Bureau of CustomsCamille Anne E. Duterte | 4LM3

Department of Finance

Formulates revenue policies ensure funding of critical government programs

that promote welfare And acceleration of economic growth and

stability. Revenue generation Resource mobilization Debt management Financial market development

Functions

Chairman of the Economic Development Cluster of the President’s Cabinet

DTI Secretary (2004-2005), DOF Secretary in 2005

Governor for Ph at the ADB, World Bank; Alternate Gov. at International Monetary Fund

Alumni Merit Awardee for the Kellogg Graduate School of Management in Northwestern Alumni University Awards (2014)

Four-time Finance Minister of the Year Doctor of Humanities, Honoris Causa,

Angeles University Certified Public Accountant De La

Salle University Chairman and Managing Partner of

the country’s largest professional services firm, SGV & Co (1999 – 2004)

named Fellow of the Eminent Southeast Asians Programme of the Singapore International Foundation in (2003)Cesar V. Purisima

Finance Secretary2010 - present

Bureaus

• Budget Call

• DecemberDepartment of

Budget Management

•Proposals from different divisions (income-generating Bureaus)

•March•Actual obligations•Current Expenses

Department of Finance •All proposals are consolidated by

one person•Should contain•Personal Expenses•Maintenance and Other Operating Expenses

•Capital Outlay•May or June•Expected final: November

Department of Finance

Annual Budgeting

• Proposals from different divisionsDepartment of Finance

• + or -• Analysis

Department of Budget Management

• Becomes President’s Proposal• Or National Expenditure ProgramDepartment of Finance

• Defense of DOF’s Budget Proposal by Undersecretary of Finance, Director, Technical Staff

• To Sponsor CongressmanSubcommittee Meeting

• Sponsor Congressman defends the Budget Proposal

Plenary Hearing | House of Representatives

• Defense of DOF’s Budget Proposal by Secretary of Finance

• To Sponsor SenatorsSubcommittee Meeting

• Sponsor Senators defend the Budget ProposalSenate

• Becomes the General Appropriations Act

Signature of the President of the Philippines

General Provision- Expenditure of allowance allocated Official Discretionary Fund Special Allotment Release Order- Right to obligate to pay ( Budgeting ) Notice of Cash Allocation- Authority to pay ( Accounting ) Technical Malversasion- Dispense money without conforming to the rules of the CoA- Administrative case

Annual Budgeting

Reports- monthly report to CoA Misuse- A. O. M. – disallowance Excess- Goes to National Treasury Appraisals- Lowest bidders

Annual Budgeting

History

Manila-Acapulco Galleon Trade

(1564)

1st Customs House:

Customs Service of Manila is organized

(1573)

Anchorage fees on visiting

Chinese junks.(1575)

Opium use was legalized but

limited to Sangleys(1780)

Galleon Trade begins(1600)

3% tax on trade with China.1st Parian is established

(1581)

History

1st formal customs house to utilize silk as tax payment for

imports from China:

Royal Silk market of St. Ferdinand

(1782)

Port of Manila was opened to Asian shipping

(1782)

End of Galleon Trade.

Real Compania de Filipinas was

established.(1815)

Suez Canal opened(1869)

Royal Decree opened Port of Manila and the Philippines to international

trade.(1834)

Port of Manila was declared a

free port(1832)

History

America intrudes Philippine Affairs.

Manila Customs House; Spanish tariff System was in

use.1st Collector of Customs:

C.A. Whittier(1898)

1st Collector of Customs under the American

Civil Government(1901)

US Tariff Act was passed(1909)

Ph gains independence from US.

Tariff Law remained in force

(1946)

Phil. Customs Service became

Bureau of Customs and Immigration

Commonwealth Act No 613 made

Immigration as separate Bureau

History

Tariff and Customs Code was amended

(1972)

BoC celebrated its centennial

Anniversary(2002)

BoC was reorganized pursuant to Customs Admin.

