(c) When goods cannot be classified by reference to 3 (a) or 3 (b), they shall beclassified under the heading which occurs last in numerical order among thosewhich equally merit consideration.

4. Goods which cannot be classified in accordance with the-above Rules shall be dassifiedunder the heading appropriate to the goods to which they are most akin.

5. In addition to the foregoing provisions, the following Rules shall apply in respect of thegoods referred to therein:

(a) Camera cases. musical instrument cases, gun cases, drawing instrumentcases. necklace cases and similar containers. specially shaped or fitted tocontain a specific article or set of articles. suitable for long-term use andpresented with the artides for Which they are intended, shall be classified withsuch articles when of a kind normally sold therewith. The Rule does not.however, apply to containers which give the whole its essential character;

(b) Subject to the provisions of Rule 5 (a) above, packing materials and packingcontainers presented with the goods therein shall be classified with the goods ifthey are of a kind normally used for packing such goods. However. thisprovision does not apply when such packing materials or packing containers areclearly suitable for repetitive use.

6. For legal purposes, the classification of goods in the subheadings of a heading shall bedetermined according to the terms of those subheadings and any related SubheadingNotes and. mutatis mutandis. 10 the above Rules. on the understanding that onlysubheadings at the same level are comparable. For the purposes of the Rule therelative Section and Chapter Notes also apply, unless the context otherwise requires.

/

SEC. 104. Rates 01 Import Duty'. v. I "rf': ._.-....'''~'.-' ..

All Tariff Sections, Chapters, headings Jlnd subheadings and the rates of import dutyunder Section 104 of Preskfenlial Decree No_ ;}4 and all SUbsequent amendment issues underExecutive Orders and Presidential Decrees are hereby adopted and form part of this Code.

There shall be levied, collected, and paid upon all imported articles the rates of dutyindicated in the Section under this section except as olhelWise specifically provided for in thisCode: Provided. that. the maximum rate shall not exceed one hundred per cent ad valorem.

The rates of duty herein provided or SUbsequently fixed pursuant to Section fourhundred one of this Code shall be subject to periodic investigation by the Tariff Commission andmay be revised by the President upon recommendation of the National Economic andDevelopment Authority.

The rates of duty herein provided shall apply to all products whether imported direcUy orindirectly of atl foreign countries. which do not discriminate against Philippine export products.An additional 100% across-the-board dUty shall be levied on the products of any fQreign countrywhich discriminates against Philippine export products

The tariff Sections. Chapters, headings and SUbheadings and the rate of import dutyunder Section One Hundred Four of this Code shall be as follows:

XI

SECTION 105. Conditionally~Free Importations......

The follO'Ning articles shall be exempt from the payment of import duties upon compliance ....iththe formalities prescribed in, or with. the regulations which shall be promulgated by the Commissioner ofCustoms wIth the approval of the Secretary of Finance; Provided, That any article sold, bartered, hired 0..-used for purposes other than lhat they were intended for without prior payment of the duty. tax Of othercharges which would have been due and payable al the time of entry if the article had been enteredwithout the benefit of this section,~ subJect to forfeiture and the importation shall constitute afraudulent practice against customs revenue punishable under SectIOn Thirtysix hundred and NJo, asamended, of this Code; Provided, further, That a sale pursuant to a judicial order or in liquidation of theestate of a deceased person shall not be subject to the preceding proviso, without prejudice to thepayment of duties, taxes and other charges; Provided, finally, That the President may uponrecommendation of the Secretary of Finance, suspend, disallow or completely withdraw, in whole 01 illpart, any of the conditionally-lree importation under this section:

a. Aquatic products (e.g.. fishes, crustaceans. mollusks, marine animals, seaweeds. fishoil, roe), caught or gathered by fishing vessels of Philipplile registry: Provided. Thatlheyare imported in such vessels or in crafts attached thereto: And provided, further, Thillthey have not been landed in any foreign territory or. if so landed, they have been landedsolely for transshipment without having been advanced in condition;

b. Equipment for use in the salvage of vessels or aircrafts. not available locally. uponidentlfication and the giVing of a bond in an amount equal to one and one-half times theascertained duties, taxes and other charges thereon, conditioned for the exportil~on 'thereof or payment of the corresponding duties, taxes and other charges within six (6) ,months from the date of acceptance of the import entry: Provided, That the Collector 01 'Customs may extend the lime for exportation or payment of duties. taxes and othercharges lor a term not exceeding six (6) months from the expiration of the originalperiod;

c. Cost of repairs. excluding the value of the article used. made in foreign countries upon -vessels or aircraft documented, registered or licensed in the Philippines, upon proofsatisfactory to the Collector of Customs (1) that adequate facilities for such repairs arenot afforded in the Philippines. or (2) that such vessels or aircratts. while in the rcgu!aIcourse of her voyage or flight was compelled by stress of "leather or other casualty toput into a foreign port to make such repairs in order to secure the safety. seaworthinessor airworthiness of the vessel or aircraft to enable her to reach her port of destinatlon;

d. Articles brought into the Philippines for repair, processing or reconditioning to be "re-exported upon completion of the repair, processing or reconditioning: Provided, That'..:the Collector of Customs shall reqUire the giving of a bond in an amount equal to oneand one-half times the ascertained duties. taxes and other charges thereon, conditionedlor the exportation thereof or payment of the corresponding duties, taxes and othercharges w'ithin six (6) months from the date of acceptance of the import entry;

e. Medals, badges, cups and other small articles bestowed as trophies or prizes. or thosereceived or accepted as honorary distinction;

1. Personal and household effects belonging to residents of the Philipplnes returning fromabroad including jewelry. precious stones and other articles of lUXUry which wer~'

/ formally declared and listed before departure and)denlified under oath before the,Collector of Customs when exported from the Philippines by such returning residentS':upon their departure therefrom or during their stay abroad; personal and househOkli.effects inCluding wearing apparel, articles of personal adornment (except luxury ilemsk~,toilet articles, instruments related to one's profession and analogous personal c:r:household effects, exduding vehicles, watercrafts, aircrafts, ~ animals purchased f1'tforeign countries by residents of the Philippines which were ,(ecessary, appropriate and,I'normally used lor their comfort and convenience during their stay abroad. accompanying'~them on their return, or arriving within a feasonable time which, barring unforeseen and_fortuitous events. in no case shan exceed sixty (60) days after the ovmer's retum:

- 432-

Provided, That the personal and household effects shall neither be inkmerCialquantities nor intended for barter, sale or hire and that the total dutiable value of whichshall not exceed Ten .Ktlousand Pesos (P10,OOO.OO): Provided further, That theretuming resident has tot previously availed of the privilege under this section withinthree hundred sixtyfive (365) days prior to his arrival: Provided, finally. That a fifty percent (50%) ad valorem duty across the board shall be levied and collected on thepersonal and househo:d effects (except luxury items) in excess of Ten Thousand Pesos(P10.000.00). For purposes of this section. the phrase ~retuming residentsM shan referto nationals who have stayed in a foreign country for a period of at least six (6) months.

1-1 In addition to the privilege granted under the immediately preceding paragraph, returningoverseas contract workers shall have the privilege to bring in, duty and tax free, usedhome appliances, limited to one of every kind once in a given calendar yearaccompanying them on their return, or arriving within a reasonable time which, barringunforeseen and fortuitous events, In no case shall exceed sixty (60) days after theowner's return upon presentation of their original passport at the Port of Entry: Provided,That any excess of Ten Thousand Pesos (P10,OOO.OO) for personal and householdeffects and/or of the number of duty and tax-free appliances as provided for under thissection, shall be subject to the corresponding duties and taxes provided under thisCode. For purposes of tllis section, the following words/phrases shall be understood tomean: (a) Qverseas Contract Workers - Holders of valid passports duly issued by IheDepartment of Foreign Affairs and certified by the Department of Labor andEmploymenVPhilippine Overseas Employment Agency for overseas employmentpurposes. It covers all nationals working in a foreign country under employmentcontracts, including Middle East Contract WOf1

h. Professional instruments and implements. tools of trade. occupation or employment,wearing apparel. domestic animals, and personal and household effects belonging topersons coming to settle In the Philippines or Filipinos and/or their families anddescendants who are now residents or citizens of other countries, such partieshereinafter referred to as Overseas Filipinos, in quantities and of the class suitable to theprofession, rank or position of the persons importing them, for their own use and not for .barter or sale, accompanying such persons, or arriving within a reasonable time, inthe discrelion of the Conector of Customs, before or after the arrival of their owners,which shall not be later than February 28. 1979 upon the production of evidencesatisfactory to the Collector of Customs that such persons are actualty coming to selUein the Philippines, that change of residence was bona fide and that the privilege of freeentry was never granted to them before or that such person qualifies under theprovisions of Letters of Instructions 105, 163 and 210, and that the articles are broughtfrom their former place of abode. shan be exempt from the payment of customs dutiesand taxes: Provided, That vehicles, vessels. aircrafts, machineries and other similararticles for use in manufacture, shall not be classified hereunder;

I.

