taxation - 6 tax remedies under tccp

8/3/2019 Taxation - 6 Tax Remedies Under TCCP

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TAXATION

Part SIX

TAX REMEDIES

REMEDIES UNDER THE TARIFF AND

CUSTOMS CODE

Remedies Available to the Government

a. Seizure and Forfeiture of Goods and Commodities

SEARCH, SEIZURE AND ARREST

Sec 2201, TCCTrespass or Obstruction of Customs Premises.- No person other than those w/ legit biz w/, OR employees of port or BoC is allowed to enter customs premises w/o writtenpermission of Collector.- No person shall obstruct customhouse, w’house, ofc, wharf,street or premises under control of BoC, or in any approaches tothat house / premises.

Sec 2202, TCCSpecial Surveillance for Protection of Customs Revenue andPrevention of Smuggling. In order to prevent smuggling and to

secure the collection of the legal duties, taxes and other charges,the customs service shall exercise surveillance over the coast,beginning when a vessel or aircraft enters Philippine territoryand concluding when the article imported therein has beenlegally passed through the customhouse: Provided, That 43the function of the Philippine Coast Guard to prevent andsuppress illegal entry, smuggling and other customs frauds andviolations of the maritime law and its proper surveillance of vessels entering and/or leaving the Philippine territory asprovided in section 3 (a) of Republic Act Numbered Fifty -onehundred and seventy -three shall continue to be in force andeffect.

Sec 2203, TCCPersons Having Police Authority.- For enforcement of tariff & customs laws, ff are authorized toeffect searches, seizures, arrests conformably w/ said laws

a. officials of BoC, district collectors, deputy collectors,

police officers, agents, inspectors, guards of BoCb.- officers of Phil Navy AND- other members of AFP & nat’l law enforcement agencieswhen authorized by Commissioner c. officials of BIR on all cases falling w/in regular performance of duties, when payment of internal revenuetaxes are involvedd. officers generally empowered by law to effect arrests &execute processes of courts, when under direction of Collector

- To avoid conflicts & insure coordination, Sec of Finance shall,subject to approval of Pres, define scope, areas covered,procedures, conditions governing exercise of police authorityincl custody & responsibility for goods seized.- Rules shall be

- furnished to gov’t agencies & personnel concerned AND- published in newspaper of gen circulation

Sec 2204, TCCPlace Where Authority May be Exercised.- All persons w/ powers in preceding sec may exercise the sameat any place w/in jurisdiction of BoC.

Sec 2205, TCCExercise of Power of Seizure and Arrest.- It’s w/in official / person authorized AND it’s his duty, to makeseizure of vessel, aircraft, cargo, article, animal, other movableprop, when subject to forfeiture, such power to be exercised inconformity w/ law & this Code- Powers of Fisheries Commission to make arrests, searches,seizures, and Phil Coast Guard shall continue.

Sec 2206, TCCDuty of Officer or Official to Disclose Official Character.- It’s the duty of person exercising authority, upon beingquestioned at time of exercise thereof

- to make known his official character as officer / official- if his authority is derived fr special authorization in writing,to exhibit the same for inspection, if demanded

Sec 2207, TCCAuthority to Require Assistance.

- Person exercising police authority under customs & tariff lawsmay demand assistance of police off icer when necessary toeffect search, seizure, arrest.- It’s the duty of police officer upon whom requisition is made togive assistance.

Sec 2208, TCCRight of Police Officer to Enter Inclosure.- For more effective discharge of official duties, personexercising powers, may any time enter, pass thru, or search anyland / inclosure / w’house, store, bldg, not being a dwellinghouse.- W’house, store, bldg / inclosure used for keeping / storage of articles doesn’t become dwelling house merely by reason of factthat person as watchman lives in the place, nor will the fact thathis family stays there w/ him alter the case.

Sec 2209, TCC

Search of Dwelling House.- Dwelling house may be entered & searched only upon warrant

- issued by Judge of Court or other responsible officers asauthorized by law upon sworn application showing probablecause AND- particularly describing place to be searched & thing to beseized

Sec 2210, TCCRight to Search Vessels or Aircrafts and Persons or ArticlesConveyed Therein.- It’s lawful for any official / person exercising police authority

- to go abroad vessel / aircraft w/in limits of collectiondistrict- to inspect, search, examine vessel / aircraft and trunk,package, box, envelope on board- to search person on board vessel / aircraft- to use necessary force to compel compliance- to make seizure, if it appears that breach / violation of customs & tariff laws was committed, where vessel,aircrafts, article, or part thereof, is liable to forfeiture

- Power of search extends to removal of false bottom, partition,bulkhead or obstruction.- No proceeding herein gives rise to any claim for damagecaused to article / vessel / aircraft.

Sec 2211, TCCRight to Search Vehicles, Beasts and Persons.- It’s lawful for exercising authority

- to open & examine box, trunk, envelope, container whenhe has reasonable cause to suspect presence of dutiable or prohibited article AND- to stop, search, examine any vehicle, beast, personreasonably suspected of holding / conveying such article

Sec 2212, TCCSearch of Persons Arriving From Foreign Countries.- Persons coming into Phils fr foreign countries are liable todetention & search by customs authorities.- Female inspectors may be employed for exam & search of persons of their own sex.

ADMINISTRATIVE PROCEEDINGS

Sec 2301, TCCWarrant for Detention of Property - Cash Bond.- Upon making seizure, Collector issues warrant for detention of prop.- If owner / importer desires to secure release of prop for legituse, Collector shall, w/ approval of Commissioner, surrender it

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upon filing of cash bond, in amt fixed by him, conditioned uponpayment of appraised value of article and / or fine, expenses,costs w/c may be adjudged.- Importation isn’t released under any bond when there’s prima

facie evidence of fraud.- Articles the importation of w/c is prohibited by law shall not bereleased.- Nothing is construed as relieving owner / importer fr any crim

liability w/c may arise fr violation of law in connection w/importation.

Sec 2302, TCCReport of Seizure to Commissioner and Chairman, Commissionon Audit.- When seizure is made, Collector of district where seizure iseffected shall immediately make report to

- Commissioner AND- Chairman, CoA

Sec 2303, TCCNotification to Owner or Importer.- Collector gives owner / importer of prop / agent

- written notice of seizure AND- opportunity to be heard re delinquency w/c was theoccasion of seizure

- The importer, consignee OR person holding BL is deemed to be"owner" of article included in BL.- "Agent" is deemed to incl not only any agent in fact of owner of

seized prop but also any person having responsible possessionof prop at time of seizure, if owner / his agent in fact is unknownor can’t be reached.

