FOURTEENTH CONGRESS OF THE 
First Regular Session 
REPUBLIC OF THE PHILIPPINES 
S E N A T E  
Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
This piece of legislation principally seeks to address the perennial 
problem of smuggling in the Bureau of Customs (BOC) by amending the 
pertinent provisions of the Tariff and Customs Code or Presidential Decree No. 
1464. Hence, the name: "Anti-smuggling Act of 2007." 
This bill proposes, among others, the creation of a new office, the Deputy 
Commissioner for Audit and Transparency, to ensure, as it obviously suggests, 
openness and accountability in the collection and anti-smuggling efforts of the 
BOC. It is given considerable powers to ascertain availability of all customs 
records pertaining to appraisal, valuation, assessment, classification and 
collection, and an unhampered audit and review of said records. Such powers 
include, among others, the authority to issue subpoenas and to hold those who 
defy such subpoenas in contempt. 
The Deputy Commissioner for Audit and Transparency is nonetheless 
required to coordinate and submit annual reports to the Commissioner of the 
BOC, the Commission on Audit (COA), the National Economic and 
Development Authority (NEDA), the Department of Finance (DOF), the Bangko 
Sentral ng Pilipinas (BSP), Board of Investments (BOI) and the Department of 
Budget and Management (DBM). 
It also prescribes a new set of stringent requirements for surety companies 
md bonded warehouses doing business in the BOC. Surety companies are given 
the threshold amount of 30% of the total due and demandable bonds as the 
minimum liability in the BOC with which it can no longer issue bonds in favor of 
the BOC and be subjected to cancellation of its permit or license. 
In the case of bonded warehouses entities and locators, which include 
even those operating under the charter of the Philippine Economic Zone 
Authority (PEZA), the Subic Bay Metropolitan Authority (SBMA), and other 
freeports and ecozones, their paid-up capital and net assets are to be made 
equivalent to the value of goods of unliquidated entries stored in their respective 
warehouses. 
Customs officials tasked to examine and appraised the value of goods is 
to be mandated to certify such under oath. Moreover, a valuation library, 


updated at all times, is to be used as reference and basis for examination and 
appraisal. 
To put further emphasis on valuation, a Valuation and Classification 
Review Committee is established as a statutory body in which the private sector 
may sit as a member. All valuation and classification issues are to pass through 
this Committee for review to ensure its genuineness and integrity. 
Lastly, smuggling is made a graver offense in this proposed legislation by 
applying graduated penalties depending on the form of smuggling committed 
and the value of the goods concerned. It provides as maximum the penalty of life 
imprisonment for smuggling if the value of the goods unlawfully imported 
exceeds Php1,000,000.00. 
In the light of the foregoing, and if only to establish an effective system of 
addressing smuggling and corruption in the BOC, immediate passage of this bill 
is sincerely sought. 
n 
FRANCIS G. ESCUDERO 
2 


"-.~ 
FOURTEENTH CONGRESS OF THE 
1 
First Regular Session 
1 
REPUBLIC OF THE PHILIPPINES 
1 
{ 
55.2 -4 
1':j :I>[< 
S E N A T E  
/ 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL DECREE NO. 1464, 
OTHERWISE KNOWN AS THE TARIFF AND CUSTOMS CODE OF THE 
PHILIPPINES, AS AMENDED, AND FOR OTHER PURPOSES. 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled. 
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SECTION 1. Short Title. - This Act shall be known and cited as the "Anti- 
2 
Smuggling Act of 2007.' 
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SEC. 2. Section 201, Title E, Part 1 of the Tariff and Customs Code of the 
Philippines, as amended, is hereby further amended by inserting after the third and 
second to the last paragraphs thereof the following provisions to read as follows: 
"SEC. 201. Basis of Dutiable Value. - 
x x x. 
I, 
"If in the course of determining the dutiable value of the imported 
goods, it becomes necessary to delay the final determination of such 
dutiable value, the importer shall nevertheless be able to secure the 
release of the imported goods upon filing of a sufficient guarantee in 
the form of a LETTER OF CREDIT, surety bond, a deposit, cash, or 
some other appropriate instrument in an amount equivalent to the 
imposable duties and taxes [on] FOR w" the imported goods [in 
question] may be liable: 
Prwided, however, That goods, the 
importation of which is prohibited by law shall not be released under 
any circumstances whatsoever: 
PROVIDED, FURTHER, THAT 


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SURETY BONDS FROM A SURETY COMPANY W C H  HAS AN 
OUTSTANDING LIABILITY OF THIRTY PERCENT (30%) OR MORE 
OF THE TOTAL DUE AND DEMANDABLE BONDS ISSUED IN 
FAVOR OF THE BUREAU OF CUSTOMS, AT ANY TIME, SHALL 
NOT BE ACCEFTABLE AS GUARANTEE FOR THE RELEASE OF 
THE IMPORTED GOODS 
PROVIDED, FURTHERMORE, THAT 
THE PERMIT OR LICENSE OF THE SURETY COMPANY WHICH 
HAS AN OUTSTANDLNG LIABILITY OF THIRTY PERCENT (30%) 
OR MORE OF THE TOTAL DUE AND DEMANDABLE BONDS, AT 
ANY TIME, WITH THE BUREAU OF CUSTOMS, TO ISSUE SURETY 
BOND FOR CUSTOMS PURPOSES, SHALL BE CANCELED 
PROVIDED, FINALLY, THAT ANY SURETY COMPANY SHALL BE 
ELIGIBLE TO ISSUE CUSTOMS SURETY BOND ONLY AFTER 
DETERMINATION OF GOOD STANDING BY THE INSURANCE 
COMMISSION. 
THE BOC SHALL ACCEPT GUARANTEES IN THE FORM OF 
SURETY BONDS EXCLUSIVELY ISSUED BY SURETY COMPANIES, 
INCLUDING GSIS, WHO ARE MEMBERS OF A BOC APPROVED 
CONSORTIUM. 
"Nothing in this Section x x x. 
"REFERENCE INFORMATION OBTAINED FROM A VALUE 
DATA BASE APPROVED BY THE COMMISSIONER, INCLUDING 
REVISION 
ORDERS, 
SHALL 
BE 
USED 
TO 
TEST 
THE 
TRUTHFULNESS AND ACCURACY OF A GIVEN VALUE 
DECLARATION. A VALUE DECLARATION WHICH FALLS 
OUTSIDE OF THE VALUE RANGE OF REVISION ORDERS SHALL 
TRIGGER A VALUATION QUERY ON THE APPLICABILITY OF 
THE METHOD OF VALUATION USED BY THE IMPORTER, IN 


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WHICH CASE THE VALUATION ISSUE SHALL BE DECIDED BY 
THE VALUATION AND CLASSIFICATION REVIEW COMMIlTEE 
(VCRC) ON THE APPROPRIATE METHOD OF VALUATION 
PRESCRIBED UNDER THIS SECTION. FOR PURPOSES OF THIS 
SECTION, A REVISION ORDER SHALL REFER TO THE 
DOCUMENT WHICH INDICATES THE LATEST VALUES OF A 
PRODUCT(S), WHICH SHALL BE APPLICABLE AND EFFECTIVE 
WITHIN THE PERIOD OF NINETY (90) DAYS FROM DATE OF ITS 
ISSUANCE 
BY 
THE 
BUREAU 
OF 
CUSTOMS, 
AFTER 
CONSULTATION WITH INDUSTRY REPRESENTATIVES. 
"THE VCRC SHALL REVIEW AND DECIDE ON THE 
APPLICABILITY OF THE METHOD OF VALUATION USED OR 
DECLARED BY THE IMPORTER IN THE IMPORT ENTRY. 
"If, after receiving further information x x x." 
SEC. 3. Section 601 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 601. Chief Officials ofthe Bureau of Customs. - The Bureau of 
Customs shall have one chief and FIVE [four] assistant chiefs, to be 
known respectively as the Commissioner of Customs (hereinafter 
known as the Commissioner) and FIVE (5) Deputy Commissioners of 
Customs, each one to head (a) Customs Revenue and Collection 
Monitoring Group; (b) Customs Assessment and Operations 
Coordinating Group; (c) IntelIigence and Enforcement Group; (d) 
Internal 
Administration 
Group; 
AND 
(D) 
AUDIT 
AND 
TRANSPARENCY GROUP, who shall each receive an annual 
compensation in accordance with the rates prescribed by existing law. 
The Commissioner AND DEPUTY COMMISSIONER FOR AUDIT 
AND TRANSPARENCY SHALL BE DIRECTLY APPOINTED BY 


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THE PRESIDENT. THE OTHER DEPUTY COMMISSIONERS SHALL 
BE APPOINTED BY THE PRESIDENT OF THE PHILIPPINES BASED 
ON THE RECOMMENDATION OF THE COMMISSIONER. 
"In case of temporary and permanent vacancy, one of the 
Deputy Commissioners shall be designated by the Secretary of 
Finance to act as a Commissioner of Customs, until the incumbent 
Commissioner reassumes his duties or the position is filled by 
permanent appointment." 
SEC. 4. Section 607 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 607. Annual Report of Commissioner. - The annual report of 
the Commissioner to the President shall, among other things, contain 
a compilation of the (a) quantity and value of the articles imported 
into the Philippines and the corresponding amount of customs duties, 
taxes and other charges assessed and collected on imported articles 
itemized in accordance with the tariff headings and subheadings as 
appearing in the liquidated customs entries provided for in this Code, 
(b) percentage collection of the peso value of imports, (c) quantity and 
value of conditionally-free importations, (d) customs valuation over 
and above letters of credit opened, (e) quantity and value of tax-free 
imports, and (f) the quantity and value of articIes exported from the 
Philippines as well as the taxes and other charges assessed and 
collected on them for the preceding year. THE DEPUTY 
COMMISSIONER FOR AUDIT AND TRANSPARENCY SHALL 
REGULARLY FURNISH [Clcopies of such annual report [shall be 
furnished regularly] to the Department of Finance, Tariff Commission, 
NEDA, Central Bank of the Philippines, Board of Investments, 


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Department of Budget, and other economic agencies of the 
government, on or before December 30, of each year. 
“For more scientific preparation of the annual report, the 
Commissioner shall cause the computerization of the data contained 
in the liquidated entries filed with the Bureau of Customs.” 
SEC. 5. Section 609 of the TCCP, as amended, is hereby further amended to 
read as follows: 
“SEC. 609. Commissioner to Furnish Copies of Collectors’ Liquidufed 
Duplicates. - The Commissioner shall regularly furnish the 
NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY 
(NEDA), the BANGKO SENTRAL NG PILIPINAS [Central Bank of 
the Philippines] (BSP), the Tariff Commission, AND THE NATIONAL 
STATISTICS OFFICE (NSO), BOTH ELECTRONIC AND PAPER 
COPIES of each of all customs import/export entries as filed with the 
Bureau of Customs. The Tariff Commission or its duly authorized 
agents shall have access to and the right to copy all the customs 
liquidated import entries and other documents appended thereto as 
finally filed in the Commission on Audit. COPIES OF THE 
FOREGOING DOCUMENTS SHALL BE MADE ACCESSIBLE AND 
AVAILABLE TO THE DEPUTY COMMISSIONER FOR AUDIT AND 
TRANSPARENCY AT ALL TIMES.” 
SEC.6. Section 701 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
”SEC. 701.ColZecfion Districts and Pmts of Entry Thereof. - For 
administrative purposes, the Philippines shaU be divided into as 
many collection districts as necessary, the respective limits of which 
may be changed from time to time by the Commissioner of Customs 
upon approval of the Secretary of Finance. The principal ports of entry 


