THIRTEENTH CONGRESS OF 
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Second Regular Session 
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THE REPUBLIC OF THE PHILIPPINES ) 
S E N A T E  
3 NOV -7 P956 
RECEIVED FW : a- 
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S. No. 
2154 
INTRODUCED BY THE MEMBERS OF THE COMMITTEES 
ON TRADE AND COMMERCE AND ON ECONOMIC AFFAIRS 
AN ACT 
AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL DECREE: NO. 1464, 
OTHERWISE W O W "  AS THE TARIFF AND CUSTOMS CODE OF THE 
PHILIPPINES, AS AMENDED, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House OfReprejentatives of the Philippines in 
Congress assembled: 
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Section'l. Short EtIe. - This Act shaIl be &own and cited as the "Anti- 
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Smuggling Act of 2005." 
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Section 2. - Section 601 of the Tariff and Customs Code of the Philippines 
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(TCCP), as amended, is hereby further amended to reid'as follows: 
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' , 'SEC. 601. Chief UfZcjds of the Bureiu of Customs. - The Bureau of Cusioms 
shall have bne chief,and FIVE [fowl 'assistant chiefs,.k be known respectively as the. 
Commissioner of Customs (hereinafter known as tqe Commissioner) and FIVE (5) 
Depucy Commissioners bf Customs, each one to head (a) Customs Revenue and 
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Collection Monitoring. Group; (b) -Customs Assessment and .Operations Coordinating 
Group: (c) Intelligence and. Enforcement Group; (d) internal Administration Group; 
AND (5) AWDIT AND TRANSPARENCY GROW, &IO 
shall each receive an annual 
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compensation in accordance with the rates prescribed by existing law. 
The 
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commissioner 
AND 
DEPUTY 
COMMISSIONER 
FOR AUDIT 
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TRANSPARENCY SHALL BE DIRECTLY APPOINTED 
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BY THE, PRESIDENT. THE 
OTHER DEPUTY COMMISSIONERS SHALL BE AP~OINTED BY THE’PRESIDENT 
OF ,THE PHILIPPINES BASED ON’ THE R~COMMENDATION 
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COMMISSIONER. 
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“In case of temporary End permanent yacancy, 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 01 
:tl-re.position is filled by permanent appointment.” 
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Section, 3: - Section 607 of the Tariff and ‘Customs Code of the Philippines 
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(TkCP), as amended, is hereby further amended to read as follows: 
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“SEC. 607. Annual Report of Commjs~oner. - The annual report of the 
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Commissioner to’ the President shall, among other jhings, contain a compilation of 
.the (a) qtiantity and value of the articles importeb into the Philippines and the 
corresponding amount of customs duties, taxes and other charges assessed and 
collected on imported articles itemized in accordanbe with the tariff headings and 
subheadings as appearing in the liquidated customs eitries provided for in this Code, 
(b) percentage collection of the peso value of imljorts, (c) quantity and value of 
conditionally-free importations, (d) customs valuatiod over and’above letters of credit 
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opened, (e) quantity and value of tax-free imports, and (fl the quantity and value of 
articles 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 
anhual report [shall be furnished regularly] to the Department of Finance, Tariff 
Commission, NEDA, Central Bank of the Philippines, Board of Investments, 
Department of Budget, and other economic agencies of the government, on or before 
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December 30, of each year. 
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“For more scientific preparation of the annual report, the Commissioner shall 
‘cause the computerization of the data contained in the liquidated entries filed with 
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. the Bureau.of Customs.” 
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’ Section 4. - Section 609 of the TCCP, as amedded, is hereby further amended 
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to read as follows: 
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“SEC. 609. Conimissjoner to Furnjsh Coijes of Collectors’ Liquidated 
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DupIiCar& - The Commissioner shall regularly furnish the NEDA, the Central Bank : 
of the- PGilippines, the Tariff Commission, AND kHE’ NATIONAL STATISTICS 
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OFFICE (NSO), BOTH ELECTRONIC AND PAPER; COPIES of each of all customi 
,import/ export entries as filed with the Bureau of Cusioms. The Tariff Commission cir 
-its duly authorized agents shall have access to and tbe 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 FOREGdING DOCUMENTS SHALL BE 
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MADE ACCESSIBLE AND AVAILABLE TO THE ?EPUTY COMMISSIONER FOR 
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AUDIT AND TRANSPARENCY AT ALL TIMES.” 