Sec 2304, TCCNotification to Unknown Owner.- Notice to unknown owner is effected by

- posting for 15d in public corridor of customhouse of district in w/c seizure was made AND- in discretion of Commissioner, publication in newspaper OR other means he considers desirable

Sec 2305, TCCDescription, Appraisal and Classification of Seized Property.- Collector also causes

- list AND particular description and / or classification of prop seized to be prepared- appraisement of the same, like, or similar article atwholesale value in local market in usual wholesalequantities in ordinary course of trade to be made by at least2 appraising officials

- in absence of those officials, then by 2 competent &disinterested citizens of Phils, selected by him,residing at or near place of seizure

- List AND appraisement are properly attested to by Collector AND persons making appraisal.

Sec 2306, TCCProceedings in Case of Property Belonging to Unknown Parties.- If w/in 15d after notification in Sec 2304, no owner / agent canbe found or appears before Collector, latter declares prop

- forfeited to gov’t- to be sold at auction

Sec 2307, TCC

Settlement of Case by Payment of Fine or Redemption of Forfeited Property.- Subject to approval of Commissioner, district collector may,while case is still pending, except when there’s fraud, acceptsettlement of seizure case provided that owner, importer,exporter, consignee or agent offers to pay to collector

- fine upon the prop OR- in case of forfeiture, domestic market value of seizedarticle

- Commissioner may accept settlement of seizure case on appealin same manner.- Upon (1) payment of fine as determined by district collector w/cis in amt not < 20% nor > 80% of landed cost of seized importedarticle OR FOB value of seized article for export, OR (2) paymentof domestic market value

- prop is released AND- all liabilities w/c may attach to prop by virtue of offense w/cwas the occasion of seizure AND all liability w/c might’vebeen incurred under cash deposit or bond given by owner /

agent is discharged- Settlement of seizure case by payment of fine / redemption of forfeited prop isn’t allowed where

- importation is absolutely prohibited OR

- release of prop is contrary to law

Sec 2308, TCCProtest and Payment Upon Protest in Civil Matters.- When ruling / decision of Collector is made where liability for duties, taxes, fees, charges are determined, except fixing of finesin seizure cases, partly adversely affected may protest ruling /decision by presenting to Collector, when payment of amtclaimed to be due gov’t is made OR w/in 15d thereafter, a writtenprotest setting forth objection w/ reasons therefor.- No protest is considered unless payment of amt due is firstmade AND docket fee.

Sec 2309, TCC, as amended by RA 7651Protest Exclusive Remedy in Protestable Case.- In cases subject to protest, interested party who desires to haveaction of Collector reviewed, makes protest.- Otherwise, action of Collector is final & conclusive against him,except as to matters collectible for manifest error in Sec 1707.

Sec 2310, TCCForm and Scope of Protest.- Protest

- is filed in accordance w/ prescribed rules under this sec- points out decision / ruling of Collector to w/c exception istaken or objection made- indicates ground/s upon w/c protesting party bases claimfor relief

- Scope of protest is ltd to subject matter of single adjustmentOR independent transaction BUT any no. of issue may be raisedin protest w/ reference to particular item/s constituting subjectmatter of protest.- “Single adjustment”: entire content of 1 liquidation, incl allduties, fees, surcharges, fines

Sec 2311, TCCSamples to be Furnished by Protesting Parties.- If nature of articles permits, importers filing protests involvingquestions of fact must, upon demand, supply Collector w/samples of articles - subject matter of protest.- Samples are verified by customs official who madeclassification against w/c protests are filed.

Sec 2312, TCCDecision or Action of Collector in Protest and Seizure Cases.- When protest in proper form is presented in case where protestis required, Collector

- issues order for hearing w/in 15d fr receipt of protest AND- hears matter presented

- Upon termination of hearing, Collector renders decision w/in30d.- If protest is sustained, in whole or in part, he makes appropriateorder, the entry reliquidated necessary.- In seizure cases, Collector, after hearing, shall in writing

- make declaration of forfeiture OR

- fix amt of fine OR- take other action as proper

Sec 2313, TCC, as amended by RA 7651Review of Commissioner.- Person aggrieved by decision OR action of Collector in matter presented upon protest OR action in case of seizure may, w/in15d after notification in writing by Collector of his action /decision, file written notice to Collector w/ copy furnished toCommissioner of his intent to appeal to Commissioner.- Collector shall transmit all records to Commissioner, who shall

- approve, modify or reverse action / decision of Collector AND- take steps and make orders to give effect to his decision

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- When appeal is filed beyond period prescribed, the same isdismissed.- If in seizure proceedings, Collector renders decision adverse toGov’t, such is automatically rvwd by Commissioner AND records

elevated w/in 5d fr promulgation of decision of Collector.- Commissioner renders decision of automatic appeal w/in 30d fr receipt of records.- If Collector's decision is reversed by Commissioner, decision of

Commissioner is final & executory.- If Collector's decision is affirmed OR if w/in 30d fr receipt of

records of case by Commissioner no decision is rendered ORdecision involves imported articles whose published value isP5M or more, decision is automatically appealed to Sec of Finance AND records are elevated w/in 5d fr promulgation of decision of Commissioner OR Collector under appeal.- If decision of Commissioner OR Collector under appeal isaffirmed by Sec of Finance OR if w/in 30d fr receipt of records bySec of Finance, no decision is rendered, decision of Sec of Finance OR Commissioner OR Collector under appeal becomesfinal & executory.- In seizure proceeding, release of imported articles isn’t allowedunless & until decision of Collector has been confirmed in writingby Commissioner.

Sec 2314, TCCNotice of Decision of Commissioner.- Notice of decision of Commissioner is given to party by whomcase was brought before him for rvw.

- In seizure cases, notice is effected by personal svc if practicable.

Sec 2315, TCC, as amended by RA 7651Supervisory Authority of Commissioner and Secretary of Financein Certain Cases.- If any case involving assessment of duties, Collector rendersdecision adverse to Gov’t, such decision is automaticallyelevated to & rvwd by Commissioner.- If Collector's decision is affirmed by Commissioner, decision isautomatically elevated to & finally rvwd by Sec of Finance.- If w/in 30d fr receipt of record of case by Commissioner / Sec of Finance, as case may be, no decision is rendered by them,decision under rvw is final & executory.- Any party aggrieved by either decision of Commissioner or Secof Finance may appeal to CTA w/in 30d fr receipt of copy of decision.- Except as provided in preceding par, supervisory authority of Sec of Finance over BoC shall not extend to administrative rvw of ruling / decision of Commissioner in matters appealed to CTA.

Sec 2316, TCCAuthority of Commissioner to make Compromise.- Subject to approval of Sec of Finance, Commissioner maycompromise any case under this Code or other laws / part of laws enforced by BoC re imposition of fines, surcharges &forfeitures unless otherwise specified by law.

