RA 1937P2 1957

CHAPTER 74 COPPER AND ARTICLES THEREOF NOTES:

CHAPTER 75 NICKEL AND ARTICLES THEREOF NOTES:

CHAPTER 76 ALUMINUM AND ARTICLES THEREOF NOTES:

CHAPTER 77 MAGNESIUM AND BERYLLIUM, AND ARTICLES THEREOF

CHAPTER 78 LEAD AND ARTICLES THEREOF NOTES:

CHAPTER 79 ZINC AND ARTICLES THEREOF NOTES:

CHAPTER 80 TIN AND ARTICLES THEREOF NOTES:

CHAPTER 81 OTHER BASE METALS EMPLOYED IN METALLURGY AND ARTICLES THEREOF NOTE: Heading No. 81.04 shall apply only to base metals usable in metallurgy, that is to say: bismuth, cadnium, cobalt, chromium, gallium, germanium, indium, manganese, niobium (columbium), rhenium, antimony, titanium, thorium, thallium, uranium, vanadium, zirconium.

CHAPTER 82 TOOLS, IMPLEMENTS, CUTLERY, SPOONS AND FORKS, OF BASE METALS; PARTS THEREOF NOTES:

CHAPTER 83 MISCELLANEOUS ARTICLES OF BASE METAL NOTE: In this Chapter a reference to parts of articles shall in no case apply to chains, nails, bolts, nuts, screws, springs and other articles of iron or steel of a kind described in heading No. 73.29, 73.31, 73.32 or 73.35 nor to similar articles of other base metals (Chapters 74 to 81, inclusive).

Schedule XVI MACHINERY AND MECHANICAL APPLIANCES; ELECTRICAL EQUIPMENT; PARTS THEREOF. NOTES:

CHAPTER 85 ELECTRICAL MACHINERY AND EQUIPMENT; PARTS THEREOF NOTES:

Schedule XVII VEHICLES, AIRCRAFT AND PARTS THEREOF; VESSELS AND CERTAIN ASSOCIATED TRANSPORT EQUIPMENT. NOTES:

CHAPTER 87 VEHICLES, OTHER THAN RAILWAY OR TRAMWAY ROLLING STOCK, AND PARTS THEREOF NOTES:

CHAPTER 88 AIRCRAFT AND PARTS THEREOF; PARACHUTES, CATAPULT AND OTHER SIMILAR LAUNCHING GEAR; GROUND FLYING TRAINERS

CHAPTER 89 SHIPS, BOATS AND FLOATING STRUCTURES NOTES:

If this is not expedient or if such a procedure is refused by the importer, the articles shall fall within the corresponding headings in this Chapter.

Schedule XVIII OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING, CALIBRATING, PRECISION, MEDICAL AND SURGICAL INSTRUMENTS AND APPARATUS; CLOCKS AND WATCHES; MUSICAL INSTRUMENTS; SOUND RECORDERS AND REPRODUCERS; PARTS THEREOF. CHAPTER 90 OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING, CALIBRATING, PRECISION, MEDICAL AND SURGICAL INSTRUMENTS AND APPARATUS; PARTS THEREOF NOTES:

CHAPTER 91 CLOCKS AND WATCHES AND PARTS THEREOF NOTES:

CHAPTER 92 MUSICAL INSTRUMENTS; SOUND RECORDERS AND REPRODUCERS; PARTS AND ACCESSORIES THEREOF NOTES:

Schedule XIX ARMS AND AMMUNITION; PARTS THEREOF. CHAPTER 93 ARMS AND AMMUNITION; PARTS THEREOF NOTES:

Schedule XX MISCELLANEOUS MANUFACTURED ARTICLES. CHAPTER 94 FURNITURE AND PARTS THEREOF; BEDDING, MATTRESSES, MATTRESS SUPPORTS, CUSHIONS AND SIMILAR STUFFED FURNISHINGS NOTES:

CHAPTER 95 ARTICLES AND MANUFACTURES OF CARVING OR MOLDING MATERIALS NOTES:

CHAPTER 96 BROOMS, BRUSHES, FEATHER DUSTERS, POWDER PUFFS AND SIEVES NOTES:

CHAPTER 97 TOYS, GAMES AND SPORTS REQUISITES; PARTS THEREOF NOTES:

CHAPTER 98 MISCELLANEOUS MANUFACTURED ARTICLES NOTES:

Schedule XXI WORKS OF ART, COLLECTORS' PIECES, AND ANTIQUES. CHAPTER 99 WORKS OF ART, COLLECTORS' PIECES, AND ANTIQUES NOTES:

If, however, the value of the frame is greater than that of the framed articles the frame shall be classified as if imported separately.

