CHAPTER 1 CUSTOMS SERVICE PROVIDERS
Section 1200. Customs Brokers and Other Service Providers. – Upon the recommendation of the Commissioner, the Secretary of Finance shall issue the necessary rules and regulations for the registration of customs brokers and the accreditation of other customs service providers to ensure compliance with this Act and the rules and regulations that shall be promulgated to implement it.
CHAPTER 2 CARRIERS, VESSELS, AND AIRCRAFTS
Section 1201. Ports Open to Vessels and Aircrafts Engaged in Foreign Trade.
Vessels and aircrafts engaged in foreign trade shall visit designated ports of entry only except as otherwise especially allowed by law:
Provided, That no existing and valid government contract covering the handling of import and export cargo shall be diminished or impaired.
Every vessel or aircraft arriving within a Customs District of the Philippines from a foreign port shall dock at the designated port of entry and shall be subject to the authority of the District Collector of the port while within its jurisdiction.
Section 1202. Control of Customs Officer Over Boarding or Leaving of Incoming Vessel and Over Other Vessel Approaching the Former.
Upon the arrival in port of any vessel engaged in foreign trade, it shall be unlawful for any person, except the pilot, consul, quarantine officers, customs officers, or other duly authorized persons, to board or leave the vessel without permission of the customs officer concerned.
It shall likewise be unlawful for any tugboat, rowboat, or other craft to go alongside such vessel and for any person so authorized to board the vessel to take any unauthorized person to board the same, or allow loitering near or alongside such vessel.
Unauthorized tugboats and other vessels shall keep away from such vessel engaged in foreign trade at a distance of not less than fifty (50) meters.
Section 1203. Documents to be Produced by the Master Upon Entry of Vessel. – Upon entry of a vessel engaged in foreign trade, the master thereof shall present the following certified documents to the customs boarding officers:
The vessel's general declaration
The original manifest of all cargoes destined for the port, to be returned with the endorsement of the boarding officers;
Three (3) copies of the original manifest, one of which, upon certification by the boarding officer as to the correctness of the copy, shall be returned to the master;
A copy of the cargo stowage plan;
Two (2) copies of the store list;
One (1) copy of the passengers list;
One (1) copy of the crew list;
The original copy of all through cargo manifest, for deposit with the customs officer who has jurisdiction over the vessel while in port;
The passengers manifest containing the names of all foreigners, in conformity with the requirements of the immigration laws in force in the Philippines;
One (1) copy of the original duplicate of fully accomplished bill of lading;
The shipping goods and register of the vessel of Philippine registry; and
Such other related documents.
Section 1204. Manifest Required of Vessel from Foreign Port.
Every vessel from a foreign port must have on board a complete manifest of all its cargoes.
All cargoes intended to be landed at a port in the Philippines must be described in separate manifests for each port of call.
Each manifest shall include the port of departure and the port of delivery with, the marks, numbers, quantity, and description of the packages and the names of the consignees.
Every vessel from a foreign port must have on board complete manifests of passengers and baggage, in the prescribed form, setting forth the destination and all particulars required by immigration laws.
Every vessel shall present to the proper customs officers upon arrival in ports of the Philippines a complete list of all sea stores then on board.
If the vessel does not carry cargo or passengers, the manifest must show that no cargo or passenger is carried from the port of departure to the port of destination in the Philippines.
A true and complete copy of the cargo manifest shall be electronically sent in advance by the shipping company, NVOCC, freight forwarder, cargo consolidator, or their agents within the cut-off period as may be determined by the Bureau before the arrival of the carrying vessel at the port of entry.
Upon arrival of the carrying vessel, the shipping company, NVOCC, freight forwarder, cargo consolidator, or their agents shall provide two (2) hard copies of the cargo manifest to the Bureau in case the port of entry is either the Port of Manila (PoM) or the Manila International Container Port (MICP), and one (1) copy only in the case of the other ports of entry.
A cargo manifest shall in no case be changed or altered after entry of vessel, except by means of an amendment, under oath, by the master, consignee or agent thereof, which shall be attached to the original manifest:
Provided, That after the invoice and/or goods declaration covering an importation have been received and recorded in the office of the appraiser, no amendment of the manifest shall be allowed, except when it is obvious that a clerical error or any other discrepancy has been committed in the preparation of the manifest, without any fraudulent intent, the discovery of which would not have been made until after examination of the importation has been completed.