J.

Articles used exclusively for public entertainment, and for display in public expositions, orfor exhibition or competition for prizes, and devices for projecting pictures and parts andappurtenances thereof, upon identification, examination. and appraisal and the giving ofa bond in an amount equal to one and one-half times the ascertained duties, taxes andother charges thereon, conditioned for exportation thereot or payment of thecorresponding duties, taxes and other charges within six (6) months from the date ofacceptance of the import entry; Provided, That the Collector of Customs may extend thelime for exportation or payment of duties, taxes and other charges for a term notexceeding six (6) months from the expiration of the origmal period; and technical andscientific films when imported by technical, cultural and scientifIC institutions. and not tobe exhibited for profit Provided, further, That if any of the said films is exhibited forprofit, the proceeds therefrom shan be subject to confIScation, in addition to the penaltyprovided under Section Thirtysix hundred and ten as amended, of this Code:

Artides brought by foreign film producers directly and exclusively used for making orrecording motion picture films on location in the Ph~ippines, upon their identification,examination and appraisal and the giving of a bond in an amount equal to ooe andone-half times the ascertained duties, taxes and other charges thereon, conditicned lorexportation thereof or payment of the corresponding dUlies, taxes and other chargeswithin six (6) monlhs from the date of acceptance of the import entry, unless extendedby the Collector of Customs for another six (6) months; photographic andcinematographic films, undeveloped, exposed outside the Philippines by resident Filipinocitizens or by producing companies of Philippine registry where the principal actors andartists employed for the production are Filipinos, upon affidavit by the importer andidentification that such exposed films are the same films previously exported from thePhilippines. As used in this paragraph, the terms "actors" and "artists" include thepersons operating the photographic camera or other photographic and sound recordingapparalus by which the film is made;

,

k. Importations for the official use of foreign embassies, legations, and other agencies offoreign governments: Provided. That those foreign countnes accord like privileges tocorresponding agencies of the Philippines.

Articles imported for the personal or family use of the members and attaches of foreignembassies, legations. consular officers and other representatives of foreigngovemments: ProWded, That such privilege shall be accorded under specialagreements between the Philippines and the countries which they represent AndProvided, further, That the privilege may be granted only upon specific instructions of theSecretary of Finance in each instance which will be issued only upon request of theDepartment of Foreign Affairs;

434

,.

",

I. Imported articles donated to, or for the account of, any duly registered relief organization,not operated for profit, for free distribution among the needy, upon certification by theDepartment of Social Services and Development or the Department of Education,Culture and Sports. as the case may be;

m. Containers, holders and other similar receptacles of any material including kraft paperbags for locally manufactured cement for export. inclUding corrugated boxes forbananas, mangoes, pineapples and other fresh fruits for export, except other containersmade of paper, paperboard and textile fabrics, which are of such character as to bereadily identifiable and/or reusable for shipment or transportation of goods shall bedelivered to the importer thereof upon identification, examination and appraisal and thegiving of a bond in an amount equal to one and one-half times the ascertained duties,taxes and other charges within six (6) months from the date of acceptance of the importentry;

n. Supplies which are necessary for the reasonable requirements of the vessel or aircraft inher voyage or night outside the Philippines, inclUding articles transferred from a bondedwarehouse in any collection district to any vessel or aircraft engaged in foreign trade, foruse or consumption of the passengers or its crew on board such vessel or aircrafts assea or air stores; or articles purchased abroad for sale on board a vessel or aircraft assaloon stores or air slore supplies: Provided, That any surplUS or excess of such vesselor aircraft supplies arriving from foreign ports or airports shall be dutiable;

o. Articles and salvage from vessels recovered after a period of two (2) years from the daleof filing the marine protest or the time when the vessel was wrecked or abandoned, orparts of a foreign vessel or her equipment. wrecked or abandoned in Philippine watersor elsewhere: Provided, That articles and salvage recovered within the said period oftwo (2) years shall be dutiable;

p. Coffins or urns containmg human remain, bones or ashes. used personal and householdeffects (not merchandise) of the deceased person, except vehicles. the value of whichdoes not exceed Ten Thousand Pesos (P10,OOO), upon identification as such;

q. Samples of the kind, in such quantity and of such dimension or construction as to renderthem unsalable or of no appreciable commercial value; models not adapted for practicaluse; and samples of medicines, property marked "sample-sale punishable by law", forthe purpose of introducing a new article in the Philippine market and imported only oncein a quantity sufficient for such purpose by a person duly registered and identified 10 beengaged in that trade: Provided, That importations under this subsection shall bepreviously authorized by the Secretary of Finance: Provided, however, That importationof sample medicine shall be previously authorized by the Secretary of Health that suchsamples are new medicines not available in the Philippines: Provided, finally, Thatsamples not preViously authorized and/or properly marked in accordance with thissection shall be levied the corresponding tariff duty.

Commercial samples, except those that are not readily and easily identifiable(e.g. precious and semiprecious stones, cut or uncut, and jewelry set with precious orsemi-precious stones), the value of any single importation of which does not exceed tenthousand pesos (P10,OOO) upon the giving of a bond In an amount equal to twice theascertained duties, taxes and other charges thereon. conditioned for the exportation ofsaid samples within six (6) months from the date of the acceptance of the import entry orin default thereof, the payment of the corresponding duties, taxes and other charges. Ifthe value of any single consignment of such commercial samples exceeds ten thousandpesos (P10,OOO), the importer lhereof may select any portion of same not exceeding invalue of ten thousand pesos (P10,OOO) for entry under the provision of this subsection.and the excess of the consignment may be entered in bond. or for consumption, as theimporter may elect;

~ 435

r. Animals (except race horses), and plants for scientific, experimental, propagation,botanical, breeding, zoological and national defense purposes: Provided, That no livetrees, shoots, plants, moss, and bulbs, tubers and seeds for propagation purposes maybe imported under this section, except by order of the Government or other dulyauthorized institutions: Provided, fUrlher, That the free enllY or animals for breedingpurposes shall be restricted to animals of recognized breed, duly registered in the bookof record established for that breed. certified as such by the Bureau of Animal Industry:Provided, furthennore, That certificate of such record, and pedigree 01 such animal dutyauthenticated by the proper custodian of such book of record. shall be produced andsubmitted to the Collector of Customs. together with affidavit of the owner or imporier,that such animal is the anjmal described in said certificate of record and pedigree: AndProllided, finaffy, That the animals and plants are certified by the National Economic andDevelopment Authority as necessary for economic development;

s. Economic, technical, vocational. scientifIC, philosophical, historical, and cultural booksand(or publications: Provided. That those which may have already been imported bulpending release by the Bureau of Customs at the effectivity oUhis Decree may stlll enjoythe privilege herein provided upon certification by the Department of Education, Cultureand Sports that such imported books and/or publications are for economic, technical,vocational, scientific, philosophical, historical or cultural purposes or that the same areeducational, scientific or cultural materials covered by the International Agreement onImportation of Educational Scientific and Cultural Materials s~ned by the President ofthe Philippines on August 2, 1952, or other agreements binding upon the Philippines.

Educational, scientific and cultural malerials covered by internationalagreements or commitments binding upon the Philippine Government so certified by lheDepartment of Education. Cullure and Sports.

