CMTA Summary

CMTA Summary (Revised 1/16/2018)
REPUBLIC ACT NO. 10863

CUSTOMS MODERNIZATION AND TARIFF ACT (CMTA)
Approved on June 10, 2016
I. Bureau of Customs
A. Composition
The bureau shall be headed by a Commissioner and shall be assisted by at least four (4)
but not more than six (6) Deputy Commissioners.
B. Powers and Functions of the Commissioner of the Bureau of Customs
a. Exclusive and original jurisdiction to interpret the provisions of the CMTA, in

collaboration with other relevant government agencies, subject to review by the
Secretary of Finance;
b. Exercise any customs power, duties and functions, directly or indirectly;
c. Review any action or decision of any customs officer performed pursuant to the
provisions of the CMTA;
d. Review and decide disputed assessments and other matters related thereto, subject to
review by the Secretary of Finance and exclusive appellate jurisdiction of the Court
of Tax Appeals;
e. Delegate the powers vested under the CMTA to any customs officer with the rank
equivalent to division chief or higher, EXCEPT for the following:
i. Promulgation of rules and regulations;
ii. Issuance, revocation or modification of rulings; and
iii. Compromise or abate of customs obligations.
f. Assignment or reassignment of any customs officer subject to the approval of the
Secretary of Finance: Provided, that District Collectors and other customs officers
that perform assessments functions shall not remain in the same area of assignment
for more than three (3) years; and
g. Perform all other duties and functions as may be necessary for the effective
implementation of the CMTA and other customs related laws.
C. Functions of the Bureau of Customs
The Bureau shall exercise the following duties and functions:
a. Assessment and collection of customs revenues from imported goods and other dues,
fees, charges, fines and penalties accruing under the CMTA;
b. Simplification and harmonization of customs procedures to facilitate movement of
goods in international trade;
c. Border control to prevent entry of smuggled goods;
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d. Prevention and suppression of smuggling1 and other customs fraud;

e. Facilitation and security of international trade and commerce through an informed
compliance program;
f. Supervision and control over the entrance and clearance of vessels and aircraft
engaged in foreign commerce;
g. Supervision and control over the handling of foreign mails arriving in the
Philippines for the purpose of collecting revenues and preventing the entry of
contraband;
h. Supervision and control on all import and export cargoes, landed or stored in piers,
airports, terminal facilities, including container yards and freight stations for the
protection of government revenue and prevention of entry of contraband;
i. Conduct a compensation study with the end view of developing and recommending
to the President a competitive compensation and remuneration system to attract and
retain highly qualified personnel, while ensuring that the Bureau remains financially
sound and sustainable;
j. Exercise of exclusive original jurisdiction over forfeiture cases; and
k. Enforcement of the CMTA and all other laws, rules and regulations related to
customs administration.
D. Ports of entry
All ports of entry shall be under the supervision and control of a Customs District. A
District Collector shall be assigned in the principal ports of entry while a Deputy District
Collector may be assigned to other types of ports of entry.
E. Exercise of Police Authority
a. The following persons are authorized to effect search, seizures, and arrest:
i. Officials of the Bureau, District Collectors, Deputy District Collectors, police

officers, agents, inspectors and guards of the Bureau;
ii. Upon authorization of the Commissioner, officers and members of the Armed
Forces of the Philippines (AFP) and national law enforcement agencies; and
iii. Officials of the BIR on all cases falling within the regular performance of their
duties, when payment of internal revenue taxes is involved.
1
Smuggling refers to (1) the fraudulent act of importing any goods into the Philippines, or (2) the act of
assisting in receiving, concealing, buying, selling, disposing or transporting such goods, with full knowledge
that the same has been fraudulently imported, or (3) the fraudulent exportation of goods.
Technical Smuggling refers to the act of importing goods into the country by means of fraudulent, falsified or
erroneous declaration of the goods to its nature, land, quality, quantity or weight, for the purpose of reducing or
avoiding payment of prescribed taxes, duties and other charges.
Outright Smuggling refers to an act of importing goods into the country without complete customs prescribed
importation documents, or without being cleared by customs or other regulatory government agencies, for the
purpose of evading payment of prescribed taxes, duties and other government charges
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b. Authority to search and enter properties
i. Authority to enter properties which are not dwelling house
Any person exercising police authority may, at any time, enter, pass through,
and search any land, enclosure, warehouse, store, building or structure not
principally used as a dwelling, even without a warrant issued by a Judge of a
competent court.
When a security personnel or any other employee lives in the warehouse, store,
or any building, structure or enclosure that is used for storage of goods, it shall
not be considered as a dwelling house.
ii. Authority to search dwelling house
A dwelling house may be entered and searched only upon warrant issued by a
Judge of a competent court, the sworn application thereon showing probable
cause and particularly describing the place to be searched and the goods to be
seized.
iii. Authority to Search Vessels or Aircrafts and Persons or Goods Conveyed

Therein
Any person exercising police authority may board, inspect, search and examine
a vessel or aircraft and any container, trunk, package, box or envelope found on
board, and physically search and examine any person thereon. The person
exercising police authority may seize the goods, vessel, aircraft, or any part
thereof, in case of any probable violation of the CMTA.
Such power to search includes removal of any false bottom, partition, bulkhead,
or any other obstruction for the purpose of uncovering any concealed dutiable or
forfeitable goods.
The proceeding herein authorized shall not give rise to any claim for damage
caused to the goods, vessel or aircraft, unless there is gross negligence or
abuse of authority in the exercise thereof.
iv. Authority to Search Vehicles, Other Carriers, Persons and Animals.
Upon reasonable cause, any person exercising police authority may open and
examine any box, trunk, envelope, or other container for purposes of
determining the presence of dutiable or prohibited goods. This authority
includes the search of receptacles used for the transport of human remains and
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dead animals. Such authority likewise includes the power to stop, search, and
examine any vehicle or carrier, person or animal suspected of holding or
conveying dutiable or prohibited goods.
v. Authority to Search Persons Arriving From Foreign Countries
Upon reasonable cause, travelers arriving from foreign countries may be

subjected to search and detention by the customs officers. The dignity of the
person under search and detention shall be respected at all times. Female
inspectors may be employed for the examination and search of persons of their
own sex.
c. Power to inspect and visit
The Commissioner or any customs officer who is authorized in writing by the

Commissioner, may demand evidence of payment of duties and taxes on imported
goods openly for sale or kept in storage. In the event that the interested party fails to
produce such evidence within fifteen (15) days, the goods may be seized and
subjected to forfeiture proceedings.
During the proceedings, the interested party shall be given the opportunity to prove
or show the source of the goods and the payment of duties and taxes thereon.
When the warrant of seizure has been issued but subsequent documents presented
evidencing proper payment are found to be authentic and in order, the District
Collector shall, within fifteen (15) days from the receipt of the motion to quash or
recall the warrant, cause the immediate release of the goods seized, subject to
clearance by the Commissioner; provided, that the release thereof shall not be
contrary to law.
II. Customs Duties in General
The term “customs duties” should be understood to mean taxes on imports and
exports.
A. Export Tariff
Exportation refers to the act, documentation, and process of bringing goods out of
Philippine territory.
B. Import Tariff
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Importation refers to the act of bringing in of goods from a foreign territory into
Philippine territory, whether for consumption, warehousing, or admission.
All goods, when imported into the Philippines, shall be subject to duty upon importation,
including goods previously exported from the Philippines unless otherwise provided by
law.
Imported goods shall be deemed “entered” in the Philippines for consumption when the
goods declaration is electronically lodged, together with any required supporting
documents, with the pertinent customs office.
a. When importation begins and deemed terminated
Importation begins when the carrying vessel or aircraft enters the Philippine territory
with the intention to unload therein.
Importation is deemed terminated when:
i. The duties, taxes and other charges due upon the goods have been paid or
secured to be paid at the port of entry unless the goods are free from duties,
taxes and other charges and legal permit for withdrawal has been granted; or
ii. In case the goods are deemed free of duties, taxes and other charges, the goods
have legally left the jurisdiction of the Bureau.
C. Types of importation/exportation
a. Free Importation and Exportation
Unless otherwise provided by law or regulation, all goods may be freely imported into
and exported from the Philippines without need for import and export permits,
clearances or licenses.
b. Regulated Importation and Exportation
These are the goods which are subject to regulation. These goods shall be imported or
exported only after securing the necessary goods declaration or export declaration,
clearances, licenses, and any other requirements, prior to importation or exportation.
In case of importation, submission of requirements after arrival of the goods but prior
to release from customs custody shall be allowed but only in cases provided for by
governing laws or regulations.
c. Prohibited Importation and Exportation
The importation and exportation of the following goods are prohibited:
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a. Written or printed goods in any form containing any matter advocating or

inciting treason, rebellion, insurrection, sedition against the government of the
Philippines, or forcible resistance to any law of the Philippines, or written or
printed goods containing any threat to take the life of, or inflict bodily harm
upon any person in the Philippines;
b. Goods, instruments, drugs and substances designed, intended or adapted for
producing unlawful abortion, or any printed matter which advertises, describes
or gives direct or indirect information where, how or by whom unlawful
abortion is committed;
c. Written or printed goods, negatives or cinematographic films, photographs,
engravings, lithographs, objects, paintings, drawings or other representation of
an obscene or immoral character;
d. Any goods manufactured in whole or in part of gold, silver or other precious
metals or alloys and the stamp, brand or mark does not indicate the actual
fineness of quality of the metals or alloys;
e. Any adulterated or misbranded food or goods for human consumption or any
adulterated or misbranded drug in violation of relevant laws and regulations;
f. Infringing goods as defined under the Intellectual Property Code and related
laws; and
g. All other goods or parts thereof, which importation are explicitly prohibited by
law or rules and regulations issued by the competent authority.
d. Restricted Importation and Exportation
Except when authorized by law or regulation, the importation of the following