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Section 5. - Section 709 of the TCCP, as amended, is hereby further amended 
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to read as follows: 
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‘“SEC. 709. Authority of the CoIIector to &mis Duties. -A Collector shail have 
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‘discredonay’ authority to remit the assessment and cqllection 
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of customs duties; taxes 
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’ and. o<her. charges wheh the aggregate amount of sucq duties, taxes, and other charges 
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articles of less than FIVE THOUSAND PESOS in value except in cases of prohibited 
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i~po~atianwof 
the habitual or th-B in&tiohal viklbtion of the tariff and customs 
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laws.“ 
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Section 6. - A  new part shall be inserted starting 4 t h  SECTION 713, after Section 
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712 of the TCCP, as amended, which shall read as follbws: 
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"PART 3. - AUDIT, TRANSPARENCY ANp ACCOUNTABILITY 
DOUBT ON THE V A L I D I ~  
OF THE SAIR AUDI+, THE RECOMMENDATIONS 
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SHALL HAVE PERSUASIVE WEIGHT AND SHALL'BE PROMPTLY ACTED UPON 
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BY THE COMMISSIONER. 
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"  THE^ ' .DEPUTY COMMISSIONER 
S H A ~ L  LIKEWISE 
' HAVE THE 
AUTHORITY TO 'CONDUCT INVESTIGATIONS FOR THE PURPOSE OF 
INITIATING. PROS~CUTION OF -FRAUD AND o+ER 
GRAFT AND .C~RRUPT 
.PRACTICES IN- THE BUREAU, AND 
SHA$ 
RECOMMEND TO THE 
OMBUDSMAN.THE FILING OF APPROPRIATE CRIMINAL CASES AGAINST THE 
ERRING PERSONNEL, AND TO THE COMMISI~ONER THE IMPOSITION OF 
ADMINISTRATIVE SANCTIONS. 
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IN. THE 
CONDU~T OF 
ITS 
AUDIT AND 
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"SECTION 716. 
INVESTIGATIONS, THE DEPUTY COMMISSIO~ER OR THE 
PRNATE 
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, '  AG.DITOR.SEALL,HAVE 
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THE AUTHORITY TO RE~UIRE THE PRODUCTION OF 
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DOCUMENTS AND REQUIRE BUREAU 'PERSOI+NEL TO RESPOND TO ITS 
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,' INQUIRIES. *OR 'THIS 'PURPOSE, IT MAY ISSU$ SUBPOENA DUCES TECUM', 
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AND AD TESTIFICANDUM ANY PERSON WHO  HALL REFUSE TO ABIDE BY 
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THE SUBPOENA so ISSUED MAY BE HELD LIABL$ FOR CONTEMPT. 
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"SECTION 717. THE DEPUTY COMMISSIONER FOR AUDIT AND 
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TRANSPARENCY 
SHALL 
SUBMIT AN 
AN$IUAL 
REPORT 
TO 
THE 
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COMMISSIONER, THE SECRETARY OF plNA&cs, THE OFICE OF THE 
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PRESIDENT, AND THE CONGRESS, STATING THE !RESULT OF ITS INSPECTIONS 
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AND AUDITS. THE REPORT SHALL CONTAIN ~ L L  
THE NECESSARY DATA 
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WHICH LED TO 'ITS RECOMMENDATIONS AND FINDINGS, AND SHALL BE 
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MADE AVAILABLE TO THE PUBLIC THROUGH ELECTRONIC AND NON- 
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ELECTRONIC MEANS, UNLESS NON-DISCLOSURE IS WARMNTED BY 
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NATIONAL SECURITY. 
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Section 7. - A new section to be known as SECTION 1001-A is hereby 
inserted after Section 1001 of the TCCP, as amended, yvhich shall read as follows: 
"SEC. 1001-A. TMSMISSION OF ELECT k OhTC COPY OF M I F E S T  
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PRIOR TO ARRI-VAL, - AN ,ELECTRONIC CqPY OF THE CARGO AND 
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PASSENGER-MANIFEST OF.THE VESSEL ENGAG& IN FOREIGN TRADE SHALL , , , 
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TRANSMITTED' TO, THE BUREAU OF CUSTOFS AT LEAST SIX (6) HOURS 
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TG THE'VESSE~S 
ARRIVAL IN THE PORT b F  ENTRX PROVIDED, THAT. 
Ip'THE,i;ESSEi Is AN AIRCRAFT, T m  MANIFESTISHALL BE TwSMI~ED TO '' 
.THE. .BUREAU OF, 
.CUSTOMS AT LEAST ONE j (1) HOUR PRIOR TO THE 
AIRCRAFT'S ARRIVAL IN THE PORT OF ENTRY." 
