articles shall Goods. — Perishable goods as defined under
not be deposited in a bonded warehouse; this Act when certified as such by the Bureau,
and, if not immediately entered for export or may be sold at a public auction within five (5)
for transportation from the vessel or aircraft in days, after a three (3)-day notice.
which imported or entered for consumption
and the duties and taxes paid thereon, such
articles may be sold at auction, after such
public notice, not exceeding three days, as
the necessities of the case permit.

MODE OF DISPOSITION OF UNSOLD ARTICLES FOR WANT OF BIDDERS

Under the TCCP, unsold articles for want of bidders may be disposed to the best
advantage of the government or given to government charitable institutions but
under CMTA, it may disposed by sale at public auction or donated to another
government agency or declared for official use of the Bureau, if still unsold
after at least 2 public biddings, or be subject to re-export or negotiotiated sale
if not suitable for official use or donation.

SECTION 2610. Disposition of Unsold SECTION 1149. Disposition of Unsold

Articles for Want of Bidders. — When any
article remains unsold for want of bidders or
for lack of an acceptable bid, then the
Collector shall, subject to the approval of the
department head, dispose of such article to
the best advantage of the government in a
private sale, and in case the same cannot be
sold, then such articles shall be given to
government charitable institutions
through the Social Welfare Administration.
Goods for Want of Bidders. — Goods
subject to sale at public auction by
the Bureau shall be sold at a price
not less than the landed cost of the
goods adjusted for normal
depreciation. Goods which remain
unsold after at least two (2) public
biddings either due to the lack of bidders
or for the lack of an acceptable bid, may
be donated to another government
agency or declared for official use of
the Bureau. If the goods are not
suitable either for official use or
donation, these may be subject to re-
export as government property or
sold through a negotiated sale.

ADVANCE CUSTOMS RULING

The CMTA incorporated a new provision empowering the Commissioner to render
advance ruling on tarif classification and valuation.

Not provided in TCCP SECTION 1100. Classification Ruling. —

An importer or exporter may file a
written application for an advance
ruling on the tariff classification of
goods with the
Commission. The Commission shall
render a ruling within thirty (30) days
 from receipt
of a properly documented application.

SECTION 1101. Valuation Ruling. — An

importer or exporter may file a written
application for an advance valuation
ruling on the proper application of a
specific method on customs valuation of
specific goods as prescribed in Title VII,
Chapter 1 of
this Act.

RELIEF CONSIGNMENT
In TCCP, relief goods are not entirely exempt from taxes and duties but in CMTA,
they are exempt and treated as a matter of priority and subject to a
simplified customs procedure

SECTION 105. Conditionally Free SECTION 120. Relief Consignment. —

Importations. — The following articles Goods such as food, medicine,
shall be exempt from the payment equipment and materials for shelter,
of import donated or leased to government
duties upon compliance with the institutions and accredited private
formalities prescribed in, or with the entities for free distribution to or use of
regulations which shall be promulgated victims of calamities shall be treated and
by the Commissioner of Customs with entered as relief consignment.
the approval of the department head: Upon declaration of a state of calamity,
u. Articles donated to public or clearance of relief consignment shall be
private institutions established solely a matter of priority and subject to a
for educational, scientific, cultural, simplified customs procedure. The
charitable, health, relief, Bureau shall provide for:
philanthropic or religious purposes, (a) Lodging of a simplified goods
for free distribution among, or declaration or of a provisional or
exclusive use of, the needy. incomplete goods declaration
subject to completion of the
declaration within a specified
period;
(b) Lodging, registering and
checking of the goods declaration
and supporting documents prior to
the arrival of the goods, and their
release upon arrival;
(c) Clearance beyond the
designated hours of business or
away from customs offices and
waiver of any corresponding
charges; and
(d) Examination and/or sampling of
goods only in exceptional
circumstances.
 The Department of Finance (DOF) and
the Department of Social Welfare and
Development (DSWD) shall jointly issue
the rules and regulations for the
implementation of this provision.

SECTION 121. Duty and Tax Treatment.

— Relief consignment, as defined in
Section 120, imported during a state of
calamity and intended for a specific
calamity area for the use of the calamity
victims therein, shall be exempt from
duties and taxes.

SAFEGUARD DUTY
A new provision on safeguard duty is imposed in CMTA.

Not provided in TCCP SECTION 712. Safeguard Duty. —

The provisions of Republic Act No. 8800,
otherwise known as the "Safeguard
Measures Act", are hereby adopted.

