The document discusses the status of the Customs Modernization and Tariff Act (CMTA) and its impact on customs brokers. It outlines the congressional process undertaken to draft the bill. It then highlights several key changes introduced in the CMTA, including updating definitions, procedures for import/export clearance, duty assessments, and penalties. It also covers new provisions for trade facilitation, customs fraud investigation, third parties like customs brokers, and congressional oversight.
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The document discusses the status of the Customs Modernization and Tariff Act (CMTA) and its impact on customs brokers. It outlines the congressional process undertaken to draft the bill. It then highlights several key changes introduced in the CMTA, including updating definitions, procedures for import/export clearance, duty assessments, and penalties. It also covers new provisions for trade facilitation, customs fraud investigation, third parties like customs brokers, and congressional oversight.
The document discusses the status of the Customs Modernization and Tariff Act (CMTA) and its impact on customs brokers. It outlines the congressional process undertaken to draft the bill. It then highlights several key changes introduced in the CMTA, including updating definitions, procedures for import/export clearance, duty assessments, and penalties. It also covers new provisions for trade facilitation, customs fraud investigation, third parties like customs brokers, and congressional oversight.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
The document discusses the status of the Customs Modernization and Tariff Act (CMTA) and its impact on customs brokers. It outlines the congressional process undertaken to draft the bill. It then highlights several key changes introduced in the CMTA, including updating definitions, procedures for import/export clearance, duty assessments, and penalties. It also covers new provisions for trade facilitation, customs fraud investigation, third parties like customs brokers, and congressional oversight.
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STATUS OF
CUSTOMS MODERNIZATION AND TARIFF ACT AND
ITS IMPACT TO THE
CUSTOMS BROKER PROFESSION
By: ATTY. FERDINAND A. NAGUE
SUMMARY INTRODUCTION BACKGROUND STATUS OF THE CMTA HIGHLIGHTS & SPECIAL FEATURES IMPACT TO THE CUSTOMS BROKER PROF Q&A
CONGRESSIONAL UNDERTAKINGS Consolidated Bill filed by Reps. Rodriguez Jr., Rodriguez, Mandanas, Umali & Farinas. House Ways & Means Committee Sub Committee on Customs (??) conducted hearings to solicit comments from stakeholders. Comments submitted by private sector and government agencies incorporated in the final version DID. House of Representatives already finished deliberating and its already
HIGHLIGHTS OF CMTA 1
Title 1 Preliminary Provision
A new Chapter containing General and Common Provision which includes:
Declaration of State Policy General Customs Principles based on the Gen. Annex of RKC and some provision of the TCCP Definition of Terms
Free, regulated & prohibited importation and exportation defined
HIGHLIGHTS OF CMTA 1
Title 1 Preliminary Provision
New provisions: Declarant Rights and Responsibilities of the Declarant Lodgement and Registration Special Procedures for Authorized Persons Examination of the Goods Penalties for Errors in Goods Declaration Release of Goods Abatement of Duties and Taxes Disposition of Abandoned Goods Deferred Payment for Government Importation Refund of Duties and Taxes
HIGHLIGHTS OF CMTA 1
Title 1 Preliminary Provision
New provisions: Security Competent Customs Offices Customs Control Application of Information and Communication Technology Relationship Between Customs and Third Parties Information of General Application Information of A Specific Nature Decisions and Rulings Right of Appeal, Forms and Ground Types Of Importation Free and Regulated Importations and Exportations Prohibited Importations and Exportations
HIGHLIGHTS OF CMTA 2 Title 2 - Bureau of Customs
Number of Deputy Commissioners open Trade Facilitation added as new function A provision on the De Minimis value 3 below -which no duty shall be Title 3 Customs Territory & Customs Control collected A new provision authorizing Customs to establish temporary storage prior to goods declaration
HIGHLIGHTS OF CMTA 4 Title 4 - Import Clearance & Formalities
The value requiring the filing of formal entry increased to P50 thousand FOB or FCA Sec. 403 on Goods Declaration and Sec. 406 on invoice revised to conform with the new valuation system Request for classification & valuation ruling revised The general rule on the manner of examination laid down including the
HIGHLIGHTS OF CMTA 4 Title 4 - Import Clearance & Formalities
As a general rule, presence of importer/broker is not required during inspection (General Provision) New provisions on Travellers, Passenger Baggage, Postal Mail & Relief Consignment provided (RKC Specific Annex J) 5 Title 5 Export Clearance & Formalities