Sec 2317, TCCGovernment's Right of Compulsory Acquisition.- To protect gov’t revenues against undervaluation of goodssubject to ad valorem duty, Commissioner may acquire importedgoods under question for price equal to declared customs value+ duties already pd on goods.- Payment must be made w/in 10 working days fr issuance of

warrant signed by Commissioner for acquisition of goods.- Importer dissatisfied w/ decision of Commissioner re this secmay, w/in 20 working days after date on w/c notice of decision isgiven, appeal to Sec of Finance, and if still dissatisfied, to CTA asin Sec 2402.- Where no appeal is made by importer OR upon reaffirmation of Commissioner’s decision, BoC or its agent sells acquired goods.- Nothing in this Sec limits or affects other powers of BoC redisposition of goods or any liabili ty of importer or other personw/ respect to offense in importation.

CAO 10-2007Rules and Regulations in Conduct of Public Auction andNegotiated Sale

Sec 1.Coverage.- This covers disposition of articles under customs custody inSec 2601, TCCP thru public auction OR negotiated sale pursuant

to Sec 2610.

Sec 2.Public Auction.

In absence of special provision, articles under customs custodyare disposed of thru sale by public auction.

Sec 3.Floor Price in Auction Sale.- Articles subject to sale at public auction is sold at price not <wholesale value of canvassed domestic wholesale price of same,like or similar articles and in usual wholesale quantities and inordinary course of trade

- determined by examiners / appraisers- subject to approval of Chief, ACDD AND District Collector

- Recommended floor price shall not be < sum of total landedcost based on published / circularized VRIS – OCOM test valueplus taxes, taking into consideration depreciation.

Sec 4.Notice of Public Auction.- It’s prepared by Chief, ACDD or its equivalent unit ANDapproved by District Collector containing info:

- time, date, place of sale

- lot no. per sale lot, name of consignee- description of goods (CAO 8-2007) per sale lot, incl qty,condition, volume / qty, date of arrival

- in no case shall goods be described as “variousgoods”- in motor vehicles, incl year model, make / brand,vehicle ID no., chassis & engine no.- if perishable item, the expiry date

- floor price per sale lot- date, time, place for inspection of items, 2 days prior toauction date- terms & conditions of auction

Sec 5.Submission of Notice of Sale to Commissioner for MonitoringPurposes.- Upon approval of Notice of Sale by District Collector, the Chief,ACDD shall furnish the Commissioner a copy of Notice andsubmit the ff docs

- inventory of ea sale lot covered by Notice of PublicAuction- Certificate of Finality of Forfeiture / Declaration of Abandonment OR Order of District Collector to sell in publicauction- in case of perishable items, Certification fr assignedexaminer / appraiser attesting to the fact that the goods areperishable and approved by Chief, ACDD

Sec 6.Publication and Posting of Notice of Sale.- Notice of Auction Sale, regardless of aggregate amt of coveredsale lots, shall be

- published in at least 2 newspapers of gen circulation AND- posted at Bureau website and / or at conspicuous place /bulletin board w/in port

… at least 10 calendar days prior to date of auction sale OR incase of perishables, at least 3 calendar days.- Except for Manila, Cebu, Cagayan de Oro and Davao, the Noticeis also posted at bulletin board of city / municipal hall where portis located.

Sec 7.Conditions for Registration and Participation in Public Bidding.- Chief, ACDD is responsible to ensure that only those who havecomplied w/ ff requirements shall participate & register inauction:

- file accomplished registration form- pay non-refundable registration fee of P2000- post of duly receipted bond in cash / manager’s check inamt equivalent to 20% of floor price for ea sale lot.

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- refunded to losing bidder after closing- not required when floor price of a sale lot is < P10000

- if involving regulated commodities, submit to ACDD proof of qualification

- indicate relevant circumstances of registration in logbookfor registered bidders- submit latest income and / or biz tax returns duly stamped& rcvd by BIR and validated w/ payment made

Sec 8.

Sealed Bid System.- Sealed bids are submitted & opened in public by AuctionCommittee at a time, date, place in Notice.- Highest bid is declared winner except in clustering.

Sec 9.Clustering System.- Clustering: diff between highest and 2nd highest bid is w/in10% of highest bid.- Open bidding is conducted among bidders of particular sale lotpresent w/ highest bid serving as new floor price.- Only bids raised by 3% or more than new floor price areconsidered and the highest bid in open bidding is declaredwinner. Otherwise, highest sealed bid wins.

Sec 10.Awarding of Sale.- At end of bidding, highest bidder is required to pay in cash /

manager’s check 50% of bid price on the spot uponannouncement of winning bid as certified by Auction Committeeand CoA rep.- Remaining balance is pd on succeeding biz day.

Sec 11.Failed bidding.- It’s declared by Auction Committee when any of ff occurs:

a. there’s only 1 sealed bid- the same shall not be opened

b. there are 2 sealed bids but there’s only 1 higher than floor pricec. highest bidder fails to comply w/ payments required

- said bidder is disqualified fr participating further w/oprejudice to forfeiture of cash bond and any paymentmade and other sanctions

Sec 12.Second Bidding.- When failed bidding is declared, sale lot is offered in 2ndauction on 3rd biz day after 1st failed bidding at same floor price,w/o need for ad / posting.- In case of perishable goods, 2nd auction is on 1st biz day ff 1stbidding.

Sec 13.Negotiated Sale.- In case of 2nd failed bidding, unsold lot is re-offered thrunegotiated sale.

Sec 14.Mandatory Reporting on Second Failed Bidding.- After 2nd failed bidding, District Collector submits report toCommittee on Negotiated Sale, w/in 48 hrs. In case of perishablearticles, 24 hrs

a. abstract of bids per sale lot indicating floor price, name of bidders and reason for failed auctionb. proof of publicationc. District Collector’s certification on 2 failed biddingsd. if perishable, District Collector’s certification to that effecte. other requirements

Sec 15.Committee on Negotiated Sale.- It’s composed of ff

a. Charman: Deputy Commissioner, Internal Admin Grpb. Members

- OCOM Rep: designated by Commissioner - DOF Rep: designated by Sec of Finance or his rep

c. Head, Secretariat: recommended by Chair, Committee onNegotiated Sale

- Duties & fcns of Committee:a. implement this CAO

b. conduct ocular inspection of sale lotsc. reject offers or part thereof and consider offers mostadvantageous to gov’td. recommend to Sec of Finance for acceptance of offers

- Duties of Secretariat:a. cause publication of Notice in at least 2 newspapers of

gen circulation specifying date, place, time of inspection of lots AND date, cut-off time for submission of requirementsin Sec 15.