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for the respective collection districts shall be Manila, Ninoy Aquino 
International Airport, Cebu, Iloilo, Davao, Tacloban, Zamboanga, 
Cagayan de Oro, Surigao, Legaspi, Batangas, San Fernando, Subic and 
Manila International Container Port: 
PROVIDED, THAT THE 
IMPORTATION OF ARTICLES THAT DO NOT PASS THROUGH 
THE PORTS OF ENTRY SHALL BE CONSIDERED AS UNLAWFUL 
IMPORTATION PUNISHABLE UNDER SECTION 3601 OF THIS 
CODE. 
SEC. 7. Section 709 of the TCCP, as amended, is hereby further amended to 
read as follows: 
"SEC. 709. Authority ofthe Collector to Remit Duties. - A Collector 
shaU have discretionary authority to remit the assessment and collection 
of customs duties, taxes and other charges when the aggregate amount 
of such duties, taxes, and other charges is less than FIVE THOUSAND 
PESOS (P5,000.00), and he may dispense with the seizure of articles of 
less than FIVE THOUSAND PESOS (P5,OOO.OO) in value except in cases 
of prohibited importations or the habitual or the intentional violation of 
the tariff and customs laws." 
SEC. 8. A new Part 3 shall be inserted starting with Section 713, after Section 
712 of the Tariff and Customs Code of the Philippines, as amended, which shall read 
as follows: 
"PART 3. - AUDIT, TRANSPARENCY AND ACCOUNTABILITY 
"SEC. 713. THE DEPUTY COMMISSIONER FOR AUDIT AND 
TRANSPARENCY SHALL CONDUCT, IN COORDINATION WITH 
THE COMMISSION ON AUDIT, A BUREAU-WIDE AUDIT ON THE 
OPERATIONAL PROCESSES, COLLECTION AND FINANCIAL 
REPORTING, 
FISCAL AND 
PERSONNEL 
PERFORMANCE, 
SYSTEM EFFICIENCY, INTERNAL CONTROL, INFORMATION 


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AND COMMUNICATION FLOW, FRAUDULENT AND ILLEGAL 
PRACTICES, AND SUCH OTHER AREAS AS MAY BE NECESSARY 
FOR THE EFFECTIVE OPERATION OF THE BUREAU AND ITS 
ATTACHED AGENCIES. 
"SEC. 714. THE APPROPRIATIONS FOR THE BUREAU OF 
CUSTOMS SHALL PROVIDE AN ITEM OF EXPENSE FOR AUDIT 
AS CONTEMPLATED UNDER THIS ACT, INCLUDING A 
PROVISION FOR AN INDEPENDENT AUDIT OF THE BUREAU BY 
A QUALIFIED PRIVATE COMPANY OR INSTITUTION, WHICH 
SHALL BE CONDUCTED ANNUALLY, OR IN SUCH FREQUENCY 
AS MAY BE DETERMINED BY THE DEPUTY COMMISSIONER FOR 
AUDIT AND TRANSPARENCY UPON APPROVAL OF THE 
COMMISSIONER 
"SEC. 715. ON THE BASIS OF THE AUDIT CONDUCTED 
PURSUANT TO THE PRECEDING SECTIONS, THE DEPUTY 
COMMISSIONER FOR AUDIT AND TRANSPARENCY SHALL 
HAVE THE AUTHORITY TO FORMULATE AND RECOMMEND 
POLICIES TO THE 
COMMISSIONER TO ADDRESS 
THE 
IDENTIFIED PROBLEMS AND DEFICIENCIES. UNLESS THERE IS 
REASONABLE DOUBT ON THE VALIDITY OF THE SAID AUDIT, 
THE RECOMMENDATIONS SHALL HAVE PERSUASIVE WEIGHT 
AND 
SHALL 
BE 
PROMPTLY 
ACTED 
UPON 
BY 
THE 
COMMISSIONER. 
"THE DEPUTY COMMISSIONER SHALL LIKEWISE HAVE 
THE AUTHORITY TO CONDUCT INVESTIGATIONS FOR THE 
PURPOSE OF INITIATING PROSECUTION OF FRAUD AND 
OTHER GRAFT AND CORRUPT PRACTICES IN THE BUREAU, 
AND SHALL RECOMMEND TO THE OMBUDSMAN THE FILING 


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OF APPROPRIATE CRIMINAL CASES AGAINST THE ERRING 
PERSONNEL, AND TO THE COMMISSIONER THE IMPOSITION 
OF ADMINISTRATIVE SANCTIONS. 
“SEC. 716. IN THE CONDUCT OF ITS AUDIT AND 
INVESTIGATIONS, THE DEPUTY COMMISSIONER OR THE 
PRIVATE AUDITOR SHALL HAVE THE AUTHORITY TO REQUIRE 
THE PRODUCTION OF DOCUMENTS AND REQUIRE BUREAU 
PERSONNEL TO RESPOND TO ITS INQUIRIES. FOR THIS 
PURPOSE, IT MAY ISSUE SUBPOENA DUCES TECUM AND AD 
TESTIFICANDUM. ANY PERSON WHO SHALL REFUSE TO ABIDE 
BY THE SUBPOENA SO ISSUED MAY BE HELD LIABLE FOR 
CONTErn.” 
SEC. 9. A new section to be known as Section 1001-A is hereby inserted after 
Section 1001 of the Tariff and Customs Code of the Philippines, as amended, which 
shall read as follows: 
“SEC. 1001-A. TRANSMISSION OF ELECTRONIC COPY OF 
MANIFEST PRIOR TO ARRIVAL - AN ELECTRONIC COPY OF THE 
CARGO AND PASSENGER MANIFEST OF THE VESSEL ENGAGED 
IN FOREIGN TRADE SHALL BE TRANSMITTED TO THE BUREAU 
OF CUSTOMS AT LEAST TWELVE (12) HOURS FOR OCEAN 
GOING VESSELS AND TWO (2) HOURS FROM DEPARTURE FOR 
AIRLINES PRIOR TO THEIR ARRIVAL IN THE PORT OF ENTRY; 
PROVIDED, THAT IF THE VESSEL IS AN AIRCRAFT, THE 
MANIFEST SHALL BE ELECTRONICALLY TRANSMITTED TO THE 
BUREAU OF CUSTOMS AT LEAST ONE (1) HOUR PRIOR TO THE 
AIRCRAFT’S ARRIVAL IN THE PORT OF ENTRY.” 
SEC. 10. 
Section 1005 of the Tariff and Customs Code of the Philippines, 
as amended, is hereby further amended to read as follows: 


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“SEC. 1005. Manifest Required of Vesselfiom Foreign Port. - x x x. 
”All of the cargo intended x x x. 
“A TRUE AND COMPLETE! COPY OF THE CARGO MANIFEST 
AND BILL OF LADING SHALL BE SENT UPON ARRIVAL TO THE 
BUREAU 
OF 
CUSTOMS AND 
THE 
PHILIPPINE! 
PORTS 
AUTHORITY WITHIN FORTY-EIGHT (48) HOURS AFTER RECEIPT 
THEREOF BY THE MASTER OF THE VESSEL. 
“A cargo manifest shall in no case be changed or altered after entry 
of the vessel, except by means of an amendment by the master, 
consignee or agent thereof, under oath, and attached to the original 
manifest: 
Provided, however, That after the invoice and/or entry 
covering an importation have been received and recorded [in the 
office 
of 
the 
appraiser] 
EITHER 
MANUALLY 
OR 
ELECTRONICALLY IN TIlE BUREAU OF CUSTOMS OR HAD 
BEEN LOGGED IN ITS COMPUTER SYSTEM, no amendment of the 
manifest shall be allowed, except when it is obvious that a clerical 
error or any discrepancy has been committed in the preparation of the 
manifest, without any fraudulent intent, discovery of which would 
not have been made until after examination has been completed. 
PRIOR TO RELEASE OF THE CARGO, THE VERACITY OF THE 
AMENDMENT SHALL BE EXAMINED BY THE ‘COMMISSIONER 
OF CUSTOMS FOR THE PURPOSE OF INVOKING PENAL 
PROVISION UNDER SECTIONS 2503 AND 3602 OF THIS CODE.” 
SEC. 11. Section 1007 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
“SEC. 1007. Manifest for Commission on Audit and Collector. - Papers 
to be Deposited with Consul. - Immediately after the arrival of a vessel 
from a foreign port, the master shall deliver or mail to the Chairman, 


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Commission on Audit, Manila, a copy of the cargo manifest properly 
indorsed by the boarding officer, and UPON ARRIVAL, he shall 
present to the Collector the original copy of the cargo manifest and, 
for inspection, the ship’s register or other document in lieu thereof, 
together with the clearance and other papers granted to the vessel at 
the port of departure for the Philippines. 
”WITHIN THREE DAYS FROM RECEIPT OF THE CARGO 
MANIFEST FROM THE MASTER, THE COLLECTOR SHALL POST 
COPIES THEREOF AT A CUSTOMS BULLETIN BOARD FOR TWO 
CONSECUTIVE WEEKS.” 
SEC. 12. Section 1007 of the TCCP, as amended, is hereby further amended 
to read as follows: 
“SEC. 1007. Manifests for Commission on Audit and Collector. - 
Papers to be Deposited with Consul. - Immediately after the arrival of a 
vessel from a foreign port, the master shall deliver or mail to the 
Chairman, Commission on Audit, Manila, and the DEPUTY 
COMMISSIONER FOR AUDIT AND TRANSPARENCY, a copy of the 
cargo manifests properly endorsed by the boarding officer, and the 
master shall immediately present to the Collector the original copy of 
the cargo manifests properly endorsed by the boarding officer, and, 
for inspection, the ship’s register or other documents in lieu thereof, 
together with the clearance and other papers granted to the vessel at 
the port of departure for the Philippines. 
SEC. 13. Section 1008 of the TarB and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
”SEC. 1008. 
Transit Cargo AND FOREIGN TRANSHIPMENT 
OF GOODS. - When transit cargo x x x. 


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"WITHIN FIVE DAYS FROM THE ACTUAL DISCHARGE OF A 
VESSEL, BUT IN ANY CASE NOT LATER THAN FIFTEEN (15) 
DAYS FROM THE DATE OF THE VESSEL'S DEPARTURE FROM 
THE PHILIPPINES, THE PARTY WHO APPLIED FOR FOREIGN 
TRANSSHIPMENT SUCH AS THE SHIPPING COMPANY OR 
AGENT, TRANSSHIPMENT OPERATOR OR THE OWNER OF THE 
GOODS SHALL SUBMIT TO THE BUREAU OF CUSTOMS AND/OR 
TO THE BUREAU OF INTERNAL REVENUE, A CERTIFICATE OF 
DISCHARGE FROM THE FOREIGN PORT OF DISCHARGE OR 
DESTINATION. 
THE CERTIFICATE OF DISCHARGE SHALL 
CERTIFY THAT THE GOODS TRANSSHIPPED FROM THE 
PHILIPPINES 
WERE 
DISCHARGED 
AT 
THE 
PORT 
OF 
DESTINATION AND RECEIVED BY THE CONSIGNEE NAMED IN 
THE MANIFEST. THE CERTIFICATE OF DISCHARGE SHALL BE 
ISSUED BY THE CUSTOMS OR PORT OFFICIALS AT THE 
FOREIGN PORT OF DESTINATION PROVIDED, THAT IF THE 
SAID CERTIFICATE IS IN A FOREIGN LANGUAGE OTHER THAN 
ENGLISH, IT SHALL BE ACCOMPANIED BY AN ENGLISH 
TRANSLATION DULY AUTHENTICATED BY A PHILPPINI? 
COMMERCIAL ATTACHE OR CONSUL. THE CERTIFICATE OF 
DISCHARGE TO BE SUBMITTED TO THE BUREAU OF CUSTOMS 
AND/OR 
BUREAU OF INTERNAL REVENUE SHALL BE 
ACCOMPANIED BY A COPY OF THE INWARD FOREIGN 
MANIFEST SUBMITTED TO, RECEIVED BY, AND PROPERLY 
STAMPED BY THE CUSTOMS AUTHORITIES AT THE PORT OF 
DESTINATION. 
"FAILURE TO SUBMIT THE CERTIFICATE OF DISCHARGE 
AND THE INWARD FOREIGN MANIFEST AS REQUIRED 


