WHILE abandoned and returned shipment incidents in the country remain low at present, the Bureau of Customs (BOC) still reiterated the importance of raising awareness on the export and import laws and regulations it implements.
The case of abandonment happens when an importer renounces his interest and property rights over his shipments; relinquishes his title to a cargo at the port of destination and then ownership is vested on the government; or transfers his goods or assets to another party in order to file an insurance claim for total loss.
BOC Ninoy Aquino International Airport (Naia) Aircraft Operations Division Acting Assistant Chief Amalia B. Apolonio told the BusinessMirror abandoned goods under their management remains minimal at 1 percent.
“Abandoned goods pertain to the imported items. Papasok lang sila sa export [category] kapag i-shi-ship out na kaya talagang napaka-minimal [Abandoned goods pertain to the imported items. They will fall under the export category once they are shipped out, which seldom happen],” she said.
An imported item will be considered abandoned if returned to the country and remain unclaimed within the 30-day period of its storage in the BOC warehouse.
The so-called express abandonment is committed when an importer or his agent signifies his disinterest of claiming it by writing the Customs collector of his intent on or before the one-month time imposed by the agency.
“Implied abandonment” is done if the owner, importer or consignee, after due notice, fails to file goods declaration. It also happens if the claimant is yet to file an entry for his corresponding goods, or he already filed an import entry but failed to settle the assessed duties and taxes within the reglamentary period of 15 days from the date of final assessment.
Another reason would be the failure to move out the shipment from the BOC within 30 days after payment or accomplishing the first two requirements.
Expressly abandoned items shall be deemed the property of the government and will be disposed of through public auction, donation to another state agency or declared for official use of the BOC.
Goods subject to sale at public bidding will be sold at a price not less than the landed cost of the goods adjusted for normal depreciation.
The proceeds of the sale of abandoned items, after deduction of any duty and tax and all other charges and expenses incurred will be turned over to those persons due to receive them, or if impossible, held at their disposal for a specified period.
Once the deadline lapses the balance will then be transferred to the forfeiture fund under the name and management of the BOC to be used to facilitate customs seizure, abandonment and forfeiture proceedings, enhance customs intelligence and enforcement capability to prevent smuggling, or to support modernization program and other operational efficiency and trade-facilitation efforts of the bureau.
If the BOC has not disposed of the abandoned cargo, the owner, importer or consignee may reclaim it provided that all legal requirements have been complied.
“As far as the Naia is concerned, in 2016 we had two biddings,” Apolonio said, without citing the exact total transaction value.
Meanwhile, returned shipments in the country are a “bit higher” compared to abandoned goods yet still manageable, she said sans revealing the exact figure.
Exported products usually returned to the Philippines from any destination abroad are defective equipment subject for repair or for exhibit purpose only.
One example that an exporter may experience this problem is if the specification of their items does not match the order of their clients.
In case the exported product was previously imported, BOC Naia Export Division Supervising Trade Control Examiner Lorna J. Morales said import documents must be presented since there are goods that fall under the “temporary importation” category.
With surety bond, the item or equipment is just for exhibition or demonstration here and shall be returned back to its place of origin, she further explained. “The other basic documents needed are the commercial invoices, packing list and certificate of identification with Customs Documentary Stamp, among others,” Morales said.
Because time is important in the import or export of products, securing all the legal papers and adhering to Customs procedures are deemed necessary to avoid abandoned or returned shipments.
“Unlike in seaports wherein unloading of the package will take days, we, at Naia, process [the entry or exit of products] for one hour only. Once you exceed even for a minute, it will really incur additional cost to the importer or exporter,” she said.
At BOC, educating the owners, exporters/importers or consignees, and even the public on export and import policies is a top priority.
Even though the cases of abandonment or returned cargoes are not rampant today, the bureau continues to heighten awareness on the stakeholders.
“I think we still lack information dissemination,” Apolonia said. “For stakeholders’ information, we post and always update the BOC regulations in our web site. Also, we conduct public consultation if ever there are new laws of other government agencies we have to implement as frontliners to them.”