N. JUDICIAL PROCEEDINGS

1. Actions instituted under the authority of the Tariff and Customs Code shall be brought in the name of the Philippine government and conducted by customs. Approval of the Commissioner is required in an action for recovery of duties.

2. Aggrieved party may appeal to the CTA. If no appeal, ruling of the Commissioner is final and conclusive.

3. BOC has exclusive jurisdiction over imported goods for enforcement of custom laws. Seizure and forfeiture is for the Collector and then the Commissioner.

4. Exclusive original jurisdiction of the Collector pertains only to goods seized pursuant to the authority under the Tariff and Customs Code.

O. SURCHARGES, FINES AND FORFEITURES

1. Violations subject to surcharges, fines and forfeitures2. Properties subject to forfeiture

a. Unmanifested cargo which is unloaded is subject to forfeitureb. Possession of smuggled articles is sufficient to authorize

convictionc. Illegally withdrawn articles may be validly seized

3. Prima facie presumption shall exist:a. If the conveyance has been used for smuggling at least twice

beforeb. If the owner is not in the business for which the conveyance is

generally usedc. If the owner is not financially in a position to own such

conveyanced. Common carriers if the owner has knowledge of its use in

smuggling4. Forfeiture shall be effected only when and while the article is in the

custody or within the jurisdiction of the customs authorities5. Administrative fines and forfeitures shall be enforced by the seizure of

the vehicle, vessel, aircraft6. Vessel or aircraft may be seized for delinquency of owner7. Burden of proof shall lie upon the claimant8. Commissioner may authorize seizure of other articles if no evidence

of payment of duties is shown

9. False or fraudulent practice to make an entry of article shall be punished

a. Undervaluation – reduce duty, escape filing of formal entry, circumvent quota restrictions

i. False invoice descriptionii. False country of origin

b. Overvaluationi. Avoid imposition of anti-dumping dutiesii. Reduce internal revenue tax base

c. Forfeiture in case of fraud requisites:i. Wrongful making of any declaration or invoiceii. Such declaration or invoice is false

P. DISPOSITION OF PROPERTY IN CUSTOMS CUSTODY

1. Property under customs custody shall be subject to sale:a. Abandoned articlesb. Articles entered under warehousing entry not withdrawn nor

duties or taxes paidc. Seized property after liability to sale shall have been

establishedd. Any article subject to a valid lien for customs duties

2. Property shall be sold or disposed of upon the order of the Collector of the port where the property in question is found.

3. Property shall be sold at public auction after 10 days notice. No customs official or employee shall be allowed to bid.

4. The following charges shall be paid from the proceeds of the sale in the order named:

a. Expenses of appraisal, advertisement and saleb. Duties except in the case of abandoned and forfeited articlesc. Taxes and other chargesd. Government storage chargese. Arrastre and private storage chargesf. Freight, lighterage or general average, on the voyage of

importation5. Any surplus remaining after the satisfaction of all unlawful charges

shall be retained by the Collector for 10 days subject to the call of the owner.

6. Perishable articles may be sold at auction, after public notice, not exceeding 3 days.

7. Disposition of articles unfit for use or sale or injurious to public health shall be ordered by the Collector in such a manner as the case may require.

8. Disposition of contraband:a. Ammunition and weapons to the AFPb. Highly dangerous shall be destroyedc. Contraband coin and bullion to BSPd. Other contraband of commercial value and capable of

legitimate use may be sold under such restrictions9. Disposition of articles for want of bidders shall be used by BOC to

promote collection of taxes or channeled to official use of other offices.

10. Dangerous explosives shall be subject to disposition in the discretion of the Commissioner.

11. Disposition of Smuggled Articles:a. Written or printed articles inciting treason or rebellionb. Written or printed articles or other representation of an obscene

or immoral characterc. Articles, instruments, drugs for unlawful abortiond. Apparatus or devices used in gamblinge. Opium pipes

Q. OFFENSES

1. Failure to report fraud is punishable.2. Statutory offenses of officials and employees:

a. Extortion or willful oppressionb. Those who knowingly demand other or greater sums than are

authorized by lawc. Those who willfully neglect to give receiptsd. Those who willfully make opportunity for any person to defraud

the customs revenuee. Those who permit the violation of the lawf. Those who make or sign any false entry in any bookg. Those who fail to report any fraudh. Those who without authority attempt to collect paymenti. Those who disclose confidential information without authority

3. Offenses punishable under the Tariff and Customs Code:a. Concealment or destruction of evidence of fraudb. Breaking of seal on car

c. Alteration of marks on any package of warehoused articlesd. Fraudulent opening or entering of warehousee. Fraudulent removal or concealment of warehoused articlesf. Violation of custom laws and regulations in general

4. Liability for unlawful importationa. Duty to declareb. Administrative penalty is separate and distinct of criminal

liability for smugglingc. A Penal provision:

i. Fraudulently importsii. Assists in so doingiii. Transportation, concealment, sale

d. Kinds of smuggling1. Outright – secretly contrary to law without paying

duties imposed2. Technical – fraudulent or erroneous declaration to

avoid dutiesii. Contraband – refers to articles of prohibited importations

and exportations.iii. Elements

1. Fraudulently or knowingly imported contrary to law2. The respondent if not the importer himself must

have in any manner facilitated the transportation, concealment or sale of the merchandise

3. Knowledge or possession4. Knowledge that the goods have been imported

contrary to lawiv. Mere possession is enough to convict and payment of tax

due after apprehension is not a defense

R. SUMMARY OF CARGO CLEARANCE AND REMEDIES

1. Cargo clearance/Classification procedurea. Importer shall accomplish IED and pay

advance duty to AABb. IEIRD to be submitted to BOC along with

other formsc. Computation of duties and taxesd. BOC conducts review of submitted documents

e. Importer given 10 days to justify accuracy of declared value

f. VCRC will calendar the classification issue for deliberation

g. Elevation to CVCRCh. Resolutioni. Endorsement and implementationj. Subject to only one MR

2. Remedies of the BOCa. Tax lienb. Administrative fines and forfeituresc. Reduction of customs duties/compromised. Search, Seizure, and Arrest

i. Collector of customs has exclusive jurisdiction over seizure and forfeiture

ii. In case of grave abuse of discretion, an appeal lies to the Commissioner then the CTA

iii. Not criminal in nature1. Proof beyond reasonable doubt

not requirediv. Warrant is sine qua non condition

before any forfeiture proceedinge. Judicial remedies

3. Remedies of the taxpayera. Protest

i. Writingii. Point out the particular decision or rulingiii. State the groundsiv. Limited to the subject matterv. Filed within 15 days after paymentvi. Furnish samples of goods

b. Refundi. Missing packagesii. Deficiencies in contentsiii. Lost articlesiv. Dead or injured animalsv. Manifest clerical errorsvi. Drawback

c. Settlement of any seizure by payment of fine or redemption

i. Instance of fraud1. Use of spurious documents2. Prima facie evidence of fraud3. False machinations, concealment

of facts4. Similar cases

d. Appeal to the Commissioner within 15 dayse. Abandonmentf. Appeal to the CTA within 30 days

i. BOC liable to pay the value if shipment can no longer be delivered without interest