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Customs Bonded Manufacturing Warehouses & Customs Common Bonded Manufacturing Warehouses

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by Rania Mujar on 20 January 2013

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Transcript of Customs Bonded Manufacturing Warehouses & Customs Common Bonded Manufacturing Warehouses

Our Group's discussion CBMW & CCBMW Establishment Importation Manufacturing Exportation Liquidation & Cancellation of Bond

LIQUIDATION AND BILLING DIVISION
Shall liquidate the entry within five days and forward the documents to the bonds division LIQUIDATION PROCESS

Operator/representative shall submit:
Statement of liquidation of raw materials
Bill of lading/airway bill
Operating Division concerned
The account officer assigned shall file a request for retrieval of the original working copy of warehousing entry and its attachments from WDRD. Thereafter, he/she shall compute, review and liquidate application for liquidation of raw materials in accordance with the established formula(s) of manufacture, within 15 days from the date of receipt of said application
In case if partial liquidation, the statement shall be forwarded direct to the bonds division which shall act on the request within three days upon receipt thereof
In case of full/final liquidation, the statement of liquidation shall be forwarded to by the concerned warehouse operating division to liquidation and billing division for liquidation of the entry CONSTRUCTIVE IMPORTATION
Original warehousing entry
Warehousing permit
Invoice of the seller
Boat note
Packing list
EXPORT DOCUMENTS
Statement of liquidation
Outward bill of lading/airway bill
Certificate of identification
Certificate of inspection and loading
Boat note
CONSTRUCTIVE EXPORTATION
Receipt of payment covering the sale
Outward bill of lading/airway bill
Certificate of identification
Boat note covering transfer
Certificate of liquidation of raw materials The Condemnation committee determines and verifies the following:
Quantity and whether wastages have any commercial value
The amount of wastages is within the verified formula of manufacture

LIQUIDATION OF MATERIALS, ENTRIES AND CANCELLATION OF BONDS DOCUMENTARY REQUIREMENTS
IMPORT DOCUMENTS
Original warehousing entry
Warehousing permit
Bill of lading/airway bill
Packing list/commercial invoice
Transshipment permit
Boat note
BY RE EXPORTATION
The operator shall likewise apply in writing in the collector of customs for re exportation giving the same information and following the procedure as described in slides no. 542-546
The procedure in exportation of export products as described in slides 528-540
BY CONDEMNATION
The operator shall apply in writing with the collector of customs a request for the disposition of wastages, together with the certification of the CBW Operator/warehouseman as to the occurrence of said wastages, specifying the following:
Import entry number covering waste materials, rejects and by products
Description of waste materials/ by products
Quantity and
Balance against the total imported raw materials covered by the import entry

Percentage against total imported raw materials covered by the import entry
Certification by CBW operator to the occurrence of the said wastages, rejects and by-products incident to the production of the export products
Customs examiner shall examine the wastages, rejects or by products and if found to have commercial value shall recommend payment of duties and taxes otherwise shall be condemned
Once application for payment is approved by the collector, the CBRC should be submitted to the operating division concerned if necessary. Withdrawal permit shall then be filed with the operating division concerned or equivalent unit
The operator may opt to pay in advance the duties and taxes on wastages, rejects and by products in the course of manufacture on the basis of the percentage of wastages determined and approved in the formula of manufacture
the inspector on board/stuffing supervisor shall further perform the following:
Prepare the certificate of inspection and loading
Sign the document only after actual loading on board the vessel
Distribute the boat note as follows:
Original – warehouseman/operator
Duplicate – PID/CCCD for future reference
Triplicate –operating division concerned or equivalent unit

The inspector on board/stuffing supervisor shall submit certificate of inspection and loading within 24 hours after the departure of the vessel as follows:
Original – operator – to be used in liquidating the entry
Duplicate – operating division concerned or equivalent unit
Triplicate – PID/CCCD for its file and future reference
EXPORT DIVISION
The trade control examiner shall process the export documents and, if, in order, the chief export division or his authorized representative shall sign the authority to load copy(blue copy) of the export declaration, if the export products require clearance from another government agency, such clearance shall be secured first before processing the export declaration, in addition shall also:
Transmit the authority to laod copy or the export declaration by official messenger to PID/CCCD which shall server as the authority for the inspector on board the vessel/stuffing supervisor to load the cargoes described in the document.