Bibles,' missals, prayer books, Koran, Ahadilh and other religious books ofsimilar nature and extracts therefrom, hymnal and hymns for religious uses;

t Philippine articles previously exported from the Philippjnes and returned without havingbeen advanced in value or improved in condition by any process of manufacture or othermeans. and upon which no drawback or bounty has been allowed. induding instrumentsand implements, tools of trade. machinery and equipment used abroad by Filipinocitizens in the pursuit of their business, occupation or profession; and foreign articlespreviously imported when returned after having been exported and loaned for usetemporarily abroad solely for exhibition. testing and experimentation, for scientific oreducational purposes; and foreign containers previously imported which have been usedin packing exported Philippine articles and returned empty if imported by or for theaccount of the person or institution who exported them from the Philippines and nct forsale, barter or hire subject to identification: Provided, That any Philippine article fallingunder this subsection upon which drawback or bounty has been allowed shall, upon ':'re-importation thereof, be subject to a duty under this subsection equal to the amount ofsuch drawback or bounty;

u. Aircraft, equipment and machinery, spare parts commissary and catering supplies,aviation gas, fuel and oil, whether crude or refined, and such other articles or supp~esimported by and for the use of scheduled airlines operating under Congresslonalfranchise: Provided, That such artlcles or supplies are not locally available in reasonablequantity, quality and price and are necessary or incidental for the proper operation of thescheduled airline importing the same;

v. Machjneries, equipment. tools for production, plants to convert mineral ores intosaleable form. spare parts. supplies, materials, accessories. explosives, chemicals, andtransportation and communicat'on facilities imported by and for the use of new minesand old mines which resume operations. when certified to as such by the Secretary ofAgriculture and Natural Resources upon the recommendation of the Director of Mines.for a period ending five (5) years from the first date of actual commercial production ofsaleable mineral products: Provided, That such articles are not locally available in

- 436-

reasonable quantity, quality and price and are necessary or incidental in the properoperation of the mine; and aircrafts imported by agroindustrial companies to be used bythem in their agriculture and industrial operations or activities, spare parts andaccessories thereof;

w. Spare parts of vessels or aircraft of foreign registry engaged in foreign trade whenbrought into the Philippines exclusively as replacements or for the emergency repairthereof, upon proof satisfactory to the Collector of Customs that such spare parts shallbe utilized to secure the safety, seaworthiness or airworthiness of the vessel or aircraft.to enable it to contmue its voyage or fHght;

x. Articles of easy identificalion exported from the Philippines for repair and subsequentlyreimported upon proof satisfactory to the Collector of Cusloms that such articles is notcapable of being repaired locally: Provided. That (he cost of the repairs made to anysuch article shall pay a rale of duly of thirty per cent ad valorem;

y. Trailer chassis when imported by shipping companies for their exclusive use in handlingcontainerized cargo, upon posting a bond in an amount equal to one and one half timesthe ascertained duties, taxes and other charges due thereon to cover a period of oneyear from the date of acceptance of the entry, which period for meritorious reasons maybe extended by the Commissioner of Customs from year to year, subject to the followingconditions:

1. That they shall be properly identified and registered with the LandTransportation CommiSSion;

2. That they shall be subject to customs SupelVtSIOn fee 10 be fixed by theCollector of Customs and SUbject to the approval of the Commissioner ofCustoms;

3. ThaI they shall be deposited in the Customs zone when not in use; and

4 That upon the expiration of the period prescribed above, duties and taxes shallbe paid. unless other"'''lse re-exported

The provisions of Sec. 105 of Presidential Decree No. 34, daled October 27, 1972, to thecontrary notwithstanding any officer or employee of the Department of Foreign Affairs, inclUding anyattache, civil or military, or member of his staff assigned to a Philippine diplomatic mission abroad by hisDepartment or any similar officer or employee assigned to a Philippine consular office abroad, or anypersonnel of the Reparations Mission in Tokyo or AFP military personnel detailed with SEATO or anyAFP military personnel accorded assimilated diplomatic rank on duty abroad who is returning from aregular assignment abroad, for reassignment to his Home office. or who dies. resigns, or is retired fromthe service, after the approval of this Decree, shall be exempt from the payment of all duties and taxes onhis personal and household effects, inclUding one molar car which must have been ordered or purchasedprior to the receipt by the mission or consulate of his order of recall, and which must be registered in hisname: Provided, however, Thqt this exemption shall apply only to the value of the motor car and to theaggregate assessed value of said personal and household effects the latter not to exceed thirty percentum (30%) of the total amount received by such officer or employee in salary and allowances duringhis latest assIgnment abroad but no! to exceed four years: Provided. further, That this exemption shall norbe availed of oftener than once eveIY four years; And. Provided. finally. That the officer or employeea;>ncerned must have served abroad for not less than two years.

The provisions of general and special laws, including those granting fanchises. to the contrarynotwithstanding, there shall be no exemptions whatsoever from the payment of customs dulles exceptthose prOVIded for in this Code; those granted to government agenCies, instrumentalities orgovernmenl-owned or controlled corporations with existing contracts, commilmenls, agreements, orobligations (requiring such exemption) with foreign countries; inlemational institutions. associahons ororganizations entitled to exemption pursuant to agreements or special laws, and those that may begranted by the President upon prior recommendation of the National Economic and DevelopmentAuthority 1I1 the Interest of national economic development

- 437 -

c, Any proclamation issued by the President under this section shall, if he deems it consistent withthe interest of the Philippines. extend to the whole of any foreign country or may be confined toany subdivislOO or subdivision.s thereof; and the President shaH, whenever he deems the publicinterests require. suspend. revoke. supplement or amend any such proclamation.

d. All articles imported contrary to the provisIons of this section shall be forfeited to the Governmentof the Philippines and shall be ~able to be seized. prosecuted and condemned in ~k.e mannerand under the same regulations, restrictions and provisions as may from time to time beestablished for the recovery, collection, distribution and remission or forfeiture 10 the governmentby the tariff and customs laws. Whenever the provision of this section shalt be applicable toimportations into the Philippines of articles wholly or in part the growth or product of any foreigncountry, they shall be applicable thereto. whether such articles are imported directly or indirectly.

e. It shall be the duty of the Commission to ascertain and at all times to be informed whether any ofthe discriminations against the commerce of the Philippines enumerated in subsections "a" and"b" of this section are practiced by any country; and if and when such discriminatory acts aredisclosed, it shall be the duty of the Commlssion to bring the matter to the attention of thePresident, together with recommendallons.

f. The secretary of FV"i:ance shall make such rules and regulations as are necessary for theexecution of such proclamation as lhe Presidenl may issue in accordance with the provisions ofthis section.

PART 3. FLEXIBLE TARIFF

SECTION 401. Flexible Clause. ./

a. In the interest of national economy, general welfare and/or national security, and subject to thelimitations herein prescribed, the President, upon recommendation of the National Economic andDevelopment Authority (hereinafter referred to as NEDA). is hereby empowered: (1) to increase.reduce or remove exisung protective rates 01 import duty (induding any necessary change inclassification). The existing rates may be Increased or decreased to any level, in one or severalstages but in no Case shall the increased rate of import duty be higher than a maximum of onehundred (100) per cent ad valorem; (2) 10 establish import quota or to ban imports of anycommodity, as may be necessary; and (3) to impose an additional duty on all imports notexceeding ten (10) per cent ad valorem whenever necessary: Provided, That upon periodicInvestigations by the Tariff Commission and recommendation of the NEDA. the President maycause a gradual reduction of protection levels granted in Section One Hundred and Four of thisCode, including those SUbsequently granted pursuant to this section.

b. Before any recommendation is submitted 10 Ihe President by the NEDA pursuant to theprovisions of this section, except in the imposition of an additional duty not exceeding ten (10)per cent ad valorem, the Commission shall conduct an investigation in the course of which theyshall hold public hearings wherein interested parties shall be afforded reasonable opportunity tobe present. produce evidence and to be heard. The Commission shall also hear the views andrecommendations of any government office, agency or instrumentality concerned. TheCommission shall submit their findings and recommendations to the NEDA within thirty (30) daysafter the termination of the publiC heanngs.

c. The power of the President to increase or decrease rates of import duty within the limits fixed insubsection "a" shall include the authority to modify the form of duty. In modifying the form ofdUty, the corresponding ad vaforem or specific equivalents of the duty with respect to importsfrom the principal competing foreign country for the most recent representative period shan beused as bases.

461 .

d.

e.

f

The Commissioner of Customs shall regularly furnish the Commission a copy of all customs ,:"import entries as filed in the Bureau of Customs. The Commission or its duly authorized,,'.:';representatives shall have access to. and the right 10 copy aU liquidated customs import entries;Yand other documents appended thereto as finally filed in the Commission all Audit. . . .,"

The NEDA shall promulgate rules and regulations necessary to carry out the provisions of this,section.

Any Order issued by the President pursuant to the provisions of this section shall take effet:l thirty(30) days after promulgalion. except in the imposition of additional dUly not exceeding ten (10) "per cent ad valorem which shan take effect al the discretion of the President.

SECTION 402. Promotion of Foreign Trade.

a. For the purpose of expanding foreign markets for Philippine products as a means of assislance .~in the economic development of the country, in overcoming domestic unemployment, in.increasing the purchasing power of the Philippine peso, and in establishing and maintainingbetter relations between the Philippines and other countries, the President, is authorized fromtime to time.

