13TH CONGRESS OF THE 
\ 
, 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
?. 
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INTRODUCED BY HON. MANUEL B. VELAR SR. 
EXPLANATORY NOTE 
This measure seeks to introduce particular reforms in the Bureau of Customs by 
modernizing its operations to elevate the same to the level of modern and efficient customs 
administration of other countries. 
It proposes to. amend fifty six (56) sections of the Tariff and Customs Code of the 
Philippines to legally enable the Bureau to accept documents in electronic form, conduct 
automated processing of electronic documents, and electronically transmit acknowledgment 
receipts, approval or response messages. 
To ensure data integrity and to prevent the commission of fraud on customs' revenues 
against the government, it provides for the following safety nets: 
(a) compulsory requirement, under pain of fine and imprisonment, for the importers, 
exporters and customs brokers to keep their records in their principal place of business for a 
period of five (5) years to enable the bureau to post-audit the same; and 
(b) compulsory requirement for the importers, exporters and custom brokers to allow 
authorized personnel of the bureau to have free access to their records at all times for post-audit 
and investigations. 
For more efficient customs administration, the bill introduces the establishment of a 
special fund which will be utilized as incentive bonus for customs personnel and purchase of 
necessary equipment and facilities. 
Finally, this bill proposes to limit the authority to make import entries and export 
declarations to duly-licensed customs brokers, customs brokerage corporations, partnership or 
associations, so as to improve the service by placing such activities in the hands of professionals 
who are possessed of the necessary technical training of the said purpose. 
In view of the foregoing, early approval of the bill is earnestly requested. 
MANUEL B. ILLAR, m. 
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, ’84 
JUN 30 Pll 2 2  
~~~~W~~ 
8.v : 
. td 
13TH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
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S. No. 
$06 
INTRODUCED BY HON. MANUEL B. VILLAR JR. 
AN ACT INTRODUCING REFORMS IN THE OPERATIONS OF THE BUREAU OF 
CUSTOMS AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
nssem bled: 
SECTION 1. Subparagraphs (b), (d), (i), a), (m) and (4) of Section 105, Title I, Book I of the 
Tariff and Customs Code of the Philippines, as amended, are hereby fkrther amended to read as 
follows: 
“SEC. 105. 
Conditionally-Free Importations. - 
LX 
X 
X 
“(b) 
Equipment for use in the salvage of vessels or aircrafts, not available locally, upon 
identification and the giving of a bond in an amount equal to [one and one-half times] the 
ascertained duties, taxes and other charges thereon, conditioned for the exportation thereof or 
payment of the corresponding duties, taxes and other charges within six (6) months from the date 
of acceptance of the import entry: Provided, That the Collector of Customs may extend the time 
for exportation or payment of duties, taxes and other charges for a term not exceeding six (6) 
months from the expiration of the original period; 
“X 
X 
X 
“(4 
Articles brought into the Philippines for repair, processing or reconditioning to be re- 
exported upon completion of the repair, processing or reconditioning: Provided, That the 
Collector of Customs shall require the giving of a bond in an amount equal to [one and one-half 
times] the ascertained duties, taxes and other charges thereon, conditioned for the exportation 
thereof or payment of the corresponding duties, taxes and other charges within six (6) months 
from the date of acceptance of the import entry; 
“X 
X 
X 
“(i) 
Articles used exclusively for public entertainment, and for display in public 
expositions, or for exhibition or competition for prizes, and devices for projecting pictures and 
parts and appurtenances thereof, upon identification, examination, and appraisal and the giving of 


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a bond in an amount equal to [one and one-half times] the ascertained duties, taxes and other 
charges thereon, conditioned for exportation thereof or payment of the corresponding duties, 
taxes and other charges within six (6) months from the date of acceptance of the import entry: 
Provided, That the Collector of Customs may extend the time for exportation or payment of 
duties, taxes and other charges for a term not exceeding six (6) months fiom the expiration of the 
original period; and technical and scientific films when imported by technical, cultural and 
scientific institutions, and not to be exhibited for profit: Provided, further, That if any of the said 
films is exhibited for profit, the proceeds therefrom shall be subject to confiscation, in addition to 
the penalty provided under Section 3610 as amended, of this Code; 
“ci) 
Articles brought by foreign film producers directly and exclusively used for making or 
recording motion picture films on location in the Philippines, upon their identification, 
examination and appraisal and the giving of a bond in an amount equal to [one and one-half 
times] the ascertained duties, taxes and other charges thereon, conditioned for exportation thereof 
or payment of the corresponding duties, taxes and other charges within six (6) months from the 
date of acceptance of the import entry, unless extended by the Collector of Customs for another 
six (6) months; photographic and cinematographic films, undeveloped, exposed outside the 
Philippines by resident Filipino citizens or by producing companies of Philippine registry where 
the principal actors and artists employed for the production are Filipinos, upon affidavit by the 
importer and identification that such exposed films are the same films previously exported from 
the Philippines. 
‘X 
X 
X 
“(m) 
Containers, holders and other similar receptacles of any material including kraft paper 
bags for locally manufactured cement for export, including corrugated boxes for bananas, 
mangoes, pineapples and other fresh fruits for export, except other containers made of paper, 
paperboard and textile fabrics, which are of such character as to be readily identifiable andor 
reusable for shipment or transportation of goods shall be delivered to the importer thereof upon 
identification, examination and appraisal and the giving of a bond in an amount equal to [one and 
one-half times] the ascertained duties, taxes and other charges within six (6) months from the 
date of acceptance of the import entry; 
‘(X 
X 
X 
c‘(4) x 
X 
x; 
“Commercial samples, except those that are not readily and easily identifiable (e.g., precious and 
semi-precious stones, cut or uncut, and jewelry set with precious or semi-precious stones), the 
value of any single importation of which does not exceed Ten thousand pesos (P10,OOO.OO) upon 
the giving of a bond in an amount equal to [twice] the ascertained duties, taxes and other charges 
thereon, conditioned for the exportation of said samples within six (6) months from the date of 


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acceptance of the import entry or in default thereof, the payment of the corresponding duties, 
taxes and other charges. x 
X 
X.” 
SEC. 2. 
Philippines, as amended, is hereby further amended to read as follows: 
“SEC. 205. 
Entry, or Withdrawal from Warehouse, for Consumption. - Imported articles 
shall be deemed ‘entered’ in the Philippines for consumption when the specified entry forms is 
properly filed OR LODGED IN THE COMPUTER and accepted[, together with any related 
documents required by the provisions of this Code and/or regulations to be filed with such form] 
at the time of entry[,] at the port or station by the customs official designated to receive OR 
Section 205 of Part 1, Title II, Book I of the Tariff and Customs Code of the 
LODGE such entry paper[s] and any duties, taxes, fees and/or other lawful charges required to 
be paid at the time of making such entry have been paid or secured to be paid with the customs 
official designated OR BANKS AUTHORIZED BY THE COMMISSIONER OF 
CUSTOMS to receive such monies: Provided, That the articles have previously arrived within 
the limits of the port of entry. 
“Imported articles shall be deemed ‘withdrawn’ from warehouse in the Philippines for 
consumption when the specified form is properly filed OR LODGED IN THE COMPUTER 
and accepted[, together with any related documents required by any provisions of this Code 
andlor regulations to be filed with such form] at the time of withdrawal[,] by the customs official 
designated to receive OR ACCEPT the withdrawal entry and any duties, taxes, fees and/or other 
lawful charges required to be paid at the time of withdrawal have been deposited with the 
customs official designated OR BANKS AUTHORIZED BY THE COMMISSIONER OF 
CUSTOMS to receive such payment. 
“THE ENTRY AND WITHDRAWAL FORMS TO BE SPECIFIED BY THE 
COMMISSIONER 
OF 
CUSTOMS 
MAY 
BE 
FILED 
IN 
WRITING 
OR 
ELECTRONICALLY AND SHALL CONTAIN ALL INFORMATION AND DETAILS 
REQUIRED FOR THE PROCESSING OF SUCH ENTRY OR WITHDRAWAL. THE 
DATE OR TIME OF ENTRY SHALL BE BASED ON THE TIME OF FILING OF THE 
FORMS.” 
SEC. 3. 
New sections to be known as Section 607, Section 608, Section 608-A, Section 608- 
B and Section 609 are hereby inserted in Title I, Part 1, Book II of the Tariff and Customs Code 
of the Philippines, as amended, to read as follows: 
“SEC. 607. 
