CAO 03 – 2019

CUSTOMS JURISDICTION AND

EXERCISE OF POLICE AUTHORITY
Lobiano, Gerald
Chavez, Maria Fairy Ann
Arendain, Alyanna Rose
Scope
• 1.1 All importations, whether for consumption, warehousing, transit, or for
admission to Free Zones as defined in Section 102 (w) of the CMTA, and
all export shipments, which are suspected to be violative of the CMTA and
related laws;

• 1.2 Suspected smuggled goods and prohibited importation and goods

intended for exportation, found anywhere in the Philippines; and

• 1.3 Carriers and persons suspected to be in possession of smuggled

goods and prohibited importation and exportation
Objectives
• 2.1 To clarify the extent and limits of the exercise of customs jurisdiction and police authority,
including border protection and the prevention and suppression of smuggling and other customs
fraud

• 2.2 To implement a clear and effective system in the exercise of customs jurisdictional control
from the moment the imported goods enter customs jurisdiction and after release from customs
custody, including the exportation of goods

• 2.3 To establish transparent procedures in the deputization of members of National Law

Enforcement agencies (NLEAs) regulate their exercise of police authority

• 2.4 To provide conditions for the exercise of police authority by Customs Officers or deputized
officers in the apprehension of smuggled or prohibited goods, including those in the Free zones
 Section 3. DEFINITION OF TERMS

For purpose of this CAO, the following terms are hereby defined:
3.1 Agents

• Shall refer to Customs Officers under the Customs Intelligence

and Investigation Service (CIIS).
3.2 Bureau

• Shall refer to the Bureau of Customs

3.3 Completion of Mission

• Shall refer to the accomplishment of the Mission Order in accordance with

the Execution Plan
3.4 Controlled Delivery

• Shall refer to the investigative technique of allowing an unlawful

or suspect consignment of any prohibited or regulated articles
defined under the CMTA and other laws enforced by the
Bureau, or property believed to be derived directly or indirectly
from any customs-related offense, to enter into, pass through or
exit out of the country under the supervision of an authorized
officer, with a view to gather evidence aimed at identifying any
person involved in smuggling-related offenses, and to facilitate
the prosecution of the offender
3.5 Constructive Customs Custody

• Refers to the situation where falling short of physical seizure or

possession, the Customs Officers and the owner of the goods
enter into a written agreement after the inventory to the effect
that the goods, subject of a letter of Authority (LOA), shall not
be removed or disposed of pending disposition or resolution on
the issue of whether proper payment of duties and taxes has
been made
3.6 Customs Control

• Shall refer to the measures applied to ensure compliance with

the laws and regulation which Customs are responsible for
enforcing
3.7 Customs Jurisdiction

• Shall refer to Bureau’s exercise of jurisdiction over all seas

within Philippine territory and all lands, coasts, ports, airports,
harbors, bays, rivers, and inland waters whether navigable or
not from the sea and any means of conveyance
3.8 Customs Officer

• As distinguished from clerk or employee, shall refer to a person

whose duty, not being clerical or manual in nature, involves the
exercise of discretion in performing the functions of the Bureau.
It may also refer to an employee authorized to perform a
specific function of the Bureau
3.9 Customs Premises

• Shall include customs offices, facilities, warehouses, ports,

airports, wharves, infrastructures and other areas within the
customs districts over which the Bureau shall have exclusive
control, direction and management for customs purposes
3.10 Customs Territory

• Shall refer to areas in the Philippines where customs and tariff laws may
be enforced
3.11 Deputization Order

• Shall refer to the written order signed by the Commissioner of

Customs authorizing named officers or members of the Armed
forces of the Philippines or their selected national law
enforcement agencies, to assists in the exercise of customs
police authority particularly the power to search, seize, and
arrest in specified areas outside of customs premises
3.12 Diversion of Goods

• Shall refer to an act of bringing bonded articles to some place other than
its intended destination without prior authority from the Bureau. It also
covers imported goods for admission into Free Zones and other similar
schemes such as goods under local transit for immediate exportation,
which are illegally introduced into domestic market without compliance
with customs formalities or without payment of duties and taxes
3.13 Dwelling House

• Shall refer to any building or structure exclusively devoted to rest and comfort, as
distinguished from places devoted to business or offices
3.14 Execution Plan (EXEPLAN)