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Section 8; - Section 1007 of the TCCP, as ameqded, is hereby further amended 
to read,as follows: 
"SEC. 1007: Maniifests for Commission on Audit and Collector: - Papers to be 
Deposhed '&th Consul. - Immediately after the arrivd'l of a vessel from a foreign port, 
the'master shall deliver or mail to the Chairman,, Co&mission on Audit, Manila, and 
the DEPUTY COMMISSIONER FOR AUQIT AND TWSPARENCY, a copy of the 
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cargo manifests properly endorsed by the boarding officer, afld the master shall 
immediately present to the Collectkrkhe origind copy of the cargo manifests properly 
eridorsed by the boarding officer, and, for inspecti d n, the ship's register or other 
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dbcuments'in lieu thereof, together with the clearadce and other papers granted to 
the vqssel'at the port of.departur6 for the Philippines.', 1 
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1216 bf the TCCP,,es'ame~ded,'is 
heresy fukther amendiid 
to read as"fol1ows: 
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"SEC. 1210. Disposition of Impofled Articles demaining on Vessel Aeer Time 
far U<&hg. - 'Imported 'arcicles remaining on board any vessel after the expiration 
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maybe unladen'by, customs ,authorities and'stored at the vessel's expense: 
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: "Unless prevented by causes beyond the f e d ' s  control, such as port 
'congestion, strikes, riots, or civil commotions, failu2e of vessel's gear, bad weather, 
. and SimiYar causes, 'articles so stored shall be enter2;d within FIFTEEN (15) DAYS, 
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which shall not be extendible, frbm the date of discharge of the last package from the 
vegsel, or ;aircraft;':and shall be, claimed within fifteen1 (15) days, which shall likewise 
'not be eu'endible from the .date of posting of the nod e to claim in conspicuous places 
in'the'Bureau of-Customs. If,not entered or not claimed, it shall.be disposed of in, 
accordance &th the provisions of this Code." 
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Section 10. - A new section to be known as SECTION 1401-A is hereby 
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Section 1401 ofthe TCCP, as amended, bhich shall read as follows: , 
"sEC. 1401-A. VALUATION mmRE: - '+HE CoMMIssIoNEi SHALL 
ENSURE, THAT .THERE SHALL BE A VALUATION ),LIBRARY, WHICH SHALL BE 
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KEPT'"UP~ TO ,DATE AND MAINTAINED USING THE BEST AVAILABLE 
TECHNOLOGY. THE VALUATION LIBRARY {HALL BE MADE "READILY 
AVAILABLE TO THE PUBLIC. 
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Section 11. '- Section 1,403 of ,the TCCP,. 4s ,amended, is hereby further 
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amended to read as follows: 
"SEC.' 1403.' Dufles of Qkcorns OBcer Tasked to &amine, 
Class@ and 
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Appra&f rmportetf ,Art&les. - The customs offher tasked to examine, classify, arid 
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apprafse imported &cles 
shall determine whet6ei the packages designated for, 
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examinatiok. and their contents are in accordance with the declaration in the entry, 
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' invoice, kind other' pertinent documents and shall make a return in such a manner to 
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' Indicaie whether the articles have been truly aha mirectly declared 'in the 'entry as 
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regard their quantity, measurement, weight, and tari classification and not imported 
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contrary to law. THE CUSTOMS OFFICER SHAL LIKEWISE CERTIFY UNDER 
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OATH IN THE RETURN THAT HE USED TH 
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VALUATION LIBRARY IN 
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CLASSIFYING AND APPRAISING THE IMPORT?)l 
ARTICLES, He shall ALSO 
submit a sample to the laboratory for analysis when L easible to do so and when such 
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analysis is necessary for the proper classification, a p p F l ,  and/or admission into the 
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Philippines of imported articles. 
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"Likewise, the customs officer shall determine the unit of quantity in which 
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usually' bought and'sold and appraise-the imported articles in accordance 
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('Failure on the part 'of the customs officer t!, comply with his duties shall 
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' Section 12. - &ion 
1801 of the' TCCP, 4s amended, is hereby further 
amended to read as follows: 
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"SEC. 1801. Abandonmen,t, Kinds and E&& 
of - An imported artic1e.k 
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deemed abandoned under any of the folldwing circudstances: 
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a. When the owner, importer, consignee 09 the imported article expressly 
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signifies ih writing to the Collector of Custqms his intention to abandon; 
B. When the owner, importer, conaignee, or ikterested party after due notice, 
fails to file an entry within thirty (30) daA. which'sliall not be extendible, 
e from the vessel or aircraft, or 
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from the date of discharge of the last 
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.having Bled such entry, faails to claim his Importation within ifteen (15) 
,days, ,which shall not likewise be extendi ,le, from the date of 'posting of 
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HEN THERE IS A WRITTEN 
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DENIAL OF OWNERSHIP FROM THE PbRSQN INDICATED ON THE 
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MANIFEST OR BILL OF LADING AS THE OWNER, IMPORTER, OR 
CONSIGNEE OF THE IMPORTED ARTIC E. i 
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“Any person who abandons an article or who ifails to claim his importation as 
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med to have renounced all his 
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interests 
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and property rights therein.” 
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Section 13; - Section 1802 of the TCCP, 
s amended, is hereby further , 
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ipso facto be deemed the property of the Government. ’ ALL ABANDONED 
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.ARTICLES SHA~L.BE’AUTOMATICALLY SUBJECT TO AUCTION AND’ SHALL IN 
.NO CASE 
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,BE SUBJECT’TO SE’%TLEMENT OR COMP/ROMISE. 