POWER OF THE COMMISSIONER TO OPERATE AND MAINTAIN 
COMPUTER SYSTEMS IN THE BUREAU OF CUSTOMS. - THE COMMISSIONER OF 
CUSTOMS SHALL OPERATE AND MAINTAIN COMPUTER SYSTEMS AND 
NETWORKS FOR RECEIPTS OF DOCUMENTS IN ELECTRONIC FORM, FOR 
AUTOMATED PROCESSING 
OF ELECTRONIC DOCUMENTS, AND 
FOR 


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TRANSMISSION OF ACKNOWLEDGMENT RECEIPTS AND APPROVAL OR 
RESPONSE MESSAGES. 
“THE FORMAT, CONTENTS AND 
MODE OF TRANSMISSION OF THE 
ELECTRONIC DOCUMENTS AND MESSAGES TO OR FROM THE COMPUTER 
SYSTEMS 
AND 
NETWORKS 
SHALL 
BE 
AS 
PRESCRIBED 
BY 
THE 
COMMISSIONER. 
“SEC. 608. 
AUTHORITY TO USE CUSTOMS COMPUTER SYSTEM. - NO PERSON 
SHALL TRANSMIT TO, OR RECEIVE INFORMATION FROM, A CUSTOMS 
COMPUTER 
SYSTEM 
UNLESS 
AUTHORIZED/ACCREDITED 
BY 
THE 
COMMISSIONER OF CUSTOMS. FOR THIS PURPOSE, THE INTENDED USER OF 
THE SYSTEM SHALL APPLY FOR REGISTRATION AND/OR ACCREDITATION IN 
WRITING AND SHALL COMPLY WITH SUCH REQUIREMENTS AS MAY BE 
PRESCRIBED BY THE COMMISSIONER. 
“THE COMMISSIONER SHALL DECIDE 
ON 
SUCH APPLICATION FOR 
REGISTRATION/ACCREDITATION WITHIN FIFTEEN (15) WORKING DAYS 
FROM RECEIPT THEREOF AND SHALL GIVE NOTICE OF HIS DECISION IN 
WR$TING TO THE APPLICANT. IF THE DECISION IS UNFAVORABLE, THE 
APPLICANT MAY, WITHIN THIRTY (30) WORKING DAYS FROM RECEIPT OF 
NOTICE THEREOF, APPEAL THE SAME TO THE SECRETARY OF FINANCE. 
“SEC, 608-A. 
ISSUANCE OF A UNIQUE IDENTIFIER TO A PERSON AUTHORIZED 
TO USE CUSTOMS COMPUTER SYSTEM. - A PERSON AUTHORIZED TO USE THE 
CUSTOMS COMPUTER SYSTEM SHALL BE ASSIGNED A UNIQUE IDENTIFIER 
TO BE PRESCRIBED BY THE COMMISSIONER OF CUSTOMS AND SHALL 
EFFECT AND USE SAFEGUARD DEVICES REQUIRED FOR SAFEKEEPING 
THEREOF. 
ANY ELECTRONIC MESSAGE TRANSMITTED TO A CUSTOMS 
COMPUTER SYSTEM THROUGH THE USE OF SUCH UNIQUE IDENTIFIER, WHEN 
AUTHENTICATED BY THE BUREAU OF CUSTOMS SHALL BE DEEMED ISSUED 
BY SUCH AUTHORIZED/REGISTERED PERSON, THE UNIQUE IDENTIFIER 
BEING CONSIDERED AS HIS SIGNATURE. 
“THE COMMISSIONER OF CUSTOMS SHALL PRESCRIBE THE RULES AND 
REGULATIONS RELATIVE TO THE USE AND SECURITY OF THE UNIQUE 
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IDENTIFIER. 
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“SEC. 608-B. 
CANCELLATION OF THE AUTHORIZATION TO USE CUSTOMS 
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COMPUTER SYSTEM. - WHEN THE COMMISSIONER BECOMES SATISFIED THAT 
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AN AUTHORIZED/REGISTERED USER OF THE CUSTOMS COMPUTER SYSTEM 
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HAS FAILED TO COMPLY WITH, OR VIOLATED THE CONDITIONS REGARDING 
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THE USE THEREOF, OR HAS BEEN CONVICTED OF ANY OFFENSE RELATIVE 


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TO THE IMPROPER ACCESS TO OR INTERFERENCE WITH THE CUSTOMS 
COMPUTER SYSTEM, HE MAY CANCEL THE AUTHORIZATION GRANTED TO 
THE SAID AUTHORIZED/REGISTERED USER AND SHALL SEND NOTICE OF 
SUCH CANCELLATION TO THAT PERSON, SETTING OUT THE REASONS 
THEREFOR. 
“ANY AUTHORIZED/REGISTERED USER WHO IS DISSATISFIED WITH THE 
DECISION OF THE COMMISSIONER UNDER THIS SECTION MAY, WITHIN 
THIRTY (30) WORKING DAYS FROM RECEIPT OF NOTICE THEREOF, APPEAL 
THE SAME TO THE SECRETARY OF FINANCE. 
“SEC. 609. 
PRESERVATION 
OF 
THE 
RECORD 
OF 
ELECTRONICALLY 
TRANSMITTED ENTRY. - WHERE AN ENTRY HAS BEEN MADE BY MEANS OF 
TRANSMITTING AN ELECTRONIC MESSAGE TO A CUSTOMS COMPUTER 
SYSTEM IN SUCH FORM PRESCRIBED BY THE COMMISSIONER, THE BUREAU 
OF CUSTOMS SHALL RETAIN A RECORD OF ALL SUCH TRANSMISSIONS 
RECEIVED FROM OR SENT TO A REGISTERED/AUTHORIZED USER OF THE 
COMPUTER SYSTEM FOR A PERIOD OF FIVE (5) YEARS FROM THE DATE OF 
RECEIPT OF TRANSMISSION. 
“A COMPUTER PRINTOUT, CERTIFIED BY OR ON BEHALF OF THE 
COMMISSIONER AS A TRUE COPY OF THE RECORD RETAINED BY THE 
BUREAU PURSUANT TO THIS SECTION, SHALL BE DEEMED THE ELECTRONIC 
MESSAGE RECEIVED FROM OR SENT TO A REGISTERE;D/AUTHORIZED USER.” 
SEC. 4. 
Sections 607, 608, 609, 704, 707, 710, 712, 906, 907, 908, 909, 1003, 1004, 1005, 
1006, 1007, 1008, 1012, 1016, 1017, 1019, 1021, 1022, 1102, 1105, 1106, 1110, 1111, 1112, 
1301, 1303, 1304, 1305, 1306, 1307, 1313, 1405, 1501, 1502, 1504, 1601, 1602, 1906, 1907, 
2001,2003,2004, 2101, 2102,2103, 2201,2504,3301, 3302, 3303 and 3406 of Book II of the 
Tariff and Customs Code of the Philippines, as amended, are hereby further amended to read as 
follows: 
“SEC. [607] 610. 
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 (0 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 
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preceding year. Copies of such annual report shall be finmished regularly to the Department of 


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Finance, Tariff Commission, NEDA, [Central Bank of the Philippines] BANGKO SENTRAL 
NG PILIPINAS, DEPARTMENT OF TRADE AND INDUSTRY, Board of Investments, 
Department of Budget AND MANAGEMENT, and other economic agencies of the government, 
on or before [December] JANUARY 30, of each year. SAID REPORT MAY ALSO BE 
MADE AVAILABLE TO ANY PERSON OR INSTITUTION AUTHORIZED TO HAVE 
ACCESS TO THE COMPUTERIZED DATABASE SYSTEM. 
fFor 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. [608] 611. 
Commissioner to Make Rules and Regulations. - The Commissioner shall, 
subject to the approval of the Secretary of Finance, promulgate all rules and regulations 
necessary to enforce the provisions of this Code. He shall cause the preparation and publication 
of a customs manual IN PAPER OR ELECTRONIC FORM covering up-to-date rules and 
regulations and decisions of the Bureau of Customs. The manual shall be published and made 
available to the public at least once every quarter within the first month after the end of every 
quarter. The Secretary of Finance andor Commissioner of Customs shall furnish the [Central 
Bank] BANGKO SENTRAL NG PILIPINAS, Board of Investments, the NEDA and the Tariff 
Commission with at least three (3) copies each of every department order, administrative order, 
memorandum circulars and such rules and regulations which are promulgated from time to time 
for the purpose of implementing the provisions of this Code. 
