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BOC orders strict observance of valuation, proper goods description

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Customs commissioner Rey Leonardo Guerrero instructed Bureau of Customs (BOC) officials and employees to comply strictly with the basis for valuation and with the sequential application of valuation methods under the Customs Modernization and Tariff Act (CMTA).

In a memorandum dated November 6, Guerrero also ordered customs officials to adhere strictly to provisions of Customs Administrative Order (CAO) No. 08-2007 and Customs Memorandum Order (CMO) No. 28-2007 concerning the proper description of imported articles in tariff terms.

Guerrero said it has come to his attention that “several imported goods were intentionally declared in general manner to avoid proper classification and valuation or that description of articles in the import declarations [was] not sufficient in detail to enable the article to be identified for tariff classification, valuation and other statistical purposes.”

Since CAO 08-2007 and its implementing order, CMO 28-2007, were issued, BOC still keeps recording numerous violations, prompting several reiterations to comply with said orders.

Guerrero also enjoined BOC officials and personnel to comply with the basis for valuation pursuant to sections 700 to 707 of the CMTA.

Under the CMTA, sections 700 to 707 provide the basis for valuation, which includes the sequential application of valuation methods (Sec. 700) and the valuation methods: Transaction Value System or Method One (Sec. 701); Transaction Value of Identical Goods or Method Two (Sec. 702); Transaction Value of Similar Goods or Method Three (Sec. 703); Deductive Value or Method Four (Sec. 704); Computed Value or Method Five (Sec. 705); and Fallback Value or Method Six (Sec. 706).

Under Section 700, imported goods shall be valued as provided in Section 701 if the prescribed conditions are fulfilled. Where the customs value cannot be determined under the provisions of Section 701, it shall be determined by proceeding sequentially through the succeeding sections.

When the customs value cannot be determined under Sections 701 through 705, it may be determined under Section 706.

Section 707 (Ascertainment of the Accuracy of the Declared Value), meanwhile, is when a declaration has been presented, and BOC has reason to doubt the truth or accuracy of the particulars or of the documents produced in support of such declaration. In this case, BOC may ask the importer to provide further explanation, including documents or other evidence, that the declared value represents the total amount actually paid or payable for the imported goods, adjusted in accordance with the provisions of Section 701.

Guerrero said failure to implement the orders “will not only defeat the efforts of the Bureau of Customs in the establishment and/or publication of values in the National Value Verification System (NVVS) but likewise will adversely impact the collection of lawful revenue.”

He added that any customs personnel who fails to comply with the memorandum’s directives will be dealt with according to the provisions of Section 1431 (statutory offenses of officers and employees) of the CMTA. – Roumina Pablo


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