SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First r?egular Session 
SENATE 
Senate Bill No. 
8 8 2 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
- ,~ --= -- =-
EXPLANATORY NOTE 
One of the major economic problems of the country is smuggling. The 
government is losing a huge amount of revenue because of illegal entry of 
imported goods and services in our local market. Moreover, this activity affects 
the other components of the economy including the rate of employment. 
This proposed "Anti-Smuggling Act" seeks to amend certain provisions of 
the Tariff and Customs Code to squarely address the problem on smuggling. 
Hopefully, this will serve as an instrument to arrest the said problem which, 
because of its extensive occurrence in the system, has already somehow 
become institutionalized. 
This measure was prepared and submitted by the Committees on Trade 
and Commerce, and Economic Affairs during the Thirteenth Congress but it was 
never enacted into law. 
Trusting in the noble intent of this measure, this 
representation is re-filing the same. 
Considering the foregoing, the early passage of this proposed measure is 
earnestly solicited. 
Senator 


, , 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
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'13 
,JlJL 17 P 3 :27 
SENATE 
Senate Bill No, 
8 8 2 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
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 House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
Shott Title. -
This Act shall be known as the "Anti-
Smuggling Act of 2013". 
SEC. 2. Section 601 of the Tariff and Customs Code of the Philippines 
(TCCP), as amended, is hereby further amended to read as follows: 
"Sec. 601. Chief Officials of the Bureau of Customs. - The 
Bureau of Customs shall have one 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) Intelligence 
and Enforcement Group; (d) Internal Administration Group; AND 
(E) AUDIT AND TRANSPARENCY GROUP, who shall 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 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. 3. Section 607 of the Tariff and Customs Code of the Philippines 
(TCCP), as amended, is hereby further amended to read as follows: 
1 


" 
l 
"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 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 [C]copies 
of such annual report [shall be furnished regularly] to the 
Department of Finance, Tariff Commission, NEDA, BANGKO 
SENTRAL NG PILIPINAS [Central Bank of the Philippines], Board 
of Investments, 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. 4. Section 609 of the Tariff and Customs Code of the Philippines 
(TCCP), as amended, is hereby further amended to read as follows: 
"Sec. 609. Commissioner to Furnish Copies of Collectors' 
Liquidated Duplicates. - The Commissioner shall regularly furnish 
the NEDA, the BANGKO SENTRAL NG PILIPINAS [Central Bank 
of the Philippines], the Tariff Commission, AND THE NATIONAL 
STATISTICS OFFICE (NSO), BOTH ELECTRONIC AND PAPER 
COPIES of each of all customs import I 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. 5. 
Section 709 of the lCCP, as amended, is hereby further 
amended to read as follows: 
"Sec. 709. Authority of the Collector to Remit Duties. - A 
Collector shall 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,OOO.OO), and he may 
dispense with the seizure of articles of less than FIVE THOUSAND 
PESOS (P5,OOO.00) in value except in cases of prohibited 
2 


importations of the habitual or the intentional violation of the tariff 
and customs laws." 
SEC. 6. A new part shall be inserted starting with SECTION 713, after 
Section 712 of the TCCP, as amended, which shall read as follows: 
"PART 
3. 
AUDIT, 
TRANSPARENCY 
AND 
ACCOUNTABILITY. 
"SECTION 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 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. 
"SECTION 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. 
"SECTION 715. 
ON THE BASES 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 DOUST 
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 
OF APPROPRIATE CRIMINAL CASES AGAINST THE ERRING 
PERSONNEL, AND TO THE COMMISSIONER THE IMPOSITION 
OF ADMINISTRATIVE SANCTIONS. 
"SECTION 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 
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, 
\ 
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 CONTEMPT. 
"SECTION 717. 
THE DEPUTY COMMISSIONER FOR 
AUDIT AND TRANSPARENCY SHALL SUBMIT AN ANNUAL 
REPORT TO THE COMMISSIONER, THE SECRETARY OF 
FINANCE, THE OFFICE OF THE PRESIDENT, AND THE 
CONGRESS, STATING THE RESULT OF ITS INSPECTIONS 
AND AUDITS. 
THE REPORT SHALL CONTAIN ALL THE 
NECESSARY DATA WHICH LED TO ITS RECOMMENDATIONS 
AND FINDINGS, AND SHALL BE MADE AVAILABLE TO THE 
PUBLIC THROUGH ELECTRONIC AND NON-ELECTRONIC 
MEANS, UNLESS NON-DISCLOSURE IS WARRANTED BY 
NATIONAL SECURITY." 
SEC. 7. A new section to be know as Section 1001-A is hereb inserted 
after Section 1001 of the TCCP, 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 TRANSMITIED TO 
THE BUREAU OF CUSTOMS AT LEAST SIX (6) HOURS PRIOR 
TO THE VESSEL'S ARRIVAL IN THE PORT OF ENTRY; 
PROVIDED, THAT ID THE VESSEL IS AN AIRCRAFT, THE 
MANIFEST SHALL BE TRANSMITIED TO THE BUREAU OF 
CUSTOMS AT LEAST ONE (1) HOUR PRIOR TO THE 
AIRCRAFT'S ARRIVAL IN THE PORT OF ENTRY." 
SEC. 8. 
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. 9. 
Section 1210 of the TCCP, as amended, is hereby further 
amended to read as follows: 
"Sec. 12'10. Disposition of Imported 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 the transshipment to another port, 
4 


