Post Clearance Audit and Record Keeping

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What is the time frame for the Bureau to conduct an audit examination after final payment of duties and taxes?

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Within three (3) years from the date of final payment of duties and taxes or customs clearance.

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What are the purposes of keeping records according to CAO 01-2019?

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1. Confirmation of truthfulness and accuracy of goods declaration. 2. Check adequacy and integrity of record-keeping systems. 3. Determine compliance levels of importers and other parties. 4. Serve as basis for imposing sanctions for non-compliance.

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What records are required to be kept by importers?

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1. Entity organization and structure. 2. Orders and purchases. 3. Shipping, importation, exportation, and transport records. 4. Manufacturing, stock, and resale records. 5. Financial documents. 6. Accounting system documentation. 7. Electronically recorded or stored information.

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What is the consequence of failing to keep required records?

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1. Suspension or cancellation of accreditation as Importer or Broker. 2. Hold delivery or release of subsequent imported articles. 3. Surcharge of 20% on the dutiable value of goods. 4. Criminal prosecution with imprisonment and fines.

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What is the role of the Management Information System and Technology Group (MISTG) in audits?

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MISTG develops the computer-aided risk-based management system to facilitate risk assessment and conduct audits.

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What must an importer provide to customs officers during an audit?

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Full and free access to the premises where records are kept or access to a cloud-based data-room or private server.

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What is the penalty for fraud in relation to duties and taxes on imported goods?

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A fine equivalent to six (6) times the revenue loss and/or imprisonment of two (2) to eight (8) years.

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What is the purpose of the Prior Disclosure Program (PDP)?

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To allow importers to voluntarily disclose errors in goods declaration and pay deficiency duties, taxes, and penalties.

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What happens if an importer denies customs officers access to records?

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It creates a presumption of inaccuracy in the transaction value declared and may lead to reassessment of goods.

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What is the time frame for filing a request for reconsideration after receiving a Demand Letter?

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Within fifteen (15) days from receipt of the Demand Letter.