TAXATION Part SIX

TAX REMEDIES
REMEDIES UNDER THE TARIFF AND CUSTOMS CODE
Remedies Available to the Government a. Seizure and Forfeiture of Goods and Commodities
SEARCH, SEIZURE AND ARREST Sec 2201, TCC Trespass or Obstruction of Customs Premises. - No person other than those w/ legit biz w/, OR employees of port or BoC is allowed to enter customs premises w/o written permission of Collector. - No person shall obstruct customhouse, whouse, ofc, wharf, street or premises under control of BoC, or in any approaches to that house / premises. Sec 2202, TCC Special Surveillance for Protection of Customs Revenue and Prevention of Smuggling. In order to prevent smuggling and to secure the collection of the legal duties, taxes and other charges, the customs service shall exercise surveillance over the coast, beginning when a vessel or aircraft enters Philippine territory and concluding when the article imported therein has been legally passed through the customhouse: Provided, That 43 the function of the Philippine Coast Guard to prevent and suppress illegal entry, smuggling and other customs frauds and violations of the maritime law and its proper surveillance of vessels entering and/or leaving the Philippine territory as provided in section 3 (a) of Republic Act Numbered Fifty -one hundred and seventy -three shall continue to be in force and effect. Sec 2203, TCC Persons Having Police Authority. - For enforcement of tariff & customs laws, ff are authorized to effect searches, seizures, arrests conformably w/ said laws a. officials of BoC, district collectors, deputy collectors, police officers, agents, inspectors, guards of BoC b. - officers of Phil Navy AND - other members of AFP & natl law enforcement agencies when authorized by Commissioner c. officials of BIR on all cases falling w/in regular performance of duties, when payment of internal revenue taxes are involved d. officers generally empowered by law to effect arrests & execute processes of courts, when under direction of Collector - To avoid conflicts & insure coordination, Sec of Finance shall, subject to approval of Pres, define scope, areas covered, procedures, conditions governing exercise of police authority incl custody & responsibility for goods seized. - Rules shall be - furnished to govt agencies & personnel concerned AND - published in newspaper of gen circulation Sec 2204, TCC Place Where Authority May be Exercised. - All persons w/ powers in preceding sec may exercise the same at any place w/in jurisdiction of BoC. Sec 2205, TCC Exercise of Power of Seizure and Arrest. - Its w/in official / person authorized AND its his duty, to make seizure of vessel, aircraft, cargo, article, animal, other movable prop, when subject to forfeiture, such power to be exercised in conformity w/ law & this Code - Powers of Fisheries Commission to make arrests, searches, seizures, and Phil Coast Guard shall continue.

Sec 2206, TCC Duty of Officer or Official to Disclose Official Character. - Its the duty of person exercising authority, upon being questioned at time of exercise thereof - to make known his official character as officer / official - if his authority is derived fr special authorization in writing, to exhibit the same for inspection, if demanded Sec 2207, TCC Authority to Require Assistance. - Person exercising police authority under customs & tariff laws may demand assistance of police officer when necessary to effect search, seizure, arrest. - Its the duty of police officer upon whom requisition is made to give assistance. Sec 2208, TCC Right of Police Officer to Enter Inclosure. - For more effective discharge of official duties, person exercising powers, may any time enter, pass thru, or search any land / inclosure / whouse, store, bldg, not being a dwelling house. - Whouse, store, bldg / inclosure used for keeping / storage of articles doesnt become dwelling house merely by reason of fact that person as watchman lives in the place, nor will the fact that his family stays there w/ him alter the case. Sec 2209, TCC Search of Dwelling House. - Dwelling house may be entered & searched only upon warrant - issued by Judge of Court or other responsible officers as authorized by law upon sworn application showing probable cause AND - particularly describing place to be searched & thing to be seized Sec 2210, TCC Right to Search Vessels or Aircrafts and Persons or Articles Conveyed Therein. - Its lawful for any official / person exercising police authority - to go abroad vessel / aircraft w/in limits of collection district - to inspect, search, examine vessel / aircraft and trunk, package, box, envelope on board - to search person on board vessel / aircraft - to use necessary force to compel compliance - to make seizure, if it appears that breach / violation of customs & tariff laws was committed, where vessel, aircrafts, article, or part thereof, is liable to forfeiture - Power of search extends to removal of false bottom, partition, bulkhead or obstruction. - No proceeding herein gives rise to any claim for damage caused to article / vessel / aircraft. Sec 2211, TCC Right to Search Vehicles, Beasts and Persons. - Its lawful for exercising authority - to open & examine box, trunk, envelope, container when he has reasonable cause to suspect presence of dutiable or prohibited article AND - to stop, search, examine any vehicle, beast, person reasonably suspected of holding / conveying such article Sec 2212, TCC Search of Persons Arriving From Foreign Countries. - Persons coming into Phils fr foreign countries are liable to detention & search by customs authorities. - Female inspectors may be employed for exam & search of persons of their own sex. ADMINISTRATIVE PROCEEDINGS Sec 2301, TCC Warrant for Detention of Property - Cash Bond. - Upon making seizure, Collector issues warrant for detention of prop. - If owner / importer desires to secure release of prop for legit use, Collector shall, w/ approval of Commissioner, surrender it