- publication is at least 5d prior to date indicated and incase of perishable articles, at least 2 calendar days.

b. coordinate w/ ACDD re posting requirementsc. prepare Report of Proceedings of Committee Meetingsd. maintain records related to fcns / activities of Committee

Sec 16.Requirements and Procedure in Negotiated Sale.a. Participant submits to Committee on Negotiated Sale the ff

- sealed offer to buy, indicate sale lot & amt of offer - TIN- official receipt on payment of non-refundable reg fee- latest income / biz tax return stamped & rcvd by BIR andvalidated w/ payment- if regulated commodities, proof of qualification as importer

/ trader - other requirements

b. There are no minimum prices and sealed offers must besubmitted w/in period indicated in Notice. No offer is entertainedafter period. Sealed offers are opened in presence of CoA rep.c. Participant whose offer is most advantageous is required topay guarantee cash deposit in amt equivalent to 20% of offer w/in24 hrs fr receipt of notice by Committee prior to referral to Sec of Finance. Non-compliance disqualifies offeror.d. Add’l 30% of offer is pd in cash / manager’s check w/in 48 hrsfr receipt of notice fr Committee of approval of offer by Sec. 50%balance is pd in full w/in succeeding biz day. Non-compliancecauses forfeiture of deposit and any payments made w/oprejudice to other sanctions.e. When offer is rejected by Sec, guarantee cash deposit isrefunded and unsold lot is re-bidded.

COMPULSORY ACQUISITION

CAO 5-2001 as amended by CAO 4-2004Sec 5.Compulsory Acquisition.- To protect gov’t revenue against undervaluation of goodssubject to ad valorem duty, Commissioner may acquire grosslyundervalued goods for price equal to declared customs value +duties already pd.- Payment is made w/in 10 working days fr issuance of warrantsigned by Commissioner for acquisition.- There is gross undervaluation when discrepancy betweendeclared customs value and any of the test values is 200% or higher using ff formula

= difference between test value and declared value X 100

declared value

… AND importer fails to explain difference.- Importer dissatisfied w/ decision of Commissioner may, w/in 20

working days after date on w/c notice is given, appeal to Sec of Finance; if still dissatisfied, to CTA.- Where no appeal is made by importer OR upon reaffirmation of Commissioner’s decision, BoC or agents sell acquired prop.- Right of Commissioner in this Sec is w/o prejudice to exerciseof BoC’s other power re disposition of goods or liability of importer or other person re offense in importation.

b. Judicial Action against the Taxpayer

Sec 2401, TCC, as amended by RA 9135Supervision and Control Over Criminal and Civil Proceedings.- Civil & crim actions & proceedings in behalf of gov’t under authority of Code OR other law enforced by BoC is

- brought in name of gov’t of Phils AND

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- is conducted by customs officers- No civil / crim action for recovery of duties OR enforcement of fine, penalty, forfeiture is filed in court w/o approval of Commissioner.

Sec 2402, TCCReview by Court of Tax Appeals.- Party aggrieved by ruling of Commissioner in matter brought

before him upon protest OR by his action / ruling in case of seizure may appeal to CTA.

- Unless appeal is made to CTA, action / ruling of Commissioner is final & conclusive.

c. Post entry Audit

Sec 3514, TCCRequirement to Keep Records.- Importers are required to keep at principal place of biz, inmanner prescribed by regulations by Commissioner and for 3y fr date of importation, all records of importations and / or books of accts, biz & computer systems, customs commercial data inclpayment records for verification of accuracy of transaction valuedeclared by importer / customs brokers on import entry.- Brokers are required to keep at principal place of biz, in manner prescribed by regulations by Commissioner and for 3y fr date of importation copies of records of transactions they handle.

Sec 3515, TCC

Compliance Audit or Examination of Records.- Importers / customs brokers shall allow customs officer authorized by BoC to enter during ofc hrs any premises whererecords in preceding sec are kept, to conduct audit exam,inspection, verification and / or investigation either in relation tospecific transactions or to adequacy & integrity of system by w/crecords are created & stored.- Authorized customs officer has full & free access to books,records, docs necessary / relevant for collecting proper duties &taxes.- He may make copies of, take extracts fr such docs.- Records / docs must, as soon as practicable after copies havebeen taken, be returned.- Copy of doc certified by or on behalf of importer / broker isadmissible in evidence in courts as if it were orig.- Authorized customs officer isn’t entitled to enter premisesunless, before so doing, officer produces to person occupying /

apparently in charge, written evidence of fact that he’sauthorized.- Person occupying / apparently in charge shall provide officer w/all reasonable facilities & assistance.- Unless otherwise provided, BoC may, in case of disobedience,invoke aid of RTC w/in whose jurisdiction matter falls. Court maypunish contumacy or refusal as contempt.- The fact that importer / broker denies officer full & free accessto records during post-entry audit creates presumption of inaccuracy in transaction value declared and constitutesgrounds for BoC to conduct re-assesment.- This is w/o prejudice to crim & administrative sanctions againstcontumacious importers incl authority to hold delivery / releaseof imported articles.

Sec 3516, TCCScope of the Audit.- Audit of importers is undertaken:

1. when firms are selected by computer-aided risk mgmtsystem, parameters of w/c are to be based on objective &quantifiable data, to be approved by Sec of Finance uponrecommendation of Commissioner.

- Criteria include, but not limited to:a. relative magnitude of customs revenue fr firmb. rates of duties of importsc. compliance track recordd. assessment of risk to revenue of importactivities

2. when errors in import declaration are detected3. when firms voluntarily request to be audited, subject toapproval of Commissioner.

- Brokers are audited to validate audits of importer clients and /or fill in info gaps during audit of importer clients.

Sec 3517, TCCDocuments in Foreign Language.- Where doc in foreign language is presented to customs officer

in relation to duty or power of BoC, doc in foreign language mustbe accompanied w/ translation in official language of thiscountry.

Sec 3518, TCCRecords to be Kept by Customs.

- BoC shall likewise keep record of audit results in database of importer & broker profiles, to incl but not ltd to:a. articles of incorporationb. company structure

- incorporators & board of directors- key officers- org structure

c. key importationsd. privileges enjoyede. penaltiesf. risk category/ies

CAO 5-2001 as amended by CAO 4-2004Sec 4.Recordkeeping and Compliance Audit.A. Recordkeeping

1. Importers to keep recordsa. Importers are required to keep at principal place of

biz, for 3y fr filing of import entry, all records of imports and / or books of accts, biz and / or computer systems and other customs commercial data inclpayment records for verification of accuracy of transaction value declared by importer / customsbrokers on import entry.b.- “Importer” includes

- importer of record / consignee- beneficial owner - agent of persons effecting importation- other person who knowingly causes goods to beimported

- “knowingly causes goods to be imported” coversdomestic transactions where

- terms of importation are controlled by personplacing the order w/ importer OR- technical data, molds, equipment, productionassistance, etc are furnished by person placingthe order w/ importer w/ knowledge that they willbe used in manufacture / production of imptdgoods