Section 1205. Translation of Manifest. – The cargo manifest and each copy thereof shall be accompanied by a translation in English, if originally written in another language.
Section 1206. Manifests for the Commission on Audit and District Collector.
Upon arrival of a vessel from a foreign port, the Bureau shall provide electronic copies of the manifest to the Chairperson of the COA.
The master shall immediately present to the District Collector the original copy of the cargo manifest properly endorsed by the boarding officer, and for inspection, the ship's register, or other documents in lieu thereof, together with the clearance and other papers granted to the vessel at the port of departure for the Philippines.
Section 1207. Production of Philippine Crew.
The master of a Philippine vessel returning from abroad shall produce the entire crew listed in the vessel's shipping crew manifest.
If any member is missing, the master shall produce proof satisfactory to the District Collector that the member has died, or absconded, has been forcibly impressed into another service, or has been discharged.
In case of discharge in a foreign country, the master shall produce a certificate from the consul, vice consul, or consular agent of the Philippines there residing, showing that such discharge was effected with the consent of the aforesaid representative of the Philippines.
Section 1208. Record of Arrival and Entry of Vessels and Aircraft. – A record shall be made and kept open to public inspection in every Customs District of the date of arrival and entry of all vessels and aircraft.
Section 1209. Arrest of Vessel or Aircraft Departing Before Entry Made. – When a vessel or aircraft arriving within the limits of a Customs District from a foreign port departs or attempts to depart before entry shall have been made, not being thereunto compelled by stress of weather, duress of enemies, or other necessity, the District Collector of the port may cause the arrest and bring back such vessel or aircraft to the most convenient port with the assistance of other concerned agencies.
Section 1210. Discharge of Ballast. – When not brought to port as goods, ballast of no commercial value may be discharged upon permit granted by the District Collector for the purpose.
Section 1211. Time of Unloading Cargo. – Unloading of cargo from a vessel or aircraft from a foreign port during official nonworking hours shall be allowed subject to payment of service fees by shipping lines, airlines, or other interested parties at rates prescribed by the Commissioner.
Section 1212. Entrance of Vessel through Necessity.
When a vessel from a foreign port is compelled, by stress of weather or other necessity to put into any other port than that of its destination, the master within twenty-four (24) hours after its arrival, shall make a protest under oath setting forth the causes or circumstances of such necessity.
This protest, if not made before the District Collector, must be produced and lodged with the District Collector.
Within the same time, the master shall make a report to the District Collector if any part of the cargo was unloaded from necessity or lost by casualty before arrival, and produce sufficient proof to the District Collector of such necessity or casualty before the latter who shall give the approval thereto and the unloading shall be deemed to have been lawfully effected.
Section 1213. Unloading of Vessel in Port from Necessity.
If a situation arises where the unloading of the vessel is required pending sojourn in port, the District Collector shall, upon sufficient proof of the necessity, grant a permit therefore, and the goods shall be unloaded and stored under the supervision of customs officers.
At the request of the master of the vessel or the owner thereof, the District Collector may grant permission to enter the port and pay duties, taxes and other charges on, and dispose of, such part of the cargo as may be perishable in nature or as may be necessary to defray the expenses attending the vessel.
Upon departure, the cargo, or a part thereof, may be reloaded on board the vessel, and the vessel may proceed with the same to its destination, subject only to the charge for storing and safekeeping of the goods and the fees for entrance and clearance.
No port charges shall be collected on vessels entering through stress of weather, duress or other urgent necessities.
Section 1214. Entry and Clearance of Vessels of a Foreign Government. – The entry and clearance of transport or supply ship of a foreign government shall be in accordance with the agreement by and between the Philippines and the foreign government.