(1) To enter into trade agreements with foreign governments or instrumentalities thereof~;and

(2) To modify import duties (including any necessary change in classification) and otheri;',:'import restrictions, as are required or appropriate to carry out and promote foreign trad&:/with other countries: Provided. however. That in modifying import duties or fixing impOI1*;'i,quota the requirements prescribed in subsection "a" of Section 401 shall be obsefved;J~Provided, further. That any modifICation of import duties and any fixing of import quotasmade pursuant to the agreement on ASEAN Preferential Trading Arrangements ratified/.on August 1, 1977 shall not be subject to the limitations of aforesaid section "at> of,~~Section 401, ,',';:",{~:

#-b. The duties and other import restrictions as modified in subsection "a" above, shall apply .!9,~

articles which are the growth, prOduce or manufacture of the specIfic country. whether importe:4~directly or indirectly, with which the PhIlippines has entered into a trade agreement Provjded,~,~That the President may suspend the application of any concession to articles which are the;r~growth, produce or manufacture of such country because of acts (including the operations:of(~international cartels) or policies which in his opinion tend to defeat the purposes set in thi~~section; and the duties and other import restrictions as negotiated shall be in force and effece:)from and after such time as specified in the Order. ,":","Z

;:","'''I

c, Nothing In this section shall be cons~rued to give any authority to cancel or reduce in ..any "manner

SECTION 504. Official Seal.

The Commission is authorized to adopt an official seal.

SECTION 505. Functions of the Commission.

The Commission shall investigate

- 464

Ascertain import costs of such representative articles so selected;

'.~.,

the administratIOn of, and the fiscal and industrial effects of. the tariff and customs laws~ot this country now in force or which may hereafter be enacted; \~

'i~the relations between the rates of duty on raw materials and the finished or parlty~~'\:'finished products. :,'

. ,.~~~

the effects of ad valorem and specific duties and of compound specific and ad valorem~duties:""a

all question~ relative to th~ arrangement of schedules and classification of articles in ~{Iseveral sections of the tartff law;

BOOK II CUSTOMS LAW

TrT1.E I. - THE BUREAU Of CUSTOMS q;{~.t~ rPART 1. _ ORGANIZATION. FUNCTION AND JURISDICTION OF THE BUREAU

S-- ilW YI .. ChI .~EC. 601. .Clio! ()ff;cia!s 01 the BcnutJ 01 Customs Tne Bureau of Customs sh..11 have onl'! cruel atld

0ooy!ssiS1,!!!Ldlaefs,.tobe~ fespec;tivllly as the ~mmi!tSioner.~tus~s(l'Ittqlnafter know:-:. as I.....Cammluio/ler) .nd~ uty ComlDisaonen;...of -Cusloms, each one 10 hl:-;lIc! la) ~usl()m$ RevenueColtICtJon Monitoring Group; (b) Customs Assessment ..nd Opetation.s Coordinltin9 Gtoup: jclln1etllSente ;II!enjarc~ent GfOUp, and {d} Inlernal hlminislrahOfl Group, who sn..11 elm re~ al! .nnual COmpe'lsatlt>n maccordance with the rales prMClibed by .>isting 18w. Th. Commission.er and the Deputy Commis~"onefS 01Customs $l'laU bl appoiol..d by tne PrniOenl of the PhIlippines. (As ameodcd by E.O, 127 effective 30 JilJluary1981).

In ease of kmPoBry Bnd 'permanent vacanc:y, one of tha Depllly CommIssioners v,'ll be de'!oi!JniMed hy-lhe Seeretary of Finance to let n CommISSIoner of CU5toml, unlil !.he .incl.Imbenl Com~fiIilet: reasSYml!">

his~osiCion is fill~ by pefmElJlOOI appoilltmet"lt

~~F.rmrtlnlU' of the Bureau, - The Q\1rM"ral d.u11es, powers ..nd jurisdiction 01 the bu.eau sh,.11include: . ~ ,..', rt' EC 603 . orilll Jurisdiction. For the lNe and effK'live e:ll!f"ClSe of the pcwe1' conferred b)' lao... andto !he en r~Ut5ite the/mr, said Bureau shall hcwl'l the right of su~ionaoo police authoflly over~s~within the jurisdiction 01 the Philippines and OVfI( lilt COllst~, airports, harbo~, beYI o'{('rs and 'oland

wa~~rsWhether navigable: Of M! bom.lh sea. - tf1.,-tVvlv- .

When a V~$I1 bltCOmes subject to seizure by reason 01 an act dol'll! in Pr.ilippine wa\ers in v1oIalion of thelariN and cuSloms a-, a pursuit of 'um vesQl ngan within tn... jurisdictional Wil11!f1l may conlinuP. beyond lll~ma.itime zone. lInd tile vessel may be se~ed on the high seas. Imported articles which may be sub!~1 tos",zure fOf vloialicm 01 th" la.iff and CUlloms laws may b" pursued in their Iraosportalion in Ihl!! Philippines b~land, water 01 air and such jurisdietion exurted ove' them at any pillct th.....ein as may be necessary for the due

enfo en he la......

C. 604, tWit' Prem;,es Uwdlor CusrO/M f'utpou'J.. . The Bureau of CU5tomS shall. fOlcuslom pelSes, hllVe e:a:lusiYe eonlre{. diJe

promulgated by the Bureau 01 Quarantine and shall give effect to the ume in 50 far as they life connected wi~hmatters of st'lipping and navigation

---{EC:' 606. Power of 'he presideni ,;' ~UbjflC;~Temisrts/0 JU~'Sdl;t;Oll of BurrtiJu of eLls/oms. - When anypI.Iblic Wharf, landing place, street or lan'd, not preViously unde'r the jurisdictiOl1 of the Burea" of ClIstoms, in anyport of entry, is nee&sed and collected Oil them lor the preceding year.Copies of such annual report shall be furnished regularly to the Depllrtmnt of Finance, Tariff Commission,NEDA, Celltfal Bank of the Philippines, Soard of Investments, Department 01 Budget, and ather economjcagencies of the government, or'I or belore December 30, of each year

. ' :' .- ..

608. Commissioner to Make' Rulas ami RegUlations. - The Commissioner shall, &ubject to lheapprov he Secretary of Finance, promulgate ,all rUles and regulations neceuary ta enforce the provisionsolthis cOde. He 1>hall also ciuse The' preparation and publication or a. customs manual covering up-to-daterules and rtguli.itions and de

may require. In accordance with the staffing pattern ()( organlzational set-up as may be prescribed by theCammissionllf 01 Customs with the apprOl'al 01 the Secre{ary of Finance. Provided. Tnat sucll llIssignment sllallnol alfec.llhe lenure or olhce or the employees nor result in Itle change of status, demotion in lilnk andfor"eduction in nlary

/sec 7~. s.at 01 Coiedor 0( CUstoms.' In the office of the Collector of a collection district ltlefe wibe Kepi. seal 01 such design as the Commiuioner shall prescribe, WIth the approval of the Secret,..y orFinan~ Wllh whICh \holll bmay. if! tile name of the Dlstric:t Cglledar and subject to hl'!ii supervision aM control pErform any partlcorSEC 710. Recon1s 10 be /fepJ byellSroms Ofr.cJals. OlStrict Collectors. deputy cotleda~. and 01~'

customs oll'\claJs acllllg in such eapacit.es itte reqUIred to kel!'jl true, correct and permallen/. records of ltIelr"tflciallransadions. 10 sobrnit ttle ..arne to lhe inspection ot .ultlorized oflia,al$ at .Ulimes. aMi to rum o..e, allrecords and offICial pipers to!tleir successors or oltlef .uthonzed officl.~

,/SEC 711. Port R"9u1afJOrls. - A Collector may prescribe local admirwstrative ragUlation, not inconsistent

with law or the general bureau regUlations, lor the 1l01'e1nment gf his port or district. th. same ~o be I!Neellvcupon approval by the Commisaioner

/ SEC. 712 Roports of Caledor 10 CommiuiOflef. A Colrl!C1or shalJ immediately make repor1to lneCommis..ioner concerning prospeclille or newly begun IItlgalion in his district touchin" matter5 relOlting to Ih@customs service: and he shd, in such form and detail as sl'lall be required by the Commisshmer maKe reogularmonltlly reports of ailliansaetions in his port and distrid.