• Shall refer to a definite target-specific activity, usually short-term, conducted in relation to

an intelligence project
3.15 Free Zones

• Shall refer to special economic zones registered with the Philippine Economic Zone
Authority (PEZA) under Republic Act No. 7916, as amended, duly chartered or legislated
special economic zones and freeports such as Clark Freeport Zone; Poro Point Freeport
Zone; John Hay Special Economic Zone and Subic Bay Freeport Zone under Republic
Act No. 7227, as amended by Republic Act No. 9400; the Aurora Special Economic Zone
under Republic Act No. 9490, as amended; the Cagayan Special Economic zone and
Freeport under Republic Act No. 7922; the Zamboanga City Special Economic Zone
under Republic Act No. 7903; the Freeport Area of Bataan under Republic Act No. 9728;
and such other freeports as established or may be created by law
3.16 Guards

• Shall refer to Customs Officers under the District Collector which include
guards on board vessel or aircraft, guards discharging conduction duties
and guards assigned in customs bonded warehouses, customs facility
warehouses, and in other customs facilities.
3.17 Inspectors

• Shall refer to Customs Officers under the District Collector who conduct inspection of
vessels or aircrafts upon landing and prior to departure
3.18 Letter of Authority (LOA)

• Shall refer to written authorization signed by the Commissioner of

Customs in the exercise of the power to visit and inspect premises and
goods, identifying the Customs Officers authorized to demand evidence of
payment of duties and taxes on imported goods openly offered for sale or
kept in storage
3.19 Mission Order (MO)

• Shall refer to the written directive or order issued by the Commissioner of

Customs or other Customs Office authorized in writing by the
Commissioner, to carry out specific instructions given to any Customs
Officer, or any deputized officer who must be a government employee
holding regular plantilla position
3.20 National Law Enforcement Agencies (NLEAs)

• Shall refer to agencies responsible for enforcing the law, particularly the
activities of prevention, detection, and investigation of crimes an the
apprehension of the criminals or offenders
3.21 Officials of the Bureau

• Shall refer to the Commissioner, Deputy Commissioners, and service

Directors of the Bureau of Customs exercising police authority other than
those specifically mentioned in Section 214 (a) of the CMTA
3.22 Philippine Territory

• Comprises the Philippine Archipelago, with all the islands and waters
embraced therein, and all other territories over which the Philippines has
sovereignty or jurisdiction, consisting of its terrestrial, fluvial and aerial
domains, including its territorial sea, the sea bed, the subsoil, the insular
shelves, and other submarine areas. The waters around, between and
connecting the islands of the archipelago, regardless of their breadth and
dimensions, form part of the internal waters of the Philippines.
3.23 Police Authority

• Refer to the authority granted to specific regular government employees,

to effect search, seizure, and arrest in places where the authority may be
exercised arising from the implementation of the CMTA and other related
laws.
3.24 Police Officers

• Shall refer to customs officers under the Enforcement and Security

Service (ESS)
3.25 Probable Cause

• Shall refer to the reasonable ground of suspicion, supported by

circumstances sufficiently strong in themselves to warrant a cautious man
in the belief that the person accused is guilty of the offense with which he
is charged. It may also refer to the existence of such facts and
circumstances which could lead a reasonably discreet and prudent man to
believed that an offense has been committed and the items or objects
sought in connection with said offense or subject to seizure and
destruction by law is in the place to be searched
3.26 Prohibited Importation and Exportation

• 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 and exportation are explicitly prohibited by law or rules
and regulations issued by the competent authority
3.27 Reasonable Cause

• Shall refer to that which an ordinary person of average intelligence and

sound mind would believe
3.28 Regulated Importation and Exportation

• Shall refer to goods which are subject to regulation and are imported or
exported only after securing the necessary goods declaration or export
declaration, clearances, licenses, and any other requirements, prior to
importation and 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
3.29 Restricted Importation and Exportation

• Except when authorized by law or regulation, the importation and exportation of the following restricted
goods are prohibited
• A. Dynamite, gunpowder, ammunitions and other explosives, firearms and weapons of war, or parts thereof;
• B. 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;
• C. Lottery and sweepstakes tickets, except advertisements thereof and lists of drawings therein;
• D. Marijuana, opium, poppies, coca leaves, heroin or other narcotics, or synthetic drugs which are or may
hereafter he 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 Boards, for medicinal purposes;
• E. Opium pipes or parts thereof, of whatever material; and
• F. Any other goods whose importation and exportation are restricted.
• The restriction to import or export the above stated goods shall include the restriction on their transit
3.30 Search Warrant