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." 
SEC. 10. 
A new section to be known as Section 1401-A is hereby 
inserted after Section 1401 of the TCCP, 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. 11. 
Section 1403 of the TCCP, as amended, is hereby further 
amended to read as follows: 
"Sec. 1403. Duties of Customs Officer Tasked to Examine, 
Classify, 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 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 I 
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 Section 
3604 of this Code." 
5 


SEC. 12. Section 1801 of the TCCP, as amended, is hereby further 
amended to read as follows: 
"Sec. 1801. 
Abandonment; Kinds and Effects. -
An 
imported article is deemed abandoned under any of the following 
circumstances: 
a. 
When the owner, imported, 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 
extensible, 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 
A WRITTEN 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. 13. 
Section 1802 of the TCCP, 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. 
"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. 
SEC. 14. Section 1901 of the TCCP, 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 
6 


designate and establish INDUSTRY-SPECIFIC warehouses for use 
as a 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 Collectors, who shall impose such conditions as 
may be deemed necessary for the protection of the revenue and of 
the articles stored therein." 
SEC. 15. 
Section 1902 of the TCCF', 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 warehouse, 
sheds, yards, or premises. 
"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. 16. 
Section 1903 of the TCCP, 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 of which the building is 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, 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. The bonded warehouse officers and 
other employees thereof shall be regular customs employees who 
7 


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 EXTEND TO 
REGISTERED 
LOCATORS 
OPERATING 
UNDER 
THE 
CHARTERES 
OF 
THE 
PHILIPPINE 
ECONOMIC 
ZONE 
AUTHORITY, THE SUBIC BAY METROPOLITAN AUTHORITY 
AND OTHER FREEPORTS AND ECOZONES." 
SEC. 17. 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 
WAREHOUSE 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. 18. Section 1904 of the TCCP, as amended, is hereby further 
amended to read as follows: 
"Sec. 1904. Irrevocable Domestic Letter of Credit or 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, bank guarantee, or CASH bond equivalent to the amount of 
such duties, taxes and other charges conditioned upon the 
withdrawal of articles within the period prescribed in section 
nineteen hundred and eight of this Code and for the repayment of 
any duties, taxes and other charges to which the articles shall be 
them subject and upon compliance with all legal requirements 
regarding their importation." 
SEC. 19. Section 1905 of the TCCP, 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 
8 


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. x x 
x" 
SEC. 20. 
Section 1906 of the TCCP, 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 
I or information such article is imported contrary to any law. THE 
CUSTOMS 
OFFICER 
MAKING 
THE 
ENTRY 
SHALL 
BE 
RESPONSIBLE FOR TRANSMITTING A COpy OF THE SAME 
TO 
THE 
DEPUTY 
COMMISSIONER 
FOR 
AUDIT 
AND 
TRANSPARENCY." 
SEC. 21. 
Section 1907 of the TCCP, 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 
CASH bond may be withdrawn at any time for re-exportation; 
PROVIDED, THAT PROOF IS SHOWN THAT THE ORDER TO 
IMPORT THE SUBJECT ARTICLES HAS BEEN CANCELLED; 
PROVIDED 
FURTHER, 
THAT 
THE 
ARTICLES 
TO 
BE 
WITHDRAWN DO NOT 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. 22. 
Section 1908 of the TCCP, as amended, is hereby further 
amended to read as fonows: 
"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 THIRTY (30) DAYS 
from the time of RECEIPT 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." 
9 