PID INSPECTORE/CCCD STUFFING SUPERVISOR
The inspector assigned on board/stuffing supervisor if conventional or containerize as the case may be shall receive by signing on the boat note over his printed name after ascertaining that the export seal and the package are in order
The inspector on board/stuffing supervisor shall immediately report to the chief, export division if the cargo is found to be tampered or export seal broke
WAREHOUSEMAN
The warehouseman shall:
Supervise the packing and loading to ensure that, only the correct quantity of the finished product examined and identified shall be loaded for export
Affix on the container/crates the export seal provided for the purpose
Prepare boatnote desribing thereon all particulars relating to the finished products to be exported and indicating the export seal number
Stamp the export declaration covering the exportation with “EXPORTATION UNDER SECTIONS 2001-2004”
CUSTOMS GUARD
The customs guard shall:
Escort/under guard the transfer from the warehouse to the port of loading the export cargoes covered by boat note
Deliver export cargoes to the inspector on board/CCCD stuffing supervisor
Ensure that the export cargoes are properly received
WAREHOUSING ASSESSMENT DIVISION
The customs examiner shall perform the following:
examine the finished products for export
Signs the certificate of identification, over his/her printed name
In case of open bonded warehouse, supervise the stuffing of export articles to the container and seals it
Submit export declaration to the export division
b. Distribute copies of certificate of identification to the different offices concerned by official messenger within 24 hours after signing the C1 as follows:
Original – inspector
Duplicate – warehouseman, if any
Triplicate – operating division concerned or equivalent unit
Quadruplicate – export division ( for its file and future reference)

RECONCILIATION OF IMPORTED MATERIALS AND LIQUIDATION ENTRIES
The processing of bond cancellation shall be in accordance with slides no. provided that the export documents of the transferee/buyer shall be used for the liquidation of entries of the CCBME for the account of both members

EXPORTATION
OPERATOR/REPRESENTATIVE
Before the articles are prepared for export, the operator shall give due notice in writing to WAD of the scheduled date of examination at least 2 days prior to the expected time of loading