• Shall refer to an order in writing, issued in the name of the People of the
Philippines, signed by a judge of a competent court and directed to a
peace officer, commanding him to search for certain personal property and
bring it before the Court
3.31 Seizure

• Shall refer to the act of taking possession of property for violations of the
CMTA and other related laws. It implies taking or removal of something
from the possession, actual or constructive, of another person or persons
3.32 Smuggling

• Shall refer to the fraudulent act of importing goods into the Philippines, or 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 the fraudulent
exportation of goods
3.33 Warrant of Seizure and Detention (WSD)

• Shall refer to an order in writing, issued in the name of the Republic of the Philippines
and signed by the Collector of Customs, directing a Customs Officer to seize and detain
any vessel, aircraft, cargo, goods, animal or any other movable property when the same
is subject to forfeiture pursuant to Section 1113, Chapter 4, Title XI of the CMTA
Section 4. GENERAL PROVISIONS
4.1 Persons Authorized to Exercise Police Authority

• The following are authorized to exercise Police Authority for the purpose of enforcing
anti-smuggling laws:
• 4.1.1 Officials of the Bureau, District Collectors, Deputy District Collectors, Police
Officers, Agents, Inspectors and Guards of the Bureau
• 4.1.2 Upon authorization of the Commissioner, specifically named organic officers and
members of the Armed officers of the Philippines (AFP) and National Law Enforcement
Agencies (NLEAs); and
• 4.1.3 Officials of the Bureau of Internal Revenue (BIR) on all cases falling within the
regular performance of their duties, when payment of Internal revenue taxes is involved
4.2 Places Where Authority may be Exercised

• 4.2.1 All premises for customs purposes, including customs offices, facilities,
warehouses, ports, airports, wharves, infrastructure and other premises in Customs
Districts, within the limits of the authority granted by the Commissioner, without prejudice
to the general police powers of the local government units (Gus), the Philippine Coast
Guard and of law enforcement agencies in the exercise of their respective functions,
pursuant to their governing laws
• 4.2.2 All lands, seas, and air within Philippine territory, including bays, coasts, harbors,
rivers and inland waters whether navigable or not from the sea and any means of
conveyance.
• 4.2.3 Free zones, provided, proper coordination with the zone authorities shall be
observed at all times.
4.3.3. Authority to Enter Properties

• Any person exercising Police Authority may, at any time, enter pass through, and search
any land, enclosure, warehouse, store, building or other structures not principally used as
a Dwelling House
• The persons exercising Police Authority are allowed to use means as may be necessary
to open the gate or entrance under any of the following circumstance:
• A. The owner or person in-charge of the premises is missing or cannot be located within
a reasonable time
• B. The person in charge of the premises refuses entry of Customs officers or deputized
officers; and
• C. Customs Officers are of the firm belief that the persons inside the premises are
engaged in activities aimed at removing any evidence regarding the presence of goods
violative of the CMTA, and execution of their mission would be frustrated unless they do
so
4.3.4 Authority to Search Dwelling House

• A dwelling house may be entered and searched only upon warrant issued by the judge of
a comepetent court, the sworn application thereon showing probable cause and
particularly describing the place to be searched and the goods to be seized

• Fir this purpose, the bureau shall prescribe the procedures governing the application for
the issuance of judicial warrant and the implementation thereof
4.3.5 Authority to Search Vessels or Aircrafts and
Persons or goods Conveyed Therein
• Any person exercising Police Authority under the CMTA 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. In case of any probable
violation of the CMTA, their person exercising the Police Authority may seize the goods,
vessel, aircraft, or any part thereof

• Such power to search includes removal of any false bottom, partition, bulkhead, or any
other obstruction for the purpose of uncovering any concealed dutiable for forfeitable
goods.
4.3.6 Non-Liability for Damages

• The duly authorized search of vessels or aircrafts and persons or goods conveyed
therein 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
4.3.7 Authority to Search Vehicles, Other Carriers,
Persons and Animals
• Upon reasonable cause based on profiling or derogatory information received, 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 power to stop, search, and examine any vehicle or carrier,
person or animal suspected of holding or conveying dutiable or prohibited goods.
4.3.8 Authority to Search Persons Arriving from
Foreign Countries
• Upon reasonable cause based on profiling or derogatory information received, 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
4.3.9 Customs Control Over Goods

