TITLE IV

IMPORT CLEARANCE AND FORMALITIES

CHAPTER 1
GOODS DECLARATION
SEC. 400. Goods to be Imported throu
gh Customs Office. - All goods impor
ted into the Philippines shall be en
tered through a customs office at a
port of entry, or may be admitted to
or removed from a free zone as defin
ed in this Act, as the case may be.

2
WHAT IS ENTRY?

Entry
Refers to act, documentation, and process of
bringing imported goods into the customs terri
tory, including goods coming from free zones
TRIPLE MEANING OF ENTRY

The word “ENTRY” in Customs Law ha

s three meaning:
1. The documents filed at customhouse
2. The submission and acceptance of said d
ocuments; and
3. The procedure of passing goods from a
customhouse
FORMAL CONSUMPTION ENTRY
Documents Required (CMO 5-2012, C
MO 5-2012A, CMO 29-2015):
1. SAD Print-out (Front and Bank Page, 2 c
opies) Sec. 2a, CMO 29-2015
2. Temporary Assessment Notice Print Out
from e2m Customs System lodged thru
VASP (Sec. 5.1 2b, CMO 5-2012)
3. Processing Report Form (Entry Routing S
lip, Sec. 5.1.2g, CMO 5-2012)
4. Bill of Lading/Airway Bill (Sec. 5.1.2d, C
MO 5-2012)
5. Commercial Invoice (Sec. 5.1.2e, CMO
5-2012)
6. Packing List (Sec. 5.1.2f, CMO 5-2012)
FORMAL CONSUMPTION ENTRY
Documents Required (CMO 5-2012, CMO 5-2012A, C
MO 29-2015):
7. Other documents required, if applicable (Secs. 5.1.2h-k,
CMO 5-2012)
a. Permits/Clearances issued by respective Government Agenc
y, if regulated/restricted
b. Tax Exemption Certificate (TEC) issued by DOF-ROG, for du
ty and tax free
c. Authority to Release Imported Goods (ATRIG) issued by BI
R for Excise Tax or VAT-Exempt purposes
d. Certificate of Origin, for shipments availing preferential tarif
f rates under specific Free Trade Agreements
e. Tax Clearance Certificate (TCC)/Tax Demit Memo (TDM)
f. IED-SAD for shipments under L/C with Advance Duty Depo
sits
g. Original Certification issued by Surety Company and Official
Receipt for shipments with Domestic/Local Insurance
INFORMAL ENTRY
Documents Required:
1.Informal Import Declaration and Entry
(IIDE, BC Form 177)
2.Permit to Deliver Imported Goods (PDI
G BC Form 194, if by Sea) or Gate Pass (i
f by Air)
3.Bill of Lading/Airway Bill of Lading
4.Commercial Invoice
5.Packing List
6.Other documents required (Permits/Cle
arances, Tax Exemption Certificates issue
d by DOF, Certificate of Guarantee issued
by DFA, etc.)
DOCUMENTARY REQUIREMENTS FOR CU
STOMS TRANSIT
1.SAD Printout with TAN (Note: Model Declarati
on for Transit to CBW – 8PP 8 while Transit to P
EZA/Freeports – 8ZN 8
2.Bill of Lading/AWB
3.Commercial Invoice
4.Packing List
5.General Transportation Surety Bond (GTSB)
6.Approved Electronic Import Permit (EIP-PEZA)
/Approved Electronic Transit Admission Permit
(ETAP-SBMA/CDC/AFAB)
7.Other documentary requirements (permits/cle
arances, transit cargo manifest, carrier’s bond,
etc.)
CUSTOMS TRANSSHIPMENT
Documentary Requirements for Custom
s Transshipment
1. Transshipment Permit (BC FORM 199)
2. Bill of Lading
3. Commercial Invoice
4. Packing List
5. Inward Foreign Manifest
6. Other documents required
CONCEPT OF GOODS
Goods
Refer to articles, wares, merchandise and an
y other items which are subject of importation
and exportation
It encompasses all tangible and movable pro
perties known to mankind excluding immovabl
es. It likewise includes all movables regardles
s of its composition (solid, liquid, gas)
CONCEPT OF GOODS
Properties Not Considered as Goods:
Human beings (RA 10364 – Expanded Anti-Traffickin
g in Persons Act of 2012):
Trafficking in Persons refers to the recruitment, obtaining, hirin
g, providing, offering, transportation, transfer, maintaining, harb
oring, or receipt of persons with or without the victim’s consent o
r knowledge, within or across national borders by means of threa
t, or use of force, or other forms of coercion, abduction, fraud, d
eception, abuse of power or of position, taking advantage of the
vulnerability of the person, or, the giving or receiving of payment
s or benefits to achieve the consent of a person having control o
ver another person for the purpose of exploitation or the prostitu
tion of others or other forms of sexual exploitation, forced labor
or services, slavery, servitude or the removal or sale of organs.

