HOUSE °F RiPRESENTATIVES
Republic of the Philippin

HOUSE OF REPRESENTATIVI RECEIVED .
Quezon City pares eet
TINE:
SEVENTEENTH CONGRES: ey
First Regular Session meaiRON NT
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iG INDE X SERVICE
House ait No, 225 Bits AND

Introduced by HON. ROZZANO RUFINO B. BIAZON

EXPLANATORY NOTE

This bill seeks to amend Republic Act No. 10863 (RA 10863), otherwise known as
the “Customs Modernization and Tariff Act,” by proposing to include a new provision that
would allow the Bureau of Customs (BoC) to use part of its income for its modernization
program.

The passage of RA 10863 is loadable as it updated the Tariff and Customs Code of
the Philippines to pave the way for reforms and the modernization of the Bureau of Customs.
RA 10863 is envisioned to transform the BoC into an efficient and effective agency with the
wherewithal to carry out its primary mandate.

However, the achievement of this vision would not be possible if the Bureau would be
stymied by obsolete or lack of equipment and modem information and technology systems.
In order that the BoC may be given more leeway to pursue its modernization in this respect, it
is respectfully submitted that it should be allowed to use part of its income. In this manner,
said agency would hopefully be able to move faster in modernizing its equipment and
information and technology systems.

In view of the foregoing, early passage of this bill is earnestly sought.

R N tole: & B.BIAZON

Representative
Lone District, Muntinlupa City



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS.

First Regular Session

125
HOUSE BILL NO.

Introduced by HON, ROZZANO RUFINO B. BIAZON

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

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

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

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

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

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

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

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

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



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

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

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

Approved,