Draft rule lays down measures for handling disputes with BOC

Philippine stakeholders have until January 5, 2017 to submit their position papers on the draft customs administrative order (CAO) that implements the provisions for remedying disputes and protests between an exporter or importer and the Bureau of Customs (BOC).

A public hearing will also be held on the same date to tackle the draft CAO, which prescribes the policies, guidelines, and procedures for dispute settlement and protest resolution. Dispute settlement and protest remedy are now part of the law under Republic Act No. 10863, otherwise known as the Customs Modernization and Tariff Act (CMTA).

The CAO will cover the right to administrative and judicial remedies of an importer or exporter who is aggrieved by a BOC decision pertaining to dispute settlement or protest filed arising from customs valuation, rules of origin, tariff classification, and other customs issues. It also covers mixed issues of tariff classification, customs valuation, rules of origin, and other customs concerns.

According to the draft order, a tariff classification issue refers to an issue that arises when the customs officer questions the correctness of the declared tariff classification and reclassifies the goods, with which the importer does not agree.

A valuation issue arises when the customs officer challenges the customs value declared in the goods declaration, with which the importer does not agree.

The rules of origin issue, meanwhile, comes up when, for imported goods, the customs officer challenges the authenticity or veracity of the certificate of origin (COO) issued, or questions whether the imported goods is truly originating from the country of origin. Or in case of goods for export, when BOC does not issue a COO for goods intended for export and the exporter does not agree with such a position.

Under the draft order, BOC will, in accordance with international standards, use information and communications technology to enhance customs control and to support cost-effective and efficient customs operations geared towards a paperless customs environment.

The customs agency will establish a docketing system for all dispute settlement or protest cases arising from customs valuation, rules of origin, tariff classification under certain circumstances, and other customs issues to ensure proper recording, inventory, accounting, monitoring, filing, and publication.

BOC is also going to issue rules and regulations to govern how decisions are laid down to settle disputes or protests arising from customs valuation, rules of origin, tariff classification under certain circumstances, and other customs issues.

Under the CAO, disputes between the customs officer and the importer or exporter will be elevated to the district collector for resolution.

If the district collector releases a decision that the importer or exporter disagrees with or adversely affects any stakeholder directly, the aggrieved party may appeal by way of protest to the Customs commissioner. The protest must be filed within 15 days of receipt of the adverse decision or within 15 days of payment made as a result of the adverse decision.

If the importer is aggrieved by the decision of the customs commissioner, he may file a motion for reconsideration with BOC within 15 calendar days of receipt of the decision. If his motion is denied, he may appeal to the Court of Tax Appeals (CTA) within 30 calendar days of receipt of the denial.

If these are required by the CAO, any decisions of the Secretary of Finance may likewise be appealed before the CTA.

Finally, the BOC and the Tariff Commission will publish the summaries of rulings on their websites, taking into account the need to protect confidential information. – Roumina Pablo

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