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“AN UPDATED LISTING OF ALL ABANDO ED SHIPMENTS SCHEDULED 
FOR AUCTION SHALL BE POSTED .ON THE ~FFICIAL WEBSITE OF THE 
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BUREAU OF CUSTOMS AND AT THE MAIN ENTRANCE OF CUSTOMS HOUSES. 
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“Nothing in this section shall be construed as ielieving the owner or importer 
from, any criminal liability which may arise from an4 violation of law committed in 
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connection with the importation of the abandoned article. 
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“Any official or ,employee of the Bureau of C stoms 01: of other .government 
agencies who, having knowledge of ;he existence of an abandoned article or having 
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,cbntrol ,or custody of such abandoned article, fails t report to the Collector within 
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twentyyfdur (24) hours from the time the article $s deemed abandoned shall be 
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pu$ished with the penalties prescribed in Paragraph lt I Section 
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 3604 of this Code (RA 
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7651, June 4, i993).” 
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aminded.to: read as follows: 
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Secion ’ 14. 
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S6crion 1901 of the ‘TCCP, amended, is hereby further 
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.;“SEC. 1901.. .Establi&ment and Supervision 
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,.of Warehouses. - When the 
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amended to read.as follows: 
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“ : ‘ ‘ S k  1902; Responsibility of Operators. 1- 
The operators of bonded 
warehouses in case of loss of the imported articled, stored shall be liable for the 
payment of &ties-and taxes due thereon. 
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of articles stored in ‘any customs warehouse, sheds, yands, or premises. 
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LEGITIMATE PURPOSES, .MAKE AVAILABLE TO THE PUBLIC AN INVENTORY 
OF’ALL ARTICLES~STORED THEREIN. 
GROUND ‘FOR’ THE’,REVOCATION 
A BONDED 
IS A MANDATORY 
WAREHOUSE.” 
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’ 16. - Section 1903 of the TCCP, 7s amende& is hereby hither 
amended to read :as- follows: 
’ ,  “SEC. I903. Bondad War@hou&tv. - Applickion for the establishment of 
bonded warehouses must be made in writing and file a 
~ with the Collector, describing 
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premises, the location, and capacity of the saqe, the burpose for which the 
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building is to, be used, AND' THE INDUSTRY TO !WHICH IT BELONGS. THE 
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,APPLICATION SHALL LIKEWISE BE ACCOMPAN 
DOCUMENTS INDICATING 
THE OWNERS HI^ 
AND THE FINANCIAL ' 
CAPACITY OF THE BONDED WAREHOUSE. 
VERIFIED COPIES OF 
'TJpon receipt of such 
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the' premises, with 
provided ' for. the 
DETERMINE 
TO VERIFY 
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.nuE T o .  ITS NOWCOMPLIANCE 4 T H  CUSTOMS mws m. 
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warehouse officers~ and orher employees thereof shal' be regular cuscoms employees 
who shall'. be appointed in accordance with the ,Civil Service Law, rples and 
regulations. 
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' "THE PAID-UP CAPITAL AND NET 
OF THE BONDED 
BY THE 
WAREHOUSE .SHALL BE SET AT AN AMO 
'COMMISSIONER' AS SUFFICIENT TO COVER 
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UNLIQUIDATED ENTRIES WHICH SBAL BE STOR IE D THEREIN AT ANY GIVEN 
TIME. OTHERWISE, THE APPLICATION SHALL YOT BE GRANTED, AND AN 


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ZONE AUTHORITY, THE sudc BAY 
METROPOLITAN 
2 ' AUTH'ORITY, AND OTHER FREEPORTS AND ECO$ONES." 
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Section"'l7. - A new 'section to be 
1903-A is hereby 
'as follows: 
inserted after Section 1903 of the TCCP, as 
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;"SI& 
1903-A. 
' REGULAR 
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THE COLLECTOR,. 
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REVIEW BY,THE DEPUTY COMMISSIONER FORhUDIT AND TRANSPARENCY. 
UPON PETITION b~ AN INTERESTED 
, CONDvCTEa BY THE 'D%JTY 
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~ MAY BE":MADE upoh THE INSTANCE 'OF T4E ~ E i i k o N i N G  PARTY IN 
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. COORDINATION WITH THE 'DEPUTY COMMISSI~NER. 