ABANDONMENT OF GOODS

SECTION 1801. Abandonment, Kinds SECTION 1129. Abandonment, Kinds

and Efect of. — Abandonment is and Efects of. — Imported goods are
express when it is made direct to thedeemed abandoned under any of
Collector by the interested party in the following circumstances: (a)
writing, and it is implied when, fromWhen the owner, importer, or consignee
the action or omission of the interested
of the imported goods expressly
party, an intention to abandon can besignifies in writing to the District
clearly inferred. The failure of any Collector the intention to abandon the
interested party to file the import same; or (b) When the owner, importer,
entry within fifteen days or any consignee, or interested party after due
extension thereof from the
notice, fails to file the goods
discharge of the vessel or aircraft, declaration within the prescribed
shall be implied abandonment. An period in Section 407 of this Act:
implied abandonment shall not be Provided, That the term goods
efective until the article is declared by
declaration shall include provisional or
the Collector to have been abandoned incomplete goods declaration deemed
after notice thereof is given to the valid by the Bureau as provided in
interested party as in seizure cases.Section 403 of this Act. For this purpose,
Any person who abandons an it is the duty of the District Collector to
imported article renounces all his post a list of all packages discharged
interests and property rights
and their consignees, whether
therein. electronically or physically in the District
Office, or send a notice to the consignee
SECTION 1802. Abandonment of within five (5) days from the date of
Imported Articles. — The owner or discharge; or (c) Having filed such
importer of any articles may, within goods declaration, the owner,
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.
importer, consignee or interested
party after due notice, fails to pay
the assessed duties, taxes and
other charges thereon, or, if the
regulated goods failed to comply
with Section 117 of this Act, within
fifteen (15) days from the date of
final assessment: Provided, That if
such regulated goods are subject of an
alert order and the assessed duties,
taxes and other charges thereof are not
paid within fifteen (15) days from
notification by the Bureau of the
resolution of the alert order, the same
shall also be deemed abandoned; or (d)
Having paid the assessed duties,
taxes and other charges, the owner,
importer or consignee or interested
party after due notice, fails to claim
the goods within thirty (30) days
from payment. For this purpose, the
arrastre or warehouse operator shall
report the unclaimed goods to the
District Collector for disposition pursuant
to the provisions of this Act; or (e) When
the owner or importer fails to claim
goods in customs bonded
warehouses within the prescribed
period. The due notice requirement
under this section may be provided by
the Bureau through electronic notice or
personal service: Provided, That for non-
regular importers, notification shall be
by registered mail or personal service.
For this purpose, the accreditation of
importers, exporters, and other third
parties shall include provision for
mandatory receipt of electronic notices.
SECTION 1130. Treatment and
Disposition of Abandoned Goods. —
Expressly abandoned goods under
paragraph (a) of Section 1129 of
this Act shall ipso facto be deemed
the property of the government and
shall be disposed of in accordance with
the provisions of this Act. If the Bureau
has not disposed of the abandoned
goods, the owner or importer of

