菲律賓海關(guān)法

Republic of the Philippines

Congress of the Philippines
Metro Manila
Eleventh Congress
Third Regular Session
Begun and held in Metro Manila, on Monday, the twenty-fourth
day of July, two thousand.
[REPUBLIC ACT NO. 9135]
AN ACT AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL DECREE NO.
1464, OTHERWISE KNOWN AS THE TARIFF AND CUSTOMS CODE OF THE
PHILIPPINES, AS AMENDED, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of
the Philippines in Congress assembled:
SECTION 1. Section 201 of the Tariff and Customs Code of the
Philippines, as amended, is hereby further amended to read as
follows:
"SEC. 201. Basis of Dutiable Value. - (A) Method One.
?Transaction Value. - The dutiable value of an imported
article subject to an ad valorem rate of duty shall be the
transaction value, which shall be the price actually paid or
payable for the goods when sold for export to the Philippines,
adjusted by adding:
(1) The following to the extent that they are incurred by the
buyer but are not included in the price actually paid or
payable for the imported goods:
(a) Commissions and brokerage fees (except buying
commissions);
(b) Cost of containers;
? The cost of packing, whether for labour or materials;
(d) The value, apportioned as appropriate, of the following
goods and services: materials, components, parts and similar
items incorporated in the imported goods; tools; dies; moulds
and similar items used in the production of imported goods;
materials consumed in the production of the imported goods;
and engineering, development, artwork, design work and plans
and sketches undertaken elsewhere than in the Philippines and
necessary for the production of imported goods, where such
goods and services are supplied directly or indirectly by the
buyer free of charge or at a reduced cost for use in
connection with the production and sale for export of the
imported goods;
(e) The amount of royalties and license fees related to the
goods being valued that the buyer must pay, either directly or
indirectly, as a condition of sale of the goods to the buyer;
(2) The value of any part of the proceeds of any subsequent
resale, disposal or use of the imported goods that accrues
directly or indirectly to the seller;
(3) The cost of transport of the imported goods from the port
of exportation to the port of entry in the Philippines;
(4) Loading, unloading and handling charges associated with
the transport of the imported goods from the country of
exportation to the port of entry in the Philippines; and
(5) The cost of insurance.
All additions to the price actually paid or payable shall be
made only on the basis of objective and quantifiable data.
No additions shall be made to the price actually paid or
payable in determining the customs value except as provided in
this Section: Provided, That Method One shall not be used in
determining the dutiable value of imported goods if:
(a) There are restrictions as to the disposition or use of the
goods by the buyer other than restrictions which:
(I) Are imposed or required by law or by Philippine
authorities;
(ii) Limit the geographical area in which the goods may be
resold; or
(iii) Do not substantially affect the value of the goods.
(b) The sale or price is subject to some condition or
consideration for which a value cannot be determined with
respect to the goods being valued;
? Part of the proceeds of any subsequent resale, disposal or
use of the goods by the buyer will accrue directly or
indirectly to the seller, unless an appropriate adjustment can
be made in accordance with the provisions hereof; or
(d) The buyer and the seller are related to one another, and
such relationship influenced the price of the goods. Such
persons shall be deemed related if:
(I) They are officers or directors of one another? Businesses;
(ii) They are legally recognized partners in business;
(iii) There exists an employer-employee relationship between
them;
(iv) Any person directly or indirectly owns, controls or holds
five percent (5%) or more of the outstanding voting stock or
shares of both seller and buyer;
(v) One of them directly or indirectly controls the other;
(vi) Both of them are directly or indirectly controlled by a
third person;
(vii) Together they directly or indirectly control a third
person; or
(viii) They are members of the same family, including those
related by affinity or consanguinity up to the fourth civil
degree.
Persons who are associated in business with one another in
that one is the sole agent, sole distributor or sole
concessionaire, however described, of the other shall be
deemed to be related for the purposes of this Act if they fall
within any of the eight (8) cases above.