restricted goods are prohibited:
1. Dynamite, gunpowder, ammunitions and other explosives, firearms and
weapons of war, or parts thereof;
2. Roulette wheels, gambling outfits, loaded dice, marked cards, machines,
apparatus or mechanical devices used in gambling or the distribution of
money, cigars, cigarettes or other goods when such distribution is dependent
on chance, including jackpot and pinball machines or similar contrivances, or
parts thereof;
3. Lottery and sweepstakes tickets, except advertisements thereof and lists of
drawings therein;
4. Marijuana, opium, poppies, coca leaves, hero in or other narcotics or synthetic
drugs which are or may hereafter be declared habit forming by the President
of the Philippines, or any compound, manufactured salt, derivative, or
preparation thereof, except when imported by the government of the
Philippines or any person duly authorized by the Dangerous Drugs Board, for
medicinal purposes;
5. Opium pipes or parts thereof, of whatever materials; and
6. Any other goods whose importation is restricted.
The restriction to import the above stated goods shall include the restriction on their
transit.
e. Conditionally Tax and/or Duty-Exempt Importation
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The following articles are exempt from import taxes upon compliance with certain
requirements:
(a) Aquatic products such as fishes, crustaceans, mollusks, marine animals,
seaweeds, fish oil, roe, caught or gathered by fishing vessels of Philippine
registry, provided that:
1. They are imported in such vessels or in crafts attached thereto;

2. They have not been landed in any foreign territory or, if so landed,
that they have been landed solely for transshipment without having
been advanced in condition.
(b) Equipment for use in the salvage of vessels or aircrafts, not available
locally, upon identification and the giving of a security in an amount equal to
one hundred percent (100%) of the ascertained duties, taxes and other charges
thereon, conditioned for the exportation thereof or payment of corresponding
duties, taxes and other charges within six (6) months from the date of
acceptance of the goods declaration; Provided, That the Bureau may extend
the time for exportation or payment of duties, taxes and other charges for a
term not exceeding six (6) months from the expiration of the original period;
(c) Cost of repairs, excluding the value of the goods used, made in foreign
countries upon vessels or aircraft documented, registered or licensed in
the Philippines, upon proof satisfactory to the Bureau:
1. that adequate facilities for such repairs are not afforded in the
Philippines; or
2. that such vessels or aircrafts, while in the regular course of their
voyage or flight, were compelled by stress of weather or other
casualty to put into a foreign port to make such repairs in order to
secure the safety, seaworthiness, or airworthiness of the vessels or
aircrafts to enable them to reach their port of destination.
(d) Goods brought into the Philippines for repair, processing or

reconditioning to be reexported upon completion of the repair,
processing or reconditioning: Provided, That the Bureau shall require
security equal to one hundred percent (100%) of the duties, taxes and other
charges thereon, conditioned for the exportation thereof or payment of the
corresponding duties, taxes and other charges within six (6) months from the
date of acceptance of the goods declaration.
(e) Medals, badges, cups, and other small goods bestowed as trophies or
prizes, or those received or accepted as honorary distinction;
(f) Personal and household effects belonging to returning residents including

household appliances, jewelry, precious stones, and other goods of luxury
which were formally declared and listed before departure and identified under
oath before the District Collector when exported from the Philippines by such
returning residents upon their departure therefrom or during their stay abroad;
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personal and household effects including wearing apparel, goods of personal

adornment, toilet goods, instruments related to one's profession and analogous
personal or household effects, excluding luxury items, vehicles, watercrafts,
aircrafts and animals purchased in foreign countries by residents of the
Philippines which were necessary, appropriate, and normally used for their
comfort and convenience during their stay abroad, accompanying them on
their return, or arriving within a reasonable time which, barring unforeseen
and fortuitous events, in no case shall exceed sixty (60) days after the owner's
return.
“Returning residents” shall refer to nationals who have stayed in a foreign

country for a period of at least six (6) months. Returning residents shall have
tax and duty exemption on personal and household effects: Provided, That:
(1) It shall not be in commercial quantities;
(2) It is not intended for barter, sale or for hire; and
(3) Limited to the FCA or FOB value of:
(i) Three hundred fifty thousand pesos (₱350,000.00) for those who
have stayed in a foreign country for at least ten (10) years and have not
availed of this privilege within ten (10) years prior to returning
resident's arrival;
(ii) Two hundred fifty thousand pesos (₱250,000.00) for those who
have stayed in a foreign country for a period of at least five (5) but not
more than ten (10) years and have not availed of this privilege within
five (5) years prior to returning resident's arrival; or
(iii) One hundred fifty thousand pesos (₱150,000.00) for those who
have stayed in a foreign country for a period of less than five (5) years
and have not availed of this privilege within six (6) months prior to
returning resident's arrival.
Any amount in excess of the above-stated threshold shall be subject to the

corresponding duties and taxes.
Overseas Filipino Workers (OFWs)
In addition to the privileges granted under the immediately preceding

paragraph, returning Overseas Filipino Workers (OFWs) shall have the
privilege to bring in, tax and duty-free, home appliances and other durables,
limited to one of every kind once in a given calendar year accompanying them
on their return, or arriving within a reasonable time which, barring unforeseen
and fortuitous events, in no case shall exceed sixty (60) days after every
returning OFW's return upon presentation of their original passport at the port
of entry, provided that any amount in excess of FCA value of one hundred
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fifty thousand pesos (₱150,000.00) for personal and household effects or of

the number of duty-free appliances shall be subject to the corresponding taxes
and duties.
(g) Residents of the Philippines, OFWs or other Filipinos while residing abroad
or upon their return to the Philippines shall be allowed to bring in or send to
their families or relatives in the Philippines balikbayan boxes which shall be
exempt from applicable duties and taxes imposed under the NIRC of 1997, as
amended: Provided:
i. That balikbayan boxes shall contain personal and household effects
only and shall neither be in commercial quantities nor intended for
barter, sale or for hire and that the FCA value of which shall not
exceed one hundred fifty thousand pesos (₱150,000.00)
ii. That residents of the Philippines, OFWs or other Filipinos can only
avail of this privilege up to three (3) times in a calendar year. Any
amount in excess of the allowable non-dutiable value shall be subject
to the applicable duties and taxes;
OFWs refer to Holders of valid passports duly issued by the Department of

Foreign Affairs (DFA) and certified by the Department of Labor and
Employment (DOLE) or the Philippine Overseas Employment Administration
(POEA) for overseas employment purposes. They cover all Filipinos, working
in a foreign country under employment contracts, regardless of their
professions, skills or employment status in a foreign country.
(h) Wearing apparel, goods of personal adornment, toilet goods, portable tools
and instruments, theatrical costumes and similar effects accompanying
travelers, or tourists, or arriving within a reasonable time before or after their
arrival in the Philippines, which are necessary and appropriate for the wear
and use of such persons according to the nature of the journey, their comfort
and convenience; Provided, That this exemption shall not apply to goods
intended for other persons or for barter, sale or hire: Provided, However, That
the Bureau may require either a written commitment or a security in an
amount equal to one hundred percent (100%) of the ascertained duties, taxes
and other charges thereon, conditioned for the exportation thereof or payment
of the corresponding duties, taxes and other charges within three (3) months
from the date of acceptance of the goods declaration: Provided, Further, That
the Bureau may extend the time for exportation or payment of duties, taxes
and other charges for a term not exceeding three (3) months from the
expiration of the original period.
Personal and household effects and vehicles belonging to foreign consultants

and experts hired by, or rendering service to, the government, and their staff
or personnel and families accompanying them or arriving within a reasonable
time before or after their arrival in the Philippines, in quantities and of the
kind necessary and suitable to the profession, rank or position of the person
importing said items, for their own use and not for barter, sale or hire:
Provided, That the Bureau may require either a written commitment or a
security in an amount equal to one hundred percent (100%) of the ascertained
duties, taxes and other charges thereon, upon the goods classified under this
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subsection; conditioned for the exportation thereof or payment of the

corresponding duties, taxes and other charges within three (3) months after
the expiration of their term or contract; Provided, However, That the Bureau
may extend the time for exportation or payment of duties, taxes and other
charges for a term not exceeding three (3) months from the expiration of the
original period;
(i) Professional instruments and implements, tools of trade, occupation or