Section 105. Conditionally Free Importations. The following articles shall be exempt from the payment of import duties upon compliance with the formalities prescribed in, or with the regulations which shall be promulgated by the Commissioner of Customs with the approval of the department head: a. Animals and plants for scientific, experimental, propagation, botanical, breeding, zoological and national defense purposes: Provided, That no live trees, shoots, plants and moss, and bulbs, tubers and seeds for propagation purposes may be imported under this section, except by order of the Government of the Philippines or other duly authorized institutions: Provided, further, That the free entry of animals for breeding purposes shall be restricted to animals of a recognized breed, duly registered in the book of record established for that breed: And provided, finally, That certificate of such record, and pedigree of such animal duly authenticated by the proper custodian of such book of record, shall be produced and submitted to the Collector of Customs, together with affidavit of the owner or importer, that such animal is the identical animal described in said certificate of record and pedigree. b. Aquatic products (e.g., fish, crustaceans, mollusks, marine animals, seaweed, fish oil, roe), including preparations or manufactures thereof, caught or gathered by vessels of Philippine registry: Provided, That they are imported in such vessels or in crafts attached thereto: And provided, further, That they have not been landed in any foreign territory or, if so landed, they have been landed solely for transhipment without having been advanced in condition. c. Samples of the kind, in such quantity and of such dimensions or construction as to render them unsalable or of no appreciable commercial value, models not adapted for practical use and samples of medicine properly marked "physicians' samples not for sale". Commercial samples, except those that are not readily and easily identifiable (e.g., precious and semi-precious stones, cut or uncut, and jewelry set with precious or semi-precious stones), the value of any single importation of which does not exceed ten thousand pesos, upon the giving of a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for the exportation of said samples within six months from the date of the acceptance of the import entry, or in default thereof, the payment of the corresponding duties, taxes and other charges. If the value of any single consignment of such commercial samples exceeds ten thousand pesos, the importer thereof may select any portion of same not exceeding in value ten thousand pesos for entry under the provisions of this subsection, and the excess of the consignment may be entered in bond, or for consumption, as the importer may elect. d. Articles, including binnacles, propellers, and the like, the character of which, as imported, prevents their use for other purposes than the construction, equipment, or repair of vessels and aircraft, and life-preservers and life buoys, related equipment and parts and accessories thereof, which are necessary for the take-off and landing and for the safe navigation of vessels and aircraft. e. Equipment for use in the salvage of vessels or aircraft, upon identification and the giving of a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for the exportation thereof or payment of the corresponding duties, taxes and other charges within six months from the date of acceptance of the import entry: Provided, That the Collector of Customs may extend the time for exportation or payment of duties, taxes and other charges for a term not exceeding six months from the expiration of the original period. f. Cost of repairs made in foreign countries upon vessels or aircraft documented, registered or licensed in the Philippines, upon proof satisfactory to the Collector of Customs (1) that adequate facilities for such repairs are not afforded in the Philippines, or (2) that such vessels or aircraft, while in the regular course of her voyage or flight was compelled by stress of weather or other casualty to put into a foreign port to make such repairs in order to secure the safety seaworthiness or airworthiness of the vessel or aircraft to enable her to reach her port of destination. g. Articles brought into the Philippines for repair, processing or reconditioning to be re-exported upon completion of the repair, processing or reconditioning: Provided, That the Collector of Customs may, in his discretion, require the giving of a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for the exportation thereof or payment of the corresponding duties, taxes and other charges within six months from the date of acceptance of the import entry. h. Medals, badges, cups and other small articles bestowed as trophies or prizes, or those received or accepted as honorary distinctions. i. Wearing apparel and household effects, including those articles provided for under subsections "j" and "k", and belonging to residents of the Philippines returning from abroad, which were exported from the Philippines by such returning residents upon their departure therefrom or during their absence abroad, upon the identity of such articles being established to the satisfaction of the Collector of Customs; personal and household effects brought into the Philippines by returning residents, the export value of which does not exceed five hundred pesos, solely for personal or household use but not imported for the account of any other person nor intended for barter, sale or hire: Provided, That such returning residents have not received the benefit of any exemption hereunder within one hundred and eighty days from and after the date of the last exemption granted: And provided, further, That in the event the total export value of the imported article or articles exceeds the amount of five hundred pesos, such article or articles shall be subject to duty only on the amount in excess of five hundred pesos; articles of the same kind and class purchased in foreign countries by residents of the Philippines during their absence abroad and accompanying them upon their return to the Philippines, or arriving within a reasonable time which in no case shall exceed ninety (90) days before or after the owner's return, upon proof satisfactory to the Collector of Customs that same have been in their use abroad for more than one year; articles in any single shipment consigned to any single person when the total export value of such shipment does not exceed one hundred pesos: Provided, That when the export value exceeds the amount of one hundred pesos, only the amount in excess of one hundred pesos shall be subject to duty. j. Wearing apparel, articles of personal adornment, toilet articles, portable tolls and instruments, theatrical costumes, and similar personal effects, accompanying travelers or tourists in their baggage or arriving within a reasonable time, in the discretion of the Collector of Customs, before or after the owners, in use of and necessary and appropriate for the wear or use of such persons according to their profession or position for the immediate purposes of their journey and their present comfort and convenience: Provided, That this exemption shall not be held to apply to articles intended for other persons or for barter, sale or hire: Provided, further, That the Collector of Customs may, in his discretion, require a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges upon articles classified under this subsection, conditioned for the exportation thereof or payment of the corresponding duties, taxes and other charges, within six months from the date of acceptance of the import entry: And provided, finally, That the Collector of Customs may extend the time for exportation or payment of duties, taxes and other charges for a term not exceeding six months from the expiration of the original period. k. Vehicles, horses, harness, bed and table linen, table service, furniture, musical instruments and personal effects of like character, owned and imported by travelers or tourists for their convenience and comfort, upon identification and the giving of a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for the exportation thereof or payment of the corresponding duties, taxes and other charges within six months from the date of acceptance of the import entry: Provided, That the Collector of Customs may extend the time for exportation or payment of duties, taxes and other charges for a term not exceeding six months from the expiration of the original period. l. Professional instruments and implements, tools of trade, occupation or employment, wearing apparel, domestic animals, and personal and household effects, including those of the kind and class provided for under subsections "j" and "k" and belonging to persons coming to settle in the Philippines, in quantities and of the class suitable to the profession, rank or position of the person importing them, for their own use and not for barter or sale, accompanying such persons, or arriving within a reasonable time, in the discretion of the Collector of Customs, before or after the arrival of their owners, upon the production of evidence satisfactory to the Collector of Customs that such persons are actually coming to settle in the Philippines, that the articles are brought from their former place of abode, that change of residence is bona fide, and that the privilege of free entry under this subsection has never been previously granted to them: Provided, That neither merchandise of any kind, nor machinery or other articles for use in manufacture, shall be classified under this subsection. m. Animals, vehicles, portable theaters, circus and theatrical equipment, including musical instruments, sceneries, panoramas, properties, saddlery, wax figures and similar objects for public entertainment, and other articles for display in public expositions, or for exhibition or competition for prizes, and devices for projecting pictures and parts and appurtenances therefor, upon identification and the giving of a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for exportation thereof or payment of the corresponding duties, taxes and other charges within six months from the date of acceptance of the import entry: Provided, That the Collector of Customs may extend the time for exportation or payment of duties, taxes and other charges for a term not exceeding six months from the expiration of the original period; and technical and scientific films when imported by technical, cultural and scientific institutions, and not to be exhibited for profit: Provided, That if any of the said films is exhibited for profit, the proceeds therefrom shall be subject to confiscation, in addition to the penalty provided under section three thousand six hundred and ten of this Code. n. Articles (e.g., photographic, sound recording, electrical and other equipment, vehicles, animals, costumes, apparel, properties, supplies, unexposed motion picture films) brought by foreign producers for making or recording motion pictures on location in the Philippines, upon identification and the giving of a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for exportation thereof or payment of the corresponding duties, taxes and charges within six months from the date of acceptance of the import entry. Unexposed motion picture films allowed free entry under bond for exportation falling within this subsection and subsequently exposed, whether or not developed, may be reexported free of import duties, taxes and other charges. Negative films, undeveloped, exposed outside the Philippines by resident Filipino citizens or by producing companies of Philippine registry where the principal actors and artists employed for the production are Filipinos, upon affidavit by the importer that such exposed films are the same films previously exported from the Philippines. As used in this paragraph, the terms "actors" and "artists" include the persons working the photographic camera or other photographic and sound recording apparatus by means of which the film is made. o. Costumes, regalia and other articles, including office supplies and equipment, imported for the official use of members and attaches of foreign embassies, legations, consular officers and other representatives of foreign government: Provided, That the country which any such person represents accords like privileges to corresponding officials of the Philippines. Articles imported for the personal or family use of the members and attaches of foreign embassies, legations, consular officers and other representatives of foreign governments: Provided, That such privilege shall be accorded under special agreements between the Philippines and the countries which they represent: And provided, further, That the privilege may be granted only upon specific instructions of the Department of Finance in each instance which will be issued only upon request of the Department of Foreign Affairs. p. Regalia, gems, statuary, specimens or casts of sculptures imported for the bona fide use and by the order of any society incorporated or established solely for religious, philosophical, educational, scientific or literary purposes, or for the encouragement of the fine arts, or for the use and by the order of any institution of learning, public library, museum, orphan asylum or hospital, and not for barter, sale or hire: Provided, That the term "regalia" shall be held to embrace only such insignia of rank or office or emblems as may be worn upon the person or borne in the hand during public exercises or ceremonies of the society or institution, and shall not include articles of furniture or fixtures, or ordinary wearing apparel, nor personal property of individuals. q. Musical organs imported for the bona fide use and by the owner of any society incorporated or established for religious or educational purposes, or, expressly for presentation thereto. r. Scientific apparatus, instruments and utensils specially imported for the bona fide use and by the order of any society or institution incorporated or established solely for educational, scientific, or charitable purposes, or for the encouragement of the fine arts, or for the bona fide use and by the order of any institution of learning in the Philippines, and not for barter, sale or hire. s. Philosophical, historical, economic, scientific, technical and vocational books specially imported for the bona fide use and by the order of any society or institution, incorporated or established solely for philosophical, educational, scientific, charitable or literary purposes, or for the encouragement of the fine arts, or for the bona fide use of and by the order of any institution of learning in the Philippines: Provided, That the provisions of this subsection shall apply to books not exceeding two copies of any one work when imported by any individual for his own use, and not for barter, sale or hire. Bibles, missals, prayerbooks, koran, ahadith and other religious books of similar nature and extracts therefrom, hymnal and hymns for religious uses, specially prepared books, music and other instrumental aids for the deaf, mute or blind, and textbooks prescribed for use in any school in the Philippines: Provided, That complete books published in parts in periodical form shall not be classified herein. t. Newsprint, whenever imported by or for publishers for the exclusive use in the publication of newspapers. u. Articles donated to public or private institutions established solely for educational, scientific, cultural, charitable, health, relief, philanthropic or religious purposes, for free distribution among, or exclusive use of, the needy. v. Food, clothing, house-building and sanitary-construction materials, and medical, surgical and other supplies for use in emergency relief work, when imported by or directly for the account of any victim, sufferer, refugee, survivor or any other person affected thereby, or by or for the account of any relief organization, not operated for profit, for distribution among the distressed individuals, whenever the President shall, by proclamation, declare an emergency to exist by reason of a state of war, pestilence, cholera, plague, famine, drought, typhoon, earthquake, fire, flood and similar conditions: Provided, That the importation free of duty of articles described in this herein subsection shall continue only during the existence of such emergency, or within such limits and subject to such conditions as the President may, by his proclamation, deem necessary to meet the emergency. w. Philippine articles previously exported from the Philippines and returned without having been advanced in value or improved in condition by any process of manufacture or other means, and upon which no drawback or bounty has been allowed, and foreign articles when returned after having been loaned and exported for use temporarily abroad solely for exhibition, examination or experimentation, for scientific or educational purposes, and foreign containers packed with exported Philippine articles and returned empty if imported by or for the account of the person or institution who exported them from the Philippines and not for sale, subject to identification: Provided, That any Philippine article falling under this subsection upon which drawback or bounty has been allowed shall, upon re-importation thereof, be subject to a duty under this subsection equal to the amount of such drawback or bounty. x. Large containers (e.g., demijohns, cylinders, drums, casks and other similar receptacles of metal, glass or other material) which are, in the opinion of the Collector of Customs, of such a character as to be readily identifiable may be delivered to the importer thereof upon identification and the giving of a bond in an amount equal to one and one-half times the ascertained duties, taxes and other charges thereon, conditioned for the exportation thereof on payment of the corresponding duties, taxes and other charges within one year from the date of acceptance of the import entry. y. Supplies or ship stores listed as such for the use of the vessel; supplies which are intended for the reasonable requirements of the vessel in her voyage outside the Philippines, including such articles transferred from a bonded warehouse in any collection district to any vessel engaged in foreign trade, for use or consumption of the passengers or its crew on board such vessel as sea stores; or articles purchased abroad for sale on board a vessel as saloon stores or supplies: Provided, That any surplus or excess of such ship, sea or saloon stores arriving from foreign ports shall be dutiable according to the corresponding heading or subheading. z. Articles and salvage from vessels recovered after the period of two years from the date of filing the marine protest or the time when the vessel was wrecked or abandoned as determined by the Collector of Customs, or such part of Philippine vessel or her equipment, wrecked or abandoned in Philippine waters or elsewhere: Provided, That articles and salvage recovered within the said period of two years shall be dutiable according to the corresponding heading or subheading. aa. Articles of easy identification exported from the Philippines for repairs abroad and subsequently reimported: Provided, That the cost of the repairs made to any such article shall pay a rate of duty of twenty-five per cent ad valorem. bb. Coffins or urns containing human remains, bones or ashes, and all articles for ornamenting said coffins or urns and accompanying same; used personal and household effects, not merchandise, of deceased persons, upon identification as such, satisfactory to the Collector of Customs. Section 106. Drawbacks: a. On Fuel Used for Propulsion of Vessels. On all fuel imported into the Philippines which is afterwards used for the propulsion of vessels of Philippine registry engaged in trade with foreign countries, or in the coastwise trade, a refund shall be allowed equal to the duty imposed by law upon such fuel, less one per cent thereof, which shall be paid under such rules and regulations as may be prescribed by the Commissioner of Customs with the approval of the department head. b. On Articles Made from Imported Materials or Similar Domestic Materials and Wastes Thereof. Upon the exportation of articles manufactured or produced in the Philippines, including the packing, covering, putting up, marking or labeling thereof, either in whole or in part of imported materials, or from similar domestic materials of equal quantity and productive manufacturing quality and value, such question to be determined by the Collector of Customs, there shall be allowed a drawback equal in amount to the duties paid on the imported materials so used, or where similar domestic materials are used, to the duties paid on the equivalent imported similar materials, less one per cent thereof: Provided, That the exportation shall be made within three years after the importation of the foreign material used or constituting the basis for drawback: And provided, further, That when the articles exported or coverings thereof are in part of materials grown or produced in the Philippines not entitled to drawback under this section, the imported materials, or the similar domestic materials of equal quantity and productive manufacturing quality and value entitled to drawback, shall so appear in the completed articles or packages that the quantity or measure thereof may be ascertained: And provided, finally, That the imported materials, or the similar domestic materials entitled to drawback under this section for which drawback is claimed, shall be identified; that the quantity of such materials used and the amount of duty paid thereon or, if the domestic materials, paid upon its equivalent, shall be ascertained; and that the fact of their exportation shall be established; and the refund if made shall be paid to the manufacturer, producer, or exporter, or to the duly authorized agent of any of them, under and in accordance with such rules and regulations as the Commissioner of Customs shall prescribe with the approval of the department head. TITLE II ADMINISTRATIVE PROVISIONS PART 1. BASES OF ASSESSMENT OF DUTY. Section 201. Basis of Dutiable Value. Whenever an imported article is subject to an ad valorem rate of duty, the duty shall be assessed upon the market value or price at which, at the time of exportation, the same, like or similar article is freely offered for sale in the principal markets of the exporting country for exportation to the Philippines, in the usual wholesale quantities and in the ordinary course of trade (excluding internal excise taxes to be remitted or rebated), plus ordinary expenses prior and incidental to the lading of such article on board the vessel or aircraft at the port of export (including taxes or duties, if any) and freight paid as well as insurance premium paid covering the transportation of such article to the port of entry in the Philippines. When the value of the article cannot be ascertained in accordance with the preceding paragraph, the value shall be the domestic wholesale market value or selling price of the same, like or similar imported article in the principal market of the Philippines on the date of exportation of the article under appraisement, in the usual wholesale quantities and in the ordinary course of trade, minus the import duty and other taxes as well as a commission not exceeding six per centum if any has been paid or contracted to be paid on goods secured otherwise than by purchase, and profits not to exceed eight per centum and a reasonable allowance for general expenses not to exceed eight per centum on purchased goods, and all other expenses incidental to the delivery from the port of importation to the principal market in the Philippines. Section 202. Bases of Dutiable Weight. On articles that are subject to specific rate of duty, based on weight, the duty shall be ascertained as follows: a. When articles are dutiable by the gross weight, the dutiable weight thereof shall be the weight of same, together with the weight of all containers, packages, holders and packings, of any kind, in which said articles are contained, held or packed at the time of importation. b. When articles are dutiable by the legal weight, the dutiable weight thereof shall be the weight of same, together with the weight of the immediate containers, holders and/or packing in which such articles are usually contained, held or packed at the time of importation and/or, when imported in retail packages, at the time of their sale to the public in usual retail quantities: Provided, That when articles are packed in single container, the weight of the latter shall be included in the legal weight. c. When articles are dutiable by the net weight, the dutiable weight thereof shall be only the actual weight of the articles at the time of importation, excluding the weight of the immediate and all other containers, holders or packing in which such articles are contained, held or packed. d. Articles affixed to cardboard, cards, paper, wood or similar common material shall be dutiable together with the weight of such holders. e. When a single package contains imported articles dutiable according to different weights, or to weight and value, the common exterior receptacles shall be prorated and the different proportions thereof treated in accordance with the provisions of this Code as to the dutiability or non-dutiability of such packing. Section 203. General Rules of Classification.The interpretation and application of the provisions of this Code relating to the classification of articles imported into the Philippines shall be governed by the following principles: RULE 1. The titles of schedules, chapters and subchapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings or subheadings and any relative schedule or chapter notes and, provided such headings, subheadings or notes do not otherwise require, according to the succeeding rules. RULE 2. Any reference in a heading or subheading to a material or substance shall include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to articles of a given material or substance shall include a reference to articles consisting wholly or partly of such material or substance. The classification of articles consisting of more than one material or substance shall be according to the principles of Rule 3. RULE 3. When articles are, prima facie, classifiable under two or more headings or subheadings, classification shall be effected as follows: a. The heading or subheading which provides the most specific description shall be preferred to any other heading or subheading providing a more general description. b. Mixtures and composite articles which consist of different materials or are made up of different components and which cannot be classified by reference to "a" shall be classified as if they consisted of the material or component which give the articles their essential character, insofar as this criterion is applicable. c. When articles cannot be classified by reference to "a" or "b" they shall be classified under the heading or subheading which provides the highest rate of duty. RULE 4. Where in a note to a schedule or chapter it is provided that certain articles are not covered by that schedule or chapter a reference being made to another schedule or chapter or to a particular heading or subheading, the note shall, unless the context requires otherwise, refer to all the articles falling within that other schedule or chapter or heading or subheading notwithstanding that only certain of those articles are referred to by description in the note. RULE 5. When dutiable and duty-free articles or those dutiable at different rates are packed together or mingled in such manner that the value of each class of such article cannot be readily determined by the officials of the Bureau of Customs, all such articles shall pay duty at the rate applicable to that article in the package which is subject to the highest rate of duty, unless the importer or consignee segregates such article at his own risk and on his account, under the supervision of customs officials, within fifteen days after the acceptance of import entry covering same, and before delivery, in order that the value of each article may be determined. RULE 6. In classifying manufactured products, no account shall be taken of the following: a. Insignificant parts of composite goods, in particular such as are used solely for mounting or connecting separate parts (e.g., nails, rivets, screws, washers, gaskets, locks, clamps, eyelets, clasps, hinges, bolts, cornerpieces, bands, threads, strings, beltings, straps, ropes); b. Negligible processing, refinement and decorations; c. Manufacturers' marks or names or trade marks, indications of the country of origin of the types of articles, their sizes or capacities, calibration marks, indications of graduation and the like, not of an ornamental character. RULE 7. Unless otherwise provided for, unfinished and incomplete articles shall be classified as the finished and complete articles, provided their intended use is recognizable. RULE 8. Unless otherwise provided for, the separate parts and unassembled pieces of articles which normally consist of various component parts, shall be classified as complete articles, when imported together by the same importer, owner or consignee from the same seller or shipper on the same vessel or vehicle. The absence of certain non-essential parts does not affect the application of this provision. RULE 9. Accessories and spare parts shall be classified with the articles with which they are imported, when, by their character and quantity, they correspond to such articles and when they are usually sold together with them and are included in the price of such article. RULE 10. Cases, boxes, caskets, sheaths and the like, of normal type (e.g., such as are used for cutlery, binoculars, microscopes, watches, musical instruments, weapons, sport goods) imported with the corresponding articles, shall be classified as such articles; if imported separately, they shall be classified under the corresponding heading or subheading of this Code. RULE 11. No duties shall be assessed on account of the usual coverings or holdings of articles dutiable otherwise than ad valorem, nor those free of duty, except as in this Code expressly provided, but if there be used for covering or holding imported articles, whether dutiable or free, any unusual article, form or material adapted for use otherwise than in the bona fide preservation or transportation of such article to the Philippines, such covering or holding shall be classified under the corresponding heading or subheading of this Code. RULE 12. When the interior container or packing of any article dutiable by weight is of an unusual character, such container or packing shall be classified under the corresponding heading or subheading of this Code. RULE 13. When an article falling within a heading or subheading is subject to ad valorem or specific rate of duty, it shall be subject to either the ad valorem or the specific rate of duty whichever is higher. RULE 14. Unless otherwise provided for, the term "used" or any provision indicating designation by use, for the purpose of classification and taxation of articles shall mean the chief or predominant use of such articles notwithstanding any fugitive or incidental use to which such articles may be subjected. RULE 15. Articles not falling within any heading or subheading of this Code shall be classified under the heading or subheading appropriate to articles to which they are most akin. Section 204. Rate of Exchange. For the assessment and collection of import duty upon imported articles and for other purposes, the value and prices thereof quoted in foreign currency shall be converted into the currency of the Philippines at the current rate of exchange or value specified or published, from time to time, by the Central Bank of the Philippines. Section 205. Effective Date of Rates of Import Duty. Imported articles shall be subject to the rate or rates of import duty existing at the time of entry, or withdrawal from warehouse in the Philippines, for consumption. On and after the day when this Code shall go into effect all articles previously imported, for which no entry has been made, and all articles previously entered without payment of duty and under bond for warehousing, transportation, or any other purpose, for which no permit of delivery to the importer or his agent has been issued, shall be subject to the rates of duty imposed by this Code and to no other duty, upon the entry, or withdrawal thereof from warehouse, for consumption. On articles abandoned or forfeited to, or seized by, the government, and then sold at public auction, the rate of duty and the tariff in force on the date of the auction shall apply: Provided, That duty based on the weight, volume and quantity of articles shall be levied and collected on the weight, volume and quantity at the time of their entry into the warehouse or the date of abandonment, forfeiture and/or seizure. Section 206. Entry, Withdrawal from Warehouse, for Consumption. Imported articles shall be deemed "entered" in the Philippines for consumption when the specified entry form is properly filed and accepted, together with any related documents required by the provisions of this Code and/or regulations to be filed with such form at the time of entry, at the port or station by the customs official designated to receive such entry papers and any duties, taxes, fees and/or other lawful charges required to be paid at the time of making such entry have been paid or secured to be paid with the customs official designated to receive such monies, provided that the article has previously arrived within the limits of the port of entry. Imported articles shall be deemed "withdrawn" from warehouse in the Philippines for consumption when the specified form is properly filed and accepted, together with any related documents required by any provisions of this Code and/or regulations to be filed with such form at the time of withdrawal, by the customs official designated to receive the withdrawal entry and any duties, taxes, fees and/or other lawful charges required to be paid at the time of withdrawal have been deposited with the customs official designated to receive such payment. Section 207. Revised Trade Agreement not Affected. Nothing in this Code shall be construed to abrogate or in any manner impair or affect the provisions of the Revised Agreement concluded between the Philippines and the United States on September 6, 1955. PART 2. SPECIAL DUTIES Section 301. Dumping Duty. a. Whenever the Secretary of Finance (hereinafter called the Secretary") has reason to believe, from invoices or other papers or from information made available to him by any government agency or interested party, that a specific kind or class of foreign article, whether dutiable or duty-free, is being sold or is likely to be sold for exportation to, or in, the Philippines, at a price less than its fair value, as hereinafter defined, the importation or sale of which might injure, or prevent the establishment of, or is likely to injure an industry in the Philippines, he shall so advise the Tariff Commission (hereinafter called the "Commission"). b. The Commission, upon receipt of such advice from the Secretary, shall conduct an investigation to 1. Verify if the kind or class of articles in question is being sold or is likely to be sold for exportation to, or in, the Philippines at a price less than its fair value;