2. Records to be kept by importersa. company / entity structure, incl ff

- articles of incorporation / partnership,registration certificate w/ Bureau of DomesticTrade, etc- list of incorporators, stockholders, partners,board, owner - org structure- mgmt & key personnel involved in importprocessing incl declarants and specimensignatures- capital composition; stock & transfer book- principals and / or subsidiaries and their capital

composition- list of exporters / suppliers to w/c importer isrelated

b. ordering / purchase documentation, incl ff - sales and related agreements, incl thosecovering dist’n, royalty, agency, warranty, etc- correspondence / communication relating to theimport transaction incl purchase orders,vouchers, etc- product description / specifications inclbrochures, manuals, etc

c. shipping, import, export and transportdocumentation incl ff

- import and / or export entry- invoice and / or consignment notes

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- import & export licenses / permits- ocean BL and / or master AWB, and / or houseAWB and / or consolidator BL- shipping instructions, and / or freight forwarders

instructions- certificates of origin and / or certificates of eligibility and / or certificate of inspection and / or loading

- freight & insurance contracts- packing lists

- transshipment permits and / or boatnotes and /or special permits to transfer - quota allocation and / or certificates- customs brokerage agreements, and / or billings,and / or statement of accts, and / or receipts- receipts for arrastre charges, cargo handling andstorage fees- short shipped / bad order reports- goods tally records- LCs, application for LC, bank details- remittance advice- credit card transactions- telegraphic money transfers- offshore monetary transactions- evidence of payments by any other means, inclinfo on non-cash compensation transactions

d. mfg, stock, resale documentation incl ff - inward goods register / receipts journal

- stock register / inventory records- production records- costing records- sales records

e. bank docs, FS and acctg info- receipts, cash books- schedules of accts payable & accts receivable- cheque records

f. charts & codes of accts, ledgers, FS, acctginstruction manuals, system & program documentationg. papers, books, registers, discs, films, tapes, etcused to store info in (a) to (f)

3. Customs brokers are required to keep at principal placeof biz, for 3y fr date of importation copies of importationrecords in whatever form covering transactions that theyhandle4. BoC shall also keep record of audit results in database of importer & broker profiles, to incl but not ltd to ff

a. articles of incorporationb. company structure

- incorporators & board of directors- key officers- org structure

c. key importationsd. privileges enjoyede. penaltiesf. risk category/ies

5. Where doc in foreign language is presented, doc must bew/ translation in English or Filipino, certified correct under oath by translator

B. Compliance Audit1. Importers / brokers shall allow customs officer authorizedby Commissioner to enter during ofc hrs premises whererecords are kept to conduct exam of

a. document flow

b. financial flowc. goods inventoryd. other biz processes

2. Customs officer may require importer / broker to makecertified copies of such docs / extracts therof.3. Copy of doc certified by or on behalf of importer / broker is admissible in evidence in all courts as if it were orig.4.- Customs officer shall not enter premises unless, before sodoing, he produces

a. duplicate orig of the audit notification letter (ANL)issued by Commissioner addressed to importer /broker b. official Customs ID card

- Person in charge shall provide officer w/ facilities &assistance.5. No audit shall commence w/o issuance by Commissioner of ANL.

6.- Unless otherwise provided, BoC may, in case of disobedience, invoke aid of RTC w/in whose jurisdictionmatter falls. Court may punish contumacy or refusal as

contempt.- The fact that importer / broker denies officer full & free

access to records during post-entry audit createspresumption of inaccuracy in transaction value declaredand constitutes grounds for BoC to conduct re-assesment.7. This is w/o prejudice to crim & administrative sanctionsagainst contumacious importers incl authority to holddelivery / release of imported articles.

C. Scope of Compliance Audit1. Audit of importers is undertaken

a. when firms are selected by computer-aided riskmgmt system, parameters of w/c are to be based onobjective & quantifiable data

- Criteria include, but not limited to:- relative magnitude of customs revenue fr firm- rates of duties of imports- compliance track record- assessment of risk to revenue of importactivities

b. when errors in import declaration are detectedc. when firms voluntarily request to be audited, subjectto approval of Commissioner

2. Brokers are audited to validate audits of importer clientsand / or fill in info gaps during audit of importer clients.

D. Conduct of Compliance Audit1. Commissioner prepares set of compliance auditguidelines / manual, w/c includes ff procedural / operationalconcerns

a. profiling / info analysisb. audit notificationc. audit preparation / audit pland. pre-audit conference w/ auditeee. conduct of audit proper f. exit conferenceg. audit reportingh. audit monitoring

2. Compliance audit depends on prevailing circumstances.It may be divided into stages or may have varying scopes.3. Nothing is construed as restricting rights of BoC tosatisfy itself as to the truth or accuracy of statementpresented for customs valuation, and as necessary for collecting proper duties & taxes.

CMO 2-2002Record-keeping and Post Entry Audit Guidelines- Administrative provisions

- Compliance audit is control mechanism at back-end of cargo clearance. It aims to facilitate trade by allowingrelease of low risk imports w/ minimum intervention.Customs can verify truth & accuracy of import entrydeclarations w/in 3y fr filing of import entry.- Rationale behind record-keeping requirement: to enablefast releases at border, importers & brokers shall assurecustoms that their entry declarations are in accordance w/

law, rules, regulations- Importer includesa. importer of record / consigneeb. beneficial / real owner as established by evidencec. agent of those effecting importationd. those who knowingly cause importation

- “knowingly causes goods to be imported”covers domestic transactions where:

1. terms of importation are controlled byperson placing order & not by importer /consignee of record2. technical data, molds, equipment,production assistance, materials,components, parts are furnished by

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knowledge that they’ll be used inmanufacture of goods to be imported

- Compliance audit undertaken when:a. firms are selected by computer-aided risk mgmt

systemb. errors in import declaration are detected w/c if uncorrected, would result in substantial revenue lossor distortion of statistics

c. firms volunteer, approved by Commissioner - Brokers are audited only to

a. validate audits of importer clients AND/ORb. fill in info gaps revealed during audit of importer clients

- Importer / broker shall allow customs officer authorized byCommissioner to enter during ofc hrs any premises whererecords are kept to audit

a. document flowb. financial flowc. goods inventory flowd. other biz processes

- Customs officer may require importer / broker to makecertified copies of docs / extracts. Record taken must bereturned to custodian w/in 24 working hrs. Copies areadmissible in evidence as orig.- BoC, in disobedience, may invoke aid of RTC. Court maypunish contumacy / refusal as contempt. Denial of accesscreates presumption of inaccuracy and constitutes groundsfor re-assessment, w/o prejudice to other crim /

administrative sanctions.- Docs in foreign language must be w/ translation in English / Filipino, certified correct under oath by translator.

