TERM OF SHIPMENT / INCOTERMS
REEFER CONTAINER
20ft 40ft FOB
FCA
] w/ EXW & OC
GUANGSHOU,CHINA 1 300 USD 1 700 USD
CFR
XIAMEN, CHINA 1 500 USD 1 800 USD CPT
] w/ COST & FRT
SHANGHAI, CHINA 1 800 USD 3200 USD CIF
CIP
] w/ COST, INS & FRT
DALIAN, CHINA 1 350 USD 1 680 USD
SINGAPORE (plus : BAF ($70/20ft & $140/40ft) 900 USD 1 850 USD ADJUSTMENT ON INSURANCE
Rule 1: If the INCOTERMS is CIF/CIP, the actual insurance
LOS ANGELES, USA 3 050 USD 6 100 USD
declared shall be used in the assessment,
CONTAINER REEFER VAN
Rule 2: If the INCOTERMS is CFR/CPT, the local insurance
HONGKONG 1 600 USD declared may be accepted in the assessment,
Rule 3: If the INCOTERMS is FOB, the local insurance declared
if it is a 20 ft. container reefer van, then the freight should be may be accepted in the assessment,
50% of the freight charge of a 40 ft. In case lower, the same provided that if the insurance is lower than 2% or 4% of the FOB
shall be subject to further verification by the BOC value the same shall be subject to verification/adjustment by the
BOC.
ADJUSTMENT ON FREIGHT CHARGES MODULE 5
Rule 1: If no freight is indicated in the AWB, B/L and/or Section 1402: Failure or Refusal of Party to Give Evidence or
commercial invoice, the declared freight cost in the SAD/GD may Submit Documents for Assessment. Basis
be considered, provided that if the freight is lower than the 70%
of either IATA rate or Gross Conference Rate, airfreight and sea
SURCHARGE = DVphp x .20
freight shipment, the freight as declared shall be subject to
verification/adjustment.
Section 1403: Other Fraudulent Practices Against Customs
Rule 1: If the freight charge is lower than 70% of either the IATA Revenue.
or GCR, the importer must present the Certification from
Drawback or Refund of duties (prescribe in section 1401)
forwarder/shipping lines and/or copy of the OR as to the actual
freight paid. Basis: (DVphp + CUD + VAT)
Rule 2: If the importer cannot present the Certification from
forwarder/shipping lines and/or copy of the OR as to the actual
freight paid, the BOC shall consider applying the 70% IATA or Section 1401: Unlawful Importation or Exportation
GCR.
A. Imprisonment= not less than (30)days and (1)day but not
more than(6) months Range of penalty= (25K - 75K)
AIR FREIGHT (IATA) SEA FREIGHT (GRC)
B. Imprisonment= not less than (6)months and (1)day but
per kg x 70% x Total GW per CBM x 70% x meas. not more than (1) year Range of penalty= (250K - 500K)
C. Imprisonment= not less than (1)year and (1)day but Section 1404: Failure to Declare Baggage (N0 BC)
not more than (3) years Range of penalty= (500K - 1M)
Undeclared Baggage Basis
D. Imprisonment= not less than (3)years and (1)day but
not more than (6) years Range of penalty= (1M - 5M)
SURCHARGE = LC x .30
E. Imprisonment= not less than (6)years and (1) day but
not more than (12) years Range of penalty= (5M - 50M)
F. Imprisonment= not less than (12)years and (1)day but Section 1414: Discrepancy Between Actual and
not more than (20) years Range of penalty= (50M - 200M) Declared Weight of Manifested Goods (GW)
G. Imprisonment= not less than (20)years and (1)day but not
more than (40) years Range of penalty= (200M and above) Inward Cargo Manifest (ICM)(import)
Heinous crime= reclusion perpetua and a fine of not less Outward Cargo Manifest (OCM)(export)
than 50M
H. The penalty of prision mayor shall be imposed when the
As Manifested = submitted & declared x Value
As Inspected = examined & discovered 10%/20%
crime of serious physical injuries shall have been committed,
and the penalty of reclusion perpetua shall be imposed when x xxxx
RE
the crime of homicide shall have been committed by reason or AI - AM %
= = Surcharge
on the occasion of the unlawful importation. AI
MODULE 6 MODULE 7
Section 1400: Misdeclaration, Misclassification, Section 1422: Unauthorized Withdrawal of Imported
Undervaluation in Goods Declaration Goods from Bonded Warehouse.