If such person is the agent or principal of the exporter, manufacturer or producer; or

Whenever an article is excepted under subdivision (3) of subsection "a" of this section from the requirements of marking, the immediate container, if any, of such article, or such other container or containers of such article as may be prescribed by the Commissioner of Customs with the approval of the department head, shall be marked in such manner as to indicate to an ultimate purchaser in the Philippines the name of the country of origin of such article in any official language of the Philippines, subject to all provisions of this section, including the same exceptions as are applicable to articles under subdivision (3) of subsection "a". c. Marking Duty for Failure to Mark.

If at the time of importation any article (or its container, as provided in subsection "b" hereof), is not marked in accordance with the requirements of this section, there shall be levied, collected and paid upon such article a marking duty of 5 per cent ad valorem, which shall be deemed to have accrued at the time of importation, except when such article is exported or destroyed under customs supervision and prior to the final liquidation of the corresponding entry. d. Delivery Withheld until Marked. No imported article held in customs custody for inspection, examination or appraisement shall be delivered until such articles and/or their containers, whether released or not from customs custody, shall have been marked in accordance with the requirements of this section and until the amount of duty estimated to be payable under subsection "c" of this section shall have been deposited. Nothing in this section shall be construed as excepting any article or its container from the particular requirements of marking provided for in any provisions of law. e. The failure or refusal of the owner or importer to mark the articles as herein required within a period of thirty days after due notice shall constitute as an act of abandonment of said articles and their disposition shall be governed by the provisions of this Code relative to abandonment of imported articles. Section 304. Discrimination by Foreign Countries. a. The President, when he finds that the public interest will be served thereby, shall by proclamation specify and declare new or additional duties in an amount not exceeding 50 per cent of the existing rates as hereinafter provided upon articles wholly or in part the growth or product of, or imported in a vessel of, any foreign country whenever he shall find as a fact that such country

If at any time the President shall find it to be a fact that any foreign country has not only discriminated against the commerce of the Philippines, as aforesaid but has, after the issuance of a proclamation as authorized in subsection "a" of this section, maintained or increased its said discriminations against the commerce of the Philippines, the President is hereby authorized, if he deems it consistent with the interests of the Philippines, to issue a further proclamation directing that such product of said country or such articles imported in its vessels as he shall deem consistent with the public interests, shall be excluded from importation into the Philippines. c. Any proclamation issued by the President under the authority of this section shall, if he deems it consistent with the interests of the Philippines, extend to the whole of any foreign country or may be confined to any subdivision or subdivisions thereof; and the President shall, whenever he deems the public interests require, suspend, revoke, supplement or amend any such proclamation. d. All articles imported contrary to the provisions of this section shall be forfeited to the Government of the Philippines and shall be liable to be seized, prosecuted and condemned in like manner and under the same regulations, restrictions and provisions as may from time to time be established for the recovery, collection, distribution and remission of forfeiture to the government by the tariff and customs laws.

Whenever the provision of this section shall be applicable to importations into the Philippines of articles wholly or in part the growth or product of any foreign country, they shall be applicable thereto whether such articles are imported directly or indirectly. e. It shall be the duty of the Commission to ascertain and at all times to be informed whether any of the discriminations against the commerce of the Philippines enumerated in subsections "a" and "b" of this section are practiced by any country; and if and when such discriminatory acts are disclosed, it shall be the duty of the Commission to bring the matter to the attention of the President, together with recommendation. f. The Secretary shall make such rules and regulations as are necessary for the execution of such proclamation as the President may issue in accordance with the provisions of this section. g. The authority granted herein to the President shall be exercised only when Congress is not in session. PART 3. FLEXIBLE TARIFF.

Section 401. Flexible Clause. a. The President, upon investigation by the Commission and recommendation of the National Economic Council, is hereby empowered to reduce by not more than fifty per cent or to increase by not more than five times the rates of import duty expressly fixed by statute (including any necessary change in classification) when in his judgment such modification in the rates of import duty is necessary in the interest of national economy, general welfare and/or national defense. b. Before any recommendation is submitted to the President by the Council pursuant to the provisions of this section, the Commission shall conduct an investigation in the course of which it shall hold public hearings wherein interested parties shall be afforded reasonable opportunity to be present, to produce evidence and to be heard. The Commission may also request the views and recommendations of any government office, agency or instrumentality, and such office, agency or instrumentality shall cooperate fully with the Commission. c. The President shall have no authority to transfer articles from the duty-free list to the dutiable list nor from the dutiable list to the duty-free list of the tariff. d. The power of the President to increase or decrease rates of import duty within the limits fixed in subsection "a" shall include the authority to modify the form of duty. In modifying the form of duty the corresponding ad valorem or specific equivalents of the duty with respect to imports from the principal concerning foreign country for the most recent representation period shall be used as basis. e. The Commissioner of Customs shall regularly furnish to the Commission a copy each of all customs import entries containing every pertinent information appearing in the collectors' liquidated duplicates, including the consular invoice and/or the commercial invoice. The Commission or its duly authorized agents shall have access to and the right to copy all the customs import entries and other documents appended thereto as finally in the General Auditing Office. f. The Commission is authorized to adopt such reasonable procedure, rules and regulations as it may deem necessary to carry out the provisions of this section. g. Any order issued by the President pursuant to the provisions of this section shall take effect thirty days after its issuance. h. The provisions of this section shall not apply to any article the importation of which into the Philippines is or may be governed by Section 402 of this Code. i. The authority herein granted to the President shall be exercised only when Congress is not in session. Section 402. Promotion of Foreign Trade a. For the purpose of expanding foreign markets for Philippine products as a means of assisting in the economic development of the country, in overcoming domestic unemployment, in increasing the purchasing power of the Philippine peso, and in establishing and maintaining better relationship between the Philippines and other countries, the President, upon investigation by the Commission and recommendation of the National Economic Council, is authorized from time to time:

Should the Commission find that the representations made in accordance with the preceding paragraph are justified, it shall recommend to the President, through the National Economic Council the withdrawal or modification of the concession, its suspension in whole or in part, or the establishment of import quota which shall not be less than ten per centum or more than one hundred per centum of the average annual quantity imported or, in the absence thereof, the average annual value of such importation, during the three calendar years immediately preceding the date such quota is fixed, to the extent and for the time necessary to prevent or remedy such injury.

Section 504. Official Seal. The Commission is authorized to adopt an official seal. Section 505. Functions of the Commission. The Commission shall investigate (a) the administration of and the fiscal and industrial effects of the tariff and customs laws of this country now in force or which may hereafter be enacted;

When a vessel becomes subject to seizure by reason of an act done in Philippine waters in violation of the tariff and customs laws, a pursuit of such vessel begun within the jurisdictional waters may continue beyond the maritime zone, and the vessel may be seized on the high sea. Imported articles which may be subject to seizure for violation of the tariff and customs laws may be pursued in their transportation in the Philippines by land, water or air and such jurisdiction exerted over it at any place therein as may be necessary for the due enforcement of the law. Section 604. Jurisdiction over Premises Used for Customs Purposes. The Bureau of Customs shall, for customs purposes, have exclusive control, direction and management of custom-houses, warehouses, offices, wharves, and other premises in the respective ports of entry, in all cases without prejudice to the general police powers of the city or municipality wherein such premises are situated. Section 605. Enforcement of Port Regulation of 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 in so far as they are connected with matters of shipping and navigation. Section 606. Power of the President to Subject Premises to Jurisdiction of Bureau of Customs.

When any public wharf, landing place, street or land, not previously under the jurisdiction of the Bureau of Customs, in any port of entry, is necessary or desirable for any proper customs purpose, the President of the Philippines may, by executive order, declare such premises to be under the jurisdiction of the Bureau of Customs, and thereafter the authority of such Bureau in respect thereto shall be fully effective. Section 607. Annual Report of Commissioner. The annual report of the Commissioner shall, among other things, contain a compilation of the (a) volume and value of articles imported into the Philippines and the corresponding customs duties assessed and collected thereon itemized in accordance with the tariff classification provided in this Code and (b) volume and value of articles exported from the Philippines for the preceding year. Section 608. Commissioner to Make Rules and Regulations. The Commissioner shall, subject to the approval of the department head, make all rules and regulations necessary to enforce the provisions of this Code. PART 2. COLLECTION DISTRICTS AND PORTS OF ENTRY.