CHIEF OFFICIALS OF THE BUREAU
SECTION 601. Chief Officials of Bureau
of Customs. — The Bureau of Customs
shall have one chief and one assistant
chief, to be known respectively at the
Commissioner (hereinafter known as
the “Commissioner”) and Assistant
Commissioner of Customs, who shall
each receive an annual compensation in
accordance with the rates prescribed by
existing laws. The Assistant
Commissioner of Customs shall be
appointed by the proper department
head.
CONDITIONALLY-FREE AND DUTY-EXEMPT IMPORTATIONS
SECTION 105. SECTION 800
bb. Coffins or urns containing human q. Coffins or urns containing human
goods impliedly abandoned may, at
any time within thirty (30) days
after the lapse of the prescribed
period to file the declaration,
reclaim the goods provided that all
legal requirements have been complied
with and the corresponding duties, taxes
and other charges, without prejudice to
charges and fees due to the port or
terminal operator, as well as expenses
incurred have been paid before the
release of the goods from customs
custody. When the Bureau sells
goods which have been impliedly
abandoned, although no offense has
been discovered, the proceeds of
the sale, after deduction of any
duty and tax and all other charges
and expenses incurred as provided
in Section 1143 of this Act, shall be
turned over to those persons entitled
to receive them or, when this is not
possible, held at their disposal for a
specified period. After the lapse of the
specified period, the balance shall be
transferred to the forfeiture fund as
provided in Section 1151 of this Act.
SECTION 200. Chief Officials of the
Bureau. — The Bureau shall be headed
by a Commissioner and shall be assisted
by at least four (4) but not more than six
(6) Deputy Commissioners.
The Commissioner shall be appointed by
the President of the Philippines.
The Deputy Commissioners shall also be
appointed by the President and at least
majority of whom shall come from the
ranks of the Bureau.
remains, bones or ashes, and all articles
for ornamenting said coffins or urns and
accompanying same; used personal and
household efects, not merchandise, of
deceased persons, upon identification
as such, satisfactory to the Collector of
Customs.
No limit to the value of personal and household value herein stated shall be adjusted to
effects owned by the deceased.
No definition is provided.
Animals and plants for scientific,
experimental, propagation, botanical,
breeding, zoological and national
defense purposes: Provided, That no
live trees, shoots, plants and moss,
and bulbs, tubers and seeds for
propagation purposes may be
imported under this section, except by
order of the Government of the
Philippines or other duly authorized
institutions: Provided, further, That
the free entry of animals for breeding
purposes shall be restricted to animals
of a recognized breed, duly registered
in the book of record established for
that breed: And provided, finally, That
certificate of such record, and
pedigree of such animal duly
remains, bones or ashes, used personal
and household efects (not merchandise)
of the deceased person, except vehicles,
the FCA value of which does not exceed
one hundred fifty thousand pesos
(P150,000.00), upon identification as
such: Provided , That every three (3)
years after the efectivity of this Act, the
its present value using the CPI as
published by the PSA;
Under this provision, the law limited the
value of personal and household articles
owned by the deceased, which is exempt
from taxes and duties. The FCA value
must not exceed P150, 000.
The CMTA law specifically defined who a returning
resident is.
Section 800.
f. xxx
For purposes of this section, the
phrase "returning residents" shall
refer to nationals who have stayed
in a foreign country for a period of
at least six (6) months.
Animals, except race horses, and
plants for scientific, experimental
propagation or breeding, and for
other botanical, zoological and
national defense purposes:
Provided , That no live trees,
shoots, plants, moss and
bulbs, tubers and seeds for
propagation purposes may be
imported under this section,
except by order of the
government or other duly
authorized institutions: Provided,
however, That the free entry of
animals for breeding purposes
authenticated by the proper custodianshall be restricted to animals of
of such book of record, shall be recognized breed, duly registered
produced and submitted to the in the record or registry
Collector of Customs, together with
established for that breed, and
affidavit of the owner or importer, that
such animal is the identical animal certified
as such by the Bureau of Animal
described in said certificate of record
and pedigree. Industry (BAI): Provided, further,
That the certification of such
record, and pedigree of such
No requirement of certification from
animal duly authenticated by the
NEDA.
proper custodian of such record or
registry, shall be
submitted to the District Collector,
together with the affidavit of the
owner or importer that such
animal is the animal described in
said certificate of record and
pedigree: Provided, finally ,That
the animals and plants are
certified by the NEDA as
necessary for economic
development;

The animals and plants imported

must be certified by the NEDA as
necessary for economic
development.

Vehicles, horses, harness, bed and table
linen, table service, furniture, musical
instruments and personal efects of like
character, owned and imported by
travelers or tourists for their
convenience and comfort, upon
identification and the giving of a bond in
an amount equal to one and one-half
times the ascertained duties, taxes and
other charges thereon, conditioned for
the exportation thereof or payment of
the corresponding duties, taxes and
other charges within six months from
the date of acceptance of the import
entry: Provided, That the Collector of
Customs may extend the time for
Wearing apparel, goods of personal
adornment, toilet goods, portable tools
and instruments, theatrical costumes
and similar efects accompanying
travelers, or tourists, or arriving within a
reasonable time
before or after their arrival in the
Philippines, which are necessary and
appropriate for the wear and use of such
persons according to the nature of the
journey, their comfort and convenience:
Provided , That this exemption shall not
apply to goods intended for other
persons or for
barter, sale or hire: Provided, however,
That the Bureau may require either a
exportation or payment of duties, taxes
and other charges for a term not
exceeding six months from the
expiration of the original period.
· Vehicles, horses, harness, bed and
table linen, table service, furniture,
which are not necessary for the wear
and use of tourists and travellers are
exempted from customs duties and
taxes. Such privilege has been
abolished under the CMTA.
A bond equal to 1 ½ times the
ascertained duties, taxes and other
charges thereon, conditioned for the
exportation thereof or payment of the
corresponding duties, taxes and other
charges must be given.
written commitment or a security in an
amount equal to one hundred percent
(100%) of the ascertained duties, taxes
and other charges thereon,
conditioned for the exportation thereof
or payment of the corresponding duties,
taxes and other charges within three (3)
months from the date of acceptance of
the goods declaration: Provided, further,
That the Bureau
may extend the time for exportation or
payment of duties, taxes and other
charges for a term not exceeding three
(3) months from the expiration of the
original period.
· Only goods necessary and
appropriate for the wear and use of such
persons according to the nature of the
journey, their comfort and convenience,
are exempted from customs duties and
taxes.
1) Written commitment or 2) a security
in an amount equal to one hundred
percent (100%) of the ascertained
duties, taxes and other charges thereon,
conditioned for the exportation thereof
or payment of the corresponding duties,
taxes and other charges must be given.
Under the new law, two options are
given, a written commitment or a
security.