(B) Method Two. ?Transaction Value of Identical Goods. ?Where
the dutiable value cannot be determined under method one, the
dutiable value shall be the transaction value of identical
goods sold for export to the Philippines and exported at or
about the same time as the goods being valued. "Identical
goods" shall mean goods which are the same in all respects,
including physical characteristics, quality and reputation.
Minor differences in appearances shall not preclude goods
otherwise conforming to the definition from being regarded as
identical.
? Method Three. ?Transaction Value of Similar Goods. ?Where
the dutiable value cannot be determined under the preceding
method, the dutiable value shall be the transaction value of
similar goods sold for export to the Philippines and exported
at or about the same time as the goods being valued. "Similar
goods" shall mean goods which, although not alike in all
respects, have like characteristics and like component
materials which enable them to perform the same functions and
to be commercially interchangeable. The quality of the goods,
their reputation and the existence of a trademark shall be
among the factors to be considered in determining whether
goods are similar.
If the dutiable value still cannot be determined through the
successive application of the two immediately preceding
methods, the dutiable value shall be determined under method
four or, when the dutiable value still cannot be determined
under that method, under method five, except that, at the
request of the importer, the order of application of methods
four and five shall be reversed: Provided, however, That if
the Commissioner of Customs deems that he will experience real
difficulties in determining the dutiable value using method
five, the Commissioner of Customs may refuse such a request in
which event the dutiable value shall be determined under
method four, if it can be so determined.
(D) Method Four. ?Deductive Value. ?The dutiable value of the
imported goods under this method shall be the deductive value
which shall be based on the unit price at which the imported
goods or identical or similar imported goods are sold in the
Philippines, in the same condition as when imported, in the
greatest aggregate quantity, at or about the time of the
importation of the goods being valued, to persons not related
to the persons from whom they buy such goods, subject to
deductions for the following:
(1) Either the commissions usually paid or agreed to be paid
or the additions usually made for profit and general expenses
in connection with sales in such country of imported goods of
the same class or kind;
(2) The usual costs of transport and insurance and associated
costs incurred within the Philippines; and
(3) Where appropriate, the costs and charges referred to in
subsection (A) (3), (4) and (5); and
(4) The customs duties and other national taxes payable in the
Philippines by reason of the importation or sale of the goods.
If neither the imported goods nor identical nor similar
imported goods are sold at or about the time of importation of
the goods being valued in the Philippines in the conditions as
imported, the customs value shall, subject to the conditions
set forth in the preceding paragraph hereof, be based on the
unit price at which the imported goods or identical or similar
imported goods sold in the Philippines in the condition as
imported at the earliest date after the importation of the
goods being valued but before the expiration of ninety (90)
days after such importation.
If neither the imported goods nor identical nor similar
imported goods are sold in the Philippines in the condition as
imported, then, if the importer so requests, the dutiable
value shall be based on the unit price at which the imported
goods, after further processing, are sold in the greatest
aggregate quantity to persons in the Philippines who are not
related to the persons from whom they buy such goods, subject
to allowance for the value added by such processing and
deductions provided under Subsections (D)(1), (2), (3) and (4)
hereof.
(E) Method Five. ?Computed Value. ?The dutiable value under
this method shall be the computed value which shall be the sum
of:
(1) The cost or the value of materials and fabrication or
other processing employed in producing the imported goods;
(2) The amount for profit and general expenses equal to that
usually reflected in the sale of goods of the same class or
kind as the goods being valued which are made by producers in
the country of exportation for export to the Philippines;
(3) The freight, insurance fees and other transportation
expenses for the importation of the goods;
(4) Any assist, if its value is not included under paragraph
(1) hereof; and
(5) The cost of containers and packing, if their values are
not included under paragraph (1) hereof.
