Legal Framework

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Under Republic Act No. 10863, also known as the Customs Modernization and Tariff Act (CMTA), businesses engaged in international trade are required to comply with comprehensive customs procedures, including the accurate classification of goods, proper valuation, and the timely payment of duties. This legislation is aligned with the World Trade Organization’s Trade Facilitation Agreement, which seeks to modernized customs procedures and facilitate the efficient flow of trade

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How Tariff and Customs Consultancy Works:

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1.Tariff Classification and Valuation

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A fundamental aspect of customs consultancy involves advising businesses on the proper classification of their goods under the Harmonized System (HS) Code, which is crucial for determining the applicable tariffs and duties. Misclassification can result in the overpayment of duties or, in more severe cases, legal repercussions.

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Furthermore, proper valuation is paramount, as tariff duties are assessed based on the transaction value of the goods, inclusive of shipping, insurance, and other related charges, thereby maintaining compliance with applicable customs regulations

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2. Customs Compliance

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Adherence to Philippine customs laws and regulations is essential to avoid penalties, delays, and the potential seizure of goods. The Mills Global assists businesses in understanding and complying with the requirements set forth by the Bureau of Customs (BOC), including the accurate submission of import/export declarations, the securing of requisite permits, and the timely payment of duties and taxes. This includes confirming that all documentation required under the Customs Modernization and Tariff Act (CMTA) and other applicable regulations is accurately completed and submitted in accordance with established timelines.

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3. Duty and Tax Management

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Through a thorough review of applicable tariff rates, trade agreements, and exemptions under the Customs Modernization and Tariff Act (CMTA), The Mills Global assists businesses in identifying lawful avenues to mitigate the financial burden of import duties and taxes. This may include leveraging free trade agreements (FTAs), special economic zones (SEZs), or other government incentives, while maintaining compliance with relevant regulations and optimizing cost efficiency.

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4. Risk Mitigation and Dispute Resolution

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In the event that goods are detained or a dispute arises concerning tariff classification or customs valuation, the Technical Working Group of TMG will represent businesses in resolving such issues with the Bureau of Customs. This may involve initiating formal appeals or taking the necessary steps to secure the proper interpretation and application of relevant laws and regulations, in full compliance with the Customs Modernization and Tariff Act (CMTA) and other applicable laws

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5. Trade and Customs Compliance Development

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The Interim Training Team of TMG offers specialized training and ongoing advisory programs for companies seeking guidance in importation, customs, and related regulatory matters. These programs are designed to equip businesses, including international and foreign-owned entities, with the necessary knowledge and tools to understand and comply with Philippine customs and tariff laws