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HEREINABOVE SHALL CONSTITUTE PHMA FACIE PROOF THAT 
THE GOODS ALLEGEDLY TRANSSHIPPED WERE IN FACT 
DIVERTED 
TO 
THE 
PHILIPPINES, 
WITHOUT 
THE 
CORRESPONDING PAYMENT OF DUTIES AND TAXES WHICH 
SHALL BE IMMEDIATELY COLLECTED AND PAID BY THE 
PARTY(1ES) WHICH FAILED TO SUBMIT THE CERTIFICATE OF 
DISCHARGE. 
THEREAFTER AND UNTIL THE REQUIRED 
CERTIFICATE OF DISCHARGE AND THE INWARD FOREIGN 
MANIFEST SHALL HAVE BEEN SUBMITTED, ALL SUBSEQUENT 
TRANSSHIPMENT OF GOODS TO AND FROM THE PHILIPPINES 
BY THE SAID PARTY(IES) WITHOUT THE PAYMENT OF DUTIES 
AND TAXES SHALL BE DISALLOWED. THE SUBMISSION OF THE 
CERTIFICATE OF DISCHARGE IS REQUIRED ONLY FOR 
TRANSSHIPPED GOODS SUBJECT TO EXCISE TAX OF MORE 
THAN TWENTY PERCENT (20%) IN ADDITION TO THE 
PAYMENT OF TAXES AND DUTIES IF SUCH GOODS ENTER THE 
DOMESTIC MARKET. " 
SEC. 14. Section 1025 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 1025. 
Export Product to Conform to Standard Grades AND 
EXPORT MARKING REQUIREMENTS. - A Collector shall not permit 
products for which standard grades OR "EXPORT ONLY" OR "FOR 
EXPORT" MARKING REQUIREMENTS have been established by the 
government THROUGH LAWS OR REGULATIONS to be laden 
aboard a vessel clearing for a foreign port, unless the shipment 
conforms to the requirements of law OR REGULATION relative to the 
shipment of such products: PROVIDED, HOWEVER, THAT EXPORT 
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OF PRODUCTS MARKED "NOT FOR EXPORT" SHALL BE 


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PROHIBITED, AND THAT LABELS OR MARKS INDICATING 
“PLACE OF SALE OF THE PRODUCT OR “NOT FOR EXPORT” 
MARKINGS SHALL NOT BE CHANCED, TAMPERED OR 
CONCEALED. 
“GOODS INTENDED FOR EXPORT WHICH DO NOT COMPLY 
WITH 
STANDARD 
GRADE, 
EXPORT 
MARKING 
REQUIREMENTS, OR WHOSE “NOT FOR EXPORT” OR “PLACE 
OF SALE LABELS HAVE BEEN CHANGED, TAMPERED OR 
CONCEALED SHALL BE DISPOSED OF IN ACCORDANCE WITH 
THIS CODE, EXCEPT THROUGH EXPORTATION.” 
SEC. 15. Section 1210 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
“SEC. 1210. Disposition of Impovfed Articles Remaining on Vessel 
After Time for Unlading. - Imported articles remaining on board any 
vessel after the expiration of the said period for discharge and not 
reported for transshipment to another port, may be unladen by 
customs authorities and stored at the vessel’s expense. 
“Unless prevented by causes beyond the vessel’s control, such 
as port congestion, strikes, riots, or civil commotions, failure of 
vessel’s gear, bad weather, and similar causes, articles so stored shall 
be entered within FIFTEEN (15) DAYS, which shall not be extendible, 
from the date of discharge of the last package from the vessel or 
aircraft and shall be claimed within fifteen (15) days, which shall 
likewise not be extendible from the date of posting of the notice to 
claim in conspicuous places in the Bureau of Customs. If not entered 
or not claimed, it shall be disposed of in accordance with the 
provisions of this Code.” 


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SEC. 16. A new section, to be known as Section 1212, is hereby inserted in 
the Tariff and Customs Code of the Philippines, as amended, to read as follows: 
"SEC. 1212. 
IMPORT PERMITflMPORT AUTHORITY FOR 
AGRICULTURAL PRODUCTS. - IMPORTED AGRICULTURAL 
PRODUCTS MUST BE COVERED BY A VALID IMPORT OR 
QUARANTINE PERMIT ISSUED BY THE DEPARTMENT OF 
AGRICULTURE OR ITS CONCERNED BUREAU PRIOR TO 
IMPORTATION INTO THE PHILIPPINES. NO AGRICULTURAL 
PRODUCTS MUST BE ACCEPTED FOR LOADING AND/OR 
TRANSPORT BY A VESSEL OR AIRCRAFT INTO THE COUNTRY IF 
THESE 
AGRICULTURAL 
PRODUCTS HAVE 
NOT 
BEEN 
AUTHORIZED THROUGH AN IMPORT PERMIT OR IMPORT 
AUTHORITY ISSUED BY THE DEPARTMENT OF AGRICULTURE 
PRIOR TO SHIPMENT. THE SAME AGRICULTURAL PRODUCTS 
MUST BE SHIPPED BACK TO THE COUNTRY OF ORIGIN BY THE 
IMPORTER/CONSIGNEE THROUGH THE SAME CARRIER THAT 
LOADED/TRANSPORTED, OR BROUGHT IN THE PRODUCTS: 
PROVIDED, THAT ANY IMPORTED AGRICULTURAL PRODUCT 
THAT WAS ISSUED AN IMPORT PERMIT OR 
IMF'ORT 
AUTHORITY AFTER ENTRY INTO THE PHILIPPINES, WHEN 
SUCH IMPORT PERMIT/AUTHORITY Is REQUIRED PRIOR TO 
IMPORTATION OF SUBJECT AGRICULTURAL PRODUCT, SHALL 
BE CONSIDERED AS SMUGGLED ARTICLE AND SHALL BE 
DISPOSED OF IN THE MANNER PROVIDED FOR IN SECTION 
2602 OF THIS CODE." 
SEC. 17. Section 1302 of the Tariff and Custom Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
28 
"SEC. 1302. 
Import Entries. - x x x. 


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"The Commissioner may, x x x. 
"A formal entry may be x x x: 
(a) x x x; 
"(b) x x x; or 
I, 
"(c) x x x. 
"FOR PURPOSES HERETO, ALL IMPORT ENTRIES SHALL 
EXPLICITLY AND CLEARLY INDICATE THE NAME OF THE 
CUSTOMS BONDED WAREHOUSE WHERE THE IMPORTED 
ARTICLES WILL BE FLACED OR DEPOSITED, AND THE NAME 
OF THE IMPORTER OR CONSIGNEE. 
"Import entries under irrevocable x x x. 
"All importations entered x x x." 
SEC. 18. A new section to be known as section 1401-A is hereby inserted 
after Section 1401 of the Tariff and Customs Code of the Philippines, as amended, 
which shall read as follows: 
"SEC. 
1401-A. 
VALUATION 
LIBRARY. 
- 
THE 
COMMISSIONER SHALL ENSURE THAT THERE SHALL BE A 
VALUATION LIBRARY, WHICH SHALL BE KEPT UP TO DATE 
AND 
MAINTAINED 
USING 
THE 
BEST 
AVAILABLE 
TECHNOLOGY. THE VALUATION LIBRARY SHALL BE MADE 
READILY AVAILABLE TO THE PUBLIC." 
SEC. 19. Section 1403 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 1403. Duties of Customs Officer Tasked to Examine, ClasszjiJ, 
and Appraise Imported Articles. - The customs officer tasked to examine, 
classify, and appraise imported articles shall determine whether the 
packages designated for examination and their contents are in 
accordance with the declaration in the entry, invoice, and other 


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pertinent documents and shall make a return in such a manner to 
indicate whether the articles have been truly and correctly declared in 
the entry as regard their quantity, measurement, weight, and tariff 
classification and not imported contrary to law. THE CUSTOMS 
OFFICER SHALL LIKEWISE CERTIFY UNDER OATH IN THE 
RETURN THAT HE USED THE VALUATION LIBRARY IN 
CLASSIFYING AND APPRAISING THE IMPORTED ARTICLES. He 
shall ALSO submit a sample to the laboratory for analysis when 
feasible to do so and when such analysis is necessary for the proper 
classification, appraisal, and/or admission into the Philippines of 
imported articles. 
"Likewise, the customs officer shall determine the unit of 
quantity in which they are usually bought and sold and appraise the 
imported articles in accordance with Section 201 of this Code. 
"Failure on the part of the customs officer to comply with his 
duties shall subject him to the penalties prescribed under 3604 of this 
Code." 
SEC. 20. Section 1409 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 1409. 
[Employment and Compensation of Persons to Assist 
in Appraisal 
or Class$cation 
of Articles.] VALUATION AND 
CLASSFICATION 
REVIEW 
COMMlTTEE 
(VCRC). - m e n  
necessary, the Collector may request two disinterested persons versed 
in the matter to assist the appraiser in appraising or ascertaining 
dutiable value of any article. Persons so employed shall be paid 
compensation in an amount to be determined by the Commissioner, 
not exceeding fifty pesos (P50.00) for each day of such service.] 
GE"E! VALUATION AND CLASSIFICATION ISSUES SHALL BE 


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COURSED THROUGH A VALUATION AND CLASSIFICATION 
REVIEW 
COMMITTEE 
(VCRC) 
DIRECTLY 
UNDER 
THE 
CHAIRMANSHIP OF THE RESPECTIVE DISTRICT COLLECTOR OF 
CUSTOMS. 
”AMONG THE MEMBERS OF THE VCRC, ONE SHALL COME 
FROM AMONG THE RECOMMENDEES OF THE DEPARTMENT 
OF TRADE AND INDUSTRY AND THE DEPARTMENT OF 
AGRICULTURE AND THE TARIFF COMMISSION, AS THE CASE 
MAY BE, AND ONE MEMBER SHALL COME FROM THE PRIVATE! 
SECTOR REPRESENTING THE INDUSTRY SECTOR AFFECTED.” 
SEC. 21. Section 1704(d) of the Tariff and Customs Code of the Philippines, 
as amended, is hereby further amended to read as follows: 
“SEC. 1704. 
Abatement or Refund of Duties on Articles Lost or 
Destroyed After Am‘val. - 
I, x x x: 
”d. While released under irrevocable domestic letter of credit, bank 
guarantee or bond for export except in case of loss by theft: 
PROVIDED, THAT NO ABATEMENT OR REFUND SHALL BE 
MADE WHEN THE THEFT OCCURS IN BONDED WAREHOUSES 
OUTSIDE OF THE CUSTOMS ZONE.” 
SEC. 22. Section 1801 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
”SEC. 1801. 
Abandonment, Kinds and Eficts of: - An imported 
article is deemed abandoned x x x: 
“a. When the owner, importer x x x; or 
“b. When the owner, importer, consignee or interested party after 
due notice, fails to file an entry x x x. ALL SHIPPING LINES, 
SHPPING 
COMPANIES, 
FREIGHT 
FORWARDERS, 


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CONSOLIDATORS, BREAK BULK AGENTS AND THEIR AGENTS 
AND SUB-AGENTS AND ARRASTRE CONTRACTORS ARE 
REQUIRED 
TO 
STATE 
IN 
BOLD, 
PROMINENT 
AND 
COMPREHENSBLE CHARACTERS THE PHRASE 'CUSTOMS LAW 
REQUIRES THE FILING OF ENTRY WITHIN THIRTY (30) DAYS 
FROM THE DATE OF DISCHARGE OF THE LAST PACKAGE FROM 
THE VESSEL, OTHERWISE, THE CARGO MAY BE DEEMED 
ABANDONED AND TO BE FORFEITED IN FAVOR OF THE 
GOVERNMENT AND SHALL BE DISPOSED OF IN ACCORDANCE 
WlTH THIS CODE' IN EACH AND EVERY NOTICE OF ARRIVAL 
TO THE OWNERS, IMPORTERS, CONSIGNEES OR OTHER 
INTERESTED PARTIES. THE SAME SHALL SERVE TO SATISFY 
THE 
DUE 
NOTICE 
REQUIREMENT 
REFERRED 
TO 
IN 
PARAGRAPH (B) HEREOF, IN WHICH CASE THE OWNER, 
IMPORTER OR CONSIGNEE OF THE! IMPORTATION SHALL 
HAVE A PERIOD OF THIRTY (30) DAYS, WHICH SHALL NOT BE 
EXTENDIBLE, FROM THE DATE OF DISCHARGE OF THE LAST 
PACKAGE FROM THE VESSEL WITHIN WHICH TO FILE THE 
APPROPRIATE ENTRY. 
FAILURE ON THE PART OF THE 
SHIPPING 
LINES, 
SHIPPING 
COMPANIES, 
FREIGHT 
FORWARDERS, CONSOLIDATORS, BREAK BULK AGENTS AND 
THEIR 
AGENTS 
AND 
SUB-AGENTS 
AND 
ARRASTRE 
CONTRACTORS TO COMPLY HEREWITH SHALL CONSTITUTE A 
GROUND FOR THE SUSPENSION OF THEIR LICENSES OR 
AUTHORITY TO ENGAGE IN THEIR RFSPECTIVE LINE OF 
ACTIVITIES IN THE IMPORTATION OPERATIONS. 
"Any person who abandons x x x." 


