The Philippine Bureau of Customs (BOC) has issued guidelines in determining surcharges for misclarification, misdeclaration and undervaluation of imported goods.
Customs Administrative Order No. 01-2014, signed by Customs Commissioner John Phillip Sevilla and Finance Secretary Cesar Purisima, aims to ensure a uniform implementation of Section 2503 of the Tariff and Customs Code of the Philippines.
Under the CAO, the guidelines on the amount of surcharges that will be imposed by the Collector of Customs are as follows:
For misclarification:
- Where the percentage difference in misclarification is 10% or more but not exceeding 30% of value, the amount of surcharge will be as follows:
- When the percentage is 10% or more but not exceeding 20%, a one times surcharge of the difference in customs duty shall be imposed.
- When the percentage exceeds 20% but not more than 30%, a two times surcharge of the difference in customs duty shall be imposed.
For undervaluation, misdeclaration in weight, measurement or quality:
- When the percentage difference in undervaluation/misdeclaration in weight, measurement or quantity is 10% or more but not exceeding 30%, a surcharge of two times the difference in customs duty shall be imposed.
An undervaluation, misdeclaration in weight, measurement or quantity of more than 30% between the value, weight, measurement or quality declared in the entry, the actual value, weight or measurement or quantity should constitute a prima facie evidence of fraud penalized through seizure proceedings under the TCCP.
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