1400 Undervaluation, Misclassification and Misdeclaration
Less than 10% No charges
10% - 30% 250% of duty and tax
More than 30% prima facie case of fraud
If intentional 500% of duty and tax due (subject to seizure proceedings)
Embedded Files
1401 Unlawful importation or exportation (Appraised Value)
250,000 Imprisonment of not less than 30 days and 1 day but not more than 1 year and a fine of not less than P25,000 but not more than P75,000
250,000 - 500,000 Imprisonment of not less than 6 months and 1 day but not more than 1 year and a fine of not less than P75,000 but not more than P150,000
500,000 - 1,000,000 Imprisonment of not less than 1 year and 1 day but not more than 3 years and a fine of not less than P150,000 but not more than P300,000
1,000,000 - 5,000,000 Imprisonment of not less than 3 years and 1 day but not more than 6 years and or a fine of not less than P300,000 but not more than P1,500,000 or both
5,000,000 - 50,000000 Imprisonment of not less than 6 years and 1 day but not more than 12 years or a fine of not less than P1,500,000 but not more than P15,000,000 or both
50,000,000 - 200,000,000 Imprisonment of not less than 12 years and 1 day but not more than 20 years or a fine of not less than P15,000,000 but not more than P50,000,000 or both
If 200,000,000 Punishable by reclusion perpetual and a fine of not less than P50,000,000
Penalty of prison mayor
1402 Failure or refusal of party to give evidence or submit documents for assessment
20% surcharge based on dutiable value
1403 Other fraudulent practices against customs revenue
Penalties prescribed in section 1401
1404 Failure to declare baggage
30% of the landed cost in addition to all duties, taxes
1405 Vessel, seacraft or aircraft departing before undergoing customs formalities
Not less than P100,000 but not more than P300,000
1406 Obstruction to boarding officer
Not less than P100,000 but not more than P300,000
1407 Unlawful boarding or leaving of vessel or aircraft
Not less than P100,000 but not more than P300,000
1408 Unloading of cargo before arrival at port of destination
Not less than P500,000 but not more than 2,000,000
1409 Unlading of cargo at improper time or place after arrival
Not less than P100,000 but not more than P300,000
1410 Failure to exhibit or deposit documents
Not less than P100,000 but not more than P300,000
1411 Bringing of unmanifested arms, explosives of war equipment
Not less than P500,000 but not more than 1,000,000
1412 Failure to supply advance and requisite manifests
Not less than P100,000 but not more than P300,000
1413 Disappearance of manifested goods
Not less than P100,000 but not more than P300,000
1414 Discrepancy between actual and declared weight of manifested goods
If the discrepancy exceeds by 10% 20% of the value of the excess amount
1415 Discrepancy with the master's of pilot's in command report
Not less than P100,000 but not more than P300,000
1416 Failure to report fraud
Imprisonment of not less than 6 months and 1 day but not more than 1 year and
fine of not less than P100,000 but not more than P300,000 (master or pilot,owner or agent of any vessel)
1417 False statement of vessel's or aircrafts, destination
Imprisonment of not less than 6 months and 1 day but not more than 1 year and
fine of not less than P100,000 but not more than P300,000
1418 Afixing seals
Imprisonment of not less than 6 months and 1 day but not more than 1 year and
fine of not less than P100,000 but not more than P300,000
1419 Breaking of seal placed by customs officials
Not less than P100,000 but not more than P300,000
1420 Breaking of lock or fastening placed by customs officials
Not less than P100,000 but not more than P300,000
1421 Removal, Breakage and Alteration of Marks
Not less than P100,000 but not more than P300,000
1422 Unauthorized withdrawal of imported articiles from bonded warehouse
50% surcharge of duties and taxes, customs fees, etc.
Increased by 25% annually if paid after one year
1423 Removing, repacking goods in warehouse
Imprisonment of not less than 6 months and 1 day but not more than 1 year and
fine of not less than P100,000 but not more than P300,000
1424 Removing goods from customs custody
Penalties prescribed in section 1401
1425 Failure to pay Duties, taxes and other charges
10% surcharge if not paid after 15 days from the date of final assessment.
25% if paid after one year
1426 Breach of security
Smaller amount than the penalty clause
1427 Failure to keep importation records
Imprisonment of not less than 3 years and 1 day but not more than 6 years and a
fine of P1,000,000. (Imposed against broker/importer)
1428 Concealment or destruction of evidence of fraud
Imprisonment of not less than 3 years and 1 day but not more than 6 years and a fine of P300,000.
