Definition of Customs Bond
As the name implies, a customs bond is a bond issued in favor of the Bureau of Customs in accordance with the Revised Tariff and Customs Code of the Philippines or orders issued by the Commissioner of Customs.
Purpose of Customs Bond
Customs bond is required principally to protect government revenue, insure the collection of customs duties, internal revenue taxes, and other charges due on imported articles, and compliance with the rules, regulations, and orders promulgated by the Commissioner of Customs in connection with the importation and warehousing of such articles, and the collection of duties, taxes and other charges due thereon.
Classifications of Customs Bond
a) Ordinary or Single Shipment Bond
This class of customs bond is required to cover a single transaction or articles imported under one shipment only.
Example: Ordinary Re-Export bond which covers only one shipment of imported articles.
b) General Bond
This class of customs bond is required to cover numerous transactions or articles imported under several shipments made within a certain period of time, usually one calendar year. This is specifically authorized by the Tariff and Customs Code, to wit:
Section 3504. “General Bonds, When Required – In cases where bonds are required to be given under the provisions of the Customs and Tariff Laws, the Collector, instead of requiring separate special bonds where the transactions of a particular party are numerous, may accept general bond extending over such periods and covering such transactions of the party in the questions as shall be satisfactory to said Collector.”
c) Chargeable Bond
This form of general bond covers numerous importations or transactions or entries within a certain period, except that the liquidation of any entry is chargeable against the bond and the canceled portion of the bond is re-usable by the importer in his subsequent before expiration of the bond.
Example: General Bond for Bonded Manufacturing Warehouse
