BSCA FORMS:

MICHAEL G. TEDE, C.B.

FED-Receiving Section:

Receive, check and verify section assignment
printed at SAD and attach documents of
importation;

Ascertain that the required documents are
attached to the entry and examine said
documents for correctness and authenticity;
FED-Receiving Section:

Submit complete entry at the concern COO V
for the assignment of COO III;

The concern COO III and COO V shall examine,
classify and appraise imported articles covered
by formal entry and assess customs duties and
taxes and other charges, subject to existing
customs laws and regulations in so far as the
release of the shipment is concerned;

Recommend the institution of seizure and
forfeiture proceedings against cargoes found
to be misdeclared or undervalued and banned
and regulated or prohibited merchandise in
accordance with existing laws, rules and
regulations;

Control and supervise the processing,
approval and/or cancellation of customs
bond;

Process all entries covered by bonds before
any delivery and withdrawal of the shipment
could be effected;


Device standardized surety forms in
conformity with the requirements of the
TCCP and Insurance Code;

Keep in custody all bonds and other pertinent
public documents


Collect and bonded obligations through
appropriate judicial and/or administrative
measures in coordination with Law Division
whenever necessary;


Receive payments of additional customs
duties, taxes and other charges;

Receive payment for the accreditation of
importer and broker;

Remit daily collection to the National
Treasury


Verify, check and review computations of formal,
informal and withdrawal entries based on applicable
foreign exchange rates, the correct dutiable and
taxable values taking into account the returns made
by the examiners and appraiser as to descriptions of
the commodities, tariff classification and rate of duty;
Maintain daily records of all liquidated entries
and post in the public corridors list of entries
found with discrepancies and indicate therein
the name of importer and serial number of
entries;

Compute fines and surcharges;
Prepare and transmit letters of demand to
importers, brokers, government agencies and
send bill/statement of accounts for all
receivables including short duties, taxes, fines
other charges due to the Bureau;
Prepare statement of refunds and tax credits
and notify importers concerned accordingly;

Compute, record, control and coordinate
collections of amounts remaining unpaid and
unsettled;
Forward to Law Division all dockets of cases
uncollected accounts for possible court action
after the prescribed period for compliance
has lapsed and payment has not been made;
Maintain and affect the systems of
accounting for all entries received and ensure
security and control over un-liquidated
entries kept in the Division;
Coordinate with the Foreign Surface Mail
Distribution Center of the Bureau of Post in
monitoring movement and transfer of foreign
parcels/mail bags from the Piers to the
Bureau of Post;
Examine, classify and appraise imported
merchandise received through the mails;

Authorize the release of imported parcels
upon compliance with existing
customs/postal laws, rules and regulations;
Examine and appraise exportable items
exported through the mails verifying and
checking the correctness of documents
submitted whether it is in accordance with
the existing customs/postal law, rules and
regulations and other related laws;
Recommend the institutions of seizure and
forfeiture proceedings against cargoes found to
be misdeclared or undervalued and banned,
prohibited, abandoned/unclaimed imported
merchandise in accordance with customs and /or
postal laws, rules and regulations;
Provide system of monitoring and reporting
of parcels received and transferred to
customs postal stations;
Examine, classify and appraise imported raw
materials/goods destined for bonded warehouse;

Check and verify the correctness of all returns and
warehousing entries with regards to tariff
classification, rate of duty and description of imported
goods as reflecting in the importers list of
importables;
Compute and determine the correct dutiable and
taxable values of the imported goods;

Recommend the cargoes found to be misdeclared or
undervalued and banned, prohibited,
abandoned/unclaimed imported merchandise in
accordance with existing laws, rules and regulations;
Officers and members
(each Collection Districts)

Chairman - District Collector of
Customs
Vice Chairman- Deputy Collector for
Assessment
Member - Chief, FED or
equivalent unit
Members - concerned COO V
and COO III
To determine if there is a genuine
valuation issue;


When a genuine valuation issue exists,
to determine whether delay will ensure
in the determination of customs value;


To process request for tentative release,
when applicable;

To re-route import entry when necessary to
the red channel;
To determine applicable method of valuation
including computation of duties and taxes;

To perform such other functions as may be
necessary to effectively carry out its
mandate;


Under OLD procedures, Import entries shall be
coursed to the VCRC when hit by the Valuation
Screen under the selectivity system (ACOS
VALUATION). The COO V shall fill up the Request
for VCRC Review Form and immediately forward the
same together with the import entry to the VCRC.


Note: The COO V shall not decide whether or not
the value of the shipment is doubtable.

Only the VCRC has the power to cast doubt on the
value of the shipment and decide whether a genuine
valuation issue exists or not.

Under the new system E2M, there is no valuation
screen once the Broker lodged the import entry and
has good response with the Bureau of Customs
Therefore, the concerned COO V and COO III shall
scrutiny the valuation issue, if justified such import
entry shall be endorsed by the COO V and COO III to
the VCRC with the appropriate justification and shall
be released tentatively, with the Transaction Value
accepted provisionally.

