Prepared By:

Atty. Jemina M. Sy-Flores

Chief, Account Management Office
 I. CRIMES AND OFFENSES
1.1 Misdeclaration of goods (Section 1400,CMTA)
-Quantity
-Quality
-Description
-Weight
-Measurement
Resulting to a discrepancy in duty and tax to be
paid between what is legally determined upon
assessment and what is declared
I. CRIMES AND OFFENSES

1.2 Misclassification (Section 1400, CMTA)

-Insufficient or wrong description of
goods
-Use of wrong tariff heading
Resulting to a discrepancy in duty and tax
to be paid between what is legally
determined upon assessment and what is
declared.
I. CRIMES AND OFFENSES

1.3 Undervaluation (Section 1400,CMTA)

-Declared value fails to disclose in full
the price
-Incorrect valuation method is used
Resulting to a discrepancy in duty and tax
to be paid between what is legally
determined as the declared value against
the declared value
PENALTIES FOR MISDECLARATION,
MISCLASSIFICATION OR UNDERVALUATION
-Less than 10% discrepancy No surcharge
-Declared tariff
heading/value is rejected in a
formal customs dispute
settlement process involving
difficult or highly technical
question or official ruling
-Tariff classification
declaration relied on an
official government ruling
PENALTIES FOR MISDECLARATION,
MISCLASSIFICATION OR UNDERVALUATION
10% to 30% Surcharge equivalent to 250%
discrepancy of the duty and tax due
More than 30% -Prima facie evidence of fraud
-issuance of WSD
Intentional or -Surcharge equivalent to 500%
fraudulent of the duty and tax due
-Seizure, regardless of
discrepancy
-Fines and penalties under
Section 1401, CMTA
 I. CRIMES AND OFFENSES
1.4 Unlawful importation or exportation
(Section 1401,CMTA)
-Any person who shall fraudulently import or
export or bring into or outside the Philippines any
goods or assist in so doing, contrary to law.
-Shall receive, conceal, buy, sell, or in any manner
facilitate the transportation, concealment or sale
of such goods after importation
-Shall commit technical smuggling
 I. CRIMES AND OFFENSES
1.5 Failure or refusal of party to give evidence or
submit documents for assessment
(Section 1402,CMTA)
-Owner, importer or consignee of any imported goods,
or the agent of either, fails or refuses
-Upon lawful demand in writing by any customs officer
to appear, lawfully depose or submit to examination or
to answer any material question
-Or refuses to produce records, accounts or invoices in
possession
-20% surcharge
 I. CRIMES AND OFFENSES
1.6 Other fraudulent practices against
customs revenue (Section 1403,CMTA)
-any person who makes or attempts to make any
entry of imported or exported goods
-by means of any false or fraudulent statement,
document or practice or knowingly and willfully
files any false or fraudulent claim for payment of
drawback or refund of duties.
II. Legal Procedure
2.1 Seizure Proceedings
District Collector issues
WSD Seizure Proceedings

Hearing
Law Division
Collection District

Review
(Thru Legal Service)
Office of the
Commissioner Apellate Division

Review
Director, Legal Service
Secretary of Finance

Deputy Commisioner,
RCMG
II. Legal Procedure
2.2 Administrative case
 Investigation
Division, CIIS-IG Administrative case
Director, CIIS

Deputy
Commissioner, IG
(Thru Legal Service)
Prosecution and
Commissioner Litigation Division

Director, Legal
Service

Deputy
Commissioner, RCMG
II. Legal Procedure
2.3 Criminal Case

- Department of Justice
- Prosecutor’s Office
 III. REMEDIES OF IMPORTERS
1. Settlement of Seizure Case
- By payment of fine equivalent to 30% of the
landed cost of the seized goods
- Shall not be allowed when there is fraud or when
the discrepancy in duties and taxes to be paid
between what is declared is more than 30%
 REMEDIES OF IMPORTERS
2. Redemption or forfeited goods
-offer to pay redeemed value equivalent to 100%
of the landed cost.

When not allowed:

1. When there is fraud
2. Importation is prohibited
3. Release of goods is contrary to law.
 REMEDIES OF IMPORTERS
3. Participate in public auction
End of Presentation