REPUBLIC ACT 10863 Philippine territory and are intended to remain

CUSTOMS MODERNIZATION AND TARIFF ACT permanently outside it.

- (Mag export kag product outside the country
SECTION 100. SHORT TITLE and permanent nato sa laing country)
This act shall be known as the Customs Modernization  Admission
and Tariff Act. - refers to the act of bringing imported goods
RA 10863 otherwise known as CMTA was enacted into directly or through transit into a free zone.
law on May 30,  Airway Bill (AWB)
2016. The law become effective on June 16, 2016, - refers to a transport document for airfreight
fifteen (15) days after it was published in Manila Bulletin used by airlines and international freight
on June 1, 2016. The CMTA contains 18 titles, 43 forwarders which specify the holder or
chapters, and 314 sections. consignee of the bill who has the right to claim
delivery of the goods when they arrive at the
SECTION 101. DECLARATION OF POLICY port of destination.
It is hereby declared the policy of the State to protect - (Ang airlines ga issue ug mga bills ug
and enhance government revenue, institute fair and responsible for cargos/shipment. In short
transparent customs and tariff management that will through airlines ang transaction)
efficiently facilitate international trade, prevent and  Appeal
curtail any form of customs fraud and illegal acts, and - refers to the remedy by which a person who is
modernize customs and tariff administration. Towards aggrieved or adversely affected by any action,
this end, the State shall: decision, order, or omission of the Bureau,
a) Develop and implement programs for the seeks redress before the Bureau, the Secretary
continuous enhancement of customs systems of Finance, or competent court, as the case may
and processes that will harmonize customs be.
procedures. - (ga seek k ug guidance sa mga superiors nimo)
b) Adopt clear and transparent customs rules,  Assessment
regulations, policies and procedures, consistent - refers to the process of determining the
with international standards and customs best amount of duties and taxes and other charges
practices. due on imported and exported goods.
c) Establish a regime of transparency of and (Computation of duties and taxes)
accessibility to customs information, customs  Authorized Economic Operator (ABO)
laws, rules, regulations, administrative policies, - refers to the importer, exporter, customs
procedures and practices, in order to ensure broker, forwarder, freight forwarder, transport
informed and diligent compliance with customs provider, and any other entity duly accredited
practices and procedures by stakeholders. by the Bureau based on the World Customs
d) Consult, coordinate and cooperate with other Organization (WCO) Framework of Standards
government agencies and the private sector in to Secure and Facilitate Global Trade, the
implementing and developing customs policy Revised Kyoto Convention (RKC), the WCO
e) Provide a fair and expeditious administrative Supply Chain Management Guidelines and the
and judicial appellate remedy for customs various national best practices to promote
related grievances and matters. trade facilitation and to provide a seamless
f) Employ modern practices in customs movement of goods across borders through
administration and utilize information and secure international trade supply chains with
communications technology in the the use of risk management and modern
implementation of customs functions technology.( The clients of Bureau of Customs)
g) (g) Institute professionalism and meritocracy in  Bill of Lading (B/L)
customs tax administration by attracting and - refers to a transport document issued by
retaining competent and capable customs shipping lines, carriers and international freight
officers and personnel to enforce the provisions forwarders or non-vessel operating common
of this Act. carrier for water-borne freight. The holder or
SECTION 102. DEFINITION OF TERMS consignee of the bill has the right to claim
 Abatement delivery of the goods at the port of destination.
- refers to the reduction or diminution, in whole (Ang ports ga issue ug mga bills ug responsible
or in part, of duties and taxes where payment for cargos/shipment. In short through ship or
has not been made any land vehicle ang mode of transportation
 Actual or Outright Exportation sa usa ka transaction).
