October 2,2007

CUSTOMS MEMORANDUM ORDER bjo. - ~ P - ~ o o 7

(&*

SUBJECT: Implementing CAQ No. gA 8-2007 entitletl DESCRIPTION OF EMPQRTED ARTICLES I N TARIFF TERMS

I. Objective: To implement a convention to be observed in the proper description of

imported goods for declaration, statistical and other purposes pi~rsuant to CAO NO. 0-2007.

XI. scope:

I . as t:he hasis for encoding box 32 of !:he Tmpot-t Er 1c1 Tnt.cr-naI Revenue Declaration (IETRD).

2. as the basis in the preparation of the packing li4 comrnerc~al invoices, entry declaration, VRIS and Classification Rulings, and other relevant docz,!ments.

3, by the COO TIIS and COO Vs in the accomplishmenlof tk ~.rrns of the IETRD.

1. in describing the items for establishment and/or pr~blication ot values. 5. l'or statistical purposes.

111. General Provisions

1 . The convent:ion rlescribed Iierein musl: be sti-ictly orlservea 1r1 me following i nst-ances :

a. In the proper encoding of the Singlc Aclm~n~srraove vocumcnt in ACOS, or its upgraclc.

11. I n the proper filing of the TETRD. c. Tn the accomplishment of the returns of thc COO 111 ancl COO V. cl. In describing art:jcles for publication

" e. In clescribingtart-fcles for statistical purposes. . a I 2. Any delay in Ihe processing of I.lw cnlrics ot- SA to fail111-c to fully

clcscrihc t he shipmcnt shall hc the fcrll rcsponslnlllly of Ihc impollcr anrllor hroker.

I I I convenl:ion rtcscril~erl hewin sllsll l ~ c ol~scrvc(l to I l ~ c c x l r:rit pradicahle, talting into account that. some proclncls such as raw malcliills

(1' may not have specific brancl names, hut are still susceptible to descril-1t.ion in tariff lesrns.

'EV. Arlnrit~istrative Provisions:

1 . TI: shall ke the responsibility of the COO V 1:agcther wjl'l't the Cllicf, Fornl;.] l Entry Division, to ensure proper iriiplementation of this Qrcler.

2. 'flie' Commissioner of' Cuskoms through the VRIS sllatl issire a list of produa covered by this Order, t-ogett~er with specific per arljclc gt ~iclelines an the proper description of goods.

3. Tile Chief, Formal Entry/Assessment Division of each Porf/District shdl compile a list indicating the entry nurnl~el- and other shipment cletails of cornpanics violal:ing this Orcter and shall submit tlie same regularly on a weekly llasis to tlie Head, Valuation Reference Information System (VRTS) and the Director, Tracle Information Risk Analysis Office (TIRAO), Posl: Entry Audit Gml.tp (PEAG) for profiling purposes.

4. tvfnl:nr Vehicles

7. 'I.. For motor ve'tlicles, the specific dcscripl-ion sl~all be in accol*dilnci! will1 the following illcrst-rakive example:

.. .

3 1 1 Mfll{E ........................................ - . ., . N~s:;~T R GX4 2.1.2. SERTf S --------- - ------------------+-------.. ,Tflfi/7jty 2. f .3. 000)' WpE --------- * ...-..-- ------ ---- ---- ---- ICZ.:?~O/I 2.1 ./?. YEAR MODEL --------------- - ---- - --..---- - znnfi 3 1 -5. G17QSS WETGl JT ......................... ... Jf Grill kLk3.s 2.1.6. ~jm WEIG~~T ----------- ------------+----- lf6O0 MOS 2.1.7. P ISTOPI DTSPIACEME NT -------------- 3500 ~ ~ I D S 2.1 -8. NO. OF CYt-TNDERS ...................... 6 cyIindl?rs 2.1 -3 ENGTNE b10, ----- -------.------------------- - l/hi L?$(DE,) 4494 2- 1 - 1 0, CE I/ISSTS NO. - ....................... ---- JNRGS#t9W25,\'40.1~l .I-? 2.1 -1 1 . V[N NO, .................................. A

V. Tlre Convention:

1. Description of Articles

The descripf:ion of arl:icles must: be in sufficient detail to enable thc at'liclc 110 bc irfcnt.iRecl for tariff dassification, valual:ion and otlicr ~ 2 ; 7 l i ~ b i ~ ~ I purposes inclucling the following:

l.1. General Description

Pertains to the generic name or general name of the prodtrct, e.g. pump, engine, millc, bag, etc.

I. 2. Specific Description

Pertains to the specific clescription of I.I., e.g. centriftrgal (for pump), diesel (for engine), skimmed (for millc), shoulder (for bag), ek,

Refers t-o the brand name of the procluct e.g. Caterpillar, Mike, Gtrcci, lfonda, etc.

The model nr rrnber, style, reference ancl ol-her ru~crcncc c.g. "SiR'' for- ;r I-londa Civic car, rnoclel "Thinl

I Goods declared in a general manner to avoid proper classification or valuation

~hi l l l undergo 100hl examination and are lo be ronriclered in a i l a t l ~ i of I

continuing alerl:, subject to the following: 1. All items listed in Ar~twx "A". or jn subsequent updates issuecl by tlw

Cornrnissioner slrall be establisl7cd as a separate Selectivity Par-amel'ei- for Red Channel in tile Selectivity Module of ACOS or its equivalent i~ncler' ASYCUDA Wnrlrl.

2. Entries containing containerized gene~ally described cjoocls sl~al l I)e subjected to the Corn missioner's Special Stop.

3. For bulk shipments, generally described goods sliall not be allowed special permits to discharge until full payment of correct duties and taxes are mark.

'I. I-labitual violators 01- those violating this Order by persisting to clcclare Iheir importation in a general manner shall be penalized in the following manner:

a. Fil-sl: Offense. - Warning

13. Seconcl Offense. - Suspension of Accreditation for G monlhs

c. Thircl Offense. - Cancejlation ol' accreclitation and hlacltlisting as an irvlporter . .

5. Licensed customs brokers will be treated in the same manner as i r ~ ~ p o ~ ters and their licenqses recommended to be cancelled.

6. Good faith is uot a defense. Both impoh-s and customs brolters shall exercise utmost diligence in declaring goods for purposes of aistooms clearance.

WIT. Penalties

In adclition to number VI, the penalties prescribed under tlze TCCI3, as amended, particularly those special criminal provisions on making false statements or declarations sllall be made to apply for violations of the provisions OF this Order.

All Customs Memorandum Orders and C'rrculars or parts thereof wl l ic I~ arc ir1consist:ent. with this Order are hereby cleerned rescinded and/or morliflcrl accorclingly.

Tlis Oeder sl~al l take effect immecliakely '