Customs Modernization

and Tariff Act (CMTA):

A Brief Overview
Mindanao Shipping Conference 2016
27 April 2016, Wednesday
Waterfront Insular Hotel
Davao City, Philippines
Agaton Teodoro O. Uvero
Deputy Comm. for Assessment and Operations
Bureau of Customs, Department of Finance

Presentation Outline
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Brief Background of CMTA

Status Update and Next Steps

Main Features
new policies / provisions
revised provisions

Conclusion: CMTA and customs reforms

Brief Background of CMTA

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initial work started in 2007 to implement the

Revised Kyoto Convention (RKC)

RKC: WCO Convention on the Simplification and

Harmonization of Customs Procedures

2009 bill filed in Congress based on first draft

2010 bill included some customs reform

provisions

CMTA (with 315 provisions) is based on RKC,

WTO Trade Facilitation Agreement, customs
reform agenda and private sector inputs

Status Update and Next Steps

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Ratified by the House and Senate last January 21

Pending with House of Representatives for

enrolment before transmittal to Malacanan

Office of the President has to act within 30 days

from receipt, otherwise the bill will lapse into law

DOF and BOC has created an internal working

group to draft the IRR

Draft IRR will be subject of public consultations

Status Update and Next Steps

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priority provisions for implementation even

before issuance of IRR on the ff:
1. relief consignments: sec 120-21
2. declarants: sec 106-07
3. de minimis value (P10,000 FCA): sec 423

4. formal and informal entry process (P50,000

FCA): sec 402
5. conditionally-free importation (e.g. returning
residents, balikbayan boxes, etc.): sec 800

New Concepts / Policies

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Free Zone (PEZA and freeports) sec: 102, 814-17

Authorized Economic Operator (AEO): sec 102,

1227

paperless transaction: sec 109

legal interest of 20%: sec 104

relief consignment, tax and duty free status

during a state of calamity: sec 120-21

advance ruling/dispute settlement (protest): sec

1100-03, 1106

New Concepts / Policies

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alerts: sec 1111-12

distraint and levy after audit: sec 1132-34

forfeiture fund: sec 1151

surcharge in misclassification, misdeclaration and

undervaluation is now criminal in nature: sec 1400

Congressional Customs and Tariff Oversight

Committee (CCTOC): sec 1700

saving clause: sec 1802

Revised Concepts/Policies
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declarant / 2 year option provision: sec 106

prohibited, regulated and restricted imports: sec

116-19

majority of DepComs are organic: sec 200

transfer of assessment officers after 3 years: sec

201

assignment within the bureau: sec 209

power to visit and inspect, motion to quash or

recall WSD: sec 224

Revised Concepts/Policies
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provisional goods declaration: sec 403

transit vs. transshipment: sec 600-03

CBW and CFW (customs facilities and

warehouses): sec 801-05

period of storage CBWs (1 year / 3 months),

Commissioner may extend: sec 811

settlement (redemption and fine): sec 1124

Abandonment / reclaim of shipment: sec 112930

Conclusion
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CMTA provides for

less discretion
international best practices
clear and simplified rules
less penalties for errors and omissions
increased penalties for fraud / smuggling

CMTA and the customs reforms efforts

IRR of RA 10668 (Co-Loading Act)

Thank you