Order No. 4-65(1965)

Tariff and Customs Code of the Ph (R.A. No. 1937)Was enacted by Congress

(1953)

Pre-Spanish: barter system datus or rajahs collected tributes before a person may be engaged in trading

Spanish: Spanish Customs Law. Ad valorem levied on import and export Tariff Board collected uniform 10% ad valorem duty Tariff Code(1891)

American: Tariff Revision Law of 1901 Captain of the Port became Collector of Customs Tariff Revision Law of 1902 (imports from USA were exempted from tariff) Phil. Admin. Act No. 355 was passed on Feb. 6, 1902 establishing the Phil. Customs Service Public Act No. 430 renamed it as Bureau of Customs and Immigration

Commonwealth: The two became separate bureaus R.A. No.1937 provided for the Tariff Law of the Republic of the Phil. In 1957 (1st official

expression of autonomous Tariff policy

The Republic: Bureau Reorganization

History

Statutory and Regulatory provisions concerning: Import and export of goods Administrations and enforcement of rules and

regulations made by the BOC Includes Tariff and Customs Code of the Ph

Applies to all “Articles” coming within the territorial waters of the Ph on board vessels intending to unload on or after the said date

Customs Law

An authority or agency in a country responsible for collecting customs duties and taxes for controlling the flow of animals and goods in and out a country

Depending on local legislation and regulations, the import or export of some goods may be prohibited, restricted or regulated, and the agency enforces these rules.

Customs

A modernized and efficient customs administration that every Filipino can trust and

be proud of.

Vision

To assess and collect lawful revenues efficiently To effectively curb illicit trade and all forms of

customs fraud To facilitate trade in a secured manner To implement relevant technology for an efficient

and effective customs management aligned with the international customs best practices

To promote professionalism and integrity in the service

Mission

Assessment and collection of lawful revenues from importer articles and all other dues, fees, charges, fines, and penalties accruing under the tariff and customs law

Prevention and suppression of smuggling and other frauds upon the revenue

Primary Functions

Supervision and control over the entrance and clearance of vessels and aircraft engaged in foreign commerce

Enforcement of the tariff and customs laws and all other laws, rules and regulations relating to the tariff and customs administration

Ancillary Functions

Supervision and control over the handling of foreign mails arriving in the Ph for the collection of the lawful duty on the dutiable articles thus imported and the prevention of smuggling through the medium of such mails

Supervise and control all import and export cargoes, landed of stored in piers, airports, terminal facilities, including container yards and container freight stations, for the protection of government revenue

Exercise exclusive original jurisdiction over seizure and forfeiture cases under the tariff and customs law

Ancillary Functions

1) Prevent smuggling and other frauds 2) Control vessels/aircraft’s doing foreign trade 3) Enforce tariff and customs laws 4) Control the handling of foreign mails for revenues and prevention purposes 5) Control import and export cargoes6) Jurisdiction over forfeiture and seizure cases

Responsibilities

Operations

CollectionDuties

and Taxes

National Treasury

SpendingDOF

Process

Creation of General

Appropriations Acts

National Treasury

BoC

Commissioner of CustomsAlberto Lina

Deputy Commissioner

(IAG)Jesusa Lejos

Deputy Commissioner

(A&OCG)Agaton Uvero

Deputy Commissioner

(RCMG)Arturo Lachica

(I&EG)

Intelligence Div. Deputy

Commissioner Jessie Dellosa

Enforcement Div. Deputy

Commissioner Ariel

Nepomuceno

Deputy Commissioner

(MISTG)

Organizational Chart(Summary)

• Interest in forwarding industry• established the logistics company,

AIR21 and the Cargohaus Inc., U-Ocean Philippines Inc., and U-Freight Philippines, Inc., to name a few

• Chairman of the Lina Group of Companies and the PhilCycling.

• "Speed, integrity, and efficiency will be our trademarks.”

• levelling the playing field by ensuring fair, efficient, speedy, and hospitable services;

• battling corruption;• continuing to decongest ports

and improve systemic interventions by adapting to a growing economy getting busier every season;

• optimum performance from each and every officer and employee to transform the Bureau into a proactive organisation.

Alberto LinaCommissioner OF Bureau of Customs

Collect customs duties, taxes; account for all revenues

Exercise police authority Prevent and suppress smuggling, pilferage

and all economic frauds within all ports of entry

Supervise, control all exports, imports; administer all legal requirements

Functions of Commissioner(Exec. Order No. 127)

Bureau of CustomsCommissioners

AprIL 2015 – Present ALBERTO LINA

December 2013 – April 2015 JOHN P. SEVILLA

September 2011 - December 2013 ROZANNO RUFINO B. BIAZON

July 2010 - September 2011 ANGELITO A. ALVAREZ

Jan 2006 - July 2010 NAPOLEON L. MORALESJuly - Dec 2005 ALEXANDER M. AREVALO2005- 2005 ALBERTO D. LINA2004- 2005 GEORGE M. JEREOS2002 - 2004 ANTONIO M. BERNARDO2001 - 2002 TITUS B. VILLANUEVA1999 - 2001 RENATO A. AMPIL1998 - 1999 NELSON A. TAN1998 - 1998 PEDRO C. MENDOZA JR.1992 - 1998 GUILLERMO L. PARAYNO JR.1991 - 1992 TOMAS V. APACIBLE1987 - 1991 SALVADOR M. MISON1987 - 1987 ALEXANDER A. PADILLA1986 - 1987 WIGBERTO E. TAÑADA1977 - 1986 RAMON J. FAROLAN1975 - 1977 ALFREDO PIO DE RODA JR.

