CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC.
in coordination with
PEDREZA CUSTOMS AND TARIFF WEBINARS
Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila
Contacts - Globe: 09063811016 / 09068172757 Email: pedrezasem@[Link] FB: [Link]/[Link]/
2023 CUSTOMS LAWS, RULES, REGULATIONS, ETHICS and CUSTOMS BROKER PRACTICES REVIEW – DAY 12
1) CAO 05-2019 Rules and Regulations Governing the Registration of Customs Brokers;
2) PRC Resolution 2017-1033 – Revised Rules in Administrative Investigations
Atty. Norberto V. Castillo, LCB, MBA
REGISTRATION. NOT ACCREDITATION
• Section 1200. Customs Brokers and Other Service Providers.— Upon the recommendation of the Commissioner, the
Secretary of Finance shall issue the necessary rules and regulations for the registration of customs brokers and the
accreditation of other customs service providers to ensure compliance with this Act and the rules and regulations that
shall be promulgated to implement it.
• The Case of Airlift Asia Customs Brokerage, Inc. and Allan G. Benedicto vs. Court of Appeals, Commissioner of Customs and
Secretary of Finance, G.R. No. 183664, July 28, 2014).
CAO 05-2019
• Implements:
• Section 1200 and Section 1226 of CMTA;
• RA 9280;
• DOF Department Order No. 011-2018
• “Registration” – shall refer to the process of recording and/or registering Customs Brokers desiring to lodge, sign
and process goods declaration, and represent importers or exporters before the Bureau of Customs in the Bureau’s
automated system.
Customs broker acting as declarant
• Shall be presumed to be the agent of the consignee or importer and as such may be made accountable and liable for any
violation of the CMTA and other related laws.
Customs broker who is also an employee of a Customs broker
• Need not apply for a separate registration as long as his name appears in the Notarized list of Customs Broker’s
Representative submitted by the registered customs broker.
A CB representative authorized to act for and in behalf of a customs broker in the processing of entries, permits and other customs
documents related to the Customs broker’s practice of his/her profession must possess the following minimum qualifications:
• Must be a Filipino citizen of legal age;
• Of good moral character, which certificate may be secured from previous employer, if applicable, or from the educational
institution, if newly graduate;
• Has completed a training program or seminar for the current year conducted by the AIPO with a Certificate of Attendance;
• Must hold a valid NBI Clearance; and
• Other qualifications that the Bureau may require.
AMO (Account Management Office)
• Shall be responsible for processing the applications for the registration and the issuance of Certificate of Registration of
Customs Brokers desiring to conduct their business with the Bureau.
• AMO Satellite Offices may be created outside Metro Manila. Prior thereto, applications may be filed with the District Collector
through the CIIS of the District where the CB regularly transacts.
The AMO shall perform the following:
a) Receive and process applications for the registration of customs brokers with complete supporting documents.
The receiving officer shall perform a Preliminary Assessment of the Application. The officer shall immediately inform the
applicant of any deficiency in the requirements.
The officer shall assign a unique identification number to an application which shall be the identifying number for all
subsequent transactions regarding the application.
b) Keep and maintain file of all Customs Brokers applying for registration with complete record of the applications and final
disposition and other matters such as records of investigation involving violations of laws, rules and regulations.
c) Transmit to the BIR on a quarterly basis, the list of approved or registered Customs brokers for post-registration validation of
the tax compliance; and
d) Such other tasks as may be directed by the Commissioner from time to time.
PROCEDURE OF NEW APPLICATION FOR REGISTRATION
Atty. Norberto V. Castillo, CB, MBA Page 1 of 4
CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC.
in coordination with
PEDREZA CUSTOMS AND TARIFF WEBINARS
Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila
Contacts - Globe: 09063811016 / 09068172757 Email: pedrezasem@[Link] FB: [Link]/[Link]/
• Duly accomplished Application for Registration under oath and a copy shall be filed with the AMO upon payment of non-
refundable fee of P1,000 which BCOR shall be attached to the application.
• Supporting documents:
• Valid PIC;
• Printed CPRS Profile;
• BIR COR (BIR form no. 2303)
• Latest ITR duly received by the BIR, if applicable;
• Good standing certificate issued by the AIPO and by the PRBCB;
• Duly accomplished form (Certified List of Regular Clients or Affidavit of No Client for New Customs Brokers);
• Notarized list of CB Representatives with their specimen signatures and valid NBI Clearance or Affidavit of No CB
Representative.
Grounds for Denial of Application
• Absence or misrepresentation of material information;
• Submission of falsified or spurious documents;
• Conviction of an offense pursuant to Section 1401 of CMTA
The Commissioner shall approve or disapprove the application upon recommendation of AMO, or CIIS.