Section 701. Collection Districts and Ports of Entry thereof. For administrative purposes, the Philippines shall be divided into as many collection districts as there are at present existing, the respective limits of which may be changed from time to time by the Commissioner, upon the approval of the department head. The principal ports of entry for the respective collection districts shall be Manila, Sual, Tabaco, Cebu, Pulupandan, Sia-in, Iloilo, Davao, Legaspi, Zamboanga, Jolo, Aparri, Jose Panganiban, Cagayan, Cagayan, Tacloban, San Fernando, Hinigaran, Dumaguete City and Batangas. Section 702. Power of the President to Open and Close Subports. Subports of entry may be opened or closed by executive order, in the discretion of the President of the Philippines. When a subport is closed, its existing personnel shall be reassigned to other duties by the Commissioner subject to the approval of the department head. Section 703. Collector of Customs at Port of Entry. At each principal port of entry there shall be a Collector of Customs (hereinafter known as the "Collector") who shall be responsible to the Commissioner, and who shall be the official head of the customs service in his port and district. The Collector shall have jurisdiction over all matters arising from the enforcement of tariff and customs laws within his collection district: Provided, however, That the Commissioner shall have the authority to review any such action upon appeal as provided in section two thousand three hundred and thirteen of this Code. No appointment to any position under the Collector shall be made without the recommendation of the Collector concerned. Section 704. Seal of Collector of Customs. In the office of the Collector of a collection district there shall be kept a seal of such design as the Commissioner shall describe, with the approval of the department head, with which shall be sealed all documents and records requiring authentication in such office. Section 705. Authority of Assistant or Deputy Collectors of Customs. An assistant collector at a principal port of entry may, in the name of the Collector and subject to his supervision and control, perform any particular act which might be done by the Collector himself; at subports, a deputy collector may, in his own name, exercise the general powers of a collector, subject to the supervision and control of the Collector of the port. Section 706. Appointment of Special Deputies with Limited Powers. Collectors may, with the approval of the Commissioner, appoint from their force such number of special deputies as may be necessary for the proper conduct of the public business, with authority to sign such documents and perform such service as may be specified in writing. Section 707. Succession of Assistant or Deputy Collector to Position of Acting Collector. In the absence or disability of a Collector at any port or in case of a vacancy in his office, the temporary discharge of his duties shall devolve upon the assistant or deputy collector of the port. Where no assistant or deputy collector is available, an official to serve in such contingency may be designated in writing by the Collector from his own force. The Collector making such designation shall report the same without delay to the Commissioner and the Auditor General, forwarding to them the signature of the person so designated. Section 708. Designation of Official as Customs Inspector. At a coastwise port where no customs official or employee is regularly stationed, the Commissioner may designate any national, provincial or municipal official of the port to act as an inspector of customs for the purpose of enforcing the laws and regulations of the Bureau of Customs in the particular port; but all such designations shall be made with the consent of the proper department head of the official so designated. Section 709. Authority of Collector to Remit Duties. A Collector shall have discretionary authority to remit the assessment and collection of customs duties, taxes and other charges when the aggregate amount of such duties, taxes and other charges is less than ten pesos, and he may dispense with the seizure of articles of less than ten pesos in value except in cases of prohibited importations or the habitual or intentional violation of the tariff and customs laws. Section 710. Records to be kept by Customs Officials. Collectors, assistant collectors, deputy collectors, surveyors, and other customs officials acting in such capacities are required to keep true, correct and permanent records of their official transactions, to submit the same to the inspection of authorized officials at all times, and to turn over all records and official papers to their successors or other authorized officials. Section 711. Port Regulation. A Collector may prescribe local administrative regulations, not inconsistent with law or the general bureau regulations, for the government of his port or district, the same to be effective upon approval by the Commissioner. Section 712. Reports of Collector to Commissioner. A Collector shall make report to the Commissioner from time to time concerning prospective or newly begun litigation in his district touching matters relating to the customs service; and he shall, in such form and detail as shall be required by the Commissioner, make regular monthly reports of all transactions in his port and district. TITLE II REGISTRATION OF VESSELS, COASTWISE TRADE AND LICENSING OF MARINE OFFICERS PART 1. REGISTRATION AND INSPECTION OF VESSELS, AND LICENSING OF MARINE OFFICERS. Section 801. Registration and Documentation of Vessels. The Bureau of Customs is vested with exclusive authority over the registration and documentation of Philippine vessels. By it shall be kept and preserved the records of registration and of transfers and incumbrances of vessels; and by it shall be issued all certificates, licenses or other documents incident to registration and documentation, or otherwise requisite for Philippine vessels. Section 802. Vessels Required to be Registered. Every vessel used in the Philippine waters, not being a transient of foreign registry shall be registered in the Bureau of Customs. To this end, it shall be the duty of the master, owner or agent of every vessel to make application to the proper Collector for the registration thereof within fifteen days after the vessel becomes subject to such registration. A vessel of three tons gross or less shall not be registered, unless the owner shall so desire, nor shall documents or licenses of any kind be required for such vessel, but the proper fee shall be charged for admeasurement, when admeasurement is necessary, except when the same is engaged in towing or carrying of articles and passengers for hire. Section 803. Where Registration to be Effected. The registration of a vessel shall be effected at its home port, being a port of entry, or at the port of entry of the district of the vessel's home port. Section 804. Data to be Noted in Register of Vessels. In the register of vessels, to be kept at each port of entry, the following facts concerning each vessel there registered shall be noted in such form and detail as the Commissioner shall prescribe: a. Name of vessel. b. Rig of vessel. c. Material of hull. d. Principal dimensions. e. Gross tonnage. f. Net tonnage. g. Where built. h. Year when built. i. Name, citizenship, nationality and residence of owner. j. Date of issuance of certificate of Philippine registry. k. Any material change of condition in respect to any of the preceding items. l. Any other fact required to be there noted by the regulations of the Bureau of Customs. Section 805. Record of Documents Affecting Title. In the record of transfers and incumbrances of vessels, to be kept at each principal port of entry, shall be recorded at length all transfers, bills of sale, mortgages, liens or other documents which evidence ownership or directly or indirectly affect the title of registered vessels, and therein shall be recorded all receipts, certificates or acknowledgment cancelling or satisfying, in whole or in part, any such obligations. No other record of any such document or paper shall be required than such as is affected hereunder. Section 806. Certificate of Philippine Registry. Upon registration of a vessel of domestic ownership, and of more than fifteen tons gross a certificate of Philippine registry shall be issued for it. If the vessel is of domestic ownership and of fifteen tons gross or less, the taking of the certificate of Philippine registry shall be optional with the owner. "Domestic ownership", as used in this section, means ownership vested in citizens of the Philippines, or corporations or associations organized under the laws of the Philippines at least seventy-five per centum of the capital stock of which is wholly owned by citizens of the Philippines, and, in the case of corporations or associations which will engage in coastwise trade the president or managing directors thereof shall be such citizens: Provided, That the certificate of Philippine registry issued to a vessel prior to the approval of this Code shall not be affected: Provided, further, That any vessel of more than fifteen tons gross which on February eight, nineteen hundred and eighteen, had a certificate of Philippine registry under existing law, shall likewise be deemed a vessel of domestic ownership if there has been no change in its ownership or if the stock of the association or corporation owning such vessel has not been transferred to persons who are not citizens of the Philippines, and if any such vessel should have been totally lost through shipwreck, collision or any other marine disaster, while being lawfully operated, it may be replaced with another vessel of the same or lesser tonnage by the same person, association or corporation owning and operating same by virtue of this section, under such terms and conditions as may be prescribed by the Commissioner consistent with public policy and with the view of its utility for government service in case of war or any public emergency: Provided, further, That the controlling interest in the corporation shall not be considered as held by citizens of the Philippines:

When Control is Deemed not Held by Citizens of the Philippines. It shall not be considered that seventy-five per centum of the capital stock of a corporation is held by citizens of the Philippines:

If such vessel is of five tons gross or less, the taking of a certificate of ownership shall be optional with the owner. Section 809. Form and Contents of Certificate of Philippine Registry. The certificate of Philippine registry shall be in such form as shall be prescribed by the Commissioner, and it shall show that the vessel is engaged in legitimate trade and is entitled to protection and flag of the Philippines. Section 810. Privileges Conferred by Certificate of Philippine Registry. A certificate of Philippine registry confers upon the vessel the right to engage, consistently with law, in the Philippine coastwise trade and entitles it to the protection of the authorities and the flag of the Philippines in all ports and on the high seas, and at the same time secures to it the same privileges and subjects it to the same disabilities as, under the laws of the Philippines, pertain to foreign-built vessels transferred abroad to citizens of the Philippines. Section 811. Investigation Into Character of Vessel. No application for a certificate of Philippine registry shall be approved until the Collector is satisfied from an inspection of the vessel that it is engaged or destined to be engaged in legitimate trade and that it is of domestic ownership as such ownership is defined in section eight hundred and six hereof. A Collector may at any time inspect a vessel or examine its owner, master, crew or passenger in order to ascertain whether the vessel is engaged in legitimate trade and is entitled to have or retain the certificate of the Philippine registry. The Collector may at any time make an administrative investigation as to the ownership or title of any vessel engaged in the coastwise trade and whether such title or ownership is in accordance with the requirements of law; and any vessel sold, transferred or mortgaged to any person not a citizen of the Philippines without previous approval of the President of the Philippines, or leased or chartered to any citizen or national of a country with which the Philippines has no diplomatic relations, or put under foreign registry or flag without such approval, or operated in violation of any of the provisions of this Code, shall be seized by the Government of the Republic of the Philippines; and any person, corporation, company or association violating any of the provisions of this section shall be guilty of a misdemeanor and be punished by a fine of not more than five thousand pesos or imprisonment for not more than five years, or both: Provided, That in the event the person guilty of such violation is a corporation, company or association, the manager or, in his default, the president thereof shall be criminally responsible for such violation. Section 812. License of Yachts Exclusively for Pleasure. The Commissioner may license yachts used and employed exclusively as pleasure vessels owned by Filipino citizens, on terms which will authorize them to proceed from port to port of the Philippines and to foreign ports without entering or clearing at the customhouse: Provided, however, That any yacht so licensed, upon arriving from a foreign port in the Philippines after having previously advised the Commissioner by telegraph of its probable arrival, shall enter at a port of entry in the Philippines and shall immediately report its arrival to the customs authorities. Such license shall be in such form as the Commissioner shall prescribe. Such vessels shall have their name and port of registration placed on some conspicuous portion of their hulls, and in all respects be subject to the laws of the Philippines, and shall be liable to seizure and forfeiture for any violation of these provisions. Section 813. Violation by Master or Owner. Any master or owner violating the provisions of the preceding section shall be liable to a fine of from five thousand pesos in addition to any other penalty imposed by law. Section 814. Identification of Yachts and Owners. For the identification of yachts and their owners, a commission to sail for pleasure in any designated yacht owned by a citizen of the Philippines designating the particular cruise may be issued by the Commissioner and shall be a token of credit to any Filipino official and to the authorities of any foreign power. All such licensed yachts shall use a signal of the form, size and colors prescribed by the Commissioner. Section 815. Report of Accident to Vessel.

When any Philippine vessel required to register sustains or causes any accident involving loss of life, material loss of property, or serious injury to any person, or receives any damage affecting her seaworthiness or her efficiency, the managing owner, agent or master of such vessel shall, by the first available mail send to the Collector of the district within which such vessel belongs or of that within which such accident or damage occurred, a report thereof, stating the name of the vessel, the port to which she belongs, and the place where she was, the nature and probable occasion of the casualty, the number and names of those lost and the estimated amount of loss or damage to the vessel or cargo; and shall furnish such other information as shall be called for.

When the managing owner or agent of such vessel has reason to believe that it has been lost, he shall promptly send notice in writing to the Collector at her home port giving advice of such loss and the probable occasion therefor, stating the name of the vessel and the names of all persons on board so far as the same can be ascertained, and shall furnish, upon request of the Collector, such additional information as shall be required. Section 816. Application of Shipping Laws to Government Boats. Vessels owned or operated by the Government shall not be subject to the requirement of this Code relative to registration and navigation except in so far as prescribed in the regulations of the Bureau of Customs. Section 817. Revocation of Certificate.

When it shall appear to the Commissioner that any certificate of Philippine registry or certificate of ownership was illegally or improperly issued, he may cancel the same. Section 818. Inspection of Hulls, Boilers and Other Constructional Features. In the exercise of the authority conferred upon the Bureau of Customs over the coastwise trade and over Philippine vessels and shipping generally, it shall be the duty of the Commissioner to cause adequate technical inspections to be made from time to time and as occasion may require of the hulls, engines, boilers and other mechanical and constructional features of all vessels of foreign or private ownership navigating in any waters of the Philippines, on common trade routes open to general or competitive navigations, and carrying passengers from any port of the Philippines, to any other place or country and to fix the standard which must be attained in respect thereto: Provided, however, That every vessel of foreign registry holding a certificate issued under Regulation 11 or 12 of the International Conference on Safety of Life at Sea, 1948, shall be exempt from any inspection save that which may be necessary for the purpose of verifying the said certificate and whether the conditions of the ship's seaworthiness corresponds substantially with that stated in the certificate: Provided, further, That vessels belonging to countries which are not signatories to the International Conference on Safety of Life at Sea, 1948, which have inspection laws similar to those of the Philippines, shall, if the laws of said countries grant reciprocal rights to vessels of Philippine registry, be exempt from any inspection save that which may be necessary to convince customs authorities that the condition of the vessel, its boilers and life-saving equipment are as stated in the current certificate of inspection. The hulls, engines and boilers of all steam vessels engaged in coastwise traffic shall be inspected at least once a year or in case of the hulls of a wooden vessel, at least once every two years. Section 819. Inspection Certificate. A certificate of inspection shall be issued to a vessel if it shall be found upon inspection that said vessel conforms with the requirements applicable to it: Provided, That any vessel of Philippine registry arriving from a foreign port with an unexpired certificate issued, upon the request of the Philippine Government, by a foreign government signatory to the International Conference on Safety of Life at Sea, 1948, shall be exempt from any inspection save that which may be necessary to convince customs authorities that the condition of the ship's seaworthiness corresponds substantially to that stated in the certificate, in which case the vessel shall be entitled to have a certificate of inspection issued to it.

If the condition of the ship's seaworthiness does not correspond to that stated in the certificate, then the ship shall not be permitted to proceed to the sea without securing a new inspection certificate. Section 820. Sanitary Inspection. It shall be incumbent upon the Commissioner to provide an adequate system of sanitary inspection for Philippine vessels. To this end a sanitary inspector may be appointed for the port of Manila. At the other respective ports, the function of sanitary inspector may be exercised by the surveyor or other official thereunto deputed by the Collector. It shall be the duty of the sanitary inspector by personal examination to ascertain the sanitary condition of vessels subject to inspection by him and to see that the sanitary regulations of the Bureau of Customs are fully complied with, and a clearance shall not be granted to any such vessel until the sanitary inspector shall so certify. Section 821. Fire-Fighting Apparatus and Life-Saving Equipment. The regulations of the Bureau of Customs shall prescribe the mechanical equipment and fire-apparatus to be carried on Philippine vessels for the purpose of preventing and extinguishing fires. Such vessels shall also be required to carry life-saving equipment, consisting of boats, life-preservers and other devices, to be prescribed by regulation, sufficient for the safety of the passengers and crew in cases of emergency; and provision shall be made for adequate means of utilizing such equipment. Section 822. Certification of Applicant for Marine Officer.

If the Board of Marine Examiners shall find that the experience, habits and character of an applicant are such as to warrant the belief that he can safely be entrusted with the duties and responsibilities of the position for which he makes application and that the applicant has in other respects complied with the other requirements of law, it shall so certify to the Bureau of Customs which office shall issue the appropriate certificate. Section 823. Issuance of Certificates. (a) Candidates for mate and master having passed the requisite examination shall be entitled to a certificate entitling them to navigate in any ocean.

Any person who upon such examination is found to be physically unfit for the service shall thereafter be disqualified from engaging therein. Section 826. Reinstatements.

Any person who has held the office of captain, mate, master or engineer and whose license or certificate has been revoked on account of physical defects shall be entitled to reinstatement upon the favorable certificate of a physician appointed by the Commissioner to make a second examination. Section 827. Marine Investigation and Suspension or Revocation of Marine Certificate. There shall be maintained in the Bureau of Customs at Manila a Board of Marine Inquiry to consist of five members, to wit: The Surveyor of the Port as chairman ex officio, two master marines and two chief engineers of the Philippine merchant marine, who shall be appointed by the department head. The members of the board shall receive a per diem of twenty pesos for each day of not less than seven hours of service rendered in connection with marine investigations. Three members present shall constitute a quorum for the transaction of business.