The Bureau of Customs shall not require or compel any person
not residing in the Philippines to produce for examination, or
to allow access to, any account or other record for the
purpose of determining a computed value. However, information
supplied by the producer of the goods for the purposes of
determining the customs value may be verified in another
country with the agreement of the producer and provided they
will give sufficient advance notice to the government of the
country in question and the latter does not object to the
investigation.
(F) Method Six. ?Fallback Value. ?If the dutiable value cannot
be determined under the preceding methods described above, it
shall be determined by using other reasonable means and on the
basis of data available in the Philippines.
If the importer so requests, the importer shall be informed in
writing of the dutiable value determined under Method Six and
the method used to determine such value.
No dutiable value shall be determined under Method Six on the
basis of:
(1) The selling price in the Philippines of goods produced in
the Philippines;
(2) A system that provides for the acceptance for customs
purposes of the higher of two alternative values;
(3) The price of goods in the domestic market of the country
of exportation;
(4) The cost of production, other than computed values, that
have been determined for identical or similar goods in
accordance with Method Five hereof;
(5) The price of goods for export to a country other than the
Philippines;
(6) Minimum customs values; or
(7) Arbitrary or fictitious values.
If in the course of determining the dutiable value of imported
goods, it becomes necessary to delay the final determination
of such dutiable value, the importer shall nevertheless be
able to secure the release of the imported goods upon the
filing of a sufficient guarantee in the form of a surety bond,
a deposit, cash or some other appropriate instrument in an
amount equivalent to the imposable duties and taxes on the
imported goods in question conditioned upon the payment of
customs duties and taxes for which the imported goods may be
liable: Provided, however, That goods, the importation of
which is prohibited by law shall not be released under any
circumstance whatsoever.
Nothing in this Section shall be construed as restricting or
calling into question the right of the Collector of Customs to
satisfy himself as to the truth or accuracy of any statement,
document or declaration presented for customs valuation
purposes. When a declaration has been presented and where the
customs administration has reason to doubt the truth or
accuracy of the particulars or of documents produced in
support of this declaration, the customs administration may
ask the importer to provide further explanation, including
documents or other evidence, that the declared value
represents the total amount actually paid or payable for the
imported goods, adjusted in accordance with the provisions of
Subsection (A) hereof.
If, after receiving further information, or in the absence of
a response, the customs administration still has reasonable
doubts about the truth or accuracy of the declared value, it
may, without prejudice to an importer? Right to appeal
pursuant to Article 11 of the World Trade Organization
Agreement on customs valuation, be deemed that the customs
value of the imported goods cannot be determined under Method
One. Before taking a final decision, the Collector of Customs
shall communicate to the importer, in writing if requested,
his grounds for doubting the truth or accuracy of the
particulars or documents produced and give the importer a
reasonable opportunity to respond. When a final decision is
made, the customs administration shall communicate to the
importer in writing its decision and the grounds therefor."
SEC. 2. Section 1302 of Part 2, Title IV of the Tariff and
Customs Code of the Philippines, as amended, is hereby further
amended to read as follows:
"Sec. 1302. Import Entries. ?All imported articles, except
importations admitted free of duty under Subsection "k",
Section one hundred and five of this Code, shall be subject to
a formal or informal entry. Articles of a commercial nature
intended for sale, barter or hire, the dutiable value of which
is Two thousand pesos (P2,000.00) or less, land personal and
household effects or articles, not in commercial quantity,
imported in passenger? Baggage, mail or otherwise, for
personal use, shall be cleared on an informal entry whenever
duty, tax or other charges are collectible.
The Commissioner may, upon instruction of the Secretary of
Finance, for the protection of domestic industry or of the
revenue, require a formal entry, regardless of value, whatever
be the purpose and nature of the importation.
A formal entry may be for immediate consumption, or under
irrevocable domestic letter of credit, bank guarantee or bond
for:
(a) Placing the article in customs bonded warehouse;
(b) Constructive warehousing and immediate transportation to
other port of the Philippines upon proper examination and
appraisal; or
? Constructive warehousing and immediate exportation.
