Protest, Seizure and Forefeiture under the Tariff and Customs Code

Protest Procedure:

1.) Pay the customs, duties, fees, etc. under protest

2.) File a written protest with the Collector of Customs during payment or within 15 days from payment.

3.) When the collector receives the protest, he has 15 days to set a hearing. After the hearing, he has 30 days to decide.

4.) If the collector gives and unfavorable decision, make an appeal to the Commissioner of Customs within 15 days from receipt of the decision. If he didn't act, make the appeal before the 30-day period expires.

5.) If the commissioner's decision isn't favorable either, go on review to the CTA in division within 30 days of receipt of the commissioner's decision.

6.) If still unfavorable, file a Motion for Reconsideration or Motion for New Trial within 15 days from receiving the CTA decision.

7.) If still unfavorable, go on review by the CTA en banc within 15 days from receiving the decision.
8.) If still unfavorable, file a motion for reconsideration or new trial with the CTA en banc within 15 days from receipt of the decision.

9.) If still unfavorable (!) go to the Supreme Court for review on certiorari within 15 days from receiving the CTA's decision.

Decisions of the Collector of Customs in favor of the importer/owner of the goods are automatically reviewable by the Commissioner of Customs. If still favorable to the owner/importer, they're automatically reviewed by the Secretary of Finance. If neither the commissioner nor the secretary makes a decision within 30 days from receipt of the case records, the collector's decision becomes final and executory.

The ruling of the Collector of Customs becomes final and executory (except in the fixing of fines in seizure cases) in any of the following instances:

1.) No protest is filed at the time of payment or within 15 days after payment

2.) The decision of the Collector of Customs wasn't appealed to the Commissioner of Customs within 15 days after notification of the decision

3.) If there was no appeal to the CTA within 30 days from receipt of the commissioner's decision

Seizure and Forefeiture

1.) If after the hearing following the seizure of the articles in question the collector of customs gives an unfavorable decision, appeal to the commissioner of customs within 15 days from the receipt of the decision.

2.) If the commissioner gives an unfavorable decision, you have 30 days from the date you received the decision to go on review with the CTA in division.

3.) Everything follows steps 6 to 8 of the above steps.

If the collector of customs rules against the government, either of the following will happen:

1.) If the amount in question is less than Php5,000,000.00 the case goes on automatic review by the commissioner. If the commissioner doesn't act or rules against the government, the case is automatically reviewed by the Secretary of Finance.

2.) If the amount is more than Php5,000,000.00 the case is automatically reviewed by the secretary. He has 30 days to decide. If the secretary doesn't act, the decision becomes final. The same goes for a favorable decision. If unfavorable, the importer must go to the CTA. Follow the same steps as before, in this case.

Forfeiture proceedings are in rem and directed against the res. Lack of knowledge by the owner doesn't necessarily make the vessel immune from forfeiture; but forfeiture of a private carrier that is used to smuggle articles requires knowledge of the owner/agent of the unlawful act (so if the owner didn't know, his vessel can't be forfeited.) There is prima facie presumption that a vessel or aircraft has been used for smuggling in the following circumstances:

1.) The conveyance was used for smuggling at least twice before

2.) The owner isn't in the business for which the conveyance was used

3.) The owner isn't in a financial position to own the conveyance (CC vs. CTA, 138 SCRA 581)

Redemption of seized articles aren't allowed in the following instances:

1.) When there is actual fraud (not merely constructive)

2.) The importation is absolutely prohibited

3.) The release is contrary to law (Transglobe vs CA, GR 126634)

Confiscated goods can be redeemed if the taxes, fees and charges are paid; they're not prohibited and/or there is no bad faith.

Liquidation of import entries become final and conclusive within 1 year from the final settlement of duties and delivery of the imported articles if there is no fraud or protest. Tentative liquidations aren't covered by this limitation.