Security

Before   any   imported merchandise is released from the Bureau’s custody and stored in a bonded warehouse,  the applicant will have to provide the Director of Customs with a bond  or   other  security  in  such  sum  and   with   sureties  sufficient  to cover  the  maximum  taxes  or levies  (if applicable) likely to be outstanding on goods in stock at any one time.

The bond may cover a Single Transaction Bonds (STB) to be used to secure a one-time importation or a Continuous Bonds (CB) cover multiple transactions. The bonds are generally for the value of the merchandise plus duties, taxes and fees.

The Director may require such bonds or other security as he, or the  Minister, may deem necessary for  the  protection of  the  revenue or to assure compliance with any provision of law, regulation, or instruction which the Ministry or the Bureau may be authorized to enforce.

The owner will  have  to  take  submit a  completed  application  form  together  with  a  detailed  plan  to include the location and description of the  area,  an  insurance  coverage  on  the  bonded  goods and other requirements set out in RPPL No. 11-15, § 1209. Application Requirements.

Annual License Fee

In accordance with RPPL No. 11-15, § 1214. License Fee . It states the following:

Every licensee shall pay to the Bureau an annual fee for the license, for the period beginning on the day on which the license is issued and ending on September 30^th. Annual fees shall be prorated on the portions of the year remaining after the license is issued. The annual fee shall be 1% of the security deposit under this chapter, up to a maximum of $5,000. The fee for each subsequent year will be paid by October 1^st and no license will be issued without the fee being paid.

Amendment of License

• 1215. Amendment of License. (RPPL No. 11-15)

The Director may amend a license only where the name of the license has changed legally, or where there has been a change of ownership and the new owner meets the terms and conditions of this chapter.

Calculation of Bond or Guarantee

The following is an example of the calculation of the reference amount for the guarantee for a warehouse authorization.

If when calculating the reference amount the duty rate on the goods intended for warehousing is zero then the PGST figure must be used:

Calculation of License Fee

License and Bonded Cartage

The cartage of merchandise entered for warehouse shall be done by:

Cartment appointed and licensed by the Bureau; and

Carriers designated to carry bonded merchandise.

Such cartmen and carriers shall give bond, in a sum to be fixed by the Bureau, for the protection of the government against any loss of, or damage to, the merchandise while being so carted and necessary for the protection of the government revenue or to assure compliance with any provision of law, regulation, or instruction which the Ministry or the Bureau may be authorized to enforce.

Such cartmen and carriers shall also be in compliance with all applicable environmental laws and regulations concerning the transport of hazardous materials.

Prohibition on Carting Company Ownership and Operation of Bonded Warehouse

No license shall be issued to any applicant involved directly, indirectly, or through third parties in cartage, common carrier, inland trucking, unloading, or transportation of the merchandise from importation point.

Persons engage in the cartage, inland freight trucking, common carrier, unloading or transportation of merchandise from importation are prohibited from being bonded warehouse operators, either directly or indirectly.

Staffing Requirements

The bonded warehouses shall be used solely for the storage of imported merchandise and shall be placed in charge of a proper officer of the customs, who, together with the proprietor thereof, shall have joint custody of all merchandise stored in the warehouse. The officer assigned to a bonded warehouse shall have total access to, without limitation, such license books, records and receipts relating to the entry and withdrawal of merchandise from such customs bonded warehouse. The compensation of such officer and other Bureau employees appointed to supervise the receipt of merchandise into any such warehouse and deliveries thereof shall be reimbursed to the government by the proprietor of such warehouse.

Each bonded warehouse shall be assigned an officer by the Director. A bonded warehouse shall provide all labor and management on the merchandise so stored by hiring private staff. Such licensee shall all maintain all records necessary for the officer assigned to that customs bonded warehouse to assess inventory levels and whether merchandise is withdrawn and excise taxes payable thereon. The officer assigned to that bonded warehouse may enter the premises at any time to inspect operations and records.

Signing of the Bonded Warehouse Contract

Once the approval has been granted, the applicant will be allocated with a bonded warehouse Number (BWN) which has to be fixed at the entrance of the warehouse. The Customs officer will then prepare the Approval of the  bonded  warehouse  and  upon  agreement,  the  applicant  will  sign  the  approval.  The Approval of the bonded warehouse with the license fee and bond will be endorsed by the Director of Customs and approved by the Minister of Finance.

The  approval  of  the  bonded  warehouse  a  legally  binding  document  between  the  BCBP  and    the  bonded  warehouse  owner.  Upon endorsement of the  approval by the BCBP, the bonded warehouse owner will be given Customs approval to proceed with importation.

Responsibilities of Warehouse Keeper

The warehouse keeper is a person who assumes the daily duties of the warehouse. It can be the owner of the warehouse or someone appointed by the owner.  The warehouse keeper has the responsibility   to ensure that goods in the warehouse are safeguarded. The goods in the  warehouse  must  be properly   and   fully   accounted   for.   Goods   must   not   be   removed   from   the   warehouse without submitting a Bill of Entry and payment of  applicable  duties  and  taxes.  The  warehouse  keeper is responsible for the entry and exit of goods from the warehouse and for the payment of duties, taxes and levies (if applicable). The warehouse keeper must:

• maintain all accounts accurately and promptly
• comply with all specific conditions set
• maintain records of all goods in the warehouse in the form accepted by Customs
• pay the applicable duties, taxes and levies upon removal of goods from warehouse
• inform Customs when the responsibility of warehouse keeper is transferred to another person
• produce the goods and facilitate the examination of goods in the warehouse by Customs when required
• conduct stock taking in the presence of Customs officers when required

Requirements of Record Keeping

All records related to warehouse must be kept for a period of seven (7) years. The warehouse keeper must maintain comprehensive records related to entry and removal of goods in the warehouse.

A monthly report using the template provided by Customs must  be  submitted  to  Customs  within seven (7) days  at  the  end  of  every  month. The monthly report must  be endorsed by the owner of the warehouse or any authorized representative.