| TERMS | DESCRIPTION |
|---|---|
| Agents | A duly authorized representative acting on behalf of the importer, exporter, or locator in customs transactions. This could include: • Customs brokers – licensed professionals who prepare and process customs entries, clear shipments, and represent importers/exporters before the BOC. • Authorized employees of a company – if they are officially designated to transact with customs. • Other representatives with a special power of attorney (SPA) – if an importer/exporter/locator designates someone to act for them in dealings with the BOC. |
| Customs Broker | shall refer to any person who is a bona fide holder of a valid Certificate of Registration or Professional Identification Card issued by the Professional Regulatory Board and Professional Regulation Commission pursuant to Republic Act No. 9280, as amended, otherwise known as the "Customs Brokers Act of 2004". |
| Fraud | shall refer to the commission or omission of any act resulting in material false statements such as, but not limited to, the submission of false or altered documents in connection with any importation knowingly, voluntarily and intentionally done to reduce the taxes and duties paid or to avoid compliance with government regulations related to the entry of Regulated, Prohibited or Restricted goods into Philippine customs territory through Misdeclaration, Misclassification or Undervaluation. |
| Importer | shall refer to the following: 1. Importer-of-record or consignee, owner or declarant, or a party who imports goods into the Philippines or withdraws admitted goods from the Free Zones into the customs territory for consumption or warehousing; files a claim for refund or drawback; or transports or stores such goods carried or held under security; or knowingly causes the importation or transportation or storage of imported goods referred to above, or the filing of refund or drawback claim. 2. A person ordering imported goods from a local importer or supplier in a domestic transaction if: the person placing the order controls the material terms and conditions of the importation; the person placing the order and the Importer or supplier are related in such a way that the former may be considered as the beneficial or true owner of the imported goods, as may be exemplified by the following circumstances: the person placing the order is the sole buyer of the goods imported by the Importer-of-record; the Importer-of-record is an affiliate of the juridical entity which placed the order; or the Importer-of-record and the entity which placed the order are owned by the same set of majority stockholders, whether nominal or beneficial, in both corporations; the person or entity placing the order furnished the Importer or the exporter with technical data, molds, equipment, other production assistance, material, components, or parts with knowledge that these will be used in the manufacture or production of imported goods or the goods to be imported. 3. A person whose activities require the filing of a goods declaration; or 4. An agent of the Importer. |
| Free Zones | shall refer to special economic zones registered with the Philippine Economic Zone Authority (PEZA) under Republic Act No. 7916, as amended, duly chartered or legislated special economic zones and freeports such as Clark Freeport Zone; Poro Point Freeport Zone; John Hay Special Economic Zone and Subic Bay Freeport Zone under Republic Act No. 7227, as amended by Republic Act No. 9400; the Aurora Special Economic Zone under Republic Act No. 9490, as amended; the Cagayan Special Economic Zone and Freeport under Republic Act No. 7922; the Zamboanga City Special Economic Zone under Republic Act No. 7903; the Freeport Area of Bataan under Republic Act No. 9728; and such other freeports as established or may be created by law. |
| Locators | shall refer to persons authorized to bring imported goods into Free Zones, such as the special economic zones and free ports. It refers to business entities or enterprises that are registered with and operating inside: • PEZA zones (Philippine Economic Zone Authority) • Freeports (like Subic Bay Freeport, Clark Freeport, etc.) • Other special economic zones created by law These entities are called locators because they are “located” inside these zones and enjoy special incentives, but in return they also have compliance duties (such as record-keeping of importations). |
| Misclassification | shall refer to the use of insufficient or wrong description of the goods or the use of erroneous tariff headings resulting in deficiency between the duty and tax that should have been paid and the duty and tax actually paid and/or to avoid compliance with government regulations related to the entry of Regulated, Prohibited or Restricted goods into Philippine Customs territory. |
| Misdeclaration | shall refer to a false, untruthful, erroneous or inaccurate declaration as to quantity, quality, description, weight or measurement of the goods resulting in deficiency between the duty and tax that should have been paid and the duty and tax actually paid and/or to avoid compliance with government regulations related to the entry of Regulated, Prohibited or Restricted goods into Philippine customs territory. |
| Negligence | shall refer to failure to exercise reasonable care and competence, through act or acts of omission or commission, in ensuring that a statement made is correct resulting in a deficiency in taxes and duties paid. |
| Principal Place of Business | shall refer to the headquarters that holds the senior executive of a firm and is usually the center from where other locations are controlled. It likewise refers to the place where a corporation's officers direct, control and coordinate the corporation's activities and where the books and records are kept. |
| Prior Disclosure Program | shall refer to a program based on international best customs practice, authorizing the Commissioner of Customs to accept, as a potential mitigating factor, prior disclosure by Importers of errors and omissions in goods declaration resulting in deficiency in duties and taxes on past importations. It may also include disclosures on royalties and other proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller. |
| Post Clearance Audit Group (PCAG) | shall refer to an office created under Executive Order No. 160 s. 2003, as amended by Executive Order No. 46, s. 2017, mandated to conduct an audit of importers, locators, and all parties engaged in customs clearance and processing. |
| Reconsideration of Audit Findings | shall refer to a plea for the re-evaluation of the audit findings on the basis of existing records without need of additional evidence. It may involve both a question of fact or of law or both. |
| Reinvestigation of Audit Findings | shall refer to a plea for the re-evaluation of the audit findings on the basis of newly discovered or additional evidence intended to be presented in the reinvestigation. It may also involve a question of fact or of law or both. |
| Undervaluation | shall refer to situation when the declared value fails to disclose in full the price actually paid or payable or any dutiable adjustment to the price actually paid or payable, or when an incorrect valuation method is used or the valuation rules are not properly observed, resulting in a discrepancy in duty and tax to be paid between what is legally determined as the correct value against the declared value. |
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