The Bureau of Customs (BOC) has issued rules covering the availment of provisional goods declaration for processing under the formal entry system.
Customs Memorandum Order (CMO) No. 07-2020, which took effect on March 16, aims to establish a uniform compliance regime for customs brokers, importers, and other stakeholders on provisional goods declaration.
The new CMO provides the interim procedures for implementing sections pertaining to provisional goods declaration (Sec. 403) and to tentative assessment of provisional goods declaration (Sec. 426) under Republic Act (R.A.) No. 10863, otherwise known as the Customs Modernization and Tariff Act (CMTA).
These are new provisions under the CMTA, pursuant to rules under the Revised Kyoto Convention.
The Chamber of Customs Brokers, Inc. (CCBI) has been requesting BOC to issue the rules on availment of provisional goods declaration after the customs bureau shortened last June 2019 the period for lodging the goods declaration to just seven days.
READ: Draft Customs order on provisional goods declaration out
In its request, CCBI explained that compliance with the shorter period for lodging the goods declaration is difficult because certain processes take time to complete; hence, its request to avail of provisional goods declaration.
Under CMO 07-2020, provisional goods declaration may be lodged if no regulatory permit, clearance or license has been presented at the time of lodgement, provided the importer has filed his application for such permit, clearance or license prior to the departure of the goods from the country of origin, prior to or after the arrival of the goods into the Philippines, depending on the policy of the concerned regulatory agency.
Lodging of the provisional goods declaration is also allowed if the permit, license or clearance can be secured after the shipment arrives, provided the period for submission is in accordance with the requirement of the regulatory agency.
It is also allowed if the Tax Exemption Indorsement (TEI) from the Department of Finance, or the Tax Exempt Certificate (TEC) or Authority to Release Imported Goods (ATRIG) from the Bureau of Internal Revenue has not been issued yet, provided an application was filed at the time of lodgement.
It is also allowed in any other situation where the declarant lacks certain information or document to complete the goods declaration, as long as it is not due to the declarant’s negligence or fault, and mandatory information and documents are present.
BOC will assign a model of declaration/procedure code(s) to identify that the goods declaration is provisional in nature upon lodgement.
All provisional goods declarations will be selected either as “yellow” or “red” in BOC’s risk management selectivity system, which means their release will be on hold pending documentary review and/or physical inspection.
The procedure for assigning of the provisional goods declaration under BOC’s Goods Declaration Verification System (GDVS), if applicable, will be similar to that for regular consumption goods declaration.
Goods declaration will be considered full and complete in terms of supporting documents and information if the declarant does not indicate the provisional nature of such lodgement.
If the district/sub-port collector accepts the provisional goods declaration, the duty and tax treatment of the goods will not be different from that of goods with complete declaration.
Tentative assessment of duties, taxes and other charges on goods covered by a provisional goods declaration will be completed after the declarant makes the final readjustment and submits the additional information or documentation required to complete the goods declaration.
Processing of a provisional goods declaration for relief consignments will be governed by a separate CMO.
The declarant should lodge the provisional goods declaration using the assigned model of declaration code “4PG 4” under Box 1 of the Single Administrative Document (SAD).
Under Box 37a, the declarant should likewise encode the procedure code “4400”, including the three-digit additional code under Box 37b, as may be applicable.
The declarant must supply all the necessary information upon lodgement “as if he/she is filing a regular goods declaration,” CMO 07-2020 notes.
The declarant must file the provisional goods declaration with the Entry Processing Unit (EPU) or its equivalent unit within 48 hours from lodgement, except when the 48th hour falls on a non-working day, in which case the deadline will be the next working day.
The EPU or its equivalent unit will receive and forward the submitted provisional goods declaration and required documents to the customs operations officer (COO) III for evaluation. The COO III will then forward his evaluation findings and recommendation to the COO V who will then review the findings and recommendations of the COO III. In case the COO V concurs with the COO III’s findings, the former will endorse the recommendation to the district or sub-port collector through the deputy collector for assessment or Formal Entry Division chief, or its equivalent unit.
The FED chief or the deputy collector for assessment will review again the recommendation of the COO III and COO V. If they concur, they will endorse the recommendation to the district collector for approval.
The district or sub-port collector can approve or adjust the recommended period for submitting the lacking documents; approve or disapprove the recommendation to release the shipment under tentative assessment; or approve or disapprove the recommendation for the issuance of warrant of seizure and detention for failure to submit the lacking documents in case of regulated goods; or approve the further processing of the goods declaration in case the lacking document/s is already available during customs clearance process, or if its release is favorably recommended.
For the release under tentative assessment, the importer or his representative will be asked by the COO III to post the required security, whether in the form of a surety bond or cash bond.
Both the release under tentative assessment and of regulated goods should be after the COO V has updated the shipment’s status to “ASSESSED” in the GDVS. – Roumina Pablo