SEC. 23. A new section to be known as Section 1908-A is hereby inserter 
after Section 1908 of the TCCP, as amended, which shall read as follows: 
"SEC. 
1908-A. 
LlQUIDA TlON 
OF 
WAREHOUSING 
ENTRIES. - THE LIQUIDATION OF WAREHOUSING ENTRIES 
SHALL BE MADE NOT MORE THAN THREE (3) MONTHS FROM 
THE TIME OF RECEIPT OF THE WAREHOUSE. 
"A DAILY RECORD OF ALL ENTRIES LIQUIDATED SHALL 
BE POSTED ON 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 AND THE DATE OF 
ENTRY. 
THE COLLECTOR MUST ALSO KEEP A DAILY 
RECORD OF ALL ADDITIONAL DUTIES, TAXES AND OTHER 
CHARGES FOUND UPON LIQUIDATION, AND NOTICE SHALL 
PROMPTLY BE SENT TO THE INTERESTED PARTIES." 
SEC. 24. 
Section 2001 of the TCCP, as amended, is hereby further 
amended to read as follows: 
"Sec. 2001. 
Establishment of Bonded Manufacturing 
Warehouses. - All articles manufactured in whole or in part of 
imported materials, and intended for exportation without being 
charged with duty, shall, in order to be so manufactured and 
exported, be made an manufactured in manufacturing warehouses 
under such rules and regulations as the Commissioner of Customs 
with the approval of the Secretary of Finance, shall prescribe; 
Provided, That the manufacturer of such articles shall first file a 
satisfactory bond for the faithful observance of all laws, rules and 
regulations applicable thereto; 
PROVIDED FURTHER, THAT 
BONDED MANUFACTURING WAREHOUSES SHALL LIKEWISE 
BE SUBJECT TO THE PROVISIONS UNDER TITLE V, APRT 1 
OF THIS CODE, AS AMENDED; PROVIDED FINALLY, THAT 
THESE REQUIREMENTS SHALL EXTEND TO REGISTERED 
LOCATORS OPERATING UNDER THE CHARTERS OF THE 
PHILIPPINE ECONOMIC ZONE AUTHORITY, THE SUBIC BAY 
METROPOLITAN AUTHORITY, AND OTHER FREEPORTS AND 
ECOZONES." 
SEC. 25. 
Section 2002 of the TCCP, as amended, is hereby further 
amended to read as follows: 
"Sec. 2002. Exemption from Duty. -
a. xxx 
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 
10 


= 
bonded warehouse into any bonded manufacturing 
warehouse, or to duly accredited sub-contractors of 
manufacturers who shall process the same into 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 the 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. x x XU 
SEC. 26. 
Section 2005 of the TCCP, as amended, is hereby further 
amended to read as follows: 
"Sec. 2005. Bonded Smelting Warehouses. - The plants of 
manufacturers engaged in smelting or refining, or both, of ores and 
crude metals, may, upon the filing of CASH bonds, be designated 
as bonded smelting warehouses. Ores or crude metals may be 
removed from the vessel or aircraft in which imported, or from a 
bonded wareholJse, into a bonded smelting warehouse without the 
payment of duties thereon, and there smelted or refined, or both, 
together with ores or crude metals of home or foreign productions; 
Provided, That the CASH BOND SHALL BE IN a sum equal in 
amount to the regular duties which would have been payable on 
such ores and crude metals if entered for consumption at the time 
of their importation, and the several charges against such bond 
shall be cancelled upon the exportation or delivery to a bonded 
manufacturing warehouse established under Section twenty 
hundred and one hereof of a quantity of the same kind of metal 
equal to the quantity of metal producible from the smelting or 
refining, or both, of the dutiable metal contained in such ores or 
crude metals, due allowance being made of the smelter wastage as 
ascertained from time to time by the Commissioner; 
Provided 
further, That the said metals so producible or any portion thereof, 
may be withdrawn for RE-EXPORTATION UPON PROOF THAT 
THE ORDER TO IMPORT THE SUBJECT METALS HAS BEEN 
CANCELLED AND THAT THE METALS TO BE WITHDRAWN DO 
NOT AMOUNT TO MORE THAN FIFTY PERCENT (50%) OF THE 
TOTAL 
INVENTORY 
OF 
THE 
BONDED 
SMELTING 
WAREHOUSE; Provided further, That on the arrival of the ores or 
crude metals at such establishments they shall be sampled and 
assayed according to commercial methods under the supervision of 
proper government officials; 
Provided further, T;hat all labor 
performed and services rendered pursuant to this Section shall be 
under the supervision of the proper customs official and at the 
expenses of the manufacturer; 
Provided further, That all 
regulations for carrying out the provisions of this Section shall be 
prescribed by the Commissioner with the approval of the 
department head; Provided FURTHER, That the several charges 
against the bond of any smelting warehouse established under the 
11 