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-Section 18. - 'Section 1904 of the TCCP, Ifs amended, is .hereby further 
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, "SEC. 1904. Irrevocable Domestic Letter of Credit or Bank Guarantee'or 
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operator thereof of. the -premises, provided all 
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rhe~:requirements of the law and 
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GROUP :MAY ~ L I K E h S E  RECOMMEND T 
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DISCONTINUANCE OF THE BONDED 
8- COMPLIANCE WITH THE 
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Where the dutiable article 
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the 'risk and expense .of the operator and the 
warehousd shall have been made. Discontinuance of 
. upon official notice and approval thereof by the Colle 
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shall not be relinquished, nor 
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amended.to read as follows: 
discorhuance ofits use'authoized, until a careful edamination of the account of the 
warehouse shall'be effective 
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.Section 20. - Section 1906 of the TCCP, ps amended, is hereby further 
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"SEC. 1906. Entzy ofArtides for Warehousihg. - The entry of articles for 
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warehousing shall be in the required number of 
'shall be verified ,'as in, the entry of the articles 
' en~ry.shallbe~ac~epted 
for any article if from the 
the prescribed form, and 
No 'warehousing 
documents and/ or 
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' inforfiation 6uth articie, is imported contrary, to 
OFFICER 
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MAKING: THE ENTRY 'SRALL BE RESPONSIBLE 
', OR TRANSMITTING A COPY 
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.O.k T d :  SAMii TO THE DEPUTY COMMIs.IONER "FOR AUDIT AND 
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TRANSPARENCY." 
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Section 21; - Section 1907 of the TCCP, ab amended, is hereby further 
amended to read as follows: 
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“SEC. 1907. 
Withdrawal of Articles from bonded Warehouse. - Articles 
entered under irrevocable domestic letter of credit, or CASH bond may be withdrawn 
at any time for re- exportation; PROVIDED THAT A 
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ORDER TO IMPORT THE SUBJECT ARTICLE 
HAS BEEN CANCELLED; 
PROVIDED FURTHER THAT THE ARTICLES TO BE WITHDRAWN DO NOT 
AMOUNT TO MORE THAN FIFTY PERCENT (50%)/ OF THE TOTAL IiWENTORY 
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OF THE BONDED WAREHOUSE. 
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“The withdrawal .must be made ONLY B l  THE IMPORTER OF THE 
ARTICLES. BEING WITHDRAWN OR BY, A 
must ‘appear in writing upon, the face of the 
Section 22. - .Section ‘1908 of 
SENTATIVE whose authority 
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is hereby further 
amended to read as follows: 
“SEC, 1908. Limit to Period of Storage in Bod ed Warehouse. - Articles duly 
entered for warehousing may remain in bonded warehouses for a maximum period of 
THIRTY (30) DAYS from the time of RECEIPT OF T h E WAREHOUSE. Articles not 
withdrawn at the expiration of the prescribed period shall be DEEMED 
ABANDONED AND SUBJECT TO DISPOSITION Ir?J ACCORDANCE WITH THE 
PROVISIONS OF THIS CODE.” 
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Section 23. - A new section to be known ds SECTION 1908-A is hereby 
inserted after Section 1908 of the TCCP, as amende , which shall read as follows: 
“SEC. 1908-A. 
LIQUIDATION OF WA HOUSING ENTRIE-THE 
LIQUXDATXQN OF WAREHOUSING ENTRIES S ALL BE MADE NOT MORE 
THAN THREE (3) MONTHS FROM THE TIME OF RECEIPT OF THE 
~ I 
WAREHOUSE. 
“A DAILY RECORD OF ALL ENTRIES LIQ~IDATED SHALL BE POSTED 
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ON A CONSPICUOUS PLACE IN THE MAIN E 
RANCE OF THE CUSTOMS 
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REGISTERED LOCATORS OPERATING UNDER 
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.PHILIPPINE EC'ONOMIC.ZONE AUTHORITY, THE 
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THE CHARTERS. OF ' TKE 
SUBIC BAY METRO POL IT^ 
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HOUSE, STATING THE NAME b~ THE VESSEL OR t FIRCRAFT, THE PORT FROM 
WHICH SHE ARRIVED, THE DATE OF HER AR~IVAL, THE NAME OF THE 
I , M ~ o i i i R i ,  
THE SERIAL NUMBER 
Am DATE OF 'ENTRY. THE 
c o L i ~ c T & : . M u s i  ALSO KEEP A DAILY RE&RD 
OF ALL ADDITIONAL 
DUTIES,, 
, ,  'TAXES AND OTHER CHARGES, FOUND; UPON LIQUIDATION, AND- 
'NOPICE SHALL PROMPTLY BE SENT TO TI-IE,INT i
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PARTIES." 
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.' ' Section 24. .- Section 2001 of the TCCP, 's amended, is hereby funher 
ainended 
,, , to 
,. read as,follows: 
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'. " S E k  ,. 2001.. katablishment of Bond& Ma&;factilring Warehouses. ,- d l  
., , ., 
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akticles manufactured in whole or. in part of inipo $d materials, 'and intended for '. ' 
exportatioh without'being charged with duty, shall, n-order to be so manufactured :" 
and exported, he made and manufackred in manufa turing warehouses under such. 