Import entries under irrevocable domestic letter of credit,
bank guarantee or bond shall be subject to the provisions of
Title V, Book II of this Code.
All importations entered under formal entry shall be covered
by a letter of credit or any other verifiable document
evidencing payment."
SEC. 3. Section 1407 of Part 3 Title IV of the Tariff and
Customs Code of the Philippines, as amended, is hereby further
amended to read as follows:
"SEC. 1407. Readjustment of Appraisal, Classification or
Return. - Such appraisal, classification or return as finally
passed upon and approved or modified by the Collector shall
not be altered or modified in any manner, except:
(a) Within one year after payment of the duties, upon
statement of error in conformity with Section seventeen
hundred and seven hereof, approved by the Collector.
(b) Within fifteen days after such payment upon request for
reappraisal and/or reclassification addressed to the
Commissioner by the Collector, if the appraisal and/or
classification is deemed to be low.
? Upon request for reappraisal and/or reclassification, in the
form of a timely protest addressed to the Collector by the
interested party if the latter should bed dissatisfied with
the appraisal or return.
(d) Upon demand by the Commissioner of Customs after the
completion of compliance audit pursuant to the provisions of
this Code."
SEC. 4. Section 1603 of Part 5, Title IV of the Tariff and
Customs Code of the Philippines, as amended, is hereby further
amended to read as follows:
"SEC. 1603. Finality of Liquidation. When articles have been
entered and passed free of duty or final adjustments of duties
made, with subsequent delivery, such entry and passage free of
duty or settlements of duties will, after the expiration of
three (3) years from the date of the final payment of duties,
in the absence of fraud or protest or compliance audit
pursuant to the provisions of this Code, be final and
conclusive upon all parties, unless the liquidation of the
import entry was merely tentative."
SEC. 5. A new section to be known as Section 2317 is hereby
inserted under Part 2, Title VI of the Tariff and Customs Code
of the Philippines, as amended, which shall read as follows:
"SEC. 2317. Government? Right of Compulsory Acquisition. ?In
order to protect government revenues against the
undervaluation of goods subject to ad valorem duty, the
Commissioner of Customs may acquire imported goods under
question for a price equal to their declare 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 of Customs for the
acquisition of such goods.
An importer who is dissatisfied with a decision of the
Commissioner of Customs pertaining to this section may, within
twenty (20) working days after the date on which notice of the
decision is given, appeal to the Secretary of Finance and
thereafter if still dissatisfied, to the court of Tax Appeals
as provided for in Section 2402 of the Tariff and Customs Code
of the Philippines, as amended.
Where no appeal is made by the importer, or upon reaffirmation
of the commissioner? Decision during the appeals process, the
Bureau of Customs or its agent shall sell the acquired goods
pursuant to existing laws and regulations.
Nothing in this Section limits or affects any other powers of
the Bureau of Customs with respect to the disposition of the
goods or any liability of the importer or any other person
with respect to an offense committed in the importation of the
goods."
SEC. 6. Section 2401 of Part, Title VI of the Tariff and
Customs Code of the Philippines, as amended, is hereby further
amended to read as follows:
"SEC. 2401. Supervision and Control Over Criminal and Civil
Proceedings. - Civil and criminal actions and proceedings
instituted in behalf of the government under the authority of
this Code or other law enforced by the Bureau shall be brought
in the name of the government of the Philippines and shall be
conducted by customs but no civil or criminal action for the
recovery of duties or the enforcement of any fine, penalty or
forfeiture under this Code shall be filed in court without the
approval of the Commissioner."
SEC. 7. Section 2606 of Part 5, Title VI of the Tariff and
Customs Code of the Philippines, as amended, is hereby further
amended to read as follows:
"SEC. 2606. Disposition of Surplus from the Proceeds of Sale
of Abandoned or Forfeited or Acquired Articles. - Except in
the case of the sale of abandoned or forfeited articles, and
articles which are not claimed by payment of duties, taxes and
other charges and compliance with all legal requirements
within the prescribed period, any surplus remaining after the
satisfaction of all unlawful charges as aforesaid shall be
retained by the Collector for ten (10) days subject to the
call of the owner.