In case of inability or absence of the Surveyor of the Port, a temporary chairman may be chosen by the members from among themselves. Such board shall have the power to investigate marine accidents and professional conduct of marine officers, giving the party affected an opportunity to be heard in his defense. The decision of the Commissioner based upon the findings and recommendations of the board, reprimanding a licensed marine officer or suspending or revoking any marine certificate on account of professional misconduct, intemperate habits, negligence or incapacity shall be final, unless, within thirty days after its promulgation, an appeal is perfected and filed with the department head who may confirm, revoke or modify said decision. Rules and regulations governing the procedure of marine investigations shall be promulgated by the department head. The Commissioner may, with the approval of the department head authorize the collectors to appoint boards for the purpose of investigating marine accidents or charges preferred against the marine officers in their respective districts. The proceedings of such investigations, together with findings and recommendations of said board shall be submitted, through the Commissioner, to the Board of Marine Inquiry, Manila, for final review and recommendation. In order to safeguard lives and properties at sea, a Collector may withhold clearance of any Philippine vessel whenever he has reasonable cause to fear that the mental condition or capacity, whether permanent or otherwise, of her master, mate or engineer under investigation, pending the final decision thereon so warrants. Section 828. Fees for Insurance of Certificates.

Any person to whom any certificate as master, mate, patron or engineer is issued, upon examination or by way of exchange shall pay: For a certificate as master, sixty pesos. First, second and third mates, and major patron, forty pesos. Chief marine or motor engineer, sixty pesos. Second, third and fourth motor engineers, forty pesos. Bay, river and lake motor engineer and patrons, thirty pesos. Section 829. Citizenship of Personnel on Board Vessels. No Philippine vessel operating in the coastwise trade or on the high seas shall employ any officer or any member of the crew who is not a citizen of the Philippines. Section 830. Complement of Watch and Engine-room Officers on Philippine Vessels. Every vessel registered in the Philippines shall have the following officers:

If the vessel does not carry cargo or passengers the manifest must show that no cargo or passenger, as the case may be, is carried from the port of departure to the port of destination in the Philippines. A cargo manifest shall in no case be changed or altered after entry of the vessel, except by means of an amendment by the master, consignee or agent thereof, under oath, and attached to the original manifest: Provided, however, That after the invoice and/or entry covering an importation have been received and recorded in the office of the appraiser, no amendment of the manifest shall be allowed, except when it is obvious that a clerical error or any other discrepancy has been committed in the preparation of the manifest, without any fraudulent intent, discovery of which could not have been made until after examination of the importation has been completed. Section 1006. Translation of Manifest. The cargo manifest and each copy thereof shall be accompanied by a translation into the official language of the Philippines, if originally written in another language. Section 1007. Manifests for Auditor and Collector Papers to be Deposited with Consul. Immediately after the arrival of a vessel from a foreign port, the master shall deliver or mail to the Auditor General, Manila, a copy of the cargo manifest properly indorsed by the boarding officer, and within twenty-four hours after arrival, he shall present to the Collector the original copy of the cargo manifest and, for inspection, the ship's register or other document in lieu thereof, together with the clearance and other papers granted to the vessel at the port of departure for the Philippines.

If the vessel does not depart within forty-eight hours from the time of its arrival, the register and other shipping documents shall be deposited with the consul of the nation to which the vessel belongs. The person acting for the vessel in the matters above specified shall furnish such evidence as may be required by the Collector showing that the manifest has been supplied to the Auditor and, in the proper case, that the register has been deposited with the consul. Section 1008. Transit Cargo.

When transit cargo from a foreign port or other local ports is forwarded from the port of importation, separate manifest, in triplicate, shall be presented by each carrier. Section 1009. Clearance of Foreign Vessels To and From Coastwise Ports. Passengers or articles arriving from abroad upon a foreign vessel may be carried by the same vessel through any port of entry to the port of destination in the Philippines; and passengers departing from the Philippines or articles intended for export may be carried in a foreign vessel through a Philippine port. Upon such reasonable condition as he may impose, the Commissioner may clear foreign vessels for any port and authorize the conveyance therein of either articles or passengers brought from abroad upon such vessels; and he may likewise, upon such conditions as he may impose, allow a foreign vessel to take cargo and passengers at any port and convey the same upon such vessel to a foreign port. Section 1010. Requirement as to Delivery of Mail. A vessel arriving within a collection district in the Philippines shall not be permitted to make entry or break bulk until it is made to appear, to the satisfaction of the Collector, that the master, consignee or agent of the vessel is ready to deliver to the postmaster of the nearest post office all mail matter on board of such vessel and destined for that port. Collectors are authorized to examine and search vessels for mail carried contrary to law. Section 1011. Production of Philippine Crew. The master of a Philippine vessel returning from abroad shall produce the entire crew listed in the vessel's shipping articles; and if any member be missing, the master shall produce proof satisfactory to the Collector that such member has died, absconded, has been forcibly impressed into other service, or has been discharged; and in case of discharge in a foreign country, he shall produce a certificate from the consul, vice-consul or consular agent of the Philippines there residing, showing that such discharge was effected with the consent of the representative of the Philippines aforesaid. Section 1012. Record of Arrival and Entry of Vessels. A record shall be made and kept open to public inspection in every customhouse of the dates of arrival and entry of all vessels. Section 1013. Arrest of Vessel Departing Before Entry Made.

When a vessel arriving within the limits of a collection district from a foreign port departs or attempts to depart before entry shall have been made, not being thereunto compelled by stress of weather, duress of enemies, or other necessity, the Collector or surveyor of the port or the commander of any revenue cutter may arrest and bring back such vessel to the most convenient port. Section 1014. Discharge of Ballast.

When not brought to port as article, ballast of no commercial value may be discharged upon permit granted by the Collector for such purpose. Section 1015. Time for Unlading of Cargo. Articles brought in a vessel from a foreign port shall be unladen only during regular working hours on regular work days. Unlading at any other time or day may only be done upon authority of the Collector conditioned on the payment of losses and overtime pay by the interested parties. Section 1016. Entrance of Vessel through Necessity.

When a vessel from a foreign port is compelled by stress of weather or other necessity to put into any other port than that of her destination, the master, within twenty-four hours after her arrival, shall make protest under oath setting forth the causes or circumstances of such necessity. This protest, if not made before the Collector, must be produced to him, and a copy thereof lodged with him. Within the same time, the master shall make report to the Collector if any part of the cargo was unladen from necessity or lost by casualty before arrival, and such fact should be made to appear by sufficient proof to the Collector who shall give his approval thereto and the unlading shall be deemed to have been lawfully effected. Section 1017. Unlading of Vessel in Port from Necessity.

If the situation is such as to require the unlading of the vessel pending sojourn in port, the Collector shall, upon sufficient proof of the necessity, grant a permit therefor, and the articles shall be unladen and stored under the supervision of the customs authorities. At the request of the master of the vessel or of the owner thereof, the Collector may grant permission to enter and pay the duties, taxes and other charges on, and dispose of, such part of the cargo as may be of perishable nature or as may be necessary to defray the expenses attending the vessel. Upon departure, the cargo, or a residue thereof, may be reladen on board the vessel, and the vessel may proceed with the same to her destination, subject only to the charge for storing and safe-keeping of the articles and the fees for entrance and clearance. No port charges shall be collected on vessels entering through stress of weather or other causes above described. Section 1018. Entry and Clearance of Vessels of a Foreign Government. The entry and clearance of transport or supply ship of a foreign government shall be in accordance with the agreement by and between the Philippines and the foreign government. Section 1019. Clearance of Vessel for Foreign Port. Before a clearance shall be granted to any vessel bound to a foreign port, the master, or the agent thereof, shall present to the Collector the following properly authenticated documents: a. A bill of health from the quarantine official or official of the public health service in the port. b. Three copies of the manifest of export cargo, one of which, upon certification by the customs official as to the correctness of the copy, shall be returned to the master. c. Two copies of the passenger list, showing alien and other passengers. d. The register and shipping articles, if the vessel is of Philippine registry. e. The consular certificate of entry, if the vessel is of foreign registry, when required. f. A certificate of the Bureau of Posts to the effect that it received timely notice of the sailing of the vessel: Provided, That the Collector shall not permit any vessel to sail for a foreign port if the master or agent thereof refuses to receive bags of mail delivered to the same by the Bureau of Posts for transportation for reasonable compensation.

In case the Director of Posts and said master or agent do not come to an agreement concerning the amount of the compensation to be paid for the carriage of the mail, the matter shall be submitted for decision to a Board of Referees composed of three members appointed, respectively, by the Bureau of Posts, the agency of the company to which the vessel concerned belongs, and the Bureau of Customs, which board shall fix a reasonable rate of compensation. Section 1020. Detention of Warlike Vessel Containing Arms and Munitions. Collectors shall detain any vessel of commercial registry manifestly built for warlike purposes and about to depart from the Philippines with a cargo consisting principally of arms and munitions of war, when the number of men shipped on board or other circumstances render it probable that such vessel is intended to be employed by the owner or owners to cruise or commit hostilities upon the subjects, citizens, or property of any foreign prince or state, or of any colony, district, or people with whom the Philippines is at peace, until the decision of the President of the Philippines be had thereon, or until the owner or owners shall give bond or security, in double the value of the vessel and cargo, that she will not be so employed, if in the discretion of the Collector such bond will prevent the violation of the provisions of this section. Section 1021. Manifest of Export Cargo to be Delivered to Auditor. The master shall, prior to departure, deliver or mail to the Auditor General, Manila, the returned copy of the manifest of export cargo. Section 1022. Oath of Master of Departing Vessel. The master of such departing vessel shall state under oath to the effect: a. That all cargo conveyed on said vessel, with destination to the Philippines, has been duly discharged or accounted for. b. The he has mailed or delivered to the Auditor General Manila, a true copy of the outgoing cargo manifest. c. That he has not received and will not convey any letters or other packets not enclosed in properly stamped envelopes sufficient to cover postage, except those relating to the cargo of the vessel, and that he has delivered at the proper foreign port all mails placed on board his vessel before her last clearance from the Philippines. d. That, if clearing without passenger, the vessel will not carry upon the instant voyage, from any Philippine port, any passenger of any class, or other person not entered upon the ship's declaration. Section 1023. Extension of Time for Clearance. At the time of clearance, the master of a departing vessel shall be required to indicate the time of intended departure, and if the vessel should remain in port forty-eight hours after the time indicated the master shall report to the Collector for an extension of time for departure, and without such extension the original clearance shall be of no effect. Section 1024. Necessity of Tax Clearance. A Collector shall not allow products to be laden aboard a vessel clearing for a foreign port until the shipper shall produce a receipt from an internal revenue official showing that the taxes and other charges upon such products have been paid or a certificate from a proper official showing that the products are exempt from the payment of taxes and other charges. Section 1025. Export Product to Conform to Standard Grades. A Collector shall not permit products for which standard grades have been established by the government to be laden aboard a vessel clearing for a foreign port, unless the shipment conforms to the requirements of law relative to the shipment of such products. PART 2. ENTRANCE AND CLEARANCE OF AIRCRAFT IN FOREIGN TRADE Section 1101. Designation of Airports of Entry. The department head concerned upon recommendation of the Commissioner and the Director of the Bureau of Civil Aviation is authorized to designate airports of entry for civil aircraft arriving in the Philippines from any place outside thereof and for articles carried on such aircraft. Section 1102. Notice of Arrival. (a) Non-scheduled Arrivals. In cases where entry of an aircraft in an area is required, except as hereinafter provided, timely notice of the intended flight shall be furnished to the Collector or other customs official in charge at or nearest the intended place of first landing in such area, and to the quarantine and immigration officials in charge at or nearest such place of landing.

If dependable facilities for giving notice are not available before departure, any radio equipment the plane possesses shall be utilized to give notice during its approach so far as feasible.

If he has not given timely notice or if the government officials have not arrived, the pilot in command on landing shall hold the aircraft and any baggage and article thereon intact and keep the passengers and crew members in a segregated place until the inspecting officials arrive. Except where the uncertainty of communication facilities is already known to the government offices in charge, any pilot in command who has not given timely notice shall furnish affidavit stating the reasons for his failure to do so. Such notice shall specify the type of aircraft, the registration marks thereon, the name of the pilot in command, the place of last departure, the international airport, or other place at which landing has been authorized, the number of alien passengers, number of citizen passengers, and the estimated time of arrival; and shall be sent so as to be received in sufficient time to enable the officials designated to inspect the aircraft to reach the international airport or such other place of first landing prior to the arrival of the aircraft.

If the aircraft does not carry cargo, passengers or immigrants, such facts must be shown in the manifest. c. Cargo manifest shall in no case be changed or altered after entry of the aircraft, except by means of an amendment by the pilot in command or authorized agent thereof, under oath, and attached to the original manifest: Provided, however, That after the invoice and/or entry covering an importation have been received and recorded in the office of the appraiser, no amendment shall be allowed, except when it is obvious that a clerical error or any other discrepancy has been committed without any fraudulent intent in the preparation of the manifest, discovery of which could not have been made until after examination of the importation has been completed. Section 1106. Manifest for Auditor General. The pilot in command or authorized agent of an aircraft, upon arrival from a foreign country, shall deliver or mail to the Auditor General, Manila, a copy of the general declaration properly indorsed by the customs official; and within twenty-four hours after arrival he shall present to the Collector the original copy of the general declaration: Provided, That if the aircraft has been authorized to land at the place other than an international airport of entry, the presentation of said papers should be made to the customs official detailed to meet the aircraft at the place of first landing in the Philippines. Section 1107. Delivery of Mails. Aircraft arriving within a customs collection district in the Philippines shall not be permitted to make entry until it is shown to the satisfaction of the Collector that the pilot in command or authorized agent is ready to deliver to the postmaster or the nearest post-office all mail matters on board such aircraft and destined for that port. Section 1108. Imported Cargoes - Inspection: Payment of Duty. All articles imported or brought into the Philippines by aircraft from a foreign port shall be unladen in the presence of and be inspected by customs officials and, whether dutiable or not, shall be duly entered through a customhouse at an airport of entry. Section 1109. Bonding of Carrier Transporting Articles in Bond. Aircraft of Philippine Registry engaged in conveying dutiable articles in bond from an airport of entry to another airport in the Philippines shall give security in the nature of a general transportation bond in a sum to be fixed by the Collector, conditioned that the carrier shall transport and deliver without delay, and in accordance with law and regulations, to the Collector at the port of destination all articles in bond delivered to such carrier and that all proper charges and expenses incurred by reason of such shipments shall be duly paid. Section 1110. Manifest for Transit Cargo.

