Lecture

Customs 4

Section 801-813

 When warehouses are designated and established?

When the business of the port requires such facilities

 Authority of Bureau of Customs for designating and establishing warehouses

The District Collector, subject to the approval of the Commissioner, shall
designate and establish warehouses for use as public and private bonded
warehouses, yards, or for other special purposes

 Supervision by the Bureau of Customs of warehouses

All such warehouses and premises shall be subject to the supervision of
the District Collector, who shall impose such conditions as may be deemed
necessary for the protection of the revenue and of the goods therein

 CMTA classification of warehouses

1. Manufacturing. Manufacturing customs bonded warehouse may be of the
following types:
a. Miscellaneous customs bonded warehouse
- is a warehouse facility licensed by the BOC to import, receive and
store raw materials, except garment and textile, for manufacture
into finished products for export

b. Customs common bonded warehouse

- is a warehouse facility licensed by the BOC alone, and jointly with
GTIS (Garment and Textile Imports Services) for garment industry,
to import, receive, and store raw materials, accessories, spare
parts, supplies, accessories and packaging materials for the
account of its accredited members for manufacture into finished
products for export

*GTIS – government agency attached to the Department of Trade

and Industry mandated to assist the BOC in granting license to be
an operator or to be member or subcontractor of a warehouse
facility involved in the manufacture of garments or textiles for export

c. Industry—specific bonded warehouse

- is a warehouse facility duly licensed by the BOC to import under
bond and under its name and account raw materials (except fibers,
yarns, fabrics and accessories for the manufacture of garments) for
storage and subsequent sale/transfer to the following where these
shall be manufactured into export products by:
1. Licensed client/end-user
2. Customs Bonded Manufacturing Warehouse; or
3. PEZA of Freeport locator

*What are those ICBWs?

1. Microelectronics
2. Food products
3. Motor vehicle parts and components
4. Raw materials for furniture and home furnishings

*Licensed client/end-user – a natural or juridical person licensed

by the BOC to be a client/end-user of ICBW
 4. Non-manufacturing. Non-manufacturing customs bonded warehouses
include:
a. Public bonded warehouse
- is a warehouse facility licensed by the BOC to receive and store
general cargoes for exportation, transfer to another customs
bonded warehouse, PEZA or Freeport-registered enterprise, or for
local consumption, in the same state when the cargoes were
imported.

b. Private bonded warehouse

- is a warehouse facility licensed by the BOC to import, receive and
store articles for its production intended for domestic consumption,
withdrawal of which shall be made only upon payment of duties and
taxes and other charges due thereon.

c. Other customs facilities

c.1. Container Yard (CY) - is the place where container carriers
store containers and chassis, accept or deliver loaded containers
and lend out empty containers or receive returned empty containers

c. 2. Container Freight Station (CFS) - is the designated facility at

which a shipping company accepts and stores small-lot cargoes,
assorts and consolidates cargo into containers by destination, and
also devans small-lot consolidated cargo out of the containers for
sorting and delivery to consignees

 Application to Operate a Customs Warehouse

1. Application filed with District Collector where warehouse is located
2. Collector examines the premises of proposed warehouse
3. Collector, with Commissioner’s approval, authorizes establishment of
warehouse
4. Collector accepts required security for warehouse’s operation and
maintenance
5. Operator pays an annual supervision fee

 Who is/are responsible for payment of import taxes in cases of loss of the
imported articles stored in the CBW?
The operators of the CBW concerned. The government is immune from
any responsibility with respect to the safekeeping of the stored articles in the
CBW

 Discontinuance of warehouses or suspension/revocation of licenses

1. In cases of public bonded warehouse, it may be discontinued by the
Collector.
2. In the case private warehouse, upon receipt of written request to that effect
from the operator, provided that all requirements of the laws and regulations
have been complied with by said operator

 Effectivity of warehouse discontinuance

Only when approved by the District Collector, who shall subsequently
inform the Commissioner in writing, within 10 days, of such action.

 Warehousing bonds or warehousing security on goods stored in CBWs

District Collector shall require the importer to post a sufficient security
equal to 100% of duties, taxes and other charges condition upon:
 1. the withdrawal of the goods within the period prescribed by
Section 811 of this Act; or
2. the payment of duties, taxes and other charges; and
3. compliance with all importation requirements

 How may imported goods be withdrawn from CBWs?

Upon filing of the withdrawal permit, together with any related document

 Reasons for withdrawal

1. Consumption
2. Transit
3. Exportation

 How may goods from CFWs be released?

Upon electronic lodgement, which should be made within the period
specified under Section 407, CMTA

 Storage Limit in CBW

Articles duly entered for warehousing may remain in the CBW for a
maximum period of one (1) year from the time of its arrival thereat. For
perishable goods, the storage period shall be three (3) months from the date of
arrival, which for valid reasons may be extended to another three (3) months.

 What happen to articles not withdrawn beyond the storage limit

Articles are deemed abandoned and shall be sold at public auction.

 Who shall keep records of all goods delivered to a CBW

A report shall be made by the CBW operator containing a detailed
statement of all imported goods entered and withdrawn from the CBW. Such
report is to be submitted to the Bureau.

 What should be kept by a CBW operator?

1. Documents concerning the operation of CBW
2. Books concerning the operation of CBW
3. Records of accounts concerning the operation of CBW

 Period to keep records

All documents shall be kept for three (3) years

References:

Domondon, A & Domondon, R. (2016). Guide to Tariff and Customs Laws. Quezon City.
Central Book Supply, Inc.

Nague, F. (2005). Handbook on the Tariff and Customs Code of the Philippines, as
amended, and the Customs Brokers Act of 2004 (RA 9280) and its IRR . Quezon
City. Central Book Supply, Inc.