e. In case the articles shall be transferred to the collection district other than where the CCBMW is licensed, the following operational procedures shall be further observed:
e.1 the district collector concerned shall send a telegram to the district collector of the port where the shipment is to be transferred/sold advising the latter of the following:
Nature and quantity of shipment
Container number/marks
Carrying vessel/aircraft
Names of transferor, transferee and CCBMW among other
e.2 the transfer shall be in accordance with slides no. 510-513 hereof and receipt of which shall be acknowledged by the deputy collector concerned and a telegram to the district collector where the goods originate. PROCEDURES
The members intending to have the transfer/sale shall duly inform the CCBMW operator who shall secure the approval of the District collector
The copies of the approval transfer/sale shall be furnished the chief operating division concerned or equivalent unit or FTI customs office and CCBMW operator
The article to be transferred/sold shall be examined/identified by a Customs Examiner, For this purpose, the customs examiner, shall accomplish and sign the certificate of identification, accompanied with commercial invoice and packing list among others.
The transfer shall be under guarded by the customs guard assigned thereat or by the accountable officer of the operator and covered by a boat note and the receipt of the articles shall be acknowledge thereon. Buyer shall file an import entry covering the finished products to be transferred to him in the entry processing division or equivalent unit in the port which has jurisdiction over the operator-buyer`s warehouse or to a Customs PEZA concerned within 5 days after such transfer stamped
The import entry shall be supported by the following documents:
Invoice of the seller or sales contract
Boat note
Packing list
There after, the same step shall be followed as regular importation
If the raw materials were verified to be completely, consumed the seller may effect cancellation of bond and liquidation of entry on the basis of sales by submitting the following:
Receipt of payment covering the sale
Certification of identification
Boat note covering transfer
Summary of usage of raw materials
Certificate of liquidation of raw materials If approved, the transfer of goods shall be made in the following manner:
Before, the articles are prepared for the transfer, the operator shall give notice in writing to the warehousing assessment division of the scheduled dated of examination at least two days prior to the expected time of transfer
The customs examiner shall examine the finished products before transfer as in ordinary exportation and shall issue a certificate of identification
The transfer shall be covered by a boat note duly processed by the warehouseman of the seller and shall be under guarded until received by the CBW warehouseman of the buyer or customs PEZA authority concerned.
If the operator-seller is operating under the Open Bonded Scheme, A copy of the boat note containing the same description of the goods in the sales contract and the name and address of the buyer shall be submitted within 24 hours after the transfer to the bonded warehouse division concerned duly signed by the accountable officer over his/her printed name and designation e. In cases of undervaluation, there shall be an adjustment of corresponding amount of bonds for the additional duties and taxes plus immediate payment of surcharge, or seizure, if warranted
f. In cases of misclassification and misdeclaration, if the articles as found are included imported, surcharge shall be immediately collected together with the adjustment of bonds for the additional duties and taxes, if not, seizure shall be instituted.
g. The entry shall be forwarded to the operating division concerned, unless duties and taxes and other charges are to be paid as a result of over quantity, misdeclaration or misclassification, in which case the entry shall be forwarded to the collection division.
h. Where seizure is warranted for the shipment, the entry shall be forwarded to the collector of customs together with its recommendation, copy furnished the warehousing documentation and records division for its information as to the status of the entry. DOCUMENTARY REQUIREMENTS

Letter of intent to transfer by the member for membership to another CCBMW
Sworn statement by the member that it has not outstanding obligation with its former CCBMW
Written approval by the former CCBMW to the transfer or reason for objecting within then working days from receipt of letter of intent otherwise the processing of import document shall be held in abeyance until the comment is submitted.
Acceptance letter of the new CCBMW, and its assumption of all liabilities of the member. In the Case of CCBMW operating under the FTI Customs Office