• All goods, including means of transport, entering or leaving the Customs Territory,
Regardless of whether they are liable to duties and taxes, shall be subject to Customs
Control to ensure compliance with the CMTA
• In the application of Customs Control, the Bureau shall employ audit-based controls and
risk management systems, use automation to the fullest extent possible, and adopt a
compliance measurement strategy to support risk management
• The bureau shall seek to cooperate and conclude mutual administrative assistance
agreements with other government regulatory agencies, and the customs stakeholders,
in general, to enhance customs control
4.3.10 Control Over Premises Used for Customs
Purposes
• The Bureau shall, for customs purposes, have exclusive control, direction, and
management of customs offices, facilities, warehouses and customs facilities and
warehouses including ports, airports, wharves, infrastructure and other premises in the
Customs Districts, in all cases without prejudice to the general police powers of the local
government units (LGUs), the Philippine Coast Guard and of law enforcement agencies
in the exercise of their respective functions
4.3.11 Special Surveillance for Protection of Customs
Revenue and Prevention of Smuggling
• The Bureau shall conduct surveillance on vessels or aircrafts entering Philippine territory
and on imported goods entering the customs office: Provided, that the function of the
Philippines Coast Guard to prevent and suppress the illegal entry of these goods,
smuggling and other forms of customs fraud and violations of maritime law and its proper
surveillance of vessels entering and/or leaving Philippine territory as provided in Republic
Act No. 9993, otherwise know as the “Philippine Coast Guard Law of 2009”, shall
continue to be in force
4.3.12 Trespass or Obstruction of Customs Premises

• No person shall enter or obstruct a customs office, warehouse, port, airport, wharf, or
other premises under the control of the Bureau without prior authority, including the
streets or alleys where these facilities are located
4.4 Deputization Order
4.4.2 Who may Issue

• A deputization order may be issued only by the Commissioner of Customs

4.4.3 Purpose of the Deputization Order 

• A Deputization Order authorizes specific officers or members of NLEAs to assist

Customs Officers operating outside the Customs Premises in the exercise of Police
Authority
4.4.4 Who may be Deputized

• Officers and the members of the following NLEAs, when necessary, may be deputized to
assist the Bureau in the exercise of its Police Authority 

• a. Armed Forces of the Philippines (AFP);

• b. Bureau of Fisheries and Aquatic Resources (BFAR);
• c. National Bureau of Investigation (NBI);
• d. Philippine Coast Guard (PCG);
• e. Philippine Drug Enforcement Agency (PDEA);
• f. Philippine National Police (PNP); and
• g. Any other law enforcement agency which the Commissioner may hereafter deputized
4.4.5 Duties and Responsibilities of Deputized
Officers 
• The deputized officers shall have the following duties and responsibilities:

a. To report to the Bureau suspicious movements of seacrafts and aircrafts into the Philippine
Territory gathered through their operational resources;
b. To report immediately to the Bureau any apprehension of suspended smuggled goods
through the fastest means of communication available, e.g., by phone or short messaging
system (SMS);
c. To submit an Affidavit of Apprehension upon turn-over of the confiscated goods to the
Collected or his duly authorized representative;
d. All goods seized by deputized officers shall be physically turned-over immediately to the
Bureau, unless otherwise provided under existing laws, rules and regulations; and
e. Any other duties and responsibilities specified by the Mission Order as may be issued by
the Commissioner of Customs
4.4.6 Conditions and Requirements for Deputization

a. Validity Period. The Deputization Order shall specify the period for its validity, which
shall not exceed one (1) year from issuance, unless earlier revoked. When the purpose for
which it was issued has ceased to exist or when the deputized officers are recalled by the
head of his agency, the deputization is deemed automatically revoked. The renewal of the
Deputization Order shall take effect only on the date of issuance, and shall not retroact to
the date of expiration of the original or earlier Deputization Order.
b. Basis and Grounds for the Issuance of a Deputization Order
     i. When there is a lack of sufficient manpower, expertise and logistical resources on the
part of the Bureau
     ii. When the risk of security and safety is high in the area of operation
c. Customs Operation. No officer of member of any national law enforcement agency
shall be deputized without first undergoing at least a one (1) day orientation seminar by the
Bureau on relevant provisions of CMTA.
4.4.7 Limitations on the Exercise of Police Authority
for Customs Control by Deputized Officers 
• The exercise of Police Authority for Customs Control by Deputized Officers shall be
subject to the following limitations:
a. The Deputization Order shall be valid for not more than one (1) year, unless sonner
revoked, or renewed accordingly;
b. It shall be exercised by in areas outside the Customs Premises;
c. In all cases, it shall be covered by a Mission Order clearly indicating the specific names of
the deputized officers, the tasks to be carried out, and the particular area covered. Any anti-
smuggling operation outside customs premises not covered by a Mission Order shall be
deemed illegal.
d. It shall not include the exercise of the power to visit and inspect, as provided under
Section 224 of the CMTA, unless their assistance is expressly requested by the Bureau; and
e. Before any operation is initiated, deputized officers shall see to it that proper coordination
is done with the District Collector having jurisdiction over the area of operation.
4.5 Issuance of Mission Order
4.5.1 Who may Issue