“SEC. [609] 612. 
Commissioner to Furnish Copies of Collector’s Liquidated Duplicates. - 
The Commissioner shall regularly furnish the NEDA, the [Central Bank of the Philippines,] 
BANGKO SENTRAL NG PILIPINAS AND the Tariff Commission a copy 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 THE CUSTOMS COMPUTERIZED 
DATABASE ON IMPORT ENTRIES and the right to copy all the customs liquidated import 
entries and other documents appended thereto as finally filed in the Commission on Audit. 
“SEC. 704. 
Seal of Collector of Customs. - In the office of the Collector of a collection 
district there shall be a seal of such design as the Commissioner shall prescribe, with the 
approval of the Secretary of Finance with which shall be sealed all documents and records IN 
PAPER OR IN ELECTRONIC FORM requiring authentication in such office. 
“SEC. 707. 
Succession of Deputy Collector to Position of Acting Collector. - In the absence 
or disability of a Collector at any port or in case of a vacancy in his office, the temporary 
discharge of his duties shall devolve upon the deputy collector of the port. Where no deputy 
collector is available, an official to serve in such contingency may be designated in writing by the 
Collector from his own force. The Collector making such designation shall report the same 
without delay to the Commissioner and the Chairman, Commission on Audit, forwarding to them 
the signature IN PAPER OR IN ELECTRONIC FORM of the person so designated. 


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“SEC, 710. 
Records to be Kept by Customs OfJiciaZ. - District collectors, deputy collectors, 
and other customs officials acting in such capacities are required to keep true, correct and 
permanent records in PAPER OR ELECTRONIC FORM of their official transactions, to 
submit the same to the inspection of authorized officials at all times, and to turn over all records 
and official papers to their successors or other authorized officials. 
“SEC. 712. 
Reports of Collector to Commissioner, - A Collector shall immediately make 
report to the Commissioner concerning prospective or newly begun litigation in his district 
touching matters relating to the customs service; and he shall, in [such form and detail] 
WRITING OR IN ELECTRONIC FORM AND IN SUCH FORMAT AND DETAIL as 
shall be required by the Commissioner make regular monthly reports of all transactions in his 
port and district. 
“SEC. 906. 
Requirement of Manifest in Coastwise Trade. - Manifests IN PAPER OR 
ELECTRONIC FORM shall be required for cargo and passengers transported from one place 
or port in the Philippines to another only when one or both of such places is a port of entry. 
“SEC. 907. 
Manifest Required Upon Departure from Port ofEntry. - Prior to departure from 
a port of entry, the master of a vessel licensed for the coastwise trade shall make out [and 
subscribe duplicate] A manifest[s] IN PAPER OR ELECTRONIC FORM of the whole of the 
cargo and all of the passengers taken on board such vessels, specifying in the cargo manifests the 
marks and numbers of packages, the port of destination and names of the consignees, together 
with such further information as may be required and in the passenger manifests the name, sex, 
age, residence, port of embarkation, and destination of all passengers, together with such Mher 
information as may be required. He shall deliver OR ELECTRONICALLY TRANSMIT such 
manifests to the Collector of Customs or other customs officials duly authorized[, before whom 
he shall swear to the best of his knowledge and belief, in respect to the cargo manifests], 
SHOWING that the goods therein described, if foreign, were imported legally and that the 
duties, taxes and other charges thereon have been paid or secured to be paid, and with respect to 
the passenger manifests, that the information therein contained is true and correct as to all 
passengers taken on board. Thereupon, the said Collector of Customs or customs official, shall 
[certify the same on the manifests, the original of which he shall return] SIGNIFY to the master 
[with] a permit specifying thereon, generally, the landing on board such vessel and authorizing 
him to proceed to his port of destination [retaining the duplicates]. 
“THE CONTENTS OF THE MANIFESTS SHALL BE DEEMED TO HAVE BEEN 
MADE UNDER PENALTIES OF FALSIFICATION OR PERJURY. 
“SEC. 908. 
Manfests Required Prior to Unlading at Port of Entry. - Upon arrival at a port 
of entry of a vessel engaged in the coastwise trade and prior to the unlading of any part of the 
cargo, the master shall deliver OR ELECTRONICALLY TRANSMIT to the Collector or other 
proper customs official complete manifests IN PAPER OR ELECTRONIC FORM of all the 


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cargo and passengers brought into said port, together with the clearance manifests of cargo and 
passengers for said port granted at any port or ports of entry from which said vessel may have 
cleared during the voyage. 
“SEC. 909. 
Departure of Vessel Upon Detailed Manifest. - The owner, agents or consignees 
of vessels are required to present OR ELECTRONICALLY TRANSMIT the proper detailed 
manifest IN PAPER OR ELECTRONIC FORM before departure of the vessel: Provided, 
however, That the Commissioner of Customs may by regulation permit a vessel to depart 
coastwise from a port of entry upon the filing OR TRANSMISSION of a general manifest IN 
PAPER OR ELECTRONIC FORM by the master thereof. 
“SEC. 1003. 
Quarantine CertiJicate for Incoming Vessel. - Entry of a vessel from a foreign 
port or place outside of the Philippines shall not be permitted until it has obtained a quarantine 
certificate [issued by] FROM the Bureau of Quarantine, AND PRESENTED BY THE 
MASTER OR TRANSMITTED ELECTRONICALLY BY SAID BUREAU TO THE 
CUSTOMS COLLECTOR OR CUSTOMS OFFICIAL CONCERNED. 
“SEC. 1004. 
Documents to be Produced by Master Upon Entry of Vessel. - For the purpose 
of making entry of a vessel engaged in foreign trade, the master thereof shall present OR 
ELECTRONICALLY TRANSMIT the following documents IN PAPER OR ELECTRONIC 
FORM, [duly certified by him] to the customs boarding officials: 
“[a] 
endorsement IN PAPER OR ELECTRONIC FORM of the boarding officials; 
[b. 
officials as to the correctness of the copy, shall be returned to the master;] 
“[c] 
“[d] 
“[e] 
“[fl 
“[g] 
customs officials in charge of the vessel]; 
“[h] 
immigration laws in force in the Philippines; 
“[i] 
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“THE CONTENTS OF THE ELECTRONIC TRANSMITTAL SHALL BE DEEMED TO 
HAVE BEEN MADE UNDER THE PENALTIES OF FALSIFICATION OR PERJURY, 
“SEC. 1005. 
Manifest Required of Vessel from Foreign Port. - Every vessel from a foreign 
port must have on BOARD a complete manifest IN PAPER OR ELECTRONIC FORM of all 
A.The [original] manifest of all cargo destined for the port, to be returned with the 
Three copies of the same manifest, one of which, upon certification by the boarding 
B. [A copy of the] Cargo storage plan; 
C. [Two copies of] [s]Store list; 
D. [One copy ofJ [plpassenger list; 
E. [One copy of the] [c]Crew list; 
F. [The original of all] [t]Through cargo manifests[, for deposit, while in port, with 
G.A passenger manifest of all aliens, in conformity with the requirements of the 
H. [One copy of the original duplicate of] [b]Bills of lading fully accomplished; and 
I. The shipping articles and register of the vessel of Philippine registry. 
her cargo. 


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“All of the cargo intended to be landed at a port in the Philippines must be described in separate 
manifests IN PAPER OR ELECTRONIC FORM from each port of call therein. [Each] 
SUCH manifest shall include the port of departure and the port of delivery with the marks, 
numbers, quantity and description of the packages and the names of the consignees thereof. 
Every vessel from a foreign port must have on board complete manifests of passengers and their 
baggage, in the prescribed PAPER OR ELECTRONIC form, setting forth their destination and 
all particulars required by the immigration laws, and every such vessel shall have prepared for 
presentation to the proper customs official upon arrival in ports of the Philippines a complete list 
IN PAPER OR ELECTRONIC FORM of all sea stores then on board. If the vessel does not 
carry cargo or passengers, the manifests must show that no cargo or passenger, as the case may 
be, is carried from the port of departure to the port of destination in the Philippines. 