',' , ,TiTlE II. - COASTWISE TRADE

'r::~)R_ '" """".,/"Coo",",. Tn.", . ~~~'"." .. ~.""" r~ ""'" ,,'pasili'igHs transported from one pla~ o. port in Ole Ptlllippines aJlOUl.r on!y """m Ol'lt' Of both of suchpIa

SEC, 1003 Quarantine Cetiificele for Incoming Vassel. Entry 011 vessel from a fcreig" port or placeoutside of the Philippines shall not be permitted u"til it has obt!lined a ql.l!lrlmtine certificate issued by theBoreao 01 Quarantine

SEC, 1004. Documenls 10 be Produced Oy Master UpMSa91, In thepresCl"ibed form. setting forth melr destioalion and all particulars require(lby\fle'ii111nlgration laws, Ind" everysuch ...essel sh~11 have preparedmOfllI'Itation to the proper customs official upon arrival in pons of thePhilippines a complete list of a~ a st~.r then on board, If the ves!>el does not carry cargo or passengers,the mani!ests must Show that nO. --- r passenger, as the CaSe may be, is carried from the port of departureto the port of destmation in the Philippines.

A cargo manifest Shall in no case be changed or altered lIfter..entey .9Ltrl-l:..'(~~ except by means 01 anarTl!.ndmanlj1Y.tbe, JUil$tel"amsignee or agent thereof, undero;j\lr, aild llttactiecl to the on!l'nal manifestProvided hOWlWer Th"l-after the invoice and/or entry covering an imporhtion have been received andrecorded in tile office of the appraiser, no amendment 01 the manifest shall be aUowoo. excepl when it isobvIOUS that a clefital efror or any ottler distrepancy has been committe""""'-SEC. 1000. Tr8llslalion of Manifest. .The cargo manilest and each copy thereof shall be accompaniedby alranstation into tne O"iciallanguage 01 the Philippines, 1I originalv written in another language.

.........-SEC, 1007. Manifests for Commi~sjon on Audit snd Colleclor, - Papers /0 Oe DeposJf9d wn.h COrlsul.1."11medialelr after the Ilflval of ;] vessel from a fOreign port, the master shaY clelilfer 01 mail to the Chairman,CommiuiOn on Audit Manila, a copy 01 the cargo manifes1$ properly indorsed by the boarding officer. and themaSler shall immediately prsenl to the Collector the original copy of tile cargo manifests property indorsed bythe boardmg OffiCer, ens., for inspection, the ship's Hlgister or other documents in lieu thereof, together With theclearance and other papers granted to the vessel ill the port 01 departure lor the Philippines.

/SEC. 1008 Transit Cargo. _When transit cargo from a f()(eign port or other local ports is lorwarded frorr:the port of importation separate manilest, in triplicate, shall be presented by each carrier,

SEC: 1009 Clearance of Foreign Vessa/s To and From Coastwise Ports. Passengers or articlesarrMng a oad upon a toreign vessel maybe carried by the $arne vessel Wough any port oll!ntry to theport of destination in the Philippines or articles intended for export may be carried in a foreign vessel through aPhilippine port.

...

Upon suCh reasonable condition as he may Impose, the Commiuioner may clear foreign vessels lor anyPQrt and lIIlIthorize the conveyance therein 01 either articles or passengers broughl Irom abroad upon suchvessels; Ilf'Id he may likeWise, upon such conditions as he may impose, al~'oreTgi\ vessel to take cargo andpasseflgers at any port and COovey the same, upoJ1 $lICh vesset to afo~n port .

~ . I$EC. 1010.' Requirem&nt as to DeWlJi)' 01 Mail. A lIesse! arriving wllhin a collElctlon dlsillct in the

Phihppirl!S shall riot be permitted 10 make entry or break bulk until it is made 10 i1pp63l, to the sati$faction ofIhe corlector, that the- master, consignee or agent of the vessel is ready to deliver 10 the postmaster 01 toorlearest post office ill! mail matter 011 board such vesset llfId de~ined lor that port. COIIectOfS are aUlhor;zed 10examine end search lIessels for mail carri,.a contrary to law.

/SEC. 1011, ProducliOll ~p~;~;;in6 (;Tew. ~he master of a Philippine ves~el r~Urni~g'fr(lm ilbroad Shallproduce the entire crew listed in the ve!!>eTs shil)ping articles; and il any member be missing, the master shallproduce proof satisfactory fo fh~'Colleetor that such member has died, absconded, has been forcibly impressedinto other service, or has been discharged; lind in case of discharge in a foreign country, he shall produce acertificate from the consul, Wce-conwl or consular agent of the PhilippilleS there residing, sho.....lllg that sllchdischarge was eHected with the consent of the representative of the Philippines aforesaid./ ... .. . ....

SEC. 1012. Record of Amva! and Entry of Vessel". A record shall be mlde and kept o~n to pUb}lcmspectiofl in every customhouse of lhe dale 01 arlival and entry 0' ell vessels:

~EC, '1013, Arrosf of V9ssel Departing BiJfora Entry Mad8. When a ..:essel arriving wilhin the limits of acolleclion dJ$trict from a foreigll port departs 01" altemph to depart before entry shall have been made, not be-ingthereunto compelled by stress of weather, duress of enemies, or olher necessity;the Collector of the port or thecommandei :01 any revenue cutllH" may arfest and bring back such ves!>el to the most conwmlent port.

"., ')'.'

SEC'Ot4. Discharge of Baltas/. - When not brou\lM to port as article, ballast of no commercial valuemay be dischargeSEC. 1015. Time of Unladirlg Cargo. Micles brought if! a vessel from a foreIgn port shall be unladenonly during regular working hours on regular work days. Unlading at any other time or dily may only be dOlleupon authority Of the Collector c:miditioned on lf1e paym9flt of losses and overtime pay by the interestedparties,' ' , .

, , ,', '," ,. .

SEC.' 10'16. ranee 01 VeM6I throUgh Necflssity. _When a vessel from a foreign port tS compelled bystress wea er' or other flecesSity 10 put info any other port than that of her destination, the milster within

~!li5i1UI9'IQ:efter he.- ,,,ivai, shall make prote!>t under oalh selling lortl'l the causes Dr circumstances ofsuch flecessity. This protest. if not made before the Collector, must be produced to hIm, and a copy thereofIOOged with him.

Within the ':fame time, the master shall make II report to Ihe Colfeelof if lOy part or the cargo was uniadenfrom necessity or lost by casualty before arrival, Blld such lact should be made to appeer by sufficient proof tothe Collector wtlo shall give his approval thereto and the unlading Shall be deemed to have been lawfullyeffected." .' , .. ' ...

~~".101 nlading r:f Vess~ in Putt from Necessiry. If the situation is such as to require thaunfadingof ~ pendil'lg sojour' in port, the Colteclot" shall, upon suffidlMlt proof 01 the neoo!>sity, grant a perm"therefor, afld the articles Shall 'be unledefl and stored under the supervision ofti'll! customs authorities

. At tlie request: of the master of the vessel or 01 the owner tnereof, the Collector may grant permission toenter ami pay Ihe duties, taxes and other charges 011, and dispose 01, such a part of the talgo as may be ofperlsh

Upon departure, the oilrgo, or a residLle thereof, may be reladen on board the vessel, and Ih*! ve~sel mayproceed with the same to her destination, subject only to the charge for storing and safe-keeping of the articlesand the fees for entraoce and clearaoce.

No port charges shall be collected on vessels entering through stress of weather or other causes abovedescribed

SEC 1018 Entry and Clearance of Vessels of e FO{elgn Government. - The entry and c1e

1, Name or owner or operator of aircraft, registration marks and nationality of aircraft. andftight number of idi!IltJfication:

2 Poinl 01 clearance, data thereof and destination:3. Health and customs clearance;". Itine'ary of aircraft, induding information as 10 airport of destination and departure date.5. Names and nationality of crew mambeJs,6. Pilssenger rnanife.-.t sllowiflg place 01 destination:7. Export cargo manif~t showing inlormatioo as (0 airwaybm numbllr, the number or

package", related to each airwaybill nu~. na(Ufe of goods. destination, and g,ossweight. together with a copy of each airwaybill securely attached thereto: and

6, Store fist showing stones laden

SEC " 12, Oath of Person ii' Charge of Departing AIrcraft. - The- pilotin-comrmInQ or aUlhoriled agef'tof such dep3rr'"g ailcraft shall also state u1der oath to the effect thaI:

a. All cargo comreyed on said aircraft destined 10 the Phi~ppine:o has. been dUly discharged orlIccounled lor.

b He has mailed or delivered to ~ Commission on Audit a bue copy of the ournard generaldeclsration.

c. He has 1'101 received nOf will CO{lvey any letter, or packet not 1111(>losOO in properly stampedenvelope sufficiellllo cover pO'$tage, except t!lose relating to the ca'90 01 the .ircraft, lind thathe has delivered to The proper foreign port all matlS placed 00 board said Iloircralt before itslasl clelilrance Irom tMe Philippines.

d If clelilring without pliissengers, the aircral'l: 1'

~C 1205. Imporrarir:m5 by Ihe Governmenl. - Exteptrhose ~rovided for in Section One hundred and nileof thi, Cadi. aU Importations by the governmll!nt for its aWTl use or that of It, subordmate bran:::hn ori!1st'umen1alil;es. or corporations. agencies or ,"Jlrumentaliues awned or controlled by the governmenl, shall ~subject its. talltS. lees and other chargel providect for in IN$ code.

