Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

House Bill No.3 29

Introduced by Representative Midy N. Cua
Lone District, Quirino

AN ACT GRANTING AMNESTY TO STAKEHOLDERS WITH UNLIQUIDATED AND/OR
UNSETTLED SURETY BOND OBLIGATIONS WITH THE BUREAU OF CUSTOMS FOR
BONDS ISSUED ON OR BEFORE DECEMBER 31, 2015

EXPLANATORY NOTE

The primary objective of this bill is to improve government revenue collection by granting the Customs
‘Commissioner the authority to implement amnesty on taxes and sureties, a power currently exclusive
to the Commissioner of the Bureau of Internal Revenue (BIR). Under Section 1131 of the Customs
Modernization and Tariff Act (CMTA), the Customs Commissioner's authority to enter into a
compromise is restricted to administrative cases arising under the CMTA, specifically those involving
the imposition of fines and surcharges, and is subject to the approval of the Secretary of Finance.

Beyond the Bureau of Customs’ (the "Bureau”) role in trade facilitation, this proposal serves as a
strategic initiative to support the government's efforts to generate additional revenue for public services
without introducing new taxes. By encouraging voluntary disclosures and payments of previously
unliquidated or matured bonds, this measure will allow the Bureau to address a significant backlog of
pending records and convert them into government funds.

‘The Bureau allows various types of securities, one of which is surety bonds, generally required from
importers to secure the payment of customs duties, charges, or fees. These bonds enable the Bureau to
conditionally release importations pending full compliance. However, there is currently no existing law
that incentivizes importers to voluntarily disclose their matured or unliquidated surety bonds.

By offering a one-time opportunity for taxpayers, stakeholders, and surety companies to settle their
deficiencies through a streamlined collection process, this measure aims to resolve dormant receivable
accounts, enhance the Bureau's database, and minimize administrative expenses associated with tax
case proceedings. Additionally, it is expected to ease case backlogs within the Bureau and the courts,
thereby accelerating the collection of outstanding duties and taxes.

‘The proposed amnesty will cover duties and taxes that accrued from the start of this policy's
implementation by the Bureau until 31 December 2015. Obligations incurred from 01 January 2016,
‘onward are excluded, as they remain subject to audit under the CMTA.

Nonetheless, this measure shall not apply to the following cases:


1. Cases involving criminal charges filed on or before 31 December 1997, either in court or with
the Prosecutor's Office by the Bureau or any other government agency; and

2. Customs duties and tax liabilities that are the subject of pending criminal actions filed before
31 December 1997, whether in court or with the Prosecutor's Office by the Bureau or any other
government agency.

By combining improved revenue collection strategies with administrative efficiency, this bill aims to
enhance the Bureau's capacity to fulfill its mandate while supporting the governments broader fiscal
objectives.

In view of the foregoing, immediate approval of this bill is requested.

Loyf District, Quirino


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Mania

‘TWENTIETH CONGRESS
First Regular Session

House Bit No._329

Introduced by Representative Midy N. Cua
Lone District, Quirino

AN ACT GRANTING AMNESTY TO STAKEHOLDERS WITH UNLIQUIDATED AND/OR
UNSETTLED SURETY BOND OBLIGATIONS WITH THE BUREAU OF CUSTOMS FOR
BONDS ISSUED ON OR BEFORE DECEMBER 31, 2015

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

TITLE!
PRELIMINARY PROVISIONS

Section 1. Short Title. - This Act shall be known as “The Customs Amnesty Act of 2025”.

Section 2. Declaration of Policy. — It is hereby declared the policy of the State to strengthen government
revenue collection to ensure the availability of resources for programs that promote the general welfare
and safeguard the interests of its citizens. In pursuit of this objective, the State shall:

a) Provide a one-time opportunity for taxpayers, stakeholders, and surety companies to
Voluntarily settle their outstanding obligations through an efficient and simplified collection
process;

) Facilitate the collection of dormant receivable accounts, improve the Bureau of Customs
("Bureau") database, and reduce administrative costs arising from duty and tax case
proceedings; and

©) Alleviate case backlogs within the Bureau and the courts, thereby expediting the recovery of
outstanding duties and taxes.

Section 3. Definition of Terms. ~ As used in this Act:

a) Surety Bonds refer to bonds issued by an accredited surety company holding an Authority to
‘Transact Business as Surety Company granted by the Bureau.

)_ Unliquidated bonds refer to surety bonds that remain unpaid, unresolved, or unsettled.

c) Matured bonds refer to surety bonds that have reached their designated maturity date, and are
now due for settlement.