employment, wearing apparel, domestic animals, and personal and household
effects belonging to persons coming to settle in the Philippines or Filipinos or
their families and descendants who are now residents or citizens of other
countries, such parties hereinafter referred to as overseas Filipinos, in
quantities and of the class suitable to the profession, rank or position of the
persons importing said items, for their own use and not for barter or sale,
accompanying such persons, or arriving within a reasonable time: Provided,
That the Bureau may, upon the production of satisfactory evidence that such
persons are actually coming to settle in the Philippines and that the goods are
brought from their former place of abode, exempt such goods from the
payment of duties and taxes; Provided, Further, That vehicles, vessels,
aircrafts, machineries and other similar goods for use in manufacture, shall
not fall within this classification and shall therefore be subject to duties, taxes
and other charges;
(j) Goods used exclusively for public entertainment, and for display in public
expositions, or for exhibition or competition for prizes, and devices for
projecting pictures and parts and appurtenances thereof, upon identification,
examination, and appraisal and the giving of a security in an amount equal to
one hundred percent (100%) of the ascertained duties, taxes and other charges
thereon, conditione d for exportation thereof or payment of the corresponding
duties, taxes and other charges within three (3) months from the date of
acceptance of the goods declaration: Provided, That the Bureau may extend
the time for exportation or payment of duties, taxes and other charges for a
term not exceeding three (3) months from the expiration of the original
period; and technical and scientific films when imported by technical, cultural
and scientific institutions, and not to be exhibited for profit: Provided,
Further, That if any of the films is exhibited for profit, the proceeds
therefrom, shall be subject to confiscation, in addition to the penalty
providedamder this Act;
(k) Goods brought by foreign film producers directly and exclusively used for
making or recording motion picture films on location in the Philippines, upon
their identification, examination and appraisal and the giving of a security in
an amount equal to one hundred percent (100%) of the ascertained duties,
taxes and other charges thereon, conditioned for exportation thereof or
payment of the corresponding duties, taxes and other charges within three (3)
months from the date of acceptance of the goods declaration, unless extended
by the District Collector for another three (3) months; photographic and
cinematographic films, underdeveloped, exposed outside the Philippines by
resident Filipino citizens or by producing companies of Philippine registry
where the principal actors and artists employed for the production are
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Filipinos, upon affidavit by the importer and identification that such exposed
films are the same films previously exported from the Philippines. As used in
this paragraph, the terms “actors” and “artists” include the persons operating
the photographic camera or other photographic and sound recording apparatus
by which the film is made;
(l) Importations for the official use of foreign embassies, legations and other
agencies of foreign governments: Provided, That those foreign countries
accord like privileges to corresponding agencies of the Philippines. Goods
imported for the personal or family use of members and attaches of foreign
embassies, legations, consular officers and other representatives of foreign
governments; Provided, However, That such privilege shall be accorded
under special agreements between the Philippines and the countries which
they represent: Provided, Further, That the privilege may be granted only
upon specific instructions of the Secretary of Finance pursuant to an official
request of the DFA on behalf of members or attaches of foreign embassies,
legations, consular officers and other representatives of foreign governments;
(m) Imported goods donated to or, for the account of the Philippine government
or any duly registered relief organization, not operated for profit, for free
distribution among the needy, upon certification by theDSWD or the
Department of Education (DepED), or the Department of Health (DOH), as
the case may be;
(n) Containers, holders and other similar receptacles of any material including
kraft paper bags for locally manufactured cement for export, including
corrugated boxes for bananas, mangoes, pineapples and other fresh fruits for
export, except other containers made of paper, paperboard and textile fabrics,
which are of such character as to be readily identifiable and/or reusable for
shipment or transportation of goods shall be delivered to the importer thereof
upon identification, examination and appraisal and the giving of a security in
an amount equal to one hundred percent (100%) of the ascertained duties,
taxes and other charges thereon, within six (6) months from the date of
acceptance of the goods declaration;
(o) Supplies which are necessary for the reasonable requirements of the vessel or
aircraft in its voyage or flight outside the Philippines, including goods
transferred from a bonded warehouse in any Customs District to any vessel or
aircraft engagedin foreign trade, for use or consumption of the passengers or
its crew on board such vessel or aircraft as sea or air stores; or goods
purchased abroad for sale on board a vessel or aircraft as saloon stores or air
store supplies; Provided, That any surplus or excess of such vessel or aircraft
supplies arriving from foreign ports or airports shall be dutiable;
(p) Goods and salvage from vessels recovered after a period of two (2) years
from the date of filing the marine protest or the time when the vessel was
wrecked or abandoned, or parts of a foreign vessel or its equipment, wrecked
or abandoned in Philippine waters or elsewhere: Provided, That goods and
salvage recovered within the said period of two (2) years shall be dutiable;
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(q) Coffins or urns containing human remains, bones or ashes, used personal and
household effects (not merchandise) of the deceased person, except vehicles,
the FCA value of which does not exceed one hundred fifty thousand pesos
(₱150,000.00), upon identification as such: Provided, That every three (3)
years after the effectivity of this Act, the value herein stated shall be adjusted
to its present value using the CPI as published by the PSA;
(r) Samples of the kind, in such quantity and of such dimension or construction
as to render them unsaleable or of no commercial value; models not adapted
for practical use; and samples of medicines, properly marked “sample-sale
punishable by law”, for the purpose of introducing new goods in the
Philippine market and imported only once in a quantity sufficient for such
purpose by a person duly registered and identified to be engaged in that trade:
Provided, That importations under this subsection shall be previously
authorized by the Secretary of Finance: Provided, However, That importation
of sample medicines shall have been previously authorized by the Secretary
of Health, and that such samples are new medicines not available in the
Philippines: Provided, Further, That samples not previously authorized or
properly marked in accordance with this section shall be levied the
corresponding tariff duty.
Commercial samples, except those that are not readily and easily identifiable
as in the case of precious and semi-precious stones, cut or uncut, and jewelry
set with precious or semi-precious stones, the value of any single importation
of which does not exceed FCA value of fifty thousand pesos (₱50,000.00)
upon the giving of a security in an amount equal to the ascertained duties,
taxes and other charges thereon, conditioned for the exportation of said
samples within three (3) months from the date of the acceptance of the goods
declaration or in default thereof, the payment of the corresponding duties,
taxes and other charges: Provided, That if the FCA value of any single
consignment of such commercial samples exceeds fifty thousand pesos
(₱50,000.00), the importer thereof may select any portion of the same not
exceeding the FCA value of fifty thousand pesos (₱50,000,00) for entry under
the provision of this subsection, and the excess of the consignment may be
entered in bond, or for consumption, as the importer may elect: Provided,
Further, That every three (3) years after the effectivity of this Act, the
Secretary of Finance shall adjust the amount herein stated to its present value
using the CPI as published by the PSA.
(s) Animals, except race horses, and plants for scientific, experimental
propagation or breeding, and for other botanical, zoological and national
defense purposes: Provided, That no live trees, shoots, plants, moss and
bulbs, tubers and seeds for propagation purposes may be imported under this
section, except by order of the government or other duly authorized
institutions; Provided, However, That the free entry of animals for breeding
purposes shall be restricted to animals of recognized breed, duly registered in
the record or registry established for that breed, and certified as such by the
Bureau of Animal Industry (BAI): Provided, Further, That the certification of
such record, and pedigree of such animal duly authenticated by the proper
custodian of such record or registry, shall be submitted to the District
Collector, together with the affidavit of the owner or importer that such
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animal is the animal described in said certificate of record and pedigree:

Provided, Finally, That the animals and plants are certified by the NEDA as
necessary for economic development;
(t) Economic, technical, vocational, scientific, philosophical, historical and
cultural books or publications, and religious books like Bibles, missals, prayer
books, the Koran, Ahadith and other religious books of similar nature and
extracts therefrom, hymnal and hymns for religious uses; Provided, That
those which may have already been imported but are yet to be released by the
Bureau at the effectivity of this Act may still enjoy the privilege herein
provided upon certification by the DepED that such imported books and/or
publications are for economic, technical, vocational, scientific, philosophical,
historical or cultural purposes or that the same are educational, scientific or
cultural materials covered by the International Agreement on Importation of
Educational Scientific and Cultural Materials (XAESCM) signed by the
President of the Philippines on August 2, 1952, or other agreements binding
upon the Philippines. Educational, scientific and cultural materials covered by
international agreements or commitments binding upon the Philippine
government so certified by the DepED.
(u) Philippine goods previously exported from the Philippines and returned
without having been advanced in value, or improved in condition by any
process of manufacturing or other means, and upon which no drawback or
bounty has been allowed, including instruments and implements, tools of
trade, machinery and equipment, used abroad by Filipino citizens in the
pursuit of their business, occupation or profession; and foreign goods
previously imported when returned after haiffif been exported and loaned for
use temporarily abroad solely for exhibition, testing and experimentation, for
scientific or educational purposes; and foreign containers previously imported
which have been used in packing exported Philippine goods and returned
empty if imported by or for the account of the person or institution who
exported them from the Philippines and not for sale, barter or hire subject to
identification: Provided, That Philippine goods falling under this subsection
upon which drawback or bounty have been allowed shall, upon reimportation
thereof, be subject to a duty under this subsection equal to the amount of such
drawback or bounty;
(v) Aircraft, equipment and machinery, spare parts, commissary and catering
supplies, aviation gas, fuel and oil, whether crude or refined except when
directly or indirectly used for domestic operations, and such other goods or
supplies imported by and for the use of scheduled airlines operating under
congressional franchise: Provided, That such goods or supplies are not locally
available in reasonable quantity, quality and price and are necessary or
incidental to the proper operation of the scheduled airline importing the same;
(w) Machineries, equipment, tools for production, plans to convert mineral ores
into saleable form, spare parts, supplies, materials, accessories, explosives,
chemicals, and transportation and communications facilities imported by and
for the use of new mines and old mines which resume operations, when
certified to as such by the Secretary of the Department of Environment and
Natural Eesources (DENE), upon the recommendation of the Director of
Mines and Geosciences Bureau, for a period ending five (5) years from the
first date of actual commercial production of saleable mineral products:
Provided, That such goods are not locally available in reasonable quantity,
Page 13 of 36
quality and price and are necessary or incidental in the proper operation of the
mine; and aircrafts imported by agro-industrial companies to be used by them
in their agriculture and industrial operations or activities, spare parts and
accessories thereof, when certified to as such by the Secretary of the
Department of Agriculture (DA) or the Secretary of the Department of Trade
and Industry (DTI), as the case may be;
(x) Spare parts of vessels or aircraft of foreign registry engaged in foreign trade
when brought into the Philippines exclusively as replacements or for the
emergency repair thereof, upon proof satisfactory to the District Collector that
such spare parts shaft he utilized to secure the safety, seaworthiness or
airworthiness of the vessel or aircraft, to enable it to continue its voyage or
flight;
(y) Goods exported from the Philippines for repair, processing or reconditioning
without having been substantially advanced in value, and subsequently
reimported in its original form and in the same state: Provided, That in case
the reimported goods advanced in value, whether or not in their original state,
the value added shall be subject to the applicable duty rate of the tariff
heading of the reimported goods; and
(z) Trailer chassis when imported by shipping companies for their exclusive use
in handling containerized cargo, upon posting a security in an amount equal
to one hundred percent (100%) of the ascertained duties, taxes and other
charges due thereon, to cover aperiod of one (1) year from the date of
acceptance of the entry, which period, for meritorious reasons, may be
extended by the Commissioner from year to year, subject to the following
conditions:
(1) That they shall be properly identified and registered with the Land
Transportation Office (LTO);
(2) That they shall be subject to customs supervision fee to be fixed by the
District Collector and subject to the approval of the Commissioner;
(3) That they shall be deposited in the customs territory when not in use;
and
(4) That upon the expiration of the period prescribed above, duties and
taxes shall be paid unless otherwise reexported.
(aa) Any officer or employee of the DEA, including any attache, civil or
military or member of the staff assigned to a Philippine diplomatic mission
abroad by the Department or any similar officer or employee of other
departments assigned to any Philippine consular office abroad, or any AFP
military personnel accorded assimilated diplomatic rank or on duty abroad
who is returning from a regular assignment abroad, for reassignment to the
home office, or who dies, resigns, or is retired from the service, after the
approval of this Act, shall be exempt from the payment of all duties and taxes
on personal and household effects, including one (1) motor car which must
have been ordered or purchased prior to the receipt by the mission or
consulate of the order of recall, and which must be registered in the name of
the officer or employee: Provided, That this exemption shall apply only to the
value of the motor car and to the aggregate assessed value of the personal and
household effects, the latter not to exceed thirty percent (30%) of the total
amount received by the officer or employee in salary and allowances during
the latest assignment abroad, but not to exceed four (4) years: Provided,
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However, That this exemption shall not be availed of more than once every
four (4) years: Provided, Further, That the officer or employee concerned
must have served abroad for not less than two (2) years.
The provisions of general and special laws, to the contrary notwithstanding,

