MANILA, Philippines – Formerly assessed at the port of final destination, shipments imported by sea are now mandated to file consumption entries at the port of first discharge, according to a recent order issued by the Bureau of Customs.
Under Customs Memorandum Order 28-2015, Customs Commissioner Bert Lina directed that all sea shipments, intended for use or consumption in the country, will be covered by the necessary import entry for immediate consumption, whether formal or informal, at the assesment office at the port of first discharge upon importation into the Philippine territory even if the final destination is another port.
“This now requires the immediate filing of import entries and the payment of duties and taxes of goods at the port of first discharge instead of the practice of allowing the filing of entry and payment of duties in the port of final destination,” according to Customs Deputy Commissioner for Assesment and Operations Agaton Uvero.
To illustrate, the old practice allows cargo discharged in a Manila port to be transhipped to Cebu (as port of final destination) where the import entry will then be filed, and the duties and taxes will be assessed and paid.
Under the new rules, the importer will now have to immediately file an import entry and pay duties and taxes in Manila before the same can be transported to Cebu.
“Transshipments will no longer be allowed and the filing of the entry at the final destination shall be strictly prohibited. That way, we prevent containers from [going] missing during transshipment,” he added.
The order excludes shipments imported by accredited locators of the Philippine Economic Zone Authority (PEZA) and free ports; articles intended for use by accredited customs bonded warehouses; and those imported for immediate exportation.
The issued order is set to be effective immediately.
Transshipment rules tighten to prevent container losses