“x 
X 
X 
“SEC. 1006. 
Translation of Manifest. - The cargo manifest IN PAPER OR 
ELECTRONIC FORM and each copy thereof shall be accompanied by a translation into the 
official language of the Philippines, if originally written in another language. 
“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] ELECTRONICALLY TRANSMIT to the Chairman, Commission on Audit, 
[Manila] QUEZON CITY, a copy of the cargo manifests properly INDORSED IN PAPER 
ELECTRONIC FORM by the boarding officer, and the master shall immediately present OR 
SEND to the Collector the original copy of [the] SUCH cargo manifests [properly indoors by] 
WITH PROPER ENDORSEMENT OF 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. 1008. 
Transit Cargo. - When transit cargo from a foreign port or other local ports is 
forwarded from the port of importation, separate manifests, in triplicate, shall be presented OR 
TRANSMITTED by each carrier. IF IN ELECTRONIC FORM, FURTHER COPIES MAY 
BE MADE AS AND WHEN NEEDED. 
“SEC. 1012. 
Record of Arrival and Entry of Vessels. - A record IN PAPER OR 
ELECTRONIC FORM shall be made and kept open to public inspection in every customhouse 
of the dates of arrival and entry of all vessels. 
“SEC. 1016. 
Entrance of Vessel Through Necessity. - When a vessel from a foreign port is 
compelled by stress of weather or other necessity to put into any other port than that of her 
destination, the master within twenty-four hours after her arrival, shall make protest [under oath] 
IN PAPER OR IN ELECTRONIC FORM setting forth the causes or circumstances of such 
necessity. This protest, if not made before the Collector, must be produced to him, and a copy 
thereof lodged with him. 


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“Within the same time, the master shall make report IN PAPER OR IN ELECTRONIC 
FORM to the Collector if any part of the cargo was unladen from necessity or lost by casualty 
before arrival[, and such fact should be made to appear by sufficient proof to the Collector who 
shall give his approval thereto and the unlading shall be deemed to have been lawfully effected]. 
WHEN THE COLLECTOR GIVES HIS APPROVAL THERETO ON SUFFICIENT 
PROOF, THE UNLADING SHALL BE DEEMED TO HAVE BEEN LAWFULLY 
EFFECTED. 
“THE CONTENTS OF THE PROTEST AND REPORT TO THE COLLECTOR SHALL 
BE DEEMED TO HAVE BEEN MADE UNDER PENALTIES OF FALSIFICATION OR 
PERJURY. 
“SEC. 1017. 
Unlading of Vessel in Port from Necessity. - If the situation is such as to 
require the unlading of the vessel pending sojourn in port, the Collector, shall, upon sufficient 
proof of the necessity, grant a permit therefor IN PAPER OR IN ELECTRONIC FORM, and 
the articles shall be unladen and stored under the supervision of the customs authorities. 
“At the request of the master of the vessel or of the owner thereof, the [c]Collector may grant 
permission IN PAPER OR ELECTRONIC FORM to enter and pay the duties, taxes and other 
charges on, and dispose of, such part of the cargo as may be of perishable nature or as may be 
necessary to defray the expenses attending the vessel. 
“Upon departure, the cargo, or a residue thereof, may be reladen on board the vessel, and the 
vessel may proceed with the same to her destination, subject only to the charge for storing and 
safekeeping of the articles and the fees for entrance and clearance. 
“No port charges shall be collected on vessels entering through stress of weather or other causes 
above described. 
“SEC. 1019. 
Clearance of Vesselfor Foreign Port. - Before a clearance shall be granted to 
any vessel bound to a foreign port, the master, or the agent thereof, shall present IN PAPER OR 
IN ELECTRONIC FORM to the Collector the following [properly authenticated] documents: 
X 
X 
X. 
Gb a. 
“b . 
the customs official as to the correctness of the copy, shall be returned to the master]. 
[Three copies ofl [t]The manifest of export cargo[, one of which, upon certification by 
[Two copies ofl [t]The passenger list, showing alien and other passengers. 
4 6  C. 
“d. 
X 
X 
X. 
X 
X 
X. 
( 6  e. 
“f. 
X 
X 
X. 
“SEC. 1021. 
Manifest of Export Cargo to be Delivered to Chairman, Commission on Audit. 
- The master shall, prior to departure, deliver or mail to the Chairman, Commission on Audit, 
[Manila] QUEZON CITY, the returned copy IN PAPER OR IN ELECTRONIC FORM of 
the manifest of export cargo. 


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“THE PRESENTATION SHALL BE DEEMED A MANIFESTATION THAT ALL 
DOCUMENTS WERE DULY ISSUED UNDER PENALTIES OF FALSIFICATION OR 
PERJURY. 
“SEC. 1022. 
[Oath] STATEMENT of Master of Departing Vessel. - The master of such 
departing vessel shall [state under oath to the effect] MANIFEST THE FOLLOWING IN 
PAPER OR IN ELECTRONIC FORM TO THE COLLECTOR 
X 
X 
X. 
& <  a. 
“b. 
Chairman, Commission on Audit a true copy of the outgoing cargo manifest. 
That he has [mailed] ELECTRONICALLY TRANSMITTED or delivered to the 
X 
X 
X. 
<< C. 
“d. 
X 
X 
X. 
“THE CONTENTS OF THE STATEMENT SHALL BE DEEMED TO HAVE BEEN 
MADE UNDER PENALTIES OF FALSIFICATION OR PERJURY. 
“SEC. 1102. 
Advance Notice ofdrrival. - (a) Non-scheduled Arrivals. - Before an aircraft 
comes into any area in the Philippines from any place outside thereof, a timely notice IN PAPER 
OR IN ELECTRONIC FORM of the intended flight shall be [furnished] MADE to the 
Collector or other customs officer in charge at or nearest the intended place of first landing in 
such area, and to the quarantine and immigration officers in charge at or nearest such place of 
landing. If dependable facilities for giving notice are not available before departure, any radio 
equipment of the place shall be used if this will result in the giving of adequate and timely notice 
during its approach, otherwise a landing shall be made at a place where the necessary facilities do 
exist before coming into any area in the Philippines. If, upon landing in any area, the 
government officers have not arrived, the pilot-in-command shall hold the aircraft and any 
baggage and article thereon intact and keep the passengers and crew members in a segregated 
place until the inspecting officers arrive.” 
“(b) 
X 
X 
X. 
“SEC. 1 105. 
Documents Required in Making Entry. - 
For the purpose of making entry, there shall be presented OR ELECTRONICALLY 
TRANSMITTED to the customs boarding officer [four copies] a general declaration IN PAPER 
OR IN ELECTRONIC FORM which shall contain the following data, unless any of such data 
is otherwise presented on a separate official form: 
“1. 
X 
X 
x; 
“2. 
x 
X 
x; 
“3 * 
X 
X 
x; 
“4. 
X 
X 
x; 
6G a. 
“5. 
X 
X 
x; 
“6. 
X 
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x; 


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“7. 
Cargo manifest showing information as to airway bill number, the number of packages 
related to each airway bill number, nature of goods, destination, and gross weight[, together with 
a copy of each airway bill securely attached thereto]; and 
“8. 
X 
X 
X. 
“b. 
The general declaration shall be written OR MANIFESTED in English and [duly] 
signed IN PAPER OR ELECTRONIC FORM by the pilot-in-command or operator of the 
aircraft, or the authorized agent. The Health Section thereon, however, shall be signed only by 
the pilot-in-command or when necessary, by a crew member when the general declaration itself 
has been signed by a non-crew member. If the aircraft does not carry cargo or passengers, such 
facts must be shown in the manifests. 
Cargo manifest shall in no case be changed or altered after entry of the aircraft, except 
by means of an amendment by the pilot-in-command or authorized agent thereof[, under oath, 
and attached to the original manifest]: Provided, That after the invoice and/or entry covering an 
importation have been received and recorded in the office of the appraiser, no amendment shall 
be allowed except when it is obvious that a clerical error or any other discrepancy has been 
committed without any fraudulent intent in the preparation of the manifest, discovery of which 
could not have been made until after examination of the importation has been completed. 
“THE CONTENTS OF THE AMENDMENT SHALL BE DEEMED TO HAVE BEEN 
MADE UNDER PENALTIES OF FALSIFICATION OR PERJURY. 
“SEC. 1106. 