• A mission order, as used in this CAO, shall be issued by the Commissioner of Customs,
or other Customs Officers authorized in writing by the Commissioner, and shall bear the
Commissioner's original signature or that of the authorized Customs Officer as the case
may be, and the official seal of the Bureau.
4.5.2 Purpose of the Issuance of Mission Order

• A Mission Order is issued to ensure that the operation is duly authorized by the Bureau
and that the Customs Officers or deputized officers tasked to assist in carrying it out are
properly identified. 
4.5.3 Basis and Conditions for the Issuance of a
Mission Order
a. When there is a need to operate outside the Customs Premises;
b. When there is a need for a coordinate effort to avoid duplication and ensure the success
of an anti-smuggling operation outside the Customs Premises; and
c. Every request for issuance of Mission Order must be accompanied by a corresponding
EXEPLAN (Execution Plan) emanating from the request agency other than the Bureau, on
the basis of a verified intelligence report.
4.5.4 Duration

• The Mission Order shall be valid for not more than thirty (30) calendar days from the date
of its issuance. The date of expiration shall be likewise specified in the Mission Order.
4.5.5 Termination of Mission Order

• The accomplishment or completion of the other operation automatically terminates the

Mission Order.
4.5.6 Grounds for Revocation

• The Mission Order may be revoked by the issuing authority even before its
implementation or completion on the following grounds:
a. When the Mission Order becomes legally or physically impossible to achieve, as
determined by the issuing authority; 
b. Inaction, ineffective execution, or abuse of authority in the implementation of the Mission
Order, as determined by the issuing authority;
c. In cases where the Mission Order is issued to deputized officers and the Bureau being
the lead agency in anti-smuggling operations takes over the operation from the deputized
officers; or
In any instance where the Commissioner or issuing authority deems it necessary to revoke
the Mission Order. 
4.5.7 Requirement of Submission of After-Mission
Report
• The Customs Officers of deputized officers implementing the Mission Order shall, within
twenty-four (24) hours from the completion of the mission, submit the corresponding
return and after-mission/operation report accompanied by a detailed inventory of the
goods seized, to the Commissioner of Customs or other authorized Customs Officer who
issued the Mission Order.

• A Customs Examiner shall be designated as member of the team, who shall be in charge
of the inventory of the goods
4.6 Letter of Authority (LOA)
4.6.1 Who may Issue

• The Commissioner shall issue a LOA pursuant to the exercise of the power to visit and
inspect under Section 224, Chapter 3, Title II of the CMTA
4.6.2 Purpose of the Issuance of a Letter of Authority

• The Commissioner of Customs may issue a LOA to authorize Customs Officers to

inspect, visit and when necessary, demand evidence of payment of duties and taxes on
imported goods openly offered for sale or kept in storage.
4.6.3 Who may Implement the Letter of Authority

• Only Customs Officers authorized in writing by the Commissioner may implement the
LOA, without prejudice to the authority of the Commissioner to require the assistance of
the Commissioner to require the assistance of deputized officers in the implementation of
the LOA.
4.6.4 Duration and Termination

• The validity of a LOA shall commence upon issuance and shall be deemed terminated
upon completion of the mission
4.6.5 Manner of Implementation