including those granting franchises, there shall be no exemption whatsoever
from the payment of duties except as provided for in this Act; those granted to
government agencies, instrumentalities or government-owned or -controlled
corporations (GOCCs) with existing contracts, commitments, agreements, or
obligations with foreign countries requiring such exemption; those granted to
international institutions, associations or organizations entitled to exemption
pursuant to agreements or special laws; and those that may be granted by the
President upon prior recommendation of the NEDA in the interest of national
economic development.
III. Import Clearance and Formalities
1. Goods Declaration
All goods imported into the Philippines shall be entered through a customs office at a
port of entry, or may be admitted to or removed from a free zone, as the case may be.
Unless otherwise provided by law, all imported goods shall be subject to the
lodgement of a goods declaration.
Lodgement refers to the registration of a goods declaration with the Bureau.
A goods declaration may be for consumption, for customs bonded warehousing, for
admission, for conditional importation, or for customs transit.
Goods declaration must be lodged within fifteen (15) days from the date of discharge
of the last package from the vessel or aircraft. The period to file the goods declaration may,
upon request, be extended on valid grounds for another fifteen (15) days: Provided, that the
request is made before the expiration of the original period within which to file the goods
declaration: Provided, However, that the period of the lodgement of the goods declaration
may be adjusted by the Commissioner.
Rights and responsibilities of declarant
A declarant may be a consignee or a person who has the right to dispose of the goods, to wit:
(a) The importer, being the holder of the bill of lading; or

(b) The exporter, being the owner of the goods to be shipped out; or
(c) A customs broker acting under the authority of the importer or from a holder of the
bill; or
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(d) A person duly empowered to act as agent or attorney-in-fact for each holder.
The underwriters of abandoned goods and the saviours of goods saved from wreck at sea,
coast, or in any area of the Philippines, may be regarded as the consignees.
In case the consignee or the person who has the right to dispose of the goods is a juridical
person, it may authorize a responsible officer of the company to sign the goods declaration as
declarant on its behalf.
The declarant shall be responsible for the accuracy of the goods declaration and for the
payment of all duties, taxes and other charges due on the imported goods.
The licensed customs broker shall likewise be responsible for the accuracy of the goods
declaration but shall not be responsible for the payment of duties, taxes and other charges
due on the imported goods.
The declarant shall sign the goods declaration, even when assisted by a licensed customs
broker, who shall likewise sign the goods declaration.
Penalties for Errors in Goods Declaration
Substantial penalties shall not be imposed for errors when such errors are inadvertent and
there was no fraudulent intent or gross negligence in the commission thereof. However, a
penalty may be imposed in order to discourage repetition of such errors provided that the
same shall not be excessive.
Goods Declaration for Consumption (Formal entry process)
All goods declaration for consumption shall be cleared through a formal entry process except
for the following goods which shall be cleared through an informal entry process:
(a) Goods of a commercial nature with Free on Board (FOB) or Free Carrier At
(FCA) value of less than fifty thousand pesos (₱50,000.00). Every three (3) years after
the effectivity of this Act, the Secretary of Finance shall adjust this amount as
provided herein to its present value, using the Consumer Price Index (CPI) as
published by the PSA; and
(b) Personal and household effects or goods, not in commercial quantity, imported in
a passenger’s baggage or mail.
All importations entered through a formal entry process shall be covered by a letter of credit
or any verifiable commercial document evidencing payment, or in cases where there is no
sale for export, by any commercial document indicating the commercial value of the goods.
Entry of Goods in Part for Consumption and in Part for Warehousing
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Goods declaration covered by one bill of lading or airway bill over goods which are meant in
part for consumption and in part for warehousing may be both entered simultaneously for
release at the port of entry.
Provisional Goods Declaration
Where the declarant does not have all the information or supporting documents required to
complete the goods declaration, the lodging of a provisional goods declaration may be
allowed: Provided, That it substantially contains the necessary information required by the
Bureau and the declarant undertakes to complete the information or submit the supporting
documents within forty-five (45) days from the filing of the provisional goods declaration,
which period may be extended by the Bureau for another forty-five (45) days for valid
reasons.
If the Bureau accepts a provisional goods declaration, the duty treatment of the goods shall
not be different from that of goods with complete declaration.
Goods under a provisional goods declaration may be released upon posting of any required
security equivalent to the amount ascertained to be the applicable duties and taxes.
Liability of Importer for Duties and Taxes
Unless relieved by laws or regulations, the liability for duties, taxes, fees, and other charges
attached to importation constitutes a personal debt due and demandable against the importer
in favor of the government and shall be discharged only upon payment of duties, taxes, fees
and other charges. It also constitutes a lien on the imported goods which may be enforced
while such goods are under customs' custody.
Importations by the Government
Except those provided for in Section 800 of the CMTA, all importations by the government
for its own use or that of its subordinate branches or instrumentalities, or corporations,
agencies or instrumentalities owned or controlled by the government, shall be subject to
duties, taxes, fees and other charges.
Forwarding of Cargo and Remains of Wrecked Vessel or Aircraft
When vessels or aircrafts are wrecked within the Philippines, the original owners or
consignees of the cargo, or by its underwriters, in ease of abandonment, may seek approval
from the Bureau to forward the goods saved from the wreck to the ports of destination
without going through the customs office in the district in which the goods were cast ashore
or unloaded. Upon approval, the goods may be forwarded with particular manifests and duly
certified by a customs officer in charge of the goods.
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The owner of the vessel or aircraft may be permitted to export the remains of the wreck upon
proper examination and inspection. The remains of a wrecked vessel shall include not only its
hull and rigging, but also all sea stores, goods and equipment, such as sails, ropes and chain
anchors.
Derelicts and Goods from Abandoned Wrecks
1. Derelicts and all goods recovered from sea or from abandoned wrecks shall be under
the jurisdiction of the port where the goods arrive, and shall be retained in the custody
of the Bureau. If not claimed by the owner, underwriter or salvor, the same shall be
deemed as property of the government.
2. Derelicts and goods salvaged from foreign vessels or aircrafts recovered from sea or
wreck are prima facie dutiable and may be entered for consumption or warehousing.
If claimed to be of Philippine production, and consequently conditionally duty-free,
proof must be submitted as in ordinary cases of reimportation of goods. Foreign goods
landed from a vessel or aircraft in distress is dutiable if sold or disposed of in the
Philippines.
3. No part of a Philippine vessel or aircraft or its equipment, wrecked either in
Philippine or foreign waters, shall be subject to duty.
2. Examination of Goods
Examination of goods, when required by the Bureau, shall be conducted immediately after
the goods declaration has been lodged. Priority in the examination shall be given to live
animals, perishable goods and other goods requiring immediate examination.
As a general rule, the Bureau may examine the goods in the presence of the declarant or an
authorized representative. Examination of the goods in the absence of the declarant or
authorized representative may be allowed in exceptional circumstance and for valid and
justifiable grounds.
The Bureau shall take samples of the goods only when needed to establish the tariff
description and value of goods declared, or to ensure compliance with the CMTA.
Conditions for Examination
Pursuant to internationally accepted standards, the Bureau may adopt nonintrusive

examination of goods, such as the use of x-ray machines.
Physical examination of the goods shall be conducted when:
(a) It is directed by the Commissioner on account of derogatory information;

