customs assessment and tentative release

CUSTOMS ASSESSMENT:

BSCA FORMS:

MICHAEL G. TEDE, C.B.

FORMAL ENTRY DIVISION (FED):

FED-Receiving Section:

Receive, check and verify section assignment printed at SAD and attach documents of importation;

Ascertain that the required documents are attached to the entry and examine said documents for correctness and authenticity;

FORMAL ENTRY DIVISION (FED):

FED-Receiving Section:

Submit complete entry at the concern COO V for the assignment of COO III;

FORMAL ENTRY DIVISION (FED):

The concern COO III and COO V shall examine, classify and appraise imported articles covered by formal entry and assess customs duties and taxes and other charges, subject to existing customs laws and regulations in so far as the release of the shipment is concerned;

FORMAL ENTRY DIVISION (FED):

Recommend the institution of seizure and forfeiture proceedings against cargoes found to be misdeclared or undervalued and banned and regulated or prohibited merchandise in accordance with existing laws, rules and regulations;

BONDS DIVISION:

Control and supervise the processing, approval and/or cancellation of customs bond;

Process all entries covered by

bonds before any delivery and withdrawal of the shipment could be effected;

BONDS DIVISION:

Device standardized surety forms in conformity with the requirements of the TCCP and Insurance Code;

Keep in custody all bonds and other pertinent public documents

BONDS DIVISION:

Collect and bonded obligations through appropriate judicial and/or administrative measures in coordination with Law Division whenever necessary;

COLLECTION/CASH DIVISION:

Receive payments of additional customs duties, taxes and other charges;

Receive payment for the accreditation of importer and broker;

Remit daily collection to the National Treasury

LIQUIDATION AND BILLING DIVISION (LBD):

Verify, check and review computations of formal, informal and withdrawal entries based on applicable foreign exchange rates, the correct dutiable and taxable values taking into account the returns made by the examiners and appraiser as to descriptions of the commodities, tariff classification and rate of duty;

LIQUIDATION AND BILLING DIVISION (LBD):

Maintain daily records of all liquidated entries and post in the public corridors list of entries found with discrepancies and indicate therein the name of importer and serial number of entries;

Compute fines and surcharges;

LIQUIDATION AND BILLING DIVISION (LBD):

Prepare and transmit letters of demand to importers, brokers, government agencies and send bill/statement of accounts for all receivables including short duties, taxes, fines other charges due to the Bureau;

LIQUIDATION AND BILLING DIVISION (LBD):

Prepare statement of refunds and tax credits and notify importers concerned accordingly;

Compute, record, control and coordinate collections of amounts remaining unpaid and unsettled;

LIQUIDATION AND BILLING DIVISION (LBD):

Forward to Law Division all dockets of cases uncollected accounts for possible court action after the prescribed period for compliance has lapsed and payment has not been made;

LIQUIDATION AND BILLING DIVISION (LBD):

Maintain and affect the systems of accounting for all entries received and ensure security and control over un-liquidated entries kept in the Division;

CUSTOMS POSTAL DIVISION:

Coordinate with the Foreign Surface Mail Distribution Center of the Bureau of Post in monitoring movement and transfer of foreign parcels/mail bags from the Piers to the Bureau of Post;

CUSTOMS POSTAL DIVISION:

Examine, classify and appraise imported merchandise received through the mails;

Authorize the release of imported parcels upon compliance with existing customs/postal laws, rules and regulations;

CUSTOMS POSTAL DIVISION:

Examine and appraise exportable items exported through the mails verifying and checking the correctness of documents submitted whether it is in accordance with the existing customs/postal law, rules and regulations and other related laws;

CUSTOMS POSTAL DIVISION:

Recommend the institutions of seizure and forfeiture proceedings against cargoes found to be misdeclared or undervalued and banned, prohibited, abandoned/unclaimed imported merchandise in accordance with customs and /or postal laws, rules and regulations;

CUSTOMS POSTAL DIVISION:

Provide system of monitoring and reporting of parcels received and transferred to customs postal stations;

WAREHOUSING ASSESSMENT DIVISION (WAD-POM / GARMENTS)SPECIAL WAREHOUSING ASSESSMENT UNIT (SWAU-MICP / COMMON BONDED)

Examine, classify and appraise imported raw materials/goods destined for bonded warehouse;

Check and verify the correctness of all returns and warehousing entries with regards to tariff classification, rate of duty and description of imported goods as reflecting in the importers list of importables;