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upon filing of cash bond, in amt fixed by him, conditioned upon payment of appraised value of article and / or fine, expenses, costs w/c may be adjudged. - Importation isnt released under any bond when theres prima facie evidence of fraud. - Articles the importation of w/c is prohibited by law shall not be released. - Nothing is construed as relieving owner / importer fr any crim liability w/c may arise fr violation of law in connection w/ importation. Sec 2302, TCC Report of Seizure to Commissioner and Chairman, Commission on Audit. - When seizure is made, Collector of district where seizure is effected shall immediately make report to - Commissioner AND - Chairman, CoA Sec 2303, TCC Notification to Owner or Importer. - Collector gives owner / importer of prop / agent - written notice of seizure AND - opportunity to be heard re delinquency w/c was the occasion of seizure - The importer, consignee OR person holding BL is deemed to be "owner" of article included in BL. - "Agent" is deemed to incl not only any agent in fact of owner of seized prop but also any person having responsible possession of prop at time of seizure, if owner / his agent in fact is unknown or cant be reached. Sec 2304, TCC Notification to Unknown Owner. - Notice to unknown owner is effected by - posting for 15d in public corridor of customhouse of district in w/c seizure was made AND - in discretion of Commissioner, publication in newspaper OR other means he considers desirable Sec 2305, TCC Description, Appraisal and Classification of Seized Property. - Collector also causes - list AND particular description and / or classification of prop seized to be prepared - appraisement of the same, like, or similar article at wholesale value in local market in usual wholesale quantities in ordinary course of trade to be made by at least 2 appraising officials - in absence of those officials, then by 2 competent & disinterested citizens of Phils, selected by him, residing at or near place of seizure - List AND appraisement are properly attested to by Collector AND persons making appraisal. Sec 2306, TCC Proceedings in Case of Property Belonging to Unknown Parties. - If w/in 15d after notification in Sec 2304, no owner / agent can be found or appears before Collector, latter declares prop - forfeited to govt - to be sold at auction Sec 2307, TCC Settlement of Case by Payment of Fine or Redemption of Forfeited Property. - Subject to approval of Commissioner, district collector may, while case is still pending, except when theres fraud, accept settlement of seizure case provided that owner, importer, exporter, consignee or agent offers to pay to collector - fine upon the prop OR - in case of forfeiture, domestic market value of seized article - Commissioner may accept settlement of seizure case on appeal in same manner. - Upon (1) payment of fine as determined by district collector w/c is in amt not < 20% nor > 80% of landed cost of seized imported article OR FOB value of seized article for export, OR (2) payment of domestic market value - prop is released AND - all liabilities w/c may attach to prop by virtue of offense w/c was the occasion of seizure AND all liability w/c mightve been incurred under cash deposit or bond given by owner / agent is discharged - Settlement of seizure case by payment of fine / redemption of forfeited prop isnt allowed where - importation is absolutely prohibited OR - release of prop is contrary to law Sec 2308, TCC Protest and Payment Upon Protest in Civil Matters. - When ruling / decision of Collector is made where liability for duties, taxes, fees, charges are determined, except fixing of fines in seizure cases, partly adversely affected may protest ruling / decision by presenting to Collector, when payment of amt claimed to be due govt is made OR w/in 15d thereafter, a written protest setting forth objection w/ reasons therefor. - No protest is considered unless payment of amt due is first made AND docket fee. Sec 2309, TCC, as amended by RA 7651 Protest Exclusive Remedy in Protestable Case. - In cases subject to protest, interested party who desires to have action of Collector reviewed, makes protest. - Otherwise, action of Collector is final & conclusive against him, except as to matters collectible for manifest error in Sec 1707. Sec 2310, TCC Form and Scope of Protest. - Protest - is filed in accordance w/ prescribed rules under this sec - points out decision / ruling of Collector to w/c exception is taken or objection made - indicates ground/s upon w/c protesting party bases claim for relief - Scope of protest is ltd to subject matter of single adjustment OR independent transaction BUT any no. of issue may be raised in protest w/ reference to particular item/s constituting subject matter of protest. - Single adjustment: entire content of 1 liquidation, incl all duties, fees, surcharges, fines Sec 2311, TCC Samples to be Furnished by Protesting Parties. - If nature of articles permits, importers filing protests involving questions of fact must, upon demand, supply Collector w/ samples of articles - subject matter of protest. - Samples are verified by customs official who made classification against w/c protests are filed. Sec 2312, TCC Decision or Action of Collector in Protest and Seizure Cases. - When protest in proper form is presented in case where protest is required, Collector - issues order for hearing w/in 15d fr receipt of protest AND - hears matter presented - Upon termination of hearing, Collector renders decision w/in 30d. - If protest is sustained, in whole or in part, he makes appropriate order, the entry reliquidated necessary. - In seizure cases, Collector, after hearing, shall in writing - make declaration of forfeiture OR - fix amt of fine OR - take other action as proper Sec 2313, TCC, as amended by RA 7651 Review of Commissioner. - Person aggrieved by decision OR action of Collector in matter presented upon protest OR action in case of seizure may, w/in 15d after notification in writing by Collector of his action / decision, file written notice to Collector w/ copy furnished to Commissioner of his intent to appeal to Commissioner. - Collector shall transmit all records to Commissioner, who shall - approve, modify or reverse action / decision of Collector AND - take steps and make orders to give effect to his decision