(b) The goods are subject to an Alert Order issued by competent authority;
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(c) The goods are electronically selected for physical examination;

(d) There are issues and controversies surrounding the goods declaration and the
import clearance process; or
(e) The importer or declarant requests for the examination of the goods.
The Commissioner may exempt from physical examination the goods of authorized economic
operators or of those provided for under any existing trade facilitation program of the Bureau.
Physical examination, when required, shall be conducted in an expeditious manner.
3. Assessment and Release
No duties and taxes shall be collected on goods with an FOB or FCA value of ten thousand
pesos (₱10,000.00) or below.
Tentative Assessment of Goods Subject to Dispute Settlement
Assessment shall be deemed tentative if the duties and taxes initially assessed are disputed by
the importer. The assessment shall be completed upon final readjustment based on the tariff
ruling in case of classification dispute, or the final resolution of the protest case involving
valuation, rules of origin, and other customs issues.
The District Collector may allow the release of the imported goods under tentative
assessment upon the posting of sufficient security to cover the applicable duties and taxes
equivalent to the amount that is disputed.
Tentative Assessment of Provisional Goods Declaration
Assessment of a provisional goods declaration shall be deemed tentative and such assessment
shall be completed upon final readjustment and submission by the declarant of the additional
information or documentation required to complete the declaration within the period provided
in Section 403.
Readjustment of Appraisal, Classification or Return
Such appraisal, classification or return, as finally passed upon and approved or modified by
the District Collector, shall not be altered or modified in any manner, except:
(1) Within one (1) year after payment of the duties, upon statement of error in conformity
with Section 912 of this Act, as approved by the District Collector;
(2) Within fifteen (15) days after such payment, upon request for reappraisal or
reclassification addressed to the Commissioner by the District Collector, if the appraisal or
classification is deemed to be low;
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(3) Upon request for reappraisal and/or reclassification, in the form of a timely protest
addressed to the District Collector by the interested party if the latter should be dissatisfied
with the appraisal or return; or
(4) Upon demand by the Commissioner after the completion of compliance audit in
accordance with the provisions of this Act.
Assessment of Duty on Less Than Entered Value
Duty shall not be assessed in any case upon an amount less than the entered value, unless by
direction of the Commissioner in cases when the importer certifies at the time of entry that
the entered value is higher than the dutiable value and that the goods are so entered in order
to meet increases made by the appraiser in similar cases then pending re-appraisement; and
the lower assessment shall be allowed only when the importer's contention is sustained by a
final decision, and shall appear that such action of the importer was taken in good faith after
due diligence and inquiry.
Period of Limitation
In the absence of fraud and when the goods have been finally assessed and released, the
assessment shall be conclusive upon all parties three (3) years from the date of final payment
of duties and taxes, or upon completion of the post clearance audit.
Release of Goods after Payment of Duties and Taxes

Goods declared shall be released when duties and taxes and other lawful charges have been
paid or secured and all the pertinent laws, rules and regulations have been complied with.
When the Bureau requires laboratory analysis of samples, detailed technical documents or
expert advice, it may release the goods before the results of such examination are known after
posting of sufficient security by the declarant.
IV. Export Clearance and Formalities
Export Declaration
All goods exported from the Philippines, whether subject to export duty or not, shall be
declared through a competent customs office through an export declaration, duly signed
electronically or otherwise by the party making the declaration.
The description of the goods in the export declaration must contain sufficient and specific
information for statistical purposes as well as for the proper valuation and classification of the
goods.
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V. Customs Transit and Transhipment
A. Customs transit
Transit refers to the customs procedure under which goods, in its original form, are
transported under customs control from one customs office to another, or to a free zone.
Customs transit within the customs territory shall be allowed for goods except those intended
for consumption, to be transported as follows:
(a) From port of entry to another port of entry as exit point for outright exportation;
(b) From port of entry to another port of entry or inland customs office;
(c) From inland customs office to a port of entry as exit point for outright exportation;
and
(d) From one port of entry or inland customs office to another port of entry or inland
customs office.
Transit goods admitted for storage in a customs bonded warehouse, or for outright
exportation at the port of destination or inland customs office, and goods intended for transit
covered by Republic Act No. 10668, otherwise known as “An Act Allowing Foreign Vessels
to Transport and Co-Load Foreign Cargoes for Domestic Transshipment and for Other
Purposes”, shall not be subject to the payment of duties and taxes at the port of entry:
Provided, That any conditions and security required by the Bureau are complied with.
Goods for consumption and other goods intended for customs transit not covered by the
immediately preceding paragraph shall be subject to the payment of duties and taxes at the
port of discharge.
B. Customs Transshipment
Transhipment refers to the customs procedure under which goods are transferred under
customs control from the importing means of transport to the exporting means of transport
within the area of one customs office, which is the office of both importation and exportation.
Goods admitted for transshipment shall not be subject to the payment of duties and taxes:
Provided, That the goods declaration for customs transshipment particularly indicates such
nature of the goods, duly supported by commercial or transport documents or evidence as
required by the Bureau.
Goods for transshipment must be exported from the Philippines within thirty (30) days from
arrival thereof. The Commissioner may allow an extension of such period after the
establishment of valid reasons.
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VI. Import Duty and Tax
A. Basis of valuation
See Chapter 1, Title VII, CMTA (Probably, this will not be given in the exam. )
B. Special Duties and Trade Remedy Measures
Government's Right of Compulsory Acquisition
In order to protect government revenues against undervaluation of goods, the Commissioner

may, motu proprio or upon the recommendation of the District Collector, acquire imported
goods under question for a price equal to their declared customs value plus any duties already
paid on the goods, payment for which shall be made within ten (10) working days from
issuance of a warrant signed by the Commissioner for the acquisition of such goods.
Right to Appeal
An importer who is dissatisfied with a decision of the Commissioner pertaining to the
government’s right of compulsory acquisition may appeal to the Secretary of Justice within
twenty (20) working days after the date on which notice of the decision is given, and
thereafter if still dissatisfied, he may appeal to the CTA within 30 days.
Where No Appeal is made
Where no appeal is made by the importer, or upon reaffirmation of the Commissioner's

decision during the appeals process, the Bureau or its agents shall sell the acquired goods
pursuant to existing laws and regulations.
Types of Special Duties
1. Dumping Duty – refers to a special duty imposed on the importations into the
Philippines at less than its normal value when destined for domestic consumption in
the exporting country. The amount is the difference between the export price and the
normal value of such product, commodity or article.
Dumping means exporting goods to other country in large quantity at a cheaper rate.
There are 2 types of dumping:
 Price Dumping: It means selling goods in foreign country at price lower

than the price of home country.
 Cost Dumping: It means selling goods in foreign countries at a price lower
than cost of production. It is aimed at wiping out the domestic producers
from the market. It is also called Predatory dumping.
2. Safeguard Duty – this refers to the general safeguard measure upon a positive final
determination that a product being imported into the country in increased quantities
substantially caused serious injury or threat to the domestic industry. In the case of
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non- agricultural products, the Secretary shall first establish that the application of
such safeguard measure will be in the public interest.
The appropriate definitive measures shall be in the form of:
a. An increase in the duty on the reported product;

b. A decrease in the imposition of a tariff rate quota in the product;
c. A modification of the quantitative restriction on the importation of the
product;
d. A provision for Trade Adjustment Assistance;
e. Any combination of the actions described above.
3. Countervailing Duty – refers to the duty imposed whenever the following conditions
are present:
a. Any product is granted directly or indirectly by the government in the country

of origin or exportation, any kind or form of specific subsidy upon the
production, manufacture or exportation of such product; and
b. The importation of such subsidized product, commodity or article has caused
or threatens to cause material injury to a domestic industry or has materially
retarded the growth or prevents the establishment of a domestic industry.
The amount of the countervailing duty shall be equal to the ascertained amount of the
subsidy.
4. Marking Duty – refers to the special duty of five percent (5%) ad valorem imposed
on articles not properly marked in accordance with Section 710 of the CMTA. The
purpose of the surtax is to present possible deception of the consumers.
5. Discriminatory Duty – refers to the special duty, in an amount not exceeding 100%
ad valorem, upon goods imported in a vessel of any foreign country whenever the
President shall find as a fact that such country:
a. Imposes, directly or indirectly, up on the disposition or transportation in transit

or through reexportation from such country of any goods wholly or in part the
growth or product of the Philippines, any unreasonable charge, exaction,
regulation or limitation which is not equally enforced upon the like goods of
every foreign country; or
b. Discriminates in fact against the commerce of the Philippines, directly or
indirectly, by law or administrative regulation or practice, by or in respect to
any customs, tonnage, or port duty, fee, charge, exaction, classification,
regulation, condition, restriction or prohibition, in such manner as to place the
commerce of the Philippines at a disadvantage compared with the commerce
of any foreign country.
6. Duties imposed under the flexible tariff – refers to the import duties which are
modified by the President upon investigation of the Tariff Commission and
recommendation of the NEDA in the interest of national economy, general welfare
and national security.
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Under Section 1608 (Flexible Clause) of the CMTA, the President is empowered to:
a. Increase, reduce, or remove existing rates of import duty including any

necessary change in classification. The existing rates may be increased or
decreased to any level, in one or several stages, but in no case shall the
increased rate of import duty be higher than a maximum of one hundred
percent (100%) ad valorem;
b. Establish import quotas or ban imports of any commodity, as may be
necessary; and
c. Impose an additional duty on all imports not exceeding ten percent (10%) ad
valorem whenever necessary: Provided, That upon periodic investigations by
the Commission and recommendation of the NEDA, the President may cause a
gradual reduction of rates of import duty granted in Section 1611 of this Act,
including those subsequently granted pursuant to this section.
Limitation on the exercise of the power under flexible clause
The power delegated to the President shall be exercised only when Congress is not in
session. The power may be withdrawn or terminated by Congress through a joint
resolution.
(Topic for next meeting 3/31/2017)