1968 - 1975 ROLANDO G. GEOTINA1965 - 1968 JUAN PONCE ENRILE1965 - 1966 JACINTO T. GAVINO1965 - 1965 PABLO C. MARIANO1964 - 1965 ALFREDO D. DE JOYA1964 - 1964 JOSE D. LINGAD1963 - 1964 RODRIGO D. PEREZ JR.1962 - 1963 NORBERTO ROMUALDEZ1962 - 1962 CESAR C. CLIMACO1961 - 1961 ROLANDO G. GEOTINA1960 - 1961 ELEUTERIO CAPAPAS1960 - 1960 TIMOTEO Y. ASERON1957 - 1960 ELEUTERIO CAPAPAS1955 - 1957 MANUEL P. MANAHAN1954 - 1955 JAIME VELASQUEZ1950 - 1954 ALFREDO V. JACINTO1947 - 1950 ALFREDO DE LEON

Assessment and

Operations Coordinatin

g Gathers and

publishes values of

commodities imported

Monitors implementati

on of rules and

regulations

Intelligence and

Enforcement

Gathers information

inquiry and investigation

police authority

Management

Information System and Technology

Supports the aim of BOC to assume

direct management and control

of IT facilities and services

Internal Administrat

ion

Assists Commissione

r in policy formulation

Revenue Collection Monitoring

Accounting of revenues collected

Administers legal

requirements of BOC

Audits liquidated

entries and bonds

Functions of Groups

Functions Verify vessel’s arrival and vessel’s registry

number ; receives bill of lading, commercial invoice,

packing list , import permit Computation of duties and taxes Lodgement of Single Administrative Document

Customs Broker

R.A. No. 9280 , Customs Brokers Act of 2004 – enacted on March 30, 2004; regulates the practice of customs brokersCustoms Broker – person duly accredited to practice in the Bureau of Customs; bona fide holder of a valid certificate of Registration/Professional Regulation CommissionChamber of Customs Brokers, Inc. - • Established in 1990• Current President:

Dennis del Pilar• Active Brokers (as of

June 2015): about 2,000 members

Expeditious advances of technology competition borne by globalization Dictates in the conduct of businesses,

individual travels and consumer demands by the World Trade Org.(WTO), the General Agreement on Tariffs and Trade(GATT), and ASEAN Free Trade Agreement(AFTA)

Growth of smuggling, drug trafficking, money laundering, movements of prohibited cargoes

Challenges

160 member states; Geneva, Switzerland headquarters

Aim: Regulation of trade One member state grants benefit to one

member state; must grant the same benefit to all states

Exception to the Most Favored Nation Principle: Free Trade Zones: NAFTA, MERCOSUR, EU, ASEAN

World Trade Org. (WTO)

1945, as result of WWII economic problems Anti-dumping law – prevented countries from dumping exports

at lower price 117 countries in 1994 1994 WTO place to negotiate reduction trade barriers, enforce

trade rules, disagreements Effects:

Global trade development Cheaper consumption, diverse supply of goods Producers found new markets and employment Promoted and secured liberalization in trade Reduce trade barriers and tariff

General Agreement of Tariff and Trade (GATT)

10 member states 3 Pillars: Political, Economic, Socio-cultural

Communities 2007 Summit 2015: Free flow of

goods, services, investments, capital and skilled labour

1 production-based market, 0 tariff rates, all non-tariff barriers will be abolished

One ASEAN community

Assoc. of Southeast Asian Nations (ASEAN)

Trade and Investment Liberalization- reduces tariffs and other barriers to trade and investment

Business Facilitation – reduces the costs of business transaction by improving access to trade information and aligning business policy and strategies to facilitate growth, and free and open trade.

