DAY 3 CBW ESTALISHMENT AND OPERATIONS PART 1

Question 1

It is a warehouse facility established for the manufacture of products utilizing raw materials or components that are imported duty and
tax-free conditioned on the exportation of the finished products within the period prescribed herein or withdrawal for domestic consumption
upon payment of duties and taxes, provided that raw materials entered for consumption shall not exceed 30% of the volume of raw
materials entered for warehousing.

Answer 1

Manufacturing CBWs (MCBW)

Question 2

Withdrawal for consumption beyond 30% may be allowed by the Bureau under meritorious
circumstances such as but not limited to:

Answer 2

-Cancelled orders
-Closure of CBW
-Cessation of operations due to a state of calamity

Question 3

It is a warehouse facility established and duly authorized to
import, receive and store, duty and tax free and under bond, raw materials, except garments and textiles, for manufacture into
finished products, including accessories, packaging and packing materials, for export within a specified period.

Answer 3

Miscellaneous Manufacturing Bonded Warehouse (MMBW).

Question 4

It is a warehouse facility established and duly
authorized by the Bureau alone or jointly with GTIDO to import, receive and store, duty and tax-free and under bond, raw
materials, accessories, packaging and packing materials for the manufacture of garments or textiles for export within a specified
period.

Answer 4

Garments and Textiles Manufacturing Bonded Warehouse (GTMBW).

Question 5

It is a warehouse facility established and jointly authorized by the Bureau
alone or jointly with GTIDO, in case of garments industry to import, receive and store, duty and tax-free and under bond, raw
materials, accessories, for the account of its accredited members for manufacture into finished products for export including
packaging and packing materials.

Answer 5

Customs Common Bonded Warehouse (CCBW).

Question 6

It is a warehouse facility duly licensed by the BOC to import under
bond and under its name and account, goods or raw materials, (except fibers, yarns fabrics and accessories for the manufacture
of garments) for storage and subsequent sale and transfer to its accredited Client/End-User either for export of the bonded
goods or for manufacturing into export products, in case of raw materials.

Answer 6

Industry-Specific Customs Bonded Warehouse (ICBW).

Question 7

CBWs previously granted Authority to Operate either as Multinational Regional Bonded Warehouse, Airlines Customs Bonded Warehouse
and Airlines Catering Customs Bonded Warehouse shall be reclassified as:

Answer 7

ICBWs

Question 8

To ensure compliance with the requirements and conditions specified in
CAO 9-2019, all existing public bonded warehouses are hereby reclassified as:

Answer 8

CFW

Question 9

Shall refer to the warehouse accredited by the Bureau operated by the DFPC which shall be used for
receiving, storing and safekeeping of imported duty and tax-free goods and as the principal transfer and distribution point for all goods
for sale in all duty-free stores throughout the country.

Answer 9

Main Bonded Warehouse

Question 10

Shall refer to physical establishment, sales or display counters where the goods sold by DFPC are exhibited for consumption
by qualified individuals.

Answer 10

Stores

Question 11

Whose approval that District Collector needs approval for designation and establishment of customs warehouses for the storage of imported goods or for other special purposes.

Answer 11

Commissioner

Question 12

It is a document issued of District Collector covered solely the transfer of goods to subcontractors and members of CCBW.

Answer 12

Authority to Transfer

Question 13

Documentary Requirements for application of CBW

Answer 13

Any person, or firm desiring to establish and operate a CBW shall submit the following documents:
a. Duly filled up Application Form (Annex A)
b. Certificate of Accreditation as importer;
c. Lease Contract or Certificate of Title to the real property where the CBW is located;
d. Warehouse location or vicinity map showing the area and means of access;
e. Warehouse layout showing and describing the following:
i. Floor plan and building structure;
ii. Storage areas for raw materials, finished products and wastage;
iii. Production area;
iv. Office spaces for both CBW and customs personnel; and
v. Physical security feature.
f. List of machineries and equipment;
g. Feasibility Study (Annex B);
h. Monthly requirement of the list of materials to be imported; and
i. Hard and Soft copies of Formula of manufacture/conversion, if applicable.
j. In case of garments, endorsement from the concerned government agency (GTIDO)
Other documentary requirements which have been submitted during the application for accreditation as importer may be
dispensed with, unless otherwise required.

Question 14

Evaluation of Application by DC for Establishment of CBW.

Answer 14

The District Collector of the Port shall:
a. Determine the completeness of the documents submitted in support of the application;
b. Cause the conduct of physical inspection and taking photographs of the premises;
c. Evaluate and review the documents including the physical inspection report; and
d. Recommend to the Commissioner the approval of the application upon compliance with all the requirements.

Question 15

The District Collector may recommend the approval to the Customs Bonded Warehouse Committee (CBWC) the approval of the
application shall be within:

Answer 15

within 5 working days from issuance of clearances, and inspection by concerned offices.