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- When appeal is filed beyond period prescribed, the same is dismissed. - If in seizure proceedings, Collector renders decision adverse to Govt, such is automatically rvwd by Commissioner AND records elevated w/in 5d fr promulgation of decision of Collector. - Commissioner renders decision of automatic appeal w/in 30d fr receipt of records. - If Collector's decision is reversed by Commissioner, decision of Commissioner is final & executory. - If Collector's decision is affirmed OR if w/in 30d fr receipt of records of case by Commissioner no decision is rendered OR decision involves imported articles whose published value is P5M or more, decision is automatically appealed to Sec of Finance AND records are elevated w/in 5d fr promulgation of decision of Commissioner OR Collector under appeal. - If decision of Commissioner OR Collector under appeal is affirmed by Sec of Finance OR if w/in 30d fr receipt of records by Sec of Finance, no decision is rendered, decision of Sec of Finance OR Commissioner OR Collector under appeal becomes final & executory. - In seizure proceeding, release of imported articles isnt allowed unless & until decision of Collector has been confirmed in writing by Commissioner. Sec 2314, TCC Notice of Decision of Commissioner. - Notice of decision of Commissioner is given to party by whom case was brought before him for rvw. - In seizure cases, notice is effected by personal svc if practicable. Sec 2315, TCC, as amended by RA 7651 Supervisory Authority of Commissioner and Secretary of Finance in Certain Cases. - If any case involving assessment of duties, Collector renders decision adverse to Govt, such decision is automatically elevated to & rvwd by Commissioner. - If Collector's decision is affirmed by Commissioner, decision is automatically elevated to & finally rvwd by Sec of Finance. - If w/in 30d fr receipt of record of case by Commissioner / Sec of Finance, as case may be, no decision is rendered by them, decision under rvw is final & executory. - Any party aggrieved by either decision of Commissioner or Sec of Finance may appeal to CTA w/in 30d fr receipt of copy of decision. - Except as provided in preceding par, supervisory authority of Sec of Finance over BoC shall not extend to administrative rvw of ruling / decision of Commissioner in matters appealed to CTA. Sec 2316, TCC Authority of Commissioner to make Compromise. - Subject to approval of Sec of Finance, Commissioner may compromise any case under this Code or other laws / part of laws enforced by BoC re imposition of fines, surcharges & forfeitures unless otherwise specified by law. Sec 2317, TCC Government's Right of Compulsory Acquisition. - To protect govt revenues against undervaluation of goods subject to ad valorem duty, Commissioner may acquire imported goods under question for price equal to declared customs value + duties already pd on goods. - Payment must be made w/in 10 working days fr issuance of warrant signed by Commissioner for acquisition of goods. - Importer dissatisfied w/ decision of Commissioner re this sec may, w/in 20 working days after date on w/c notice of decision is given, appeal to Sec of Finance, and if still dissatisfied, to CTA as in Sec 2402. - Where no appeal is made by importer OR upon reaffirmation of Commissioners decision, BoC or its agent sells acquired goods. - Nothing in this Sec limits or affects other powers of BoC re disposition of goods or any liability of importer or other person w/ respect to offense in importation. CAO 10-2007 Rules and Regulations in Conduct of Public Auction and Negotiated Sale Sec 1. Coverage. - This covers disposition of articles under customs custody in Sec 2601, TCCP thru public auction OR negotiated sale pursuant to Sec 2610. Sec 2. Public Auction. In absence of special provision, articles under customs custody are disposed of thru sale by public auction. Sec 3. Floor Price in Auction Sale. - Articles subject to sale at public auction is sold at price not < wholesale value of canvassed domestic wholesale price of same, like or similar articles and in usual wholesale quantities and in ordinary course of trade - determined by examiners / appraisers - subject to approval of Chief, ACDD AND District Collector - Recommended floor price shall not be < sum of total landed cost based on published / circularized VRIS OCOM test value plus taxes, taking into consideration depreciation. Sec 4. Notice of Public Auction. - Its prepared by Chief, ACDD or its equivalent unit AND approved by District Collector containing info: - time, date, place of sale - lot no. per sale lot, name of consignee - description of goods (CAO 8-2007) per sale lot, incl qty, condition, volume / qty, date of arrival - in no case shall goods be described as various goods - in motor vehicles, incl year model, make / brand, vehicle ID no., chassis & engine no. - if perishable item, the expiry date - floor price per sale lot - date, time, place for inspection of items, 2 days prior to auction date - terms & conditions of auction Sec 5. Submission of Notice of Sale to Commissioner for Monitoring Purposes. - Upon approval of Notice of Sale by District Collector, the Chief, ACDD shall furnish the Commissioner a copy of Notice and submit the ff docs - inventory of ea sale lot covered by Notice of Public Auction - Certificate of Finality of Forfeiture / Declaration of Abandonment OR Order of District Collector to sell in public auction - in case of perishable items, Certification fr assigned examiner / appraiser attesting to the fact that the goods are perishable and approved by Chief, ACDD Sec 6. Publication and Posting of Notice of Sale. - Notice of Auction Sale, regardless of aggregate amt of covered sale lots, shall be - published in at least 2 newspapers of gen circulation AND - posted at Bureau website and / or at conspicuous place / bulletin board w/in port at least 10 calendar days prior to date of auction sale OR in case of perishables, at least 3 calendar days. - Except for Manila, Cebu, Cagayan de Oro and Davao, the Notice is also posted at bulletin board of city / municipal hall where port is located. Sec 7. Conditions for Registration and Participation in Public Bidding. - Chief, ACDD is responsible to ensure that only those who have complied w/ ff requirements shall participate & register in auction: - file accomplished registration form - pay non-refundable registration fee of P2000 - post of duly receipted bond in cash / managers check in amt equivalent to 20% of floor price for ea sale lot.

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- refunded to losing bidder after closing - not required when floor price of a sale lot is < P10000 - if involving regulated commodities, submit to ACDD proof of qualification - indicate relevant circumstances of registration in logbook for registered bidders - submit latest income and / or biz tax returns duly stamped & rcvd by BIR and validated w/ payment made Sec 8. Sealed Bid System. - Sealed bids are submitted & opened in public by Auction Committee at a time, date, place in Notice. - Highest bid is declared winner except in clustering. Sec 9. Clustering System. - Clustering: diff between highest and 2nd highest bid is w/in 10% of highest bid. - Open bidding is conducted among bidders of particular sale lot present w/ highest bid serving as new floor price. - Only bids raised by 3% or more than new floor price are considered and the highest bid in open bidding is declared winner. Otherwise, highest sealed bid wins. Sec 10. Awarding of Sale. - At end of bidding, highest bidder is required to pay in cash / managers check 50% of bid price on the spot upon announcement of winning bid as certified by Auction Committee and CoA rep. - Remaining balance is pd on succeeding biz day. Sec 11. Failed bidding. - Its declared by Auction Committee when any of ff occurs: a. theres only 1 sealed bid - the same shall not be opened b. there are 2 sealed bids but theres only 1 higher than floor price c. highest bidder fails to comply w/ payments required - said bidder is disqualified fr participating further w/o prejudice to forfeiture of cash bond and any payment made and other sanctions Sec 12. Second Bidding. - When failed bidding is declared, sale lot is offered in 2nd auction on 3rd biz day after 1st failed bidding at same floor price, w/o need for ad / posting. - In case of perishable goods, 2nd auction is on 1st biz day ff 1st bidding. Sec 13. Negotiated Sale. - In case of 2nd failed bidding, unsold lot is re-offered thru negotiated sale. Sec 14. Mandatory Reporting on Second Failed Bidding. - After 2nd failed bidding, District Collector submits report to Committee on Negotiated Sale, w/in 48 hrs. In case of perishable articles, 24 hrs a. abstract of bids per sale lot indicating floor price, name of bidders and reason for failed auction b. proof of publication c. District Collectors certification on 2 failed biddings d. if perishable, District Collectors certification to that effect e. other requirements Sec 15. Committee on Negotiated Sale. - Its composed of ff a. Charman: Deputy Commissioner, Internal Admin Grp b. Members - OCOM Rep: designated by Commissioner - DOF Rep: designated by Sec of Finance or his rep c. Head, Secretariat: recommended by Chair, Committee on Negotiated Sale - Duties & fcns of Committee: a. implement this CAO b. conduct ocular inspection of sale lots c. reject offers or part thereof and consider offers most advantageous to govt d. recommend to Sec of Finance for acceptance of offers - Duties of Secretariat: a. cause publication of Notice in at least 2 newspapers of gen circulation specifying date, place, time of inspection of lots AND date, cut-off time for submission of requirements in Sec 15. - publication is at least 5d prior to date indicated and in case of perishable articles, at least 2 calendar days. b. coordinate w/ ACDD re posting requirements c. prepare Report of Proceedings of Committee Meetings d. maintain records related to fcns / activities of Committee Sec 16. Requirements and Procedure in Negotiated Sale. a. Participant submits to Committee on Negotiated Sale the ff - sealed offer to buy, indicate sale lot & amt of offer - TIN - official receipt on payment of non-refundable reg fee - latest income / biz tax return stamped & rcvd by BIR and validated w/ payment - if regulated commodities, proof of qualification as importer / trader - other requirements b. There are no minimum prices and sealed offers must be submitted w/in period indicated in Notice. No offer is entertained after period. Sealed offers are opened in presence of CoA rep. c. Participant whose offer is most advantageous is required to pay guarantee cash deposit in amt equivalent to 20% of offer w/in 24 hrs fr receipt of notice by Committee prior to referral to Sec of Finance. Non-compliance disqualifies offeror. d. Addl 30% of offer is pd in cash / managers check w/in 48 hrs fr receipt of notice fr Committee of approval of offer by Sec. 50% balance is pd in full w/in succeeding biz day. Non-compliance causes forfeiture of deposit and any payments made w/o prejudice to other sanctions. e. When offer is rejected by Sec, guarantee cash deposit is refunded and unsold lot is re-bidded. COMPULSORY ACQUISITION CAO 5-2001 as amended by CAO 4-2004 Sec 5. Compulsory Acquisition. - To protect govt revenue against undervaluation of goods subject to ad valorem duty, Commissioner may acquire grossly undervalued goods for price equal to declared customs value + duties already pd. - Payment is made w/in 10 working days fr issuance of warrant signed by Commissioner for acquisition. - There is gross undervaluation when discrepancy between declared customs value and any of the test values is 200% or higher using ff formula = difference between test value and declared value X 100 declared value AND importer fails to explain difference. - Importer dissatisfied w/ decision of Commissioner may, w/in 20 working days after date on w/c notice is given, appeal to Sec of Finance; if still dissatisfied, to CTA. - Where no appeal is made by importer OR upon reaffirmation of Commissioners decision, BoC or agents sell acquired prop. - Right of Commissioner in this Sec is w/o prejudice to exercise of BoCs other power re disposition of goods or liability of importer or other person re offense in importation.

