Home » Customs & Trade, Ports/Terminals » Draft PH customs rule guides handling of stores aboard foreign air, sea craft

The Philippine Department of Finance (DOF) and Bureau of Customs (BOC) have released the draft administrative order that will implement the provisions of the Customs Modernization and Tariff Act (CMTA) on how to use different types of stores aboard international vessels and aircraft.

“Air stores” refer to items supplied for consumption or use on board an aircraft, such as supplies for crew and passengers, while “stores in vessel” are articles, especially foodstuff, that are for use or consumption only by the passengers and crew on board the vessel upon its voyage. “Ships’ stores,” meanwhile, consist of spare equipment such as chains, anchor, and the likes that are necessary to safely navigate the ship.

Position papers on the draft CAO are accepted until April 20, the same day as the holding of a public hearing.

The draft CAO, which is subject to public scrutiny, will cover stores—whether sold or not—for use or consumption by passengers and crew on board vessels or aircraft engaged in foreign trade.

It also covers stores carried by vessels or aircraft that will dock or land at one or more ports or airports in customs territory, to be used or consumed on board during the stay of these transport craft at these intermediate ports or airports and during their voyage or flight between such ports or airports.

Its scope includes stores for sale to the passengers and the crew of vessels or aircraft with a view to being landed, which are either on board upon arrival or are taken on board during the stay in the customs territory of vessels or aircraft.

Lastly, it covers supplies needed by the vessels or aircraft on their voyage or flight out of the Philippines, including those goods transferred from a customs facility warehouse to the aircraft.

The draft CAO states that BOC requires the submission of a Stores List of inflight commissary items, including duty-free bonded items, that are arriving at the customs territory. Upon departure, no separate declaration concerning stores is required from the vessels or aircraft.

Inflight duty-free items and catering supplies and equipment delivered to the aircraft from a bonded warehouse are to be covered by the Stores List.

BOC will devise a uniform Stores List that must be accomplished and signed by the shipping lines and airlines, and submitted to the customs officer once the vessel or aircraft arrives or leaves.

The draft notes that importations of stores arriving at the Customs territory will be exempt from duties and taxes, subject to certain circumstances.

For international aircraft that intends to land at one or more airports in each port of entry, BOC will establish procedures for the transport and delivery of stores needed during the stay of the aircraft at such intermediate airports and during its flight between such airports.

Stores will not be have to go through physical examination by BOC except if there is derogatory information or alert order issued against them by the commissioner or authorized customs officer. BOC will be applying risk management principles when conducting a physical examination of stores.

Image courtesy of khunaspix at FreeDigitalPhotos.net

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