Articles donated to public or private m. Imported goods donated to or, for the
institutions established solely for
account of the Philippine government or
educational, scientific, cultural,
any duly registered relief organization,
charitable, health, relief, philanthropic not operated for profit, for free
or religious purposes, for free
distribution among the needy, upon
distribution among, or exclusive use of, certification by the DSWD or the
the needy. Department of Education (DepED), or
the Department of Health (DOH), as the
· The articles donated under the case may be;
old law are given to select public or
private institutions only. Goods given to · Covers two situations
the government are not exempted. o Imported goods must be donated to
No certification is needed under this or for the account of the Philippine
law. Government;
o Importation of any duly registered
relief organization, not operated for
 profit, for free distribution among the
needy, upon certification by the DSWD
or the Department of Education
(DepED), or the Department of Health
(DOH), as the case may be;

Certification by the DSWD or the

Department of Education (DepED), or
the Department of Health (DOH) is
needed if imported by any non-profit
duly registered relief organization.

AUTOMATIC REVIEW

Lack of an automatic review when the SECTION 1127. Automatic Review in

decision is adverse to the government. Forfeiture Cases. — The Commissioner
shall automatically review any decision
by the District Collector adverse to the
government. The entire records of the
case shall be elevated within five (5)
days from the promulgation of the
decision. The Commissioner shall decide
on the automatic review within thirty
(30) days, or within ten (10) days in the
case of perishable goods, from receipt of
the records. When no decision is
rendered within the prescribed period or
when a decision adverse to the
government is rendered by the
Commissioner involving goods with FOB
or FCA value of ten million pesos
(P10,000,000.00) or more, the records of
the decision of the Commissioner, or of
the District Collector under review, as
the case may be, shall be automatically
elevated within five (5) days for review
by the Secretary of Finance. The decision
issued by the Secretary of Finance,
whether or not a decision was rendered
by the Commissioner within thirty (30)
days, or within ten (10) days in the case
of perishable goods, from receipt of the
records, shall be final upon the Bureau.

SECTION 1128. Automatic Review by the

Secretary of Finance in Other Cases.— In
cases not involving protest or forfeiture,
the Commissioner shall automatically
review any decision by the District

CLAIM FOR REFUND
SECTION 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.
Collector that is adverse to the
government. The records of the case
shall be elevated to the Commissioner
within five (5) days from the
promulgation of the decision. The
Commissioner shall decide on the
automatic review within thirty (30) days
from receipt of the records, or within ten
(10) days in the case of perishable
goods. When no decision is rendered
within the prescribed period or when any
decision rendered by the Commissioner
is adverse to the government, the
records of the case under review shall be
automatically elevated within five (5)
days for the review of the Secretary of
Finance. The decision issued by the
Secretary of Finance, whether or not a
decision was rendered by the
Commissioner within thirty (30) days
from receipt of the records, or within ten
(10) days in the case of perishable
goods, shall be final upon the Bureau.
SECTION 913. Claims for Refund. — All
claims and application for refund of
duties and taxes shall be made in writing
and filed with the Bureau within twelve
(12) months from the date of
payment of duties and taxes.
If, as a result of the refund of duties, a
corresponding refund of internal revenue
taxes on the same importation becomes
due, the Bureau shall cause the refund
of internal revenue taxes in favor of the
importer after issuance of a certification
from the Commissioner of Internal
Revenue, when applicable.
The importer may file an appeal of a
denial of a claim for refund or
abatement, whether it is a full or
partial denial, with the
Commissioner within thirty (30)
days from the date of the receipt of
the denial. The Commissioner shall

