Lifting of Abandonment Process in Philippine Customs

Under Philippine customs law, imported goods that are not claimed or processed within a prescribed period are subject to abandonment. Once declared abandoned, the Bureau of Customs may dispose of the goods — typically through auction or destruction. However, importers may apply to lift the abandonment and recover their shipment, subject to compliance with specific requirements.

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What Is Abandonment?

Abandonment occurs when an importer fails to file the goods declaration or claim the shipment within the allowable period under the Customs Modernization and Tariff Act. There are two types:

• Express Abandonment – The importer formally renounces ownership of the goods in writing.
• Implied Abandonment – The importer fails to act within the prescribed period, triggering automatic abandonment.

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Prescribed Periods

• Goods must generally be claimed and a goods declaration filed within 30 days from the date of discharge for sea cargo
• For air cargo, the period is typically shorter
• Failure to act within these periods results in implied abandonment

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Lifting of Abandonment

An importer may apply to lift the abandonment before the goods are disposed of by customs. The process generally involves:

1. Filing a formal application for lifting of abandonment with the Bureau of Customs
2. Submitting required documents including the bill of lading, commercial invoice, and proof of ownership
3. Payment of storage, arrastre, and other accrued charges
4. Payment of applicable duties and taxes
5. Compliance with any permit or regulatory requirements for the goods
6. Approval by the Collector of Customs

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Key Considerations

• The application must be filed before customs initiates disposal proceedings
• All accrued storage and handling charges must be settled in full
• Regulated goods still require the corresponding permits even when lifting abandonment
• Delays in filing increase the risk of the goods being auctioned or destroyed

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Practical Insight

Abandonment situations are costly and time-sensitive. Acting promptly upon receipt of any notice from customs is critical. Working with a licensed customs broker from the outset significantly reduces the likelihood of abandonment and ensures that goods are processed and claimed within the prescribed periods.