EC 1205. urisdictioll of ~IO' 0W'f'" ImporfMioll of Mld9s - The Collector shalt cauSoe all ii1l11cte1;enlerlng ttl JUflsdlclJon of his distflct and desllned lor importatlon through hiS port 10 be entered al theeustomhoo..rse. sh,ll CllUSOi! II such articles to be IpprliSltd lind cl.assi"'ed. end shill nsess and collect ther1dG'"ei>-;ii'lfItS and OIher charges thereon, ilnd Sohal! !>old poneu.iI)n of all Imported articles IIpon v.hich d':!.!!e~_talfes. and other tt1arges hiil...not been paid o. secured 10 be paid. disposing 01 the salm! "ccmd,"g to law.. . ---~EC. 1207 Jumdrc:tloil of Cc:'eclOl'" OV9r~ 0(~ed ImperlaliM - Whe/e "rticle$ are oJ

prohibited wnportaliof> or subject to importat'Otl only upoI'l condibons pt"esaibed by l.J.v. II. shll be U-e duly 01tne Collector to exerClSl! such jurrsdiction in respec:l thereto a'S WI. prevent Imporllhon or othelWlW> $ecu!ecompllince with arllellal requirements.

~C. 12~o. Disposifjon oIlmporfed Alt.des Remlliw7g on Vessel AAfJI Tim! for UnI

or pl"otest, be final Ml! conclusille upo'! all parties, unless the liquidation 01 the Import entry was merelytentatiVe.

SEC. 1604. rreatnwrn of Fraelrons in the Liquidation. - In determlflillglM tola! amount 01 dulles. laxes.surehafges, and/or other charges 10 be pail! on entries, a fraction ~f a peso less than fifty centallOj shall beoisfegalded, and a fraclion of a peso amounting to fifty centallOs or more shall be considered as one PEso. Inease 01 ollerpayment or underpa}'mellt of dUlies, talSEC. 1707. 9~lTe

~-,

For Ihe purpose of correcting errors specifIed in the next preceding p~r~graph Ihe Collector is authorlZlldto reliquid~t! $ntries and coliect "ddi!ional charges. or to make refunds on statements of error wlthm thestatulory time limit

~c. 17Q;)C . fOf RefUlld of Duties nd Taxes and Mode of Payme . All claims for refund of dutiesSh'in be made in I 1/1 an orwardett 10 Ihe Collector to whom sue: u ies are paid, who upon receipt of suchclaim, shiln ~ri ame by the records of his Office, and if round to be correct and II'l accorllance w~h law,

sh~11 certil) Iha same 10 the Commissioner with his recommendation together With ~II necessary papers anddocunWflts. Upon receipt by tile Commissioner of such certified claim he Shill cause Ihe same to be paid if10l'nd correct ..

If a result of the refund of customs duties there would neceuarily result a correspom1ing refund of Internalrevenue taxes on Ihe same importatioo, the Collector shall likewise certify the same to the Commissioner whOshal! cause the said excess taxes to be paid, refunded, or lax credited in favor of the importer, with adv;~e to theCommio;sioner of Internal ReYerllJe.

PART 7. ABANDONMENT OF IMPORTED ARTICLES

f{.f tNt4 1~EC 180t, Abandonment, Kinds and Effect! of. - An imported artide >s deemed abarldoned undel a~Vor the following circum",lances:

..t-a When the q:,llQer, ifO,p.ll!ter, consignee of the imported article expressly signifieS in vtrill!J..9 to the

Collector of Customs his. intention to abar'ldon, or ./b, When the owner,~porter, consignee or inlele",ted party Mterl*: f\~ f.tds til 'ii' Be eorry W!!.hJ!1

~PO) daj,\.S, ljlotl shall pot be edendlble, from the date olGiH;_~'fHfthe last package from thevessel or aircra QylhavIIl9 fIled such entry. faits tQ claim his importation within filU:enj.L"iLiI~$.which shall' , from Ihe qalg pI posting ollbt nolia' 10 claim Such ,ml'0rtllllOn

Any pef$on wha.abanrfpPf an artiC!~whO fails 10 cl!im his importatiol'l as provided for in the precedmgparagraph shall be deemed to have renounced 811nls Interests and property rights therein (R A, 7651, June 04,1(;193),

/ -sEC. 1802. AbandocmSnf of Imporled ArticJe~. - An abandoned article shall ipso facto be deemed Itleproperty of Ihe Govelflment aM shall be di5pO$e

carrying oullhl provisions of this section shall he prescribed by (he Commissioner with the OIpproval of theDepartment head: ArId Provided, finally, That the several cllarge$ llgainst tile bond 01 any smelting warehouseestablished ,under the pro"isions III this section may be cancelled UpOrl tile exportation or trarlsfer to a bondedmanufacturing warehouse from any other bonded smelting W'8rehouSe established under this section 01 equantity of the same kind of metal, in excess of that covered by open bonds, equal to the amount 01 metalproducible tram lne. slTMllting or refining. or both of Ihe duliable metal eonta;ned in the importe

lea\l;r,g the Philippine territory as provided in seelio'l 3 (a) of Republic Act Numbered Fiftyone hundred ~ndSe'Jenty :hree shall continue to be in lorce and effect.

~ Persons having Poke AUfho'lly. For I~e enforcement 01 the tariff and customs laws, therOIlOl'~:pe~are authorized to effect se~~h_es, seizuru and arrests conformably with the provision of saiclavtS. ~ _. --~

iI. ~~;rOf the Bure~u._Of.5~u.Sloms. di~trict ~(lllectOfS. deEuty .collectors, police otlicers, ilIgents,ir,speclors and guards ollhe 8ur,au of Customs.; . -

b OfflCi!ri cillh!! Phillpplne-Na-..y and other members of the Armed Forces of the Philippil\es and nallooalI~w enfbrcemenl i~fendes"Wh~illuthorized by the Commissicner: ' ~

c. Ollidals' of the Bureau ollri1ernal.Reo.ll; on all ("ases falling within the regular perlo;mance of theirdulles, when the ~yml:l'iro'-mternalrevenuelaxes are irwclved:

d. O!ftcers generally empow!led by law to effect arrests lind execute processes of courts, when eelingunder the direction of the Collector.

In order 10 al/oid connicts, and insure coordmalion among these persons hal/ing aUlhori1y to effeclsea'ehE'$, seizur~ '3l'.d Ilrests lor Ihe effective enforcement of, and conio(mably with tanh' and customs lawsthe Secre'.>uy of Finance, shall, subject 10 the approval 01 the President of the PhIlippines, def,ne the scope,areas clNered, procedures and condilions gOl/erning the exercise of such police authority including cIJstody andresponsibIlity lor the goods seized The rules and regulations to Ihis effect shall De furnIshed 10 aU theQov""""f"lent agencies aM personnel concerned for theil guidaoce and compliance. ar:d Shall bf' published in anewspaper of general circulation,

~' 22iY Place Wileffl Authority May be &erc#;8d. - AP persons conferred with the powers In theprl1ce ;: sedion may exercise the same at any place wIlhin lhe juriscliction of the Bureau of Customs

~~il'l~ ExerCi$e of Power of Seizure and Arres/. It shit" be withIn the pt)Wer of a c\lslQms official orperso orlled as aforesaid, and it shall be his dUly, to make seizure of aily VeS)!~8~rcralt, c~!.9'?, art",le,amwal or othe~{l~Qle_property,when the same is subj&c1 to forfeiture or tiBbie for any linr-imposed undertariff :lind customs lil\~, rules and regulations, suc!l power to be exercised in conformity with tt>e law aM Ih!"provisions of this COde: PrOl/ided, That the powers of the Fisheries Commission to mal(e arresti, searches andseizures as provided in section lour paragraphs .g" and'r of Republic Act NlJmbered Thirty-five hUMled andtwelve. a'ld the Philippine Coast Guard I,mder Republic Act Numbered Fitly-one hundled and seventy-threeshall conlinue to be in force and effect