STATEMENTS UNDER ENTRY DECLARATION/GOODS DECLARATION
SEC. 1304. Declaration of the Import Entry. -
Except in case of informal entry, no entry of
article shall be effected until there shall have
been submitted to the collector a written
declaration under penalties of falsification or
perjury, in such form as shall be prescribed by
the Commissioner, containing statements in
Substance as follows:
a. That the entry delivered to the Collector
contains a full account of the value or price
articles, including subject of the entry;
b. That the invoice and entry contain a just
and faithful account of the value or price 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 be defrauded of
any part of the duties lawfully due on the
articles;
c. That, to the best of the declarant's
information and belief, all the invoke and bills
of lading 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;
d. That, to the best of the declarant's
information and belief, the entries, invoices
and bill of and the declaration thereon under
penalties of falsification of perjury are in all
respects genuine and true, and were made by
the person by whom the same purpose to
have been made.
render a decision within thirty (30) days
from the receipt of all the necessary
documents supporting the application.
Within thirty (30) days from receipt of
the decision of the Commissioner, the
case may also be appealed to the CTA.
Notwithstanding the provisions in the
preceding paragraphs, the filing of
claims for refund of national internal
revenue taxes shall be governed by the
provisions provided under the NIRC of
1997, as amended.
SEC. 412. Statements to be provided in the
Goods Declaration. – No entry of imported
goods shall be allowed unless the goods
declaration has been lodged with the Bureau.
The goods declaration shall, under penalties
of falsification or perjury, contain the following
statement:
a. The invoice and goods declaration contain
and accurate and faithful account of the prices
or payable for the goods and other
adjustments to the price actually paid or
payable, 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
and taxes lawfully due on the goods; and
b. To the best of the declarant’s information
and belief, all the invoices and bills of lading or
airway bills relating to the goods are the only
ones in the existence relating to the
importation in question and that there
documents are in the same state as when they
were received by the declarant, and the
declaration thereon are all in respects genuine
and true.
Goods declaration shall be submitted
electronically pursuant to Republic Act No.
8792, otherwise known as the “Electronic
Commerce Act of 2000.” Such declarations
when printed and certified by a competent
customs officer as a faithful reproduction of
the electronic submission shall be considered
as actionable documents for purposes of
prosecuting a declarant if a declarations are
found to be fraudulent.
 PROVISIONAL GOODS DECLARATION

Sec. 403. Provisional Goods Declaration. –

Where the declarant doesn’t have all the
information or supporting documents required
to complete the goods declaration, the lodging
of a provisional goods declaration may be
allowed: Provided, that it substantially contains
the necessary information required by the
Bureau and the declarant undertakes to
complete the information or submit the
supporting documents, within forty-five (45)
days from the filing of the provisional goods
declaration, which period may be extended by
the Bureau for another forty-five (45) days for
valid reasons.
If the Bureau accepts a provisional goods
declaration, the duty treatment of the goods
shall not be different from that of goods with
complete declaration.
Goods under a provisional goods declaration
may be released upon the posting of any
required security equivalent to the amount
ascertained to be the applicable duties and
taxes.

AUDIT POWER OF THE BUREAU OF CUSTOMS

SECTION 1000. Audit and Examination of

Records. — Within three (3) years from
the date of final payment of duties and
taxes or customs clearance, as the case
may be, the Bureau may conduct an
audit examination, inspection,
verification, and investigation of records
pertaining to any goods declaration,
which shall include statements,
declarations, documents, and
electronically generated or machine
readable data, for the purpose of
ascertaining the correctness of the
goods declaration and determining the
liability of the importer for duties, taxes
and other charges, including any fine or
penalty, to ensure compliance with this
Act.

POWER TO INSPECT AND VISIT

Sec 224. Power to Inspect and Visit. –
The Commissioner or any customs
officer who is authorized in writing by
the Commissioner, may demand
evidence of payment of duties and taxes
on imported goods openly for sale of
kept in storage. In the vent that the
interested party fails to produce such
evidence within fifteen (15) days, the
goods may be seized and subjected to
forfeiture proceedings. Provided, That
during the proceeding, the interested
party shall be given the opportunity to
prove or show the source of the goods
and the payment of duties and taxes
thereon: Provided, further, That when
the warrant of seizure has been issued
but subsequent documents presented
evidencing proper payment are found to
authentic and in order, the District
Collector shall, within fifteen (15) days
from the receipt of the motion of quash
or recall the warrant, cause the
immediate release of the goods seized,
subject to clearance by the
Commissioner: Provided, finally, That the
release thereof shall not be contrary to
law.