N.

JUDICIAL PROCEEDINGS
1. Actions instituted under the authority of the Tariff and Customs Code
shall be brought in the name of the Philippine government and
conducted by customs. Approval of the Commissioner is required in
an action for recovery of duties.
2. Aggrieved party may appeal to the CTA. If no appeal, ruling of the
Commissioner is final and conclusive.
3. BOC has exclusive jurisdiction over imported goods for enforcement
of custom laws. Seizure and forfeiture is for the Collector and then
the Commissioner.
4. Exclusive original jurisdiction of the Collector pertains only to goods
seized pursuant to the authority under the Tariff and Customs Code.
O. SURCHARGES, FINES AND FORFEITURES
1. Violations subject to surcharges, fines and forfeitures
2. Properties subject to forfeiture
a. Unmanifested cargo which is unloaded is subject to forfeiture
b. Possession of smuggled articles is sufficient to authorize
conviction
c. Illegally withdrawn articles may be validly seized
3. Prima facie presumption shall exist:
a. If the conveyance has been used for smuggling at least twice
before
b. If the owner is not in the business for which the conveyance is
generally used
c. If the owner is not financially in a position to own such
conveyance
d. Common carriers if the owner has knowledge of its use in
smuggling
4. Forfeiture shall be effected only when and while the article is in the
custody or within the jurisdiction of the customs authorities
5. Administrative fines and forfeitures shall be enforced by the seizure of
the vehicle, vessel, aircraft
6. Vessel or aircraft may be seized for delinquency of owner
7. Burden of proof shall lie upon the claimant
8. Commissioner may authorize seizure of other articles if no evidence
of payment of duties is shown

9. False or fraudulent practice to make an entry of article shall be

punished
a. Undervaluation reduce duty, escape filing of formal entry,
circumvent quota restrictions
i. False invoice description
ii. False country of origin
b. Overvaluation
i. Avoid imposition of anti-dumping duties
ii. Reduce internal revenue tax base
c. Forfeiture in case of fraud requisites:
i. Wrongful making of any declaration or invoice
ii. Such declaration or invoice is false
P. DISPOSITION OF PROPERTY IN CUSTOMS CUSTODY
1. Property under customs custody shall be subject to sale:
a. Abandoned articles
b. Articles entered under warehousing entry not withdrawn nor
duties or taxes paid
c. Seized property after liability to sale shall have been
established
d. Any article subject to a valid lien for customs duties
2. Property shall be sold or disposed of upon the order of the Collector
of the port where the property in question is found.
3. Property shall be sold at public auction after 10 days notice. No
customs official or employee shall be allowed to bid.
4. The following charges shall be paid from the proceeds of the sale in
the order named:
a. Expenses of appraisal, advertisement and sale
b. Duties except in the case of abandoned and forfeited articles
c. Taxes and other charges
d. Government storage charges
e. Arrastre and private storage charges
f. Freight, lighterage or general average, on the voyage of
importation
5. Any surplus remaining after the satisfaction of all unlawful charges
shall be retained by the Collector for 10 days subject to the call of the
owner.
6. Perishable articles may be sold at auction, after public notice, not
exceeding 3 days.

7. Disposition of articles unfit for use or sale or injurious to public health

shall be ordered by the Collector in such a manner as the case may
require.
8. Disposition of contraband:
a. Ammunition and weapons to the AFP
b. Highly dangerous shall be destroyed
c. Contraband coin and bullion to BSP
d. Other contraband of commercial value and capable of
legitimate use may be sold under such restrictions
9. Disposition of articles for want of bidders shall be used by BOC to
promote collection of taxes or channeled to official use of other
offices.
10.
Dangerous explosives shall be subject to disposition in the
discretion of the Commissioner.
11.
Disposition of Smuggled Articles:
a. Written or printed articles inciting treason or rebellion
b. Written or printed articles or other representation of an obscene
or immoral character
c. Articles, instruments, drugs for unlawful abortion
d. Apparatus or devices used in gambling
e. Opium pipes
Q. OFFENSES
1. Failure to report fraud is punishable.
2. Statutory offenses of officials and employees:
a. Extortion or willful oppression
b. Those who knowingly demand other or greater sums than are
authorized by law
c. Those who willfully neglect to give receipts
d. Those who willfully make opportunity for any person to defraud
the customs revenue
e. Those who permit the violation of the law
f. Those who make or sign any false entry in any book
g. Those who fail to report any fraud
h. Those who without authority attempt to collect payment
i. Those who disclose confidential information without authority
3. Offenses punishable under the Tariff and Customs Code:
a. Concealment or destruction of evidence of fraud
b. Breaking of seal on car

c. Alteration of marks on any package of warehoused articles

d. Fraudulent opening or entering of warehouse
e. Fraudulent removal or concealment of warehoused articles
f. Violation of custom laws and regulations in general
4. Liability for unlawful importation
a. Duty to declare
b. Administrative penalty is separate and distinct of criminal
liability for smuggling
c. A Penal provision:
i. Fraudulently imports
ii. Assists in so doing
iii. Transportation, concealment, sale
d. Kinds of smuggling
1. Outright secretly contrary to law without paying
duties imposed
2. Technical fraudulent or erroneous declaration to
avoid duties
ii. Contraband refers to articles of prohibited importations
and exportations.
iii. Elements
1. Fraudulently or knowingly imported contrary to law
2. The respondent if not the importer himself must
have in any manner facilitated the transportation,
concealment or sale of the merchandise
3. Knowledge or possession
4. Knowledge that the goods have been imported
contrary to law
iv. Mere possession is enough to convict and payment of tax
due after apprehension is not a defense
R. SUMMARY OF CARGO CLEARANCE AND REMEDIES
1. Cargo clearance/Classification procedure
a. Importer shall accomplish IED and pay
advance duty to AAB
b. IEIRD to be submitted to BOC along with
other forms
c. Computation of duties and taxes
d. BOC conducts review of submitted documents

e. Importer given 10 days to justify accuracy of

declared value
f. VCRC will calendar the classification issue for
deliberation
g. Elevation to CVCRC
h. Resolution
i. Endorsement and implementation
j. Subject to only one MR
2. Remedies of the BOC
a. Tax lien
b. Administrative fines and forfeitures
c. Reduction of customs duties/compromise
d. Search, Seizure, and Arrest
i. Collector of customs has exclusive
jurisdiction over seizure and forfeiture
ii. In case of grave abuse of discretion, an
appeal lies to the Commissioner then
the CTA
iii. Not criminal in nature
1. Proof beyond reasonable doubt
not required
iv. Warrant is sine qua non condition
before any forfeiture proceeding
e. Judicial remedies
3. Remedies of the taxpayer
a. Protest
i. Writing
ii. Point out the particular decision or ruling
iii. State the grounds
iv. Limited to the subject matter
v. Filed within 15 days after payment
vi. Furnish samples of goods
b. Refund
i. Missing packages
ii. Deficiencies in contents
iii. Lost articles
iv. Dead or injured animals
v. Manifest clerical errors
vi. Drawback

c. Settlement of any seizure by payment of fine

or redemption
i. Instance of fraud
1. Use of spurious documents
2. Prima facie evidence of fraud
3. False machinations, concealment
of facts
4. Similar cases
d. Appeal to the Commissioner within 15 days
e. Abandonment
f. Appeal to the CTA within 30 days
i. BOC liable to pay the value if shipment
can no longer be delivered without
interest