Reduction of tariff – positively impacts trade and investment and overall development

Asia-Pacific Economic Cooperation (APEC)

“An act of any person or any agency who shall fraudulently import or bring into the Philippines or assist in so doing any article contrary to law 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.” (Sec.3602)

Smuggling

poses serious and direct threat to the national economy by:1. depriving the government of the much

needed revenues2. unfairly competing with legitimate businesses3. to the national security through the entry of

illegal drugs or prohibited articles in the country

Anti-Smuggling Campaign

Phil. Port Authority Phil. National Police Presidential Anti-Organized Crime

Commission Special Projects Group Maritime Industry Authority National Intelligence Coordinating Agency Armed Forces of the Philippines Department of Justice

Other Agencies involved in the campaign

The Tariff Commission Phil. Ports Authority Board of Investments Garments and Textile Export Board Phil. Economic Zone Bureau of Import Services Phil. Shippers Bureau

Other Agencies that aid in the enforcement of import and export rules

10% of the fair market value of the smuggled and confiscated goods (P 1M per case) shall be given to informers instrumental in the discovery and seizure of such goods

Governed by Sec. 3515, TCCP

Reward

Domestic port open to both foreign and domestic trade

Principal Port of Entry – chief port of entry of the collection district wherein it is situated; has a customhouse, and is the permanent station of the District Collector

Sub-port of Entry – headed by a Port Collector of Customs, under the District Collector’s jurisdiction

Port of Entry (Collection District)

Collects duties, taxes and other charges Exercises police powers Supervises the entrance and clearance of

vessels engaged in foreign trade Supervises and controls handling of foreign

mail Supervises all import and export cargoes and

freight stations

District Collector of Customs

District Ports of Entry Sub-Port of EntryI San Fernando EPZA Baguio; Sual; SalomagueII-A Manila Masinloc, FTI Customhouse; Post Offi ce; Rosario EPZA-Cavite, PEZA LagunaII-B MICP North HarborIII NAIA Manila Domestic Airport; Airmall Distribution CenterIV Batangas Puerto Princesa-Palawan; Siain-QuezonV Legaspi Jose Panganiban-Camarines Norte; Tabaco-AlbayVI Iloilo Pulupandan-IloiloVII Cebu Mactan International Airport; DumagueteVIII Tacloban Isabel-Leyte; Catbalogan-Samara; San Jose-LeyteIX Surigao Bislig; NasipitX Cagayan de Oro Ozamis; IliganXI Zamboanga Zamboanga International Airport, Jolo, Tawi-tawi, Basilan, SuluXII Davao Dadiangas, ParangXIII SubicXIV Clark International AirportXV Port of Aparri Irene, Curimao, Loaog International AirportXVI Port of Limay Mariveles

Ports and Sub-Ports

Republic Act No. 1937 , Tariff and Customs Code of the Philippines

2 books: Tariff Law Customs Law

Tariff and Customs Code

Anything that may be made the subject of importation or exportation

Articles

All cargoes coming into the country To bring goods into a domestic port from a

foreign country Nothing is imported until it comes within the

limits of the port

Import

Outbound; outgoing cargoes from the Philippines

Export

Freely Importable Commodities Regulated Commodities Prohibited Commodities Conditionally free importations

Classification of Imports

GR: All articles, imported to the Ph, whether subjected to duty or not, shall be entered through a Customhouse at a port of entry, regardless of its nature or ownership

Reason: To ensure the proper collection of duties and

taxes National security purpose, protection to local

industry, securing public health

Rules on Articles

XPN: Articles for the official use of foreign

embassies, legations, consular officers and other representatives of foreign government

Provided: Privilege shall accord like privileges to

corresponding agencies of the Ph Upon specific instruction of the Finance Secretary

Rules on Articles

Firearms and parts thereof, any types of replicas, explosives and ammunition.

Printed subversive, obscene and pornographic materials Drugs or substances aiding abortion Gambling machines and articles of such (jackpot or pinball

machines, lottery sweepstakes Tickets, coin operated video machines Any precious metals without indications of actual fineness of quality Misbranded adulterated drugs or foodstuffs Prohibited drugs and plants/ seeds that prohibited drugs are made

of (coca leaves, poppy, marihuana) as well as smoking pipes and parts thereof

Prohibited Articles

Undervaluation - assigned too low a value Misclassification –assigned to the wrong

category Misdeclaration – declared incorrect

information (weight, measurement, quantity)

Less than by at least 10% (not more than 30%) than should be legally collected

Undervaluation, Misclassification, Misdeclaration

Ex Computation for Undervaluation:Duty as found –Duty as declared = Percentage differenceDuty as appraised/found

Declared value per unit = $1.00Value as found/appraise = $1.20

$1.20 - $1.00= $0.20 =16.17%$1.20

Computation

Not less than the difference between the full duty and the estimated duty as declared by importer

If misdeclaration/undervaluation is intentional, importer is subject to penal provision of Sec 3602, TCCP

Exceeding 30% is fraud penalized by Sec. 2530

Surcharge

Duties and Taxes

Duty Charged by government

on import and export of goods

Imposed upon imports and exports

Narrow scope

Tax Mandatory obligation

payable to the government

Imposed upon income, property, services, etc.

