The customs administrative order (CAO) implementing a new advance ruling system for valuation and rules of origin (RO) in the Philippines will take effect on November 15.
CAO 03-2016, which was signed and approved last month, covers the establishment of an advance ruling system for customs valuation methodology and preferential and non-preferential RO.
The CAO is pursuant to Sections 1100-1104 and related provisions under Republic Act (R.A.) No. 10863, otherwise known as the Customs Modernization and Tariff Act (CMTA).
Sections 1100 to 1104 discuss classification ruling, valuation ruling, ruling on the rules of origin, conditions for application and effect of advance rulings, and administrative and judicial appeals.
The order makes advance ruling—an official written and binding ruling issued by the Bureau of Customs (BOC) upon the request of an importer, foreign exporter, or authorized agent—now part of the law.
The ruling gives an assessment of origin or treatment to be applied to a certain element of customs value, or to other matters related to the importation or exportation of goods under customs jurisdiction, prior to an import or export transaction for a specified period.
CAO 03-2016 is the second CAO signed to implement the provisions of the CMTA. It covers requests for advance rulings concerning the tariff classification of goods filed with the Tariff Commission for determination, and requests for rulings on other matters related to importation or exportation of goods as provided under Section 113 of the CMTA.
“To ensure that an Advance Ruling application does not relate to any on-going trade transaction, a request for Advance Ruling should be submitted to the Bureau at least 90 calendar days before the date of the importation in question, which is the date of lodgement of goods declaration,” the order states.
BOC will be issuing the advance ruling or revalidation within 30 working days of receipt of request or of additional documents or information.
The agency may decline a request for an advance ruling if it involves a matter that is before the courts, the subject of an administrative review, or under post-clearance audit. It may also turn down a request if the same requesting party already filed one for the same goods; “however an earlier request filed by an agent shall be declined if a latter request is filed by the principal.”
Another ground for denial is if the request is based on a hypothetical situation.
An advance ruling takes effect on the date issued, unless another date is specified in the ruling, “provided that the facts or circumstances on which the ruling is based remain unchanged as of the time of importation.”
The ruling is valid for three calendar years unless a shorter period is indicated.
The customs commissioner may issue supplementary rules and regulations to effectively implement CAO 03-2016. – Roumina Pablo
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