• In case of disapproval, a notice of disapproval clearly stating the grounds therefor shall be signed and served to the applicant
copy furnished the AIPO. The CB, at any time, may refile application.
• In cases where the application is disapproved on the ground other than lack of documentary requirements, the applicant may
file an MR(10 days) or Appeal (15 days) on the denial.
Issuance, Form, Effect, and Validity of COR for Individual CB and GPP.
• If AMO finds the application in order and complete, it shall prepare a COR under its official seal for signature of the
Commissioner upon payment of documentary stamps tax;
• Upon approval of the application, a COR shall be issued to the applicant under the Bureau’s seal (example: CCN 0000-2019);
• The COR shall be valid for 3 years from the year of issuance unless suspended or revoked for cause. Provided, that, every
year in between the three-year period, the CB must submit the annual reportorial requirements to update his profile and submit
Affidavit of Change of Circumstances or Affidavit of No Change.
RENEWAL OF REGISTRATION
• Period:
• Within one month prior to expiration of COR, the CB may file an application for renewal of registration. No application
for renewal shall be accepted if filed within 45 working days prior to the date of expiration, which shall be considered
as new application;
• Payment of Renewal Fee of P1,500:
• Supporting Documents:
• Valid PIC;
• ITR for the last 3 years;
• Good standing certificates issued by the AIPO and PRBCB;
• Notarized list of representatives with specimen signatures and SSS Certificate of Membership (Form R1)
• Valid NBI Clearance ; or
• Affidavit of not CB Representative.
VIOLATIONS
• Light Offense – For violation of Sections 5.7.1. and 5.7.2.
• Grave Offense – For violation of Sections 5.7.3. to 5.7.7. and 5.8. to 5.14.
• 5.7.1. - Mandatory maintenance and updating of Email Address and Contact numbers;
• 5.7.2. – Display of Certificate;
• 5.7.3. – Lodgment of Goods Declaration;
• 5.7.4. – Record-keeping;
• 5.7.5. – Misrepresentation by omission or commission;
• 5.7.6. – Error or omission by clients;
• 5.7.7. Illegal Schemes;
• 5.8. – Retention of Records;
• 5.9. – Interference with Examination of Records;
• 5.10. – Diligence in correspondence and paying monies;
• 5.11. – False information;
• 5.12. – Undue influence upon government officials and employees;
• 5.13. – Misuse of Registration Privilege;
• 5.14. – Relations with a CB whose COR has been cancelled or suspended.
Atty. Norberto V. Castillo, CB, MBA Page 2 of 4
CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC.
in coordination with
PEDREZA CUSTOMS AND TARIFF WEBINARS
Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila
Contacts - Globe: 09063811016 / 09068172757 Email: pedrezasem@[Link] FB: [Link]/[Link]/
PENALTIES
• First Offense –
• Severe warning for Light Offense.
• For Grave Offense, suspension of 6 months or fine of P100,000.00
• Second Offense –
• Suspension of 1 year for Light Offense.
• For Grave Offense Fine of P200,000.00
• Third Offense –
• P300,000.00 for Light Offense.
• For Grave Offense Revocation of Registration
Coordination with PRBCB
• The Commissioner may coordinate with the PRBCB on the investigation, prosecution, revocation of the license of the violating
customs broker.
CANCELLATION, DELISTING, REVOCATION OF REGISTRATION
• GROUNDS:
• Deliberate failure or refusal without justifiable reason to comply with the duties and responsibilities of CB;
• Violation of laws, rules and regulations.
• Provided ,that, no CB shall be delisted or suspended without notice and hearing and final decision before the appropriate
office in the Bureau.
• The AMO shall furnish the AIPO with the list of CBs with pending or resolved cases of revocation or registration in the Bureau.
GPP
• Application fee – P3,000
• Renewal Fee – P5,000
• Supporting documents:
• Articles and By-laws of the GPP with COR issued by the SEC;
• TIN of the GPP;
• BIR COR of the GPP;
• Latest Mayor’s Permit or Business License;
• Notarized list of representatives;
• Resignation, Retirement, Separation or Death of a partner shall not result in the cancellation of the COR of the GPP but only
that of the partner concerned
PRC RULES IN ADMINISTRATIVE INVESTIGATIONS [Resolution No. 2017-1033(A)]
SCOPE
(to conduct investigation, hear and decide cases, and resolve appeals involving:)
• A Chairperson, Vice Chairperson or any Member of the Board for neglect of duty, incompetence, unprofessional, unethical,
immoral or dishonorable conduct, commission of irregularities in the licensure examinations which taint or impugn the integrity
and authenticity of the results of the said examination, to determine if the aforementioned officials are fit to continue as such;
• Officer and employees of the Commission for violation of RA 8981, or the Civil Service Law, Rules and Regulations;
• A person who is a registered and licensed professional of the Commission, a holder of a special temporary permit, an
applicant for examination, an examinee, an applicant for registration without examination, or a holder of an accreditation as
CPD provider or as an AIPO/APO, holder of a certificate of compliance, COR for the corporate practice of profession, or
certificate of authority to operate, issued by the Commission who:
• Practices a regulated profession or occupation without being authorized by law or without being registered with the
concerned Board;
• Commits any of the prohibited acts provided in the PRL, Code of Ethics promulgated by the concerned Board.
