Revised Trade Facilitation Division's (TFD) Schedule of Fines and Penalties

June 9, 2016 CDC MEMORANDUM CIRCULAR NO. TFD-16-06-40 TO : All CFZ Registered Enterprises and Stakeholders SUBJECT : Revised Trade Facilitation Division's (TFD) Schedule of Fines and Penalties Please be informed that effective 15 July 2016, TFD's new schedule of fines and penalties shall be implemented by virtue of CDC Board Approval No. SM-04-07, Series of 2016 dated 15 April 2016. acEHCD We are attaching herewith TFD's schedule of fines and penalties for your reference. For your information. Thank you. Signed by representative ELISEO B. SANTIAGO Officer-in-Charge Office of the President Clark Development Corporation ATTACHMENT TRADE FACILITATION DIVISION Schedule of Fines and Penalties Effective 1 July 2016 1. NON-FILING/NON-RENEWAL/LATE FILING OF REQUIRED PERMITS e-TAPs/e-EDs PHP5,000.00 PBI or PBO PHP3,000.00 Entry or Exit Gate Pass PHP1,000.00 2. NON-COMPLIANCE TO INSPECTION OF GOODS Joint Mandatory CDC and BOC inspection of goods PHP10,000 or 1.00% of the value for inbound and outbound at the Customs Clearance of goods, whichever is higher Area Inspection of inbound and outbound goods at the PHP2,000.00 entry/exit gates, per permit 3. LATE SUBMISSION Bill of Lading (Post Compliance for Export) Must be PHP3,000.00 submitted within 7 days from issuance of eDS 4. LATE FILING e-TAPs - First (1st) Offense PHP100,000 or 5% of the value of goods, whichever is higher - Second (2nd) Offense PHP200,000 or 5% of the value of goods, whichever is higher - Third (3rd) Offense PHP300,000 and/or Forfeiture of Incentives or Termination of Contract 5. MISDECLARATION OF GOODS - First (1st) Offense PHP100,000 or 5% of the value of goods, whichever is higher - Second (2nd) Offense PHP200,000 or 5% of the value of goods, whichever is higher - Third (3rd) Offense PHP300,000 and/or Forfeiture of Incentives or Termination of Contract 6. UNACCOUNTED/UNDECLARED/UNLIQUIDATED IMPORTED ARTICLES (including TEVs and TEAs) - First (1st) Offense PHP100,000 or 5% of the value of goods, whichever is higher - Second (2nd) Offense PHP200,000 or 5% of the value of goods, whichever is higher - Third (3rd) Offense PHP300,000 and/or Forfeiture of Incentives or Termination of Contract 7. NON-FILING OF TRANSFER NOTIFICATION (UNAUTHORIZED WITHDRAWAL OR TRANSFERS/ARTICLES TECHNICAL SMUGGLING) - First (1st) Offense PHP100,000 or 5% of the value of goods, whichever is higher - Second (2nd) Offense PHP200,000 or 5% of the value of goods, whichever is higher - Third (3rd) Offense PHP300,000 and/or Forfeiture of Incentives or Termination of Contract 8. ENTRY OF PROHIBITED/ILLEGAL MERCHANDISE/ITEMS - First (1st) Offense PHP500,000 or 5% of the value of goods, whichever is higher - Second (2nd) Offense Termination of Contract 9. TEV-RELATED VIOLATIONS (Based on "Subic-Clark Joint Policy Guidelines on the Admission Privilege for Duty-Free and Tax-Exempt Motor Vehicles ) Loading/Shipping of the requested vehicle at the port US$5,000.00 of origin prior to the approval of CDC Sale, Transfer, Assignment or Payment of duties and US$2,000.00 taxes of TEV without prior CDC approval/clearance Failure to present TEV for inspection/inventory US$1,000.00 Removal of CDC-BOC Sticker US$200.00 Unauthorized used of TEV outside the CFZ longer $20/hour for the first 10 hours than the approved limit of three hundred thirty six beyond the 14-day allowed (336) hours or fourteen (14) days in a month period: $25/hour for the succeeding hours thereafter Non-filing of monthly PBO for TEVs brought PHP1,000.00 outside the CFZ, per vehicle Any other act or omission tending to circumvent Depending on the surrounding the "Subic-Clark Policy Guidelines on the circumstances, penalties may Admission Privilege for Duty-Free and range from a fine of $500 to Tax-Exempt Motor Vehicles" the forfeiture of the TEVs and suspension or cancellation of future applications for admission of TEVs and of the Certificate of Registration and Tax Exemption 10. TEA-RELATED VIOLATIONS (Based on MC No. ERD 11-35 Sale/Transfer of TEAs without prior CDC $5,000 and payment of duties approval/clearance and taxes if units is sold to an entity not entitles to tax incentive privileges and filing of administrative and criminal cases by CDC and BOC as appropriate 51% threshold limit not met by Clark-related $5,000 and payment of duties flights and taxes to BOC Non-Submission/Late Submission of Monthly PHP2,000/Monthly Report Late Report on TEAs Flight Schedules and Total Submitted or Not Submitted Flight Hours 11. VIOLATIONS RELATED TO PURCHASE OF DUTY AND TAX-FREE ITEMS INCLUDING PETROLEUM PRODUCTS (Based on MC No. ERD 12-23 & TFD 15-13) Pull-Out of Duty Free Goods from CFZ into a Customs Territory or Selling of Goods by Duty Free Operators Outside CFZ (Even if Tax was Paid for the Goods) - First (1st) Offense PHP100,000 or 5% of the value of goods, whichever is higher - Second (2nd) Offense PHP200,000 or 5% of the value of goods, whichever is higher - Third (3rd) Offense PHP300,000 and/or Forfeiture of Incentives or Termination of Contract Selling of duty and tax-free items to unqualified individuals (not falling in any of the classifications/categories provided under MC No. ERD 12-23) inside the Freeport Zone. Selling of duty and tax-free items to Overseas Filipino Suspension or Cancellation of Workers (OFWs) and Balikbayans beyond the US$2,000 duty-free operations and/or limit. Seizure of duty and tax-free items. Selling or duty and tax-free items to Tourist and Filipinos (travelling to or from foreign destinations) beyond the US$1,000 limit per transaction and US$10,000 in a given year.