Manifest for Commission on Audit. - The pilot-in-command or authorized 
agent of an aircraft, upon arrival from a foreign port, shall deliver or [mail] TRANSMIT to the 
Chairman, Commission on Audit, a copy of the general declaration properly indorsed IN PAPER 
OR ELECTRONIC FORM by the customs Boarding Officer. 
“SEC. 11 10. 
Manifest for Transit Cargo. - When transit cargo from a foreign port for other 
local ports is forwarded from the port of importation, separate manifest[, in triplicate,] IN 
PAPER OR ELECTRONIC FORM shall be presented[,] IN TRIPLICATE OR MORE 
NUMBER OF COPIES AS WHEN NEEDED, OR ELECTRONICALLY TRANSMITTED 
by each carrier. 
“SEC. 1 1 1 1. 
< b  C. 
Clearance of Aircraft for Foreign Port. - 
Any aircraft bound to a foreign port shall, before departure, clear IN PAPER OR 
ELECTRONIC FORM at an airport of entry or at the same place where such aircraft has been 
authorized to make its landing by the Commissioner. 
“b . 
Before clearance shall be granted to an aircraft bound to a foreign port, there shall be 
presented OR TRANSMITTED to the Collector or to the customs officer detailed at the place 
of departure [four copies 09 a general declaration signed IN PAPER OR ELECTRONIC 
FORM by the pilot-in-command or authorized agent of an aircraft which shall contain the 
following data: 
( 6  a. 


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“1. 
X 
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x; 
“2. 
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x; 
“3. 
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“4. 
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“5. 
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“6. 
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x; 
“7. 
Export cargo manifest showing information as to airway bill number, the number of 
packages related to each airway bill number, nature of goods, destination, and gross weight[, 
together with a copy of each airway bill securely attached thereto]; and 
“8. 
X 
X 
X. 
“SEC. 11 12. 
[Oath] STATEMENT of Person in Charge of Departing Aircraft. - The pilot- 
in-command or authorized agent of such departing aircraft shall also state [under oath] to the 
effect that: 
X 
x 
. x. 
C C  a. 
“b. 
copy of the outward general declaration. 
He has [mailed] TRANSMITTED or delivered to the Commission on Audit a true 
X 
X 
X. 
(4 C. 
“d. 
X 
X 
X. 
“A record shall be made and kept open to public inspection in every customhouse at an airport of 
entry the dates of arrival and entry of all aircraft. 
“THE CONTENTS OF THIS STATEMENT SHALL BE DEEMED TO HAVE BEEN 
MADE UNDER PENALTIES OF FALSIFICATION OR PERJURY. 
“SEC. 1301. 
Persons Authorized to Make Import Entry. - Imported articles must be entered 
in the customhouse at the port of entry within thirty (30) days, which shall not be extendible, 
from the date of discharge of the last package from the vessel or aircraft either (a) by the 
importer, being holder of the bill of lading; AND (b) by a duly licensed customs broker acting 
under authority from a holder of the bill [or (c) by a person duly empowered to act as agent or 
attorney-in-fact for each holder] : Provided, That where the entry is filed by a party other than the 
importer, said importer shall himself be required to declare under oath and under the penalties of 
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falsification or perjury that the declaration and statements contained in the entry are true and 
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correct: Provided, further, That such statements under oath shall constitute prima facie evidence 
of knowledge and consent of the importer of violation against applicable provisions of this Code 
when the importation is found to be unlawful (Republic Act No. 65 11, June 4, 1993). 
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“THE AUTHORITY TO MAKE OR FILE THE FORMAL ENTRY OR THE EXPORT 
DBCLARATION IN PAPER OR ELECTRONIC FORM WITH THE BUREAU OF 
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CUSTOMS SHALL BE LIMITED TO SAID IMPORTERS AND DULY-LICENSED 
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CUSTOMS BROKERS. 


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“SEC. 1303. 
Entry of Article in Part for Consumption and in Part for Warehousing. - 
Import entries or articles covered by one bill of lading IN PAPER OR ELECTRONIC FORM 
may be made simultaneously for both consumption and warehousing. Where an intent to export 
the articles is shown by the bill of lading and invoice, the whole or a part of a bill of lading (not 
less that one package) may be entered for warehousing and immediate exportation. Articles 
received at my port from another port in the Philippines on any entry for immediate 
transportation may be entered at the port of delivery either for consumption or warehousing. 
“SEC. 1304. 
Declaration of the Import Entry. - Except in case of informal entry, no entry of 
imported article shall be effected until there shall have been submitted OR TRANSMITTED IN 
PAPER OR ELECTRONIC FORM to the Collector a [written] declaration [under penalties of 
falsification or perjury, in such form] as shall be prescribed by the Commissioner, containing 
statements in substance as follows: 
“X 
X 
X. 
“SEC. 1305. 
By Whom to be Signed. - The declaration shall be signed IN PAPER OR 
ELECTRONIC FORM[, under penalties of falsification or perjury,] by the importer, consignee 
or holder of the bill, by or for whom the entry is effected if such person is an individual, or in 
case of a corporation, firm or association, by its manager, or by a licensed customs broker duly 
authorized to act for either of them. 
“THE CONTENTS OF THE DECLARATION SHALL BE DEEMED TO HAVE BEEN 
MADE UNDER PENALTIES OF FALSIFICATION OR PERJURY. 
“SEC. 1306. 
Forms and Contents of Import Entry. - Import entries shall be in the required 
number of copies [in such form] as prescribed by regulations TO BE ISSUED BY THE 
COMMISSIONER OF CUSTOMS. [They] IF IN PAPER FORM, THEY shall be signed by 
the person making the entry of the articles, and shall contain the names of the importing vessel or 
aircraft, port of departure and date of arrival, the number and marks of packages, or the quantity, 
if in bulk, the nature and correct commodity CLASSIFICATION CODE OR NUMBER AND 
description of the articles contained therein and its value as set forth in proper invoice [to be 
presented in duplicate with the entry]. IF IN ELECTRONIC FORM, THE ENTRIES 
SHALL BE TRANSMITTED WITH THE UNIQUE IDENTIFIER OF THE PERSON 
MAKING THE ENTRY, CONTAINING THE INFORMATION AND IN THE FORMAT 
PRESCRIBED BY THE COMMISSIONER OF CUSTOMS. 
“SEC. 1307. 
Description of Articles. - The description of the articles in the import entry 
must be in sufficient detail to enable the articles to be identified both for tariff classification and 
statistical purposes, and if specifically classified in this Code, in the tariff description of terms of 
the headings or subheadings of this Code and in the currency of the invoice; and the quantity and 
values of each of the several classes of articles shall be separately declared IN PAPER OR 


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ELECTRONIC FORM according to their respective headings or subheadings and the totals of 
each heading or subheading shall be duly shown. 
“SEC. 13 13. 
“a. As to classification. - When an article imported or intended to be imported is not specifically 
classified in this Code, the interested party, importer or foreign exporter may submit to the Tariff 
Commission a sample together with a fill description of its component materials and uses, and 
request it in [writing] PAPER OR ELECTRONIC FORM to indicate the heading under which 
the article is or shall be dutiable, and the Tariff Commission shall comply with such requests 
within thirty (30) days from receipt thereof it is satisfied that the application is made in good 
faith, in which case classification of the article in question upon the particular importation 
involved shall be made according to the heading indicated by the Tariff Commission: Provided, 
however, That such rulings of the Tariff Commission on commodity classification, shall be 
binding upon the Bureau of Customs, unless the Secretary shall rule otherwise. 
“b. 
As to Value. - Upon [written] application IN PAPER OR ELECTRONIC FORM of 
owner or his agent, the Collector shall furnish any importer within [thirty] FIFTEEN (15) days 
from receipt thereof the latest information in his possession as to the dutiable value of the articles 
to be entered at his port, after arrival or upon satisfactory evidence that they have been exported 
and are enroute to the Philippines: Provided, That the information shall be given only if the 
Collector is satisfied, after questioning the importer and examining all pertinent papers presented 
to him, such as invoices, contracts of sale or purchase, orders and other commercial documents 
that the importer is acting in good faith and is unable to obtain proper information as to the 
dutiable value of the articles on the date of exportation due to unusual conditions: And, 
Provided, further, That the information so given is in no sense an appraisal or binding upon the 
Collector’s action on appraisal. IN LIEU OF THE APPLICATION OF THE OWNER OR 
HIS AGENT, HE MAY BE GRANTED BY THE COLLECTOR ACCESS TO THE 
VALUATION DATABASE, AND OTHER SUCH FACILITIES TO PERFORM QUERY 
FUNCTIONS. 
