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The Bureau of Customs stressed yet again the need for importers to properly describe imported articles in tariff terms
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Habitual violators who persistently declare their imports in a general manner will be penalized under Customs Administrative Order No. 08-2007, as implemented by Customs Memorandum Order 28-2007
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Penalties include cancellation of importers’ accreditation and their blacklisting at the BOC
The Bureau of Customs (BOC) stressed yet again the need for importers to properly describe imported articles in tariff terms.
In Assessment and Operations Coordinating Group (AOCG) Memo No. 232-2023, Import Assessment Service (IAS) director Atty. Yasser Ismail Abbas ordered stakeholders and concerned BOC offices to ensure strict compliance with the proper description of imported goods pursuant to Customs Administrative Order (CAO) No. 08-2007, as implemented by Customs Memorandum Order (CMO) 28-2007. IAS is under AOCG.
The memo also instructed strict compliance to CMO 20-2020, which amended CMO 28-2007, regarding the list of generally described goods subject to 100% examination, with the relevant shipments to be considered in a status of continuing alert.
BOC officers were asked to remind importers and customs brokers that habitual violators who persistently declare their importation in a general manner will be penalized. Worst case, the accreditation of the importer can be cancelled.
Customs personnel found to be non-compliant with implementation of the customs orders will likewise be penalized.
The BOC has time and again issued orders for mandatory compliance of CAO 08-2027.
RELATED READ: BOC chief urges anew compliance to order on proper description of imports ; BOC stresses yet again need for detailed goods description
CAO 08-2007 establishes rules for describing imported articles properly in tariff terms; it is implemented by CMO 28-2007.
CMO 28-2007 requires importers to make detailed descriptions of imported articles in tariff terms; otherwise, their shipments will have to go through 100% examination and be considered on a status of continuing alert.
The order aims to foil attempts by some importers to evade paying the right tariff by simply giving generic descriptions.
CMO 20-2020, meanwhile, amends the list of covered importations in CMO 28-2007 and expanded to 300 the general terms that if used by an importer to describe the imported goods in the goods declaration will result in a 100% examination of the shipment.
READ: BOC expands list of general terms in goods declaration subject to cargo exam
In early 2014, BOC revived CAO 08-2007 and CMO 28-2007, which had gone unenforced for seven years. Since then, BOC has been issuing memos reiterating compliance with the two orders as it kept recording violations.
Under CMO 28-2007, the description of articles must be “in sufficient detail to enable the article to be identified for tariff classification, valuation and other statistical purposes.”
Failure to describe the shipment in detail will be the full responsibility of the importer or broker, CMO 28-2007 states.
Habitual violators “by persisting to declare their importation in a general manner” will be penalized with the following:
- First offense-warning
- Second offense-suspension of accreditation for six months
- Third offense-cancellation of accreditation and blacklisting as an importer
Licensed customs brokers “will be treated in the same manner as importers and their licenses recommended to be cancelled.”
Good faith is also not a defense, CMO 28-2007 said. “Both importers and customs brokers shall exercise utmost diligence in declaring goods for purposes of customs clearance,” the order added.