Section 1215. Clearance of Vessel for Foreign Port. – Before a clearance shall be granted to any vessel bound to a foreign port, the master or the agent thereof shall present to the District Collector the following properly authenticated documents:
A bill of health from the quarantine officer or officer of the public health service in the port;
Three (3) copies of the manifest of export cargo, one of which, upon certification by the customs officer as to the correctness of the copy, shall be returned to the master;
Two (2) copies of the passengers list, showing foreigners and other passengers;
The register and shipping goods, if the vessel is of Philippine registry;
Clearance issued by the last port of entry; and
A certificate from the Philippine Postal Corporation to the effect that it received timely notice of the sailing of the vessel:
Provided, That the District Collector shall not permit any vessel to sail for a foreign port if the master or agent thereof refuses to receive bags of mail delivered to the same by the Philippine Postal Corporation for transport upon reasonable compensation.
In case the Postmaster General and the master or agent do not come to an agreement concerning the amount of the compensation to be paid for the carriage of the mail, the matter shall be submitted for decision to a Board of Referees to be composed of three (3) members appointed, respectively, by the Philippine Postal Corporation, the agency of the company to which the vessel concerned belongs, and the Bureau, who shall fix a reasonable rate of compensation.
Section 1216. Detention of Warlike Vessel Containing Arms and Munitions.
District Collectors shall report to the proper authorities or detain any vessel of commercial registry manifestly built for warlike purposes and about to depart from the Philippines with a cargo consisting principally of arms and munitions of war,
when the number of men shipped on board or other circumstances render it probable that such vessel is intended to be employed by the owner or owners to cruise or commit hostilities upon the subjects, citizens, or
property of any foreign principality or state, or of any colony, district, or
people with whom the Philippines is at peace, until the decision of the President of the Philippines is rendered thereon, or
until the owner or owners shall give a security, in double the value of the vessel and cargo, that it will not be so employed, if in the discretion of the District Collector such security will prevent the violation of the provisions of this section.
Section 1217. Oath of Master of Departing Vessel. – The master of a departing vessel shall state under oath that:
All cargoes conveyed on the vessel, destined for the Philippines, have been duly discharged or accounted for;
A true copy of the outgoing cargo manifest has been furnished to the Bureau;
No letters or packets, not enclosed in properly stamped envelope sufficient to cover postage, have been received or will be conveyed, except those relating to the vessel; and
that all mails placed on board the vessel before its last clearance from the Philippines have been delivered at the proper foreign port; and
If clearing without passenger, the vessel will not carry upon the instant voyage, from the Philippine port; any passenger of any class, or other person not entered upon the ship's declaration.
Section 1218. Extension of Time for Clearance. – At the time of clearance, the master of a departing vessel shall be required to indicate the time of intended departure, and if the vessel should remain in port forty-eight (48) hours after the time indicated, the master shall report to the District Collector for an extension of time of departure, and without such extension the original clearance shall be nullified.
Section 1219. Advance Notice of Aircraft Arrival.
A. Nonscheduled Arrivals.
Before an aircraft comes into any area in the Philippines from any place outside thereof, a timely notice of the intended flight shall be furnished to the District Collector or other customs officer-in-charge at or nearest the intended place of first landing, and to the quarantine and immigration officers-in-charge at or nearest such place of landing.
If dependable facilities for giving notice are not available before departure, the use of any radio equipment shall be appropriate as long as it will result in the giving of adequate and timely notice of the aircraft's approach, otherwise landing shall be made at a place equipped with navigational facilities.
If, upon landing in any area, the government officers have not arrived, the pilot-in-command shall hold the aircraft and any baggage and goods thereon intact and keep the passengers and crew members in a segregated place until the inspecting officers arrive.
B. Scheduled Arrivals. – Such advance notice will not be required in the case of an airline arriving in accordance with the regular schedule filed with the District Collector for the Customs District in which the place of first landing area is situated, and also with the quarantine and immigration officers-in-charge of such place.
Section 1220. Landing at International Airport of Entry.
Except in case of emergency or forced landings, aircraft arriving in the Philippines from any foreign port or place shall make the first landing at an international airport of entry, unless permission to land elsewhere other than at an international airport of entry is first obtained from the Commissioner.
In such cases, the owner, operator, or person in charge of the aircraft shall pay the expenses incurred in inspecting the aircraft, goods, passengers, and baggage carried thereon, and such aircraft shall be subject to the authority of the District Collector at the airport while within its jurisdiction.
