customs

Lesson 2 Requirements on Importation & Schedule of Fines for Personally Owned Motor Vehicle and Arbitrary Freight & Miscellaneous Expense

Objectives: At the end of the lesson students are expected to:
1. Learn the basic requirements in the importation of personally owned motor vehicle
2. Apply the formula in determining fines/penalty for said vehicle arriving without the requirements
3. Be familiar with the arbitrary freight and miscellaneous expense which may be used in the absence of specific amount or value.

Discussion:

DOCUMENTARY REQUIREMENTS FOR NO-DOLLAR IMPORTATION OF PERSONALLY-OWNED MOTOR VEHICLES

1. Dept. of Trade and Industry-Bureau if Import Services (DTI-BIS) prior import permit/authority
2. One (1) year residency abroad
3. Proof of income abroad
4. Six(6) months use/ registration

SCHEDULE OF FINES FOR NO-DOLLAR IMPORTATION OF PERSONALLY OWNED MOTOR VEHICLES (CAO 4-94)

c. Commission of only one of the following:
Violations Fines
1.1 Lack of DTI-BIS prior import authority 20%
1.2 Lack of one year residency abroad
1.3 Lack of proof of income abroad
1.4 Lack of 6 months use/registration 2. Non-compliance of two (2) of the above requirements 30% 3. Non-compliance of three (3) of the above requirements 50% 4. Non-compliance of all of the above requirements 80% 5. Second violation of any of the above requirements 30% 6. Third violation of any of the above requirements No settlement by fine

Formula in determining Penalty/fines for motor vehicle

Penalty = Landed Cost x Rate of Penalty

ARBITRARY FREIGHT FOR MOTOR VEHICLES

Note: When the bill of lading does not indicate the actual freight or in case of local purchase scheme, the following arbitrary freight may be used:

1. Motor Vehicles, Car

a. From Germany and other Euro countries US$920.00 b. From Japan and other ASEAN countries 600.00
c. From United States of America