The District collector shall refer the same to the FTI collector who shall be responsible in assuring that the premises of the prospective members are spot checked by the FTI customs Warehouse Inspector
On the Basis of the report of the FTI Customs Warehouse Inspector and after evaluation of all documents submitted, the FTI collector shall submit his recommendation to the District Collector, POM, Thru the Deputy Collector for Administration who shall submit his recommendation after securing the usual clearances
The District collector shall thereafter endorse the application to the Commissioner for approval The Process of Operation
PAYMENT OF DUTIES AND TAXES
Wastages and by-products incident, to the process of manufacture in said bonded warehouse may be withdrawn for domestic consumption upon payment of duties equal to the duty which would be assessed and collected pursuant to law as if such waste or by-products were impacted from a foreign country
Operator shall apply in writing in the director for payment of duties and taxes of wastages, rejects and by products incurred in the production specifying the following:
Import entry number covering waste materials, by products
Description of waste materials, by-products
Quantity DEPOSITION OF WASTAGES, REJECTS, AND BY-PRODUCTS GENERAL CONSIDERATIONS
If the transfer/sale between accredited members belonging to the same CCBMW shall not be used to extend the original period of production and exportation counted from the date the imported materials are received by CCBMW operator.
Only semi finished/finished products which had undergone processing/manufacture by one member may be transferred/sold without the payment of duty to another member belonging to same CCBMW, provided that the transferee/buyer, member shall further process the same or use them ass inputs, holder, covering or containers of its own semi-finished/finished products for subsequent exportation.
Subsequent transfer/sale by the first transferee/buyer member to another member is not allowed
The transfer/sale shall be subject to the approval of the district collector who exercises jurisdiction, supervision and control of the CCBMW.
The CCBMW and the transferee/buyer shall be jointly responsible for the liquidation of the warehousing entries covering the products transferred or sold.
Transfer of materials required for garment manufacturing shall be subject to the rules and regulations and approval of the GTEB. TRANSFER/SALE OF SEMI-FINISHED/FINISHED PRODUCTS BETWEEN ACCREDITED MEMBERS BELONGING TO THE SAME CCBMW The operator of a CBMW shall apply in writing to the collector of Customs for his approval submitting the covering sales contract specifying the following:
Description and quantity of furnished products being sold
Description and quantity of raw materials used and import entry number covering the same SALE OF FINISHED PRODUCTS OF A BONDED MANUFACTURING WAREHOUSE TO OTHER BONDED MANUFACTRUING WAREHOUSE OR TO PEZA REGISTERED ENTERPRISE a. Before the transfer, the warehouseman shall conduct the inventory and identification of the materials to be such contracted. A form annex “G” shall be prepared containing the description of the materials to be transferred, the quantity and the requisition slip number(s)
For recording purposes, the document processor in charge of the operator`s logbook shall be duly furnished with a copy of the requisition slip.
b. Transfer of materials to sub contractors and return of finished products shall be covered by a boat note and need not be under guarded
c. All materials including wastages, shall be returned to the transferor/operator
d. The warehouseman/accountable officer shall submit a weekly reprot to the BMWD of all subcontracting jobs and their status including copies of boat note
e. For fabrics, only pre-cut materials shall be transferred to GTEB accredited sub contractor
f. If the materials to be transferred are other than pre-cut fabrics, authority shall be secured from GTEB for garment manufacturers FOR SUB CONTRACTING a. If operating under Open Bonded Scheme, for every requisition the operator shall prepare a production report in the form attached as Annex “II”, otherwise, the production report shall be countersigned by the warehouseman to be submitted weekly after the period specified in its production time in three copies:
One copy – BMWD
One Copy – Warehouseman
One Copy – Operator
b. If operating under Open Bonded Scheme, the copy fro the warehouseman, shall be submitted to the bonded warehouse srevice with the requisition slip PRODUCTION REPORT The operator shall prepare a requisition slip in accordance with the format in annex “G” and file it with the warehouseman of concerned warehouse
The warehouseman shall check the documents, and if in order, approve it and release the raw materials being requisitioned
A copy of the requisition slip shall be furnished the bonded manufacturing warehouse division concerned weekly for recording in the operator`s logbook.
If the operator is operating under the Open Bonded Scheme, the operator shall forward the requisition slip and the production report to the BMWD concerned as often as possible but in no case shall it be more than one week FILING OF REQUISITION SLIP FOR PRODUCTION OR EXPORT
CBW operators shall ensure that the raw materials that were first transferred to, and stored in the bonded warehouse, shall first be withdrawn for production. The same manner shall likewise be observed in the reconciliation of raw materials for adherence to the principle of first in first our (FIFO) system WITHDRAWAL OF MATERIALS FROM CBMW Upon presentation of the boat note, the warehouseman shall receive the cargoes to be stored in the warehouse. He shall ascertain that the seal(s) placed in the container is/are intact and any tampering thereof shall be duly noted on the boat note and reported immediately to the chief, bonded manufacturing warehouse division concerned for its appropriate action
