Boc ready for ‘circumvention’ of de minimis rules

CONSOLIDATED shipments with one consignee but several invoices may be assessed in its totality to determine if it falls under the P10,000 tax-free value, according to the latest Bureau of Customs (Boc) issuance.

Customs Commissioner Nicanor E. Faeldon signed Customs Memorandum Order ( CMO) 28-2016 this week, which set the guidelines in implementing the P10,000 de minimis value set by the Customs Modernization and Tariff Act (CMTA).

Under the CMTA, whose de minimis provisions was implemented through customs administrative order ( CAO) no. 02-2016, all imports that do not exceed P10,000 in value will be free from customs tax and duties.

Under the procedures set in the guidelines, Customs Officers, in general, should accept the value declared by the sender, passenger, recipient or importer of the de minimis declared goods.

If he has reason to doubt this declaration, he will require the above to submit evidence of the value, including invoices.

In general, shipments made up of several packages and invoices will be assessed based on the value of each invoice.

But there are special cases for consolidated shipments, whether by air or by sea, where there is one package or parcel, several invoices and several airway bills/ bills of landing.

“This is considered a case of splitting bills of landing to circumvent the De Minimis rule,” the memorandum order read, adding that these cases would be assessed based on the total value of all invoices.

The CMO is effective immediately. Also related to the P10,000 de minimis value, the Boc issued CAO no. 04-2016 which updated conditions and participation in public bidding to require no bonds if the floor price of a sale lot is P10,000 or below instead of the price being the previous below P10,000 threshold.

The Boc is holding a public consultation on implementing the CMTA provisions on duty drawbacks today at its Port of Manila office.

Another public consultation on baggage processing will be held on Nov. 24.