NOTE: ONCE DEAD, A PERSON IS CONSIDERED GO

ODS
CONCEPT OF GOODS
Properties Not Considered as Goods:
Forces of Nature (i.e, Electricity, Sunlight,
Wi
nd) except devices for its production and stora
ge (electric cables, solar panels, wind turbine
s)
Note: Gases are considered goods

Money
As long as used as legal tender of a certain country a
s means to settle all debts and obligations in a specifi
ed territory. If the intention is to put it out of circulati
on, it shall be deemed as a commodity.
Note: If within threshold amount P50,000.00 or $10,
000, it is freely exportable/importable, otherwise, mon
ey requires prior authorization from BSP prior to expor
tation/importation
SEC. 401. Importations Subject to Go
ods Declaration. - Unless otherwise
provided for in this Act, all import
ed goods shall be subject to the lod
gment of a goods declaration. A good
s declaration may be for consumptio
n, for customs bonded warehousing, f
or admission, for conditional import
ation, or for customs transit.

13
BASIC CONCEPTS

Goods declaration for CONSUMPTION

may be entered under the two existing p
rocedures:
Formal Entry Process
Informal Entry Process

(Sec. 402)
SEC. 402. Goods Declaration for Consumpti
on. - All goods declaration for consumpti
on shall be cleared through a formal entr
y process except for the following goods
which shall be cleared through an informa
l entry process:
(a) Goods of a commercial nature with f
ree on board (FOB) or free carrier at (FC
A) value of less than Fifty Thousand Peso
s (P50,OOO.OO); and
(b) Personal and household effects or g
oods, not in commercial quantity, importe
d in a passenger's baggage or mail.
15
FORMAL CONSUMPTION ENTRY
What are the goods subject of goods declarat
ion for consumption under Formal Entry Proces
s?
All goods of commercial nature with FOB/FCA value of
P50,000 or more, whether taxable or exempted
All goods not eligible for exemption under Sec. 800 of
CMTA (such as vehicles, machineries, vessels, aircraft)
even though personally owned by the qualified individu
al
All goods belonging to qualified persons imported in co
mmercial quantities or in excess of duty/tax exempt or
de minimis amount
Government importations, whether taxable or exempte
d
INFORMAL ENTRY
Goods subject to Informal Entry Process:
1.Personal and Household Effects of Returning
Residents/Balikbayan and Dual Citizens on Sing
le Consignment
2.Consolidated Balikbayan Boxes of OFWs
3.Shipments of Foreign Embassies, legations an
d International Organizations accorded Diplom
atic Status
4.Donated Shipments imported not in state of c
alamity
5.De Minimis importations
6.Commercial goods with FOB/FCA value below
Php50,000.00
 The Commissioner may adjust the value
of goods of commercial nature that shal
l be cleared through an informal entry
process without pejudice to the periodi
c adjustment period in subparagraph (a)
of this section.
All importations entered through a form
al entry process shall be covered by a
letter of credit or any verifiable comm
ercial document evidencing payment or i
n cases where there is no sale for expo
rt, by any commercial document indicati
ng the commercial value of the goods.
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SEC. 403. Provisional Goods Declaration. - Where the declar
ant does not have all the information or supporting documen
ts required to complete the goods declaration, the lodging
of a provisional goods declaration may be allowed:
Provided, that it substantially contains the necessary info
rmation required by the Bureau and the declarant undertakes
to complete the information or submit the supporting docume
nts within forty-five (45) days from the filing of the prov
isional goods declaration, which period may be extended by
the bureau for another forty-five (45) days for valid reaso
ns.
If the Bureau accepts a provisional goods declaration,
the duty treatment of the goods shall not be different from
that of goods with complete declaration.
Goods under a provisional goods declaration may be rele
ased upon posting of any security required equivalent to th
e amount that is disputed to ensure collection of applicabl
e duties and taxes.
SEC. 404. Owner of Imported Goods.
- All goods imported into the Phil
ippines shall be deemed to be the
property of the consignee or the h
older of the bill of lading, airwa
y bill or other equivalent transpo
rt document if duly endorsed by th
e consignee therein, or, if consig
ned to order, duly endorsed by the
consignor. The underwriters of aba
ndoned goods and the salvors of go
ods saved from wreck at sea, coas
t, or any area of the Philippines,
may be regarded as the consignees.
SEC. 405. Liability of Importer for Dut
ies and Taxes. - Unless relieved by law
s or regulations, the liability for dut
ies, taxes, fees, and other charges att
ached to importation constitutes a pers
onal debt due and demandable against th
e importer in favor of the government a
nd shall be discharged only upon paymen
t of duties, taxes, fees, and other cha
rges.

