Customs commissioner Rey Leonardo Guerrero has once again reminded customs officials and other stakeholders that the proper description of imported articles in tariff terms must be observed.
In Office of the Commissioner (OCOM) Memorandum No. 139-2020 dated July 8, Guerrero reiterated the implementation of Customs Administrative Order (CAO) No. 08-2007, which establishes rules for describing imported articles properly in tariff terms, and its implementing order, Customs Memorandum Order (CMO) No. 28-2007.
In early 2014, BOC revived the two orders, which had gone unenforced for seven years. Since then, BOC has issued several memos reiterating the need for compliance, noting repeated violations.
READ: BOC orders strict observance of valuation, proper goods description
Under CAO 08-2007, the description of articles “must be in sufficient detail to enable the articles to be identified for tariff classification, valuation and other statistical purposes…,” Guerrero noted, adding that the description must also be supported by the packing list.
Under the CAO, the customs broker, the Entry Processing Division/Unit (EPD/U) chief, and customs operations officers (COO) III and V are responsible for ensuring proper implementation of the order.
The Customs commissioner, through the Value Reference Information System, should issue a list of products on the proper description of goods.
Under CMO 28-2007, habitual violators will be penalized with the following:
- Warning for first offense
- Suspension of accreditation for six months for second offense
- Cancellation of accreditation and blacklisting as an importer for third offense
Licensed customs brokers will receive the same treatment as importers with their (brokers) licenses facing cancellation.
For the EPD/U chief, COO III and COO V, failure to strictly implement CAO 08-2007 will be reflected in their individual performance commitment and review and will be ground for disciplinary action provided under the Customs Modernization and Tariff Act.