,rules -and regulations as the Commissioner of Custbms with the approval of tfie 
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Secretary of Finance, shall prescribe: Provided, That the manufacturer of such articles 
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shall first file a satisfactory bond for the faithful odservance of all laws, rules and 
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regulations 
applicable 
thereto; 
PROVIDED 
FURTHER, 
BONDED 
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MNF'ACTURING WAREHOUSES SHALL LIKE 
SE BE SUBJECT TO THE 
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PROVISIONS UNDER TITLE V, PART 1 OF THIS CODE, AS AMENDED; 
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"SEC. 2002. Exemption fiom Duty - 
a. .1w( 
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b. Any imported materia1 used in the 
of such articles, and any 
up 'the same may, under 
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. package, covering; brand and 
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the, regulation: prescribed by the 
with.the apprival of the 
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',Secretary of Finance, 'be 
of duty into any 
bonded, manufacturing 
aforesaid regulations, 
accredited 
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' .  .bonded warehouse 
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apparatus 'to be used in the constructi ll n or repair of any bonded 
manufacturing warehouse: Provided, however, 
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That the materials 
warehouse shali 
a period of 
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transferred or conveyed into any bonded 
be used in the manufacture of articles for 
THIRTY ,(30) DAYS from date of such trbnsfer or conveyance into the 
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bonded.manufacturing warehouse,. which 
may for sufficient reasons 
. be further &ended for 'not more 
(30) DAYS by the 
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Commissioner. Materials not used 
of articles for 
:exportation :wiihin the presotibed 
corresponding 
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. duties: ,'Provided, further, That the operation of embroidery and apparel, 
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' '' arms. ahall cohtinue to be governed by Rep d 
, blic Act Numbered Thirty-one ' 
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hundred and thirty-seven." 
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' Section 26., - Section 2005 of the TCCP, 
amended, 'is hereby. further 
2 
amended to read as follows: 
'3 
" '"SEC.' 2005. ,Bonded Smelting 
The plants of manufachirers 
engaged ,inII. smelting, or refining, or' 
crude metals, may, upon the 
5 ,  ' filing.bf C&SH 
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bonds, be designated 
warehouses. Ores or crude 
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metals' may' be 'removed from the vessel or aircraft in which imported, or from a 
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bbnded 
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warehouse, into a bonded smelting warehous without the payment of duties 
8 
thereon, and there smelted or refined, or both, together with ores or crude metals of 
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' home~l6i:foreign' productions: @ro&fecf, 
That the 'CATH BOND SHALL BE IN a sum 
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eqgal in amount to ,the .regular duties which would lkave been payable on such ores 
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and.cmd&.metals'if entered'for consumption at the tilhe of their importation, and the 
severa1,charges against such bond shall be cancelled upon the exportation or delivery 
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to 'a.bo@led.manufacturing,warehouse established 
sectim twenty hundred and' 
to the quantity ofmetal 
metal contained in 
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such ores or crude metals, due allowance being made of the .smelter wastage as 
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ascertained from time to time by the Commissioner: rrovided, furher, Thrat the said 
18 , "metals "sd producib;le br -any portion thereof, may. be withdrawn fof RE- 
one 
. ,  hereof ,of a. 'quantity of the same kind of 
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producible-from the 
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smelting or refining, or 
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19. 
~ EXPORTATION.'UPON PROOF THAT'THE ORDE TO IMPORT THE S~JB~ECT. 
io ...M,ETA~S.  AS 'BEEN 'CANCELLED AND ' TH T 'THE MF~ALS 
' TO BE' 
21 
' WITHDWWNDO NOT 
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"SEC. 2503. Unhervaluation, Misclassification, 
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and Misdeclaration in Ently. - 
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12. 
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,imljorted'articles shall be so described and entered that the'dutles based on, the 
importer's descripri.on on thb face of the entry woul/l be less by ten percent (10%) 
than should be legally collected based on the.tariff cla sification, of when the dutiable 
weight, &easurembnt: oa'quantity 'of imported, axticle is foand upon examination to 
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exceed by ten percent (10%) or more than the 4 
ntered weight, measurement or 
than the difference between the full duty and thei i estimated duty based upon the 
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quantity, a surcharge shall be collected from the i porter in an amount of not less 
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declaration of the importer, nor more than twice o$ such difference: Provided, f i a t  
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an undervaluation, misdeclaration in weight, measu ement or quantity of more than 
thirty percent (30%) between the value, weight, meaburement or quantity declared in 
the entry, and the actual value, weight, quantity, o measurement shall constitute a 
prima facie evidence of fraud penalized under Sectiory 2530 AND 3602 of this Code: 
Provided, fir&eG That any misdeclared or undeclaryd imported article/ items found 
upon examination shall ipso facto be forfeited in avor of the Government to be 
disposed of pursuant to the provisions of this Code.” 
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Section 28.-Section 
2603 of the TCCP, 4s amended, is hereby further 
amended to read as follows: 
“SEC. 2603. Mode ofsale. -In the absence oflany special provision, subject to 
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the provisions of Section 2601 above provided, prope 
subject to sale by the customs 
authorities shall be sold at public auction within FIFFEEN (15) DAYS after ten (10) 
+ 
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2s: 
days notice of such sale shall have been PUdLISHED IN AT LEAST (2) 
NEWSPAPERS OF GENERAL CIRCULATION, PQSTED ON THE OFFICIAL 
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WEBSITE OF THE BUREAU OF CUSTOMS, AN 
conspicuously posted at the 
FRONT ENTRANCE OF THE CUSTOMS HOUSE.” 