b. Judicial Action against the Taxpayer

Sec 2401, TCC, as amended by RA 9135 Supervision and Control Over Criminal and Civil Proceedings. - Civil & crim actions & proceedings in behalf of govt under authority of Code OR other law enforced by BoC is - brought in name of govt of Phils AND

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- is conducted by customs officers - No civil / crim action for recovery of duties OR enforcement of fine, penalty, forfeiture is filed in court w/o approval of Commissioner. Sec 2402, TCC Review by Court of Tax Appeals. - Party aggrieved by ruling of Commissioner in matter brought before him upon protest OR by his action / ruling in case of seizure may appeal to CTA. - Unless appeal is made to CTA, action / ruling of Commissioner is final & conclusive. Sec 3517, TCC Documents in Foreign Language. - Where doc in foreign language is presented to customs officer in relation to duty or power of BoC, doc in foreign language must be accompanied w/ translation in official language of this country. Sec 3518, TCC Records to be Kept by Customs. - BoC shall likewise keep record of audit results in database of importer & broker profiles, to incl but not ltd to: a. articles of incorporation b. company structure - incorporators & board of directors - key officers - org structure c. key importations d. privileges enjoyed e. penalties f. risk category/ies CAO 5-2001 as amended by CAO 4-2004 Sec 4. Recordkeeping and Compliance Audit. A. Recordkeeping 1. Importers to keep records a. Importers are required to keep at principal place of biz, for 3y fr filing of import entry, all records of imports and / or books of accts, biz and / or computer systems and other customs commercial data incl payment records for verification of accuracy of transaction value declared by importer / customs brokers on import entry. b. - Importer includes - importer of record / consignee - beneficial owner - agent of persons effecting importation - other person who knowingly causes goods to be imported - knowingly causes goods to be imported covers domestic transactions where - terms of importation are controlled by person placing the order w/ importer OR - technical data, molds, equipment, production assistance, etc are furnished by person placing the order w/ importer w/ knowledge that they will be used in manufacture / production of imptd goods 2. Records to be kept by importers a. company / entity structure, incl ff - articles of incorporation / partnership, registration certificate w/ Bureau of Domestic Trade, etc - list of incorporators, stockholders, partners, board, owner - org structure - mgmt & key personnel involved in import processing incl declarants and specimen signatures - capital composition; stock & transfer book - principals and / or subsidiaries and their capital composition - list of exporters / suppliers to w/c importer is related b. ordering / purchase documentation, incl ff - sales and related agreements, incl those covering distn, royalty, agency, warranty, etc - correspondence / communication relating to the import transaction incl purchase orders, vouchers, etc - product description / specifications incl brochures, manuals, etc c. shipping, import, export and transport documentation incl ff - import and / or export entry - invoice and / or consignment notes

c. Post entry Audit

Sec 3514, TCC Requirement to Keep Records. - Importers are required to keep at principal place of biz, in manner prescribed by regulations by Commissioner and for 3y fr date of importation, all records of importations and / or books of accts, biz & computer systems, customs commercial data incl payment records for verification of accuracy of transaction value declared by importer / customs brokers on import entry. - Brokers are required to keep at principal place of biz, in manner prescribed by regulations by Commissioner and for 3y fr date of importation copies of records of transactions they handle. Sec 3515, TCC Compliance Audit or Examination of Records. - Importers / customs brokers shall allow customs officer authorized by BoC to enter during ofc hrs any premises where records in preceding sec are kept, to conduct audit exam, inspection, verification and / or investigation either in relation to specific transactions or to adequacy & integrity of system by w/c records are created & stored. - Authorized customs officer has full & free access to books, records, docs necessary / relevant for collecting proper duties & taxes. - He may make copies of, take extracts fr such docs. - Records / docs must, as soon as practicable after copies have been taken, be returned. - Copy of doc certified by or on behalf of importer / broker is admissible in evidence in courts as if it were orig. - Authorized customs officer isnt entitled to enter premises unless, before so doing, officer produces to person occupying / apparently in charge, written evidence of fact that hes authorized. - Person occupying / apparently in charge shall provide officer w/ all reasonable facilities & assistance. - Unless otherwise provided, BoC may, in case of disobedience, invoke aid of RTC w/in whose jurisdiction matter falls. Court may punish contumacy or refusal as contempt. - The fact that importer / broker denies officer full & free access to records during post-entry audit creates presumption of inaccuracy in transaction value declared and constitutes grounds for BoC to conduct re-assesment. - This is w/o prejudice to crim & administrative sanctions against contumacious importers incl authority to hold delivery / release of imported articles. Sec 3516, TCC Scope of the Audit. - Audit of importers is undertaken: 1. when firms are selected by computer-aided risk mgmt system, parameters of w/c are to be based on objective & quantifiable data, to be approved by Sec of Finance upon recommendation of Commissioner. - Criteria include, but not limited to: a. relative magnitude of customs revenue fr firm b. rates of duties of imports c. compliance track record d. assessment of risk to revenue of import activities 2. when errors in import declaration are detected 3. when firms voluntarily request to be audited, subject to approval of Commissioner. - Brokers are audited to validate audits of importer clients and / or fill in info gaps during audit of importer clients.