It also constitutes a lien on the impor

ted goods which may be enforced while s
uch goods are under customs' custody.
SEC. 406. Importations by the Gov
ernment. - Except those provided
for in Section 800 of this Act, a
ll importations by the government
for its own use or that of its su
bordinate branches or instrumenta
lities, or corporations, agencies
or instrumentalities owned or con
trolled by the government shall b
e subject to the duties, taxes, f
ees, and other charges under this
Act.
SEC. 407. Goods Declaration and Period of Filing. - As far
as practicable, the format of the goods declaration shall
conform with international standards.
The data required in the goods declaration shall be limite
d to such particulars that are deemed necessary for the as
sessment and collection of duties and taxes, the compilati
on of statistics and compliance with this Act.
The Bureau shall require the electronic lodgment of the go
ods declaration.
The Bureau shall only require supporting documents necessa
ry for customs control to ensure that all requirements of
the law have been complied with.
Translation of supporting documents shall not be required
except when necessary.
Goods declaration must be lodged within fifteen (15) days
from the date of discharge of the last package from the ve
ssel or aircraft.
The period to file the goods declaration may, upon reques
t, be extended on valid grounds for another fifteen (15) d
ays:
Provided, That the request is made before the expiration o
f the original period within which to file the goods decla
ration:
Provided, however, that the period of the lodgement of the
SEC. 408. Lodgement and Amendment Goods
Declaration. - The Bureau shall permit t
he electronic lodging of the goods decla
ration at any designated customs office.

The Bureau shall, for valid reason and u

nder terms and conditions provided by re
gulation, permit the declarant to amend
the goods declaration that has already b
een lodged:

Provided, that the request to amend the

goods declaration, together with the int
ended amendments, must be received prior
to final assessment or examination of th
e goods.
 Goods Declaration Lodgement Procedure Under E2m
Customs System
1. CB lodges goods declaration thru VASP
2. VASP
1. captures data
2. validate data
3. converts data to XML format
4. sends to e2m thru VASP gateway
3. As soon e2m receives declaration Selectivity
is triggered/

