REPUBLIC ACT
10863
CUSTOMS MODERNIZATION AND TARIFF ACT
TITLE 2, BUREAU OF CUSTOMS
DEFINITION OF TERMS
BUREAU- refers to the Bureau of Customs.
CUSTOMS BROKER- refers to any person who is a bona fide holder of a valid certificate of
Registration/Professional Identification Card issued by the Professional Regulatory Board and
Professional Regulations Commission pursuant to Republic Act No. 9280, as amended, otherwise
known as the Customs Brokers Act of 2004.
CUSTOMS OFFICE-refers to any customs administrative unit that is competent and authorized to
perform all or any of the functions enumerated under customs and tariff laws.
IMPORTATION- refers to the act of bringing in of goods from a foreign territory into Philippine
territory, whether for consumption, warehousing, or admission as defined in this Act.
EXPORTATION- refers to the act, documentation, and process of bringing goods out of Philippine
territory.
GOODS- refer to articles, wares, merchandise and any other items which are subject of importation
or exportation.
DEFINITION OF TERMS
PERISHABLE GOODS- refers to goods liable to perish or goods that depreciate greatly in value
while stored or which cannot be kept without great disproportionate expense, which may be
proceeded to, advertised and sold at auction upon notice if deemed reasonable
SMUGGLING- refers to the fraudulent act of importing any goods into the Philippines, or the act of
assisting in receiving, concealing, buying, selling, disposing or transporting such goods, with full
knowledge that the same has been fraudulently imported, or the fraudulent exportation of goods.
Goods referred to under this definition shall be known as smuggled good.
TECHNICAL SMUGGLING- refers to the act of importing goods into the country by means of
fraudulent, falsified or erroneous declaration of the goods to its nature, kind, quality, quantity or
weight, for the purpose of reducing or avoiding payment of prescribed taxes, duties and other
charges.
OUTRIGHT SMUGGLING- refers to an act of importing goods into the country without complete
customs prescribed importation documents, or without being cleared by customs or other
regulatory government agencies, for the purpose of evading payment of prescribed taxes, duties
and other government charges
200. CHIEF OFFICIALS OF THE BUREAU
The Bureau shall be headed by a Commissioner and shall be
assisted by at least four (4) but not more than six (6) Deputy
Commissioners.
The Commissioner shall be appointed by the President of the
Philippines.
The Deputy Commissioners shall also be appointed by the
President and at least majority of whom shall come from the
ranks of the Bureau.
201. POWERS AND FUNCTIONS OF
THE COMMISSIONER
The Commissioner shall have the following powers and functions:
Exclusive and original jurisdiction, to interpret the provisions of this Act,
in collaboration with other relevant government agencies, subject to
review by the Secretary of Finance;
Exercise any customs power, duties and functions, directly or indirectly;
Review any action or decision of any customs officer performed pursuant
to the provisions of this Act;
Review and decide disputed assessments and other matters related
thereto, subject to review by the Secretary of Finance and exclusive
appellate jurisdiction of the Court of Tax Appeals (CTA)
201. POWERS AND FUNCTIONS OF
THE COMMISSIONER
Delegate the powers vested under this Act to any customs officer with the
rank equivalent to division chief or higher, except for the following powers and
functions:
1. Promulgation of rules and regulations;
2. Issuance, revocation or modification of rulings; and
3. Compromise or abate of customs obligations.
Assignment or reassignment of any customs officer subject to the approval of
the Secretary of Finance: Provided, That District Collectors and other customs
officers that perform assessment functions shall not remain in the same area of
assignment for more than three (3) years; and
Perform all other duties and functions as may be necessary for the effective
implementation of this Act and other customs related laws.
202. FUNCTIONS OF THE BUREAU
Assessment and collection of customs revenues from imported goods
and other dues, fees, charges, fines and penalties accruing under this
Act;
Simplification and harmonization of customs procedures to facilitate
movement of goods in international trade;
Border control to prevent entry of smuggled goods;
Prevention and suppression of smuggling and other customs fraud;
Facilitation and security of international trade and commerce through
an informed compliance program
202. FUNCTIONS OF THE BUREAU
Supervision and control over the entrance and clearance of vessels and aircraft engaged
in foreign commerce;
Supervision and control over the handling of foreign mails arriving in the Philippines for
the purpose of collecting revenues and preventing the entry of contraband;
Supervision and control on all import and export cargoes, landed or stored in piers,
airports, terminal facilities, including container yards and freight stations for the
protection of government revenue and prevention of entry of contraband;
Conduct a compensation study with the end view of developing and recommending to
the President a competitive compensation and remuneration system to attract and retain
highly qualified personnel, while ensuring that the Bureau remains financially sound and
sustainable;
Exercise of exclusive original jurisdiction over forfeiture cases under this Act; and
Enforcement of this Act and all other laws, rules and regulations related to customs
administration.
203. ANNUAL REPORT OF THE
COMMISSIONER
The Commissioner shall submit to the President, the Congress of the
Philippines and the NEDA an annual report on the performance of the
Bureau, on or before March 31 of the following year.