When transit cargo from a foreign port or other local ports is forwarded from the port of importation, separate manifest, in triplicate, shall be presented by each carrier. Section 1111. Clearance for Foreign Ports. a. Any aircraft of Philippine registry transporting passengers or articles for hire, and all aircraft of foreign registry, bound to a foreign port, shall clear at an airport of entry or at the same place where such aircraft has been authorized to make its landing by the Commissioner. b. Before clearance shall be granted to an aircraft bound to a foreign port, there shall be presented to the Collector or to the customs official detailed at the place of departure four copies of a general declaration properly signed by him and containing the following data:

If clearing without passengers, the aircraft will not carry upon departure from any Philippine airport, any passenger. TITLE IV ASCERTAINMENT, COLLECTION AND RECOVERY OF IMPORT DUTY PART 1. - IMPORTATION IN GENERAL Section 1201. Articles to Be Imported Only Through Customhouse. All articles imported into the Philippines, whether subject to duty or not, shall be entered through a customhouse at a port of entry. Section 1202.

When Importation Begins and Deemed Terminated. Importation begins when the carrying vessel or aircraft enters the jurisdiction of the Philippines with intention to unlade therein. Importation is deemed terminated upon payment of the duties, taxes and other charges due upon the articles, or secured to be paid, at a port of entry and the legal permit for withdrawal shall have been granted, or in case said articles are free of duties, taxes and other charges, until they have legally left the jurisdiction of the customs. Section 1203. Owner of Imported Articles. All articles imported into the Philippines shall be held to be the property of the person to whom the same are consigned; and the holder of a bill of lading duly indorsed by the consignee therein named, or, if consigned to order, by the consignor, shall be deemed the consignee thereof. The underwriters of abandoned articles and the salvors of articles saved from a wreck at sea, along a coast or in any area of the Philippine may be regarded as the consignees. Section 1204. Liability of Importer for Duties. Unless relieved by laws or regulations, the liability for duties, taxes, fees and other charges attaching on importation constitutes a personal debt due from the importer to the government which can be discharged only by payment in full of all duties, taxes, fees and other charges legally accruing. It also constitutes a lien upon the articles imported which may be enforced while such articles are in custody or subject to the control of the government. Section 1205. Importations by the Government. Except as otherwise specifically provided, all importations by the government for its own use or that of its subordinate branches on instrumentalities, or corporations, agencies or instrumentalities owned or controlled by the government, shall be subject to the duties, taxes, fees and other charges provided for in this Code: Provided, however, That upon certification of the head of the department or political subdivision concerned, with the approval of the Auditor General, that the imported article is actually being used by the government or any of its political subdivision concerned, the amount of duty, tax, fee or charge shall be refunded to the government or the political subdivision which paid it. Section 1206. Jurisdiction of Collector Over Importation of Articles. The Collector shall cause all articles entering the jurisdiction of his district and destined for importation through his port to be entered at the customhouse, shall cause all such articles to be appraised and classified, and shall assess and collect the duties, taxes and other charges thereon, and shall hold possession of all imported articles upon which duties, taxes, and other charges have not been paid or secured to be paid, disposing of the same according to law. Section 1207. Jurisdiction of Collector Over Articles of Prohibited Importation. Where articles are of prohibited importation or subject to importation only upon conditions prescribed by law, it shall be the duty of the Collector to exercise such jurisdiction in respect thereto as will prevent importation or otherwise secure compliance with all legal requirements. Section 1208. Imported Articles to be Received in General Order Stores. Unless otherwise directed by the Collector, all articles except bulk cargo shall be received in general order stores. Section 1209. Limit of Period for Discharge. The period within which discharge should be effected is as follows: Vessels of less than three hundred tons, eight working days after entry; Vessels of three hundred tons and less than eight hundredtons, twelve working days after entry; Vessels of eight hundred tons and upward, fifteen working days after entry. The working days of a vessel shall be computed by excluding the date of entry, legal holidays and stormy days when in the opinion of the Collector, discharge of cargo is impracticable. Section 1210. Disposition of Imported Articles Remaining on Vessel After Time for Unlading. Imported articles remaining on board any vessel after the expiration of the said period for discharge, and not reported for transhipment to another port, may be unladen by the customs authorities and stored at the vessel's expense. Articles so stored may be claimed and entered at any time within fifteen days after discharge or such longer period not beyond thirty days as the Collector shall approve.

If not entered it shall be sold at public auction at the next ensuing regular sale, though at any time prior to sale it may be entered for consumption or warehouse, and be withdrawn upon payment of duties, taxes and other charges, and expenses. Section 1211. Handling of Articles on Which Duty Has Not Been Paid. Except when done under customs supervision, all unlading or transhipment of the cargo of vessels from foreign ports, which do not discharge at a wharf, must be by bonded lighters; and likewise, on land imported goods on which duty has not been paid shall be carried about and handled by bonded draymen or cartmen only. Section 1212. Government Plan for Handling Imported Articles. Government plant for handling articles on or around the customs premises shall be maintained at the port of Manila and at any port of entry prescribed by the Commissioner, when the proper conduct of the customs business shall so require. Where such plants are established, it shall be their function to receive, land and deliver imported articles and to handle the same, so far as may be necessary, while on customs premises. Such plants shall also handle articles for export while on the customs premises, and, in the discretion of the Commissioner, may deliver article abroad vessels for export. Section 1213. Receiving, Handling, Custody and Delivery of Articles. The Bureau of Customs shall have exclusive supervision and control over the receiving, handling, custody and delivery of articles on the wharves and piers at all ports of entry and in the exercise of its functions it is hereby authorized to acquire, take over, operate and superintend such plants and facilities as may be necessary for the receiving, handling, custody and delivery of articles, and the convenience and comfort of passengers and the handling of baggage, as well as to acquire fire protection equipment for use in the piers: Provided, That whenever in his judgment the receiving, handling, custody and delivery of articles can be carried on by private parties with greater efficiency, the Commissioner may, after public bidding and subject to the approval of the department head contract with any private party for the service of receiving, handling, custody and delivery of articles, and in such event, the contract may include the sale or lease of government-owned equipment and facilities used in such service. PART 2 ENTRY AT CUSTOMHOUSE.