Wide scope

F.O.B (terms of shipment)FreightInsuranceDutiable Value (US$)

x Exchange Rate (Php)Taxable Value

x Rate of Duty (5% or 0%)Customs Duty

Duties and Taxes

Taxable ValueCustoms DutyBrokerage FeeArrastre FeeWharfage Fee (PPA)Customs StampImport Processing Fee (Global Tax)L.C.

--- x xx 12 % VAT

VAT

Duties and Taxes

Summary:Customs DutyVATImport Processing FeeTotal Duties and Taxes

Duties and Taxes

Letter of Credit Commercial invoice Clearance Bill of Lading

Documents for Importing and Exporting

basically a guarantee or promise by a bank on behalf of the buyer to pay the seller a specified sum in the agreed currency, provided that the seller submits the required documents by a predetermined deadline.

Letter of Credit

Seller/Exporter

Beneficiary

Buyer / Importer

Application copy of L/C

IMPORT LETTER OF CREDIT ( L/C ) TRANSACTION

BPI Global City , Taguig

Applies L/C to Opening Bank

.

Opening / Issuing Bank

CITIBANK – New YorkAdvising / Negotiating Bank

Inquires the product & price lists …

Copied from: Customs Clearance Procedure, Louvie Dieron , Danna Nicole Maraña, slideshare, 2014

Written account, or itemized statement of merchandise shipped or sent to a purchaser, consignee, factor, etc., with the quantity and value or prices and charges annexed and may be as appropriate to a consignment or a memorandum shipment as it is to a sale

Bill or record of transaction between the seller and buyer

Commercial Invoice

Electronic verification of licenses to prevent fraudulent use or use of spurious documents

In conjunction with other agencies

Clearance

Document that establishes the terms of a contract between a shipper and a transportation company.

Document of title, a contract of carriage and a receipt for goods

3 important functions Conveys title to the goods Receipt of acknowledgment of the goods signed by

the carrier Serves as a contract of transportation between the

shipper and the carrier

Bill of Lading

Import Process

Informal Entry Articles intended for commerce dutiable value

of which is P200,000 or less Personal household effects/ non-commercial

articles Formal Entry

May be for immediate consumption Consumption Entry Warehousing Entry

Formal entry declaration ( consumption )

Republic Act No. 7925, March 1, 1995 Privately-owned and reputable IT Company accredited

by the Bureau of Customs Extends the services being offered by the Bureau by

being the first line of contact of BOC clients for most business transactions

Accredited: eKonek Pilipinas Cargo Data Exchange Center InterCommerce Network Service Crimson Logic Philippines, Inc.

Value Added Service Provider (VASP)

COLOR LANES good to good; forward to Arrastre

payment; release

document inspection; comply

alert shipment (CISS, Office of Commissioner)

shipment problem: underdeclaration, goods; subject for physical inspection by Examiner

VASP EPD

Release of cargo

FED

Entry Processing Division

Formal Entry Division Collection

division ARRASTRE/

Wharfage FCL Warehouse

GREEN LANE

YELLOW LANE

RED LANE

ARRASTRE/ Wharfage LCL Warehouse

CY CFS

FORMAL ENTRY PROCESS

Copied from: Customs Clearance Procedure, Louvie Dieron , Danna Nicole Maraña, slideshare, 2014

Broker CPRS -Client profile

registration system

VASP- Value Added Services Provider

Warehouse Assessment Division -

EPU

FORMAL ENTRY PROCESS (WAREHOUSING)

Copied from: Customs Clearance Procedure, Louvie Dieron , Danna Nicole Maraña, slideshare, 2014

Warehouse Assessment Division EPU

GREEN LANE YELLOW LANE RED LANE

WAD –Examination &Appraisal

BONDS DIVISION

Pier and Inspection Division

ARRASTRE / WHARFAGE

Transfer of Goods

Operating DivisionMBWD/PBWD/GMBWD

IMPORT LETTER OF CREDIT ( L/C ) TRANSACTION

Copied from: Customs Clearance Procedure, Louvie Dieron , Danna Nicole Maraña, slideshare, 2014

retail establishments licensed by the government to sell duty and tax free merchandise for the convenience of travellers.