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SEC. 23. Section 1801 of the TCCP, as amended, is hereby further amended 
to read as follows: 
”SEC. 1801. Abandonment, Kinds and Effects 06 -An imported article 
is deemed abandoned under any of the following circumstances: 
a. When the owner, importer, consignee of the imported article 
expressly signifies in writing to the Collector of Customs his intention 
to abandon; 
b. When the owner, importer, consignee or interested party after 
due notice, fails to file an entry within thirty (30) days, which shall not 
be extendible, from the date of discharge of the last package from the 
vessel or aircraft, or having filed such entry, fails to claim his 
importation within fifteen (15) days, which shall not likewise be 
extendible, from the date of posting of the notice to claim such 
importation; OR WHEN THERE IS WRl‘ITEN DENIAL OF 
OWNERSHIP FROM THE PERSON INDICATED ON THE 
MANIFEST OR BILL OF LADING AS THE OWNER, IMPORTER, OR 
CONSIGNEE OF THE IMPORTED ARTICLE. 
“Any person who abandons an article or who fails to claim his 
importation as provided for in the preceding paragraph shall be 
deemed to have renounced all his interests and property rights 
therein.“ 
SEC. 24. Section 1802 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
“SEC. 1802. Abandonment of imported Articles. - An abandoned 
article shall ipso facto be deemed the property of the Government. 
ALL ABANDONED ARTICLES SHALL BE AUTOMATICALLY 
SUBJECT TO AUCTION AND SHALL IN NO CASE BE SUBJECT TO 
SETTLEMENT OR COMPROMISE. 


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"AN UPDATED LISTING OF ALL ABANDONED SHIPMENTS 
SCHEDULED FOR AUCTION SHALL BE POSTED ON THE 
OFFICIAL WEBSITE OF THE BUREAU OF CUSTOMS AND AT THE 
MAIN ENTRANCE OF CUSTOMS HOUSES. 
"Nothing in this section shall be construed as relieving the owner 
or importer from any criminal liability which may arise from any 
violation of law committed in connection with the importation of 
abandoned article. 
"Any official or employee of the Bureau of Customs or of other 
government agencies who, having knowledge of the existence of an 
abandoned article or having control or custody of such abandoned 
article, fails to report to the Collector within twenty-four (24) hours 
from the time the article is deemed abandoned shall be punished with 
the penalties prescribed in Paragraph 1, Section 3604 of this Code (RA 
7651, June 4,1993)." 
SEC. 25. Section 1901 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 1901. Establishment and Supervision of Warehouses. - When 
the business of the port requires such facilities, the Collector, subject 
to the approval of the Commissioner, shall designate and establish 
warehouses for use as public and private bonded warehouses, sheds 
or yards, or for other special purposes. ALL SUCH WAREHOUSES 
SHALL BE ACCREDITED BY AN ACCREDITATION COMMITTEE 
WHICH SHALL BE COMPOSED OF THE SECRETARY OF TRADE 
AND 
INDUSTRY, 
AS 
CHAIR 
THEREOF, 
AND 
ONE 
REPRESENTATIVE EACH FROM THE INDUSTRY ASSOCIATION 
OR INDUSTRY SECTOR AFFECTED AND THE INDUSTRY 


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ASSOCIATION SOUGHT TO BE SERVICED BY THE CUSTOMS 
BONDED WAREHOUSE. 
“All such warehouses and premises shall be subject to the 
supervision of the Collector, who shall impose such conditions as may 
be deemed necessary for the protection of the revenue and of the 
articles stored therein. 
THE CUSTOMS COLLECTOR SHALL 
CONDUCT SPOT CHECKS AND PERIODIC AUDITS TO ENSURE 
THAT APPLICABLE CUSTOMS LAWS AND REGULATIONS ARE 
COMPLIED WITH BY BONDED FACILITIES.” 
SEC. 26. Section 1901 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
“SEC. 1901. Establishment and Supewision of Warehouses. - When the 
business of the port requires such facilities, the Collector, subject to 
the approval of the Commissioner, shall designate and establish 
INDUSTRY-SPECIFIC warehouses for use as public and private 
bonded warehouses, sheds or yards, or for other special purposes. 
“All such warehouses and premises shall be subject to the 
supervision of the Collector, who shall impose such conditions as may 
be deemed necessary for the protection of the revenue and of the 
articles stored therein.” 
SEC. 27. Section 1902 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
“SEC. 1902. Responsibility of Operators. - The operators of bonded 
warehouses in case of loss of the imported articles stored shall be 
liable for the payment of duties and taxes due thereon. 
”The government assumes no legal responsibility in respect to the 
safekeeping of articles stored in any customs warehouses, sheds, 
yards or premises. 


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“THE OPERATORS OF THE BONDED WAREHOUSES SHALL, 
FOR LEGITIMATE PURPOSES, MAKE AVAILABLE TO THE 
PUBLIC AN INVENTORY OF ALL ARTICLES STORED THEREIN. 
FAILURE TO DO SO IS A MANDATORY GROUND FOR THE 
REVOCATION 
OF 
LICENSE TO OPERATE 
A 
BONDED 
WAREHOUSE.” 
SEC. 28. Section 1903 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
“SEC. 1903. Bonded Warehouses. - Application for the establishment 
of bonded warehouses must be made in writing and filed with the 
Collector, describing the premises, the location, and capacity of the 
same, the purpose for which the building i s  to be used, AND THE 
INDUSTRY TO WHICH IT BELONGS. THE APPLICATION SHALL 
LIKEWISE BE ACCOMPANIED BY VERIFIED COPIES OF 
DOCUMENTS INDICATING THE OWNERSHIP AND THE 
FINANCIAL CAPACITY OF THE BONDED WAREHOUSE. 
”Upon receipt of such application, the Collector shall cause an 
examination of the premises, with reference particularly to its location, 
construction and means provided for the safekeeping of articles. THE 
COLLECTOR SHALL LIKEWISE DETERMINE THE OWNERSHIP 
OF THE APPLICANT BONDED WAREHOUSE TO VERIFY 
OWNERS OF A BONDED WAREHOUSE WHICH HAD BEEN 
CLOSED DUE TO ITS NON-COMPLIANCE WITH CUSTOMS LAWS 
and REGULATIONS HAS ANY INTEREST THEREIN. if THE 
APPLICATION IS found satisfactory, pel THE COLLECTOR may 
authorize its establishment, and accept a bond for its operation and 
maintenance. The operator of such bonded warehouse shall pay an 
annual supervision fee in an amount to be fixed by the Commissioner. 


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The bonded warehouse officers and other employees thereof shall be 
regular customs employees who shall be appointed in accordance 
with the Civil Service Law, rules and regulations. 
”THE PAID-UP CAPITAL AND NET ASSETS OF THE BONDED 
WAREHOUSE SHALL BE SET AT AN AMOUNT DETERMINED BY 
THE COMMISSIONER AS SUFFICIENT TO COVER THE VALUE OF 
GOODS OF UNLIQUIDATED ENTRIES WHICH SHALL BE STORED 
THEREIN AT ANY GIVEN TIME. OTHERWISE, THE APPLICATION 
SHALL NOT BE GRANTED, AND AN AUTHORITY ALREADY 
GRANTED SHALL BE REVOKED. 
“THESE REQUIREMENTS SHALL LIKEWISE MTEND TO 
REGISTERED LOCATORS OPERATING UNDER THE CHARTERS 
OF THE PHILIPPINE ECONOMIC ZONE AUTHORITY, THE SUBIC 
BAY METROPOLITAN AUTHORITY, AND OTHER FREEPORE 
AND ECOZONES.” 
SEC. 29. A new section to be known as Section 1903-A is hereby inserted 
after Section 1903 of the TCCP, as amended, which shall read as follows: 
”SEC. 1903-A. REGULAR AUDIT OF BONDED WAREHOUSE. A 
REGULAR AUDIT OF ALL BONDED WAREHOUSES SHALL BE 
CONDUCTED BY THE COLLECTOR, WHICH AUDIT SHALL BE 
SUBJECT TO 
AUTOMATIC 
REVIEW 
BY 
THE 
DEPUTY 
COMMISSIONER FOR AUDIT AND TRANSPARENCY. UPON 
PETITION OF AN INTERESTED PARTY, A SECOND AUDIT MAY 
BE CONDUCTED BY THE DEPUTY COMMISSIONER OR AN 
INDEPENDENT AUDIT MAY BE MADE UPON THE INSTANCE OF 
THE PETITIONING PARTY IN COORDINATION WITH THE 
DEPUTY COMMISSIONER.” 
SEC. 30. Section 1904 of the Tariff and Customs Code of the Philippines, as 


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amended, is hereby amended to read as follows: 
“SEC. 1904. Irrevocable Domestic letter of Credit OY Bank Guarantee. 
[or Warehousing Bond] - After articles declared in the entry for 
warehousing shall have been examined and the duties, taxes and 
other charges shall have been determined, the Collector shall require 
from the importer an irrevocable domestic letter of credit OR bank 
guarantee [or bond] equivalent to the amount of such duties, taxes 
and other charges conditioned upon the withdrawal of articles within 
the period prescribed by Section nineteen hundred and eight of this 
Code and for payment of any duties, taxes and other charges to which 
the articles shall be then subject and upon compliance with all legal 
requirements regarding their importation.” 
SEC. 31. Section 1905 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
“SEC. 1905. Discontinuance of Warehouses. - The use of any 
warehouse may be discontinued by the Collector at any time when 
conditions so warrant, or in the case of a private warehouse, upon 
receipt of written request to that effect from the operator thereof of the 
premises, provided all the requirements of the law and regulations 
have been complied with by said operator. 
A LEGITIMATE 
INDUSTRY GROUP MAY LIKEWISE RECOMMEND TO THE 
COLLECTOR 
THE DISCONTINUANCE OF THE BONDED 
WAREHOUSE ON GROUNDS OF NON-COMPLIANCE WITH THE 
REQUIREMENTS OF LAW AND REGULATIONS. 
When the 
dutiable article is stored in such premises, the same must be removed 
at the risk and expense of the operator and the premises shall not be 
relinquished, nor discontinuance of its use authorized, until a careful 
examination of the account of the warehouse shall have been made. 


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Discontinuance of any warehouse shall be effective upon official 
notice and approval thereof by the Collector.” 
SEC. 32. Section 1906 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
“SEC. 1906. Entry of Articles for Warehousing. - The entry of 
articles for warehousing shall be in the required number of copies in 
the prescribed form, and shall be verified as in the entry of the articles 
for consumption. No warehousing entry shall be accepted for any 
article if from the entry, supporting documents and/or information 
such article is imported contrary to any law. THE CUSTOMS 
OFFICER MAKING THE ENTRY SHALL BE RESPONSIBLE FOR 
TRANSMI‘TTING A COPY OF THE SAME TO THE DEPUTY 
COMMISSIONER FOR AUDIT AND TRANSPARENCY.” 
SEC. 33. Section 1907 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
“SEC. 1907. 
Withdrawal of Articles from Bonded Warehouse. - 
Articles entered under irrevocable domestic letter of credit OR bank 
guarantee [or bond] may be withdrawn at any time for consumption, 
for transportation to another port, for exportation or for delivery on 
board a vessel or aircraft engaged in foreign trade for use on board 
such vessel or aircraft as sea stores or aircraft stores after liquidation 
of the entry. The withdrawal must be made by a person or firm duly 
authorized by the former, whose authority must appear in writing 
upon the face of the withdrawal entry.” 
“PROOF MUST BE SHOWN THAT THE ORDER TO IMPORT 
THE SUBJECT ‘ARTICLES HAS BEEN CANCELLED PROVIDED, 
FURTHER, THAT THE ARTICLES TO BE WITHDRAWN DO NOT 