A genuine valuation issue exists when:
The shipment value is questioned by the concerned COO
V and COO III;
At least one of the elements under the Transaction Value
Method is inconsistent with the declaration and/or is
missing; and/or
The VCRC establishes that the method of valuation used
by the declarant is incorrect.

For purposes of the above, the elements under method 1
that should be reviewed are the following:
Sale for Export;
Price Actually Paid or Payable;
Restrictions to the Disposition of the Goods being Valued;
Conditions of Sale (for which the value cannot be
determined);
Proceeds of any subsequent resale/disposal of the goods
being valued;
Relationship between the buyer and the seller
Commissions and Brokerage fees;
Assists;
Royalties and License fees;
Packing and Container costs and charges;
Insurance; and
Transport Costs and charges

VCRC SECRETARIAT
Received Request for VCRC Review Form properly
filled up together with the Entry referred by the
concerned COO III and COO V and record the
same in a pre-numbered logbook;
The Evaluator shall perform the following:

Check the value range;

Require importer to submit documents, if warranted,
such as sales contract, evidence of payment, certificate
of discount, and other documents to verify price actually
paid or payable
The Evaluator shall perform the following:

Initially determine if the article is correctly classified
based on the data warehouse;

From the documents gathered, initially determine if
there is a genuine valuation issue
The Head, VCRC Secretariat shall be responsible
for the following:

Maintenance of logbook which shall contain the docket
number assigned to a case; the date and time when the
VCRC Request for Review Form has been received by
the secretariat and by whom;
Preparation of the minutes of the VCRC meetings which
shall, among others, indicate the following:

Facts of the case
Issue
Findings of the evaluators on value and classification
Excerpts of the position paper of the parties involved,
if any
Computation of the amount of the guarantee
for purposes of tentative release
The VCRC shall deliberate on the issues
involved including the determination whether
a genuine valuation issue exists or not
If a genuine valuation issue exists, the VCRC
shall provisionally determine the
appropriate value based on the applicable
valuation method and shall inform the
importer/broker accordingly
If the provisional value is acceptable to the
importer/broker, he may pay the assessed
duties and taxes based therefrom and the
Collector of Customs shall cause the release
of shipment thereafter
If the provisional value is unacceptable to the
importer/broker, the shipment may nevertheless be
released through tentative release if there will be a
delay in the resolution of the case. (note: delay
means the resolution of issue would take more than
16 working hours)
If shipment that will be processed under the
tentative release, an importer shall be given a
period of 15 days, extendible for a period not
exceeding another 15 days for reasonable cause,
from receipt of notice to comply with the
requirements needed (e.g. contract of sale, royalty
agreement, etc.)
The VCRC, shall resolved the issue within 24 hours
upon receipt of the documentary requirements.

Failure to comply with the documentary
requirements as directed by the VCRC within the
period provided shall be a ground for rejecting the
valuation method as declared.
All decision of the VCRC shall furnish the
following office:

The Commissioner of Customs
Deputy Commissioner for Assessment
Import and Assessment Service
The Collection Division shall cause the release of
shipments through OLRS based on the results of
payment verification. And also shall insure that the
required bond has been posted before causing the
release of the subject shipment through OLRS.
Further, shall return the import entry to the VCRC
for appropriate disposition
This Order was issued to expedite the resolution of
cases at the Valuation and Classification Review
Committee (VCRC) of each Port,
to ensure uniformity and consistency in the
application of the principles and rules of the
Transaction Value System and Harmonized System
in the resolution of VCRC cases in all Ports of Entry
in the import clearance process and by way of
providing technical support to the post entry audit
functions of the BOC, now BIR.
This Order shall apply to all importation with
assessment issues brought before the VCRC
pursuant to CMO 37-2001
To request for customs valuation or tariff
classification rulings or opinions involving no actual
shipments and queries relating to the application of
the transaction Value and the Harmonized Tariff
Systems, including preferential or special rates
This Order supplement CMO 37-2001 which is
amended to the extent that any of its provisions is
not consistent herewith
CMO 25-96 and all other Orders, Memoranda,
Circulars or parts thereof which are inconsistent
with this Order are likewise deemed superseded
and/or modified accordingly
Chairman - Commissioner of Customs

Chief Executive Officer (CEO) - Deputy
Commissioner for Assessment and Operation
Coordinating Group (AOCG)

Vice-CEO- Director, Import Assessment Service
(IAS)

Member - Deputy Collectors for Assessment of
POM, MICP and NAIA
Member - Chief, Valuation and Classification
Division (VCD)
The decision of the CVCRRC is subject to
only one motion for reconsideration which
should be filed within five (5) working days
from actual or constructive receipt of the
CVCRRC resolution.
When no motion is timely filed or when the
same was denied, the CVCRRC resolution
shall become final at the Assessment level.

However, the aggrieved importer may pay
under formal protest pursuant to Section
2308 of the TCCP, as amended.
Thank you very much.