provisions of this Section may be cancelled upon the exportation or 
transfer to a bonded manufacturing warehouse from any other 
bonded smelting warehouse established under this Section of a 
quantity of the same kind of metal, in excess of that covered by 
open bonds, equal to the amount of metal producible from the 
smelting or refining, or both, of the dutiable metal contained in the 
imported ores or crude metals, due allowance being made of the 
smelter wastage as ascertained from time to time by the 
Commissioner with the approval of the department head; 
PROVIDE:D 
FINALL Y, 
THAT 
BONDED 
SMELTING 
WAREHOUSES SHALL LIKEWISE BE SUBJECT TO THE 
PROVISIONS UNDER TITLE V, PART I OF THIS CODE, AS 
AMENDED." 
SEC. 27. 
Section 2503 of the TCCP, as amended, is hereby further 
amended to read as follows: 
"Sec. 
2503. 
Undervaluation, 
Misclassification, 
and 
Misdeclaration in Entry. - When the dutiable value of imported 
articled shall be so 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, of 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, 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 
Sections 2530 AND 3602 of this Code; Provided further, That any 
misdeclared or undeclared imported article I items found upon 
examination shall ipso facto be forfeited in favor of the Government 
to be disposed of pursuant to the provisions of this Code." 
SEC. 28. 
Section 2603 of the TCCP, as amended, is hereby further 
amended to read as follows: 
"Sec. 2603. Mode of Sale. - In the absence of any special 
provision, subject to the provisions of Section 2601 above provided, 
property subject to sale by the customs authorities shall be sold at 
public auction within FIFTEEN (15) DAYS after ten (10) days notice 
of such sale shall have been PUBLISHED IN AT LEAST TWO (2) 
NEWSPAPERS OF GENERAL CIRCULATION, POSTED ON THE 
OFFICIAL WEBSITE OF THE BUREAU OF CUSTOMS, AND 
conspicuously posted at the FRONT ENTRANCE OF THE 
CUSTOMS HOUSE." 
12 


SEC. 29. 
Section 3601 of the TCCP, as amended, is hereby further 
amended to read as follows: 
"Sec. 3601. Unlawful Imporiation. - Any person who shall 
fraudulently import or bring to the Philippines, or assist in so doing, 
any article, contrary to law or receive, conceal, buy, sell, or in any 
way facilitate the transportation, concealment or sale of such article 
after importation, knowing the same to have been imported contrary 
to law, shall be guilty of smuggling and shall be punished with: 
1. 
A fine IN AN AMOUNT EQUAL TO THE 
APPRAISED VALUE PLUS IFTY PERCENT 
(50%) THEREOF and imprisonment of not less 
than six (6) months and one (1) day nor more than 
four (4) 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 (P50,OOO.00); 
2. 
A fine IN AN AMOUNT EQUAL TO THE 
APPRAISED VALUE PLUS FIFTY PERCENT 
(50%) THEREOF and imprisonment of not less 
than FOUR (4) YEARSE and one (1) day nor 
more than eight (8) years, if the appraised value, 
to be determined in the manner prescribed under 
this Code, including duties and taxes, of the 
articles unlawfully imported is more than FIFTY 
Thousand Pesos (P50,000.00) but does not 
exceed One Hundred Fifty Thousand Pesos 
(P150,OOO.00); 
3. 
A FINE IN THE AMOUNT EQUAL TO THE 
APPRAISED VALUE PLUS FIFTY PERCENT 
(50%) THEREOF AND IMPRISONMENT OF NOT 
LESS THAN EIGHT (8) YEARS AND ONE (1) 
DAY NOR MORE THAN TWELVE (12) 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 (P150,OOO.00) BUT DOES 
NOT 
EXCEED 
TWO 
HUNDRED 
FIFTY 
THOUSAND PESOS (P250,000.00); 
4. 
A FINE IN THE AMOUNT EQUAL TO THE 
APPRAISED VALUE PLUS FIFTY PERCENT 
(50%) THEREOF AND IMPRISONMENT OF NOT 
LESS THAN TWELVE (12) YEARS AND ONE (1) 
DAY NOR MORE THAN FIFTEEN (15) 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.00) BUT DOES 
13 


