Home » Customs & Trade, Maritime, Ports/Terminals » BOC to finally enforce order on detailed import description
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The order requires importers to make detailed descriptions of imported articles in tariff terms, otherwise their shipments would be subjected to 100% examination. Photo courtesy of Asian Terminals Inc

The order requires Philippine importers to make detailed descriptions of imported articles in tariff terms, otherwise their shipments would be subjected to 100% examination. Photo courtesy of Asian Terminals Inc.

AFTER being unenforced for seven years, a Customs Memorandum Order (CMO) that implements a Philippine Bureau of Customs (BOC) order requiring traders to make detailed descriptions of imported articles will be implemented immediately by the agency.

In a meeting with the Chamber of Customs Brokers, Inc. and the Aduana Business Club, Director Arnulfo Gambayan of the Assessment and Operations Coordinating Group-Import Assessment Services (IAS) briefed the brokers groups on re-implementing CMO 28-2007.

“We will re-enforce (CMO 28-2007) immediately,” Gambayan told PortCalls in a text message. He said there is no need to issue a new memorandum.

The CMO implements Customs Administrative Order 8-2007, which requires importers to make detailed descriptions of imported articles in tariff terms, otherwise their shipments would be subjected to 100% examination.

The order is aimed at foiling attempts by importers to evade paying the right tariff by simply giving general descriptions of imported articles.

Under the CMO, the description of articles must be in “sufficient detail to enable the article to be identified for tariff classification, valuation and other statistical purposes…”

Description of articles should be specific, such as centrifugal for pumps, diesel for engines, skimmed for milk, and shoulder for bags. The brand and model or style of the articles; capacity, quality, grade, process, and retail packaging must also be indicated.

The CMO would be used as basis for encoding Box 31 of the Import Entry and Internal Revenue Declaration (IEIRD); preparation of the packing list, commercial invoices, entry declaration, Value Reference Information System (VRIS) and Classification Rulings; by the COO IIIs and COO Vs in accomplishing their IEIRD returns; describing items for establishing and/or publication of values; and for statistical purposes.

For motor vehicles, members of the Chamber of Automotive Manufacturers of the Philippines Inc., participants in the Motor Vehicle Development Program, and other importers who are authorized distributors of specific car brands, the packing/list should indicate the chassis and engine number.

The BOC has listed 120 items generally declared by importers and are now be subject to 100% examination to determine whether they conform to the provisions of CAO 8-2007.

Failure to describe the shipment in detail will be the full responsibility of the importer and/or broker, the CMO stated.

“Good faith is not a defense. Both importers and customs brokers shall exercise utmost diligence in declaring goods for purposes of customs clearance,” the CMO stated.

Violators of the CMO are subject to a warning in their first offense, suspension of accreditation for six months in their second offense, and cancellation of accreditation and blacklisting in their third offense.

Gambayan said the IAS will meet with the BOC’s accredited value-added service providers and the two Manila port operators to discuss implementing the CMO as well as the expected surge in containers that will be examined 100% without the need for alert orders. –– Roumina M. Pablo

2 Responses to “BOC to finally enforce order on detailed import description”

  1. Jeus P. Jerusalem March 5, 2014

    Dear Sir,

    One of our clients received an email about the enforcement of CMO NO. 28-2007.
    For the information of our clients, we wish to provide our clients a copy of this very important article for their strict compliance.
    May we request your kind indulgence to provide our clients a copy? Thank you, Jess P. Jerusalem

    Reply

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