Government earns revenues from the operation of these stores which are utilized to defray tourism and other related projects.

Duty Free

Exporter : will provide Final booking number Commercial invoicePacking list Bill of Lading

IMPORT SECURITY FILING (ISF) on US only

Broker

Receives : Bill of ladingCommercial Invoice Packing List

BUYERPURCHASE ORDER/ LETTER OF CREDIT (

LC) Prepares : Export Declaration (ED)

Copied from: Customs Clearance Procedure, Louvie Dieron , Danna Nicole Maraña, slideshare, 2014

EXPORT PROCEDURE

Programs

1. Authorized Economic Operator Program2. Voluntary Disclosure Program3. E2m Customs System

importers, exporters, customs brokers, forwarders, and other entities duly accredited by the bureau based on international standards and various national best practices, and which are entitled to minimal requirements for processing of goods.

offers certain benefits and incentives to certain economic operators considered as BOC’s trusted allies

Reduce processing periods

Authorized Economic Operator Program

importers the opportunity to correct any erroneous, inaccurate or insufficient information previously declared to customs authorities by reason of pure mistake, negligence or inadvertence.

compromise the imposition of fines

Voluntary Disclosure Program

to enhance BOC’s core and support ICT systems nationwide

Through Internet-based and wireless technologies, the Project will streamline imports and exports processing and improve trade facilitation among BOC, other government agencies and its stakeholders anywhere, anytime—all towards the realization of the National and ASEAN Single Windows

e2m Customs System

1. Corruption2. Smuggling3. Balikbayan Boxes4. Customs Modernization Act

Issues

Two types: Outright Smuggling Technical Smuggling

Misclassification Federation of Phil. Industries, Fight Illicit

Trade Movement

Smuggling

shipments of rice worth P1.2 B counterfeit products, P621.95 M vessels, P150 M medicines, P62.7 M motor vehicles, P50 M ukay-ukay or used clothing P33.7 M foodstuff, P32.7 M other items violating the Intellectual Property Rights Law, P30

M steel, P23.5 M sugar and other agricultural products, P14.5 M

Smuggling

Solicited for a bribe fell from 50% in 2012 to 44% in 2013 and 2014/15.

Only 13% of those solicited for a bribe reported it

23% said most companies in their line of business give bribes to win private sector contracts

90% agreed "Corruption will be reduced by the passage of a strong law on the right of the people to information from the government."

Corruption

"Some importers and brokers would resort to bribery just to make their transactions with the Bureau faster, and at the same time, with little or no knowledge of the import process, traders are often victimized or exploited by unscrupulous Customs employees“-John Sevilla, former Customs Commissioner

Corruption

as mandated by Pres. Ferdinand Marcos, should not exceed $500 in value, otherwise, subject to tax

benefit extending only to balikbayan boxes by OFWs who have intentions of returning to the country

Balikbayan Boxes

Why are they being opened? To protect the legitimate interests of

consignors/senders and their consignees, in particular, and the transacting public, in general;

To protect the interest of the government; To prevent and suppress smuggling and

other fraud upon customs.

Balikbayan Boxes

Why are they being delayed? Unforeseen circumstances and/or natural calamity like

typhoon that sets back the arrival of cargo carrying vessels; Consolidated shipments are tainted by:

Undeclared and/or misdeclared goods; Banned or regulated cargoes like firearms and

ammunitions, prohibited drugs, pornographic materials, gambling materials/apparatus;

Goods in commercial quantity; Consolidated shipments that are abandoned by the Philippine

agent/ representative/ broker for reasons of non-remittance of funds by the foreign freight forwarding entity/ consolidator.

Balikbayan Boxes

to keep up with changing international standards

to make customs valuation and inspection procedures more transparent and predictable

to implement automated procedures. reduce logistic chain costs and enhance the

country’s competitiveness.

Customs Modernization and Tariff Act

removal of the current de minimis (P 10.00) adjust P10,000 value of Balikbayan boxes to

P150,000 increased fines and penalties use of Information Communications

Technology (ICT)

Customs Modernization and Tariff Act

Interviewees:• Ma Luisa NotarioBudget Officer, Department of Finance• Mr. Marlon

BayonaCustoms Broker