Advance Ruling on Valuation

An Advance Ruling on Valuation is a formal written decision issued by the Bureau of Customs that determines the proper customs valuation method for imported goods before actual importation. It provides importers with prior certainty on how customs duties and taxes will be assessed based on the declared transaction value or applicable valuation method under WTO valuation rules and Philippine customs regulations. This is particularly useful for importers who want to plan their importation costs accurately before shipment.

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General Provisions (CMO-30-2016, Section 2)

Request for Advance Rulings

Submitted to BOC electronically. Application fees shall be paid through bank payment.

Non-Refundable Advance Ruling Application Fee

Amount: One Thousand Five Hundred Pesos (Php 1,500) for each request, which must relate only to one product. Collectible by: Bureau of Customs.

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Operational Provisions (CMO-30-2016, Section 3)

Request for Advance Ruling

The importer, foreign exporter, or authorized agent must apply electronically to the Office of the Commissioner (Attention: Technical Support Team Advance Ruling) and submit proof of payment of the non-refundable Advance Ruling Application Fee.

Payment of Application Fee

• Accomplish Advance Ruling Order Payment Form (available on BOC website)
• Pay through Land Bank of the Philippines (BOC in-house bank)
• Secure BOC Official Receipt (BCOR) as proof

For foreign exporters, proof of international wire transfer is accepted (subject to BOC verification).

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Receipt and Acknowledgment

• BOC will acknowledge receipt electronically
• May require additional documents or information
• The 30 working days processing period starts only upon complete submission

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General Information Requirements

The application must include applicant details (full name, address, TIN - except foreign exporter - and contact person), type of applicant (Importer/Producer/Foreign Exporter), agent details if applicable (name, contact details, and Authorization Letter), and goods and transaction details (whether goods were previously imported and a detailed description of goods).

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Additional Application Requirements

The application must include:

• Country of Origin and basis for claiming origin
• Supporting documents such as samples, photos, catalogues, brochures, technical documents or lab results, and description of composition and manufacturing process
• Origin determination details including tariff classification and values, applicable rule of origin, and explanation of how origin requirements are met
• Proposed valuation method and legal basis for the method
• Description of transaction and contract terms
• Disclosure of relationship between buyer and seller
• Relevant documents such as contracts, invoices, and agreements
• Sworn statement confirming no pending case with BOC or other agencies

Understanding customs valuation methods will help you prepare the correct supporting documents for your application.

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Filing and Withdrawal

• Filed before importation with the Bureau of Customs
• Applicant may withdraw anytime before decision
• Withdrawal does not prevent re-filing

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Issuance of Ruling

• Issued within 30 working days from complete submission
• Must be in writing, includes decision, legal basis, and findings
• Applicant is informed of the right to appeal

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Grounds for Denial

Application may be denied if the issue is under court case, audit, or review, there is a duplicate request for the same goods, a ruling was already issued for the same applicant and goods, or the request is hypothetical. If denied, BOC must notify the applicant in writing with the reason clearly stated.

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Penalties

• Misrepresentation of facts may result in rejection of application and revocation of ruling
• Submission of false or fake documents results in rejection and revocation
• Revocation may be retroactive
• Additional penalties may apply under customs laws and can be found in our guide on Penalties and Seizures in Philippine Customs

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Record-Keeping

Applicant must keep records for at least 3 years. BOC also retains records for 3 years. This aligns with the record-keeping requirements under Post-Clearance Audit procedures.