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- import & export licenses / permits - ocean BL and / or master AWB, and / or house AWB and / or consolidator BL - shipping instructions, and / or freight forwarders instructions - certificates of origin and / or certificates of eligibility and / or certificate of inspection and / or loading - freight & insurance contracts - packing lists - transshipment permits and / or boatnotes and / or special permits to transfer - quota allocation and / or certificates - customs brokerage agreements, and / or billings, and / or statement of accts, and / or receipts - receipts for arrastre charges, cargo handling and storage fees - short shipped / bad order reports - goods tally records - LCs, application for LC, bank details - remittance advice - credit card transactions - telegraphic money transfers - offshore monetary transactions - evidence of payments by any other means, incl info on non-cash compensation transactions d. mfg, stock, resale documentation incl ff - inward goods register / receipts journal - stock register / inventory records - production records - costing records - sales records e. bank docs, FS and acctg info - receipts, cash books - schedules of accts payable & accts receivable - cheque records f. charts & codes of accts, ledgers, FS, acctg instruction manuals, system & program documentation g. papers, books, registers, discs, films, tapes, etc used to store info in (a) to (f) 3. Customs brokers are required to keep at principal place of biz, for 3y fr date of importation copies of importation records in whatever form covering transactions that they handle 4. BoC shall also keep record of audit results in database of importer & broker profiles, to incl but not ltd to ff a. articles of incorporation b. company structure - incorporators & board of directors - key officers - org structure c. key importations d. privileges enjoyed e. penalties f. risk category/ies 5. Where doc in foreign language is presented, doc must be w/ translation in English or Filipino, certified correct under oath by translator B. Compliance Audit 1. Importers / brokers shall allow customs officer authorized by Commissioner to enter during ofc hrs premises where records are kept to conduct exam of a. document flow b. financial flow c. goods inventory d. other biz processes 2. Customs officer may require importer / broker to make certified copies of such docs / extracts therof. 3. Copy of doc certified by or on behalf of importer / broker is admissible in evidence in all courts as if it were orig. 4. - Customs officer shall not enter premises unless, before so doing, he produces a. duplicate orig of the audit notification letter (ANL) issued by Commissioner addressed to importer / broker b. official Customs ID card - Person in charge shall provide officer w/ facilities & assistance. 5. No audit shall commence w/o issuance by Commissioner of ANL. 6. - Unless otherwise provided, BoC may, in case of disobedience, invoke aid of RTC w/in whose jurisdiction matter falls. Court may punish contumacy or refusal as contempt. - The fact that importer / broker denies officer full & free access to records during post-entry audit creates presumption of inaccuracy in transaction value declared and constitutes grounds for BoC to conduct re-assesment. 7. This is w/o prejudice to crim & administrative sanctions against contumacious importers incl authority to hold delivery / release of imported articles. C. Scope of Compliance Audit 1. Audit of importers is undertaken a. when firms are selected by computer-aided risk mgmt system, parameters of w/c are to be based on objective & quantifiable data - Criteria include, but not limited to: - relative magnitude of customs revenue fr firm - rates of duties of imports - compliance track record - assessment of risk to revenue of import activities b. when errors in import declaration are detected c. when firms voluntarily request to be audited, subject to approval of Commissioner 2. Brokers are audited to validate audits of importer clients and / or fill in info gaps during audit of importer clients. D. Conduct of Compliance Audit 1. Commissioner prepares set of compliance audit guidelines / manual, w/c includes ff procedural / operational concerns a. profiling / info analysis b. audit notification c. audit preparation / audit plan d. pre-audit conference w/ auditee e. conduct of audit proper f. exit conference g. audit reporting h. audit monitoring 2. Compliance audit depends on prevailing circumstances. It may be divided into stages or may have varying scopes. 3. Nothing is construed as restricting rights of BoC to satisfy itself as to the truth or accuracy of statement presented for customs valuation, and as necessary for collecting proper duties & taxes. CMO 2-2002 Record-keeping and Post Entry Audit Guidelines - Administrative provisions - Compliance audit is control mechanism at back-end of cargo clearance. It aims to facilitate trade by allowing release of low risk imports w/ minimum intervention. Customs can verify truth & accuracy of import entry declarations w/in 3y fr filing of import entry. - Rationale behind record-keeping requirement: to enable fast releases at border, importers & brokers shall assure customs that their entry declarations are in accordance w/ law, rules, regulations - Importer includes a. importer of record / consignee b. beneficial / real owner as established by evidence c. agent of those effecting importation d. those who knowingly cause importation - knowingly causes goods to be imported covers domestic transactions where: 1. terms of importation are controlled by person placing order & not by importer / consignee of record 2. technical data, molds, equipment, production assistance, materials, components, parts are furnished by

