SEiZure and Forfeiture proceedings and appeal process

Question 1

shall refer to persons, corporations, firms, or association engaged in the business of carrying or transporting passengers or goods or both, by land, water or air, for compensation, offering their services to the public.

Answer 1

Common Carrier

Question 2

shall refer to the situation where, falling short of physical seizure or possession, the Customs Officers and the owner of the goods enter into a written agreement after the inventory to the effect that the goods, subject of a Letter of Authority (LOA), shall not be removed or disposed of pending disposition or resolution on the issue of whether proper payment of duties and taxes has been made.

Answer 2

Constructive Customs Custody

Question 3

shall refer to the disposition of the main forfeiture case based on merits, which resolves that there is no violation of the law that will warrant the Forfeiture of the seized articles, and consequently allows the release of the articles subject of a Warrant of Seizure and Detention (WSD) without payment of additional duties and taxes, interests, penalties and/or surcharges.

Answer 3

Decisions Adverse to the Government

Question 4

shall refer to officers or members of the Armed Forces of the Philippines (AFP) or other selected national law enforcement agencies covered by a written order signed by the Commissioner of Customs authorizing them to assist in the exercise of customs police authority, particularly the power to search, seize, and arrest in specified areas outside of customs premises.

Answer 4

Deputized Officer

Question 5

shall refer to the acquisition of ownership by the government for an established violation of CMTA as a result of the forfeiture proceedings.

Answer 5

Forfeiture

Question 6

shall refer to acts knowingly, voluntarily and intentionally committed or omitted which prejudice the interest of the government, e.g. submitting fake or spurious document, making material untruthful statement(s) or committing any other analogous act(s) or omission(s).

Answer 6

Fraud

Question 7

shall refer to a receipt issued by a customs officer acknowledging that the baggage is temporarily held in custody by the Bureau for undeclared dutiable goods and/or declared dutiable goods pending payment of duties and taxes, verification of documents, or compliance with customs laws, rules and regulations.

Answer 7

Held Baggage Receipt (HBR)

Question 8

shall refer to the orders of the District Collector or Commissioner involving incidental matters that does not dispose of the case completely but leaves something to be decided upon.

Answer 8

Interlocutory Order

Question 9

shall refer to the
1.use of insufficient or wrong description of the goods or
2.use of erroneous tariff heading/s and sub-heading/s

Answer 9

Misclassification

Question 10

shall refer to a false, untruthful, erroneous or inaccurate declaration as to quantity, quality, description, weight or measurement of the goods

Answer 10

Misdeclaration

Question 11

when there is a difference in the number of the Goods as declared in the Goods Declaration and the quantity as found after physical examination of the Goods.

Answer 11

Misdeclaration as to the Quantity of Goods

Question 12

when there is a difference in the characteristics of the Goods as declared in the Goods Declaration and the quality as found after physical examination of the Goods (e.g. declared as USED but found out as BRAND NEW or declared as Off-Quality, Remnants Fabrics but found as Whole, First Class, Best Quality Fabrics, among others).

Answer 12

There is Misdeclaration as to the Quality of Goods

Question 13

when there is a difference in the descriptive nature and identity of the Goods as declared in the Goods Declaration and the description as found after physical examination of the Goods (e.g. product code, item code, make, model, series, displacement, version, among others).

Answer 13

There is Misdeclaration as to Description of Goods

Question 14

when there is a discrepancy in the actual weight as declared in the Goods Declaration and the weight as found after physical examination and weighing of the Goods.

Answer 14

There is Misdeclaration as to the Weight of Goods

Question 15

when there is a difference in the size, length, width, height or volume of the Goods as declared in the Goods Declaration and the measurement as found after physical examination of the Goods.

Answer 15

There is Misdeclaration as to the Measurement of Goods

Question 16

shall refer to situation when the

1.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

2.when an incorrect valuation method is used; or the valuation rules are not properly observed;

Answer 16

Undervaluation

Question 17

shall refer to a document evidencing an aggrieved party’s intention to seek redress to a Decision which shall indicate the parties to the appeal, specify the judgment or final order on the merits or part thereof appealed from, and state the material dates showing the timeliness of the appeal.

Answer 17

Notice of Appeal

Question 18

shall refer to a recall of a WSD when the ground for the issuance of thereof is found to be non-existent or ceased to exist.

Answer 18

Quashal

Question 19

shall refer to the actual or constructive taking or bringing into custody the goods, things or chattels by virtue of a WSD issued by the Collector of Customs for violation of the CMTA.

Answer 19

Seizure

Question 20

shall refer to an abbreviated administrative proceeding wherein only position papers are required to be submitted in lieu of the conduct of a formal hearing.

Answer 20

Summary Proceedings

Question 21

shall refer to an order in writing, issued in the name of the Republic of the Philippines, signed by the District Collector of Customs directed to the Enforcement and Security Service (ESS) or any Deputized Officer of a national law enforcement agency, commanding him to seize any properties subject to Forfeiture pursuant to Section 1113, Chapter 4, Title XI of the CMTA.

Answer 21

Warrant of Seizure and Detention (WSD)

Question 22

shall refer to a written order issued by the Commissioner, District Collector, or other customs officers authorized in writing by the Commissioner after the Lodgement of goods declaration and before their actual release from customs custody, on the basis of derogatory information stated in this CAO regarding possible non-compliance with the CMTA and other laws, rules and regulations enforced by Customs.

Answer 22

Alert Order

Question 23

shall refer to the business of transferring either merchandise or passengers between two seaports in the Philippines.

Answer 23

Coastwise Trade

Question 24


shall refer to the quantity for a given kind or class of articles which are in excess of what is compatible. with and commensurate to the person’s normal requirements for personal use.
-in excess to standard

Answer 24

Commercial Quantity

Question 25

shall refer to persons, corporations, firms, or association engaged in the business of carrying or transporting passengers or goods or both by land, water or air for Compensation, offering their services to the public.

Answer 25

Common Carrier

Question 26

shall refer to the situation where, falling short of physical seizure or possession, the Customs Officers and the owner of the goods enter into a written agreement after the inventory to the effect that the goods, subject of a Letter of Authority (LOA), shall not be removed or disposed of pending disposition or resolution on the issue of whether proper payment of duties and taxes has been made.

Answer 26

Constructive Customs Custody

Question 27

shall refer to the disposition of the main forfeiture case by the District Collector or Commissioner based on merits.

Answer 27

Decision

Question 28

shall refer to articles, wares, merchandise and any other items which are subject of importation or exportation.”

Answer 28

Goods

Question 29

shall refer to the sum of the customs value including the total cost of the product, transportation cost and Insurance plus applicable customs duty and other taxable charges such as but not limited to brokerage fee, bank charge, other

Answer 29

Landed Cost

Question 30

shall refer to an international commercial term covered by the Incoterms rules developed by International Chamber of Commerce (ICC) 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.

Answer 30

Free Carrier (FCA)

Question 31

shall refer to International commercial term covered by the Incoterms rules developed by International Chamber of Commerce (ICC) which means that the seller delivers the named point of shipment, or procures the goods already delivered.”

Answer 31

Free on Board (FOB)

Question 32


shall refer to goods liable to perish or goods
that depreciate greatly in value while stored or which cannot be kept without great disproportionate expense.13

Answer 32

Perishable Goods