Customs Modernization and Tariff Act
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Customs Modernization and Tariff Act
Republic Act No. 10863
May 30, 2016
Case Overview and Summary
Summary of Republic Act No. 10863 (Customs Modernization and Tariff Act)Preliminary Provisions
- Declares policy to protect revenue, facilitate trade, prevent smuggling, and modernize customs (Sec. 101)
- Defines key terms used in the law (Sec. 102)
- Outlines when importation begins and ends, and when duty is due (Secs. 103-104)
- Provides for effective date of import duty rates (Sec. 105)
- Defines declarant and their rights and responsibilities (Secs. 106-108)
Bureau of Customs
- Outlines powers and functions of the Commissioner and the Bureau (Secs. 200-205)
- Establishes customs districts, ports of entry, and duties of District Collectors (Secs. 206-213)
- Grants police authority to customs officers for enforcement (Secs. 214-224)
Customs Jurisdiction and Control
- Defines customs jurisdiction over Philippine territory (Sec. 300)
- Provides for customs control over goods and premises (Secs. 301-307)
- Allows temporary storage of goods (Sec. 307)
Import Clearance and Formalities
- Requires goods to be imported through customs offices (Sec. 400)
- Outlines requirements for goods declaration, including provisional declarations (Secs. 401-418)
- Provides for examination of goods by customs officers (Secs. 419-422)
- Covers assessment, release, and time limits for imported goods (Secs. 423-436)
- Allows special procedures for traveler baggage, mail, express shipments, and advance clearance (Secs. 437-440)
Export Clearance and Formalities
- Requires export declaration and conformity to standards (Secs. 500-503)
- Outlines lodgement and processing of export declarations (Sec. 502)
Customs Transit and Transshipment
- Allows customs transit within customs territory (Secs. 600-602)
- Provides for customs transshipment (Secs. 603-604)
Import Duty and Tax
- Outlines basis of customs valuation using sequential methods (Secs. 700-708)
- Allows government's compulsory acquisition of undervalued goods (Sec. 709)
- Requires marking of imported goods and containers (Sec. 710)
- Covers dumping duty, safeguard duty, and countervailing duty (Secs. 711-713)
- Allows recourse against discrimination by foreign countries (Sec. 714)
Tax and Duty Deferment, Preference and Exemption
- Lists conditionally tax and duty-exempt importations (Sec. 800)
- Establishes customs warehouses and their operations (Secs. 801-813)
- Covers free zones and movement of goods to/from them (Secs. 814-817)
- Provides for duty-free stores and exemptions (Secs. 818-821)
Duty Drawback and Refund
- Allows duty drawback on fuel, oils, and goods made from imported materials (Sec. 900)
- Outlines payment and prescription of drawback claims (Secs. 901-902)
- Covers refund of duties and taxes, and abatement (Secs. 903-913)
Post Clearance Audit
- Authorizes audit of records related to goods declaration (Sec. 1000)
- Outlines scope and criteria for audits (Sec. 1001)
- Grants access to records and power to obtain information (Secs. 1002-1004)
- Penalizes failure to pay correct duties after audit (Sec. 1005)
- Requires record-keeping by Bureau and importers (Secs. 1003, 1006)
Administrative and Judicial Procedures
- Allows advance rulings on classification, valuation, and origin (Secs. 1100-1103)
- Provides for administrative appeals and judicial review (Secs. 1104-1110)
- Covers alert orders for inspection of goods (Sec. 1111-1112)
- Outlines seizure, forfeiture, and disposition of goods (Secs. 1113-1151)
- Allows settlement of cases by fine or redemption (Sec. 1124)
- Establishes procedures for appeals and automatic review (Secs. 1126-1128)
Third Parties
- Allows supervision and regulation of customs service providers (Sec. 1200)
- Imposes obligations on carriers, vessels and aircraft (Secs. 1201-1225)
- Provides for supervision of other third parties (Sec. 1226)
- Establishes treatment of Authorized Economic Operators (Secs. 1227-1228)
Customs Fees and Charges (Secs. 1300-1301)
Offenses and Penalties
- Defines crimes related to unlawful importation, smuggling, misdeclaration, and other fraudulent practices (Secs. 1400-1430)
- Penalizes statutory offenses by customs officers (Secs. 1431-1433)
Miscellaneous Provisions
- Covers information, decisions, rulings, and related procedures (Secs. 1500-1509)
- Prohibits customs employees from having interests in imports/exports (Sec. 1511)
- Allows rewards for informers on smuggling (Sec. 1512)
- Permits outsourcing of non-sovereign functions (Sec. 1513)
- Allows adoption of international standards and best practices (Sec. 1514)
Tariff Administration and Policy
- Establishes the Tariff Commission and its functions (Secs. 1600-1607)
- Provides for flexible tariff clause and presidential powers (Sec. 1608)
- Allows promotion of foreign trade through agreements (Sec. 1609)
- Sets general rules for tariff interpretation (Sec. 1610)
- Outlines tariff nomenclature and import/export duty rates (Secs. 1611-1612)
Congressional Oversight Committee (Sec. 1700)
Final Provisions
- Authorizes implementing rules and regulations (Sec. 1800)
- Includes transitory, saving, repealing, and separability clauses (Secs. 1801-1804)
- Sets effectivity date (Sec. 1805)
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customs
tariff
import
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duties
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goods
Bureau of Customs
Tariff Commission
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customs clearance
customs procedures
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free zones
bonded warehouses
drawback
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Law
Customs Modernization and Tariff Act
Republic Act No. 10863
•May 30, 2016
REPUBLIC ACT NO. 10863
AN ACT MODERNIZING THE CUSTOMS AND TARIFF ADMINISTRATION
TITLE I
Preliminary Provisions
CHAPTER 1
Short Title
SECTION 100. Short Title. — This Act shall be known as the "Customs Modernization and Tariff Act (CMTA)".
CHAPTER 2
General and Common Provisions
SECTION 101. Declaration of Policy. — It is hereby declared the policy of the State to protect and enhance government revenue, institute fair and transparent customs and tariff management that will efficiently facilitate international trade, prevent and curtail any form of customs fraud and illegal acts, and modernize customs and tariff administration. Towards this end, the State shall:
(a) Develop and implement programs for the continuous enhancement of customs systems and processes that will harmonize customs procedures;
(b) Adopt clear and transparent customs rules, regulations, policies and procedures, consistent with international standards and customs best practices;
(c) Establish a regime of transparency of and accessibility to customs information, customs laws, rules, regulations, administrative policies, procedures and practices, in order to ensure informed and diligent compliance with customs practices and procedures by stakeholders;
(d) Consult, coordinate and cooperate with other...
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