Upon failure of the owner to claim such surplus within this
period, the Collector shall deposit such amount in a special
trust fund which shall be used solely for the purpose of
financing the compulsory acquisition of imported goods by the
government as provided in Section 2317 hereof.
In all such cases the Collector shall report fully his action
in the matter, together with all the particulars, to the
Commissioner and to the Chairman on Audit. After one year, the
unused amounts in such special trust funds, except for an
amount necessary to finance forced government acquisitions
before the first auction of the succeeding year, shall be
turned over to the Bureau of Treasury as customs receipts."
SEC. 8. A new section to be known as Section 3514 is hereby
inserted in Part, 2 Title VII of the Tariff and Customs Code
of the Philippines, as amended, which shall read as follows:
"SEC. 3513. Requirement to Keep Records. - All importers are
required to keep at their principal place of business, in the
manner prescribed by regulations to be issued by the
Commissioner of Customs and for a period three (3) years from
the date of importation, all the records of their importations
and/or books of accounts, business and computer systems and
all customs commercial data including payment records relevant
for the verification of the accuracy of the transaction value
declared by the importers/customs brokers on the import entry.
All brokers are required to keep at their principal place of
business, in the manner prescribed by regulations to be issued
by the Commissioner of Customs and for a period of three (3)
years from the date of importation copies of the above
mentioned records covering transactions that they handle."
SEC. 9. A new section to be known as Section 3515 is hereby
inserted in Part 2, Title VII of the Tariff and Customs Code
of the Philippines, as amended, which shall read as follows:
"SEC. 3515. Compliance Audit or Examination of Records. - The
importers/customs brokers shall allow any customs officer
authorized by the Bureau of Customs to enter during office
hours any premises or place where the records referred to in
the preceding section are kept to conduct audit examination,
inspection, verification and/or investigation of those records
either in relation to specific transactions or to the adequacy
and integrity of the manual or electronic system or systems by
which such records are created and stored. For this purpose. A
duty authorized customs officer shall be full and free access
to all books, records, and documents necessary or relevant for
the purpose of collecting the proper duties and taxes.
In addition, the authorized customs officer may make copies
of, or take extracts from any such documents. The records or
documents must, as soon as practicable after copies of such
have been taken, be returned to the person in charge of such
documents.
A copy of any such document certified by or on behalf of the
importer/broker is admissible in evidence in all courts as if
it were the original.
An authorized customs officer is not entitled to enter any
premises under this Section unless, before so doing, the
officer produces to the person occupying or apparently in
charge of the premises written evidence of the fact that he or
she is an authorized officer. The person occupying or
apparently in charge of the premises entered by an officer
shall provide the officer with all reasonable facilities and
assistance for the effective exercise of powers under this
Section.
Unless otherwise provided herein or in other provisions of
law, the Bureau of Customs may, in case of disobedience,
invoke the aid of the proper regional trial court within whose
jurisdiction the matter falls. The court may punish contumacy
or refusal as contempt. In addition, the fact that the
importer/broker denies the authorized customs officer full and
free access to importation records during the conduct of a
post-entry audit shall create a presumption of inaccuracy in
the transaction value declared for their imported goods and
constitute grounds for the Bureau of Customs to conduct a
re-assessment of such goods.
This is without prejudice to the criminal sanctions imposed by
this Code and administrative sanctions that the Bureau of
Customs may impose against contumacious importers under
existing laws and regulations including the authority to hold
delivery or release of their imported articles."
SEC. 10. A new Section to be known as Section 3516 is hereby
inserted in Part 2, Title VII of the Tariff and Customs Code
of the Philippines, as amended, which shall read as follows:
"SEC. 3516. Scope of the Audit. ?