WAREHOUSING ASSESSMENT DIVISION (WAD-POM / GARMENTS)SPECIAL WAREHOUSING ASSESSMENT UNIT (SWAU-MICP / COMMON BONDED)

Compute and determine the correct dutiable and taxable values of the imported goods;

Recommend the cargoes found to be misdeclared or undervalued and banned, prohibited, abandoned/unclaimed imported merchandise in accordance with existing laws, rules and regulations;

THE VALUATION AND CLSSIFICATION REVIEW COMMITTEE (VCRC)

Officers and members (each Collection Districts) Chairman - District Collector of

CustomsVice Chairman- Deputy Collector for

AssessmentMember - Chief, FED or

equivalent unitMembers - concerned COO V

and COO III

Functions of the VCRC:

To determine if there is a genuine valuation issue;

Functions of the VCRC:

When a genuine valuation issue exists, to determine whether delay will ensure in the determination of customs value;

Functions of the VCRC:

To process request for tentative release, when applicable;

To re-route import entry when necessary to the red channel;

Functions of the VCRC:

To determine applicable method of valuation including computation of duties and taxes;

To perform such other functions as may be necessary to effectively carry out its mandate;

Functions of the VCRC:

Under OLD procedures, Import entries shall be coursed to the VCRC when hit by the Valuation Screen under the selectivity system (ACOS – “VALUATION”). The COO V shall fill up the Request for VCRC Review Form and immediately forward the same together with the import entry to the VCRC.

Functions of the VCRC:

Note: The COO V shall not decide whether or not the value of the shipment is doubtable.

Only the VCRC has the power to cast doubt on the value of the shipment and decide whether a genuine valuation issue exists or not.

Functions of the VCRC:

Under the new system – E2M, there is no valuation screen once the Broker lodged the import entry and has good response with the Bureau of Customs

Functions of the VCRC:

Therefore, the concerned COO V and COO III shall scrutiny the valuation issue, if justified such import entry shall be endorsed by the COO V and COO III to the VCRC with the appropriate justification and shall be released tentatively, with the Transaction Value accepted provisionally.

A guarantee will however not be required in this case and the procedures for tentative release are stated as follows:

A genuine valuation issue exists when: The shipment value is questioned by the

concerned COO V and COO III; At least one of the elements under the

Transaction Value Method is inconsistent with the declaration and/or is missing; and/or

The VCRC establishes that the method of valuation used by the declarant is incorrect.

A guarantee will however not be required in this case and the procedures for tentative release are stated as follows:

For purposes of the above, the elements under method 1 that should be reviewed are the following: Sale for Export; Price Actually Paid or Payable; Restrictions to the Disposition of the Goods

being Valued; Conditions of Sale (for which the value cannot

be determined);

A guarantee will however not be required in this case and the procedures for tentative release are stated as follows:

Proceeds of any subsequent resale/disposal of the goods being valued;

Relationship between the buyer and the seller Commissions and Brokerage fees; Assists; Royalties and License fees; Packing and Container costs and charges; Insurance; and Transport Costs and charges

Procedures at the VCRC:

VCRC SECRETARIAT Received Request for VCRC Review Form

properly filled up together with the Entry referred by the concerned COO III and COO V and record the same in a pre-numbered logbook;

Procedures at the VCRC:

The Evaluator shall perform the following:

▪ Check the value range;

▪ Require importer to submit documents, if warranted, such as sales contract, evidence of payment, certificate of discount, and other documents to verify price actually paid or payable

Procedures at the VCRC:

The Evaluator shall perform the following:

▪ Initially determine if the article is correctly classified based on the data warehouse;

▪ From the documents gathered, initially determine if there is a genuine valuation issue

Procedures at the VCRC:

The Head, VCRC Secretariat shall be responsible for the following:

▪ Maintenance of logbook which shall contain the docket number assigned to a case; the date and time when the VCRC Request for Review Form has been received by the secretariat and by whom;

Procedures at the VCRC:

▪ Preparation of the minutes of the VCRC meetings which shall, among others, indicate the following:

▪ Facts of the case▪ Issue▪ Findings of the evaluators on value and classification▪ Excerpts of the position paper of the parties involved, if any

Procedures at the VCRC:

Computation of the amount of the guarantee for purposes of tentative release

Procedures at the VCRC:

The VCRC shall deliberate on the issues involved including the determination whether a genuine valuation issue exists or not

Procedures at the VCRC:

