Proposed memo establishes protocol for issuing alert orders in PH

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id-100282044The draft customs administrative order (CAO) that operationalizes how alert orders are to be issued and processed in the Philippines has been released by the Department of Finance (DOF) and Bureau of Customs (BOC).

The proposed CAO applies to the protocol BOC should follow when issuing alert orders, pre-lodgement control orders, post-release control orders, and controlled delivery orders.

It covers all importations, whether these are for consumption, warehousing, or admission to free zones as defined in Section 102(w) of the Customs Modernization and Tariff Act (CMTA), or Republic Act (R.A.) No. 10863, and whether these are dutiable, taxable or not.

READ: Power to alert PH shipments now exclusive right of Office of the BOC Commissioner

Under the proposed rule, an alert order or post-release control order is issued based on derogatory information regarding customs violations. One of these is undervaluation, which should not be general allegations of undervaluation but based on forged or spurious invoice or other commercial documents submitted to customs.

Another violation that merits an alert order or post-release control order is misclassification, which must not be general allegations of misclassification but provides appropriate tariff heading and duty of the shipment to be alerted. Others are over-quantity, also not general allegations but indicates the source of information supporting the allegation; general allegations of misdeclaration, not general allegations of misdeclaration in the entry but indicates the suspected actual contents; and importations contrary to law, not general allegations but indicates the specific law or rule violated.

Grounds for issuing a pre-lodgment control order, on the other hand, include reports on the following: unmanifested cargo; outright smuggling as defined in Section 102 (ff), Chapter 2 of Title I of CMTA; prohibited, restricted, and regulated goods verified without permits; consignee is verified and confirmed to be fictitious; and the vessel contains products of illicit trade which poses danger to the environment and to public health, safety and security.

Grounds for controlled delivery orders include violations under Republic Act (RA) 9165, or the Comprehensive Dangerous Drugs Act of 2002; and violations of the CMTA and other penal statutes in coordination with the concerned government agency.

Once an alert order is issued, the processing of goods declaration and the release of goods are suspended until a physical or non-intrusive inspection of the goods is conducted within 48 hours. Conditions for release are that the proper duties, taxes, and other charges including surcharges are paid, and BOC has ascertained no legal ground for keeping the goods in customs custody.

With a pre-lodgement control order, the lodgement of goods declaration is allowed, but the goods will not be released until the required procedures are conducted.

The issuance of post-release control order, meanwhile, authorizes BOC to conduct further physical examination of the goods or containerized shipments and seize them if warranted.

When a controlled delivery order is issued, BOC is authorized, in coordination with the other concerned government enforcement agencies, to allow an unlawful or suspect consignment of any dangerous drug and/or controlled precursor and essential chemical, equipment or paraphernalia, or property believed to be derived directly or indirectly from any offense to pass into, through, or out of the country under supervision of an authorized officer. This is toward the aim of gathering evidence to identify any person involved in any dangerous drugs related offense, or to facilitate prosecution of that offense.

“The costs of the physical inspection shall be borne by the Bureau provided that such cost shall be reimbursed by the owner prior to the release of the goods if the physical inspection results in the assessment of additional duties or taxes or the issuance of a warrant of seizure,” the draft of the proposed order said.

The alerting officer or any authorized customs officer will recommend to the district collector to lift an alert order or issue a warrant of seizure and detention (WSD) within 48 hours, or in the case of perishable goods, within 24 hours of inspection, furnishing the Customs Commissioner a copy of the recommendation.

BOC will create a central clearing house for alert orders and submit quarterly reports to DOF on their status.

Besides this, the customs agency will assign customs personnel at the exit gate of the port or terminal facility which has no Online Release System capability and for manually issued gate pass.

Any person, officer, or employee that violates the CAO faces penalties as spelled out under Title XIV of the CMTA as well as other applicable penal provisions.

The CAO will be reviewed every five years and be amended or revised, if necessary. – Roumina Pablo

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