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knowledge that theyll be used in manufacture of goods to be imported - Compliance audit undertaken when: a. firms are selected by computer-aided risk mgmt system b. errors in import declaration are detected w/c if uncorrected, would result in substantial revenue loss or distortion of statistics c. firms volunteer, approved by Commissioner - Brokers are audited only to a. validate audits of importer clients AND/OR b. fill in info gaps revealed during audit of importer clients - Importer / broker shall allow customs officer authorized by Commissioner to enter during ofc hrs any premises where records are kept to audit a. document flow b. financial flow c. goods inventory flow d. other biz processes - Customs officer may require importer / broker to make certified copies of docs / extracts. Record taken must be returned to custodian w/in 24 working hrs. Copies are admissible in evidence as orig. - BoC, in disobedience, may invoke aid of RTC. Court may punish contumacy / refusal as contempt. Denial of access creates presumption of inaccuracy and constitutes grounds for re-assessment, w/o prejudice to other crim / administrative sanctions. - Docs in foreign language must be w/ translation in English / Filipino, certified correct under oath by translator. - Records required to be kept - By importer, at principal place of biz, for 3y fr filing of entry: all importation records and / or books of accts, biz / computer systems and customs commercial data 1. company structure; those submitted to SEC or Bureau of Domestic Trade 2. ordering & purchase documentation 3. shipping, import, export and transport docs 4. mfg, stock & resale docs 5. banking & acctg info 6. BIR requirements 7. storage media of above info - By broker, at principal place of biz, for 3y fr importation: importation records incl requirements (3), (6), (7) fr importer - Compliance audit operations - Pending creation of Post entry audit office (PEAO), audit is handled by interim Post Entry Audit Unit (PEAU). - Selecting firms for audit using a risk mgmt approach 1. voluntary under Compliance Program to make compliant those firms contributing up to 80% of customs revenue - focus to determine whether systems & procedures generate compliant customs declarations - results in risk rating most compliant receives lowest risk rating; most compliant firms are given SGL treatment w/ other benefits 2. enforced conducted on firms not incl in compliance program and found to have compliance issues; firms are chosen fr among those tagged for audit a. by Collectors, as result of VCRC review b. by TIRAU, as result of analysis of ACOS database c. as result of enforcement operations - Profiling and Information Analysis 1. downloading data on target importer & collating info 2. profiling companys activities 3. identifying risk shipments 4. sampling of exception reports accdg to nature of variances 5. reviewing of past BoC decisions 6. preparing report for Commissioner for basis to grant authority for field audit - Audit Notification - Upon approval of Commissioner, Audit Notification Letter (ANL) is sent to company, stating: 1. basis & purpose of audit 2. date & time of pre-audit conference & audit 3. members of customs audit team 4. docs / records to be readied 5. request for tour / walkthrough 6. attachments: general customs questionnaire, form requiring description of processes in import purchasing & inventory systems (to be sent back prior to pre-audit conference) - Audit Preparation / Audit plan - PEAU makes general audit plan, aiming at 1. getting info on goods flow, financial flow, order process flow & tracing, testing of sample entries 2. validating completeness & correctness of info - Pre-Audit Conference with Auditee Audit team introduces themselves and presents authority. Audit team briefs company. Conference includes factory / ofc tour as requested by BoC. - Conduct of Audit Proper Field Audit 1. It involves exam of records & docs based on plan. It also includes interview of personnel. 2. Extent depends on nature of operations & level of reliance on internal controls of company relative to storage & retrieval of info needed. 3. It aims to verify valuation method, values, description / classification, quantity, country of origin, special rates if qualified. 4. Brokers may be examined to validate audit findings. 5. Auditee must assist team. Team must complete task w/o unnecessary disruption of operation. PEAU, as approved by Commissioner, draws up audit manual to serve as guidelines. - Exit Conference Before final report, ff are discussed by auditors & auditee 1. audit findings 2. areas identified for improvement 3. calculation of underpayment, penalties 4. other comments - Audit Reporting - PEAU prepares Final Audit Report & Recommendation (FARR) submitted to Commissioner. - Upon approval, auditee is furnished copy. - Audit Monitoring & Implementation 1. PEAU maintains audit reports, records, communication. 2. PEAU develops internal audit system to ensure completion of audit on time and implementation of recommendations. - Administrative fines and penalties - Failure to keep records 1. administrative fine, 20% a.v. on articles w/ no records 2. hold delivery / release of subsequent imptd articles to answer for fine 3. criminal prosecution - Failure and / or refusal to give full & free access 1. punishment for contempt, contumacy or refusal fr court 2. reassessment of importations 3. administrative fine, 20% a.v. on articles w/ no records 4. hold delivery / release of subsequent imptd articles to answer for fine 5. criminal prosecution - Failure to pay correct duties & taxes on imptd goods 1. Negligence - administrative fine, not < 1/2 but not > 2X revenue loss 2. Gross negligence - administrative fine, not < 2 1/2 but not > 4X revenue loss 3. Fraud - administrative fine, not < 5X but not > 8X revenue loss 4. Criminal prosecution 5. Except in fraud, Commissioner may, w/ approval of Sec of Finance, exercise power to compromise

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imposition of fine when importer makes voluntary & full disclosure of deficiency prior to commencement of audit on date fixed by Commissioner. PROTEST CASES CMO 3-2002 Procedure in Protest Cases Against Determination of Customs Value and Tariff Classification - Collector of Customs 1. Upon final determination of customs value / tariff classification by VCRC, importer adversely affected may file formal protest w/ Collector thru Law Division to dispute assessment at time when payment of amt claimed to be due the govt is made and / or upon receipt of notice of decision of VCRC by importer, or w/in 15d thereafter. 2. Importer states in formal protest the reasons, and pays docket fee. 3. Collector forms panel to hear case. Panel is composed of - hearing officer fr Law Division - COO V - COO III 4. Collector ensures that those involved in initial assessment arent members of panel. 5. Panel hears parties. Its authorized to issue notice of hearings, subpoenas, interlocutory orders, and to rcv evidence. 6. Panel shall, w/in 30d fr 1st hearing, terminate proceedings and recommend thru Chief, Law Division a decision to Collector for approval. 7. If for meritorious reason, protest cant be resolved w/in 30d, panel requests Collector for addl time not exceeding 30d w/in w/c to resolve. 8. Collector renders final decision w/in 15d fr receipt of recommended decision and notifies importer in writing. 9. If Collector renders decision adverse to govt, decision & records are automatically elevated to Commissioner for auto-rvw w/in 5d fr promulgation. 10. If importer isnt satisfied w/ Collectors decision, he may, w/in 15d after notification in writing by Collector of his action / decision, file notice of appeal w/ Collector w/ copy furnished the Commissioner. 11. Collector shall immediately transmit all records to Commissioner who shall - approve, modify, OR reverse AND - take steps, make orders to give effect to decision - Commissioner of Customs 12. Appeal to Commissioner is perfected upon a. filing of notice of appeal b. payment of appeal docket fee c. memorandum of appeal at option of appellant w/in 15d fr receipt of notice of decision 13. Appeal, regular of auto-rvw, is deliberated on by permanent board of 3 created by Commissioner. Board is chaired by lawyer fr Appellate Division, Legal Service AND 2 valuation experts fr Import & Assessment Service, as members who fill up the positions on rotation basis. 14. Board recommends decision to Commissioner. 15. Commissioner renders decision w/in 30d fr receipt of records fr Collector and notifies appellant or aggrieved in writing. 16. If w/in 30d fr receipt of record no decision by Commissioner is rendered, Commissioner is deemed to uphold Collectors decision. If adverse to govt, case is elevated to Sec of Finance for auto-rvw. 17. If Commissioner decides in favor of govt and no appeal is perfected w/in reglementary period w/ CTA, decision of Commissioner becomes final & executory. - Secretary of Finance 18. If Commissioner renders decision adverse to govt, its elevated to Sec of Finance for auto-rvw; records are fwded w/in 5d fr promulgation. 19. If w/in 30d fr receipt of records by Sec of Finance, no decision is rendered, decision under rwv is final & executory. 20. Decision of Sec of Finance is final & executory, if no appeal is perfected w/in period provided. - Court of Tax Appeals 21. If importer isnt satisfied by decision of Commissioner or Sec of Finance, he may file appeal w/ CTA, w/in 30d fr receipt of notice of decision.