Section 29. - Section 3601 of the TCCP, a$ amended, is hereby further 
amended to read as follows: 
“SEC. 3601. Unlawfil Imponation. - Any p rson who shall fraudulently 
import or bring into the Philippines, or assist in so doiTg, any article, contrary to law 
or rsodve, conwal, buy, sell, or in any way fkcilitate t e transportation, concealment 
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fifty thousand pesos; 
or sale of such article after importation, knowing \he same to have been imported 
contrary to law, shall be guilty of smuggling and shall be punished with: 
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1. A fine IN AN AMOUNT EQUAL TO THE A,PPRAISED 
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VALUE PLUS FIF" 
PERCENT THEREOF and imprisonment of h ot less than six months and one 
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day nor more than four years, if the apprais a d value, to be determined in the 
1 
manner prescribed under this Code, includi g duties and taxes, of the article 
unlawfully imported exceeds FIVE THOUSFD PESOS but does not exceed 
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2. A fine IN AN AMOUNT EQUAL TO THE AtPRAISED VALUE PLUS FIFTY 
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PERCENT THEREOF and imprisonment of Aot less than FOUR YEARS and 
one day nor more than eight years, if the app$aised value, to be determined in 
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the manner prescribed under this Code, induding duties and taxes, of the 
article unlawfully imported is more than FIFTY thousand pesos but does not 
exceed one hundred fifty thousand pesos; 
3. A FINE IN THE AMOUNT EQUAL TO THE APPRAISED VALUE PLUS 
FIFTY PERCENT THEREOF AND IMPRISOhMENT OF NOT LESS THAN 
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EIGHT YEARS AND ONE DAY NOR MOR!E THAN TWELVE YEARS, IF 
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THE APPRAISED VALUE, TO BE DETE, k MINED IN THE MANNER 
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PRESCRIBED UNDER THIS CODE, INCLUD NG DUTIES AND TAXES, OF 
THE ARTICLE UNLAWFULLY IMPORTED EXCEEDS ONE HUNDERED 
FIFTY THOUSAND PESOS BUT DOES NO, ir EXCEED TWO HUNDRED 
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FIFTY THOUSAND PESOS; 
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4. A FINE IN THE AMOUNT EQUAL TO TH L APPRAISED VALUE PLUS 
FIFTY PERCENT THEREOF AND IMPRISO ri 
,MENT OF NOT LESS THAN 
WELVE YEARS AND ONE DAY NOR 
THAN FIFTEEN YEARS, IF 
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Y 
THE APPRAISED VALUE, TO BE DETERMINED IN THE MANNER 
PRESCRIBED UNDER THIS CODE, INCLU ING DUTIES AND TAXES, OF 
THE ARTICLE UNLAWFULLY IMPORTED EXCEEDS TWO HUNDRED 
FIFTY THOUSAND PESOS BUT DOES $T 
EXCEED FIVE HUNDRED 
THOUSAND PESOS; 
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5. A FINE IN THE AMOUNT EQUAL TO &E 
APPRAISED VALUE PLUS 
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FIFTY PERCENT THEREOF AND IMPRIS~NMENT OF NOT LESS THAN 
mE APPuISED VALUE, TO BE DETihINED IN THE MANNER 
THE ARTICLE UNuwFuLLY ,,PORTE4 
EXCEEDS FIVE HUNDRED 
THOUSAND PESOS BUT DOES NOT E X C E E ~  
ONE MILLION PESOS; 
FIFTEEN YEARS AND ONE DAY NOR MOLE THAN TWENTY YEARS, IF 
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PRESCRIBED UNDER THIS CODE, INCLUqING DUTIES AND TAXES, OF 
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6. A FINE IN THE AMOUNT EQUAL TO TkE APPRAISED VALUE PLUS 
FIFTY PERCENT THEREOF AND LIFE’ IMPRISONMENT, IF THE 
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APPRAISED VALUE, TO BE 
DETER~INED IN THE 
MANNER 
PRESCRIBED UNDER THIS CODE, INCLUDING DUTIES AND TAXES, OF 
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THE ARTICLE UNLAWFULLY IMPORTED EXCEEDS ONE MILLION 
PESOS. 
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7. The penalty ofpnsion meyorTO RECLUSIOV TEMPORAL shall be imposed 
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when the crime of serious physical injuries sha i 1 have been committed and the 
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penalty of mclu&n pepetue to death shall 
imposed when the crime of 
homicide shall have been committed by reaqon or on the occasion of the 
unlawful importation. 