New provision on Export Clearance Formalities
HIGHLIGHTS OF CMTA 6 Title 6 Customs Transit & Transshipment
Customs Transit and Transshipment defined & incorporated to conform with RKC Specific Annex E. Provision for transshipment of tobacco products incorporated 7 Title 7 Import Duty & Tax
Provisions on Dumping, Safeguard & Countervailing incorporated with reference to specific laws
HIGHLIGHTS OF CMTA 8 Title 8 Tax & Duty Deferment, Preference & Exemption
Amount of guarantee/security for some conditionally-free imports set at 100% of duties & taxes in conformity with RKC GA Standards 5.4 & 5.6 Provision on Outward Processing provided in Paragraph X of Sec. 800 Storage period rule set at 1 year except for perishable goods which is 6 months & for certain types of industries where storage period can be more than 1 year New provision on Free Zones & Stores (RKC Specific Annexes D & J)
HIGHLIGHTS OF CMTA 9 Title 9 Drawback & Refund
Prescriptive period for drawback claim provided A new provision on abatement for defective articles provided 10 Title 10 Administrative & Judicial Procedures
New provision identifying other persons who can exercise Police Authority as deputized by the Commissioner
HIGHLIGHTS OF CMTA 10 Title 10 Administrative & Judicial Procedures
Sec. 1001 - A provision
providing Customs unhampered access on Customs Zone within the jurisdiction of Port authorities allowing BOC to exercise Police Authority within Freeport zone subject to proper coordination with the governing authority of the zone
Sec 1005 Customs may force entry into land or inclosure, or any warehouse store not being principally used as dwelling house
HIGHLIGHTS OF CMTA 10 Title 10 Administrative & Judicial Procedures
Sec. 1010 -- Power to inspect & visit revised to provide additional process to quash warrant Sec. 1015 -- A provision
recognizing the exclusive authority of the Collector to determine probable cause and issue warrant Allowing release of seized articles for legitimate use under cash bond or sufficient security
Sec. 1021 Redemption value on settlement set at 150% of landed
HIGHLIGHTS OF CMTA 10 Title 10 Administrative & Judicial Procedures
Sec. 1023 reworded to conform with the exclusive authority of the Collector Sec. 1024 Commissioner mandated to issue rules and regulations on seizure & forfeiture proceedings Sec. 1026 Review of Commissioner modified to specify period of appeal Sec. 1028 Supervisory Authority of Commissioner & Secretary of Finance in Certain Cases
HIGHLIGHTS OF CMTA 10 Title 10 Administrative & Judicial Procedures
Sec. 1029 Provision on Abandonment
Period to file is within 15 days from receipt of due notice Period to pay is within 15 days from receipt of assessment notice Period to claim is within 30 days after payment of duties & taxes
Provision on Compulsory Acquisition deleted Sec. 1032 Authority of Commissioner to make compromise expanded to include duties & taxes
HIGHLIGHTS OF CMTA 10 Title 10 Administrative & Judicial Procedures
New provision on Civil Remedies for collection of Duties & Taxes New provision on Civil Remedies for collection of Duties & Taxes
Distraint of Goods Civil or criminal action Constructive distraint of property
New provision creating Forfeiture Fund
HIGHLIGHTS OF CMTA 11 Title 11 Post Clearance Audit
Coverage of Audit expanded to include persons or entities other than the importers Documents/records that may be required revised as opposed to the listing in RA 9135 New provision empowering Customs to issue summons in relation to PEA investigation Penalty regime reduced to 2 (Negligence & Fraud). Amount of
HIGHLIGHTS OF CMTA 12 Title 12 Customs Fraud
New provision on Customs Fraud Investigation & Prosecution
13 Title 13 Third Parties
New provision on Third Parties
Customs Brokers Carriers, Vessels & Aircraft Other Third Parties including AEOs
HIGHLIGHTS OF CMTA 14 Title 14 Customs Fees & Charges
Fees, dues & charges to be provided under regulations
15 Title 15 Offenses & Penalties
Sec. 1502 Misdeclaration, Misclassification & Undervaluation redefined to conform to the Transaction Value System Amount of penalties for certain offences increased
HIGHLIGHTS OF CMTA 16 Title 16 Miscellaneous Provisions
Provision on rewards claim to include collection of additional revenues; reward only limited to non-Customs personnel Provision on Outsourcing of nonsovereign customs functions to private entities
HIGHLIGHTS OF CMTA 17 Title 17 Tariff Administration Policy
(Need to insert rationale for the revisions under this title.... This is different from CMTA)
HIGHLIGHTS OF CMTA 18 Title 18 Congressional Oversight Committee
New provision creating Congressional Oversight Committee
19 Title 19 Final Provisions
Repealing Clause Transitory Provision Separability Clause Effectivity Date