• To safeguard the integrity of the power to visit and inspect, and to prevent the possible
abuse thereof, the following rules shall be strictly observed:
• a. A Mission Order must be issued authorizing the implementation of the LOA 
• b. A LOA signed by the Commissioner shall identify the Customs Officers authorized to
implement the same, the stores, stalls, exhibition places, warehouses, and enclosures
where the imported articles are openly offered for sale or kept in storage, to be visited
and inspected. The LOA must be shown or exhibited immediately at the start of the
exercise thereof
• c. Pursuant to a Letter of Authority, the duly authorized Customs Officer shall:
          i. Enter where the premises of smuggled goods are suspected to be stored in the
presence of the lawful occupant or any person in possession of the goods, or in their
absence, any two (2) witnesses who are residents of the same locality, or barangay officials
or any representative from the building management or other responsible officers;
4.6.5 Manner of Implementation

          ii. Conduct an inventory of the foreign goods upon demand, no evidence of payment is
produced. The inventory shall be conducted in the presence of the owner, occupant, or person
in possession of the goods, as witnessed by any Customs Officer authorized to implement the
LOA;
          iii. Prepare and sign the Inventory Report reflecting in detail the description and quantity
of the goods. Except in cases of prohibited, restricted or regulated goods, the Inventory
Report must also be signed by the owner, occupant or person in possession of the goods. In
all cases, the witnesses must sign the Inventory Report;
          iv. Furnish a copy of the Inventory Report to the owner, occupant or person in
possession of the goods who must acknowledge the receipt thereof. In case the owner,
occupant or person in possession refuses to receive and acknowledge the Report, a copy
thereof shall be posted in any conspicuous space in the building or premises. 
              Upon failure of the interested party to produce evidence of payment of duties and
taxes within fifteen (15) days, the goods may be seized and subjected to for forfeiture
proceedings. In such event of the provisions of the CAO on Seizure and Forfeiture
Proceedings may apply.
4.6.5 Manner of Implementation 

        v. In cases of restricted or regulated goods wanting in government regulatory permits

and clearances, immediately conduct inventory and recommend the issuance of WSD.
        vi. If during the service of the LOA prohibited articles are discovered, the same shall
be confiscated under the "plain view doctrine".

d. The owner of the goods or his representative shall execute an Undertaking stating
that the goods will not be removed, sold, or disposed of without prior authority from the
Bureau. In cases where the owner, occupant or person in possession of the goods refuses
to cooperate, the premises where the goods are stored shall be padlocked or sealed by
the duly authorized Customs Officer and continuously guarded by the Bureau.
e. Pending presentation of proof of payment of duties and taxes, the goods shall
be deemed to be under constructive customs custody.
4.6.5 Manner of Implementation

f. In case of seizure, the duly authorized Customs Officer shall witness the delivery of the
things seized into the custody of the Collector of Customs which has jurisdiction over the
area within twenty-four (24) hours from service of WSD.
g. The duly authorized Customs Officer is duty-bound to adopt all other reasonable
measures deemed necessary to effectively implement the LOA.
h. The Commissioner of Customs or any Customs Officer exercising the power to visit and
inspect shall tap or utilize transport facilities for the transfer of the seized goods, and
suitable warehouses or storage areas, constituting the same as virtual customs
warehouses for this purpose. The expenses shall be for the account of the Bureau taken
from the forfeiture fund.
4.6.6 Special Customs Area

• For reasons of security, safety and economy, the Commissioner may constitute the
premises upon which foreign goods are openly offered for sale, or kept in storage, as a
special customs area for the duration of the exercise of the power to visit and inspect or
other proceedings related thereto.

a. The Bureau may conduct the inventory, examination, appraisal, assessment, and/or
collection of duties and taxes due on the foreign goods in such specialcustom area.
b. The goods are deemed, for all intents and purposes, in customs custody.

In all instances, a Customs Operations Officer III (COO III) shall be designated in the
Special Customs Area for purposes of valuation and computation of duties and taxes.
4.6.7. Submission of Report Including Assessment of
Implementation, Observation. And
Recommendations.

• The Customs Officer exercising the power to visit and inspect shall render progress
reports during and after the actual visit, and shall submit the final report, including the
inventory report signed by the COO III. To the commissioner within twenty-four (24) hours
after the conclusion of the proceedings.
4.6.8. ACCONTABALITY

• For the purpose of transparency, all LOAs issued shall be recorded and include the
following:
• Date issued;
• Date filed;
• Date serve to addressee;
• Reference or serial number; and
• Official Seal of the Commissioner
4.7. Application for Search Warrant
4.7.1. Who may Apply

• For purposes of this CAO, only customs Officer authorized in writing by the
Commissioner may apply for a judicial warrant.
4.7.2. Implementation of Search Warrant