1429 Other offenses
For anchoring at any dock, pier, wharf, quay, or bulkhead other than a port of entry,
Fine of not less P500,000.00 but not more than P1,000,000.00) for overseas vessels;
For dumping of garbage or slops over the sides of the vessel within three (3) miles from the nearest coastline,
Fine of not less than P1,000,000.00 but not more than P10,000,000.00;
For dumping or causing to spread crude oil, kerosene, or gasoline in the bay or at the piers within three (3) miles
Fine of not less than P1,000,000.00 but not more than P 10,000,000.00 for each offense;
For loading gasoline or any other petroleum products at a place other than that designated
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 offense;
For causing the emission and spread of harmful gas, fumes and chemicals,
Fine of not less than P1,000,000.0) but not more than P10,000,000.0) for each offense; and
For transporting hazardous waste, radioactive waste and other toxic substances as provided under the Basel Convention and
Republic Act No. 6969, otherwise known as the "Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990", the
penalty shall be forfeiture of the vessel in favor of the government. The fines imposed herein shall be without prejudice to the application of
fines or penalties provided under special laws and regulations.
1430 Violations of this act and regulation in general
Imprisonment of not less than 30 days and 1 day but not less than 1 years or liable for a
fine of not less than P100,000 but not more than P300,000 or both
1431 Statutory offenses of officers and employees
Imprisonment of not less than 6 years and 1 day but not more than 12 year and
perpetual disqualification to hold public office from the exercising to vote and
fine of not less than P500,000 but not more than P1,000,000
1432 Failure to report fraud (Employee of the BOC)
Imprisonment of not less than 6 years and 1 day but not more than 12 years and
fine of not less than P500,000 but not more than P1,000,000 (suffer perpetual disqualification)
CAO 5-2016 Balikbayan
The Qualified Filipino While Abroad and the Deconsolidator and all other participants who use the Balikbayan Box duty and tax-exempt privilege as conduit for smuggling or other fraud against customs:
Payment of Php 300, 000.00 as administrative fine;
Criminal prosecution under Title XIV of the CMTA; and
Cancellation of registration as importer or broker, as may be applicable.
The Deconsolidator who fails to ensure that the consolidator is advised of the need for senders to provide in advance basic information:
First Offense Warning;
Second Offense Penalty of Php 100,000.00;
Third Offense Penalty of Php 200,000.00;
Succeeding Offenses Penalty of Php 300,000.00.
The Deconsolidator or broker who fails without valid justification to lodge the goods declaration or to claim the goods within the prescribed period:
First Offense Penalty of Php 100,000.00;
Second Offense Penalty of Php 200,000.00;
Third Offense Penalty of Php 300,000.00 and the cancellation of registration as importer or broker, as may be applicable.
Failure to comply with any of the other obligations defined in this CAO:
First Offense Warning;
Second Offense Penalty of Php 100,000.00;
Third Offense Penalty of Php 200,000.00 and six (6) months suspension of the registration as an importer or broker, as may be applicable; and
Fourth Offense Penalty of Php 300,000.00 and cancellation of registration as importer or broker, as may be applicable.
Unloading of Goods for Transshipment before Arrival at Port of Entry.26 If, upon the arrival within the limits of any Customs District of the Philippines of any Carrier engaged in foreign trade, the Master of the vessel or Pilot-in-Command thereof permits any part of the Goods to be unloaded before arrival at the Port of Entry, and without authority from proper customs officer, the owner, operator, or agent of such Carrier shall be liable for the following fines: CAO 12-2019
First Offense Php500,000.00
Second Offense Php1.000,000.00
Third Offense Php2.000,000.00
Unloading of Goods for Transshipment at Imporper time ad place after arrival.26 The owner or operator of any carrier from which transshipment goods are discharged upon arrival in the philippines at a time or place other than designated by the district collector, shall be liable for the following fines: CAO 12-2019
First Offense Php100,000.00
Second Offense Php200,000.00
Third Offense Php300,000.00
Failure to Supply Advance and Requisite Manifest.[1] Except for causes beyond the control of the owner, operator or agent of the Carrier, failure to transmit the electronic copy of the IFCM within the required time prior to the arrival of the Carrier at the Port of Entry shall make the owner, operator, or agent of the Carrier liable for the following fines:
First Offense Php100,000.00
Second Offense Php200,000.00
Third Offense Php300,000.00
Disappearance of Manifested Goods for Transshipment. [1] When any package or goods for transshipment mentioned in the manifest meant to be unloaded upon the arrival of the carrier is not unloaded or is missing or has disappeared, its agent shall be liable for the following fines 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:
First Offense Php100,000.00
Second Offense Php200,000.00
Third Offense Php300,000.00
False statement of Port of Final Destination of Transshipment Goods. [1] When the Master of a Vessel or the Pilot-in-Command of the aircraft
loaded with goods shall make a false statement as to the final destination of Transshipment Goods loaded on-board such carrier,
the owner or operator of such carrier shall be liable for the following fines:
First Offense Php100,000.00
Second Offense Php200,000.00
Third Offense Php300,000.00
In case of failure to load within the period allowed, the importing means of transport shall be liable for the following fines:
For sea Goods, Php500.00 per TEU per day.