“In applying the above scale of penalties, if tge offender is an alien and the 
prescribsld penalty is not death, he shall be deported after serving the sentence 
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without further proceedings of deportation. If the odfender is a government official or 
employee, the penalty ,shall be the maximum as hereinabove prescribed and the 
offender shall suffer an additional penalty of perpdtual disqualification from public 
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office, to vote’and participate in any public election. j 
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“When, upon trial for violation of this sectiod, the defendant is shown to have 
had possession ‘of the article in question, posseskon shall be deemed sufficient 
evidence to authorize conviction unless the defendai t shall explain the possession to 
the satisfaction of the c&t: Provided, however, That payment of the fax due after 
apprehension shall not constitute a valid defence in any prosecution under this 
section.” 
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Section 30. -- Section 3603 of the TCCP, \as amended, is hereby further 
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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 tradidg with or within the Philippines 
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and any employee of the Bureau of Customs who, hapng cognizance of any fraud on 
the customs revenue, shall fail to report a11 informatlon relative thereto to the 
Collector as by law required, shall be punished by a fine of not LESS THAN ONE 
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HUNDRED THOUSAND PESOS BUT NOT MORE ;THAN ONE MILLION PESOS 
1 
AND IMPRISONMENT QF NOT LESS THAN EIGUT YEARS BUT NOT MORE 
THAN TWELVE YEARS. If the offender is an alien, h4 shall be deported after serving 
the senrence. If the offender is a public official or emphoyee, he shall suffer additional 
penalty of perpetual disqualiflcation to hold public o f-4 ;ce, to vote and to participate in 
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any election.” 
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Seatian 31. - Saotion 3604 of the TCCP, a amended, i s  hereby Punher 
amended to read as foIIows: 
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“SEC. 3604. Statutory Oflenses of O~cials 
end Employees. - Every official, 
agent or employee of the Bureau or of any other adency of the government chayged 
with the enforcement of the provisions of this Codeiwho is guilty of any delinquency 
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herein below indicated shall be punished with 4 fine of not LESS THAN ONE 
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HUNDRED THOUSAND PESOS BUT NOT  MOR^ THAN ONE MILLION PESOS 
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AND IMPRISONMENT OF NOT LESS THAN EIGHT YEARS BUT NOT MORE 
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THAN TWELVE YEARS and perpetual disqualificadon to hold pulhic office, to vote 
8 
‘and’,io participate in any public office election:, 
9 
(a) - 
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xxxxxy xxy 
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(j) - 
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to read as follows: 
14 
, 
Section 32. -- Section 3605 of the TCCP, as amebded, is hereby further amended, 
“SEG 3605. Concealment or Desmction of dvidence of Fraud. - Any person 
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who willfully conceals or destroys, any invoice, boot or paper relating to any article 
liable to duty after an inspection thereof has been demanded by the Collector of any 
collection district or at anytime conceals or destroys iny such invoice, book, or paper 
for the ‘purpose of suppressing any ‘evidence of frabd therein contained, shall be 
punished with a fine. of not LESS THAN ONE HUNdRED THOUSAND PESOS BUT 
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NOT MORE THAN ONE MILLION PESOS AND I~IPRISONMENT OF NOT LESS 
THAN EIGHT YEARS BUT NOT MORE THAN TWELVE YEARS.” 
Section 33. - Section 3606 of the TCCP, as amended, i s  hereby further amended 
to read as follows: 
i 
“SEC. 3606. A M n g  Seals. - Any person whb, without authority affixes or 
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attaches 8 cu8t~ms seal, Watsning, or mark or any sea{, fastening or mark purporting 
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to be a'customs seakfastening or mark to any vd&ei, vehicle on land, sea or air, 
2 
'warehouse, or package, shall be punished with q fine of not LESS THAN ONE' 
3 ~ -HUNDRED 
THOUSAND PESOS BUT NOT MORf THAN ONE MILLION PESOS 
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' AND TMPRISONMENT OF NOT LESS THAN E~GHT YEARS BUT NOT MORE 
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' THAN TWELVE YEARS. If the offender is an alien,Le shall be deported after serving^ 
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the sentence. I% the offehder is a- public offrcial or employee, he shall suffer an 
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additional penalty ofperpetual disqualification to AoId public office, to vote and to 
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seCtion,i4. SeparabilityClause. - Any portion $r provisions of this Act that may 
10 ' ' be declared unconstitutional or invalid shall not h?&e the effect of nullifying &her 
11 
-portions and provisions hereof as long as such rematding portion or provision can still 
12 
subsist and be given effect in their entirety. 
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Section. 35. '.Repealing Clause. - All other l{ws, decrees, executive orders, 
proclamations and administrative'regulations, or parti thereof consistent herewith'are 
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hereby repealed or modified accordingly. 
Section 36. Effectivity Clause. - This Act shall ta4e effect fifteen (15) days after its 
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Adopted. 
publication in at least two (2) national papers of gene$al circulation. 
24