CM01 – MODULE 6

Import Clearance
& Formalities 1

BY: MA. LOURDES C. PUNZALAN, MBA, LCB

 LEARNING
OUTCOMES:
•At the end of the module, the
students should be able to:
• Identify the goods to be
imported through Customs
office;
• Describe the types of goods
declaration;

3
LEARNING
OUTCOMES:
• At the end of the module, the students
should be able to:
• Explain the provisional goods declaration;
• Discuss the goods declaration and period
of filing;

4
Title IV
Import
Clearance and
Formalities
Chapter 1
Goods Declaration
 Sec. 400 Goods to be
Imported through Customs
Office
• 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
defined in this Act, as the case
may be.
6
GOODS DECLARATION

▪ refers to a statement made in the manner

prescribed by the Bureau and other
appropriate agencies, by which the persons
concerned indicate the procedure to be
observed in the application for the entry or
admission of imported goods and the
particulars of which the customs
administration shall require. 7
QUESTION:

Bakit lahat ng goods na

iimport ng Philippines
ay kelangan dumaan sa
Bureau of Customs?
8
Sec. 401 Importations Subject to Goods
Declaration
Unless otherwise provided for in this Act, all
imported goods shall be subject to the
lodgement of a goods declaration. A goods
declaration may be for consumption, for
customs bonded warehousing, for
admission, for conditional importation, or
for customs transit.
9
QUESTION:

WHAT IS THE PURPOSE OF

REGISTRATION OF GOODS
DECLARATION?

1
0
Sec. 402 Goods Declaration for
Consumption

All goods declaration for consumption

shall be cleared to a formal entry
process EXCEPT for the following
goods which shall be cleared through
an informal entry process:
1
1
(a) Goods of commercial nature with FOB or
FCA value of less than P50, 000. Every 3
years after the effectivity of this Act, the
Secretary of Finance shall adjust this amount
as provided herein as to its present value,
using the CPI as published by PSA.

1
2
1
3
(b) Personal and household effects or
goods, not in commercial quantity,
imported in a passenger’s baggage or
mail.

1
4
▪ The Commissioner may ▪ All importations entered
adjust the value of goods of through a Formal Entry
commercial nature that process shall be covered by
shall be cleared through an a Letter of Credit or any
Informal Entry process verifiable commercial
without prejudice to the document evidencing
periodic adjustment period payment or in cases where
in subparagraph (a) of this there is no sale for export,
section. by any commercial
document indicating the
commercial value of the
1
goods. 5
Types of Entry

• Formal Entry
• Informal Entry

16
Formal Entry
CONSUMPTION ENTRY –
goods are intended for
immediate release of the
shipment except those
exempted by law, D & T
should be paid at once. 1
7
 WAREHOUSING ENTRY –
(a) placing the goods in
CBW; (b) constructive
warehousing & immediate
transportation to other parts
of the Philippines upon
proper examination and
appraisal; (c) constructive
warehousing and immediate
exportation

Formal
Entry
18
Informal Entry

Personal and
household effects, not Goods of commercial
in commercial quantity, nature with FOB or
imported in a FCA value of less than
passenger’s baggage P50, 000
or mail.
19
The Commissioner may adjust
the value of the goods of
commercial nature shall be
cleared through an informal
entry process without prejudice
to the periodic adjustment 2
0

period in subparagraph (a) of

this section.
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
commercial document indicating the
commercial value of the goods.
2
1
 Sec. 403 Provisional
Goods Declaration
• When 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:
22
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 45 days from the filing of
the provisional goods declaration which
period may be extended by the Bureau for
another 45 days for valid reasons. 2
3
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.
2
4
Goods under provisional goods
declaration may be released upon
posting of any required security
equivalent to the amount ascertained to
be the applicable duties and taxes.

2
5
QUESTION:

WHEN WILL YOU USE THE

PROVISIONAL GOODS
DECLARATION?

2
6
QUESTION:

WHAT IS THE PRESCRIBED

PERIOD OF FILING OF
PROVISIONAL GD?
IS THERE A NEED TO FILE
A SECURITY? WHY?
2
7
Sec. 404 – Owner of Imported
Goods
All goods imported into the Philippines shall
be deemed to be the property of the
consignee or the holder of the bill of lading,
airway bill or other equivalent transport
document if duly endorsed by the consignee
therein, or, if consigned to order, duly
endorsed by the consignor.
2
8
The underwriters of abandoned goods
and the salvors of the goods saved from
wreck at sea, coast or in any area of the
Philippines, may be regarded as the
consignees.

2
9
Sec. 405 – 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
3
0
government and shall be discharged
only upon payment of duties, taxes,
fees and other charges. It also
constitute a lien on the imported goods
which such goods are under customs’
custody.
3
1
LIEN
– legal claim of the BOC
over the imported articles

3
2
KINDS OF LIEN
POSSESSORY – PREFERRED –
legal claim over legal claim of the
payment of duties, BOC while the
taxes, and other articles left the
charges when jurisdiction of the
while the imported BOC; released
articles are in the articles
custody of the
3
3
 Sec. 406 – Importations
by the Government
• Except those provided for in Sec. 800
of this Act, 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 gov’t, shall be
subject to duties & taxes.
34
 Sec. 407 – Goods
Declaration and Period of
Filing
• As far as practicable, the format of the
goods declaration shall conform with
international standards. The data
required in the goods declaration shall be
limited to such particulars that are
deemed necessary for the assessment
and collection of duties and taxes, the
compilation of statistics and compliance
with this
35
Act. The Bureau shall require electronic
lodgment of the goods declaration.

The Bureau shall only require supporting

documents necessary for customs control to
ensure that all requirements of the law have
been complied with. Translation of
supporting documents shall not be required 3
6
except when necessary.
Goods declaration must be lodged within
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 15 days. Provided, That
the request is made before the expiration of
the original period within which to file the 3
7
goods declaration
Provided, however, That the period of
the lodgment of the goods declaration
may be adjusted by the
Commissioner.

3
8
 CMO 27-2019
Implements the 7 day period for the filing
of the goods declaration with the BOC
taking effect last June 15.
39
Sec. 408 – Lodgment and Amendment
of Goods Declaration
The Bureau shall permit the electronic
lodgment of the goods declaration at
any designated customs office. The
Bureau shall, for valid reason and under
terms and conditions provided by
regulation, permit the declarant to
amend the 4
0
goods declaration that has already been
lodged: Provided, That the request to
amend the goods declaration together
with the intended amendments, must be
received PRIOR to final assessment
or examination of the goods
4
1
Sec. 409 – Advance Lodgment and
Clearance
The Bureau may provide for the lodgment
and clearance of goods declaration and
supporting documents prior to the arrival of
the goods under such terms and conditions
as may be provided by rules and regulations
to be promulgated under this Act.

4
2
Sec. 410 – Entry of Goods in Part for
Consumption and in Part for Warehousing

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.
4
3
Air Way Bill (AWB)

▪ A document issued by an air carrier or

freight forwarder to a shipper, to
evidence contract of carriage by air.
▪ A non-negotiable instrument, it
acknowledges that an airline received
the cargo, and provides instructions
on cargo handling, dispatch and
delivery. 4
4
Bill of Lading (BL)

▪ It is a written contract between the

shipper and the carrier evidencing
receipt of commodities and
constitutes a title of ownership over
said goods.
▪ It may also be used as an instrument
of ownership which can be bought,
sold or traded while the goods are in 4
5
transit.
“ THANK YOU FOR
LISTENING!!!

Keep safe and

GodBless!!!

4
6