VII. Duty Drawback and Refund
A. Duty Drawback
Basis of Duty Drawback
1. On Fuel Used for Propulsion of Vessels — On all fuel imported into the Philippines
used for propulsion of vessels engaged in trade with foreign countries, or in the
coastwise trade, a refund or tax credit shall be allowed not exceeding ninety-nine
percent (99%) of the duty imposed by law upon such fuel, which shall be paid or
credited under such rules and regulations as may be prescribed by the Commissioner
with the approval of the Secretary of Finance.
2. On Petroleum Oils and Oils Obtained from Bituminous Minerals, Crude, Eventually
Used for Generation of Electric Power and for the Manufacture of City Gas.— On
petroleum oils and oils obtained from bituminous materials, crude oil imported by
nonelectric utilities, sold directly or indirectly, in the same form or after processing, to
electric utilities for the generation of electric power and for the manufacture of city gas,
a refund or tax credit shall be allowed not exceeding fifty percent (50%) of the duty
imposed by law upon such oils, which shall be paid or credited under such rules and
regulations as may be prescribed by the Commissioner with the approval of the
Secretary of Finance.
3. On Goods Made from Imported Materials.— Upon exportation of goods manufactured
or produced in the Philippines, including the packing, covering, putting up, marking or
labeling hereof either in whole or in part of the imported materials for which duties
have been paid, a refund or tax credit shall be allowed for the duties paid on the
Page 24 of 36
imported materials so used including the packing, covering, putting up, marking or
labeling thereof subject to the following conditions:
a. The actual use of the imported materials in the production or manufacture of the
goods exported with their quantity, value, and amount of duties paid thereon,
should be established satisfactorily;
b. The duties refunded or credited shall not exceed one hundred percent (100%) of
duties paid on the imported materials used;
c. There is no determination by the NEDA of the requirement for certification on
nonavailability of locally-produced or manufactured competitive substitutes for
the imported materials used at the time of importation;
d. The exportation shall be made within one (1) year after the importation of
materials used and daim of refund or tax credit shall be filed within six (6)
months from the date of exportation; and
e. When two or more products result from the use of the same imported materials,
an apportionment shall be made on its equitable basis.
Payment of Drawbacks
Eligible claims for refund or tax credit shall be paid or granted by the Bureau to claimants
within sixty (60) days after receipt of properly accomplished claims: Provided, That a
registered enterprise under Investment Incentives Act or Export Incentives Act of 1970,
which has previously enjoyed tax credits based on customs duties paid on imported raw
materials and supplies, shall not be entitled to a drawback under this section with respect to
the same importation subsequently processed and reexported.
Prescription of Drawback Claim
a. Fuel Used for Propulsion of Vessels -- Within one (1) year from the date of importation.
b. Petroleum Oils and Oils Obtained from Bituminous Minerals, Crude, Eventually Used
for Generation of Electric Power and for the Manufacture of City Gas – Within one (1)
year from the date of importation.
c. Goods Made from Imported Materials -- within one (1) year from the date of exportation.
B. Refund
Refund shall be granted where it is established that duties and taxes have been overcharged as
a result of an error in the assessment or goods declaration. However, the same shall not be
granted if the amount of duties and taxes involved is less than five thousand pesos
(₱5,000.00).
C. Abatement
When goods have not yet been released for consumption or have been placed under another
customs procedure, provided that no other offense or violation has been committed, the
declarant shall neither be required to pay the duties and taxes nor be entitled to refund thereof
in any of the following cases:
Page 25 of 36
1. When, at the request of the declarant, the goods are abandoned, or as determined
by the Bureau, the goods are destroyed or rendered commercially valueless while
under customs control. Any cost herein incurred shall be borne by the declarant;
2. When goods are destroyed or irrecoverably lost by accident or force majeure, the
remaining waste or scrap after destruction, if taken into consumption, shall be
subject to the duties and taxes that would be applicable on such waste or scrap if
imported in same state; and
3. When there are shortages due to the nature of the goods.
Abatement for Damage Incurred During Voyage
No abatement of duties shall be made on account of damage incurred or deterioration

suffered during the voyage of importation; and duties will be assessed on the actual quantity
imported as determined by the customs officers concerned.
Abatement or Refund of Duty on Missing Package
When any package appearing on the manifest or bill of lading or airway bill is missing, an
abatement or refund of the duty shall he made if it is certified by the importer or consignee,
under pain of penalty for falsification or perjury, and upon production of proof satisfactory to
the Collector concerned, that the package in question has not been unlawfully imported into
the Philippines.
Abatement or Refund for Deficiency in Contents of Packages
If, upon opening of any package, a deficiency in the quantity of the goods is found to exist
based upon the invoice, such deficiency shall be certified, under pain of penalty for
falsification or perjury, by the customs officers concerned and upon the production of proof
showing that the shortage occurred before the arrival of the goods in the Philippines. Upon
sufficient proof thereof, the proper abatement or refund of the duty shall be made.
Abatement or Refund of Duties on Goods Lost or Destroyed After Arrival
The Bureau may abate or refund the amount of duties accruing or paid on any goods that
have been lost due to injury, theft, destruction through fire or through any other causes, upon
satisfactory proof of the same, under any of the following circumstances:
(a) While within the territory of any port of entry, prior to unloading under the Bureau’s
supervision;
(b) While remaining in customs custody after unloading;
(c) While in transit from the port of entry to any port in the Philippines; and
(d) While released under sufficient security for export except in case of loss by theft.
Abatement and Refund of Defective Goods
An abatement and refund shall be granted on imported or exported goods which are found
defective or otherwise not in accordance with the agreed specifications at the time of
importation or exportation and are returned either to the supplier or to another person
designated by the supplier, subject to the following conditions:
Page 26 of 36
(a) The goods have not been worked, repaired, or used in the country of importation, and
are reexported within a reasonable time; and
(b) The goods have not been worked, repaired, or used in the country to which they were
exported, and are reimported within a reasonable time.
Use of the goods shall, however, not hinder the refund if such use was indispensable to
discover the defects or other circumstances which caused the reexportation or reimportation
of the goods.
As an alternative to reexportation or reimportation, the goods may be expressly abandoned or

destroyed or rendered commercially valueless under customs control as the Bureau may
decide. In such case, the importer shall not be entitled to an abatement or a refund if it does
not defray the costs of such abandonment, destruction, or rendition.
Abatement of Duty on Dead or Injured Animals
Where it is certified, under pain of penalty for falsification or perjury, and upon production of
proof satisfactory to the Bureau that an animal subject of importation dies or suffers injury
before arrival, or while in customs custody, the duty due thereon shall be abated provided that
its carcass on board or in customs custody is removed in the manner required by the Bureau
and at the expense of the importer.
Refund Arising from Correction of Errors
Errors may be corrected in the computation of duties and be eventually refunded within the
statutory time limit, if:
1. Such errors are discovered before the payments of duties; or

2. If discovered within one (1) year after release from customs custody of imported
goods upon written request and notice of error from the importer; or
3. Upon statement of error certified by the District Collector.
Period to claim refund
All claims and application for refund of duties and taxes shall be made in writing and filed
with the Bureau within twelve (12) months from the date of payment of duties and taxes.
Appeal on denial of claim for refund
The importer may file an appeal of a denial of a claim for refund or abatement, whether it is a
full or partial denial, with the Commissioner within thirty (30) days from the date of the
receipt of the denial. The Commissioner shall render a decision within thirty (30) days from
the receipt of all the necessary documents supporting the application. Within thirty (30) days
from receipt of the decision of the Commissioner, the case may also be appealed to the CTA.
Page 27 of 36
VIII. Post Clearance Audit
Audit and Examination of Records
Within three (3) years from the date of final payment of duties and taxes or customs
clearance, as the case may be, the Bureau may conduct an audit examination, inspection,
verification, and investigation of records pertaining to any goods declaration, which shall
include statements, declarations, documents, and electronically generated or machine
readable data, for the purpose of ascertaining the correctness of the goods declaration and
determining the liability of the importer for duties, taxes and other charges, including any fine
or penalty.
Any authorized officer of the Bureau shall be given by the importer and customs broker full
and free access to the premises where the records are kept, to conduct audit examination,
inspection, verification, and investigation of those records relevant to such investigation or
inquiry.
Penalties
Any person who, after being subjected to post clearance audit and examination, is found to
have incurred deficiencies in duties and taxes paid for imported goods, shall be penalized
according to two (2) degrees of culpability subject to any mitigating, aggravating, or
extraordinary factors that are clearly established by available evidence as described
hereunder:
(a) Negligence— When a deficiency results from an offender's failure, through an act or acts
of omission or commission, to exercise reasonable care and competence in ensuring that a
statement made is correct, the offender shall be charged for committing negligence, and, if
found guilty shall be penalized with a fine equivalent to one hundred twenty-five percent
(125%) of the revenue loss; Provided, That subject to Section 108, no substantial penalty
shall be imposed on an inadvertent error amounting to simple negligence, as defined by rules
promulgated by the Secretary of Finance, upon recommendation of the Commissioner;
(b) Fraud— When the material false statement or act in connection with the transaction was
committed or omitted knowingly, voluntarily and intentionally, as established by dear and
convincing evidence, the offender who is charged for committing fraud and Is found guilty
thereof, shall be penalized with a fine equivalent to six (6) times of the revenue loss and/or
imprisonment of not less than two (2) years, but not more than eight (8) years.
IX. Administrative and Judicial Procedures
Request for advance ruling
An importer or exporter may file a written application for an advance ruling, at least ninety
(90) days before the importation or exportation of the product or item, as the case may be, on
the following:
1. Classification Ruling on the tariff classification of goods.
Page 28 of 36
2. Valuation Ruling on the proper application of a specific method on customs