“SEC. 1405. 
Proceedings and Report of Appraisers. - Appraisers shall, by all reasonable 
ways and means, ascertain, estimate and determine the value or price of the articles as required 
by law, any invoice or affidavit thereto or statement of cost, or of cost of production to the 
contrary notwithstanding, and after revising and correcting the report of the examiners as they 
may judge proper, shall report in writing on the face of the entry OR IN ELECTRONIC FORM 
IN THE SPACE PROVIDED ON THE SINGLE ADMINISTRATIVE DOCUMENT 
(SAD) SCREEN FOR SAID REPORT the value so determined, irrespective of whether such 
value is equal, higher or lower that the invoice and/or entered value of the articles. 
“Appraisers shall describe all articles on the face of the entry OR ON THE SAD SCREEN in 
tariff and such terms as will enable the collector to pass upon the appraisal and classification of 
Information Furnished on Classzjkation and Value. - 


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the same, which appraisal and classification shall be subject to his approval or modification, and 
shall note thereon the measurements and quantities, and any disagreement with the declaration. 
“SEC. 1501. 
Delivery of Articles to Holder of Bill of Lading. - A Collector who makes a 
delivery of a shipment, upon the surrender of the bill of lading IN PAPER OR ELECTRONIC 
FORM, to a person who by the terms thereof appears to be the consignee or lawful holder of the 
bill shall not be liable on account of any defect in the bill or irregularity in its negotiation, unless 
he has notice of the same. 
“SEC. 1502. 
Delivery of Articles Without Production of Bill of Lading. - No Collector shall 
deliver imported articles to any person without the surrender by such person of the bill of lading 
covering said article, except on [written] order IN PAPER OR ELECTRONIC FORM of the 
carrier or agent of the importing vessel or aircraft, in which case neither the Government nor the 
Collector shall be held liable for any damages arising from wrongful delivery of the articles: 
Provided, however, That where delivery of articles is made against such [written] order of the 
carrier or agent of the importing vessel or aircraft, the Collector may, for customs purposes, 
require the production of an exact copy of the bill of lading therefor. 
“SEC. 1504. 
Delivery Upon Order of Importer. - An importer of record may authorize 
delivery to another person by writing upon the face of the warehouse withdrawal entry OR 
INDICATE ON THE SAD SCREEN his orders to that effect. Such authority to deliver the 
article entered for warehousing in accordance with section nineteen hundred and four shall not 
relieve the importer and his cash deposit, irrevocable domestic letter of credit, bank guarantee or 
bond from liability for the payment of the duties, taxes and other charges due on the said article 
unless the person to whom delivery was authorized to be made assumes such liability by 
complying with the requirements of above mentioned section. 
“SEC. 1601. 
Liquidation and Record of Entries. - If the Collector shall approve the returns 
of the appraiser and the report of the weights, gauge or quantity, the liquidation shall be made on 
the face of the entry OR ON THE SAD SCREEN showing the particulars thereof, initialed by 
the customs assessors, approved by the chief customs assessor, and recorded in the record of 
liquidations. THE INITIAL, APPROVAL AND RECORDING MAY BE DONE IN PAPER 
OR ELECTRONIC FORM. 
“X 
X 
X. 
“SEC. 1602. 
Tentative Liquidation. - If to determine the exact amount due under the law in 
whole or in part some future action is required, the liquidation shall be deemed to be tentative as 
to the item or items affected and shall to that extent be subject to future and final readjustment 
and settlement within a period of six (6) months from date of tentative liquidation. The entry in 
such case IF IN PAPER FORM shall be stamped ‘Tentative liquidation.’ IF THE ENTRY IS 
IN ELECTRONIC FORM, SAID STAMP SHALL BE INDICATED ON THE SAD 
SCREEN. 


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“SEC. 1906. 
Entry ofArticZesfor 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 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 law. 
“SEC. 1907. 
Withdrawal of Articles from Bonded Warehouse. - Articles entered under 
irrevocable domestic letter of credit, 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 OR IN ELECTRONIC 
FORM upon the face of the withdrawal entry. 
“SEC. 200 1. 
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 and 
manufactured in bonded 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 BY PAPER OR BY 
ELECTRONIC MEANS a satisfactory bond for the faithful observance of all laws, rules and 
regulations applicable thereto. 
“SEC. 2003. 
Procedure for Withdrawal. - Articles received into such bonded manufacturing 
warehouse or articles manufactured therein may be withdrawn or removed therefrom for direct 
shipment and for immediate exportation in bond under the supervision of the proper customs 
officer, who shall IN PAPER OR ELECTRONIC FORM certify to such shipment and 
exportation, or lading for immediate exportation as the case may be, describing the articles by 
their mark or otherwise, the quantity, the date of exportation, in the name of the vessel or aircraft: 
Provided, That the waste and by-products incident to the process of manufacture in said bonded 
warehouse may be withdrawn for domestic consumption upon payment of duty equal to the duty 
which would be assessed and collected pursuant to law as if such waste or by-products were 
imported from a foreign country: Provided, further, That all waste materials may be disposed 
under government supervision. All labor performed and services rendered under these provisions 
shall be under the supervision of a proper customs officer and at the expense of the manufacturer. 
“SEC. 2004. 
VeriJication by the Commissioner. - A carehl account shall be kept by the 
Collector of all articles delivered by him to any bonded manufacturing warehouse, and a sworn 
monthly return IN PAPER OR ELECTRONIC FORM, verified by the customs officer in 
charge, shall be made by the manufacturer containing a detailed statement of all imported articles 
used by him in the manufacture of the exported articles. 
“X 
X 
X 


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“SEC. 210 1. 
Entry for Immediate Transportation. - Articles entered for constructive 
warehousing and immediate transportation under transit manifest to other ports of the Philippines 
without appraisement may be transported under irrevocable domestic letter of credit, bank 
guarantee or bond EFFECTED BY PAPER OR ELECTRONIC MEANS, upon proper 
examination and consigned to the Collector at the port of destination, who will allow entry to be 
made at his port by the consignee. 
“X 
X 
x. 
. 
“SEC. 2102. 
Bonding of Carrier Transporting Articles Under the Preceding Section. - A 
carrier engaged in conveying imported articles under the preceding section from a port of 
importation to other ports shall give BY PAPER OR ELECTRONIC MEANS A security in the 
nature of a general transportation bond, in a sum not less than Ten thousand pesos (P10,OOO.OO) 
conditioned that the carrier shall transport and deliver without delay, and in accordance with law 
and regulations, to the Collector at the port of destination all articles delivered to such carrier and 
that all proper charges and expenses incurred by the customs authorities or at their instance by 
reason of such transshipment shall be duly paid. 
“SEC. 2103. 
Articles Entered for Immediate Exportation. - Where an intent to export the 
articles is shown by the bill of lading, invoice, manifest, or other satisfactory evidence IN 
PAPER OR ELECTRONIC FORM, the whole or a part of a bill (not less than one package) 
may be entered for immediate exportation under bond. The Collector shall designate the vessel 
or aircraft in which the articles are laden constructively as a warehouse to facilitate the direct 
transfer of the articles to the exporting vessel or aircraft. 
“Unless it shall appear by the bill of lading, invoice, manifest, or other satisfactory evidence IN 
PAPER OR ELECTRONIC FORM, that articles arriving in the Philippines are destined for 
transshipment, no exportation thereof will be permitted except under entry for immediate 
exportation under irrevocable domestic letter of credit, bank guaranty or bond in an amount equal 
to the ascertained duties, taxes and other chvges. 
“X 
X 
X. 
“SEC. 2201. 
Trespass or Obstruction of Customs Premises. - No person other than those 
with legitimate business with, or employees of, the port or the Bureau of Customs shall be 
allowed to enter the customs premises without a [written] permission IN PAPER OR 
ELECTRONIC FORM of the Collector. No person shall obstruct a customhouse, warehouse, 
office, wharf, street or other premises under the control of the Bureau of Customs, or in any of 
the approaches to that house or premises. 
“SEC. 2504. 
