THE Bureau of Customs (BoC) listed the types of security it will accept to ensure eventual payment of duties and taxes, including cash bonds, surety bonds, standby or irrevocable letters of credit and written commitments.
The list of acceptable security was contained in Customs Administrative Order (CAO) No. 01-2021 issued Tuesday. The CAO implements provisions of Republic Act No. 10863 or the Customs Modernization and Tariff Act.
The CAO also allows district collectors to accept a one-time general security in case transactions require “numerous” separate special securities. The authorization was billed as a streamlining of the process of offering security.
The acceptance of security ensures that the government’s interests “are amply protected.” The CAO outlines the procedures for accounting for secured transactions and creates an electronic security management and control system.
Cash bonds are to be deposited immediately to a Trust Fund account managed by the BoC. Only authorized agent banks are allowed to issue standby or irrevocable letters of credit.
Enforcement actions to ensure payment include the filing of collection cases, the forfeiture of bonds, or the suspension or cancelation of a surety company’s accreditation. — Beatrice M. Laforga