Should an emergency or forced landing be made by an aircraft coming into the Philippines at a place outside the jurisdiction of the latter, the pilot-in-command shall not allow goods, baggage, passenger, or crew member to be removed or to depart from the landing place without permission of a customs officer, unless such removal or departure is necessary for purposes of safety, communication with customs officers, or preservation of life, health, or property.
As soon as practicable, the pilot in-command, or a member of the crew-in-charge, or the owner of the aircraft, shall communicate with the customs officer at the intended place of first landing or at the nearest international airport or other customs port of entry in the area and make a full report of the circumstances of the flight and of the emergency or forced landing.
Section 1221. Report of Arrival and Entry of Aircraft.
The pilot-in-command of any aircraft arriving from a foreign port or place shall immediately report its arrival to the District Collector at the airport of entry or to the customs officer detailed to meet the aircraft at the place of first landing.
Upon arrival, such aircraft shall be boarded by a quarantine officer, and after pratique or health clearance is granted, shall be boarded by a customs officer; subsequently no person shall be permitted to board or leave the aircraft without the permission of the customs officer.
The pilot-in-command or any other authorized agent of the owner or operator of the aircraft shall make the necessary entry.
No such aircraft shall, without previous permission from the District Collector, depart from the place of first landing or discharge goods, passengers, or baggage.
Section 1222. Documents Required in Making Entry for Aircraft.
A. For the purpose of making entry, there shall be presented to the boarding customs officer four (4) copies of a general declaration which shall contain the following data, unless any of such data is otherwise presented on a separate official form:
Name of owner or operator of aircraft, registration marks and nationality of aircraft, and flight number of identification
Points of clearance and entry, and date of arrival;
Health and customs clearance at the last airport of departure;
Itinerary of aircraft, including information as to airport of origin and departure dates;
Names and nationality of crew members;
Passengers manifest showing places of embarkation and destination
Cargo manifest showing information as to airway bill number, the number of packages related to each airway bill number, nature of goods, destination, and gross weight, together with a copy of each airway bill securely attached thereto;
Store list; and such other documents as may be required by the Bureau.
B. The general declaration shall be written in English and duly signed by the pilot-in-command or operator of the aircraft, or the authorized agent. The section on health, and customs clearances, however, shall be signed only by the pilot-incommand or when necessary, by a crew member when the general declaration itself has been signed by a non-crew member. If the aircraft does not carry cargoes or passengers, such facts must be shown in the manifest.
C. A cargo manifest shall in no case be changed or altered after entry of the aircraft, except by means of an amendment by the pilot-in-command or authorized agent thereof, under oath, and attached to the original manifest: Provided, That after the invoice and/or goods declaration covering an importation have been received and recorded in the office of the appraiser, no amendment shall be allowed except when it is obvious that a clerical error or any other discrepancy has been committed without any fraudulent intent in the preparation of the manifest, the discovery of which could not have been made until after complete examination of the importation.
Section 1223. Manifests for the Commission on Audit (COA) and District Collector.
Upon arrival of an aircraft from a foreign port, the Bureau shall provide electronic copies of the manifest to the Chairperson of the COA.
The master shall immediately present to the District Collector the original copy of the cargo manifest properly endorsed by the boarding officer, and for inspection, the aircraft's register or other documents in lieu thereof, together with the clearance and other papers granted to the aircraft at the port of departure for the Philippines.
Section 1224. Clearance of Aircraft for Foreign Port.
Any aircraft bound to a foreign port shall, before departure, be granted clearance by the Commissioner at an airport of entry where such aircraft has been authorized to make its landing; and
Before clearance shall be granted to an aircraft bound to a foreign port, there shall be presented to the District Collector or to the customs officer detailed at the place of departure four (4) copies of a general declaration signed by the pilot-in- command or authorized agent of an aircraft which shall contain the following data;
Name of owner or operator of aircraft, registration marks and nationality of aircraft, and flight number of identification
Port of clearance, data thereof and destination;
Health and customs clearance;
Itinerary of aircraft, including information as to airport of destination and departure date;
Names and nationality of crew members;
Passengers manifest showing places of destination;
Export cargo manifest showing information as to airway bill number, the number of packages related to each airway bill number, nature of goods, destination, and gross weight, together with a copy of each airway bill securely attached thereto; and
Store list showing stores loaded.