d. Jurisdiction of the Collector of Customs over Imporation of Articles

Sec 1206, TCC Jurisdiction of Collector Over Importation of Articles. - Collector shall a. cause articles entering jurisdiction of district & destined for importation thru his port to be entered at customhouse b. cause articles to be appraised & classified c. assess & collect duties, taxes, other charges d. hold possession of imptd articles upon w/c duties, taxes, other charges havent been pd or secured to be pd, disposing of same accdg to law. Sec 1207, TCC Jurisdiction of Collector Over Articles of Prohibited Importation, - Where articles are of prohibited importation OR subject to importation only upon conditions prescribed, it is duty of Collector to exercise jurisdiction to prevent importation OR secure compliance w/ legal requirements. Jao v. CA - RTCs are devoid of competence to pass upon validity / regularity of seizure & forfeiture proceedings by BoC and to enjoin / interfere w/ these proceedings. - Collector, sitting in seizure & forfeiture proceedings has exclusive jurisdiction to hear and determine all questions on seizure / forfeiture. RTCs are precluded fr assuming cognizance over such matters even thru petitions of certiorari, prohibition or mandamus. - Actions of Collector are appealable to Commissioner, whose decision is subject to exclusive appellate jurisdiction of CTA and from there to CA*. - Even if seizure by Collector were illegal, such act doesnt deprive BoC of jurisdiction. * Under RA 1125 as amended by RA 3457 and 9282, CTA is now of the same level as CA. Ponce Enrile v. Vinuya - The matter of seizure & forfeiture is the exclusive concern of Collector, a CFI lacking power in the premises. - Collectors decision is appealable to Commissioner whose decision is appealable to CTA. Aggrieved party may appeal fr judgment of CTA to SC. - On grounds of public policy, legislators intended to divest CFI of prerogative to replevin prop w/c is subject of seizure & forfeiture proceedings for violation of TCC. Otherwise, actions for forfeiture could easily be undermined. Asian Terminals Inc v. Ricafort - Collector sitting in seizure & forfeiture proceedings had the exclusive jurisdiction to hear & determine all questions relating on seizure & forfeiture. RTC had no review powers over such proceedings; its the CTA. - Cited Jao v. CA - Forfeiture of seized goods in BoC is a proceeding against the goods and not against the owner. Its in the nature of a proceeding in rem, directed against the res or imptd articles and entails determination of the legality of their importation. It is, in legal contemplation, the prop itself w/c commits the violation and is treated as the offender, w/o reference whatsoever to the character / conduct of the owner. BOAC v. People - There is no conflict between Tariff and Customs Code and RA 6975, where regular PNP members are generally empowered to effect arrests. Jurisdiction of Commissioner is clearly w/ regard to customs duties. Should PNP suspect anything, it shld coordinate w/ BoC and obtain written authority fr Collector in order to conduct searches, seizures and arrests.

Remedies Available to the Taxpayer a. Administrative Remedies

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SEIZURE / FORFEITURE CASES Sec 2530, TCC Property Subject to Forfeiture Under Tariff and Customs Laws. - Vehicle, vessel, aircraft, cargo, article shall, under ff conditions be subjected to forfeiture: a. vehicle, vessel, aircraft, cargo used unlawfully in import / export OR in conveying and / or transporting contraband / smuggled articles in commercial quantities into or fr Phils - Mere carrying / holding on board of contraband / smuggled articles in commercial quantities means forfeiture provided that the vessel / aircraft isnt used as common carrier & as such carrier it isnt chartered / leased. b. vessel engaging in coastwise, w/c has on board any article of foreign growth in excess of amt necessary for sea stores, w/o such article having been properly entered / imported c. vessel / aircraft into w/c shall be transferred cargo unladen contrary to law prior to arrival of importing vessel / aircraft at port of destination d. cargo, stores, supplies of vessel / aircraft fr foreign port, unladen before arrival at port of destination w/o authority fr customs officials, except if unlading was - due to accident, stress of weather, other necessity AND - subsequently approved by Collector e. article fraudulently concealed or removed contrary to law fr warehouse, container yard, container freight station under customs supervision f. - article the importation / exportation of w/c is effected / attempted contrary to law - article of prohibited importation / exportation - articles w/c, in opinion of Collector, were used or entered to be used as instruments in importation / exportation of former g. unmanifested article on vessel / aircraft if manifest is required h. sea stores / aircraft stores adjudged by Collector to be excessive, when duties assessed by Collector arent pd or secured upon assessment i. package of imptd article found by examining official to contain article not specified in invoice / entry, incl other packages purportedly containing imptd articles similar to those declared in invoice or entry to be the contents of misdeclared package provided, Collector is of opinion that misdeclaration was contrary to law j. containers used as receptacle / device to conceal article w/c is itself subject to forfeiture or w/c is designed to conceal character of such articles k. conveyance used for transport of articles subject to forfeiture, w/ its equipage / trappings - Mere conveyance of contraband / smuggled articles by beast / vehicle is sufficient cause for outright seizure & confiscation of beast / vehicle but forfeiture isnt effected if owner of means of conveyance is engaged as common carrier and not chartered / leased, or his agent in charge thereof at the time, has no knowledge of the unlawful act. l. article sought to be imported / exported 1. w/o going thru customhouse, whether act was consummated, frustrated, attempted 2. failure to mention to customs official, articles found in baggage of person arriving fr abroad 3. on strength of false declaration / affidavit executed by owner, importer, exporter, consignee 4. on strength of false invoice / other doc executed by owner, importer, exporter, consignee 5. thru any other practice contrary to law by w/c articles was entered thru customhouse to the prejudice of govt. Sec 2531, TCC Properties Not Subject to Forfeiture in the Absence of Prima Facie Evidence. - Forfeiture isnt effected if its established that owner / agent in charge of means of conveyance used has no knowledge of or participation in unlawful act. - Prima facie presumption exists against vessel, vehicle, aircraft under ff circumstances 1. conveyance was used for smuggling at least 2X before 2. owner isnt in biz for w/c conveyance is generally used 3. owner isnt financially in position to own such conveyance Sec 2532, TCC Conditions Affecting Forfeiture of Article. - As regards article/s whereof importation / exportation is merely attempted, forfeiture is effected only when & while article is in custody / jurisdiction of customs authorities OR subject to control of importer, exporter, orig owner, consignee, agent of person effecting importation / exportation OR subject to control of persons who shall rcv, conceal, buy, sell, transport the same or aid in such acts, w/ knowledge that article was imptd, or was subject of attempt at import / export contrary to law. Sec 2533, TCC Enforcement of Lien, Administrative Fines, and Forfeitures. - Administrative fines & forfeitures are enforced by - seizure of vehicle, vessel, aircraft, prop subject to fine / forfeiture AND - subsequent proceedings - For enforcing lien for customs duties, fees, charges on seized / confiscated article in custody of BIR, BIR is authorized to impose & enforce said lien. Sec 2534, TCC Seizure of Vessel or Aircraft for Delinquency of Owner or Officer. - When owner or responsible officer of vessel / aircraft becomes liable to be fined under tariff & customs laws on account of delinquency in discharge of duty, the vessel / aircraft itself may be seized & subjected in admin proceeding for satisfaction of fine for w/c person wouldve been liable. Sec 2535, TCC Burden of Proof in Seizure and/or Forfeiture. - In proceedings for seizure and / or forfeiture, burden of proof lies upon claimant, provided probable cause shall be first shown for institution of proceedings AND seizure and / or forfeiture was made under circumstances in this Code. Sec 2536, TCC Seizure of Other Articles. - Commissioner of Customs and Collector and / or any other customs officer w/ prior authorization in writing by Commissioner, may demand evidence of payment of duties & taxes on foreign articles openly offered for sale or kept in storage. - If no such evidence is produced, such articles may be seized & subjected to forfeiture proceedings. - During such proceedings, person / entity for whom articles have been seized is given opportunity to prove source of articles & payment of duties & taxes. CAO 9-93 RULES & REGULATIONS GOVERNING ISSUANCE OF WARRANTS OF SEIZURE & DETENTION, THE CONDUCT OF SEIZURE PROCEEDINGS AND PROCEDURE IN APPEALS TO THE COMMISSIONER OF CUSTOMS AND TO THE SECRERARY OF FINANCE - General Provisions - Collector, upon making seizure, issues warrant for detention of prop. - If owner / importer desires to secure release of prop for legit use, Collector surrenders it upon filing of cash bond in amt fixed by Collector subject to ff conditions a. cash bond shall not be < appraised value of article + fine, expenses, costs b. no prima facie evidence of fraud c. importation isnt prohibited by law d. release under bond was approved by Commissioner - Release of prop under bond doesnt relieve owner / importer fr crim liability.