- Records required to be kept- By importer, at principal place of biz, for 3y fr filing of entry: all importation records and / or books of accts, biz /computer systems and customs commercial data

1. company structure; those submitted to SEC or Bureau of Domestic Trade2. ordering & purchase documentation3. shipping, import, export and transport docs4. mfg, stock & resale docs5. banking & acctg info6. BIR requirements7. storage media of above info

- By broker, at principal place of biz, for 3y fr importation:importation records incl requirements (3), (6), (7) fr importer

- Compliance audit operations- Pending creation of Post entry audit office (PEAO), auditis handled by interim Post Entry Audit Unit (PEAU).- Selecting firms for audit using a risk mgmt approach

1. voluntary – under Compliance Program to makecompliant those firms contributing up to 80% of customs revenue

- focus to determine whether systems &procedures generate compliant customsdeclarations- results in risk rating – most compliant receiveslowest risk rating; most compliant firms are givenSGL treatment w/ other benefits

2. enforced – conducted on firms not incl incompliance program and found to have complianceissues; firms are chosen fr among those tagged for audit

a. by Collectors, as result of VCRC review

b. by TIRAU, as result of analysis of ACOSdatabasec. as result of enforcement operations

- Profiling and Information Analysis1. downloading data on target importer & collating info2. profiling company’s activities3. identifying risk shipments4. sampling of exception reports accdg to nature of variances5. reviewing of past BoC decisions6. preparing report for Commissioner for basis togrant authority for field audit

- Audit Notification- Upon approval of Commissioner, Audit NotificationLetter (ANL) is sent to company, stating:

1. basis & purpose of audit2. date & time of pre-audit conference & audit3. members of customs audit team4. docs / records to be readied

5. request for tour / walkthrough6. attachments: general customs questionnaire,form requiring description of processes in importpurchasing & inventory systems (to be sent back

prior to pre-audit conference)- Audit Preparation / Audit plan

- PEAU makes general audit plan, aiming at1. getting info on goods flow, financial flow, order process flow & tracing, testing of sample entries2. validating completeness & correctness of info

- Pre-Audit Conference with AuditeeAudit team introduces themselves and presentsauthority. Audit team briefs company. Conferenceincludes factory / ofc tour as requested by BoC.

- Conduct of Audit Proper – Field Audit1. It involves exam of records & docs based on plan. Italso includes interview of personnel.2. Extent depends on nature of operations & level of reliance on internal controls of company relative tostorage & retrieval of info needed.3. It aims to verify valuation method, values,description / classification, quantity, country of origin,special rates if qualified.4. Brokers may be examined to validate audit findings.

5. Auditee must assist team. Team must completetask w/o unnecessary disruption of operation. PEAU,as approved by Commissioner, draws up audit manualto serve as guidelines.

- Exit ConferenceBefore final report, ff are discussed by auditors &auditee

1. audit findings2. areas identified for improvement3. calculation of underpayment, penalties4. other comments

- Audit Reporting- PEAU prepares Final Audit Report &Recommendation (FARR) submitted to Commissioner.- Upon approval, auditee is furnished copy.

- Audit Monitoring & Implementation1. PEAU maintains audit reports, records,communication.2. PEAU develops internal audit system to ensurecompletion of audit on time and implementation of recommendations.

- Administrative fines and penalties- Failure to keep records

1. administrative fine, 20% a.v. on articles w/ norecords2. hold delivery / release of subsequent imptd articlesto answer for fine3. criminal prosecution

- Failure and / or refusal to give full & free access1. punishment for contempt, contumacy or refusal fr court2. reassessment of importations3. administrative fine, 20% a.v. on articles w/ norecords4. hold delivery / release of subsequent imptd articles

to answer for fine5. criminal prosecution- Failure to pay correct duties & taxes on imptd goods

1. Negligence- administrative fine, not < 1/2 but not > 2Xrevenue loss

2. Gross negligence- administrative fine, not < 2 1/2 but not > 4Xrevenue loss

3. Fraud- administrative fine, not < 5X but not > 8Xrevenue loss

4. Criminal prosecution5. Except in fraud, Commissioner may, w/ approval of Sec of Finance, exercise power to compromise

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imposition of fine when importer makes voluntary &full disclosure of deficiency prior to commencement of audit on date fixed by Commissioner.

d. Jurisdiction of the Collector of Customs over Imporation

of Articles

Sec 1206, TCC

Jurisdiction of Collector Over Importation of Articles.- Collector shall

a. cause articles entering jurisdiction of district & destinedfor importation thru his port to be entered at customhouse

b. cause articles to be appraised & classifiedc. assess & collect duties, taxes, other chargesd. hold possession of imptd articles upon w/c duties, taxes,other charges haven’t been pd or secured to be pd,

disposing of same accdg to law.

Sec 1207, TCCJurisdiction of Collector Over Articles of Prohibited Importation,- Where articles are of prohibited importation OR subject toimportation only upon conditions prescribed, it is duty of Collector to exercise jurisdiction to prevent importation ORsecure compliance w/ legal requirements.

Jao v. CA- RTCs are devoid of competence to pass upon validity / regularity of seizure & forfeiture proceedings by BoC and to enjoin / interfere w/ these proceedings.- Collector, sitting in seizure & forfeiture proceedings has exclusive jurisdiction to hear and determine all questions on seizure / forfeiture.RTCs are precluded fr assuming cognizance over such matters eventhru petitions of certiorari, prohibition or mandamus.- Actions of Collector are appealable to Commissioner, whosedecision is subject to exclusive appellate jurisdiction of CTA and fromthere to CA*.- Even if seizure by Collector were illegal, such act doesn’t depriveBoC of jurisdiction.

* Under RA 1125 as amended by RA 3457 and 9282, CTA is now of the same level as CA.

Ponce Enrile v. Vinuya- The matter of seizure & forfeiture is the exclusive concern of Collector, a CFI lacking power in the premises.

- Collector’s decision is appealable to Commissioner whose decisionis appealable to CTA. Aggrieved party may appeal fr judgment of CTA to SC.- On grounds of public policy, legislators intended to divest CFI of prerogative to replevin prop w/c is subject of seizure & forfeiture proceedings for violation of TCC. Otherwise, actions for forfeiturecould easily be undermined.

Asian Terminals Inc v. Ricafort- Collector sitting in seizure & forfeiture proceedings had the exclusive jurisdiction to hear & determine all questions relating on seizure &forfeiture. RTC had no review powers over such proceedings; it’s theCTA.- Cited Jao v. CA- Forfeiture of seized goods in BoC is a proceeding against the goodsand not against the owner. It’s in the nature of a proceeding in rem,directed against the res or imptd articles and entails determination of the legality of their importation. It is, in legal contemplation, the prop

itself w/c commits the violation and is treated as the offender, w/oreference whatsoever to the character / conduct of the owner.