= 
NOT EXCEED FIVE HUNDRED THOUSAND 
PESOS (P500,000.00); 
5. 
A FINE IN THE AMOUNT EQUAL TO THE 
APPRAISED VALUE PLUS FIFTY PERCENT 
(50%) THEREOF AND IMPRISONMENT OF NOT 
LESS THAN FIFTEEN (15) YEARS AND ONE (1) 
DAY NOR MORE THAN TWENTY (20) YEARS, 
IF 
THE 
APPRAISED 
VALUE, 
TO 
BE 
DETERMINED IN THE MANNER PRESCRIBED 
UNDER THIS CODE, INCLUDING DUTIES AND 
TAXES, 
OF 
THE 
ARTICLE 
UNLAVVFULL Y 
IMPORTED 
EXCEEDS 
FIVE 
HUNDRED 
THOUSAND PESOS (P500,000.00) BUT DOES 
NOT 
EXCEED 
ONE 
MILLION 
PESOS 
(P1,000,000.00); 
6. 
A FINE IN THE AMOUNT EQUAL TO THE 
APPRAISED VALUE PLUS FIFTY PERCENT 
(50%) THEREOF AND LIFE IMPRISONMENT, 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 
MILLION 
PESOS 
(P1,000,000.00); 
7. 
The penalty of prision mayor TO RECLUSION 
TEMPORAL shall be imposed when the crime of 
serious 
physical 
injuries 
shall 
have 
been 
committed and the penalty of reclusion perpetua 
[to deathl 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 of deportation. 
If the offender is a 
govemment official or employee, the penalty shall be the 
maximum as hereinabove prescribed and the offender shall 
suffer an additional penalty of perpetual disqualification from 
public office, to vote and participate in any public election. 
!Ix X x." 
SEC. 30. 
Section 3603 of the TCCP, 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 
14 


= 
(P100,000.00) BUT NOT MORE THAN ONE MILLION PESOS 
(Pi ,000,000.00) AND IMPRISONMENT OF NOT LESS THAN 
EIGHT (8) YEARES BUT NOT MORE THAN TWELVE (12) 
YEARES. 
If the offender is an alien, he shall be deported after 
serving the sentence. 
If the offender is a public official or 
employee, 
he shall suffer additional penalty of perpetual 
disqualification to hold public office, to vote and to participate in any 
election." 
SEC. 31. 
Section 3604 of the TCCP, as amended, is hereby further 
amended to read as follows: 
"Sec. 3604. Statutory Offenses of Officials and Employees. 
_ Every official, agent or employee of the Bureau or of any other 
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 (Pi00,000.00) BUT NOT 
MORE THAN ONE MILLION PESOS (Pi ,000,000.00) AND 
IMPRISONMENT OF NOT LESS THAN EIGHT (8) YEARS BUT 
NOT MORE THAN TWELVE (12) 
YEARS and perpetual 
disqualification to hold public office, to vote and to partiCipate in any 
public office election: 
(a) x x x." 
SEC. 32. 
Section 3605 of the TCCP, 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 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 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 (P100,000.00) 
BUT NOT MORE THAN ONE MILLION PESOS (Pi ,000,000.00) 
AND IMPRISONMENT OF NOT LESS THAN EIGHT (8) YEARS 
BUT NOT MORE THAN TWELVE (12) YEARS." 
SEC. 33. 
Section 3606 of the TCCP, 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 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 (Pi0o,000.00) BUT 
NOT MORE THAN ONE MILLION PESOS (Pi,oOO,oOo.Oo) AND 
IMPRISONMENT OF NOT LESS THAN EIGHT (8) YEARS BUT 
NOT MORE THAN TWELVE (12) YEARS. If the offender is an 
alien, he shall be deported after serving the sentence. 'If the 
15 


-----------
'I 
'I..,' , 
offender is a public official or employee, he shall suffer an 
additional penalty of perpetual disqualification to hold public office, 
to vote and to participate in any election." 
SEC. 34. Separability Clause. Any portion or provision of this Act that 
may be declared unconstitutional or invalid shall not have the effect of nullifying 
other portions and provisions hereof as long as such remaining portion or 
provision can still subsist and be given effect in their entirety. 
SEC. 35. Repealing Clause. All other laws, decrees, executive orders. 
proclamations and administrative regulations, or parts thereof consistent herewith 
are hereby repealed or modified accordingly. 
SEC. 36. Effec;tivty. This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national papers of general circulation. 
Approved, 
16