AF AD Difference: 1 year = 50%
(CUD+VAT)-(CUD+VAT) less than 9% = no surcharge SUMMARY
more than 1 year = 62.5%
(CUD+VAT) 10%-30% = 250% / 2.5 LCL FCL
AF 31% and more = 500% / 5 CUD CUD
50% / 62.5% of duties, taxes,
VAT VAT
AF customs fees, and charges,
CDS CDS
SURCHARGE= (CUD+VAT) x 2.5/5 found to be due and unpaid.
IPF IPF
S S
Undervaluation The amount of surcharge
= Value TADG CSF
Misclassification = Rate of Duty shall be added to the duties,
TADG
Misdeclaration taxes and charges due on
= quantity, quality, weight,
the goods withdrawn.
meas. or description
SEC 800: Conditionally Tax and/or Duty-Exempt
NO EXPORTATION
Importation (d)
TADG ex: 181 697
+ + 10 901.82
SURCHARGE
RE-EXPORTATION BOND
Total Payment 192 598.8
(100%) of the duties, taxes and other charges / TADG
re-export within six (6) months from the date of acceptance of
LATE SUBMISSION OF EXPORTATION DOCUMENTS
the goods declaration.
(but re-exported)
days after expiration date Surcharges
LATE RE-EXPORTATION (After the (6) months period) ex: illustration 36: 1 - 30 days 500
count how many months are late, and if there are extra days expiration: Dec. 05,2020 31 - 60 days 1 000
consider that as 1 month. submitted: Mar. 07,2020
1,000 / 2% per month or which ever is higher 61 - 90 days 1 500
92 days late
ex: illustration 34 shortcut: TADG 91 - 120 days 2 000
S = 2 000
2 months and 5 days late / 3 months x % of late months
121 - 150 days 2 500
3 months = 3,000 surcharge
compare
181 697 151 - 180 days 3 000
TADG = 181 697 x 2%= 3633.94
x 3 late months x 0.06 above 180 days TADG + 3 000
10 901.82 surcharge 10 901.82
ANNEX C ANNEX D
COMPUTATION OF FINES UNDER CAO4-94 (USED MOTOR
DV CV DV CUD
VEHICLES OF RETURNING RESIDENTS/BRAND NEW MVS) x
CV CUD x
DR CUD DR CUD AVT
AVT
B F DV BF VAT
- DV VAT
WD
DOF W D CDS + INS CDS
REQUIREMENTS: + A C FRT
+ AC
IPF
FOB IPF
+ INS CDS CDS
Lack of BIS-FTEB prior authority CP x DV CP
FRT I P F RE IPF S
Lack of one year residency abroad S
L C x DV
LC TADG
x DV TADG
Lack of proof of income abroad A V T RD AVT
RE
Lack of 6 months use/registration x DV x BASE CUD x BASE
RD RATE RATE
CUD VAT VAT
PENALTY:
Public Person, returning returning filipino residents
No(1) of the above requirements 20% filipino diplomats/officials/ and foreigners w/ 13A/13G
No(2) of the above requirements 30% ambassadors, coming to PH used motor vehicles
No(3) of the above requirements 50%
HOW TO COMPUTE AVT? HOW TO COMPUTE SURCHARGE?
None of all the above requirements 80%
ISP/MSP LC
x % hybrid / non-hybrid x % penalty
AVT Surcharge