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- Grounds for Issuance of WSD Proceedings Before Hearing Officers - Upon probable cause that articles were impt / attempted to be exported contrary to tariff & customs laws, Collector issues Warrant of Seizure and Detention. - In formal hearing, uncontroverted facts are stipulated on & issues are agreed upon. Determination is made WON theres violation of law fr facts & evidence presented. District Collector renders decision. - Review by the Commissioner - Party aggrieved by decision / action of Collector may w/in 15d after receipt of notice in writing of action / decision of Collector, file written notice to Collector, cc Commissioner of intent to appeal. - Upon perfection of appeal, Collector transmits records to Commissioner. - Appeal filed beyond 15d is dismissed. - Commissioner approves, modifies, reverses Collector. - Any action of Collector adverse to govt is automatically rvwd by Commissioner. Records are elevated w/in 5d fr promulgation of decision of Collector. Fr receipt of records, Commissioner renders decision on auto-rvw w/in 30d. - Decision of Commissioner reversing adverse decision of Collector on auto-rvw is final & executory. - If Commissioner affirms adverse decision of Collector, records are elevated to Sec of Finance w/in 5d fr promulgation. - If Commissioner fails to render decision w/in 30d fr receipt of records the case is deemed automatically appealed to Sec of Finance. Records are elevated w/in 5d after lapse of 30d rvw period. - If adverse decision of Collector is affirmed by Sec of Finance, affirmed decision becomes final. - If value of article is P5M or more, adverse decision of Collector is deemed automatically appealed to Sec of Finance. If w/in 30d no decision is rendered, Commissioners or Collectors decision becomes final & executory. Pacis v. Pamaran Except in the case of the search of a dwelling house, persons exercising police authority under the customs law may effect search & seizure w/o search warrant in enforcement of customs laws. REVIEW OF PROTEST / SEIZURE CASES BY THE COMMISSIONER OF CUSTOMS / SECRETARY OF FINANCE REVIEW UPON REQUEST OF TAXPAYER Sec 2309 and 2313, TCC, supra AUTOMATIC REVIEW BY THE COMMISSIONER AND THE SECRETARY OF FINANCE Sec 2309 and 2313, TCC, supra Correction of Errors. - Refund of Excess Payments. - Manifest clerical errors made in invoice or entry, errors in return of wt, measure & gauge, when duly certified to, under penalties of falsification / perjury, by surveyor or examining official AND errors in distn of charges on invoices not involving any question of law & certified to, under penalties of falsification / perjury, by examining official, may be corrected in computation of duties, if errors be discovered before payments of duties OR if discovered w/in 1y after final liquidation, upon written request & notice of error fr importer OR upon statement of error certified by Collector. - For purpose of correcting errors, Collector is authorized to reliquidate entries & collect addl charges, or make refunds on statement of errors w/in statutory time limit. Sec 1708, TCC, supra Claim for Refund of Duties and Taxes and Mode of Payment. - All claims for refund of duties are made in writing AND forwarded to Collector to whom duties are pd, who upon receipt of claim, shall verify the same, and if found to be correct and in accordance w/ law, shall certify the same to Commissioner w/ recommendation & all necessary papers. - Upon receipt by Commissioner of certified claim he shall cause the same to be pd if correct. - If as result of refund of customs duties there would necessarily result corresponding refund of internal revenue taxes, Collector shall likewise certify the same to Commissioner who shall cause taxes to be pd, refunded, or tax credited in favor of importer, w/ advice to Commissioner of Internal Revenue.

b. Judicial Remedies
SUPERVISION AND CONTROL OVER JUDICIAL PROCEEDINGS Sec 2401, TCC, supra REVIEW BY THE CTA Sec 2402, TCC, supra Sec 2315, TCC, supra Sec 7, RA 1125 as amended by RA 9282 * Refer to NIRC Remedies. APPEAL FROM THE CTA DIVISION TO CTA EN BANC APPEAL TO THE SC

Claim for Refund

Sec 1707, TCC, supra

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