BOAC v. People- There is no conflict between Tariff and Customs Code and RA 6975,where regular PNP members are generally empowered to effect arrests. Jurisdiction of Commissioner is clearly w/ regard to customsduties. Should PNP suspect anything, it shld coordinate w/ BoC and obtain written authority fr Collector in order to conduct searches,seizures and arrests.

Remedies Available to the Taxpayer

a. Administrative Remedies

PROTEST CASES

CMO 3-2002

Procedure in Protest Cases Against Determination of CustomsValue and Tariff Classification- Collector of Customs

1. Upon final determination of customs value / tariff

classification by VCRC, importer adversely affected may fileformal protest w/ Collector thru Law Division to dispute

assessment at time when payment of amt claimed to be duethe gov’t is made and / or upon receipt of notice of decisionof VCRC by importer, or w/in 15d thereafter.2. Importer states in formal protest the reasons, and paysdocket fee.3. Collector forms panel to hear case. Panel is composed of

- hearing officer fr Law Division- COO V- COO III

4. Collector ensures that those involved in initialassessment aren’t members of panel.5. Panel hears parties. It’s authorized to issue notice of hearings, subpoenas, interlocutory orders, and to rcvevidence.6. Panel shall, w/in 30d fr 1st hearing, terminate proceedingsand recommend thru Chief, Law Division a decision toCollector for approval.7. If for meritorious reason, protest can’t be resolved w/in

30d, panel requests Collector for add’l time not exceeding30d w/in w/c to resolve.8. Collector renders final decision w/in 15d fr receipt of recommended decision and notifies importer in writing.9. If Collector renders decision adverse to gov’t, decision &records are automatically elevated to Commissioner for auto-rvw w/in 5d fr promulgation.10. If importer isn’t satisfied w/ Collector’s decision, he may,w/in 15d after notification in writing by Collector of hisaction / decision, file notice of appeal w/ Collector w/ copyfurnished the Commissioner.11. Collector shall immediately transmit all records toCommissioner who shall

- approve, modify, OR reverse AND- take steps, make orders to give effect to decision

- Commissioner of Customs12. Appeal to Commissioner is perfected upon

a. filing of notice of appealb. payment of appeal docket feec. memorandum of appeal at option of appellant w/in15d fr receipt of notice of decision

13. Appeal, regular of auto-rvw, is deliberated on bypermanent board of 3 created by Commissioner. Board ischaired by lawyer fr Appellate Division, Legal Service AND 2valuation experts fr Import & Assessment Service, asmembers who fill up the positions on rotation basis.14. Board recommends decision to Commissioner.15. Commissioner renders decision w/in 30d fr receipt of records fr Collector and notifies appellant or aggrieved inwriting.16. If w/in 30d fr receipt of record no decision byCommissioner is rendered, Commissioner is deemed touphold Collector’s decision. If adverse to gov’t, case iselevated to Sec of Finance for auto-rvw.17. If Commissioner decides in favor of gov’t and no appeal

is perfected w/in reglementary period w/ CTA, decision of Commissioner becomes final & executory.- Secretary of Finance

18. If Commissioner renders decision adverse to gov’t, it’selevated to Sec of Finance for auto-rvw; records are fwdedw/in 5d fr promulgation.19. If w/in 30d fr receipt of records by Sec of Finance, nodecision is rendered, decision under rwv is final &executory.20. Decision of Sec of Finance is final & executory, if noappeal is perfected w/in period provided.

- Court of Tax Appeals21. If importer isn’t satisfied by decision of Commissioner or Sec of Finance, he may file appeal w/ CTA, w/in 30d fr receipt of notice of decision.

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SEIZURE / FORFEITURE CASES

Sec 2530, TCC

Property Subject to Forfeiture Under Tariff and Customs Laws.- Vehicle, vessel, aircraft, cargo, article shall, under ff conditionsbe subjected to forfeiture:

a. vehicle, vessel, aircraft, cargo used unlawfully in import /

export OR in conveying and / or transporting contraband /smuggled articles in commercial quantities into or fr Phils

- Mere carrying / holding on board of contraband /smuggled articles in commercial quantities meansforfeiture provided that the vessel / aircraft isn’t usedas common carrier & as such carrier it isn’t chartered /leased.

b. vessel engaging in coastwise, w/c has on board anyarticle of foreign growth in excess of amt necessary for seastores, w/o such article having been properly entered /importedc. vessel / aircraft into w/c shall be transferred cargounladen contrary to law prior to arrival of importing vessel /aircraft at port of destinationd. cargo, stores, supplies of vessel / aircraft fr foreign port,unladen before arrival at port of destination w/o authority fr customs officials, except if unlading was

- due to accident, stress of weather, other necessityAND- subsequently approved by Collector

e. article fraudulently concealed or removed contrary to lawfr warehouse, container yard, container freight station under customs supervisionf.- article the importation / exportation of w/c is effected /attempted contrary to law- article of prohibited importation / exportation- articles w/c, in opinion of Collector, were used or enteredto be used as instruments in importation / exportation of former g. unmanifested article on vessel / aircraft if manifest isrequiredh. sea stores / aircraft stores adjudged by Collector to beexcessive, when duties assessed by Collector aren’t pd or secured upon assessmenti. package of imptd article found by examining official tocontain article not specified in invoice / entry, incl other packages purportedly containing imptd articles similar tothose declared in invoice or entry to be the contents of misdeclared package provided, Collector is of opinion thatmisdeclaration was contrary to law j. containers used as receptacle / device to conceal articlew/c is itself subject to forfeiture or w/c is designed toconceal character of such articlesk. conveyance used for transport of articles subject toforfeiture, w/ its equipage / trappings

- Mere conveyance of contraband / smuggled articlesby beast / vehicle is sufficient cause for outrightseizure & confiscation of beast / vehicle but forfeitureisn’t effected if owner of means of conveyance isengaged as common carrier and not chartered / leased,or his agent in charge thereof at the time, has noknowledge of the unlawful act.

l. article sought to be imported / exported1. w/o going thru customhouse, whether act was

consummated, frustrated, attempted2. failure to mention to customs official, articles foundin baggage of person arriving fr abroad3. on strength of false declaration / affidavit executedby owner, importer, exporter, consignee4. on strength of false invoice / other doc executed byowner, importer, exporter, consignee5. thru any other practice contrary to law by w/carticles was entered thru customhouse to the prejudiceof gov’t.

Sec 2531, TCCProperties Not Subject to Forfeiture in the Absence of PrimaFacie Evidence.

