Customs adopts new system for valuation, classification of goods

Published July 17, 2020, 10:20 PM

by Betheena Unite

A new system that aims to provide a reliable database on the value and classification of imports to prevent “misinvoicing and misclassification” has been established by the Bureau of Customs.
Under the Customs Memorandum Order (CMO) No. 16-2020, the enhanced value reference information system (e-VRIS) will be implemented to serve as a database of reference values that will operate in the electronic to mobile (E2M) system.
This, according to the bureau, replaces the existing national value verification system (NVVS) established in 2019 to protect government revenues against trade misinvoicing and misclassification.
The new system is intended to help Customs establish a reliable and comprehensive database of information on the value and classification of imports for reference purposes in support of the implementation of the World Trade Organization’s Valuation System.
It was explained that the “reference values stored in the e-VRIS shall serve as a risk management tool to ascertain the veracity of any statement, document, or declaration presented for customs valuation purposes.”
“These values are not to be considered substitute values but only reference values to assist assessment personnel in the valuation of goods,” the bureau said.
Assessment personnel are mandated to value imported goods pursuant to the provisions of Section 700-707 (Sequential Application of Valuation Method) of the Customs Modernization and Tariff Act.
Under Section 5 or the operational provisions of the CMO, declarants must fill-up Box No. 33 (Specification Code) of the goods declaration upon lodgment in the E2M system. They will be provided with a coded product description list in the form of a drop-down menu to select the appropriate specification code of the goods to be lodged.
The provisions under CMO 16-2020 are applicable only for lodgment of goods declaration under consumption entry, the bureau noted.
The order shall take effect 15 days after its publication in a newspaper of general circulation.