Section 1225. Oath of Person-in-Charge of Departing Aircraft. – The pilot-in-command or authorized agent of such departing aircraft shall also state under oath to the effect that:
All cargoes conveyed on the aircraft destined to the Philippines have been duly discharged and accounted for; and
The aircraft has not received nor will convey any letter or packet not enclosed in properly stamped envelope sufficient to cover postage, except those relating to the cargo of the aircraft, and that there was delivery to the proper foreign port of all mails placed on board said aircraft before clearance from the Philippines.
If an aircraft is cleared to depart without passengers, the aircraft shall not carry any passenger thereon.
A record shall be made and kept open to public inspection in every customs office at an airport of entry of the dates of arrival and entry of all aircraft.
CHAPTER 3 OTHER THIRD PARTIES
Section 1226. Supervision and Regulation of Third Parties.
Third parties transacting with the Bureau on behalf of importers and consignees shall be treated equally as true importers or consignees.
Third parties transacting with the Bureau shall be liable for acts committed in violation of this Act and related laws.
Upon the recommendation of the Commissioner, the Secretary of Finance shall issue rules and regulations to govern and regulate the conduct of all third parties dealing directly with the Bureau in relation to the importation, exportation, movement, storage and clearance of goods for and on behalf of another person.
The rules and regulations shall provide for specific conditions when third parties may or may not directly transact with the Bureau and shall provide a written notice in case such third parties are, for valid reasons, barred from transacting with the Bureau.
Third party is defined under Section 102(uu) of this Act.
For purposes of this section, third parties may also refer to logistics providers; importers, exporters, carriers, airlines, shipping lines, shipping agents, forwarders, consolidators, port and terminal operators, and warehouse operators, if such persons or entities transacted with the Bureau.
CHAPTER 4 AUTHORIZED ECONOMIC OPERATORS (AEOs)
Section 1227. Treatment of Authorized Economic Operators (AEOs). – The Bureau shall promulgate the necessary procedures and requirements for the compliance of Authorized Economic Operators (AEOs). For AEOs who have displayed diligence in complying with the rules and the submission of official customs requirements, and have satisfactorily managed their commercial records, the Bureau shall extend the following incentives:
Release of the goods upon provision of the minimum information necessary to identify the goods and permit the subsequent completion of the final goods declaration
Grant of clearance of the goods at the declarant's premises or another place authorized by the Bureau; and
Other special procedures such as:
Allowing a single goods declaration for all imports or exports in a given period where goods are imported or exported frequently by the same person;
Use of commercial records to self-assess their duty and tax liability and, where appropriate, to ensure compliance with other customs requirements; and
Allowing the lodgement of goods declaration by means of an entry in the records by the authorized person to be supported subsequently by a supplementary goods declaration.
Section 1228. Trade Facility for AEO. – The Secretary of Finance shall, upon the recommendation of the Commissioner, issue the necessary rules:
To supervise and regulate the conduct and operations of the AEO s, consistent with international best practices, the World Customs Organization (WCO) framework of standards to secure and facilitate global trade, and other international conventions and agreements
To develop a trade facilitation program for AEOs and other authorized persons consistent with international best practices and international conventions and agreements; and
To recognize existing facilities where the authority or right to operate AEOs has been granted by the relevant government agency or regulator through a contract, where the Bureau shall:
Only require an endorsement by the relevant agency or regulator;
Issue a certificate of authority as a matter of course; and
Ensure that the term of the certificate of authority shall be coterminous with the applicable government contract or any extension thereof.
The Bureau shall implement the provisions of this chapter without interfering, or impeding AEO operations as well as existing operations of wharves, container yards, container freight stations, warehouses, examination areas and other facilities located in customs territory and/or in airports and seaports.
The Bureau shall likewise ensure that any subsequent rules, regulations, orders or memoranda issued in relation to AEOs shall be consistent with the appropriate government agency's or regulator's prevailing operating procedures and international best practices.
Existing contracts of private operators with appropriate government agency or regulator, such as, but not limited to, the PPA, SBMA. and PIA and their respective authorities and powers already granted by law pertinent to such contract, shall not be impaired or adversely affected with the Bureau's implementing rules and regulations on AEOs.