Question 16

The Commissioner of Customs shall constitute a CBWC to be headed by

Answer 16

Deputy Commissioner, AOCG

Question 17

The CBWC in recommending the approval of application for issuance of Authority to Operate shall specify the following:

Answer 17

i. The type of CBW;
ii. The specific raw materials, with their corresponding HS tariff lines the CBW is allowed to import;
iii. The volume/quantity of raw materials, in the particular unit of measure (e.g. square meters, kilograms, liters), it is authorized to
import, taking into account the storage capacity of the CBW; and
iv. In the case of CCBWs and ICBWs, the members of client/end-user for whom said materials, identified according to their HS
tariff lines, may be transferred/sold; and the qua

Question 18

The Commissioner shall act on the application within _____ from receipt of the recommendation by the CBWC

Answer 18

20 working days

Question 19

An applicant whose application to establish or renew a CBW was denied by the Commissioner may file

Answer 19

a Motion for Reconsideration on
the denial of the Commissioner within 15 days from the receipt of notice of denial, copy furnished the CBWC and the District Collector,
stating clearly the grounds why the application should be approved.

Question 20

The Commissioner,________________ shall issue a resolution granting the Motion or
affirming his denial of the application.

Answer 20

within 20 working days from receipt of the Motion for Reconsideration,

Question 21

Post Approval Requirements
CBWs granted Authority to Operate shall submit annually their, what?

Answer 21

ITRs, duly filed with the BIR, CTC of Mayor’s Permit, Audited Financial
Statement, Export and Import Performance, and Year-End Stock Inventory Report.

Question 22

The Authority to Operate a CBW, including warehouse extensions and additional facilities issued pursuant to this CAO shall be valid for

Answer 22

3 years counted from the date of approval of application for establishment, as stated in the Certificate of Authority to Operate.

Question 23

If the term
of the lease contract submitted during application is less than 3 years, the validity of the Authority to Operate

Answer 23

shall be coterminous with
the lease contract unless a new contract of lease with a longer period is submitted. In such case, the Authority to Operate shall be
amended to its maximum period of 3 years counted from the date of original issuance.

Question 24

In case of renewal and where Authority to Operate was issued after the lapse or after the expiration of the existing authority, ______

Answer 24

the 3-year
effectivity period of the renewed Authority to Operate shall retroact to the date immediately after the expiration of the previous authority.

Question 25

Filing of Application for Renewal of Authority to Operate CBW, shall be:

Answer 25

The application for renewal of Authority to Operate CBW shall be filed not later than 90 days but not earlier than 120 days before its
expiration.

Question 26

Requirements for Renewal (all CBWs) (CMO 3-2022)

Answer 26

. Current Importer’s Accreditation with AMO;
b. ITR and Latest Audited Financial Statement, if applicable;
c. Certificate of Clearance/No Outstanding Obligation from the Bureau offices concerned;
d. Import/Export Performance for the last 3 years;
e. Copy of certificate of title to the real property, or if applicable, copy of renewal of the lease contract;
f. Warehouse location or vicinity map showing the area and means of access;
g. Updated List of machineries or equipment, if applicable;
h. Updated Statement of Monthly Raw Materials Importation Requirements (SMRIR) with corresponding HS Code validated by
WAD;
i. Updated ITDI FOM, if applicable; and
j. Affidavit of No change of circumstances where there are no change of circumstances relative to paragraphs e, f, g, h, and I with
supporting documents
k. In case of MCBW and ICBW, the joint application for renewal shall be supported with all the above requirements to

Question 27

Requirements for Renewal of CBWs operated by DFPC (CAO 11-2020 as amended by CAO 5-2021

Answer 27

. Updated layout plan of DFPC Main Bonded Warehouse including the location or vicinity map;
b. Updated layout plan of DFPC Stores, namely its physical sales, displays or counters and provincial outlets including the location
or vicinity map;
c. Names and contact numbers of DFPC responsible officers;
d. Names and contact numbers of concessionaires, including responsible officers, with corresponding list of importables;
e. Layout plan of storage are of concessionaires, if any;
f. Summary of importation and sales report for the part 3 years;
g. Audited Financial Statement for the last 2 years immediately preceding the date of application;
h. Contract of lease, if any; and
i. Certificate of Accreditation as Importer or a copy of CPRS of DFPC and its concessionaires

Question 28

Late Filing of Application for Renewal of Authority to Operate, shall be penalized of:

Answer 28

imposition of penalties, which may take in the form of fines, suspension or revocation of
Authority to Operate, as may be warranted in accordance with Sections 10.1.c and13.9

Question 29

The CBW Operator or accredited member shall file the application with the District Collector prior to the introduction of any structural
changes or additional facilities, giving the required docs, such as:

Answer 29

a. Building permit, if applicable;
b. Description of the proposed structural changes or additional facilities;
c. CBW lay out, estimated capacity and physical security features after the introduction of; and
d. Such other documents that may be required by the District Collector in the exercise of power of supervision and control.

Question 30

The CBW Operator may apply for an extension warehouse which should be located within the territorial jurisdiction of the District Collector
who has control over the main warehouse.
The application shall be supported by the following documents: What are those?

Answer 30

a. Certified True Copy (CTC) of Mayor’s Permit for the new CBW, if applicable;
b. Lease Contract or Certificate of Title to the real property where the proposed extension warehouse is located;
c. Location of vicinity map of the proposed extension warehouse showing the area and means of access;
d. Layout of the proposed extension warehouse showing and describing the following:
i. Floor plan and building structure;
ii. ii. Storage ares for raw materials, finished products and wastages, and production area, as appropriate;
iii. Office spaces for both CBW and customs personnel; and
iv. Physical security features, and:
e. List of machineries and equipment, as appropriate.