CHAPTER 1

CUSTOMS JURISDICTION

SEC. 300. Customs Jurisdiction.

For the effective implementation of this Act, the Bureau shall exercise jurisdiction over all seas within
Philippine territory and all coasts, ports,airports, harbors, bays, rivers and inland waters whether
navigable or not from the sea and any means of conveyance. The Bureau shall pursue imported goods
subject to seizure during its transport by land, water and air and shall exercise jurisdiction as may be
necessary for the effective enforcement of this Act. When a vessel or aircraft becomes subject to seizure
for violation of this Act, a pursuit of such vessel or aircraft which began within the territorial waters or
air space may continue beyond the same, and the vessel or aircraft may be seized in the high seas or
international air space.

CHAPTER 2

CUSTOMS CONTROL

SEC. 301. Customs Control Over Goods. - All goods, including means of transport, entering or leaving the
customs territory, regardless of whether they are liable to duties and taxes, shall be subject to customs
control to ensure compliance with this Act. In the application of customs control, the Bureau shall
employ audit-based controls and risk management systems, use automation to the fullest extent
possible, and adopt a compliance measurement strategy to support risk management. The Bureau shall
seek to cooperate and conclude mutual administrative assistance agreements with other customs
administrations to enhance customs control. The Bureau shall consult, coordinate, and cooperate with
other government regulatory agencies, free zones authorities, and the customs stakeholders, in general,
to enhance customs control.

SEC. 302. Enforcement of Port Regulation of the Bureau of Quarantine. Customs officials and employees
shall cooperate with the quarantine authorities in the enforcement of the port quarantine regulations
promulgated by the Bureau of Quarantine and shall give effect to the same insofar as connected with
matters of shipping and navigation.

SEC. 303. Control Over Premises Used for Customs Purposes. The Bureau shall, for customs purposes,
have exclusive control, direction and management of customs offices, facilities, warehouses, ports,
airports, wharves, infrastructure and other premises in the Customs Districts, in all cases without
prejudice to the general police powers of the local government units (LGUs), the Philippine Coast Guard
and of law enforcement agencies in the exercise of their respective functions.

SEC. 304. Power of the President to Subject Premises to Customs Jurisdiction. When public interest
requires, the President may, by executive order, declare any public wharf, landing place, infrastructure,
street or land, in any port of entry under the jurisdiction of the Bureau as may be necessary, for customs
purposes and/or to authorize a port or terminal operator to transfer overstaying cargoes in an inland
depot or terminal.

SEC. 305. Trespass or Obstruction of Customs Premises. No person shall enter or obstruct a customs
office, warehouse, port, airport, wharf, or other premises under the control of the Bureau without prior
authority, including the streets or alleys where these facilities are located.

SEC. 306. Special Surveillance for the Protection of Customs Revenue and Prevention of Smuggling. The
Bureau shall conduct surveillance on vessels or aircrafts entering Philippine territory and on imported
goods entering the customs office: Provided, That the function of the Philippine Coast Guard to prevent
and suppress the illegal entry of these goods, smuggling and other forms of customs fraud and violations
of maritime law and its proper surveillance of vessels entering and/or leaving Philippine territory as
provided in Republic Act No. 9993, otherwise known as the "Philippine Coast Guard Law of 2009", shall
continue to be in force.

SEC. 307. Temporary Storage of Goods. Subject to the rules and regulations to be issued by the
Secretary of Finance, the Commissioner shall establish a system for temporary storage of imports prior
to goods declaration in case of abandoned or overstaying goods. All importations entered through a
formal entry process shall be covered by a letter of credit or any verifiable commercial document
evidencing payment or in cases where there is no sale for export, by any commercial document
indicating the commercial value of the goods.

CHAPTER 3

TYPES OF IMPORTATION

SEC. 115. Treatment of Importation. Imported goods shall be deemed "entered" in the Philippines for
consumption when the goods declaration is electronically lodged, together with any required supporting
documents, with the pertinent customs office.

SEC. 116. Free Importation and Exportation. - Unless otherwise provided by law or regulation, all goods
may be freely imported into and exported from the Philippines without need for import and export
permits, clearances or licenses.

(f) Infringing goods as defined under the Intellectual Property Code and related laws; and

(g) All other goods or parts thereof, which importation and exportation are explicitly prohibited by law
or rules and regulations issued by the competent authority.

SEC. 117. Regulated Importation and Exportation. Goods which are subject to regulation shall be
imported or exported only after securing the necessary goods declaration or export declaration,
clearances, licenses, and any other requirements, prior to importation or exportation. In case of
importation, submission of requirements after arrival of the goods but prior to release from customs
custody shall be allowed but only in cases provided for by governing laws or regulations.

