CMO 9-2021 Flashcards
shall refer to a company which provides and arranges fast and rapid transport and delivery of express shipments, by order and in the interest of shippers or consignors, either as a direct common carrier or an indirect air carrier, and as such issues its own air waybill to shippers or consignors of shipments under its solicitation.1
Air Express Cargo Operator (AECO)
shall refer to a transport document for airfreight used by airlines and international freight forwarders which specifies the holder or consignee of the bill who has the right to claim delivery of the goods when they arrive at the port of destination. It is a contract of carriage that includes carrier conditions, such as limits of liability and claims procedures. In addition, it contains transport instructions to airlines and carriers, a description of goods, and applicable transportation charges.2 AWBs are categorized as follows:
Master Air Waybill (MAWB)
House Air Waybill (HAWB)
Air Waybill (AWB)
shall refer to an air waybill issued by an air carrier to an international air freight forwarder or consolidator.3
Master Air Waybill (MAWB)
shall refer to an air waybill covering a single, individual shipment or consignment issued by the freight forwarder or consolidator to a consignor or sender containing the names and addresses, respectively, of both the consignor or sender and the consignee or receiver and the detailed, specific description of good shipped by air.4
House Air Waybill (HAWB)
shall refer to the Bureau of Customs.
Bureau -
shall refer to the detailed list of cargo (freight) on board a vessel or aircraft giving the commercial particulars of the goods, such as transport document numbers, consignors, consignees, marks and numbers, number and kind of packages, weight, descriptions, quantities of the goods and destination.5
Cargo Manifest-
shall refer to the Cargo Manifest of all shipments destined and intended to be unloaded at a port entry in the Philippines for consumption, admission, or warehousing. In electronic format, it is also known as e-IFCM.
Inward Foreign Cargo Manifest (IFCM) -
shall refer to a true and accurate manifest, of all the individual shipments in the consolidation destined and intended to be unloaded at a port entry in the Philippines, submitted as rider to the inward foreign manifest of the carrying vessel or aircraft. In electronic format, it is also known as e-CIFCM.
Consolidated Inward Foreign Cargo Manifest (CIFCM)
shall refer to the list of House Airway Bills and/or Master Airway Bills which contain information about a transshipment cargo departing on a flight. In electronic format, it is also known as e-OFCM.
Outward Foreign Cargo Manifest (OFCM) -
shall refer to Cargo Manifest of all shipments intended to be temporarily unloaded at a port entry in the Philippines subject to re-exportation to its destination to countries other than the Philippines. In electronic format, it is also
known as e-TFCM.
Transshipment Foreign Cargo Manifest (TFCM) -
shall refer to the completion of customs and other government formalities necessary to allow goods to enter for importation or exportation.
Clearance
shall refer to the act of bringing imported Goods directly or through Transit into a Free Zone;
Admission-
shall refer to goods entered for domestic or local use;
Consumption
shall refer to the customs procedure under which goods, in its original form, are transported under customs control from one customs office to another, or to a free zone;13
Transit
shall refer to the customs procedure under which goods are transferred under customs control from the importing means of transport to the exporting means of transport within the area of one customs office, which is the office of both importation and exportation.
Transshipment-
shall refer to the transit of transshipment goods under customs control from one port of entry to another port of entry for onward shipment to a destination outside of the Philippines.
Transfer-
shall refer to the arrival and departure of shipments in the same port of entry on the same transporting vessel or aircraft without unloading or sortation.
Transhold -
shall refer to the process of transferring a shipment from one mode of transportation to another within the same port of entry.
Transload
- shall refer to the unloading, sortation, and reloading of goods, in one continuous process within the same port of entry.
Transsort
Warehousing shall refer to the customs procedure under which goods are entered and stored under security in an accredited Customs Bonded Warehouse (CBW),16
Warehousing
shall refer to the value of goods for which no duty or tax is collected.17
De Minimis Value -
shall refer to consolidated air shipments of goods which are time-sensitive in character, usually under a door-to-door service arrangement with on-time delivery commitment, which are shipped under a MAWB consigned to an AECO.18
Express Shipments -
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, Clark Special Economic Zone, Clark Green City; 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 Pacific Economic Zone and Freeport Authority under Republic Act No. 9490, as amended by Republic Act 10083; the Cagayan Special Economic Zone and Freeport under Republic Act No. 7922; the Zamboanga City Special Economic Zone Authority 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.
Free Zones -
- shall refer to goods of a commercial nature with FOB or FCA value of Fifty Thousand Pesos (Php50,000.00) or over. 20
High-Value Shipments
shall refer to a set of internationally recognized rules which define the responsibility of sellers and buyers. It specifies who is responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities.
International Commercial Terms (Incoterms)
shall refer to an international commercial term which means that the seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place. The parties of this type of sale should specify clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.
Free Carrier (FCA)
shall refer to an international commercial term which means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from the moment onwards.
Free On-Board (FOB)
shall refer to goods of a commercial nature with FOB or FCA value of more than ten thousand pesos (Php10,000.00) but less than fifty thousand pesos (Php50,000.00).24
Low-Value, Dutiable Shipments -
shall refer to the value of goods with an FOB or FCA value of ten thousand pesos (Php10,000.00) or below for which no duty or tax is collected.
Package
shall refer to the following goods, the importation and exportation of which are prohibited:
a. Written or printed goods in any form containing any matter advocating or inciting treason, rebellion, insurrection, sedition against the government of the Philippines, or forcible resistance to any law of the Philippines, or written or printed goods containing any threat to take the life of, or inflict bodily harm upon any person in the Philippines;
b. Goods, instruments, drugs and substances designed, intended or adapted for producing unlawful abortion, or any printed matter which advertises, describes or gives direct or indirect information where, how or by whom unlawful abortion is committed;
c. Written or printed goods, negatives or cinematographic films, photographs, engravings, lithographs, objects, paintings, drawings or other representation of an obscene or immoral character;
d. Any goods manufactured in whole or in part of gold, silver or other precious metals or alloys and the stamp, brand or mark does not indicate the actual fineness of quality of the metals or alloy;
e. Any adulterated or misbranded food or goods for human consumption or any adulterated or misbranded drug in violation of relevant laws and regulations;
f. Infringing goods as defined under the Intellectual Property Code and related laws; and
g. All other goods or parts thereof which importation are explicitly prohibited by law or rules and regulations issued by the competent authority.27
Prohibited Goods
shall refer to the following goods, the importation and exportation of which are prohibited, except when authorized by law or regulation
Restricted Goods
shall refer to a document that accompanies the transfer of transshipment cargoes to a Customs Facilities and Warehouse (CFW) and serves as proof of delivery or receipt of the articles at its intended destination duly acknowledged on its face by the Collector of Customs or his duly authorized representative. It is also commonly referred to as a “Boat Note”.
Transfer Note-
Air Way bill are categorized as follows:
Master Air Waybill (MAWB)
House Air Waybill (HAWB)
Cargo Manifest includes the following:
Inward Foreign Cargo Manifest (IFCM) -
Consolidated Inward Foreign Cargo Manifest (CIFCM)
Outward Foreign Cargo Manifest (OFCM)
Transshipment Foreign Cargo Manifest (TFCM)
what are the customs clearance procedure:
Admission
Consumption
Transit
Transshipment
Warehousing
Two commonly use Incoterms
Free Carrier (FCA)
Free On-Board (FOB)