If a genuine valuation issue exists, the VCRC shall provisionally determine the appropriate value based on the applicable valuation method and shall inform the importer/broker accordingly

Procedures at the VCRC:

If the provisional value is acceptable to the importer/broker, he may pay the assessed duties and taxes based therefrom and the Collector of Customs shall cause the release of shipment thereafter

Procedures at the VCRC:

If the provisional value is unacceptable to the importer/broker, the shipment may nevertheless be released through tentative release if there will be a delay in the resolution of the case. (note: “delay” means the resolution of issue would take more than 16 working hours)

Procedures at the VCRC:

If shipment that will be processed under the tentative release, an importer shall be given a period of 15 days, extendible for a period not exceeding another 15 days for reasonable cause, from receipt of notice to comply with the requirements needed (e.g. contract of sale, royalty agreement, etc.)

Procedures at the VCRC:

The VCRC, shall resolved the issue within 24 hours upon receipt of the documentary requirements.

Failure to comply with the documentary requirements as directed by the VCRC within the period provided shall be a ground for rejecting the valuation method as declared.

Procedures at the VCRC:

All decision of the VCRC shall furnish the following office:

▪The Commissioner of Customs▪Deputy Commissioner for Assessment▪ Import and Assessment Service

Procedures at the VCRC:

The Collection Division shall cause the release of shipments through OLRS based on the results of payment verification. And also shall insure that the required bond has been posted before causing the release of the subject shipment through OLRS. Further, shall return the import entry to the VCRC for appropriate disposition

CMO 7-2006 ESTABLISHMENT OF CENTRAL VALUATION CLASSIFICATION REVIEW AND RULING COMMITTEE (CVCRRC)

This Order was issued to expedite the resolution of cases at the Valuation and Classification Review Committee (VCRC) of each Port,

CMO 7-2006 ESTABLISHMENT OF CENTRAL VALUATION CLASSIFICATION REVIEW AND RULING COMMITTEE (CVCRRC)

to ensure uniformity and consistency in the application of the principles and rules of the Transaction Value System and Harmonized System in the resolution of VCRC cases in all Ports of Entry

CMO 7-2006 ESTABLISHMENT OF CENTRAL VALUATION CLASSIFICATION REVIEW AND RULING COMMITTEE (CVCRRC)

in the import clearance process and by way of providing technical support to the post entry audit functions of the BOC, now BIR.

CMO 7-2006 ESTABLISHMENT OF CENTRAL VALUATION CLASSIFICATION REVIEW AND RULING COMMITTEE (CVCRRC)

This Order shall apply to all importation with assessment issues brought before the VCRC pursuant to CMO 37-2001

CMO 7-2006 ESTABLISHMENT OF CENTRAL VALUATION CLASSIFICATION REVIEW AND RULING COMMITTEE (CVCRRC)

To request for customs valuation or tariff classification rulings or opinions involving no actual shipments and queries relating to the application of the transaction Value and the Harmonized Tariff Systems, including preferential or special rates

CMO 7-2006 ESTABLISHMENT OF CENTRAL VALUATION CLASSIFICATION REVIEW AND RULING COMMITTEE (CVCRRC)

This Order supplement CMO 37-2001 which is amended to the extent that any of its provisions is not consistent herewith

CMO 7-2006 ESTABLISHMENT OF CENTRAL VALUATION CLASSIFICATION REVIEW AND RULING COMMITTEE (CVCRRC)

CMO 25-96 and all other Orders, Memoranda, Circulars or parts thereof which are inconsistent with this Order are likewise deemed superseded and/or modified accordingly

Composition of CVCRRC:

Chairman - Commissioner of Customs

Chief Executive Officer (CEO) - Deputy Commissioner for Assessment

and Operation Coordinating Group (AOCG)

Vice-CEO- Director, Import Assessment Service (IAS)

Member - Deputy Collectors for Assessment of POM, MICP and NAIA

Member - Chief, Valuation and Classification Division (VCD)

Composition of CVCRRC:

The decision of the CVCRRC is subject to only one motion for reconsideration which should be filed within five (5) working days from actual or constructive receipt of the CVCRRC resolution.

Composition of CVCRRC:

When no motion is timely filed or when the same was denied, the CVCRRC resolution shall become final at the Assessment level.

Composition of CVCRRC:

However, the aggrieved importer may pay under formal protest pursuant to Section 2308 of the TCCP, as amended.

END…..

Thank you very much….