SEC. 118. Prohibited Importation and Exportation. - The importation and exportation of the following
goods are prohibited:

(a) Written or printed goods in any form containing any matter advocating or inciting treason, rebellion,
insurrection, sedition against the government of the Philippines, or forcible resistance to any law of the
Philippines, or written or printed goods containing any threat to take the life of, or inflict bodily harm
upon any person in the Philippines;

(b) Goods, instruments, drugs and substances designed, intended or adapted for producing unlawful
abortion, or any printed matter which advertises, describes or gives direct or indirect information where,
how or by whom unlawful abortion is committed;

(c) Written or printed goods, negatives or cinematographic films, photographs, engravings, lithographs,
objects, paintings, drawings or other representation of an obscene or immoral character;

(d) Any goods manufactured in whole or in part of gold, silver or other precious metals or alloys and the
stamp, brand or mark does not indicate the actual fineness of quality of the metals or alloys;

(e) Any adulterated or misbranded food or goods for human consumption or any adulterated or
misbranded drug in violation of relevant laws and regulations; The restriction to import or export the
above stated goods shall include the restriction on their transit.

SEC. 119. Restricted Importation and Exportation. Except when authorized by law or regulation, the
importation and exportation of the following restricted goods are prohibited:

(a) Dynamite, gunpowder, ammunitions and other explosives, firearms and weapons of war, or parts
thereof;

(b) Roulette wheels, gambling outfits, loaded dice, marked cards, machines, apparatus or mechanical
devices used in gambling or the distribution of money, cigars, cigarettes or other goods when such
distribution is dependent on chance, including jackpot and pinball machines or similar contrivances, or
parts thereof;

(c) Lottery and sweepstakes tickets, except advertisements thereof and lists of drawings therein;

(d) Marijuana, opium, poppies, coca leaves, heroin or other narcotics or synthetic drugs which are or
may hereafter be declared habit forming by the President of the Philippines, or any compound,
manufactured salt, derivative, or preparation thereof, except when imported by the government of the
Philippines or any person duly authorized by the Dangerous Drugs Board, for medicinal purposes;

(e) Opium pipes or parts thereof, of whatever material;and

(f) Any other goods whose importation and exportation are restricted.
CHAPTER 1

CUSTOMS JURISDICTION

SEC. 300. Customs Jurisdiction.

For the effective implementation of this Act, the Bureau shall exercise jurisdiction over all seas within
Philippine territory and all coasts, ports,airports, harbors, bays, rivers and inland waters whether
navigable or not from the sea and any means of conveyance. The Bureau shall pursue imported goods
subject to seizure during its transport by land, water and air and shall exercise jurisdiction as may be
necessary for the effective enforcement of this Act. When a vessel or aircraft becomes subject to seizure
for violation of this Act, a pursuit of such vessel or aircraft which began within the territorial waters or
air space may continue beyond the same, and the vessel or aircraft may be seized in the high seas or
international air space.

CHAPTER 2

CUSTOMS CONTROL

SEC. 301. Customs Control Over Goods. - All goods, including means of transport, entering or leaving the
customs territory, regardless of whether they are liable to duties and taxes, shall be subject to customs
control to ensure compliance with this Act. In the application of customs control, the Bureau shall
employ audit-based controls and risk management systems, use automation to the fullest extent
possible, and adopt a compliance measurement strategy to support risk management. The Bureau shall
seek to cooperate and conclude mutual administrative assistance agreements with other customs
administrations to enhance customs control. The Bureau shall consult, coordinate, and cooperate with
other government regulatory agencies, free zones authorities, and the customs stakeholders, in general,
to enhance customs control.

SEC. 302. Enforcement of Port Regulation of the Bureau of Quarantine. Customs officials and employees
shall cooperate with the quarantine authorities in the enforcement of the port quarantine regulations
promulgated by the Bureau of Quarantine and shall give effect to the same insofar as connected with
matters of shipping and navigation.

SEC. 303. Control Over Premises Used for Customs Purposes. The Bureau shall, for customs purposes,
have exclusive control, direction and management of customs offices, facilities, warehouses, ports,
airports, wharves, infrastructure and other premises in the Customs Districts, in all cases without
prejudice to the general police powers of the local government units (LGUs), the Philippine Coast Guard
and of law enforcement agencies in the exercise of their respective functions.

SEC. 304. Power of the President to Subject Premises to Customs Jurisdiction. When public interest
requires, the President may, by executive order, declare any public wharf, landing place, infrastructure,
street or land, in any port of entry under the jurisdiction of the Bureau as may be necessary, for customs
purposes and/or to authorize a port or terminal operator to transfer overstaying cargoes in an inland
depot or terminal.