valuation on specific goods.
3. Ruling on the Rules of Origin - on whether the goods qualify as originating under
the rules of origin of the applicable preferential trade agreement.
An application for an advance ruling shall cover only one (1) product or item. The
Commission shall render a ruling within thirty (30) days from receipt of a properly
documented application.
When the declaration is in dispute
When a declared tariff classification, method of valuation, or origin of goods, not subject of a
pending application for advance ruling, is in dispute, the importer, exporter, or the Bureau
shall submit the matter to the Commission for a ruling, without prejudice to the application of
Section 1106 on “protest”.
Remedy of Aggrieved Party in Advance Ruling
An aggrieved party may, within thirty (30) days from receipt of an adverse ruling or decision,
appeal the same to the CTA without prejudice to the authority of the Secretary of Finance to
review decisions adverse to the government in accordance with Sections 1127 and 1128, as
the case may be.
Remedy of Aggrieved Party in Protestable Cases which are Not Subject of a Pending
Application for Advance Ruling
The party adversely affected may file a protest by presenting to the Commissioner at the time
when payment of the amount claimed to be due the government is made, or within fifteen
(15) days thereafter, a written protest setting forth the objection to the ruling or decision in
question and the reasons therefore.
When a protest is filed in proper form, the Commissioner shall render a decision within thirty
(30) days from receipt of the protest. In case the protest is sustained, in whole or in part, the
appropriate order shall be made, and the entry reassessed, if necessary.
X. Alert Orders
Section 1111. Alert Orders.— Alert orders are written orders issued by customs officers as
authorized by the Commissioner on the basis of derogatory information regarding possible
noncompliance with this Act. An alert order will result in the suspension of the processing of
the goods declaration and the conduct of physical or nonintrusive inspection of the goods
within forty-eight (48) hours from issuance of the order. Within forty-eight (48) hours or, in
the case of perishable goods, within twenty-four (24) hours from inspection, the alerting
officer shall recommend the continuance of processing of goods in case of a negative finding,
or issuance of a warrant of seizure and detention if a discrepancy between the declaration and
actual goods is found.
Page 29 of 36
The following shall not be considered derogatory information:
(a) General allegations of misclassification without providing the appropriate tariff heading
and duty of the shipment to be alerted;
(b) General allegations of misclassification without providing the appropriate tariff heading
and duty of the shipment to be alerted;
(c) General allegations of over-quantity without indicating the source of information
supporting the allegation;
(d) General allegations of misdeclaration in the entry without indicating the suspected
actual contents thereof; and
(e) General allegations of importations contrary to law without indicating the specific law
or rule to be violated.
No alert order shall be issued on account of allegations of undervaluation unless said

undervaluation is caused by the submission to customs of forged or spurious invoice or other
commercial documents.
An alert order may be issued only after lodgement of the goods declaration and prior to the
release of goods from customs custody. Under no circumstances shall the suspension of the
processing of goods declaration be allowed except through an alert order issued by an
authorized customs officer.
Section 1112. Alert Orders on Perishable Goods.— When the subject of the alert order are
perishable goods, the Bureau shall attach to the recommendation a certificate stating that the
goods are perishable.
XI. Seizure and Forfeiture
Property Subject to Seizure and Forfeiture
Property that shall be subject to seizure and forfeiture include:
(f) Any vehicle, vessel or aircraft, including cargo, which shall be used
unlawfully in the importation or exportation of goods or in conveying or
transporting smuggled goods in commercial quantities into or from any
Philippine port or place. The mere carrying or holding on board of smuggled
goods in commercial quantities shall subject such vehicle, vessel, aircraft, or
any other craft to forfeiture: Provided, That the vehicle, vessel, aircraft or any
other craft is not used as a common carrier which has been chartered or leased
for purposes of conveying or transporting persons or cargo;
(g) Any vessel engaging in the coastwise trade which shaft have on board goods
of foreign growth, produce, or manufacture in excess of the amount necessary
for sea stores, without such goods having been properly entered or legally
imported;
(h) Any vessel or aircraft into which shall be transferred cargo unloaded contrary
to law prior to the arrival of the importing vessel or aircraft at the port of
destination;
Page 30 of 36
(i) Any part of the cargo, stores, or supplies of a vessel or aircraft arriving from a
foreign port which is unloaded before arrival at the vessel’s or aircraft’s port
of destination and without authority from the customs officer; but such cargo,
ship, or aircraft stores and supplies shall not be forfeited if such unloading was
due to accident, stress of weather, or other necessity and is subsequently
approved by the District Collector;
(j) Goods which are fraudulently concealed in or removed contrary to law from
any public or private warehouse, container yard, or container freight station
under customs supervision;
(k) Goods, the importation or exportation of which are effected or attempted
contrary to law, or any goods of prohibited importation or exportation, and all
other goods which, in the opinion of the District Collector, have been used, are
or were entered to be used as instruments in the importation or the exportation
of the former;
(l) Unmanifested goods found on any vessel or aircraft if manifest therefor is
required;
(m) Sea stores or aircraft stores adjudged by the District Collector to be excessive,
when the duties and taxes assessed by the District Collector thereon are not
paid or secured forthwith upon assessment of the same;
(n) Any package of imported goods which is found upon examination to contain
goods not specified in the invoice or goods declaration including all other
packages purportedly containing imported goods similar to those declared in
the invoice or goods declaration to be the contents of the misdeclared package;
(o) Boxes, cases, trunks, envelopes, and other containers of whatever character
used as receptacle or as device to conceal goods which are subject to forfeiture
or which are so designed as to conceal the character of such goods;
(p) Any conveyance actually used for the transport of goods subject to forfeiture,
with its equipage or trappings, and any vehicle similarly used, together with its
equipment and appurtenances. The mere conveyance of smuggled goods by
such transport vehicle shall be sufficient cause for the outright seizure and
confiscation of such transport vehicle but the forfeiture shall not be effected if
it is established that the owner of the means of conveyance used as aforesaid,
is engaged as common carrier and not chartered or leased, or that the agent in
charge thereof at the time, has no knowledge of the unlawful act; and
(q) Goods sought to be imported or exported:
(1) Without going through a customs office, whether the act was
consummated, frustrated, or attempted;
(2) Found in the baggage of a person arriving from abroad and
undeclared by such person;
(3) Through a false declaration or affidavit executed by the owner,
importer, exporter, or consignee concerning the importation of such
goods;
(4) On the strength of a false invoice or other document executed by the
owner, importer, exporter, or consignee concerning the importation
or exportation of such goods; or
(5) Through any other practice or device contrary to law by means of
which such goods entered through a customs office to the prejudice
of the government.
Page 31 of 36
Properties not Subject to Forfeiture in the Absence of Prima Facie Evidence
The forfeiture of the vehicle, vessel, or aircraft shall not be effected if it is established that the
owner thereof or the agent in charge of the meads of conveyance used as aforesaid has no
knowledge of or participation in the unlawful act: Provided, That a prima facie presumption
shall exist against the vehicle, vessel, or aircraft under any of the following circumstances:
(a) If the conveyance has been used for smuggling before;

(b) If the owner is not in the business for which the conveyance is generally used; and
(c) If the owner is not financially in a position to own such conveyance.
Conditions Affecting Forfeiture of Goods
The forfeiture shall be effected only when:
(a) The goods are in the custody or within the jurisdiction of customs officers; or
(b) While in the possession or custody of or subject to the control of:
a. the importer, exporter, original owner, consignee, agent of another person
effecting the importation, entry or exportation in question; or
b. of persons who shall receive, conceal, buy, sell, or transport the same, or aid in
any of such acts, with knowledge that the goods were imported, or were the
subject of an attempt at importation or exportation contrary to law.
Forfeiture Proceedings
1. Warrant of Seizure or Order of Release
The District Collector shall issue an order of release (in case probable cause does
not exist) or a warrant of seizure (in case probable cause exists), upon the
recommendation of the alerting officer or any other customs officer, within the
following period:
a. Five (5) days, in case of non-perishable goods;