• A duly issued warrant to search a Dwelling House may be implemented by Customs

Officer and Deputized Officers.
• In the service of a duly issued search warrant, the Customs Officers and Deputized
Officer implementing the same shall present their Deputization and Mission Orders, as
applicable.
• Service of duly issued warrant shall be made in the daytime, unless the affidavit asserts
that the property is on the person or in a the place ordered to be searched, in which case
a direction may be inserted that it be served at any time of the day or night. If for any
reason the warrant cannot be served during night time, perimeter guarding shall be
conducted until such time that service can be effected.
4.7.3. Turnover of Apprehended Goods by Virtue of
Search Warrant

• In an application for search warrant, the Bureau shall inform the court through a
manifestation that such is for the purpose of taking physical possession of the goods
preparatory to the institution of seizure proceedings for violation of the CMTA, and other
related customs laws.
4.7.4. Return of Service of Warrant

• The Customs Officer and deputized officers asked to prepare and submit to the court the
return of the service of warrant shall always furnish the Bureau a copy thereof within
twenty-four (24) hours from submission of return of service to the court
4.8. CONTROLLED DELIVERY
4.8.1. Nature and Purpose

• An investigative technique of allowing an unlawful or suspect consignment of any

prohibited or regulated articles defined under the CMTA and other laws enforced by the
Bureau, or property believed to be derived directly or indirectly from any offense, to enter
into, pass through or exit out of the country under the supervision of an authorized officer,
for the purpose of gathering evidence to identify the person involved in smuggling-related
offenses, preparatory to the pro
4.8.2. Who may Participate

• Customs Officers and Deputized Officers covered by duly-issued Mission Order

4.8.3. When Conducted

• Controlled delivery may be allowed by the Commissioner for the following:

• Importation of Dangerous drugs, control precursors and essential chemicals as well
as instruments, paraphernalia and laboratory equipment used for the manufacture of
dangerous drugs;
• Importation of Firearms, parts, ammunition, and explosives, without the necessary
permits or clearances from the Philippine National Police; and
• Importation or exportation of other articles which the commissioner may deem
necessary for Controlled Delivery.
• The bureau shall enter into agreement with the other government agencies
concerned to ensure the accomplishment of the purpose for which the controlled
delivery is being undertaken.
Section 5. Enhancement of Border Protection
Capability

• The Bureau shall endeavor to acquire and upgrade its own equipment and resources and
coordinate with other government agencies to enhance its maritime law enforcement
capabilities.
Section 6. Use or Utilization of Forfeiture Fund

• As provided under Section 1151 of the CMTA, expenses for customs intelligence and
enforcement and other related activities shall be sourced from the Forfeiture Fund,
including those incurred for the provision of legal assistance to Customs Officers subject
of criminal actions arising from the proper exercise of their Police Authority.

• The Department of Finance (DOF) and the Department of Budget and Management
(DBM) shall, upon the recommendation of the Bureau, issue a joint regulation to
implement the provisions of this section pursuant to Section 1151 of the CMTA.
Section 7. Authority of the Commissioner to
Promulgate Implementing Rules and Regulations in a
Customs Memorandum Order

• The Commissioner of Customs may issue supplementary rules and regulations, including
entering into Memoranda of Agreement (MOA) or Understanding (MOU) with other law
enforcement agencies to effectively implement the provisions of this CAO
Section 8. Reporting and Monitoring System

• The Bureau shall develop an ICT-based system to validate all deputizations and issued
Mission Orders and generate periodic management reports for purposes of monitoring
progress and evaluation on the success or status of the mission.
• The collection, recording, storage maintenance, processing, sharing of data and
information; and maintenance of data information shall be secured and consistent with
the principles and policy of Republic Act. 10173, also known as the Data Privacy Act.
Section 9. Periodic Review

• Unless otherwise provided, this CAO shall be reviewed not later than every three years,
and be amended or revise, if necessary.
Section 10. Repealing Clause

• This CAO repeals and/or modifies CMO 10-2006, CMO 13-1994, CMO 52-1993, CMO
79-1991 and all other rules and regulations or parts thereof which are inconsistent
herewith.
Section 11. Separability Clause

• If any part of this Order is declared unconstitutional or contrary to existing laws, the other
parts not so declared shall be remain in full force and effect.
Section 12. Effectivity

• This CAO shall take effect thirty (30) days after its publication at the Official Gazette or a
newspaper of national circulation.

• The Office of National Administrative Registrar (ONAR) of the UP Center shall be

provided three (3) certified copies of this CAO
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