For air Goods, Php100.00) per kilogram per day.
Any person who violates any provision of this CAO or Customs Memorandum Order issued pursuant thereto,
for which delinquency no specific penalty is provided, shall be liable for the following fines:[1]
First Offense Php100,000.00
Second Offense Php200,000.00
Third Offense Php300,000.00
In case of violation of this Order, the District Collector shall recommend to the Deputy Commissioner, AOCG, the following penalties:
First offense, a penalty of three hundred thousand pesos (PhP300,000.00) payable to the Bureau of Customs, and refund to the consignee of one hundred percent (100%) of the overcharge which shall be made within five(5) days after the rendition of the decision. Non-payment of the penalty and non-refund of the overcharge shall cause the suspension of transfer of containers to the erring OCC operator until full payment and refund has been made.
Second offense, the District Collector, in addition to the penalty imposed under the immediately preceding paragraph, shall recommend the immediate suspension of transfer of containers to the erring OCC operator for a period of six (6) months.
Third offense, in addition the penalties provided in paragraph (i) of this Section, the District Collector shall recommend the revocation of the permit to operate against the erring OCC operator.
ANTI AGRICULTURAL SMUGGLING ACT OF 2016 (CAO 2-2017)
Penalties.
The penalty of life imprisonment and a fine of twice the Fair Value of the smuggled agricultural product and the aggregate amount of the taxes, duties and other charges avoided shall be imposed on any person who commits any of the acts enumerated under Section 4.1. of this CAO.
Imprisonment of not less than seventeen (17) years but not more than twenty (20) years,
Fine of twice the Fair Value of the smuggled agricultural product and the aggregate amount of the taxes, duties and other charges
Allow the unauthorized use of their Import Permits for purposes of smuggling.
Imprisonment of not less than fourteen (14) years but not more than seventeen (17) years
Fine equal to the Fair Value of the smuggled agricultural product and the aggregate amount of the taxes, duties and other charges avoided shall be imposed on the following:
The registered owner and its lessee or charterer, in case of lease, of a chartered boat, motorized commercial vessel of more than three (3) gross tonnage [1], who knowingly transports the agricultural product subject to economic sabotage, regardless of quantity
The registered owner and its lessee, in case of lease of six (6) or more wheeler trucks, vans and other means of transportation, who knowingly transports the agricultural product subject to economic sabotage, regardless of quantity;
The registered owner and lessee of a warehouse, or any property, who knowingly stores the smuggled agricultural product subject to economic sabotage; or
The registered owner, lessee, president or chief executive officer of the private port, fish port, fish landing sites, resorts, and airports who knowingly allows the agricultural product to be smuggled into the country.
Imprisonment of not less than twelve (12) years but not more than fourteen (14) years
Fine equal to the Fair Value of the smuggled agricultural product subject to economic sabotage and the aggregate amount of the taxes, duties and other charges avoided shall be imposed on the following:
The registered owner and its lessee or charterer, in case of lease; of a chartered boat, motorized commercial vessel of three (3) gross tonnage or less, who knowingly transports the agricultural product subject to economic sabotage, regardless of quantity; or
The registered owner and its lessee, in case of lease, of less than six (6) wheeler trucks, vans and other means of transportation, who knowingly transports the agricultural product subject to economic sabotage, regardless of quantity.
Found guilty under this Act shall also suffer the penalty of perpetual absolute disqualification to engage in any business involving importation.
Alien and the prescribed penalty is not life imprisonment, he/she shall be deported after serving the sentence without further proceedings for deportation.
Government official or employee, the penalty shall be the maximum as hereinabove prescribed and the offender shall suffer an additional penalty of perpetual disqualification from public office, to vote and to participate in any public election.
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