BOC ORGANIZATION (EO 127, JAN.
30,1987) AS AMENDED
COMMISIONER
DEPUTY COMMISSIONERS
Assessment and Operations Coordinating Group (AOCG)
Revenue Collection Monitoring Group (RCMG)
Internal Administration Group
Intelligence Group (EO 805, June 2009)
Enforcement Group (EO 805, June 2009)
Management Information System and Technology Group (EO 463 s.
1998)
ASSESSMENT AND OPERATIONS
COORDINATING GROUP (AOCG)
Imports and Assessment Service (IAS)
Valuation and Classification Division
Assessment Coordination and Monitoring Division
Warehouse Coordination Division
Ports Operations Service
Auction and Cargo Disposal Division
Export Coordination Division
Port Operations Division
ASSESSMENT AND OPERATIONS
COORDINATING GROUP (AOCG)
1. Regularly gather and subject to approval of Commissioner, publish
values of commodities imported into the Philippines, such values being
the bases for the computation of duties and taxes.
2. Monitor for decision making purposes the implementation of rules and
regulations governing assessment, warehousing and support operations.
3. Monitor auction and disposal activities together with port, airport
operations related activities for decision making purposes.
4. Performs other functions that may be assigned by the Commissioner.
REVENUE COLLECTION MONITORING
GROUP (RCMG)
Service is headed by a Director while Division is headed by a Chief.
Legal Service
Ruling and Research Division
Prosecution and Litigation Division
Appellate Division
Tax Exempt Division
Financial Service
Revenue Accounting Division
Statistical Analysis Division
Collection Service
Collection Performance/Evaluation Division
Liquidation and Assessment Division
Bonds Audit Division
REVENUE COLLECTION MONITORING
GROUP (RCMG)
1. Maintain an updated accounting for all customs revenues collected.
2. Administer legal requirements of BOC to include litigation and
prosecution of cases.
3. Provide Commissioner with accurate and time information and analysis
of collection statistics.
4. Conduct continuing audit of liquidated entries and outstanding bonds.
5. Perform such other appropriate functions consistent with the assigned
tasks of the group and others which may be given by the Commissioner.
INTERNAL ADMINISTRATION GROUP
Financial Management Office
Administration Office
Planning and Policy Research Division
Management Information and Data Systems Division
Public Information and Assistance Division
Medical and Dental Division
Human Resources Management Division
INTELLIGENCE AND ENFORCEMENT
GROUP (IEG)
INTELLIGENCE GROUP
Intelligence Service
Investigation and Prosecution Division
Internal Inquiry and Prosecution Division
ENFORCEMENT GROUP
Enforcement and Security Service
Customs Police Division
Water Patrol Division
Radio Communications Division
INTELLIGENCE AND ENFORCEMENT
GROUP (IEG)
a) Regularly and consistently gather intelligence information related to
customs and economic activities for proper dissemination to customs
offices concerned
b) Conduct internal inquiry and investigations which may serve as basis
for prosecution
c) Exercise police authority conferred by the TCCP (now CMTA) or other
laws which include enforcement of seizure and forfeitures and the
imposition of penalties
d) Performs functions that may be assigned by the Commissioner.
Note: Note of the split of IEG into IG and EG
INVESTIGATION AND PROSECUTION
DIVISION (IPD)
Conduct investigation on cases involving violation of customs laws, rules
and regulations;
Examine records of importations and determine the authenticity of
suspected documents;
Recommend the filing of administrative and/or criminal charge(s)
arising from violations of CMTA, its rules and regulations;
Maintain a centralized record of cases investigated and establish
liaison with other government agencies (CMO 9-2019)
INTERNAL INQUIRY AND
PROSECUTION DIVISION (IIPD)
Conduct background investigation on applicants and employees of the
Bureau;
Initiate investigation, if warranted, administrative cases against
customs employees;
Investigate and take appropriate action against security violations;
Perform liaison and coordination activities with other government.
(CMO 9-2019)
RISK MANAGEMENT OFFICE (RMO)
Directly under the Commissioner while day to day operations managed by
Dep. Com- IG.
Functions:
a. Review and update parameters of the Selectivity Screen of the
Selectivity System;
b. Establish a viable system of setting and changing the said parameters;
c. Ensure an efficient and secure information pipeline from all sources to
the RMO;
d. Conduct a continuing study/profile of importers, exporters and customs
brokers; and
e. Maintain a database of all smuggling cases and related data. (EO 836 s.
2009)
MISTG ORGANIZATION
Planning and Systems Development Services headed by Service Chief/ Director
III:
a. Planning and Management Information Division;
b. Systems Development Division.
• Technology Management Service headed by Service Chief/Director III:
a. Systems Management Division;
b. Technical Support Division;
c. Port Data Management Unit
1. POM Database Management;
2. MICP Database Management;
3. CEBU Database Management; and
4. NAIA Database Management.