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AMOUNT TO MORE THAN FIFTY PERCENT (50%) OF THE TOTAL 
INVENTORY OF THE BONDED WAREHOUSE. 
"The withdrawal must be made ONLY BY THE IMPORTER OF 
THE ARTICLES BEING WITHDRAWN OR BY A REPRESENTATIVE 
whose authority must appear in writing upon the face of the 
withdrawal entry." 
SEC. 34. Section 1908 of the TCCP, as amended, is hereby further amended 
I read as follows: 
"SEC. 1908. Limit to Period of Storage in Bonded Warehouse. - 
Articles duly entered for warehousing may remain in bonded 
warehouses for a maximum period of 
SIX (6) MONTHS, 
EXTENDIBLE FOR ANOTHER THREE (3) MONTHS from the time of 
RECElPT OF THE WAREHOUSE. Articles not withdrawn at the 
expiration of the prescribed period shall be DEEMED ABANDONED 
AND SUBJECT TO DISPOSITION IN ACCORDANCE WITH THE 
PROVISIONS OF THIS CODE. EMBROIDERY AND SHIPBUILDING 
INDUSTRIES MAY STORE THEIR IMPORTS IN THE CUSTOMS 
BONDED WAREHOUSE FOR A PERIOD OF TWENTY-FOUR (24) 
MONTHS." 
"A DAILY RECORD OF ALL ENTRIES LIQUIDATED SHALL BE 
POSTED IN A CONSPICUOUS PLACE IN THE MAIN ENTRANCE 
OF THE CUSTOMS HOUSE, STATING THE NAME OF THE VESSEL 
OR AIRCRAFT, THE PORT FROM WHICH SHE ARRIVED, THE 
DATE OF HER ARRIVAL, THE NAME OF THE IMPORTER, AND 
THE SERIAL NUMBER OF THE DATE OF ENTRY. THE 
COLLECTOR MUST ALSO KEEP A DAILY RECORD OF ALL 
ADDITIONAL DUTIES, TAXES AND OTHER CHARGES FOUND 


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THE INTERESTED PARTIES." 
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"SEC. 1910. 
ACTS DEEMED AS SMUGGLING PUNISHABLE 
UPON LIQUIDATION, AND SHALL PROMmZY SEND NOTICE TO 
SEC. 35. 
A new Section, to be known as Section 1910, is hereby inserted 
in Part 1, Title V, Book 11 of the Tariff and Customs Code of the Philippines, as 
amended, to read as follows: 
7 
UNDER SECTIONS 3601 AND 3602 OF THIS CODE. - THE 
8 
FOLLOWING SHALL BE DEEMED AS ACTS OF SMUGGLING 
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WHICH SHALL BE PUNISHABLE UNDER SECTIONS 3601 AND 
10 
3602 OF THIS CODE 
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"(A) BREAKING OF CUSTOMS SEALS OR UNAUTHORIZED 
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BY THE BONDED WAREHOUSE; 
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"1. FINISHED ARTICLES, EXCEPT IN THE TEXTILE AND 
REMOVAL OF ARTICLES FROM BONDED WAREHOUSES; 
"(B) SUBMISSION OF INCORRECT OR FALSE INPORMATION 
"(C) WAREHOUSING OF THE FOLLOWING SHIPMENTS: 
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GARMENTS INDUSTRIES. - FINISHED ARTICLES, AS USED IN 
I8 
THIS SECTION, SHALL REFER TO SCIENTIFICALLY OR 
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TECHNOLOGICALLY PROCESSED ARTICLES IN FINAL STATE 
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SUCH 
THAT 
NO 
OTHER 
PRODUCT 
CAN 
BE 
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MANUFACTURED THEREFROM UNLESS ITS PRINCIPAL 
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CHARACTER IS F M T  DESTROYED. 
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"2. ARTICLES NOT DECLARED IN THE IMPORT ENTRIES 
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OR IN EXCESS OF THE VOLUME AND QUANTITY ALLOWED 
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UNDER 
THE LICENSE 
OF THE CUSTOMS BONDED 
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WAREHOUSE. 
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"3. 
PROHIBITED ARTICLES AND REGULATED ARTICLES 
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WITHOUT THE CORRESPONDING CLEARANCE AND/OR 


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IMPORT AUTHORITY DULY ISSUED BY A COMPETENT 
AUTHORITY. 
"(D) 
UNAUTHORIZED TRANSFERS FROM THE CUSTOMS 
ZONE OF WAREHOUSING ARTICLES IMPORTED BY THE 
BONDED WAREHOUSE. 
"(E) UNAUTHORIZED WITHDRAWAL FROM A BONDED 
WAREHOUSE WITHOUT PAYMENT OF DUTIES AND TAXES. 
"(F) EXCEFT FOR THE GARMENTS AND THE SHPBUIDING 
INDUSTRIES, FAILURE TO LIQUIDATE IMPORTED ARTICLES 
WITHDRAWN FROM THE BONDED WAREHOUSE WIT.HIN SIX (6) 
MONTHS, EXTENDIBLE FOR ANOTHER THREE (3) MONTHS, 
FROM ISSUANCE BY THE BUREAU OF THE CERTIFICATE OF 
LOADING IN A VESSEL DESTINED TO A FOREIGN PORT." 
"(G) 
FAILURE TO PAY DUTIES AND TAXES ON THE 
REMAINING (NOT EXPORTED) IMPORTED MATERIALS WITHIN 
THIRTY (30) DAYS FROM LAPSE OF THE PERIOD FOR RE- 
EXPORTATION. 
"IMPORTATIONS MADE IN VIOLATION OF THE ABOVE 
PROVISIONS IN THIS SECTION SHALL IPSO FACTO BE 
FORFEITED IN FAVOR OF THE GOVERNMENT TO BE DISPOSED 
OF PURSUANT TO THE PROVISIONS OF THIS CODE." 
SEC. 36. A new Section, to be known as Section 1911, is hereby inserted in 
Part 1, Title V, Book I1 of the Tariff and Customs Code of the Philippines, as 
amended, to read as follows: 
"SEC. 1911. 
VERIFICATION OF 
RECORDS 
KEPT 
IN 
CUSTOMS BONDED WAREHOUSES. - A CAREFUL ACCOUNT 
SHALL BE KEIT BY 'THE COLLECTOR OF ALL ARTICLES 
28 
DELIVERED TO ANY BONDED WAREHOUSE, AND A SWORN 


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MONTHLY RETURN, DULY VERIFIED BY THE CUSTOMS 
2 
OFFICIAL IN CHARGE, SHALL BE MADE BY THE BONDED 
3 
WAREHOUSE CONTAINING A DETAKED STATEMENT OF ALL 
4 
IMPORTED ARTICLES STORED THEREIN. 
5 
”ALL DOCUMENTS, BOOKS AND RECORDS OF ACCOUNTS 
6 
CONCERNING 
THE 
OPERATION 
OF 
ANY 
BONDED 
I 
WAREHOUSE SHALL, UPON DEMAND OF THE SECRETARY OF 
8 
FINANCE, BE MADE AVAILABLE TO THE COLLECTOR OR HIS 
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REPRESENTATIVE OR THE INDUSTRY ASSOCIATION OR 
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INDUSTRY SECTOR AFFECTED AND SOUGHT TO BE SERVICED 
11 
BY 
THE 
BONDED 
WAREHOUSE, 
FOR 
PURPOSES 
OF 
12 
EXAMINATION AND/OR AUDIT.” 
13 
14 
read as follows: 
15 
“SEC. 2001. Establishment of Bonded Manufacturing Warehouses. - 
16 
All articles manufactured in whole or in part of imported materials, 
11 
and intended for exportation without being charged with duty, shall, 
18 
in order to be so manufactured and exported, be made and 
19 
manufactured in manufacturing warehouses under such rules and 
20 
regulations as the Commissioner of Customs with the approval of the 
21 
Secretary of Finance, shall prescribe: Provided, That fhe manufacturer 
22 
of such articles &all first file a satisfactory bond for the f a i W  
23 
observance of all laws, rules and regulations applicable thereto: 
24 
PROVIDED, FURTHER, THAT BONDED MANUFACTURING 
25 
WAREHOUSES SHALL LIKEWISE 
BE 
SUBJECT TO THE 
26 
PROVISIONS UNDER TITLE V, PART 1 OF THIS CODE, AS 
21 
AMENDED PROVIDED, FINALLY, THAT THESE REQUIREMENTS 
28 
SHALL EXTEND TO REGISTERED LOCATORS OPERATING 
SEC. 37. Section 2001 of the TCCP, as amended, is hereby further amended to 


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UNDER THE CHARTERS OF THE PHILIPPINE ECONOMIC ZONE 
AUTHORITY 
(PEZA), 
THE 
SUBIC 
BAY 
METROPOLITAN 
AUTHORITY 
(SBMA), 
AND 
OTHER 
FREEPORTS 
AND 
ECOZONES." 
SEC. 38. Section 2002 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 2002. Exemptionfrom Duty. - 
a. x x x  
b. Any imported material used in the manufacture of such articles, 
and any package, covering, brand and label used in putting up the 
same may, under the regulation prescribed by the Commissioner, 
with the approval of the Secretary of Finance, be conveyed without 
the payment of duty into any bonded manufacturing warehouse, and 
imported articles may, under the aforesaid regulations, be transferred 
without the payment of duty from any bonded warehouse into any 
bonded manufacturing warehouse, or to duly accredited sub- 
contractors of manufacturers who shall process the same into finished 
products for exports and deliver such finished products back to the 
bonded manufacturing warehouse, therefrom to be exported; but this 
privilege shall not be held to apply to implements, machinery or 
apparatus to be used in the construction or repair of any bonded 
manufacturing warehouse: Provided, however, That the materials 
transferred or conveyed into any bonded manufacturing warehouse 
shall be used in the manufacture of articles for exportation within a 
period of THIRTY (30) DAYS from date of such transfer or 
conveyance into the bonded manufacturing warehouse, which period 
may for sufficient reasons be further extended for not more than 
THIRTY (30) DAYS by the Commissioner. Materials not used in the 


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manufacture of articles for exportation within the prescribed period 
shall pay the corresponding duties: Provided, further, That the 
operation of embroidery and apparel firms shall continue to be 
governed by Republic Act Numbered Thirty-one hundred and thirty- 
seven." 
SEC. 39. Section 2003 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 2003. 
Procedure for Withdrawal. - Articles received into 
such bonded manufacturing warehouse x x x: Provided, further, That 
all waste materials may be [disposed] DESTROYED under 
government supervision. All labor performed and services rendered 
under these provisions shall be under the supervision of a proper 
customs official and at the expense of the manufacturer. 
"VIOLATION OF THE FOREGOING PROVISION SHALL BE 
DEEMED AS SMUGGLING WHICH SHALL BE PUNISHABLE 
UNDER SECTIONS 3601 AND 3602 OF THIS CODE. 
"THE ARTICLES SUBJECT OF THE VIOLATION SHALL Ipso 
FACTO BE FORFEITED IN FAVOR OF THE GOVERNMENT TO BE 
DISPOSED OF PURSUANT TO THE PROVISIONS OF THIS CODE." 
SEC. 40. Section 2317 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 2317. 
Government's Right of Compulsory Acquisition. - In 
order to protect the government revenues against the undervaluation 
of goods x x x. 
"ANY INDUSTRY ASSOCIATION OR INDUSTRY SECTOR MAY 
LIKEWISE POST A LETTER OF CREDIT, SURETY BOND OR SOME 
OTHER APPROPRIATE INSTRUMENT IN FAVOR OF THE 
BUREAU IN THE AMOUNT EQUAL TO TWO HUNDRED 