- refers to the customs procedure applicable to
goods which, being in free circulation, leave the
 employee authorized to perform a specific
 Bureau function of the Bureau as provided in this Act;
- refers to the Bureau of Customs  Customs Territory
 Carrier - refers to areas in the Philippines where
- refers to the person actually transporting customs and tariff laws may be enforced
goods or in charge of or responsible for the - Ex: Ports and Airlines
operation of the means of transport such as
airlines, shipping lines, freight forwarders,  Entry
cargo consolidators, non-vessel operating - refers to the act, documentation and process of
common carriers and other international bringing imported goods into the customs
transport operators ( Nagabyahe sa imong territory, including goods coming from free
product). zones
 Clearance  Exportation
- refers to the completion of customs and other - refers to the act, documentation, and process of
government formalities necessary to allow bringing goods out of Philippine territory. (mag
goods to enter for consumption, warehousing, pagawas ug product sa Philippines)
transit or transshipment, or to be exported or  Export Declaration
placed under another customs procedure. - refers to a statement made in the manner
( mga documents na need nimo eh complete or prescribed by the Bureau and other appropriate
authorization para maging legal ang shipment agencies, by which the persons concerned
sa imong product). indicate the procedure to be observed for
 Commission taking out or causing to be taken out any
- refers to the Tariff Commission exported goods and the particulars of which the
 Conditional Importation customs administration shall require;
- refers to the customs procedure known under  Flexible Clause
the RKC as temporary admission in which  refer to the power of the President upon
certain goods can be brought into a customs recommendation of the National Economic and
territory conditionally relieved, totally or Development Authority (NEDA):
partially, from payment of import duties and
taxes; such goods must be imported for a 1) to increase, reduce or remove existing
specific purpose and must be intended for protective tariff rates of import duty, but in no
reexportation within a specified period and case shall be higher than one hundred percent
without having undergone any substantial (100%) ad valorem.
change except due to normal depreciation. 2) to establish import quota or to ban
(Importation with conditions and no importation of any commodity as may be
responsibilities to pay taxes)( applicable lang necessary.
ni if you bring honor to your country like 3) to impose additional duty on all import not
athletes and pageantry) exceeding ten percent (10%) ad valorem,
 Customs Broker whenever necessary.
- refers to any person who is a bona fide holder  Foreign Exporter
of a valid Certificate of - refers to one whose name appears on
Registration/Professional Identification Card documentation attesting to the export of the
issued by the Professional Regulatory Board product to the Philippines regardless of the
and Professional Regulation Commission manufacturer's name in the invoice.
pursuant to Republic Act No. 9280, as  Free Zone
amended, otherwise known as the "Customs - refers to special economic zones registered
Brokers Act of 2004" ; with the Philippine Economic Zone Authority
 Customs Office (PEZA) under Republic Act No. 7916, as
- refers to any customs administrative unit that amended,
is competent and authorized to perform all or - duly chartered or legislated special economic
any of the functions enumerated under zones and freeports such as Clark Freeport
customs and tariff laws Zone; Poro Point Freeport Zone; John Hay
 Customs Officer Special Economic Zone and Subic Bay Freeport
- as distinguished from a clerk or employee, Zone under Republic Act No. 7227,
refers to a person whose duty, not being - as amended by Republic Act No. 9400; the
clerical or manual in nature, involves the Aurora Special Economic Zone under Republic
exercise of discretion in performing the Act No. 9490, as amended; the Cagayan Special
function of the Bureau. It may also refer to an Economic Zone and Freeport under Republic
Act No. 7922; the Zamboanga City Special
 Economic Zone under Republic Act No. 7903; - refers to an entity, which may or may not own
the Freeport Area of Bataan under Republic or operate a vessel that provides a point-to-
Act No. 9728; and such other freeports as point service which may include several modes
established or may be created by law; of transport and/or undertakes group age of
less container load (LCL) shipments and issues
 Goods the corresponding transport document.
- refer to articles, wares, merchandise and any  Outright Smuggling
other items which are subject of importation or - refers to an act of importing goods into the
exportation. country without complete customs prescribed
 Goods Declaration importation documents, or without being
- refers to a statement made in the manner cleared by customs or other regulatory
prescribed by the Bureau and other government agencies, for the purpose of
appropriate agencies, by which the persons evading payment of prescribed taxes, duties and
concerned indicate the procedure to be other government charges
observed in the application for the entry or  Perishable Good
admission of imported goods and the - refers to goods liable to perish or goods that
particulars of which the customs administration depreciate greatly in value while stored or
shall require; which cannot be kept without great
 Importation disproportionate expense, which may be
- refers to the act of bringing in of goods from a proceeded to, advertised and sold at auction
foreign territory into Philippine territory, upon notice if deemed reasonable
whether for consumption, warehousing, or  Port of Entry
admission as defined in this Act. (Pagsulod ug - refers to a domestic port open to both
product dire sa pilinas). domestic and international trade, including
 Freight Forwarder principal ports of entry and subports of entry.