(a) The audit of importers shall be undertaken:
(1) When firms are selected by a computer-aided risk
management system, the parameters of which are to be based on
objective and quantifiable data and are to be approved by the
Secretary of Finance upon recommendation of the Commissioner
of Customs. The criteria for selecting firms to be audited
shall include, but not be limited to, the following:
(a) Relative magnitude of customs revenue from the firm;
(b) The rates of duties of the firm? Imports;
? The compliance tract records of the firm; and
(d) An assessment of the risk to revenue of the firm? Import
activities.
(2) When errors in the import declaration are detected;
(3) When firms voluntarily request to be audited, subject to
the approval of the Commissioner of Customs.
(b) Brokers shall be audited to validate audits of their
importer clients and/or fill information gaps revealed during
an audit of their importers clients."
SEC. 11. A new Section to be known as Section 3517 is hereby
inserted in Part 2, Title VII of the Tariff and Customs Code
of the Philippines, as amended, which shall read as follows:
"SEC. 3517. Documents in Foreign Language. - Where a document
in a foreign language is presented to a customs officer in
relation to the carrying out of any duty or the exercise of
any power of the Bureau of Customs under this Code, said
document in a foreign language must be accompanied with a
translation in the official language of this country."
SEC. 12. A new Section to be known as Section 3518 is hereby
inserted in Part 2, Title VII of the Tariff and Customs Code
of the Philippines, as amended, which shall read as follows:
"Sec. 3518. Records to Be Kept by Customs. ?The Bureau of
Customs shall likewise keep a record of audit results in a
database of importer and broker profiles, to include but not
be limited to:
(a) Articles of Incorporation;
(b) The company structure, which shall include but not be
limited to:
(1) Incorporators and Board of Directors;
(2) Key officers; and
(3) Organizational structure;
? Key importations;
(d) Privileges enjoyed;
(e) Penalties; and
(f) Risk category (ies)."
SEC. 13. Part 3, Title VII of the Tariff and Customs Code of
the Philippines, as amended, shall be renamed as "PROVISIONS
ON PENALTIES".
SEC. 14. Section 3604 of Part 3, Title VII of the Tariff and
Customs Code of the Philippines, as amended, is hereby further
amended to read as follows:
"SEC. 3604. Statutory Offenses of Officials and Employees. -
Every official, agent or employee of the Bureau or of any
other agency of the government charged with the enforcement of
the provisions of this Code, who is guilty of any delinquency
herein below indicated shall be punished with a fine of not
less than Five thousand pesos nor more than Fifty thousand
pesos and imprisonment for not less than one year nor more
than ten years and perpetual disqualification to hold public
office, to vote and to participate in any public election:
(a) Those guilty of extortion or willful oppression under
color of law;
(b) Those who knowingly demand other or greater sums than are
authorized by law or receive any fee, compensation, or reward
except as by law prescribed, for the performance of any duty;
? Those who willfully neglect to give receipts, as required by
law for any sum collection the performance of duty, or who
willfully neglect to perform any of the duties enjoined by
law;
(d) Those who knowingly demand other or greater sums than are
authorized by law or receive any fee, compensation, or reward
except as by law prescribed, for the performance of any duty;
(e) Those who willfully make opportunity for any person to
defraud the customs revenue or who do or fail to do any act
with intent to enable any person to defraud said revenue;
(f) Those who negligently or designedly permit the violation
of the law by any other person;
(g) Those who make or sign any false entry or entries in any
book, or make or sign any false certificate or return in any
case where the law requires the making by them of such entry,
certificate or return;
(h) Those who, having knowledge or information of a violation
of the Tariff and Customs Law or any fraud committed on the
revenue collectible by the Bureau, fail to report such
knowledge or information to their superior official or to
report as otherwise required by law;
(I) Those who, without the authority of law, demand or accept
or attempt to collect directly or indirectly as payment of
otherwise, any sum of money or other thing of value for the
compromise, adjustment, or settlement of any charge or
complaint for any violation or alleged violation of law; or
(j) Those, without authority of law, disclose confidential
information gained during any investigation or audit, or use
such information for personal gain or to the detriment of the
government, the Bureau or third parties."