Failure or Refusal of Party to Give Evidence or Submit Documents for 
Examination. - When the owner, importer or consignee or any imported articles, or the agent of 
either, fails or rehses, upon lawhl demand in writing by any customs official to appear, make 
oath or submit himself to examination, or to answer any material question or refuses to produce 


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IN PAPER OR ELECTRONIC FORM records, accounts or invoices in his possession 
pertaining to the value, classification or disposition of the article in question and deemed material 
in appraising the same, the Collector shall assess a surcharge of twenty per centum (20%) ad 
valorem on the article which is the subject of the importation. 
“SEC. 3301. 
Customs Fees and Charges. - For services rendered and documents issued by 
the Bureau of Customs the following fees shall be charged and collected, by affixing IN PAPER 
OR ELECTRONIC FORM documentary customs stamps in the correct amount upon the 
document or any other paper which is the subject of the charge and by the cancellation of such 
stamps in the manner prescribed by the Commissioner, and no such document or any other paper 
shall be issued or granted by any customs officials until the correct amount of stamps shall have 
been affixed and canceled[: Provided, however, That fees of Twenty pesos (P20.00) or over may 
be paid in cash]. 
For each amendment allowed to a foreign inward 
manifest.. .................................. 
P 
[30] 50 
For each permit (other than passengers) to take 
cigars aboard ship, per thousand cigars . . . . . . . . . . . . .  
[30] 50 
For each permit (other than passengers) to take 
cigarettes aboard ship, per thousand cigarettes . . . . . . .  
[30] 50 
For each original import or export entry exceeding 
fifty pesos in value ............................. 
[30] 50 
For each entry for immediate transportation in 
bond ........................................ 
1301 50 
For each original internal revenue entry. . . . . . . . . . . . . . .  
1301 50 
For each original withdrawal entry from any bonded 
warehouse ................................... 
[30] 100 
1301 100 
For each bond accepted or renewed. ................. 
For each approval of application in respect to 
transaction covered by general bond . . . . . . . . . . . . . . .  
[30] 50 
For every formal protest filed before the 
Collector of Customs ........................... 
[50] 110 
For each appeal in protest and seizure cases . . . . . . . . . . . .  
[50] 110 
For each certificate no hereinabove specified, 
exclusive of such are made in the course of 
routine administration in the Bureau which 
do not subserve any special pecuniary interest 
of the party concerned therein ..................... 
[30] 50 


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“SEC. 3302. 
Other Charges. - When any article is sold or any service rendered by the 
Bureau of Customs in any matter for which a charge may be collected legally, no fee therefor 
having been fixed by law, such charge shall be on such amount as may from time to time be fixed 
by regulations or order of the Commissioner and approved by the Department of Finance, and the 
payment of such charge may be made by affixing and cancelling IN PAPER OR 
ELECTRONIC FORM the documentary customs stamps. 
“SEC. 3303. 
Effect ofFailure to Afix Stamp upon Document. - No document or any other 
paper upon which no documentary customs stamps have been affixed and cancelled shall be 
received or recognized by any customs officials, EXCEPT THOSE DOCUMENTS IN 
ELECTRONIC FORM WHERE THE AFFIXING AND CANCELLATION OF THE 
DOCUMENTARY STAMP ARE INDICATED ON THE SAD SCREEN BY THE 
COLLECTOR. 
“SEC. 3406. 
Annual License Fee. - Any person who is a holder of a customs broker’s 
certificate, desiring ta establish a customs brokerage business at any port in the Philippines shall 
apply for an annual license from the Collector of the port concerned. 
“THE APPLICATION FOR A LICENSE TO OPERATE A CUSTOMS BROKERAGE 
BUSINESS IN ONE PORT OF ENTRY SHALL BE APPROVED BY THE COLLECTOR 
OF THE PORT CONCERNED AND THE APPLICATION FOR A LICENSE FOR A 
CUSTOMS BROKE.RAGE COVERING TWO OR MORE PORTS OF ENTRY SHALL 
BE APPROVED BY THE COMMISSIONER OF CUSTOMS. 
“X 
X 
X.” 
SEC. 5. 
New Sections to be known as Section 3507 and Section 3508 are hereby inserted in 
Part 2, Title VIII, Book 11 of the Tariff and Customs Code of the Philippines, as amended, to read 
as follows: 
“SEC. 3507. 
DOCUMENTS PRODUCED BY A COMPUTER WHEN USED AS 
EVIDENCE IN ANY CRIMINAL OR CIVIL PROCEEDING. - A DOCUMENT 
PRODUCED BY A COMPUTER PURSUANT TO THE PROVISIONS OF THIS CODE 
OR A STATEMENT CONTAINED IN SUCH DOCUMENTS SHALL BE EVIDENCE OF 
ANY FACT STATED THEREIN IF THE DOCUMENT WAS PRODUCED BY THE 
COMPUTER IN THE COURSE OF ITS ORDINARY USE, WHETHER OR NOT THE 
PERSON PRESENTING THE SAME IS THE MAKER OF SUCH DOCUMENT OR 
STATEMENT AND WHETHER OR NOT IT WAS PRODUCED BY THE COMPUTER 
AFTER 
THE 
COMMENCEMENT 
OF 
ANY 
CRIMINAL, 
CIVIL 
OR 
ADMINISTRATIVE PROCEEDING OR AFTER THE COMMENCEMENT OF ANY 
INVESTIGATION OR INQUIRY. 
“FOR PURPOSES OF THIS SECTION, A DOCUMENT IS DEEMED TO HAVE BEEN 
PRODUCED BY A COMPUTER WHETHER OR NOT IT WAS PRODUCED BY IT 


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DIRECTLY OR BY MEANS OF ANY APPROPRIATE EQUIPMENT, AND WHETHER 
OR NOT THERE WAS ANY DIRECT OR INDIRECT HUMAN INTERVENTION: 
PROVIDED, THAT A DOCUMENT IS DEEMED TO HAVE BEEN PRODUCED IN THE 
COURSE OF ITS ORDINARY USE WHEN A CERTIFICATE STATING THAT THE 
CONTENTS OF SUCH DOCUMENT ARE TRUE AND CORRECT IS EXECUTED 
UNDER OATH BY A PERSON WHO EITHER BEFORE OR AFTER THE 
PRODUCTION OF THE DOCUMENT BY THE COMPUTER IS RESPONSIBLE FOR 
THE MANAGEMENT OF THE OPERATION OF THAT COMPUTER, OR FOR THE 
CONDUCT OF THE ACTIVITIES FOR WHICH THAT COMPUTER WAS USED. 
SUCH CERTIFICATE SHALL BE DEEMED PRIMA FACIE EVIDENCE THAT THE 
COMPUTER PRODUCING THE DOCUMENT WAS IN GOOD WORKING ORDER OR 
WAS OPERATING PROPERLY IN ALL RESPECT THROUGHOUT THE MATERIAL 
PART OF THE PERIOD DURING WHICH THE DOCUMENT WAS PRODUCED: 
PROK?DED, FURTHER, THAT IN ANY CRIMINAL PROCEEDING, SUCH 
DOCUMENT OR A STATEMENT CONTAINED THEREIN SHALL NOT BE 
EVIDENCE OF ANY FACT STATED THEREIN WHERE IT IS GIVEN IN EVIDENCE 
BY OR ON BEHALF OF THE PERSON CHARGED WITH AN OFFENSE INVOLVING 
VIOLATIONS OF ANY APPLICABLE PROVISIONS OF THIS CODE, WHO WAS: (A) 
RESPONSIBLE FOR THE MANAGEMENT OF THE OPERATION OF THAT 
COMPUTER OR FOR THE CONDUCT OF THE ACTIVITIES FOR WHICH THAT 
COMPUTER WAS USED; OR (B) IN ANY MANNER OR TO ANY EXTENT 
INVOLVED, DIRECTLY OR INDIRECTLY, IN THE PRODUCTION OF THE 
DOCUMENT BY THE COMPUTER. 
“SEC. 3508. 