SEC. 305. Trespass or Obstruction of Customs Premises. No person shall enter or obstruct a customs
office, warehouse, port, airport, wharf, or other premises under the control of the Bureau without prior
authority, including the streets or alleys where these facilities are located.

SEC. 306. Special Surveillance for the Protection of Customs Revenue and Prevention of Smuggling. The
Bureau shall conduct surveillance on vessels or aircrafts entering Philippine territory and on imported
goods entering the customs office: Provided, That the function of the Philippine Coast Guard to prevent
and suppress the illegal entry of these goods, smuggling and other forms of customs fraud and violations
of maritime law and its proper surveillance of vessels entering and/or leaving Philippine territory as
provided in Republic Act No. 9993, otherwise known as the "Philippine Coast Guard Law of 2009", shall
continue to be in force.

SEC. 307. Temporary Storage of Goods. Subject to the rules and regulations to be issued by the
Secretary of Finance, the Commissioner shall establish a system for temporary storage of imports prior
to goods declaration in case of abandoned or overstaying goods. All importations entered through a
formal entry process shall be covered by a letter of credit or any verifiable commercial document
evidencing payment or in cases where there is no sale for export, by any commercial document
indicating the commercial value of the goods.

CHAPTER 3

TYPES OF IMPORTATION

SEC. 115. Treatment of Importation. Imported goods shall be deemed "entered" in the Philippines for
consumption when the goods declaration is electronically lodged, together with any required supporting
documents, with the pertinent customs office.

SEC. 116. Free Importation and Exportation. - Unless otherwise provided by law or regulation, all goods
may be freely imported into and exported from the Philippines without need for import and export
permits, clearances or licenses.

(f) Infringing goods as defined under the Intellectual Property Code and related laws; and

(g) All other goods or parts thereof, which importation and exportation are explicitly prohibited by law
or rules and regulations issued by the competent authority.

SEC. 117. Regulated Importation and Exportation. Goods which are subject to regulation shall be
imported or exported only after securing the necessary goods declaration or export declaration,
clearances, licenses, and any other requirements, prior to importation or exportation. In case of
importation, submission of requirements after arrival of the goods but prior to release from customs
custody shall be allowed but only in cases provided for by governing laws or regulations.

SEC. 118. Prohibited Importation and Exportation. - The importation and exportation of the following
goods are prohibited:

(a) Written or printed goods in any form containing any matter advocating or inciting treason, rebellion,
insurrection, sedition against the government of the Philippines, or forcible resistance to any law of the
Philippines, or written or printed goods containing any threat to take the life of, or inflict bodily harm
upon any person in the Philippines;

(b) Goods, instruments, drugs and substances designed, intended or adapted for producing unlawful
abortion, or any printed matter which advertises, describes or gives direct or indirect information where,
how or by whom unlawful abortion is committed;

(c) Written or printed goods, negatives or cinematographic films, photographs, engravings, lithographs,
objects, paintings, drawings or other representation of an obscene or immoral character;

(d) Any goods manufactured in whole or in part of gold, silver or other precious metals or alloys and the
stamp, brand or mark does not indicate the actual fineness of quality of the metals or alloys;

(e) Any adulterated or misbranded food or goods for human consumption or any adulterated or
misbranded drug in violation of relevant laws and regulations; The restriction to import or export the
above stated goods shall include the restriction on their transit.

SEC. 119. Restricted Importation and Exportation. Except when authorized by law or regulation, the
importation and exportation of the following restricted goods are prohibited:

(a) Dynamite, gunpowder, ammunitions and other explosives, firearms and weapons of war, or parts
thereof;

(b) Roulette wheels, gambling outfits, loaded dice, marked cards, machines, apparatus or mechanical
devices used in gambling or the distribution of money, cigars, cigarettes or other goods when such
distribution is dependent on chance, including jackpot and pinball machines or similar contrivances, or
parts thereof;

(c) Lottery and sweepstakes tickets, except advertisements thereof and lists of drawings therein;

(d) Marijuana, opium, poppies, coca leaves, heroin or other narcotics or synthetic drugs which are or
may hereafter be declared habit forming by the President of the Philippines, or any compound,
manufactured salt, derivative, or preparation thereof, except when imported by the government of the
Philippines or any person duly authorized by the Dangerous Drugs Board, for medicinal purposes;

(e) Opium pipes or parts thereof, of whatever material;and

(f) Any other goods whose importation and exportation are restricted.