SEC. 15. A new section to be known as Section 3610 is hereby
inserted in Part 3, Title VII of the Tariff and Customs Code
of the Philippines, as amended, which shall read as follows:
"SEC. 3610. Failure to Keep Importation Records and Give Full
Access to Customs Officers. - Any person who fails to keep all
the records of importations and/or books of accounts, business
and computer systems and all customs commercial data in the
manner prescribed in Part 2, Section 3514 of this Title shall
be punished with a fine of not less than One hundred thousand
pesos (P100,000.00) but not more than Two hundred thousand
pesos (P200,000.00) and/or imprisonment of not less than two
(2) years and one day but not more than six (6) years. This
penalty shall likewise be imposed against importers/brokers
who deny an authorized customs officer full and free access to
such records, books of accounts, business and computer
systems, and all customs commercial data including payment
records. This is without prejudice to the administrative
sanctions that the Bureau of Customs may impose against the
contumacious importers under existing laws and regulations
including the authority to hold delivery or release of their
imported articles."
SEC. 16. A new section to be known as Section 3611 is hereby
inserted in Part 3, Title VII of the Tariff and Customs Code
of the Philippines, as amended, which shall read as follows:
"SEC. 3611. Failure to Pay correct Duties and Taxes on
Imported Goods. - Any person who, after being subjected to
post-entry audit and examination as provided in Section 3515
of Part 2, Title VII hereof, is found to have incurred
deficiencies in duties and taxes paid for imported goods,
shall be penalized according to three (3) degrees of
culpability subject to any mitigating, aggravating or
extraordinary factors that are clearly established by the
available evidence:
(a) Negligence - When the deficiency results from an offender?
Failure, through an act or acts of omission or commission, to
exercise reasonable care and competence to ensure that a
statement made is correct, it shall be determined to be
negligent and punishable by a fine equivalent to not less than
one-half (1/2) but not more than two (2) times the revenue
loss.
(b) Gross Negligence - When a deficiency results from an act
or acts of omission or commission done with actual knowledge
or wanton disregard for the relevant facts and with
indifference to or disregard for the offender? Obligation
under the statute, it shall be determined to be grossly
negligent and punishable by a fine equivalent to not less than
two and a half (2 ? But not more than four(4) times the
revenue loss.
? Fraud - When the material false statement or act in
connection with the transaction was committed or omitted
knowingly, voluntarily and intentionally, as established by
clear and convincing evidence, it shall be determined to be
fraudulent and be punishable by a fine equivalent to not less
than five (5) times but not more than eight (8) times the
revenue loss and imprisonment of not less than two (2) years
but not more than eight (8) years.
The decision of the Commissioner of Customs, upon proper
hearing, to impose penalties as prescribed in this Section may
be appealed in accordance with Section 2402 hereof."
SEC. 17. The following provisions of the Tariff and Customs
Code of the Philippines, as amended, are renumbered as
follows:
(a) Section 3514 of Part 2, Title VII ("Words and Phrases
Defined") is renumbered as Section 3519; and
(b) Section 3610 of Part 3, Title VII ("Violations of Tariff
and customs Laws and Regulations in General") is renumbered as
Section 3612.
SEC. 18. Rules and Regulations. - The Secretary of Finance
shall, upon the recommendation of the Commissioner of Customs,
promulgate the necessary rules and regulations for the
effective implementation of this Act.
SEC. 19. Repealing Clause. - All laws, decrees, executive
orders, rules and regulations and other issuances or parts
thereof which are inconsistent with this Act are hereby
repealed or modified accordingly.
SEC. 20. Effectivity. - This Act shall take effect fifteen
(15) days after its publication in the Official Gazette or in
any two (2) newspapers of general circulation, whichever date
comes earlier.
Approved,