Presence of a Board Member
• The presence of a Board Member shall be required in cases where the issue strictly involves the practice of the profession. In
such cases, the hearing shall be presided by at least one member of the Board concerned
Pleadings and Motions
Atty. Norberto V. Castillo, CB, MBA Page 3 of 4
CLAP CUSTOMS REVIEW & CENTER FOR PROFESSIONAL DEVELOPMENT, INC.
in coordination with
PEDREZA CUSTOMS AND TARIFF WEBINARS
Room 209, 2nd Floor, Manuel F. Tiaoqui Bldg., Plaza Sta. Cruz, Manila
Contacts - Globe: 09063811016 / 09068172757 Email: pedrezasem@[Link] FB: [Link]/[Link]/
• All pleadings and motions filed before the Commission and the Board shall be in 2 legible copies plus such number of as there
are respondents, accompanied by a soft copy of the document to be electronically mailed to the address provided by the
hearing officer.
Filing and Service of Pleadings and Motions
• All pleadings and motions shall be filed with the Legal and Investigation Division of the Central Office, or with the Regional
Office, as applicable either personally or by registered mail.
Complaint
• A complaint shall be verified, or embodied in an affidavit, which shall be accompanied by a certification of non-forum shopping
Complaint, Form and Content
• Full name and complete current address of the complainant and the respondent;
• Respondent’s profession together with his COR number and date of issuance, if known;
• The Licensure examination he has applied for or taken, in case the respondent is an examinee, and the date/s thereof, if
known;
• A brief narration of the material facts which show the acts or omissions allegedly committed by the respondent constituting the
charge, offense or cause of action;
• The disciplinary action prayed for; and
• Certified True Copies of documentary evidence, and the affidavits of witnesses, if any.
PRELIMINARY DETERMINATION
• Upon assignment of the case, the hearing officer shall determine whether”
• The Commission or the Board has jurisdiction over the subject matter of the complaint;
• A cause of action exist; and
• The complaint or formal charge is sufficient in form and substance.
• The HO may dismiss the complaint for lack of jurisdiction, lack of legal capacity of the complainant, or for failure to attach a
Certificate to File Action from the Lupong Tagapamayapa, if applicable;
• The HO may refer the complaint to Conciliation of the LID if there exist prima facie case against the respondent;
• Refer the matter to the DOJ for possible institution of criminal action;
• Issue summons upon determination of the jurisdiction.
ANSWER
• Verified Answer or Counter-Affidavit
• Order of Default. An order of default shall be issued by the Board for failure of the respondent to file his verified answer or
counter-affidavit within 15 days from receipt of summons. Complainant shall be directed to present his testimonial evidence
ex-parte by way of judicial affidavit and to file his written formal offer of exhibits, a memorandum decision, including their soft
copies within 10 days from the conclusion of the presentation evidence. The case shall then be deemed submitted for
decision.
PRE-TRIAL
• Pre-trial conference; effect of failure to appear.
• Filing of Pre-trial Brief
• A statement of willingness to enter into an amicable settlement, indicating the desired terms;
• A summary of admitted facts and proposed stipulation of facts;
• Issued to be tried or resolved;
• Documents or exhibits to be presented;
• Number and names and addresses of witnesses;
• Dates of Hearing;
• Willingness to submit the case for decision on the basis of position paper;
• Such other matters.
TRIAL, ORDER
1. Presentation by the Complainant of his evidence;
2. Cross examination of the complainant and his witnesses, if any, by the respondent, followed by re-direct examination and then
re-cross examination;
3. Presentation by the respondent of his evidence;
4. Cross examination of the respondent and his witnesses, if any, by the complainant, followed by re-direct examination and then
re-cross examination.
Markings of evidence or exhibits
DECISION (30 days)
• Motion for Reconsideration:
• Grounds:
• Fraud, accident, Mistake or excusable negligence
• Newly discovered evidence
• Imposition of excessive penalty or insufficiency of evidence to justify the decision.
• Entry of Judgment
• Certificate of Finality
APPEAL
• To the Commission within 15 days from receipt of decision
Atty. Norberto V. Castillo, CB, MBA Page 4 of 4