- Forfeiture isn’t effected if it’s established that owner / agent incharge of means of conveyance used has no knowledge of or participation in unlawful act.- Prima facie presumption exists against vessel, vehicle, aircraft

under ff circumstances1. conveyance was used for smuggling at least 2X before2. owner isn’t in biz for w/c conveyance is generally used3. owner isn’t financially in position to own such

conveyance

Sec 2532, TCCConditions Affecting Forfeiture of Article.- As regards article/s whereof importation / exportation is merelyattempted, forfeiture is effected only when & while article is incustody / jurisdiction of customs authorities OR subject tocontrol of importer, exporter, orig owner, consignee, agent of person effecting importation / exportation OR subject to controlof persons who shall rcv, conceal, buy, sell, transport the sameor aid in such acts, w/ knowledge that article was imptd, or wassubject of attempt at import / export contrary to law.

Sec 2533, TCCEnforcement of Lien, Administrative Fines, and Forfeitures.- Administrative fines & forfeitures are enforced by

- seizure of vehicle, vessel, aircraft, prop subject to fine /forfeiture AND- subsequent proceedings

- For enforcing lien for customs duties, fees, charges on seized /

confiscated article in custody of BIR, BIR is authorized to impose& enforce said lien.

Sec 2534, TCCSeizure of Vessel or Aircraft for Delinquency of Owner or Officer.- When owner or responsible officer of vessel / aircraft becomesliable to be fined under tariff & customs laws on account of delinquency in discharge of duty, the vessel / aircraft itself maybe seized & subjected in admin proceeding for satisfaction of fine for w/c person would’ve been liable.

Sec 2535, TCCBurden of Proof in Seizure and/or Forfeiture.- In proceedings for seizure and / or forfeiture, burden of proof lies upon claimant, provided probable cause shall be first shownfor institution of proceedings AND seizure and / or forfeiture wasmade under circumstances in this Code.

Sec 2536, TCCSeizure of Other Articles.- Commissioner of Customs and Collector and / or any other customs officer w/ prior authorization in writing byCommissioner, may demand evidence of payment of duties &taxes on foreign articles openly offered for sale or kept instorage.- If no such evidence is produced, such articles may be seized &subjected to forfeiture proceedings.- During such proceedings, person / entity for whom articles havebeen seized is given opportunity to prove source of articles &payment of duties & taxes.

CAO 9-93RULES & REGULATIONS GOVERNING ISSUANCE OFWARRANTS OF SEIZURE & DETENTION, THE CONDUCT OFSEIZURE PROCEEDINGS AND PROCEDURE IN APPEALS TO

THE COMMISSIONER OF CUSTOMS AND TO THE SECRERARYOF FINANCE- General Provisions

- Collector, upon making seizure, issues warrant for detention of prop.- If owner / importer desires to secure release of prop for legit use, Collector surrenders it upon filing of cash bond inamt fixed by Collector subject to ff conditions

a. cash bond shall not be < appraised value of article +fine, expenses, costsb. no prima facie evidence of fraudc. importation isn’t prohibited by lawd. release under bond was approved by Commissioner

- Release of prop under bond doesn’t relieve owner /importer fr crim liability.

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- Grounds for Issuance of WSD Proceedings Before HearingOfficers

- Upon probable cause that articles were impt / attempted tobe exported contrary to tariff & customs laws, Collector

issues Warrant of Seizure and Detention.- In formal hearing, uncontroverted facts are stipulated on &issues are agreed upon. Determination is made WONthere’s violation of law fr facts & evidence presented.

District Collector renders decision.- Review by the Commissioner

- Party aggrieved by decision / action of Collector may w/in15d after receipt of notice in writing of action / decision of Collector, file written notice to Collector, cc Commissioner of intent to appeal.- Upon perfection of appeal, Collector transmits records toCommissioner.- Appeal filed beyond 15d is dismissed.- Commissioner approves, modifies, reverses Collector.- Any action of Collector adverse to gov’t is automaticallyrvwd by Commissioner. Records are elevated w/in 5d fr promulgation of decision of Collector. Fr receipt of records,Commissioner renders decision on auto-rvw w/in 30d.

- Decision of Commissioner reversing adversedecision of Collector on auto-rvw is final & executory.- If Commissioner affirms adverse decision of Collector, records are elevated to Sec of Finance w/in5d fr promulgation.- If Commissioner fails to render decision w/in 30d fr

receipt of records the case is deemed automaticallyappealed to Sec of Finance. Records are elevated w/in5d after lapse of 30d rvw period.

- If adverse decision of Collector is affirmed bySec of Finance, affirmed decision becomes final.

- If value of article is P5M or more, adverse decision of Collector is deemed automatically appealed to Sec of Finance. If w/in 30d no decision is rendered,Commissioner’s or Collector’s decision becomes final &executory.

Pacis v. PamaranExcept in the case of the search of a dwelling house, personsexercising police authority under the customs law may effect search &seizure w/o search warrant in enforcement of customs laws.

REVIEW OF PROTEST / SEIZURE CASES BY THECOMMISSIONER OF CUSTOMS / SECRETARY OF FINANCE

REVIEW UPON REQUEST OF TAXPAYER

Sec 2309 and 2313, TCC, supra

AUTOMATIC REVIEW BY THE COMMISSIONER AND THE

SECRETARY OF FINANCE

Sec 2309 and 2313, TCC, supra

b. Judicial Remedies

SUPERVISION AND CONTROL OVER JUDICIAL PROCEEDINGS

Sec 2401, TCC, supra

REVIEW BY THE CTA



Sec 7, RA 1125 as amended by RA 9282* Refer to NIRC Remedies.

APPEAL FROM THE CTA DIVISION TO CTA EN BANC

APPEAL TO THE SC

Claim for Refund


Correction of Errors. - Refund of Excess Payments.- Manifest clerical errors made in invoice or entry, errors in returnof wt, measure & gauge, when duly certified to, under penaltiesof falsification / perjury, by surveyor or examining official AND

errors in dist’n of charges on invoices not involving any questionof law & certified to, under penalties of falsification / perjury, byexamining official, may be corrected in computation of duties, if errors be discovered before payments of duties OR if discovered

w/in 1y after final liquidation, upon written request & notice of error fr importer OR upon statement of error certified by

Collector.- For purpose of correcting errors, Collector is authorized toreliquidate entries & collect add’l charges, or make refunds onstatement of errors w/in statutory time limit.

Sec 1708, TCC, supraClaim for Refund of Duties and Taxes and Mode of Payment.- All claims for refund of duties are made in writing ANDforwarded to Collector to whom duties are pd, who upon receiptof claim, shall verify the same, and if found to be correct and inaccordance w/ law, shall certify the same to Commissioner w/recommendation & all necessary papers.- Upon receipt by Commissioner of certified claim he shall causethe same to be pd if correct.- If as result of refund of customs duties there would necessarilyresult corresponding refund of internal revenue taxes, Collector shall likewise certify the same to Commissioner who shall causetaxes to be pd, refunded, or tax credited in favor of importer, w/

advice to Commissioner of Internal Revenue.

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