4) Customs Bond/Surety Amnesty Application ("Application")

) Customs Clearance refer to the document that serves as proof of the completion of customs
formalities, issued upon the settlement of applicable duties, fees, and other charges.


TITLE i
CUSTOMS AMNESTY

Section 4. Coverage. - Amnesty from civil and criminal prosecution is hereby granted to those
taxpayers, stakeholders, and surety companies, except those with cases mentioned in Section 9 hereof,
‘who will apply for amnesty on his/its previously unliquidated and/or matured bonds to secure payment
of customs duties and other charges of fees, including increments or penalties in relation thereto.

Section 5. Entitlement to Customs Amnesty. — The amnesty provided for in Section 4 of this Act shall
apply exclusively to surety bonds issued on or before December 31, 2015. Provided, that the applicant,
whether individual or corporation, shall file a Customs Bond/ Surety Amnesty Application with the
Office of the District Collector concerned, within the prescribed period, and in the manner prescribed
under Section 7 of this Act. Provided further, that the taxpayer or surety company shall pay:

a) 50% of the principal duties and taxes for bonds matured as of December 31, 2000;
b) 55% of the principal duties and taxes for bonds matured as of January 01, 2001
¢) 60% of the principal duties and taxes for bonds matured as of January 01, 2004;
d) 65% of the principal duties and taxes for bonds matured as of January 01, 2007; or
€) 70% of the principal duties and taxes for bonds matured as of January 01, 2010.

Section 6. Waiver of Penalties and Surcharges. ~ Penalties and surcharges shall be considered waived
in the following cases:

a) For those who avail ofthis customs amnesty; and

b) For those who have already paid the duties and taxes for the bonds covered by the above
amnesty period, but remain uncancelled because of the non-payment of penalties and
surcharges.

Section 7. Availment of Customs Amnesty; Time, Manner and Place of Filing. - The Customs Bond/
Surety Amnesty Application shall be filed using the prescribed form with the Office of the District
Collector concemed, subject to the approval of the Commissioner of Customs, within one (1) year from
the issuance of the implementing rules and regulations of this Act. The said Application must show the
details of the unliquidated and/or matured bonds.

Section 8. Payment of Taxes and Duties. ~The taxes and duties due as disclosed by the applicant in his
‘Amnesty Application must be paid within thirty (30) days upon the approval of the Commissioner of
Customs.

Section 9. Exceptions. — The amnesty provided for in Section 4 of this Act shall not apply in the
following instances:

a) Criminal cases already filed in Court or with the Prosecutor’s Office on or before December
31, 1997 by the Bureau or any other government agency; and

b) Customs duties and taxes involving civil liability which are the subject of a pending criminal
action with the Prosecutor's Office or the Court prior to December 31, 1997 filed by the Bureau
or any government agency.

Section 10. Customs Clearance. — Importers or surety companies availing of this amnesty shall be
issued plenary Customs Clearance after payment of customs duties, fees, and other charges, in
accordance with the provisions of Sections 5 and 8 of this Act. They shall accordingly be accredited as
‘importers or surety companies, as the case may be, without prejudice to the liabilities arising by reason


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of, or in connection with the transaction not covered by this Act. Future importations shall not be
released without the Customs Clearance.

Section 11. Prohibition. — Except for revenue purposes, it shall be unlawful for any officer or employee
‘of the Bureau or any government entity having knowledge of such amnesty applications to disclose to
‘any person information relative to such declaration. No information contained in such application shall
be published except in the form of tabulations and summaries and without specific reference to the
individual filing the amnesty application.

TITLE
FINAL PROVISIONS,

Section 12. Reporting Requirement. ~The Commissioner of Customs shall submit his monthly report
to the Secretary of Finance on the implementation of this Act starting the first week of its
implementation.

Section 13. Appropriation. — The revenues collected under this Act shall be used for the following:

‘a) Sixty percent (60%) for the Bureau's computerization project that will implement the thrust
towards trade facilitation; and
b) Forty percent (40%) to be part of the National Export and Competitiveness Fund to be
‘administered by the Export Development Council. This will help in the post-COVID recovery
programs and projects for exporters.
Section 14. Implementing Rules and Regulations. — The Bureau shall promulgate the necessary rules
and regulations for the effective implementation of the provisions of this Act, subject to the approval of
the Secretary of Finance.

Section 15. Penalty. — This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.

Section 8. Separability Clause. — If any provision of this Act is held unconstitutional or invalid, all
other provisions not affected thereby shall remain valid.

Section 9. Effectivity. — ‘This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.

Approved,