~. 2;;) Duty 01 OfrICel

sworn applicstian sha ..... ing probable cause and particularly describing lhe place to be searched and person orthing to be seized,

QEC.~ to Search V{jS$el~ or ~r,fl~ and Persons or ArricMs Con...e~ Therm. - II 5h inc:udedin the bill

For the um, plIrpO$e, "agent" shall be deemed to InclUde not only any agent in facl 0' the owner 01 theseized pt

The scope of a protest Shall be limited 10 tl1e l>ubjecl matter of a Sil191e adjuslment or oIlier indepelldflnllransactiotl; btlt any l1umber Of issue ma~ be raised In a protest with reference 10 the pilrtic;ula.r ilem or itemsC('lnslltuting the subject matter of the pratest

"Single ad:juslmenl', as hereinabo",e use, refers to the entire content of one liquidation, including allduties, fees, 5urct1!lrges or fines il'lcident thereto,

~C 2311, Samplu ~o ba Furnished by Protestirlg Parties_ " Ir the natUle of the articles permit, Importer'llming protests irwol",ing questions of tael-musl, uPon demand, supply tne collector with samples of the art:cteswhich are Ille subject matter or the prolest Such samples shall be verified by Ii'll' customs official who madethe classincatiOl1 1Igai'ns\ which the'prcitests liTe filed,' '" .

k";231:>Decisibn or Acti~n ~y c~ct~ In Protest and S9izur& C.SllS, When a protest in properform is presented in a case where'protest is required, tlie Collector shall inue an order for heartng willlil'lfil'l:eeJ1

, " I' '.. . .", , ' -(15) dayS lrom receipt 01 Jhe protdt Il'ld l1&ar the metter Inus pres.e-nt&d. Upon the termination of the heari~s,the Collector sl'lillil render a decisiOr\ within I~irt.l' (30) dillys, and if the protUI is sustained, in Whole Of in part.he shall m~ke the appropriate ordei-, ilia entrY reliquidated nessary_

In -s.eizure cas'e&', t~e ColleCtor-, aner a hearing shall in writing make a dedaratlon or forfeiture or rix theamount of tne line or take such other action as may be proper,

~c, 2~eVrew of Commis!ionflf,. The persOl'l Sggriwed by the decis'lon 0( letioo 01 the CoM~or in~SCl idii!d upon prooost or by his action in any cue of seizure may;'witl'lln fift~n (t5) days afternetiflcation'on writing by the Collector of his aclior\ or decisions, fil. a written notice to the Collector With a copyfurniShed to -n.e Commi;slcmer of his intention 10 "IiPPeal-tha action or declsion 01 Ihe ColJotCto( to theCori\missiorl-et. Thereupon"the Collector shall forihwitl'l'triinsmil ell fhe (eco'rds of the pr'>Ceedings to the

"'.' ._r _. _ ' . _ ...

record 01 the case by the Commissioner or by the Secretary of Finanee, as tile case may be, no decision isrendered by either of them, the decision under review shall become finel and (;'!)(ecutory: Prol/ided, further Thatany party aggri&\led by either Ihe decision of tile Commission or 01 the Secretary,of Fimulce may appeal to theCourt ot TSlC Appeals wit 'n thirty (30) da I tram receipt 01 a copy of such de.cision For this purpose. RepublicAct Ilumbl!red l!le\l1 ._~ ellty~_ hereby amended accordingl>,.r- --- -

Except as provided in the p'eceding paraglaph, the svpervisoty authorilV ollhe SeCletary 01 Finance overthe Bureau 0' Customs shall not e:

pilot's in command report, and the discrepancy is not satisladory explained, the vessel Of aircraft shall hi>' fonedin a sum!'Ot exceedinylive thousand (P5.000) pesos,

. .

SEC 2526 False SCat6l1llllnl 01 Ve.s.sBfs or Ait'cra"'.s Destin8licm. When the master or pilot in cornmanaof a vessel or aircraft laden with articles shall make. false statement as to the next destin.tion of such vesselor t1ircraft IM\en information conceming the same Is required of him by a customt, official, such vessel oraircraft shall be fined ifl a slim not 8xceeding ten thousand (P10,OOO) pesos: lind Ihe circumstances that ;'Ivessel or aircraft aftel clearing for a certain port of destirlation \Ioes to some other port, not beirlg impelled to dt!so by necessity. $hall be p,ima facie proof tllal the oriOlnal statement of tile vessel's or. ai/craft's actualdestinatiorl was false.

SEC. 2529 Oth8rOffences. -"A ves~~i shali be fi~ed in an amounl 'hereafter fiXed to,:(I) Anchoriog al any dock, pier. wharf. quay, or bulkhead without rat guards, two hUr'lCred (P200) pesos

lor coastwise vessels, and one thousafld (F'1 ,000) pesos for overseas vessels:(2) Dumping garbage or :olops over the side within Il'lree miles from the nealrest coastline, one thousafld

Pl,OOOl pesos; ': .', . .. . .'... :(3) Dumpiflg Of causiflg to spreed crude oil, kerose"e or gasoline in Ii'll! bay or at the piers within three

miles ftom the nearest coastline, noe thousand (P1.000) pesos for eech offence;(4J loading \Iasoline al a place other ltlafl thai designated by the /egulaliofls. One thousand (Pt,ODO)

pesos lor each offence: '.lS) Causing the emissiofl arid spread of harmful gas, fumes and chemicals, five thousand (PS.DOO) pesns

/ for each offem:e, ' '"'

SEC. 2530. PropfJrty Suojeet ro Forfeiture Urn/fir Tariff !lInd ellSroms Law. .~. Any vehicle. venel oraircren. cargo, article und other objects shaW, Uflder the following COrlditioflS be subjected to forfeiture'

a Any vehicle, vessel or ,aircraft, incl4(lirlg .cargo, wtlich shall be used unlawfully in the importatiofl or.exportation .of articles, or in eonveylflg. andlor .transportiflg conl"!band :or, srnlJggled articles in

l:OI'rtmercillt quantities Into or trom any Philippine por1 or placo&. The'mere carrying or holding on boardof cOrlllabafld or smug\lled articles in commercial quantities shall subject sLlch vessel, vehicle, aircraft01 any 0(h8l' craft to forfeilure; Provlded.-:That the vessel, or alrCf3/t. or Ifly olher craft is nol used asduly iluthorized common carrier and as such a carrier it is not chartered or lellsed; "

b. Any vessel enga\ling in the coastwise which shall have Oil board arlY article of loreigfl growth, produce,01 manufacture in excess 01 the amount necessary for sea stores. wnhout such article having beenproperl,. fnlered or l~gally imported: . ,. ' . .

c. AJtt vessel or aircr3" into which sh311 be transferred cargo unladen contrary to law prior to the arrivalof the importiflg vessel or aircraft al her port of destinati,on; ..

. .. , ',.' " ,

d Any part of the cargo, stores pr .supplies of a veSoSel or airclal't arriving from It fOl'eign port ....-!lich isul'\llden before arrival al the vessel's or aircr31'ts port 01 destination and without lIuth, ship or aircra~.stores.afld.. supplies .shall riot. be forfeited il suchunlading was due to accident. Siress. 01 weather o' other necessity aOd is subSequently ippraved bythe Colleetpr; ... :' .