Section 1301. Persons Authorized to Make Import Entry. Imported articles must be entered in the customhouse at the port of entry within fifteen days from date of discharge of the last package from the vessel either (a) by the importer, being holder of the bill of lading, (b) by any other holder of the bill of lading in due course, (c) by a customs broker acting under authority from a holder of the bill, or (d) by a person duly empowered to act as agent or attorney-in-fact for such holder: Provided, That the Collector may grant an extension of not more than fifteen days. Section 1302. Import Entries. All imported articles, except importation admitted free of duty under subsection "o", section one hundred and five of this Code, shall be subject to a formal or informal entry. Articles of a commercial nature intended for sale, barter or hire, the dutiable value of which is five hundred pesos or less, and personal and household effects or articles, regardless of value, imported in passenger's baggage mail, or otherwise, for personal use, may be cleared on an informal entry whenever duty, tax or other charges are collectible. The Collector may, when he deems it necessary for the protection of the revenue, require a formal entry regardless of value. A formal entry may be for immediate consumption, or under bond for: a. Placing the articles in warehouse; b. Constructive warehousing and immediate transportation to other ports of the Philippines without appraisement; or c. Constructive warehousing and immediate exportation. Import entries under bond shall be subject to the provisions of Title V, Book II of this Code. Section 1303. Entry of Articles in Part for Consumption and in Part for Warehousing. Import entries of articles covered by one bill of lading may be made simultaneously for both consumption and warehouse. Where an intent to export the articles is shown by the bill of lading and invoice, the whole or a part of a bill of lading (not less than one package may be entered for warehouse and immediate exportation. Articles received at any port from another port of the Philippines on any entry for immediate transportation without appraisal may be entered at the port of delivery either for consumption or warehouse. Section 1304. Declaration of the Import Entry. Except in case of informal entry, no entry of imported article shall be effected until there shall have been submitted to the Collector a written declaration, in such form as shall be prescribed by the Commissioner, containing statements of substance as follows: a. That the entry delivered to the Collector contains a full and true statement of all the articles which are the subject of the entry. b. That the invoice and entry contain a just and faithful account of the actual cost of said articles, including and specifying the value of all containers or coverings, and that nothing has been omitted therefrom or concealed whereby the Government of the Republic of the Philippines might be defrauded of any part of the duties lawfully due on the articles. c. That, to the best of declarant's information and belief, the invoice and all bills of lading relating to the articles are the only ones in existence relating to the importation in question and that they are in the state in which they were actually received by him; and, furthermore, d. That, to the best of the declarant's information and belief, the entry, invoice and bill of lading, and the declaration thereon are in all respects genuine and true, and were made by the person by whom the same purport to have been made, respectively. Section 1305. By Whom to be Signed. The declaration shall be signed by the importer, consignee or holder of the bill, by or for whom the entry is effected, if such person is an individual, or in case of a corporation, firm or association, by its manager, or by a licensed customs broker duly authorized to act for either of them. When it is impracticable to obtain a declaration thus signed, the Collector may allow it to be signed by some person in interest having first and best knowledge of the facts. A Collector may also, in his discretion, require that the declaration shall be sworn to by the person signing the same. Section 1306. Form and Contents of Import Entry. Import entries shall be in the required number of copies in such form as prescribed by regulations. They shall be signed by the person making the entry of the articles, and shall contain the names of the importing vessel and master, port of departure and date of arrival, the number and marks of packages, or the quantity, if in bulk, and the nature of the articles contained therein, and its value as set forth in a proper invoice to be presented in duplicate with the entry. Section 1307. Description of Articles. The description of the articles in the import entry shall be in customary terms or communal designation, or, if feasible and practical, in tariff terms, and in the currency of the invoice; and the values of the several classes of articles shall be separately declared according to their respective rates of duty, and the totals of each class duly shown. Section 1308. Invoice Contents of. Invoice of articles imported into the Philippines shall set forth a. The place where, the date when, and the person by whom and the person to whom the articles are sold or agreed to be sold, or if to be imported otherwise than in pursuance of a purchase, the place from which shipped, the date when, and the person to whom and the person by whom they are shipped; b. The port of entry to which the articles are destined; c. A detailed description of the articles in customary terms or commercial designation, including the grade or quality, numbers, marks or symbols under which sold by the seller or manufacturer, together with the marks and numbers of the packages in which the articles are packed; d. The quantities in the weights and measures of the country or place from which the articles are shipped, or in the weights and measures of the Philippines; e. The purchase price of each item in the currency of the purchase and in the unit of the quantity in which the articles were bought and sold in the place or country of exportation, if the articles are shipped in pursuance of a purchase or an agreement to purchase; f. The kind of currency; whether gold, silver or paper; g. If the articles are shipped otherwise than in pursuance of a purchase or an agreement to purchase, the value for each item in the unit of quantity in which the articles are usually bought and sold, and in the currency in which the transactions are usually made, or, in the absence of such value, the price in such currency which the manufacturer, seller, shipper or owner would have received, or was willing to receive, for such articles if sold in the ordinary course of trade and in the usual wholesale quantities in the country of exportation; h. All charges upon the articles itemized by name and amount when known to the seller or shipper; or all charges by name (e.g., commission, insurance, freight, cases, containers, coverings and cost of packing) included in invoice prices when the amounts for such charges are unknown to the seller or shipper; i. All discounts, rebates, drawbacks and bounties separately itemized, allowed upon the exportation of the articles, all internal and excise taxes applicable to the home market; j. The current price at which same, like or similar article is offered for sale for exportation to the Philippines, on the date the invoice is prepared or the date of exportation; and k. Any other facts deemed necessary to a proper examination, appraisement and classification of the articles which the Commissioner may require. Section 1309. Certification of Invoice. a. Consular Certification Required. Invoice required by the preceding section shall, at or before the shipment of the articles or as soon thereafter as conditions will permit, be produced for certification to the consular officer of the Philippines of the consular district in which the articles were manufactured or purchased, or from which they are shipped, as the case may be: Provided, That in the absence of a Philippine consul in the country of exportation, such invoice may be certified by the consul of any friendly country in the country of exportation, or by any responsible official of the country of exportation. b. Declaration. Every invoice prescribed above shall contain a declaration signed by the purchaser, manufacturer, seller, owner or agent setting forth that the invoice is in all respects correct and true and was made at the place whence the articles are exported to the Philippines; that it contains, if the articles were obtained by purchase or an agreement to purchase, a true and full statement of the date when, the place where, the person from whom the same were purchased and the purchase price and unit of quantity thereof, and of all charges thereon; and that no discounts, bounties or drawbacks are contained in the invoice except such as have been allowed thereon; and when obtained in any other manner than by purchase or an agreement to purchase, the market value on wholesale price thereof at the time of exportation to the Philippines in the principal market of the country from which exported; that such market value is the price in the unit of quantity at which the articles described in the invoice are freely offered for sale to all purchasers in said market for exportation to the Philippines, and that it is the price which the manufacturer, seller, owner or agent making the declaration would have received and was willing to receive for such articles when sold in the ordinary course of trade in the usual wholesale quantities, and that it included all charges thereon; that the number, weight, measurement or quantity stated is correct, and that no invoice of the articles described different from the invoice so produced has been or will be furnished to anyone. If the articles were purchased, or shipped otherwise than in pursuance of a purchase or an agreement to purchase, the declaration shall also contain a statement that the amount in the unit of quantity shown is that which was paid, or the price in the unit of quantity that the shipper would have received, or was willing to receive, for such articles, and that the currency stated in such invoice is the currency of the purchase, or in which the transaction is usually made. c. Making and Signing. The invoice to be certified in accordance with the provisions of this section shall be made out in five copies and signed by the manufacturer or seller if the articles have been purchase, or by the manufacturer, shipper or owner thereof if the same have been procured or obtained otherwise than by purchase, or by the duly authorized agent of such manufacturer, seller, shipper or owner. d. Purchases in Different Consular Districts. When articles have been purchased in different consular districts for shipment to the Philippines and are assembled for shipment and embraced in a single invoice which is produced for certification under the provisions of this section, there shall be attached to the consular invoice the original bills or invoices certified by the manufacturer or seller and received by the shipper showing the prices paid or to be paid for such articles. The consular officer to whom the invoice is so produced for certification may require that any such original bill or invoice be certified by the consular officer for the district in which the articles were purchased. e. Disposition. The original and the quintuplicate of the invoice shall be delivered to the exporter, the former to be forwarded to the consignee for use in making entry of the articles. The duplicate shall be filed in the office of the consular officer by whom the invoice was certified there to be kept until the Secretary of Foreign Affairs authorizes its destruction. The triplicate shall be promptly transmitted by the consular officer to the Collector of the port of entry named in the invoice, and the quadruplicate to the Tariff Commission, through the Department of Foreign Affairs. Section 1310. Invoice to Accompany Every Importation over P500 in Export Value. Except in case of personal and household effects accompanying a passenger as baggage, or arriving within a reasonable time which in no case shall exceed ninety days before or after the owner's return, or in case of other articles brought in for personal use, no importation of articles exceeding five hundred pesos in export value shall be admitted to entry without the production of a duly certified invoice of the kind hereinabove described, or the filing of an affidavit made by the owner, importer or consignee before the Collector, showing why it is not possible to produce such invoice, together with a bond, conditioned upon the production of such invoice within a reasonable time, in an amount prescribed by law, rules or regulations. In the absence of such invoice, no entry shall be made based on the aforesaid affidavit unless the same be accompanied by a commercial invoice signed by the manufacturer or seller or a statement in the form of an invoice showing the purchase price of such articles in the unit of quantity and currency of the purchase, if same were purchased, or if obtained otherwise than by purchase, the market value or wholesale price thereof at the time of exportation to the Philippines at which sold or offered for sale in the principal markets of the country from whence imported for export to the Philippines, and in the currency and unit of quantity in which the transaction is usually made. This statement shall be verified by the oath of the owner, importer, consignee or agent desiring to make the entry, taken before the Collector and it shall be lawful for that official to examine the deponent under oath regarding the source of his knowledge, information or belief, concerning any matter contained in his affidavit, and to require him to produce any correspondence, document or statement of account in his possession or under his control, which may assist the customs authorities in ascertaining the value of the importation or of any part thereof; and in the event of his failure to produce such correspondence, document or statement of account when so required, such owner, importer, consignee or agent shall thereafter be barred from producing such correspondence, document or statement for the purpose of avoiding the imposition of additional duty, penalty or forfeiture incurred under this Code or any other Act in force in the Philippines unless it is shown to the satisfaction of the Collector that it was not in his power to produce the same when so demanded; but no articles shall be admitted to entry under the provisions of this section unless the Collector shall be satisfied that the failure to produce the required invoice is due to causes beyond the control of the owner, importer, consignee or agent: Provided, That whenever it is shown to the satisfaction of the Collector that it is impossible to produce the consular invoice required by this section, the entry of the articles may be effected upon the filing of a commercial or pro forma invoice and the payment of a surcharge provided by section twenty-five hundred and two of this Code. Section 1311. Fraudulent Invoice Report. Officers of the Philippine foreign service having knowledge or information of any case or practice by which a person obtaining verification of an invoice defrauds or may defraud the revenue of the Philippines shall report the facts to the Commissioner, through the Secretary of Foreign Affairs. Section 1312. Bond for Subsequent Production of Invoice. When it is impossible to produce the consular invoice at the time entry is made, the Collector may accept a commercial or pro forma invoice and require a bond to be given for the subsequent production of the consular invoice. In the case of articles dutiable ad valorem the bond shall be in an amount of not less than fifty per centum of the estimated duties, taxes and other charges upon the importation: Provided, That in no case shall the bond be less than two hundred pesos. Section 1313. Information Furnished Prior to Entry. a. As to Classification. When an article imported or intended to be imported is not specifically mentioned in this Code, the interested party, importer or foreign exporter may submit to the Tariff Commission a sample together with a full description of its component materials and uses, and request it in writing to indicate the heading under which the article is or shall be dutiable, and the Tariff Commission shall comply with such request if it is satisfied that the application is made in good faith, in which case classification of the article in question, upon the particular importation involved, shall be made according to the heading indicated by the Tariff Commission. b. As to Value. Upon written application of the consignee or his agent, the Collector shall furnish any importer the latest information in his possession as to the value of the articles to be entered at his port, after arrival or upon satisfactory evidence that they have been exported and are en route to the Philippines: Provided, that the information shall be given only if the Collector is satisfied after questioning the importer and examining all pertinent papers presented to him, such as invoices, contracts of sale or purchase, and orders, that the importer is acting in good faith and is unable to obtain proper information as to the value of the articles on the date of exportation due to unusual conditions: And provided, further, That the information so given is in no sense an appraisal or binding upon the Collector's action on appraisal. Section 1314. Forwarding of Cargo and Remains of Wrecked Vessel or Aircraft. When vessels or aircrafts are wrecked within the Philippines, application must be made to the Commissioner by the original owners or consignees of the cargo, or by the underwriters, in case of abandonment to them, for permission to forward the articles saved from the wreck to the ports of destination, in other conveyance, without entry at the customhouse in the district in which the article was cast ashore or unlade. On receipt of such permission, the articles may be so forwarded with particular manifests thereof, duly certified by the customs official in charge of the articles. If the owner of the vessel or aircraft wishes to export the remains of the wreck, he may be permitted to do so upon proper examination and inspection. The remains of a wrecked vessel shall be considered to be not only the hull and rigging of the same but also all sea stores and articles of equipment, such as sails, ropes, chains, anchors and so forth. Section 1315. Derelicts and Articles from Abandoned Wrecks. Derelicts and all articles picked at sea or recovered from abandoned wrecks, shall be taken possession of in the port or district where they shall first arrive, and be retained in the custody of the Collector, and if not claimed and entered, as the case may be, by the owner, underwriter or salvor, shall be dealt with as unclaimed property. When such articles are brought into port by lighters or other craft, each of such vessel shall make entry by manifest of her cargo. If, in case of wreck there be no customhouse at the point where the vessel or aircraft is wrecked, the coastguard of customs official nearest the scene of the wreck shall render all possible aid in saving the crew and cargo of the vessel or aircraft, taking charge of the articles saved and giving immediate notice to the Collector of the nearest customhouse. In order to prevent any attempt to defraud the revenue the Collector shall be represented at the salvage of the cargo by customs officials detailed for that purpose, who shall examine and countersign the inventory made of such cargo and receive a copy of the same. Derelicts and articles salvaged from foreign vessels or aircrafts picked up at sea, or taken from wreck is prima facie dutiable and may be entered for consumption or warehousing. If claimed to be of Philippine production, and consequently free, proof must be adduced as in ordinary cases of reimportation of articles. Foreign articles landed from a vessel or aircraft in distress is dutiable if sold or disposed of in the Philippines. Before any article which has been taken from a recent wreck shall be admitted to entry, the same shall be appraised, and the owner or importer shall have the same right to appeal as in ordinary importation. No part of a Philippine vessel or aircraft or her equipment, wrecked either in Philippine or foreign waters, shall be subject to duty. PART 3 - EXAMINATION, CLASSIFICATION AND APPRAISAL OF IMPORTED ARTICLES Section 1401. Designation of Packages To be Examined. Unless the Collector is of the opinion that the examination of a less or greater proportion of packages will amply protect the revenues, there shall be designated for examination and appraisal, at least one package of every invoice, and at least one package of every ten packages of articles imported: Provided, That nothing in this section shall preclude the examiner from examining additional or all the packages when he deems it necessary to protect the government revenues and public interest. Section 1402. Ascertainment of Weight and Quantity. Where articles dutiable by weight, and not otherwise specially provided for, are customarily contained in packing, packages, or receptacles of uniform or similar character, it shall be the duty of the Commissioner, from time to time, to ascertain by tests the weight or quantity of such articles, and the weight of the packing, packages or receptacles thereof, respectively, in which the same are customarily imported, and upon such ascertainment, to prescribe rules for estimating the dutiable weight or quantity thereof, and thereafter such articles, imported in such customarily packing, packages or receptacles shall be entered, and the duties thereon levied and collected, upon the bases of such estimated dutiable weight or quantity: Provided, That if the importer, consignee or agent shall be dissatisfied with such estimated dutiable weight or quantity, and shall file with the Collector prior to the delivery of the packages designated for examination a written specification of his objections thereto, or if the Collector shall have reason to doubt the exactness of the prescribed weight or quantity in any instance, it shall be his duty to cause such weights or quantities to be ascertained. Section 1403. Return of Examining Official. The examining official shall compare the packages designated for examination and their contents with the invoice and shall make return of the description of the articles covered thereby in such a manner as to indicate whether the articles have been truly and correctly measured and declared and not imported contrary to law, whether or not the quantities are correct, and, in case of articles dutiable ad valorem, whether the prices indicated show the correct value of the articles. Examining officials shall submit samples to the laboratory for analysis when feasible to do so and when such analysis is necessary to the proper classification, appraisal and/or admission into the Philippines of imported articles. Section 1404. Duties of Appraisers. Appraisers shall, under the supervision of the Collector, appraise the articles in the unit of quantity in which they are usually bought and sold, and determine the classification of all such articles of whatever description, whether dutiable or free, which may be presented to them in proper form. Appraisers shall be responsible to the Collector for the correct appraisal of all such articles. They shall see to it that the amounts, classes and values returned by them are in all respects accurate and correct pursuant to the provisions of this Code, and that the rules and instructions of the Commissioner in respect thereto have been