b. Two (2) days, in case of perishable goods.
2. Service of Warrant of Seizure
The District Collector shall cause the service of warrant of seizure to the owner or
importer of the goods or the authorized representative thereof. The owner or
importer shall be given, an opportunity to be heard during the forfeiture
proceedings.
For the purpose of serving the warrant, the importer, consignee, or person holding
the bill of lading or airway bill shall be deemed the “owner” of the goods. For the
same purpose, “authorized representative” shall include any agent of the owner
and if the owner or the agent is unknown, any person having possession of the
goods at the time of the seizure.
Page 32 of 36
3. The District Collector shall issue an order for hearing within fifteen (15) days, or
five (5) days in case of perishable goods, from issuance of the warrant. The
District Collector shall render a decision within thirty (30) days upon termination
of the hearing, or within ten (10) days in case of perishable goods. The decision
shall include a declaration of forfeiture, the imposition of a fine or such other
action as may be proper.
Forfeiture Proceedings in case of unknown owner
Service of warrant to an unknown owner shall be effected by posting the warrant for fifteen
(15) days in a public place at the concerned district, and by electronic or printed publication.
If, within fifteen (15) days after service of warrant, no owner or agent can be found or
appears before the District Collector, the seized goods shall be forfeited ipso facto in favor of
the government to be disposed of in accordance with the CMTA.
Burden of Proof in Forfeiture Proceedings
In all proceedings for the forfeiture of any vehicle, vessel, aircraft, or goods under this Act,
the burden of proof shall be borne by the claimant.
Remedy in Forfeiture Proceedings
1. The person aggrieved by the decision of a District Collector may, within fifteen (15)
days or five (5) days in case of perishable goods, from receipt of the decision, file a
written notice of appeal to the District Collector upon payment of the appeal fee, copy
furnished the Commissioner. An appeal filed beyond the period herein prescribed
shall be dismissed.
The Commissioner shall review and decide on the appeal within thirty (30) days from
receipt of the records, or fifteen (15) days in the case of perishable goods.
If within thirty (30) days, no decision is rendered, the decision of the District
Collector under appeal shall be deemed affirmed.
2. Automatic Review by the Commissioner
The Commissioner shall automatically review any decision by the District Collector
adverse to the government and shall decide thereon within thirty (30) days, or within
ten (10) days in the case of perishable goods, from receipt of the records.
3. Automatic Review by the Secretary of Finance
The Secretary of Finance shall automatically review the decision when:
a. No decision is rendered by the Commissioner within the prescribed period; or

b. When a decision adverse to the government is rendered by the Commissioner
involving goods with FOB or FCA value of ten million pesos (P10,000,000.00) or
more.
Page 33 of 36
The decision issued by the Secretary of Finance, whether or not a decision was
rendered by the Commissioner within thirty (30) days, or within ten (10) days in the
case of perishable goods, from receipt of the records, shall be final upon the Bureau.
XII. Civil Remedies for the Collection of Duties and Taxes
The civil remedies for the collection of import duties, taxes, fees, or charges resulting from
the conduct of a post clearance audit shall be obtained by:
(a) Distraint of goods, chattels, or effects, and other personal property of whatever
character, including stocks and other securities, debts, credits, bank accounts, and
interest in and rights to personal property, and by levy upon real property and interest
in rights to real property; and
(b) Civil or criminal action.
Either or both of these remedies may be pursued at the discretion of the Bureau; Provided,
That the remedies of distraint and levy shall not be allowed when the amount of duties and
taxes involved is not more than ten thousand pesos (₱10,000.00).
The Bureau shall advance the amounts needed to defray costs of collection by means of civil
or criminal action, including the preservation or transportation of personal property distrained
and the advertisement and sale thereof as well as of real property and improvements thereon.
Constructive Distraint of the Property
To safeguard the interest of the government, the Commissioner may place under constructive
distraint the property of a delinquent importer under any of the following cases:
1. The importer is retiring from any business subject to duty and tax;
2. The importer is intending to leave the Philippines;
3. The importer intends to remove the property from the Philippines;
4. He intends to hide or conceal the property; or
5. He intends to perform any act tending to obstruct the proceedings for collecting the
duty and tax due, or which may be due.
The constructive distraint of personal property shall be effected by requiring the importer or
any person in possession or control of such property to sign a receipt covering the property,
to obligate to preserve the distrained property on the state and condition at the time of the
government's seizure of the same, and not to dispose of the same in any manner whatsoever,
without the express authority of the Commissioner.
In case the importer or the person in possession and control of the property sought to be
placed under constructive distraint refuses or fails to sign the receipt herein referred to, the
customs officer effecting the constructive distraint shall proceed to prepare a list of such
property and, in the presence of two (2) witnesses, leave a copy thereof in the premises where
the property distrained is located, after which the said property shall be deemed to have been
placed under constructive distraint.
Page 34 of 36
Summary Remedies
1. Distraint of Personal Property

2. Levy of Real Property
XIII. Judicial Proceedings
Supervision and Control over Criminal and Civil Proceedings
Civil and criminal actions and proceedings instituted on behalf of the Government under the
authority of the laws enforced by the Bureau of Customs shall be brought in the name of the
government of the Philippines and shall be prosecuted and handled by the Bureau with the
assistance of the Department of Justice (DOJ).
However, the determination of the existence of probable cause and the subsequent filing of
any criminal or civil case with the proper court shall exclusively belong to the DOJ: provided,
that no civil or criminal action for the recovery of duties or the enforcement of any fine,
penalty or forfeiture under the CMTA shall be filed in court without the approval of the
Commissioner.
Power to Review by the Court of Tax Appeals
The party aggrieved by the ruling or decisions of the Commissioner may appeal to the CTA,
within 30 days. Decisions of the Secretary of Finance when required by the CMTA, may
likewise be appealed to the CTA.
Unless an appeal is made to the CTA in the manner and within the period prescribed by law
and regulations, the ruling or decision of the Commissioner or the Secretary of Finance shall
be final and executory.
XIV. Flexible Tariff Clause
Duties imposed under the flexible tariff – refers to the import duties which are modified by
the President upon investigation of the Tariff Commission and recommendation of the NEDA
in the interest of national economy, general welfare and national security.
Under Section 1608 (Flexible Clause) of the CMTA, the President is empowered to:
d. Increase, reduce, or remove existing rates of import duty including any

necessary change in classification. The existing rates may be increased or
decreased to any level, in one or several stages, but in no case shall the
increased rate of import duty be higher than a maximum of one hundred
percent (100%) ad valorem;
Page 35 of 36
e. Establish import quotas or ban imports of any commodity, as may be

necessary; and
f. Impose an additional duty on all imports not exceeding ten percent (10%) ad
valorem whenever necessary: Provided, That upon periodic investigations by
the Commission and recommendation of the NEDA, the President may cause a
gradual reduction of rates of import duty granted in Section 1611 of this Act,
including those subsequently granted pursuant to this section.
Limitation on the exercise of the power under flexible clause
The power delegated to the President shall be exercised only when Congress is not in session.
The power may be withdrawn or terminated by Congress through a joint resolution.
Page 36 of 36

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CMTA Summary (Revised 1/16/2018)

REPUBLIC ACT NO. 10863

B. Powers and Functions of the Commissioner of the Bureau of Customs

a. Exclusive and original jurisdiction to interpret the provisions of the CMTA, in

C. Functions of the Bureau of Customs

The Bureau shall exercise the following duties and functions:

d. Prevention and suppression of smuggling1 and other customs fraud;

E. Exercise of Police Authority

i. Officials of the Bureau, District Collectors, Deputy District Collectors, police

b. Authority to search and enter properties

i. Authority to enter properties which are not dwelling house

ii. Authority to search dwelling house

iii. Authority to Search Vessels or Aircrafts and Persons or Goods Conveyed

iv. Authority to Search Vehicles, Other Carriers, Persons and Animals.

v. Authority to Search Persons Arriving From Foreign Countries

Upon reasonable cause, travelers arriving from foreign countries may be

c. Power to inspect and visit

The Commissioner or any customs officer who is authorized in writing by the

II. Customs Duties in General

a. When importation begins and deemed terminated

Importation is deemed terminated when:

a. Free Importation and Exportation

b. Regulated Importation and Exportation

c. Prohibited Importation and Exportation

The importation and exportation of the following goods are prohibited:

a. Written or printed goods in any form containing any matter advocating or

d. Restricted Importation and Exportation

Except when authorized by law or regulation, the importation of the following

e. Conditionally Tax and/or Duty-Exempt Importation

1. They are imported in such vessels or in crafts attached thereto;

(d) Goods brought into the Philippines for repair, processing or

(f) Personal and household effects belonging to returning residents including

personal and household effects including wearing apparel, goods of personal

“Returning residents” shall refer to nationals who have stayed in a foreign

(1) It shall not be in commercial quantities;

(2) It is not intended for barter, sale or for hire; and

(3) Limited to the FCA or FOB value of:

Any amount in excess of the above-stated threshold shall be subject to the

Overseas Filipino Workers (OFWs)

In addition to the privileges granted under the immediately preceding

fifty thousand pesos (₱150,000.00) for personal and household effects or of

OFWs refer to Holders of valid passports duly issued by the Department of

Personal and household effects and vehicles belonging to foreign consultants

subsection; conditioned for the exportation thereof or payment of the

(i) Professional instruments and implements, tools of trade, occupation or

animal is the animal described in said certificate of record and pedigree:

The provisions of general and special laws, to the contrary notwithstanding,

III. Import Clearance and Formalities

Lodgement refers to the registration of a goods declaration with the Bureau.

Rights and responsibilities of declarant

(a) The importer, being the holder of the bill of lading; or

Penalties for Errors in Goods Declaration

Goods Declaration for Consumption (Formal entry process)

Entry of Goods in Part for Consumption and in Part for Warehousing

Provisional Goods Declaration

Liability of Importer for Duties and Taxes

Importations by the Government

Forwarding of Cargo and Remains of Wrecked Vessel or Aircraft

Derelicts and Goods from Abandoned Wrecks