- refers to a local entity that acts as a cargo - A principal port of entry- is the chief port of
intermediary and facilitates transport of goods entry of the Customs District wherein it is
on behalf of its client without assuming the situated and is the permanent station of the
role of a carrier, which can also perform other District Collector of such port.
forwarding services, such as booking cargo - Subports of entry- are under the administrative
space, negotiating freight rates, preparing jurisdiction of the District Collector of the
documents, advancing freight payments, principal port of entry of the Customs District.
providing packing/crating, trucking and Port of entry as used in this Act shall include
warehousing, engaging as an airport of entry.
agent/representative of a foreign non-vessel  Port of Dischargez
operating as a common carrier/cargo - also called “Port of Unloading”, refers to a place
consolidator named in a master bill of lading as where a vessel, ship, aircraft or train unloads
consignee of a consolidated shipment, and its shipments, from where they will be
other related undertakings. dispatched to their respective consignees;
 International Freight Forwarder  Reexportation
- refers to persons responsible for the assembly - means exportation of goods which have been
and consolidation of shipments into single lot, imported.
and assuming, in most cases, the full - Re-exportation is the act of sending goods that
responsibility for the international transport of were imported into a country back out to
such shipment from point of receipt to the point another country for sale. It's also known as
of destination. entrepot trade.
 Jurisdictional Control  Release of Goods
- refers to the power and rights of the Bureau in - refers to the action by the Bureau to permit
exercising supervision and police authority goods undergoing clearance to be placed at the
over all seas within the jurisdiction of the disposal of the party concerned;
Philippine territory and over all coasts, ports,  Refund
airports, harbors, bays, rivers and inland waters - refers to the return, in whole or in part, of
whether navigable or not from the sea duties and taxes paid on goods
 Lodgement  Security
- refers to the registration, of a goods - refers to any form of guaranty, such as a surety
declaration with the Bureau. bond, cash bond, standby letter of credit or
 Non-Vessel Operating Common Carrier irrevocable letter of credit, which ensures the
(NVOCC) satisfaction of an obligation to the Bureau.
 Smuggling
- refers to the fraudulent act of importing any
goods into the Philippines, or the act of
assisting in receiving, concealing, buying, selling,
disposing or transporting such goods, with full
knowledge that the same has been fraudulently
imported, or the fraudulent exportation of
goods. Goods referred to under this definition
shall be known as smuggled goods;
 Taxes
- refer to all taxes, fees and charges imposed
under this Act and the National Internal
Revenue Code (NIRC) of 1997, as amended, and
collected by the Bureau.
 Technical Smuggling
- refers to the act of importing goods into the
country by means of fraudulent, falsified or
erroneous declaration of the goods to its
nature, kind, quality, quantity or weight, for the
purpose of reducing or avoiding payment of
prescribed taxes, duties and other charges.
 Tentative Release
- refers to a case where the assessment is
disputed and pending review, an importer may
put up a cash bond equivalent to the duties and
taxes due on goods before the importer can
obtain the release of said goods.
- the anticipated date of release from
incarceration or the release of an imported
shipment pending a valuation issue.
 Transit
- refers to the customs procedure under which
goods, in its original form, are transported
under customs control from one customs office
to another, or to a free zone.
 Transshipment
- refers to the customs procedure under which
goods are transferred under customs control
from the importing means of transport to the
exporting means of transport within the area
of one customs office, which is the office of
both importation and exportation.
 Traveler
- refers to any person who temporarily enters
the territory of a country in which he or she
does not normally resides (non-resident), or
who leaves that territory, and any person who
leaves the territory of a country in which he or
she normally resides (departing resident) or
who returns to that territory (returning
resident).
 Third Party
- refers to any person who deals directly with
the Bureau, for and on behalf of another
person, relating to the importation, exportation,
movement or storage of goods.