BOC unveils guidelines on alert order for air shipments

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Cargo plane2The Bureau of Customs (BOC) recently issued a memo on the procedure for issuing and lifting alert orders on shipments that arrive in the Philippines by air and are declared through the formal entry process.

Under Customs Memorandum Order (CMO) No. 24-2014 signed November 3, BOC clarified that air shipments declared through the formal entry process are not covered by CMO No. 21-2014, which requires that alert orders be issued and lifted in BOC’s electronic-to-mobile (e2m) system.

According to the new memorandum, no shipment that arrives by air should be held by any Customs official for any reason, except if subject to an alert order issued under CMO 21-2014 or CMO 24-2014.

No shipment should also be examined physically except for the following reasons: cargoes tagged as “red” by BOC’s Risk Management Office (RMO), shipments for spot check upon orders of a district collector, or those that are subject to an alert order.

Under the new order, an alerting officer must first issue an alert order before examination of shipments categorized under Customs and Tariff Code of the Philippines Section 1401.

A shipment is subject to an alert order under the following instances:

  • The government’s surveyor seal on the container appears tampered with or broken, or the container shows signs it has been opened or its identity has been changed.
  • The container is leaking or damaged.
  • The number, weight, and nature of packages indicated in the customs entry declaration and supporting documents differ from data in the manifest.
  • The importer disagrees with the findings contained in the government surveyor’s report.
  • The articles are imported through airfreight, and the Commissioner or collector knows there is a variance between what is declared and what is the true quantity, measurement, weight, and tariff classification.

Authorized to issue and lift alert orders are the Customs commissioner, deputy commissioners of the BOC Intelligence Group and Enforcement Group, and district collectors.

Procedure for issuing and lifting the alert order

Under CMO 24-2014, an alerting officer must fill out the Alert Order Issuance Form, then send it to the Office of the Commissioner (OCOM) for signing, after which it will be sent to the district collector or sub-port collector.

If the alerting officer is the district collector, he will be the one to fill out the alert order issuance form and send a copy of it to the OCOM.

After the alert order is issued, the alerting officer should on the same day fill out the alert order report to be forwarded to the district collector or sub-port collector where the shipment is, and he must also furnish the OCOM the necessary documents.

No later than one day after filling out the necessary forms, the district or sub-port collector must designate a point person for the alert order who must notify the owner of the shipment, and its customs broker, that their shipment is placed under an alert order, as well as inform them of the schedule and location for the 100% examination.

The order noted that the owner of the shipment has the right to know about the alert order, and to the speedy disposition of his case.

Likewise, the public has the right to know about any alert order on a shipment, or a part of a shipment, that has been seized or charged additional duties, taxes, or penalties.

Any part of a shipment under an alert order must not be released until it has been physically examined and the alerting officer authorizes its release, which may be subject to certain conditions.

Unless there are justifiable reasons for delay, the examination must be conducted within one week of issuance of the alert order.

No later than one day after physical examination, the point person must fill out the necessary forms, and the officer-on-case for the alert order will review the recommendations and submit the alert order report form to the alerting officer.

The final decision on the disposition of each item in the shipment subject to an alert order must be rendered no later than two days after physical examination. The final disposition of the alert order must be decided by the alerting officer who issued the order.

Neither the issuance nor the lifting of an alert order requires prior authorization by the Customs commissioner.

If the final decision is for a warrant of seizure and detention, the district or sub-port collector should issue the warrant and initiate forfeiture proceedings as soon as possible.

If the final decision is payment of additional duties, taxes, and/or penalties, the district or sub-port collector should ensure that the additional amounts are paid before releasing the goods.

Holding any shipment without following the process outlined in CMO 21-2014 will be a “grave offense” under CMO 25-2010 that is punishable with dismissal on first offense.

Noncompliance with any of the order’s provisions will be considered an “incidence of simple neglect of duty,” and punishable also under CMO 25-2010 with dismissal on second offense. – Roumina Pablo