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PERCENT (200%) OF THE DECLARED CUSTOMS VALUE OF THE 
GOODS UNDER QUESTION, PLUS ANY DUTIES, TAXES, FEES OR 
OTHER CHARGES WHICH HAVE ALREADY BEEN PAID 
THEREON, IN WHICH CASE THE COMMISSIONER OF CUSTOMS 
SHALL ACQUIRE SUCH IMPORTED GOODS, PAYMENT FOR 
WHICH SHALL BE MADE WlTHIN TEN (10) WORKING DAYS 
FROM THE ISSUANCE OF A WARRANT SIGNED BY THE 
COMMISSIONER OF CUSTOMS FOR THE ACQUISITION OF SUCH 
GOODS PROVIDED, THAT THE PROVISIONS OF SECTION 201 OF 
THIS CODE SHALL APPLY IN THE CASE OF SURETY BONDS 
AND SURETY COMPANIES. 
"An importer who is dissatisfied x x x. 
"Where no appeal is made by the importer, or upon reaffirmation 
of the Commissioner's decision during the appeals process, the 
Bureau of Customs or its agent shall sell the acquired goods pursuant 
to existing laws and regulations. n\T CASES WHERE COMPULSORY 
ACQUISlTION 
WAS 
INITIATED 
BY 
THE 
INDUSTRY 
ASSOCIATION OR INDUSTRY SECTOR, THE COMMISSIONER 
SHALL CLAIM ON THE LETIER OF CREDlT, SURETY BOND OR 
WHATEVER INSTRUMENT POSTED OR USED FOR THE PURPOSE 
AND THEREUPON RELEASE THE ACQUIRED ARTICLES TO THE 
INDUSTRY ASSOCIATION OR INDUSTRY SECTOR WHICH 
POSTED THE INSTRUMENT. 
"Nothing in this Section limits x x x." 
SEC. 41. Section 2503 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 2503. Undervaluation, Misclass$cation and Misdeclaration in 
Entrv. - When the dutiable value of the imuorted articles shall be so 


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declared and entered that the duties, based on the declaration of the 
importer on the face of the entry would be less by ten percent (10%) 
than should be legally collected, or when the imported articles shall be 
so described and entered that the duties based on the importer's 
description on the face of the entry would be less by ten percent (10%) 
than should be legally collected based on the tariff classification, or 
when the dutiable weight, measurement or quantity of imported 
articles is found upon examination to exceed by ten percent (10%) or 
more than the entered weight, measurement or quantity, a surcharge 
shall be collected from the importer in an amount of not less than the 
difference between the full duty and the estimated duty based upon 
the declaration of the importer, nor more than twice of such 
difference: Provided, That an undervaluation, MISCLASSIFICATION, 
misdeclaration in weight, measurement or quantity of more than 
thirty percent (30%) between the value, weight, measurement or 
quantity declared in the entry, and the actual value, weight, quantity, 
or measurement shall constitute a prima facie evidence of fraud 
penalized under Section 2530 AND SECTION 3602 of this Code: 
Provided, 
further, 
That 
any 
UNDERVALUED, 
misdeclared, 
MISCLASSIFIED or undeclared imported articles/items found upon 
examination shall ipsofacto be forfeited in favor of the Government to 
be disposed of pursuant to the provisions of this Code: PROVIDED, 
FURTHERMORE, THAT THE LICENSE, PERMIT AND THE 
BUS= 
NAME OF THE SUBJECT IMPORTER SHALL BE 
DEEMED AUTOMATICALLY REVOKED. 
"THE PROVISIONS OF THIS SECTION SHALL LIISEWISE 
APPLY WHEN IMPORTED ARTICLES THAT CONTAIN A 
PRINCIPAL INGREDIENT TO WHICH A HIGHER TARIFF IS 


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PRESCRIBED, DECLARED, DESCRIBED AND ENTERED SUCH 
THAT THE DUTIES BASED ON THE IMPORTER‘S DECLARATION 
ON THE FACE OF THE ENTRY WOULD BE LESS BY TEN 
PERCENT (10%) OR MORE THAN WHAT SHOULD BE LEGALLY 
COLLECTED BASED ON THE HIGHER TARIFF CLASSIFICATION: 
PROVIDED, THAT THE AMOUNT OF SAID INGREDIENT IN THE 
IMPORTED ARTICLES REACHES THE THRESHOLD CONTENT 
PRESCRIBED IN SAID HIGHER CLASSIFICATION. 
“When the undervaluation, misdescription, misclassification or 
misdeclaration in the import entry is intentional, the importer shall be 
subject to penal provisions under Section 3602 of this Code.” 
SEC. 42. A new Section, to be known as Section 2503-A, is hereby inserted in 
Part 4, Title VI, Book II of the Tariff and Customs Code of the Philippines, as 
amended, to read as follows: 
“SEC. 2503-A. 
NON-IMPOSITION 
OF 
SURCHARGE. - 
EXEMITION FROM THE SURCHARGE SHALL BE ALLOWED 
ONLY IN CASES WHEN THE DECLARED OR ENTERED 
CLASSIFICATION IS BASED ON RULINGS BY THE TARIFF 
COMMISSION PURSUANT TO SUBSECTION (A) OF SECTION 1313 
OF THIS CODE PROVIDED, THAT THE DESCRIPTION OF THE 
ARTICLE 
IS 
FOUND 
CORRECT 
UPON 
EXAMINATION 
PROVIDED, FINALLY, THAT BASED ON THE RESULT OF THE 
EXAMINATION, THE ARTICLE IS FOUND ESSENTIALLY THE 
SAME As THAT DESCRIBED IN THE RULING.” 
SEC. 43. Section 2601 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
“SEC. 2601. 
[Property Subject to Sale] PROPERTY UNDER 
CUSTOMS CUSTODY SUBIECT TO DISPOSITION. - Property in 


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customs custody THAT shall be subject to [sale under the conditions] 
THE MODES OF DISPOSlTION AS provided FOR IN SECTION 2602 
HEREOF. x x x." 
SEC. 44. Section 2602 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 2602. [Place of Sale or Other Disposition of Property1 MODES 
OF DlSPOSITlON OF PROPERTY UNDER CUSTOMS CUSTODY. - 
Property within the purview of this part of this Code shall be [sold, or 
otherwise disposed of, upon the order of the Collector of the port 
where the property is found, unless the Commissioner shall direct its 
conveyance for such purpose to some other port.] DISPOSED OF 
THROUGH THE FOLLOWING MODES OF DISPOSITION 
"(A) WHEN SUBJECT PROPERTY HAS EXPORT POTENTIAL, 
THE SAME SHALL BE EXPORTED THROUGH A GOVERNMENT 
ENTITY WHICH SHALL BE DESIGNATED TO PERFORM SAID 
TASK; 
"(B) WHEN THE PROPERTY Is NOT EXPORTED, AND UPON 
RECOMMENDATION OF THE COMMISSIONER OF CUSTOMS, 
THE SECRETARY OF FINANCE! MAY AUTHORIZE THE OFFICIAL 
USE OF THE ARTICLES TO PROMOTE THE INTENSIVE 
COLLECTION OF TAXES AND/OR TO HELP PREVENT OR 
SUPPRESS SMUGGLING AND OTHER FRAUDS UPON THE 
CUSTOMS; 
"(C) 
WHEN THE ARTICLE 
IS NOT SUITABLE FOR 
EXPORTATION OR FOR USE AGAINST SMUGGLING OR OTHER 
FRAUDS UPON CUSTOMS, THEN IT MAY BE CHANNELED TO 
THE OFFICIAL USE OF OTHER OFFICES OF THE NATIONAL 
GOVERNMENT; AND 


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"(D) 
IF THE ARTICLE IS SUITABLE FOR SHELTER OR 
CONSISTS OF FOODSTUFFS OR CLOTHING MATERIALS, THEN 
THAT ARTICLE MAY BE GIVEN TO THE APPROPRIATE 
GOVERNMENT A G E N a  PROVIDED, THAT THIS AGENCY USES 
THIS ONLY 
FOR OFFICIAL PURPOSE , OR FOR CHARITY. 
(Ordor?ez amendment) 
"THE COST OF EXPORTATION OF SUBJECT PROPERTY 
UNDER THIS SECTION, INCLUDING ALL ATTENDANT COSTS 
THERETO, 
SHALL 
BE 
SHOULDERED 
BY 
THE 
IMPORTER/CONSIGNEE WHO UNLAWFULLY BROUGHT IN THE 
IMPORTED ARTICLE, AND/OR THE BROKER THEREOF, AS THE 
CASE MAY BE; WHEN BOTH THE IMPORTER/CONSIGNEE WHO 
UNLAWFULLY BROUGHT IN THE IMPORTED ARTICLE AND 
THE BROKER CAN NOT BE LOCATED THEN THE GOVERNMENT 
ENTITY WHICH IS DESIGNATED TO EXPORT SUBJECT 
PROPERTY SHALL SHOULDER THE COST OF EXPORTATION 
PROVIDED, THAT ARTICLES TO BE EXPORTED UNDER THIS 
SECTION SHALL BE TRANSFERRED BY THE BUREAU OF 
CUSTOMS TO THE GOVERNMENT ENTITY THAT IS MANDATED 
TO EXPORT THE ARTICLES WITHIN FIFTEEN (15) DAYS FROM 
THE TIME THE FORFEITURE HAS BECOME FINAL AND 
EXECUTORY PROVIDED, FURTHER, THAT ARTICLES THAT ARE 
CHANNELED OR AUTHORIZED FOR OFFICIAL USE OR FOR 
CHARITABLE PURPOSES BY GOVERNMENT ENTITIES SHALL 
NOT 
BE 
SOLD NOR 
EXCHANGED IN ANY MANNER 
WHATSOEVER 
FOR 
OTHER 
ARTICLE3 
PROVIDED, 
FURTHERMORE, THAT THZ COST OF HANDLING, STORAGE, 
TRANSPORTATION AND OTHER CHARGES INCIDENTAL TO 


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THE UPKEEP AND TRANSPORTATION OF SUBJECT ARTICLE 
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SHALL BE BORNE BY THE RECIPIENT GOVERNMENT AGENCY 
3 
PROVIDED, FINALLY, THAT IF SUBJECT ARTICLE CANNOT BE 
4 
EXPORTED 
THROUGH 
THE 
GOVERNMENT 
ENTlTY 
5 
DESIGNATED FOR THE PURPOSE OR IS NOT SUITABLE EITHER 
6 
FOR OFFICIAL USE OR CHARITY, THE SAME SHALL BE BURNED 
7 
OR DESTROYED IN SUCH MANNER AS THE CASE MAY 
8 
REQUIRE AS TO RENDER THEM ABSOLUTELY WORTHLESS, IN 
9 
THE PRESENCE OF A REPRESENTATIVE EACH FROM THE 
10 
COMMISSION ON AUDIT, THE DEPARTMENT OF JUSTICE, THE 
11 
BUREAU OF CUSTOMS, AND FROM THE PRIVATE SECTOR." 
12 
SEC. 45. Section 2603 of the Tariff and Customs Code of the Philippines, as 
13 
14 
"SEC. 2603. 
[Mode of Sale1 DISPOSITION OF PROCEEDS IN 
15 
CASE OF EXPORTATION. - F 
the absence of any special provision, 
16 
subject to the provisions of Section 2601 above provided, property 
17 
subject to sale by the customs authorities shall be sold at public 
18 
auction within thirty (30) days after ten (10) days notice of such sale 
19 
shall have been conspicuously posted at the port and such other 
20 
advertisement as may appear to the Collector to be advisable in the 
21 
particular case.] THE FOLLOWING CHARGES SHALL BE PAID 
22 
FROM THE PROCEEDS OF THE EXPORTATION OF ARTICLES 
23 
WITHIN THE PURVIEW OF THIS PART OF THIS CODE: 
24 
"(A) 
EXPORTATION 
EXPENSES 
INCURRED 
BY 
THE 
25 
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27 
DUE THE GOVERNMENT; 
28 
"(C) 
STORAGE CHARGES; 
amended, is hereby further amended to read as follows: 
GOVERNMENT ENTITY DESIGNATED FOR THE PURPOSE; 
"(B) 
TAXES AND OTHER CHARGES, AS THE CASE MAY BE, 


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”(D) ARRASTRE CHARGES; AND 
“(E) FREIGHT, LIGHTERAGE AND OTHER EXPENSES 
INCIDENTAL TO THE EXPORTATION.” 
SEC, 46. Section 2604 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
”SEC. 2604. 
[Disqual$cation to Participate in Auction Sale] 
DISPOSITION 
OF 
SURPLUS 
FROM 
THE 
PROCEEDS 
OF 
EXPORTATION OF PROPERTY WlTHIN THE PURVIEW OF THIS 
PART OF THIS CODE. - P o  customs official or employee shall be 
allowed to bid directly or indirectly, in any customs auction.] ANY 
SURPLUS REMAINING AFTER THE SATISFACTION OF ALL 
LAWFUL CHARGES AS PROVIDED FOR IN SECTION 2603 OF 
THIS CODE SHALL BE DEPOSITED IN A SPECIAL TRUST FUND 
WHICH SHALL BE USED SOLELY FOR THE PURPOSE OF 
FINANCING THE COMPULSORY ACQUISITION OF IMPORTED 
GOODS BY THE GOVERNMENT AS PROVIDED FOR IN SECTION 
2317 OF THIS CODE.” 
SEC. 47. Section 2612 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
“SEC. 2612. Disposition of Smuggled Articles. - Smuggled articles, 
after liability to seizure or forfeiture shall have been established by 
proper administrative [or judicial] proceedings in conformity with the 
provisians of this Code, shall be disposed of as provided for in Section 
2602 hereof: Prmided, That articles whose importation is prohibited 
under Section One Hundred pwo] ONE, subparagraphs b, c, d, e, 
and j shall upon order to the Collector in writing, be burned or 
destroyed, in such manner as the case may require as to render them 
absolutely worthless, in the presence of a representative each from the 


