Canceling single administrative documents (SAD) must now be forwarded to the Office of the Commissioner (OCOM) for approval, according to a memorandum issued by Philippine Customs Commissioner Isidro Lapeña.
Signed October 3, Customs Memorandum Order (CMO) No. 19-2017 reiterates and amends CMO No. 53-2010, which provides supplemental guidelines for implementing CMO 27-2009 (post-entry modification of SAD [PMS] and SAD cancellation).
The new CMO, which took effect immediately, states that “no SAD cancellation shall be allowed unless approved by the Office of the Commissioner.”
SAD, an internationally used form of customs declaration or goods declaration, is designed to standardize customs documents, harmonize codification, and simplify procedures in international trade exchanges.
Under CMO 19-2017, district collectors shall forward all requests for SAD cancellation to OCOM, where an appropriate unit shall issue the clearance and return the approved request to the district collector concerned.
The district collector, examiner, appraiser, and all other concerned personnel are responsible for strictly enforcing CMO 19-2017, and will be “held administratively liable in case of breach hereof.”
Failure to comply with the new order “shall subject the erring parties to the imposition of appropriate sanctions, administrative, civil and/or criminal, as may be warranted under the circumstances.”
All other provisions of CMO 53-2010 that do not conflict with CMO 19-2017 remain effective.
CMO 19-2017 was issued because Lapeña, in a memorandum signed October 3, said his office had noticed “that the quantity of cancellation of entries has risen,” effectively circumventing procedures laid down by CMO 16-2010 (Rules and Regulations to Implement CAO No. 4-2004, more particularly on Dutiable Value) and CMO No. 53-2010.
Lapeña said “the undue cancellation of entries results in the non-imposition of the surcharges” as sanctioned by Section 1400 of Republic Act No. 10863, otherwise known as the Customs Modernization and Tariff Act.
“As a consequence, the Bureau’s performance of its mandate to enhance revenue collection is adversely affected,” he noted.
He added that the when examiners or appraisers cancel entries, it represents “grave abuse of discretion.” – Roumina Pablo
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