PRESERVATION OF ALL RECORDS OF IMPORTATIONS AND/OR 
EXPORTATIONS BY IMPORTERS, EXPORTERS AND BROKERS. - ALL IMPORTERS, 
EXPORTERS AND BROKERS ARE REQUIRED TO KEEP AT THEIR PRINCIPAL 
PLACE OF BUSINESS ALL THE RECORDS AND FILES OF THEIR IMPORTATIONS 
AND EXPORTATIONS FOR PURPOSES OF POST AUDIT EXAMINATION, 
INSPECTION, VERIFICATION AND INVESTIGATION THEREOF FOR A PERIOD 
OF FIVE 
(5) YEARS FROM THE DATE OF THE IMPORTATION OR 
EXPORTATION, IN THE MANNER TO BE PRESCRIBED BY THE COMMISSIONER 
OFCUSTOMS.” 
SEC. 6. 
Philippines, as amended, is hereby further amended to read as follows: 
“SEC. 3514. 
Words and Phrases De$ned. - As used in this Code: 
“X 
X 
X 
Section 3514 or Part 2, Title VIII, Book 11 of the Tariff and Customs Code of the 


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“ ‘Duly Registered’ as used in this Act, refers to a person, natural or juridical, [which is] 
registered with the proper government agencies, such as the [Bureau of Commerce] 
DEPARTMENT OF TRADE AND INDUSTRY, GARMENTS AND TEXTILES EXPORT 
BOARD, DEPARTMENT OF ENERGY, Securities and Exchange Commission, [NACIDA,] 
Board of Investments, [Export Incentives Board on Oil Commission] as now or may hereinafter 
be required by law. 
“ ‘COMPUTER’ MEANS ANY DEVICE FOR RECORDING, STORING, PROCESSING, 
RETRIEVING OR PRODUCING INFORMATION OR OTHER MATTER, OR FOR 
PERFORMING ANY ONE OR MORE OF THOSE FUNCTIONS, BY WHATEVER 
NAME OR DESCRIPTION SUCH DEVICE IS CALLED; AND WHERE TWO OR 
MORE COMPUTERS CARRY OUT ANY ONE OR MORE OF THOSE FUNCTIONS IN 
COMBINATION 
OR 
IN 
SUCCESSION 
OR 
OTHERWISE 
HOWSOEVER 
CONJOINTLY, THEY SHALL BE TREATED AS A SINGLE COMPUTER. 
“ ‘DOCUMENT, MEANS 
ANY 
MATTER 
EXPRESSED, 
DESCRIBED, 
OR 
HOWSOEVER REPRESENTED, UPON ANY SUBSTANCE, MATERIAL, THING OR 
ARTICLE, INCLUDING ANY MATTER EMBODIED IN A DISC, TAPE, FILM, SOUND 
TRACK OR OTHER DEVICE WHATSOEVER, BY MEANS OF: 
“(A) 
FORM OF EXPRESSION, DESCRIPTION OR REPRESENTATION WHATSOEVER; 
“(B) 
ANY VISUAL RECORDING (WHETHER OF STILL OR MOVING IMAGES); 
“(C) 
ANY SOUND RECORDING, OR ANY 
ELECTRONIC, MAGNETIC, 
MECHANICAL OR OTHER RECORDING WHATSOEVER AND HOWSOEVER 
MADE, OR ANY SOUNDS, ELECTRONIC IMPULSES, OR OTHER DATE 
WHATSOEVER; 
“(D) 
A RECORDING OR TRANSMISSION, OVER A DISTANCE OF ANY 
MATTER BY ANY OR ANY COMBINATION OF THE MEANS MENTIONED IN 
PARAGRAPHS (A), (B) OR (C); OR 
“(E) 
BY MORE THAN ONE OF THE MEANS MENTIONED IN PARAGRAPHS 
(A), (B), (C), AND (D), INTENDED TO BE USED OR WHICH MAY BE USED FOR THE 
PURPOSE OF EXPRESSING, DESCRIBING, OR HOWSOEVER REPRESENTING 
THAT MATTER.” 
SEC. 7. 
New Sections to be known as Section 3610, Section 3611 and Section 3612 are 
hereby inserted in Part 3, Title VIII, Book II of the Tariff and Customs Code of the Philippines, 
as amended, to read as follows: 
“SEC. 3610. 
FAILURE 
TO KEEP 
RECORD 
OF IMPORTATIONS 
AND/OR 
LETTERS, FIGURES, MARKS, SYMBOLS, SIGNALS, SIGNS, OR OTHER 
EXPORTATIONS. - ANY PERSON WHO WILLFULLY VIOLATED THE PROVISIONS 
OF SECTION 3508 ON KEEPING OF RECORDS OF IMPORTATIONS AND/OR 


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EXPORTATIONS OF THIS CODE SHALL BE PUNISHED WITH A FINE OF NOT 
LESS THAN ONE HUNDRED THOUSAND PESOS (P100,OOO.OO) NOR MORE THAN 
TWO HUNDRED THOUSAND PESOS (P200,OOO.OO) AND IMPRISONMENT OF NOT 
LESS THAN EIGHT (8) YEARS AND ONE (1) DAY NOR MORE THAN TWELVE (12) 
YEARS. 
“SEC. 3611. 
FAILURE 
TO 
SECURE 
UNIQUE 
IDENTIFIER. - EVERY 
AUTHORIZED/REGISTERED USER OF A CUSTOMS COMPUTER SYSTEM WHO 
FAILS TO COMPLY WITH OR PERF’ORMS ACTS IN CONTRAVENTION OF THE 
REQUIREMENTS SET FORTH BY THE COMMISSIONER REGARDING THE 
SECURITY OF HIS/HER UNIQUE IDENTIFIER SHALL BE PUNISHED WITH THE 
SAME PENALTY PROVIDED FOR IN THE PRECEDING SECTION UNLESS HE/SHE, 
PRIOR TO ANY UNAUTHORIZED USE OF THAT UNIQUE IDENTIFIER, NOTIFIES 
THE COMMISSIONER OF CUSTOMS OF THE LOSS OF SECURITY THEREOF. IN 
ADDITION, HISMIER AUTHORIZATION TO USE THE CUSTOMS COMPUTER 
SYSTEM SHALL BE SUBJECT TO CANCELLATION BY THE COMMISSIONER AS 
PROVIDED FOR IN SECTION 608-B OF THIS CODE. 
“SEC. 3612. 
UNLAWFUL USE OF UNIQUE IDENTIFIER. - EVERY PERSON 
WHO, WITHOUT LAWFUL AUTHORITY, USES A UNIQUE IDENTIFIER TO 
AUTHENTICATE A TRANSMISSION OF INFORMATION TO THE CUSTOMS 
COMPUTER SYSTEMS SHALL BE PUNISHED WITH THE SAME PENALTY 
PROVIDED FOR IN SECTION 3610 OF THIS CODE.” 
SEC. 8. 
The former Section 3610 on Violations of Tariff and Customs Laws and 
Regulations in General, Part 3, Title VIII, Book 11 of the Tariff and Customs Code of the 
Philippines, as amended, is hereby renumbered as Section 3613. 
SEC. 9. 
Bureau ‘of Customs (BOC) Productivity Incentive Fund. - There is hereby 
established a BOC productivity incentive hnd to be created out of the increase in total collection 
achieved during the immediately preceding year over that of the previous year. Said fund which 
is equivalent to five percent (5%) of the excess of actual collections over the collection goal shall 
be considered as receipts automatically appropriated and shall be made available for additional 
incentive allowance of BOC personnel as may be authorized by the president upon 
recommendation of the Secretary of Finance: Provided, That the approved collection targets 
originally used in the formulation of the budget as proposed by the President to Congress shall 
have been attained. The rules and regulations to implement this provision shall be jointly issued 
by the Secretary of Finance and Secretary of Budget and Management. 
SEC. 10. 
Implementing Rules and Regulations. - The Secretary of Finance shall, upon 
recommendation of the Commissioner of Customs, promulgate the rules and regulations 
necessary for the effective implementation of this Act. 


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SEC. 11. 
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repealed. 
Repealing Clause. - Section 3505 on Supervision over Attorneys-in-fact, of Part 2, 
Title VIII, Book I1 of the Tariff and Customs Code of the Philippines, as amended, is hereby 
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SEC. 12. 
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date comes earlier. 
All laws, executive orders, decrees, rules and regulations, and other issuances or parts thereof 
inconsistent with the provisions of this Act, are hereby repealed or modified accordingly. 
Effectivity. - This Act shall take effect after fiReen (15) days from its publication 
in the Official Gazette or in at least two (2) national newspapers of general circulation whichever 
Approved,