correctly applied and followed. Section 1405. Proceedings and Report of Appraisers. Appraisers, shall by all reasonable ways and means, ascertain, estimate and determine the value or price of the articles as required by law, any invoice or affidavit thereto or statement of cost, or of cost of production to the contrary notwithstanding, and after revising and correcting the reports of the examine as they may judge proper, shall report in writing on the face of the entry the value so determined, irrespective of whether such value is equal, higher or lower than the invoice and/or entered value of the articles. Appraisers shall describe all articles on the face of the entry in tariff and such terms as will enable the Collector to pass upon the appraisal and classification of the same, which appraisal and classification shall be subject to his approval or modification, and shall note thereon the measurements and quantities, and any disagreement with the declaration. Section 1406. Appraisers' Samples. Appraisers shall see that representative and sufficient samples of all kinds of articles which may be readily sampled are taken under proper receipt and retained for official purposes; but samples of articles identical in quality, material and values shall not be retained, if their return is desired, longer than may be required for use in contested cases. The quantity and value of the samples taken shall be noted on the face of the entry. Such samples shall be duly labelled as will definitely identify them with the importation for which they are taken. Section 1407. Readjustment of Appraisal, Classification or Return. Such appraisal, classification or return as finally passed upon and approved or modified by the Collector shall not be altered or modified in any manner, except: a. Within one year after payment of the duties, upon statement of error in conformity with section seventeen hundred and seven hereof, approved by the Collector. b. Within fifteen days after such payment, upon request for reappraisal and/or reclassification addressed to the Commissioner by the Collector, if the appraisal and/or classification is deemed to be low. c. Upon request for reappraisal and/or reclassification, in the form of a timely protest addressed to the Collector by the interested party if the latter should be dissatisfied with the appraisal or return. Section 1408. Assessment of Duty on Less Than Entered Value. Duty shall not be assessed in any case upon an amount less than the entered value, unless by direction of the Commissioner in cases in which the importer certifies at the time of entry that the entered value is higher than the market value and that the articles are so entered in order to meet increases made by the appraised on similar cases then pending reappraisement; and the lower assessment shall be allowed only when the importer's contention is sustained by final decision, and shall appear that such action of the importer was taken in good faith after due diligence and inquiry on his part. Section 1409. Employment and Compensation of Persons to Assist in Appraisal or Classification of Articles. When necessary, the Collector may request two disinterested persons versed in the matter to assist the appraiser in appraising or ascertaining the value of any article. Persons so employed shall be paid compensation in an amount, to be determined by the Commissioner, not exceeding ten pesos for each day of such service. PART 4. DELIVERY OF ARTICLES Section 1501. Delivery of Articles to Holder of Bill of Lading. A Collector who makes a delivery of a shipment, upon the surrender of the bill of lading, to a person who by the terms thereof appears to be the consignee or lawful holder of the bill shall not be liable on account of any defect in the bill or irregularity in its negotiation, unless he has notice of the same. Section 1502. Delivery of Articles Without Production of Bill of Lading. No Collector shall deliver imported articles to any person without the surrender by such person of the bill of lading covering said article, except on written order of the carrier or agent of the importing vessel or aircraft, in which case neither the Government nor the Collector shall be held liable for any damages arising from wrongful delivery of the articles: Provided, however, That where delivery of articles is made against such written order of the carrier or agent of the importing vessel or aircraft, the Collector may, for customs purposes, require the production of an exact copy of the bill of lading therefor. Section 1503. Bond Upon Delivery of Unexamined Packages. To effect immediate delivery of packages not ordered for examination, the Collector may accept a bond in such sum and with such conditions as shall be sufficient to safeguard the revenue. If such security is not supplied, all the packages shall be held until the return is made and duties, taxes and other charges paid. Section 1504. Delivery Upon Order of Importer. An importer of record may authorize delivery to another person by writing upon the face of the warehouse withdrawal entry his order to that effect. Such authority to deliver the article under bond shall not relieve the importer and his sureties from liability for the payment of the duties, taxes and other charges due on the said article unless the person to whom delivery was authorized to be made assumes such liability by the filing of a new warehousing bond. Section 1505. Withholding Delivery Pending Satisfaction of Lien. When the Collector is duly notified in writing of a lien for freight, lighterage or general average upon any imported articles in his custody, he shall withhold the delivery of the same until he is satisfied that the claim has been paid or secured. In case of a disagreement as to the amount due between the party filing the lien and the importer regarding the amount of the freight and lighterage based upon the quantity or weights of the articles imported, the Collector may deliver the articles upon payment of the freight and lighterage due on the quantity or weight actually landed as shown by the return of the proper official or by other means to his satisfaction. Section 1506. Customs Expenses Constituting Charge on Articles. All expenses incurred by the customs service for the handling or storage of articles and other necessary operations in connection therewith, or incident to its seizure, shall be charged against such articles, and shall constitute a lien upon it. Section 1507. Fine As Charge on Articles. No article which is liable for any fine or surcharge imposed under the tariff and customs laws shall be delivered until the same shall have been paid or secured. PART 5. LIQUIDATION OF DUTIES Section 1601. Liquidation and Record of Entries. If the Collector shall approve the returns of the appraiser and the report of the weights, gauge or quantity, the liquidation shall be made on the face of the entry showing the particulars thereof, initiated by the liquidating clerk, approved by the chief liquidator, and recorded in the record of liquidations. A daily record of all entries liquidated shall be posted in the public corridor of the customhouse, stating the name of the vessel or aircraft, the port from which she arrived, the date of her arrival, the name of the importer, and the serial number and date of the entry. A daily record must also be kept by the Collector of all additional duties, taxes and other charges found upon liquidation, and notice shall promptly be sent to the interested parties. Section 1602. Tentative Liquidation. If to determine the exact amount due under the law in whole or in part some future action is required, the liquidation shall be deemed to be tentative as to the item or items affected and shall to that extent be subject to future and final readjustment and settlement. The entry in such case shall be stamped "Tentative liquidation". Section 1603. Finality of Liquidation. When articles have been entered and passed free of duty or final adjustment of duties made, with subsequent delivery, such entry and passage free of duty or settlement of duties will, after the expiration of one year, from the date of the final payment of duties, in the absence of fraud or protest, be final and conclusive upon all parties, unless the liquidation of the import entry was merely tentative. Section 1604. Treatment of Fractions in the Liquidation. In determining the total amount of duties, taxes, surcharges, wharfage and/or other charges to be paid on entries, a fraction of a peso less than fifty centavos shall be disregarded, and a fraction of a peso amounting to fifty centavos or more shall be considered as one peso. In case of overpayment or underpayment of duties, taxes, surcharges, wharfage and/or other charges paid on entries, where the amount involved is less than five pesos, no refund or collection shall be made. PART 6. ABATEMENTS AND REFUNDS Section 1701. Abatement for Damage Incurred During Voyage. Except as herein specially provided, no abatement of duties shall be made on account of damage incurred or deterioration suffered during the voyage of importation; and duties will be assessed on the actual quantity imported, as shown by the return of weighers, gaugers, measures, examiners or appraisers, as the case may be. Section 1702. Abatement or Refund of Duty on Missing Package. When any package or packages appearing on the manifest or bill of lading are missing, a remission or refund of the duty thereon shall be made if it is shown by proof satisfactory to the Collector that the package or packages in question have not been imported into the Philippines. Section 1703. Abatement or Refund for Deficiency in Contents of Package. If, upon opening any package, a deficiency or absence of any article, or of part of the contents thereof, as called for by the invoice shall be found to exist, such deficiency shall be certified to the Collector by the appraiser; and upon the production of proof satisfactory to the Collector showing that the shortage occurred before the arrival of the article in the Philippines, the proper abatement or refund of the duty shall be made. Section 1704. Abatement or Refund of Duties on Articles Lost or Destroyed after Arrival. A Collector may abate or refund the amount of duties accruing or paid, and may likewise make a corresponding allowance or credit on the entry bond, or other document, upon satisfactory proof of the injury, destruction, or loss by theft, fire or other causes of any article as follows: a. While within the limits of any port of entry prior to unlading under customs supervision. b. While remaining in customs custody after unlading. c. While in transit under bond from the port of entry to any port in the Philippines. d. While released under bond to export, except in case of loss by theft. Section 1705. Abatement of Duty on Dead or Injured Animals. Where it is satisfactorily shown to the Collector that an animal which is the subject of importation dies or suffers injury before arrival, or while in customs custody, the duty shall be correspondingly abated by him, provided the carcass of any dead animal remaining on board or in customs custody be removed in the manner required by the Collector and at the expense of the importer. Section 1706. Investigation Required in case of Abatements and Refunds. The Collector shall in all cases of allowances, abatements or refunds of duties, cause an examination and report in writing to be made as to any fact discovered during such examination which tends to account for the discrepancy or difference and cause the corresponding adjustment to be made on the import entry. Section 1707. Correction of Errors Refund of Excess Payments. Manifest clerical errors made in an invoice or entry, errors in return of weight, measure and gauge, when duly certified to by the surveyor or examining official (when there are such officials at the port), and errors in the distribution of charges on invoices not involving any question of law and certified to by the examining official, may be corrected in the computation of duties, if such errors be discovered before the payment of duties, or, if discovered within one year after the final liquidation, upon written request and notice of error from the importer, or upon statement of error certified by the Collector. For the purpose of correcting errors specified in the next preceding paragraph the Collector is authorized to reliquidate entries and collect additional charges, or to make refunds on statement of error within the statutory time limit. Section 1708. Claim for Refund and Mode of Payment. All claims for refund of duties shall be made in writing, and forwarded to the Collector to whom such duties are paid, who upon receipt of such claim shall verify the same by the records of his office, and if found to be correct and in accordance with law, shall certify the same to the Commissioner with his recommendation together with all necessary papers and documents. Upon receipt by the Commissioner of such certified claim he shall cause the same to be paid if found correct. PART 7. ABANDONMENT OF IMPORTED ARTICLES Section 1801. Abandonment, Kinds and Effect of . Abandonment is express when it is made direct to the Collector by the interested party in writing, and it is implied when, from the action or omission of the interested party, an intention to abandon can be clearly inferred. The failure of any interested party to file the import entry within fifteen days or any extension thereof from the discharge of the vessel or aircraft, shall be implied abandonment. An implied abandonment shall not be effective until the article is declared by the Collector to have been abandoned after notice thereof is given to the interested party as in seizure cases. Any person who abandons an imported article renounces all his interests and property rights therein. Section 1802. Abandonment of Imported Articles. The owner or importer of any articles may, within ten days after filing of the import entry, abandon to the Government all or a part of the articles included in an invoice, and, thereupon, he shall be relieved from the payment of duties, taxes and all other charges and expenses due thereon: Provided, That the portion so abandoned is not less than ten per cent of the total invoice and is not less than one package, except in cases of articles imported for personal or family use. The article so abandoned shall be delivered by the owner or importer at such place within the port of arrival as the Collector shall designate, and upon his failure to so comply, the owner or importer shall be liable for all expenses that may be incurred in connection with the disposition of the articles. Nothing in this section shall be construed as relieving such owner or importer from any criminal liability which may arise from any violation of law committed in connection with the importation of the abandoned article. Section 1803. Right to Reclaim Article. The owner or importer of an article impliedly abandoned may, at any time before it is sold or otherwise disposed of, reclaim such article provided all legal requirements regarding its importation are complied with and the corresponding duties, taxes and other charges as well as all expenses incurred as a consequence of the abandonment, are paid. TITLE V WAREHOUSING OF IMPORTED ARTICLES PART 1. WAREHOUSING IN GENERAL Section 1901. Establishment and Supervision of Warehouses. When the business of the port requires such facilities, the Collector shall designate and establish warehouses for use as general order stores, public and private bonded warehouses, sheds or yards, or for other purposes. All such warehouses and premises shall be subject to the supervision of the Collector, who shall impose such conditions as may be deemed necessary for the protection of the revenue and of the articles stored therein. Section 1902. Responsibility of Government. The Government assumes no legal responsibility in respect to the safekeeping of articles stored in any customs or bonded warehouse. Section 1903. Bonded Warehouses. Application for the establishment of bonded warehouses must be made in writing to the Collector, describing the premises, the location, and capacity of the same, and the purpose for which the building is to be used. Upon receipt of such application, the Collector shall cause an examination of the premises to be made, with reference particularly to its location, construction and means provided for the safekeeping of articles and if found satisfactory he may authorize its establishment, and accept a bond for its operation and maintenance. The Collector shall appoint storekeepers and other employees for such bonded warehouses, whose salaries shall be collected from operators of warehouses where the service is rendered. Section 1904. Warehousing Bond. After articles declared is the entry for warehousing have been examined and the duties, taxes and other charges had been determined, the Collector shall require from the importer, a bond equivalent to one and one-half times the amount of such duties, taxes and other charges, conditioned upon the withdrawal of the articles within the period prescribed by section nineteen hundred and eight of this Code and for payment of any duties, taxes and other charges to which the articles shall be then subject. Section 1905. Discontinuance of Warehouses. The use of any warehouse may be discontinued by the Collector at any time when conditions so warrant, or, in case of a private warehouse upon receipt of written request to that effect from the operator thereof of the premises, provided all the requirements of the law and regulations have been complied with by said operator. Where dutiable article is stored in such premises the same must be removed at the risk and expense of the operator and the premises shall not be relinquished, nor discontinuance of its use authorized, until after a careful examination of the accounts of the warehouse and a comparison thereof with the books of the customhouse shall have been made. Section 1906. Entry of Articles for Warehousing. The entry of articles for warehousing shall be in the required number of copies in the prescribed form, and shall be verified as in the entry of articles for consumption. No warehousing entry shall be accepted for any article if from the entry, supporting documents and/or information such article is imported contrary to any law. Section 1907. Withdrawal of Articles from Bonded Warehouse. Articles entered under bond may be withdrawn at any time for consumption, for transportation to another port, for exportation or for delivery on board a vessel or aircraft engaged in foreign trade for use on board such vessel or aircraft as sea stores or stores for aircraft after liquidation of the entry. The withdrawal must be made by a person or firm named in the original warehouse entry, or by a person or firm duly authorized by the former, whose authority must appear in writing upon the face of the withdrawal. Section 1908. Limit to Period Of Storage in Bonded Warehouse. Articles duly entered for warehousing may remain in bonded warehouses for a period of two years from the time of arrival at the port of entry, which period may for sufficient reason be further extended for not more than one year by the Commissioner whenever sufficient reasons for such extension are presented to him. Articles not withdrawn at the expiration of the prescribed period shall be sold at auction by the Collector. Section 1909. Charges of Storage In Bonded Warehouses. The rates of storage in public or private bonded warehouses shall be subject to arrangement between the importer and the warehouse operator, but such rates shall not be in excess of the customary charges fixed by the Collector of the port for such warehouses. PART 2. BONDED MANUFACTURING AND SMELTING WAREHOUSES Section 2001. Establishment of Bonded Manufacturing Warehouses. All articles manufactured in whole or in part of imported materials, and intended for exportation without being charged with duty, shall, in order to be so manufactured and exported, be made and manufactured in bonded warehouses under such rules and regulations as the Commissioner, with the approval of the department head, shall prescribed: Provided, That the manufacturer of such articles shall first file a satisfactory bond for the faithful observance of all laws, rules and regulations applicable thereto. Section 2002. Exemption From Duty. a. Whenever articles manufactured in any bonded warehouse established under the provisions of the preceding section shall be exported directly therefrom or shall be duly laden for immediate exportation under the supervision of the proper official such articles shall be exempt from duty. b. Any imported material used in the manufacture of such articles, and any packages, coverings, brands and labels used in putting up the same may, under the regulations prescribed by the Commissioner with the approval of the department head, be conveyed without the payment of duty into any bonded manufacturing warehouse, and imported articles may, under the aforesaid regulations, be transferred without the payment of duty from any bonded warehouse into any bonded manufacturing warehouse; but this privilege shall not be held to apply to implements, machinery or apparatus to be used in the construction or repair of any bonded manufacturing warehouse or for the operation of the business carried on therein. Section 2003. Procedure for Withdrawal. Articles received into such bonded manufacturing warehouse or articles manufactured therein may be withdrawn or removed therefrom for direct shipment and for immediate exportation in bond to foreign countries under the supervision of the proper official, who shall certify to such shipment and exportation, or lading for immediate exportation as the case may be, describing the articles by their mark or otherwise, the quantity, the date of exportation and the name of the vessel or aircraft: Provided, That the waste and by-products incident to the processes of manufacture in said bonded warehouse may be withdrawn for domestic consumption upon payment of duty equal to the duty which would be assessed and collected pursuant to law as if such waste or by-products were imported from a foreign country: Provided, further, That all waste materials may be destroyed under government supervision. All labor performed and services rendered under these provisions shall be under the supervision of a proper customs official and at the expense of the manufacturer. Section 2004. Verification by the Commissioner. A careful account shall be kept by the Collector of all articles delivered by him to any bonded manufacturing warehouse, and a sworn monthly return, verified by the customs official in charge, shall be made by the manufacturer containing a detailed statement of all imported articles used by him in the manufacture of the exported articles. Before commencing business the operator of any manufacturing warehouse shall file with the Commissioner a list of all the articles intended to be manufactured in such warehouse, and state the formula of manufacture and the names and quantities of the ingredients to be used therein. Section 2005. Bonded Smelting Warehouses. The plants of manufacturers engaged in smelting or refining, or both, of ores and crude metals, may, upon the filing of satisfactory bonds, be designated as bonded smelting warehouses. Ores or crude metals may be removed from the vessel or aircraft in which imported, or from a bonded warehouse, into a bonded smelting warehouse without the payment of duties thereon, and there smelted or refined, or both, together with ores or crude metals of home or foreign productions: Provided, That the bonds shall be charged with a sum equal in amount to the regular duties which would have been payable on such ores and crude metals if entered for consumption at the time of t