': -'

,"*"--

e. Any article wt1ich IS fraudulently concealed In or remo....ed contrary to law from an)' pubHc or privatewarehouSe, contilliner )'ard or container frlljght station under customs supervision:

f. Any article the importation or exportation 01 which ll; effected or attempted conllar)' to law, or anyattlcl. 01 prohibited importatlon or exportation, and aft olller 8rtides which, In the opinion 01 Jt>&

Co.~or, hPe been used, a~ or were entered 10 be used as in~lrllrnMlll in Che Importat,on Of"ll.lfpolt.lion ollh,lormer:

g. Unm.anifnted 8/ticre found 00 any "esse( or aircraft if manile5t therefore i~ required,h. S6ilI stOln or aitctaft stores adjudged by the Cclltetor 10 be excessi\le, wtIfIo !tie duties assessed by

lite Collector thereon are not paid or secured brtJrootith upon assenmenl of the me.,Any package 01 imported article 'Hhieh i. Iound by the e)l3fTllning offici.l to COfltain any article nOlspeeified in Ihe ,nvoice or enlry, mctuding aU other paclcages purporledy COnlil'l'll"'!t mportw article!>Sll'Tllliil' to those declared i'l the invoice or entry to be the COrients 01 Ihe mlsdeelared package:Provided, Thallhe Collector is of the opinion lhalltle misdeclaralion was contrary 10 I-:~ BOlIn. cases. trunks, envelopes and ol:hN contillil\efs of wtlatever characl:lr used JIll receptacles or as

device to concul articN! which is itself subject to forfeiture uncer the taritl'nd customs law:s 0' wtuchIS SO dHltlnlld IS to conceal the characler of such articles;

k. Any COIWItyllflCt actually being used for the transport of articlH subject to forfeilure under the tarinand customs laws. wilh lis equipage or frappings, and any veNd! simllar1y used, together with ils8quMlIf' .nd appurtDliclnces Includmg the tenl, sleam or ot~r moIMi power drawing 0/ propei~ngIhe same. The mere conveyance of contr.band or smuggled artIcles by $lKh beast or vehicle s;han tiesuffiCient caU!>e for the outright seizure and confiscation 01 such 00a51 or YehICI

.Ielelence to Ihe laid vessel or aircral'l, the vessel or aircraft itself may be seized and ll.lbjected in anadministrative proceeding for Ihe satisfaction 01 the fine for wIlich such person would have been liable.

2535. en 01 Proof in S&i7UItJ andlry Forf9irure. - In all ploceedings taken for tt1e SeiZUle and/orfortel l.lr >'esse!, vehicle, aircraft, beast or articles under .he provisions or the tariff lind customs I

~ $3 P

In an such C;lses the Collector shall report fLJII~ his action in the matter, together wi~h all the pal":iclliars 10the CommissiO(ler and to the Chairma(l, Commission on Audit. After one year, all unclaimed special depositsshall be considered by the Bureau 01 TrEasury a... cU'.>toms receipts.

~. 2607. Dispot.i!ion of ArlicIes UsbJe to Delenmalion eerj$h~ble_ articles shan be deposited in anyappiup.-iale'&:AIded Warehouse: and. if not immediately entered fo' export (]( 10' lr.lnsportation 110m llie ~ssefor aircralt in wh,,;h ,""ported or enteu,d fOf consumption and the duties and taKes paid thereon, such articles

ma~ be sold II luction, Iftll!" such public notk:l'!, not exceeding three da~s, liS tile necessities of the easepermit

Wilen seizure shall be made of property wl1ich, in the opinion or the Collector, is Nable 10 perish or bewasted or to depreciate greatly in value by keeping or which cannot be kept witholJI great dispropo,l

. ... ..

V,""\'" "'"II the article offE!!red for sale is nOl $uitable either for official use or Charity, then the same may be re-

exported as government property ll\rough the 'Dep.rtmeot or 1'&88 ' 8rly other goverllWenl entity thrcu9h,..dpr or fale. II the article cannot be disposed of as provided above, th... Collector shall report the matterimmedllltely 10 the Commissioner who may, subject to the approval of the Sec[e!a'y 0' Ejnance, dispose of thearticle to ltIe best advantag8 of the governmenlln a "8lIotil1ted prtvat8 58. which shaM be coosummated in the

pr~e of a repr~ser'ltatiYe O_f.~h' '&tl)m'fs5ion on Auo.it,~n!h.~ m~nner pr~vided for by this ~O.d~, .'SEC 2611. Troafmlml of Dangerous EKpIotilVes. - Gunpowder or ottler dangerous Of explosive

SUbstances, illcluding firecrackers, Shill not be 'deposited in boonded warehouse, and when not entered forimmediille use. Iral'lSportation Of export. shall be r.ubje.ct. to such disposition. in lhe discreliDn of theCommissioner 01 Customs, consistent with public sllfet>'

EKPenses incurred In such dt:;~iOn shall COflstitute II lien on the ortielet and 8 chefge against lhec....ner. , ..

/ I"~EC 2612 Dnposition of Smuggled Micfes Sm~gg!ed articles: after liabtllty to seizure or fOffe-tureSMII have been established by proper administrative or judicial proceecllngs in conlormity with the ~rOvr.>loos oflhis CoOe. shall b& disposed of as pro\lided for in section ti1llysjx Modmd and len: P,o....ided. That articleswhose importation 1$p~ under Sectjpn One hundred to sUb-parllgra~hli b, c, d, e and j sl'1aR, uponorder to the Collectori~ be bllLD.!!Lor destroyed. in such manner as the case may require as to renclerthem absolutely worthless, In the presence of a repr~;mtative each from lhe CoMminlon on Audit. Ministry ofJustice. Bureau of Customs. and if pOSSible, any repres~ntatlV~ ofthe.priv~te. sector \

, PARnFEES AND eH.RGES"'Y~I ... . ...

SEC. 3301. QJstoms Fafls and CJlargas, For services remlflred Bnd documents Issued by the Bureau ofCustoms, the following fees shall be charged and collected, by affixing documentary customs stamps in thecorrect amount upon the document or any 'other paper Whicl'1 is the subject of the charge and by thecancellation of such stamps In Ihe manner prescriHd by the Commissioner. and no such documMf Of anyother paper shail be issued I)r granted by any customs official until the correc'l amount tlf lltamps Shall tlavebeen atft~!!d and cancelled: Pro....ided. however. That fees of twenty pelos or over may be pllid in cash.

For each amendment allowed to II foreign inward manifest.. .. " " ,.,."" "., ,.,. F:30,OOFor each permit to OthelS Ihan passengers to take cigars IIboard

ship. per thousand cigars.,.,.;..... .- ,;., _ :.. ,,.... , '., .... ' " .......... ,30.00For each permit (to other than passengers) til lake cigarettes aboard ship.

per lhouund cigarettes.. ..........., _ , 30.00For each original import or export entry exceecling fifty pesos in alue , , , ,,.3000For each entry for .immedialll transportation in bond 30 00For eacl'1 original internal revenue'enlry..,..0:'.;.,:: .. ":': ,.... : : ;.~: _" 30.00For each original wilhdrawal entry from any ~onded warehouse.. ,. '... ,., ,... "." .. ,.. ,., ..30.00For each bond accepted at r_d , ~................ ,. _._ ................... .......... 30.0CFor each approval of application in respect 10 transaction covered by general baM., , ,.,30.00Fat e~ery formal prolest filed before, the Collector of Customs..................... , ,, , 50.00For each appeal in protest and seiZure CliSeli.,..... :..:: .;.. .-....:... :.:...:............................ _..50.00FI;Ir eaCh certificate nat hereinabo....e specified. e~dusive 01 such ere made In the course

of routine administi'aton1nthi!buriiilt'~rch.dO'nol subseNe any sp&Cilll .' --'. "'"pecuniary interest of the party concerned Iherein..:, .. ;....~:. ;; : ,....L 30.00 ".

. ~. ,. .., ',"' - -,. - ,~

sec. 3302. Othfll Chargtts. '. When any aoticle is sold or any~ reMe,ed by the Bureau of Customsin alny matter far wI1lth a charge may be collected legally. nc fee therefor having been fixed by law. Such chargesnail be all '!iuch amounl IS mOlY from lime to time be fixed by ~gu)ations or Order of the Commissioner amiapproved by the Departmenl of Finance. ilnd the pay~l of sveh Charge rnay ~ made by aNi)(lrrg endcancelling the dacumef1tary customs stamps

: ,- I :_~:.::;~~. . :""'" .:"''-, .'. . .....1.. ....__.. ..SEC 3303 E"~,,:I'o' Failure fa Affix SltNnp UPOll Document. No ddcument or any other paper upon....

which no documentary customs stamps I'1Bve been affixed and callcelled Shall be received ar recogniz.ed by anycustoms offICials '.'

.-. ""

sec_ 3304.. G~r41J!Fovi$iRflOIl the AJJfhOfily to Jncrea!lrt qr.D6cr8aslJ.FH!I and Charges. The ralesof the fees iln~ diarge;s ill an ports in the Philippines shall be those now provided for under $(lelion thirtythreehundr~ and one of:t~i~ Cade: Provided. however. That Ihe Se,?relary of Finilnce may. upon recommendation

-'..

of t~e Commi""iollel of Customs, Increase or decrease the saiCl rees, dues anCl charge" collectible by the8ureau of Customs to prolee~ the illtere"t of the Government.

TITLE VlI1 - GENERAL PROVISIONS

PART I. CUSTOMS BROKERS

SEC. 3401. OuMflcaliom of Applica{\fs (or Customs Btol