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Commission on Audit, [Minisky] DEPARTMENT of Justice, Bureau of 
Customs, and if possible, any representative of the private sector." 
SEC. 48. Section 3519 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 3519. 
Words and Phrases Defined. - x x x: 
I, x x x. 
"FOREIGN 
TRANSSHIPMENT' 
SHALL REFER TO THE 
TRANSPORT OF GOODS FROM A FOREIGN COUNTRY INTO THE 
PORT 
OF 
MANILA 
FOR 
SHIPMENT 
TO 
A 
FOREIGN 
DESTINATION WITHOUT INTRODUCING THE SAME INTO THE 
PHILIPPINE CUSTOMS TERRITORY, PROVIDED THE SAME IS 
COVERED BY A CERTIFICATE OF DISCHARGE. 
x x x. 
I, 
"'Smuggling' is an act of any person who shall fraudulently 
import or bring into the Philippines, or assist in so doing, any article, 
contrary tu law, or shall receive, conceal, buy, sell or in any manner 
facilitate the transportation, concealment, or sale of such article after 
importation, knowing the same to have been imported contrary to 
law. It includes the exportation of articles in a manner contrary to law. 
Articles subject to this paragraph shall be known as smuggled articles: 
PROVIDED, THAT THE ACT OF RECEIVING ARTICLES THAT ARE 
SUPPOSED TO BE EXPORTED BUT ARE SUBSEQUHNTLY 
RETURNED AND REJECTED BY THE IMPORTING COUNTRY 
SHALL NOT BE CONSIDERED SMUGGLING." 
SEC. 49. Section 3601 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 3601. 
SMUGGLING. - Any person who shall 
fraudulently import or bring into the Philippines, or assist in so doing, 


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any article, contrary to law, SHALL BE GUILTY OF SMUGGLING 
AND SHALL BE PUNISHABLE AS HEREIN PROVIDED. ANY 
PERSON [or] WHO s h d  receive, conceal, buy, sell, or in any manner 
facilitate the transportation, concealment, or sale of such article after 
importation, knowing the same to have been imported contrary to 
law, shall be DEEMED guilty of smuggling and shall LIKEWISE be 
[punished with] PUNISHABLE AS HEREIN PROVIDED ANY 
IMPORTATION WHICH IS NOT COVERED BY A LETTER OF 
CREDIT AND/OR PERMIT FROM THE BANGKO SENTRAL NG 
PILIPINAS TO IMPORT SAID PRODUCT, SHALL BE CONSIDERED 
AS ILLEGALLY IMPORTED AND SHALL BE DISPOSED OF IN THE 
MANNER AS PROVIDED FOR IN SECTION 2602 OF THIS CODE. 
1. A fine IN AN AMOUNT EQUAL TO THE APPRAISED 
VALUE PLUS FIFTY PERCENT (50%) THEREOF and imprisonment 
of not less than six months and one day nor more than four years, if 
the appraised value, to be determined in the manner prescribed under 
this Code, including duties and taxes, of the article unlawfully 
imported exceeds FIVE THOUSAND PESOS (P5,OOO.OO) but does not 
exceed fifty thousand pesos (F50,OOO.OO); 
2. A fine IN AN AMOUNT EQUAL TO THE APPRAISED VALUE 
PLUS FIFTY PERCENT (50%) THEREOF and imprisonment of not 
less than FOUR YEARS and one day nor more than eight years, if the 
appraised value, to be determined in the manner prescribed under 
this Code, including duties and taxes, of the article unlawfully 
imported is more than FIFTY thousand pesos (P50,OOO.OO) but does 
not exceed one hundred fifty thousand pesos (l'l50,OOO.OO); 
3. A FINE IN AN AMOUNT EQUAL TO THE APPRAISED 
VALUE 
PLUS 
FIFTY 
PERCENT 
(50%) THEREOF 
AND 


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IMPRISONMENT OF NOT LESS THAN EIGHT YEARS AND ONE 
DAY NOR MORE THAN TWELVE YEARS, IF THE APPRAISED 
VALUE, TO BE DETERMINED IN THE MANNER PRESCRIBED 
UNDER THIS CODE, INCLUDING DUTIES AND TAXES, OF THE 
ARTICLE UNLAWFULLY IMPORTED EXCEEDS ONE HUNDRED 
FIFTY THOUSAND PESOS (Pl50,OOO.OO) BUT DOES NOT EXCEED 
TWO HUNDRED FIFTY THOUSAND PESOS (P250,OOO.OO); 
4. A FINE IN AN AMOUNT EQUAL TO THE APPRAISED 
VALUE 
PLUS 
FIFTY 
PERCENT 
(50%) THEREOF 
AND 
IMPRISONMENT OF NOT LESS THAN TWELVE YEARS AND ONE 
DAY NOR MORE THAN FIFTEEN YEARS, IF THE APPRAISED 
VALUE, TO BE DETERMINED IN THE MANNER PRESCRIBED 
UNDER THIS CODE, INCLUDING DUTIES AND TAXES, OF THE 
ARTICLE UNLAWFULLY IMPORTED EXCEEDS TWO HUNDRED 
FIFTY THOUSAND PESOS (P250,OOO.OO) BUT DOES NOT EXCEED 
FIVE HUNDRED THOUSAND PESOS (P500,OOO.OO); 
5. A FINE IN AN AMOUNT EQUAL TO THE APPRAISED 
VALUE 
PLUS 
FIFTY 
PERCENT 
(50%) THEREOF 
AND 
IMPRISONMENT OF NOT LESS THAN FIFTEEN YEARS AND ONE 
DAY NOR MORE THAN TWENTY YEARS, IF THE APPRAISED 
VALUE, TO BE DETERMINED IN THE MANNER PRESCRIBED 
UNDER THIS CODE, INCLUDING DUTIES AND TAXES, OF THE 
ARTICLE UNLAWFULLY IMPORTED EXCEEDS FIVE HUNDRED 
THOUSAND PESOS (P500,OOO.OO) BUT DOES NOT EXCEED ONE 
MILLION PESOS (Pl,OOO,OOO.OO); 
6. A FINE IN AN AMOUNT EQUAL TO THE APPRAISED 
VALUE PLUS FIFTY PERCENT (50%) THEREOF AND 
LIFE 
IMPRISONMENT, 
IF 
THE 
APPRAISED 
VALUE, 
TO 
BE 


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DETERMINED IN THE 
MANNER PRESCRIBED UNDER THIS 
CODE, INCLUDING DUTIES AND TAXES, OF THE ARTICLE 
UNLAWFULLY IMPORTED EXCEEDS ONE MLLION PESOS 
(Pl,000,000.00); 
7. The penalty of prision myor TO RECLUSION TEMPORAL shall 
be imposed when the crime of serious physical injuries shall have 
been committed and the penalty of reclusion perpetua to death shall be 
imposed when the crime of homicide shall have been committed by 
reason or on the occasion of the unlawful importation. 
"In applying the above scale of penalties, if the offender is an alien 
and the prescribed penalty is not death, he shall be deported after 
serving the sentence without further proceedings for deportation. If 
the offender is a government official or employee, the penalty shall be 
a maximum as hereinabove prescribed and the offender shall suffer 
and additional penalty of perpetual disqualification from public 
office, to vote and to participate in any public election. HE SHALL 
ALSO LOSE ALL THE BENEFMS DUE HIM AS A RESULT OF HIS 
SERVICE IN THE GOVERNMENT, INCLUDING THE FORFEITURE 
OF HIS SEPARATION AND RETIREMENT BENEFITS. (Enrile 
amendment) 
"When, upon trial for violation of this section, the defendant is 
shown to have had possession of the article in question, possession 
shall be deemed sufficient evidence to authorize conviction unless the 
defendant shall explain the possession to the satisfaction of the court: 
Provided, however, That payment of the tax due after apprehension 
shall not constitute a valid defense in any prosecution under this 
section." 


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SEC. 50. Section 3602 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
“SEC. 3602. 
Various Fraudulent Practices Against cusfoms 
avenue. - Any person who makes or attempts to make entry of 
imported or exported article by means of any false or fraudulent 
invoice, declaration, affidavit, letter, paper or by any means of any 
false statement, written or verbal, or by any means of any false or 
fraudulent practice whatsoever, or mowingly] effects any entry of 
goods, wares or merchandise, at less than the true weight or measures 
thereof or upon a false classification as to quality or value, or by the 
payment of less than the amount legally due, or &nowingly and 
willfully] files any false or frauddent entry or claim for the payment 
of drawback or refund of duties upon the exportation of merchandise, 
or makes or files any affidavit, abstract, record, certificate or other 
document, with a view to securing the payment to himself or others of 
any drawback, allowance, or refund of duties on the exportation of 
merchandise, greater than that legally due thereon, or who shall be 
guilty of any [willful] act of omission shall, for each offense, BE 
GUILTY OF TECHNICAL SMUGGLING AND SHALL be [punished 
in accordance with the penalties prescribed in the preceding section] 
PUNISHABLE AS FOLLOWS 
I 
“ L A  FINE OF NOT LESS THAN THREE HUNDRED 
THOUSAND PESOS (E’300,OOO.OO) 
NOR MORE THAN FIVE 
HUNDRED 
THOUSAND 
PESOS 
(P500,OOO.OO) 
AND 
IMPRISONMENT 
OF mrsroiv 
COKRECIONAL, IF 
THE 
DIFFERENCE BETWEEN THE VALUE, WEIGHT, MEASUREMENT 
O R  QUANTITY DECLARED IN THE ENTRY AND THE TRUE AND 
ACTUAL VALUE, WEIGHT, QUANTlTY OR MEASUREMENT OF 


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THE ARTICLE UNLAWFULLY IMPORTED DOES NOT EXCEED 
ONE HUNDRED THOUSAND PESOS (PlO0,OOO.OO); 
"2. A FINE OF NOT LESS THAN FIVE HUNDRED THOUSAND 
PESOS (P500,OOO.OO) 
NOR MORE THAN EIGHT HUNDRED 
THOUSAND PESOS (P800,000.00) AND IMPRISONMENT OF 
PRlSION MAYOR, IF THE DIFFERENCE BETWEEN THE VALUE, 
WEIGHT, MEASUREMENT OR QUANTITY DECLARED IN THE 
ENTRY AND THE TRUE AND ACTUAL VALUE, WEIGHT, 
QUANTITY OR MEASUREMENT OF THE ARTICLE UNLAWFULLY 
IMPORTED EXCEEDS ONE HUNDRED THOUSAND PESOS 
(F'lOO,OOO.OO) 
BUT DOES NOT EXCEED ONE MILLION PESOS 
(m,ooo,ooo.oo); 
"3.A FINE OF NOT LESS THAN EIGHT HUNDRED 
THOUSAND PESOS (P800,OOO.OO) NOR MORE THAN ONE 
MILLION PESOS (Pl,OOO,OOO.OO) 
AND IMPRISONMENT OF 
RECLUSION TEMPORAL, IF THE DIFFERENCE BETWEEN THE 
VALUE, WEIGHT, MEASUREMENT OR QUANTITY DECLARED IN 
THE ENTRY AND THE TRUE AND ACTUAL VALUE, WEIGHT, 
QUANTITY OR MEASUREMENT OF THE ARTICLE UNLAWFULLY 
IMPORTED EXCEEDS ONE MILLION PESOS (~,OOO,OOO.OO) BUT 
DOES NOT EXCEED FIVE MILLION PESOS (P5,000,000.00); 
"4.A FINE OF NOT LESS THAN ONE MILLION PESOS 
(Pl,OOO,OOO.OO) NOR MORE THAN TWO MILLION PESOS 
(P2,000,000.00) 
AND IMPRJSONMENT OF RECLUSION PERPETUA, 
IF THE DIFFERENCE BETWEEN THE VALUE, 
WEIGHT, 
MEASUREMENT OR QUANTITY DECLARED IN THE ENTRY AND 
THE TRUE AND ACTUAL VALUE, WEIGHT, QUANTITY OR 