Where the bonded warehouse is operating under the Open bonded Scheme, the cargo shall be received by the accountable officer at the pier or at the warehouse unless the transfer is under EPRS in which ease the cargo shall be received by the accountable officer at the warehouse by signing the boatnote over his printed name. WAREHOUSEMAN The wharfinger, upon receipt of the duly processed permit shall prepare the transfer of the cargoes to the bonded warehouse by accomplishing the boat note.
Where the importer/operator is a holder of CA-EPRS, transfer thereof shall be in accordance with Sec. V, par. 3 to 3.6 of CMO 45-88 PIERS AND INSPECTION DIVISION
Upon receipt of the entry the document processor shall enter in the operator`s logbook all the necessary
The operator`s logbook shall be the 24-column columnar book and shall have the information as in the Annex “F”
The original warehousing permit shall be forwarded to the Piers and inspection division by official messenger
The entry together with the other supporting documents shall be forwarded to the warehousing documentation and records division for safekeeping and future retrieval. WAREHOUSING OPERATING DIVISON CONCERNED Payment for duties and taxes and other charges shall be collected after which the entry is returned to warehousing assessment division COLLECTION DIVISION All examination shall be conducted at the pier. A 100% examination may be conducted upon instruction of the district collector
For operators who are holders of CAEPRS, the examination shall be conducted in accordance with CMO 45-88
Examination returns shall be complete as to description, quantity and weight so that accounting of each imported raw materials, upon liquidation, can be made. Sufficient samples shall be secured for future reference.
Discrepancies found in he examination and appraisal in cases of over quantity, excess materials shall be subject to payment of duties and taxes plus surcharge where permit to import can be secured from the government agency concerned or seizure, if warranted. WAREHOUSE ASSESSMENT DIVISION A bond shall be charged/filed equivalent to the declared duties and taxes
After processing/charging, the bonds and the entry shall be forwarded to warehouse assessment division BOND DIVISON The warehousing entry shall be filed and processed in this division. If the bonded warehouse is operating under open bonded warehouse scheme, the entry shall additionally be marked “OPEN BONDED WAREHOUSE”
Entry is forwarded to bonds division for charging of bond whether it is under direct transfer under CMO#45-88 or not. ENTRY PROCESSING DIVISION OPERATOR/REPRESENTATIVE
The operator shall file a warehousing entry together with the warehousing permit and other required documents CBMW IMPORTATION Is a warehouse licensed by the BOC and also by the GTEB, in case of garments/textiles. It is duly authorized to import receive and store raw materials and accessory either for its own or for the account of its members without paying duties and taxes on condition that these materials are manufactured into finished products for subsequent exportation within a specific period. COMMON BONDED MANUFACTURING WAREHOUSE The request shall be filed with the Chief, Operating Division concerned or collector, FTI customs officer as the case may be, for evaluation and recommendation, or evaluation committee, if any.
The recommendation of the chief, Operating division concerned or the FTI or evaluation committee shall be submitted to the District Collector for approval. PROCEDURE FOR EVALUATION OF THE REQUEST FOR TRANSFER GENERAL CONSIDERATIONS
A. The transfer of membership from one CCBMW to another shall not be used as the means of subterfuge to document the requirement to manufacture and re export the finished products out if the imported raw materials within nine months extendible, for sufficient reasons, for another three months from the date of original transfer to CCBMW
B. In case of garment manufacturer, transfers should be approved by the GTEB after securing clearance from the BOC, if transferee has an unliquidated entries.
C. A warehousing entry together with the bond shall be filed for monitoring purposes by the new CCBMW for the account of the member to replace the former import entries TRANSFER OF MEMBERSHIP FROM ONE CCBMW TO ANOTHER Upon receipt of the application, the district collector shall refer the same to the Warehousing Inspection Division or equivalent unit which shall spot check the intended manufacturing premises/factory`s and submit a report thereon to the district collector
The district collector shall issue a memorandum addressed to the WDRD to check whether the applicant is not accredited nor connected with any other CBW and assure that the usual clearances from the WDRD and other offices concerned are obtained within % working days from receipt of the memorandum
The WID report, the WDRD clearance and the other usual clearances shall be submitted together with the application form and supporting documents to the evaluation committee, If any, otherwise to the Chief, operating division concerned to equivalent unit who shall submit the evaluation and recommendation to the District Collector through the Deputy Collector for Operations EVALUATION OF APPLICATION Customs Bonded Warehouses
&
Customs Common Bonded Warehouses Luis Menorca
Martin Naboreda Sheena Nanson Ian Odias and Rania Mujar Would like to thank you for listening.
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