What is the significance of triggering selectivi

ty?
SEC. 409. Advance Lodgement and Cl
earance. - The Bureau may provide
for the lodgement and clearance of
goods declaration and supporting d
ocuments prior to the arrival of t
he goods under such terms and cond
itions as may be provided by rules
and regulations to be promulgated
under this Act.
SEC. 410. Entry of Goods in Part fo
r Consumption and in Part for Wareh
ousing. - Goods declaration covered
by one bill of lading or airway bil
l over goods which are meant in par
t for consumption and in part for w
arehousing may be both entered simu
ltaneously for release at the port
of entry.
SEC. 411. Contents of Goods Declara
tion.- Goods declarations shall con
tain the names of the consignee, im
porting vessel or aircraft, port of
departure, port of destination and
date of arrival, the number and mar
ks of packages, or the quantity, if
in bulk, the nature and correct com
modity description of the goods con
tained therein, its value as set fo
rth in a proper invoice, and such o
ther information as may be required
by rules and regulation.
Where the declarant does not have
all the information required to mak
e the goods declaration, a provisio
nal or incomplete goods declaration
shall, for certain cases and for re
asons deemed valid by the Bureau, b
e allowed to be lodged:
Provided, that it contains the par
ticulars deemed necessary by the Bu
reau for the acceptance of the entr
y filed and that the declarant unde
rtakes to complete it within forty
five (45) days from the filing of t
he provisional goods declaration in
accordance with Section 403 of this
Act.
SEC. 412. Statements to be Provided in the Good
s Declaration. No entry of imported goods shall
be allowed unless the goods declaration has bee
n lodged with the Bureau. The goods declaration
shall, under penalties of falsification or perj
ury, contain the following statements:
(a) The invoice and goods declaration contai
n an accurate and faithful account of the price
s paid or payable for the goods, and other adju
stments to the price actually paid or payable,
and that nothing has been omitted therefrom or
concealed whereby the government of the Republi
c of the Philippines might be defrauded of any
part of the duties and taxes lawfully due on th
e goods; and
 (b) To the best of the declarant's informati
on and belief, all the invoices and bills of la
ding or airway bills relating to the goods are
the only ones in existence relating to the impo
rtation in question, band that these documents
are in the same state as when they were receive
d by the declarant, and the declaration thereon
are in all respects genuine and true.