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MEASUREMENT OF THE ARTICLE UNLAWFULLY IMPORTED 
EXCEEDS FIVE MILLION PESOS (P5,000,000.00). 
“IN APPLYING THE ABOVE SCALE OF PENALTIES, IF THE 
OFFENDER IS AN ALIEN, HE SHALL BE DEPORTED AFTER 
SERVING THE SENTENCE WITHOW FURTHER PROCEEDINGS 
FOR DEPORTATION. IF THE OFFENDER IS A GOVERNMENT 
OFFICIAL OR EMPLOYEE, THE PENALTY IN ITS MAXIMUM 
PERIOD SHALL BE IMPOSED IN ADDITION TO THE PENALTY OF 
PERPETUAL DISQUALIFICATION FROM PUBLIC OFFICE, TO 
VOTE AND TO PARTICIPATE IN ANY PUBLIC ELECTION. IF THE 
OFFENDER FAILS TO PAY THE FINE, HE SHALL SUFFER 
SUBSIDIARY IMPRISONMENT. HE SHALL ALSO LOSE ALL THE 
BENEFITS DUE HIM AS A RESULT OF HIS SERVICE IN THE 
GOVERNMENT, 
INCLUDING THE 
FORFEITURE 
OF 
HIS 
SEPARATION AND RETIREMENT BENEFITS. ” (Enrile amendment) 
SEC. 51. Section 3603 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
“SEC. 3603. Failure to Report Fraud. - Any master, pilot in command 
or other officer, owner or agent of any vessel or aircraft trading with 
or within the Philippines and any employee of the Bureau of Customs 
who, having cognizance of any fraud on the customs revenue, shall 
fail to report all information relative thereto to the Collector as by law 
required, shall be punished by a fine of not LESS THAN ONE 
HUNDRED THOUSAND PESOS (PlO0,OOO.OO) 
BUT NOT MORE 
THAN ONE MILLION PESOS (Pl,OOO,OOO.OO) AND IMPRISONMENT 
OF NOT LESS THAN EIGHT YEARS BUT NOT MORE THAN 
TWELVE YEARS. If the offender is an alien, he shall be deported after 
serving the sentence. If the offender is a public official or employee, he 


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shall suffer additional penalty of perpetual disqu&cation 
to hold 
public office, to vote and to participate in any election. HE SHALL 
ALSO LOSE ALL THE BENEFITS DUE HIM AS A RESULT OF HIS 
SERVICE IN THE GOVERNMENT, INCLUDING THE FORFEITURE 
OF HIS SEPARATION AND RETIREMENT BENEFITS." (Enrile 
amendment) 
SEC. 52. Section 3604 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as foIlows: 
"SEC. 3604. Statutory Offenses of OfFcials and Employees. - Every 
official, agent or employee of the Bureau or any agency of the 
government charged with the enforcement of the provisions of this 
Code, who is guilty of any delinquency herein below indicated shall 
be punished with a fine of not LESS THAN ONE HUNDRED 
THOUSAND PESOS (flO0,OOO.OO) BUT NOT MORE THAN ONE 
MILLION PESOS (Pl,OOO,OOO.OO) 
AND IMPRISONMENT OF NOT 
LESS THAN EIGHT YEARS BUT NOT MORE THAN TWELVE 
YEARS and perpetual disqualification to hold public office, to vote 
and to participate in any public office election. HE SHALL ALSO 
LOSE ALL THE BENEFITS DUE HIM AS A RESULT OF HIS 
SERVICE IN THE GOVERNMENT, INCLUDING THE FORFEITURE 
OF HIS SEPARATION AND RETIREMENT BENEFIT3 (Enrile 
amendment) 
"(a) x x x. 
x x X." 
I, 
SEC. 53. Section 3605 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 3605. Concealment or Destruction of Evidence of Fraud. - Any 
person who willfully conceals or destroys any invoice, book or paper 


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relating to any article liable to duty after an inspection thereof has 
been demanded by the Collector of any collection district or at any 
time conceals or destroys any such invoice, book or paper for the 
purpose of suppressing any evidence of fraud therein contained, shall 
be punished with a fine of not LESS THAN ONE HUNDRED 
THOUSAND PESOS (PlO0,OOO.OO) 
BUT NOT MORE THAN ONE 
MILLION PESOS (Pl,OOO,OOO.OO) 
AND IMPRISONMENT OF NOT 
LESS THAN EIGHT YEARS BUT NOT MORE THAN TWELVE 
YEARS.” 
SEC. 54. Section 3606 of the Tariff and Customs Code of the Phiiippines, as 
amended, is hereby further amended to read as follows: 
“SEC. 3606. Affixing Seals. - Any person who, without authority 
affixes or attaches a customs seal, fastening, or mark or any seal, 
fastening or mark purporting to be a customs seal, fastening or mark 
to any vessel, vehicle on land, sea or air, warehouse, or package, shall 
be punished with a fine of not LESS THAN ONE HUNDRED 
THOUSAND PESOS (PlOO,OOa.OO) 
BUT NOT MORE THAN ONE 
MILLION PESOS (Pl,OOO,OOO.OO) AND IMPRISONMENT OF NOT 
LESS THAN EIGHT YEARS BUT NOT MORE THAN TWELVE! 
YEARS. If the offender is an alien, he shall be deported after serving 
the sentence. If he is a public official or employee, he shall suffer an 
additional penalty of perpetual disqualification to hold public office, 
to vote and participate in any election. HE SHALL ALSO LOSE ALL 
THE BENEFITS DUE HIM AS A RESULT OF HIS SERVICE IN THE 
GOVERNMENT, 
INCLUDING 
THE 
FORFEITURE 
OF 
HIS 
SEPARATION AND RETIREMENT BENEFITS.” (Enrile amendment) 
SEC. 55. Section 3610 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 


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Failuve to Keep Importation Records and Give Full 
2 
Access to Customs OfFcers. - Any person who fails to keep all the 
3 
records of importations and/or books of accounts, business and 
4 
computer systems and all customs commerciaI data in the manner 
5 
prescribed in Part 2, Section 3514 of this Title shall be punished with a 
6 
fine of not less than [One hundred thousand pesos (PlOO,OOO.OO)] 
7 
TWO HUNDRED THOUSAND PESOS (p200,000.00) but not more 
8 
than [Two hundred thousand pesos (P200,000.00)] FIVE HUNDRED 
9 
THOUSAND PESOS (P500,OOO.OO) [and/or] AND imprisonment of 
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not less than [two (211 FOUR (4) years and one day but not more than 
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[six (6)] EIGHT (8) years. This penalty s h d  likewise be imposed 
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against importers/brokers who deny an authorized customs officer 
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full and free access to such records, books of accounts, business and 
14 
computer systems, and all customs commercial data including 
15 
payment records. This is without prejudice to the administrative 
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sanctions that the Bureau of Customs may impose against 
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contumacious importers under existing laws and regulations 
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including the authority to hold delivery or release of their imported 
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articles." 
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"SEC. 3610. 
SEC. 56. Section 3612 of the Tariff and Customs Code of the Philippines, as 
amended, is hereby further amended to read as follows: 
"SEC. 3612. Violations of Tarifand Customs Laws and Regulations in 
General. - Any person who violates a provision of this Code or 
regulations pursuant thereto, for which delinquency no specific 
penalty is provided, shall be punished by a fine of not LESS THAN 
TWENTY THOUSAND PESOS (P20,OOO.OO) BUT NOT more than one 
HUNDRED thousand pesos (PlOO,OOO.OO) [or] AND by imprisonment 
for not LESS THAN TWO YEARS AND ONE DAY BUT NOT more 


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than [one] FIVE ye&[, or both]. If the offender is an alien, he shall be 
deported after serving the sentence and if the offender is a public 
official or employee, he shall suffer disqualification to hold public 
office, to vote and participate in any public election for ten years. HE 
SHALL AIS0 LOSE ALL THE? BENEFITS DUE HIM AS A RESULT 
OF HIS SERVICE IN THE GOVERNMENT, INCLUDING THE 
FORFEITURE 
OF 
HIS 
SEPARATION 
AND 
RETIREMENT 
BENEFITS." (Enn'le amendment) 
SEC. 57. A new section, to be known as Section 3613, is hereby inserted to 
the Tariff and Customs Code of the Philippines, as amended, to read as follows: 
"SEC. 3613. 
SUMMARY PROCEDURE FOR SEIZURE AND 
FORFEITURE. - NOTWITHSTANDING THE PROVISIONS OF T m E  
VI OF THIS CODE, ARTICLES WHICH ARE FRAUDULENTLY 
IMPORTED OR BROUGHT INTO THE PHILIPPINES WITHOUT 
BEING 
ENTERED THROUGH THE 
CUSTOMSHOUSE, 
OR 
WITHOUT PAYMENT OF THE CORRECT AND APPLICABLE 
DUTIES, TAXE, FEES AND CHARGES SHALL BE SUMMARILY 
SEIZED AND FORFEITED IN FAVOR OF THE GOVERNMENT 
WHEN WARRANTED OR DETERMINED IN THE SEIZURE 
PROCEEDINGS. SUBJECT TO THE PROVISIONS OF SECTIONS 
2530 AND 2531 OF THIS CODE, ANY VESSEL OR AIRCRAFT 
WHICH rs LEASED TO FRAUDULENTLY BRING IN SAID 
IMPORTED ARTICLES INTO THE PHILIPPINES SHALL LIKEWISE 
BE SUBJECT TO SUMMARY SEIZURE AND FORFEITURE. 
"THE DECISION OF THE SECRETARY OF FINANCE, UPON 
THE 
RECOMMENDATION OF THE 
COMMISSIONER 
OF 
CUSTOMS, UNDER THIS SECTION SHALL BE FINAL AND 
UNAPPEALABLE. 


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”NO COURT, EXCEPT THE COURT OF TAX APPEALS AND 
THE SUPREME COURT, SHALL ISSUE ANY TEMPORARY 
RESTRAINING ORDER OR ANY INJUNCTIVE RELIEF AGAINST 
THE SEIZURE, FORFEITURE OR DISPOSITION OF THE SUBJECT 
ARTICLES COVERED BY THIS SECTION. 
“THE OWNER OR OPERATOR OF ANY SEIZED VESSEL OR 
AIRCRAFT UNDER THIS SECTION SHALL BE BLACKLISTED 
FROM OPERATING AND/OR FROM ENGAGING IN TRADE IN 
THE PHILIPPINES.” 
SEC. 58. Transit0 y Provision. - All existing customs bonded warehouses 
established under Section 1901 of the Tariff and Customs Code of the Philippines, as 
amended, shall have one year from approval of the law to convert themselves to 
manufacturing customs bonded warehouses under Section 2001 of the Code or 
register themselves in special economic zones or freeports. After the lapse of the one 
year period, any importation by these customs bonded warehouses shall be treated 
as regular importations to be covered by ordinary consumption entries only, unless 
such customs bonded warehouse in the meantime has transferred to a special 
economic zone or PEZA zone, which in such case the said importation shall be 
treated as a PEZA shipment, 
SEC. 59. Separability Clause. - If any provision of this Act is subsequently 
declared unconstitutional, the validity of the remaining provisions hereof shall 
remain in full force and effect. 
SEC. 60. Rules and Regulations. - The Secretary of Finance shall, upon the 
recommendation of the Commissioner of Customs, promulgate the necessary rules 
and regulations for the effective implementation of this Act. 
SEC. 61. Repealing Clause. - Sections 2605,2606,2607 and 2610 of the Tariff 
and Customs Code of the Philippines, as amended, are hereby repealed. All laws, 


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decrees, executive orders, d e s  and regulations and other issuances or parts thereof 
which are inconsistent with this Act are hereby repealed or modified accordingly. 
SEC. 62. Eflectivity. - This Act shall take effect fifteen (15) days after its 
publication in any two (2) newspapers of general circulation. 
Approved, 
5