Republic of the Philippines
HOUSE OF REPRESENTATIVES,

‘Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. /297

Introduced by Representatives
HORACIO P. SUANSING, JR. and ESTRELLITA B, SUANSING

AN ACT
AMENDING REPUBLIC ACT NO. 10863 OTHERWISE KNOWN AS THE.
"CUSTOMS MODERNIZATION AND TARIFF ACT"

EXPLANATORY NOTE

This bill secks to amend Republic Act No. 10863, otherwise known as the "Customs
Modernization Tariff Act" by proposing to include a new provision that would allow the
Bureau of Customs (BoC) to utilize part of its annual income for its modernization program.

The passage of RA 10863 updated the Tariff and Customs Code of the Philippines
to pave the way for reforms and the modernization of the Bureau of Customs. Said law
directs the BoC to be more responsive to and focused on present demands of trade and
commerce.

However, the achievement of the noble intent of the law would not be possible if
the Bureau would be continuously stymied by obsolete or lack of equipment and modern
information and technology systems such as automated processes and updated risk
management systems.

In order for the BoC to be given more leeway to pursue seamless, efficient, and
transparent trading procedures, it is respectfully submitted that it should be allowed to use
one percent (1%) of its annual income. In this manner, said agency would hopefully be able
to move faster in modernizing its administrative orientation and procedures.

In view of the foregoing, the immediate approval of the bill is earnestly sought.

HORACY$ P. SUANSING, JR. RELLITA B. SUA!
ict of Sultan Kudarat 1* District of Nueva Egija


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 7297

Introduced by Representatives
HORACIO P. SUANSING, JR. and ESTRELLITA B. SUANSING

AN ACT
AMENDING REPUBLIC ACT NO. 10863 OTHERWISE KNOWN AS THE
"CUSTOMS MODERNIZATION AND TARIFF ACT"

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

SECTION 1. Republic Act No. 10863 is hereby amended by inserting a new section after
Section 205 which shall become the new Section 206 and shall read as follows:

"SEC. 206. USE OF INCOME - THE BUREAU OF CUSTOMS IS
AUTHORIZED TO USE ONE PERCENT (1%) OF ITS ANNUAL
INCOME DERIVED FROM ITS COLLECTION OF CUSTOMS
DUTIES AND TAXES TO ENABLE IT TO PURSUE THE
VARIOUS COMPONENTS OF ITS MODERNIZATION PROGRAM
SUCH AS, BUT NOT LIMITED TO:

A. ACQUISITION, UPGRADING AND MODERNIZATION OF
EQUIPMENT AND INFORMATION AND TECHNOLOGY
EQUIPMENT AND SYSTEMS; AND

B. CONSTRUCTION, REPAIR AND REHABILITATION OF
STRUCTURES AND FACILITIES.

PROVIDED, THAT NO AMOUNT OF SAID INCOME SHALL BE
USED TO FUND PERSONAL SERVICES EXPENDITURES.

PROVIDED, FURTHER, THAT EXPENDITURES FOR THE
IMPLEMENTATION OF SAID PROGRAMS SHOULD UNDERGO
GOVERNMENT PROCUREMENT PROCEDURES PURSUANT TO.
REPUBLIC ACT NO. 9184."


SECTION 2. The succeeding sections of the same Act are hereby amended and
renumbered accordingly.

SECTION 3. Implementing Rules. — Within one hundred twenty (120) days after the
effectivity of this Act, the Commissioner of the Bureau of Customs shall promulgate the
implementing rules and regulations necessary for the effective implementation of this Act.

SECTION 4. Repealing Clause — All laws, executive orders and regulations inconsistent
with or contrary to this Act are hereby considered repealed and/or amended accordingly.

SECTION 5. Separability Clause — If any section or provision of this Act is declared
unconstitutional or invalid, the other sections or provisions not affected hereby shall remain in
full force and effect.

SECTION 6. Effectivity — This Act shall take effect fifteen (15) days after publication in
the Official Gazette or in two (2) newspapers of general circulation.

Approved,