(c) Goods declaration shall be submitted ele

ctronically pursuant to Republic Act No. 8792 o
therwise known as the Electronic Commerce Act o
f 2000. Such declarations when printed and cert
ified by a competent customs officer as a faith
ful reproduction of the electronic submission s
hall be considered as actionable documents for
purposes of prosecuting a declarant if the decl
arations are found to be fraudulent.
SEC. 413. Description of Goods. - Under such te
rms and conditions prescribed under the rules a
nd regulations, the description of the goods in
the goods declaration must be sufficient and sp
ecific in detail to enable the goods to be iden
tified for valuation, statistical purposes, to
be classified to the appropriate tariff heading
and subheading in the currency of the invoice,
and in such other particulars necessary for the
proper assessment and collection of duties and
taxes.
The quantity and values of each of the several
classes of goods shall be separately declared a
ccording to their respective headings or subhea
dings and the totals of each heading or subhead
ing shall be duly shown.
FORMAL CONSUMPTION ENTRY
Specific Description of Goods (CAO 8-2007/CMO 28-200
7)
 Description of articles should be in sufficient detail to enable th
e articles to be identified for tariff classification, valuation, and
other statistical purposes including the following
d. Model/Style – the model number, style, reference, and other re
ference (CRV 2007 for Honda Civic car, Thinkpad 3000 for a Le
novo notebook, model E90 for Nokia cellphone)
e. Capacity/Quality/Grade/Process – the capacity output or their i
ndication of size and performance among other, of a product
(200hp, 100kw) or the description of quality, grade specificatio
n or applicable standard (technical grade 95%, JIS G 310, 1/87
SS41) or process by which the product is manufacture (suspen
sion, emulsion, dispersion)
f. Retail packaging – this pertains to the details packaging or me
asure within the unit used (12x1 L bottles, 150k bags, 24x300o
z cans)
FORMAL CONSUMPTION ENTRY
What will be the effect for failure to d
eclare specific description? (CAO 8-200
7/CMO 28-2007)
 Subject to 100% physical examination
 May be subject to seizure and forfeiture
proceedings, if proven upon examinatio
n as to the concealed goods by declarin
g a generic description
SEC. 414. Commercial and Non-commercial Invoice. - Comme
rcial invoice of imported goods shall contain the follow
ing:
(a) the agreed price paid or to be paid for the good
s;
(b) the adjustments to the price paid or to be paid
as defined in Section 701 (1) of this Act, if not yet in
cluded in the invoice;
(c) the names of the buyer, seller, and the time and
place of sale;
(d) the port of entry;
(e) a sufficient description to enable the accurate
identification of goods for tariff classification, custo
ms valuation, and statistical purposes, indicating the c
orrect commodity description, in customary term or comme
rcial designation, the grade or quality, numbers, marks
or symbols under which they are sold by the seller or ma
nufacturer, together with the marks and number of packag
es in which the goods are packed;
 (f) the quantities in the weights or m
easures of the goods shipped; and
(g) any other fact deemed necessary fo
r the proper examination, customs valuat
ion, and tariff classification of the go
ods as may be prescribed by rules and re
gulation
To the extent possible, the above requ
irements shall also apply to goods impor
ted not covered by sale, such as goods o
n consignment or lease, samples, or dona
tions, covered by a consignment, pro-for
ma invoice, or other non commercial invo
ice.
SEC. 415. Mode of Payment and Terms of T
rade. - Subject to existing laws and rul
es on foreign currency exchange. the int
ernationally accepted standards and prac
tices on the mode of payment or remittan
ce covering import and export transactio
ns, including standards developed by int
ernational trading bodies such as the In
ternational Chamber of Commerce (ICC) on
trading terms (incoterms) and on interna
tional letters of credit such as the Uni
form Customs and Practice for Documentar
y Credits (UCP), shall be recognized.
SEC. 416. Examination of Samples. -
Customs officers shall see to it th
at representative samples taken dur
ing examination shall be properly r
eceipted for and retained within a
reasonable period of time. The quan
tity and value of the samples taken
shall be noted in the specified box
of the import entry or electronic f
orm. Such samples shall be duly lab
eled as will definitely identify th
em with the importation for which t
hey are taken.
SEC. 417. Forwarding of Cargo and Remains of Wreck
ed Vessel or Aircraft. - When vessels or aircrafts
are wrecked within the Philippines. the original o
wners or consignees of the cargo, or by its underw
riters. in case of abandonment, may seek approval
from the Bureau to forward the goods saved from th
e wreck to the ports of destination without going
through the customs office in the district in whic
h the goods were cast ashore or unloaded.
Upon approval, the goods may be forwarded with par
ticular manifests and duly certified by a customs
officer in charge of the goods.
The owner of the vessel or aircraft may be permitt
ed to export the remains of the wreck upon proper
examination and inspection.
The remains of a wrecked vessel shall include not
only its' hull and rigging, but also all sea store
s, goods and equipment, such as sails, ropes and c
hain anchors.
SEC. 418. Derelicts and Goods from
Abandoned Wrecks. Derelicts and all
goods recovered from sea or from ab
andoned wrecks shall be under the j
urisdiction of the port where the g
oods arrive, and shall be retained
in the custody of the Bureau. If no
t claimed by the owner, underwriter
or salvor, the same shall be deemed
as property of the government.
 When such goods are brought into port
by lighters or other craft, each vessel
shall submit a manifest of their respect
ive cargo.
The customs officer nearest the scene
of the wreck shall take charge of the go
ods saved and shall give immediate notic
e to the District Collector or the neare
st customs office.
In order to prevent any attempt to c
ommit fraud, the District Collector shal
l be represented at the salvage of the c
argo by customs officers who shall exami
ne and receive the inventory made on the
cargo.
 Derelicts and goods salvaged from foreign ve
ssels or aircrafts recovered from sea or wreck
are prima facie dutiable and may be entered for
consumption or warehousing. If claimed to be of
Philippine production, and consequently conditi
onally duty-free, proof must be submitted as in
ordinary cases of re importation of goods. Fore
ign goods landed from a vessel or aircraft in d
istress is dutiable if sold or disposed of in t
he Philippines.
Before any goods taken from a recent wreck a
re admitted to the customs territory, the same
shall be appraised, and the owner or importer s
hall have the same right to appeal as in ordina
ry importation.
No part of a Philippine vessel or aircraft o
r its equipment, wrecked either in Philippine o
r foreign waters, shall be subject to duty.