FAQs in Tariff and Customs Code

POWERS AND FUNCTIONS OF BUREAU OF CUSTOMS (code: APE)

1. Assessment and collection of lawful revenues as well as fees, charges, fines and
surcharges under the tariff and customs laws
2. Prevention and suppression of smuggling and other frauds in violation of the tariff
and customs laws
3. Enforcement of tariff and customs laws and other rules and regulations relating to
tariff and customs administration
CUSTOMS SEARCHES AND SEIZURES
It is within the power of a customs official and his duty to conduct searches and make
seizures of any vessel, aircraft, cargo, articles, animal or other movable property
when the same is subject to forfeiture or liable for and fine imposed under customs
and tariff laws, and also to make arrests for violation of any customs and tariff laws.
For the effective discharge of his official duties, he may also at any time enter, pass
through, or search any land or enclosure or any warehouse, store or other building,
not being a dwelling house.
NOTA BENE: Customs searches and seizures do not require a prior
search warrant, EXCEPT search of a dwelling house.
CUSTOMS FORFEITURES
Forfeiture actions are in rem and directed against the res or the thing itself. It is not
necessary that the vessel or aircraft must carry the contraband. It is not likewise
essential that the vessel or aircraft must come from a foreign country.
GENERAL RULE: Knowledge of the vessel-owner is not required. Thus, even if the
vessel-owner does not know of the contraband in his vessel, the same may still be
subject of forfeiture.
EXCEPTION: Forfeiture of a private carrier used in the conveyance of illegally
imported or exported articles requires knowledge on the part of the carrier-owner or
his agent of the unlawful act (Sec. 2531, TCC).
EXCEPTION TO THE EXCEPTION: The following constitute prima facie presumption
that the owner of the private carrier has knowledge:
1. If the conveyance has been used for smuggling at least twice before;
2. If the owner is not in the business for which the conveyance is generally used;
and
3. If the owner is not financially in a position to own such conveyance.
DOCTRINE OF PRIMARY JURISDICTION IN FORFEITURE CASES
The Collector of Customs has exclusive jurisdiction over seizure and forfeiture
proceedings and regular courts cannot interfere with his function. From the decision
of the Collector, the appeal lies with the Commissioner of Customs and thereafter
with the CTA.
Regular courts have no jurisdiction over abandonment proceedings. Whether or not
the declaration of abandonment is legal or not lies with the Commissioner of Customs
and within the appellate jurisdiction of the CTA.
The question of seizure and forfeiture is for the administrative authorities to
determine, the Collector of Customs in the first instance and then the Commissioner
of Customs. This is a case where the doctrine of primary jurisdiction controls.
From the moment the goods are actually in the possession or control of the Customs
authorities, even if no warrant of seizure had previously been issued by the Collector
in connection with the seizure and forfeiture proceedings, the BOC acquires exclusive
jurisdiction over such imported goods for the purpose of enforcing customs laws.

REQUISITES OF FORFEITURE UNDER TCC

1. Wrongful making by the owner, importer, exporter or consignee of any declaration or
affidavit, or the wrongful making or delivery by the same persons of any invoice,
letter or paper all touching on the importation or exportation of merchandise
2. That such declaration, affidavit, invoice, letter or paper is false
NOTA BENE: Probable cause must be established to warrant forfeiture.
Once this is taken, the burden of proof is on one who would take
exceptions thereto.
REQUISITES FOR FORFEITURE OF PRIVATE CARRIER
1. Must be actually used for the transport of articles subject to forfeiture
2. Owner of the private carrier or his agent must have knowledge of the unlawful act
ABANDONMENT BY IMPORTER
The liability of an importer is limited to the value of the imported merchandise.
Where the importer abandoned the imported merchandise to the Customs
authorities, the Collector is free to proceed with the seizure proceedings with a view
to the final disposition of the articles.
Abandonment (express) relieves the owner-importer from the payment of duties,
taxes and other charges but not from possible criminal liability.
ENFORCEMENT OF TAX LIEN AND SEIZURES
1. Administrative
a. Tax lien regardless of ownership
b. Administrative fines and forfeitures importation is unlawful
PROCEDURE FOR SEIZURES:
Collector issues warrant
Notice and hearing mere posting in the bulletin board is not enough if the
importer is known
Collector renders decision
15d from notice, appeal to the Commissioner of Customs if protest, make
payment under protest
30d from notice, appeal to CTA
PROCEDURE FOR ASSESSMENTS:
If Collector renders decision adverse to government, automatic review by
Commissioner
If Commissioner affirms, automatic review by Secretary of Finance
30d from notice, appeal to CTA
c. Sale of Property
Abandoned articles
Articles entered under warehousing entry not withdrawn nor the duties
and taxes paid thereon within the period prescribed
Seize property, other than contraband, after liability to sale shall have
been established by proper administrative or judicial proceedings in
conformity with the provisions of this Code
Any article subject to a valid lien for customs duties, taxes and other
charges collectible by the BOC, after expiration of the period allowed for
the satisfaction of the same
2. Customs audit keep all records for 3 years from importation
3. Judicial

TAXPAYERS REMEDIES
1. ADMINISTRATIVE
a. Refund abatement and drawback cases; in writing and forwarded to the
Collector
WHEN ABATEMENT APPLIES:
For damage incurred during voyage assessed on the actual quantity
imported
Duty on missing package show that the package in question have not
been imported into the Philippines
For deficiency in contents of package show that the shortage occurred
before arrival of article in the Philippines
Duties on articles lost or destroyed after arrival (a) while within the limits
of any port of entry prior to unlading under customs supervision; (b) while
remaining in customs custody after unlading; (c) while in transit under
bond from the port of entry to any port in the Philippines; and (d) while
released under bond to export, except in case of loss by theft
Duty on dead or injured animals carcass must be removed in manner
prescribed by Collector and at expense of importer
Errors and excess payment manifest clerical errors
b. Protest legality or correctness of assessment; 15d from payment or from date TP
is entitled to refund; meanwhile, importer may obtain the release of goods
c. Seizure written notice (if owner is known) or posting/publication (owner is not
known) and hearing
d. Settlement of case by payment of fine or redemption of forfeited property
- NOT ALLOWED: fraud, importation is absolutely prohibited or release of
property would be contrary to law
- Owner shall offer to pay the fine or the domestic market value of the seized
article (in forfeitures)
2. JUDICIAL RELIEF CTA can review the following cases:
a.
b.
c.
d.
e.

Liability for customs duties, fees or other money charges

Seizure, detention or release of property affected
Fines, forfeitures or other penalties imposed in relation thereto
Other matters arising under the Customs Law or other laws administered by BOC
Decisions of SoF in automatic review Cases