Physical Examination Process of Imported Goods

The physical examination process is a key stage in Philippine importation where shipments are inspected to verify compliance with customs laws. This is conducted by the Bureau of Customs to confirm that goods match the declared information and to prevent misdeclaration, smuggling, and entry of prohibited items.

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How the Process Begins

The process begins after lodgement of the import entry declaration. The shipment is evaluated using the customs risk management system and assigned a lane. Goods tagged under the Red Lane are subject to mandatory physical inspection, while those in other lanes may still be inspected if deemed necessary.

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Notification and Preparation

Once selected for inspection, customs schedules the examination and notifies the importer or licensed customs broker. Proper preparation includes:

• Securing access to the cargo
• Making sure handling equipment is available
• Presenting complete import documentation

The inspection is typically conducted at the container yard, warehouse, or designated examination area within the port.

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During the Physical Examination

Customs officers open the container or packages and verify the shipment's quantity, description, classification, and condition. They check whether the goods conform to the declared tariff classification and customs value. If discrepancies are found, adjustments may be made that affect the computation of duties and taxes.

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Joint Inspections with Other Agencies

For regulated goods, representatives from other government agencies may join the inspection:

• Food and Drug Administration - for food and pharmaceutical products
• Bureau of Plant Industry - for plant-related goods
• Bureau of Animal Industry - for animal products

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Examination Report and Outcome

After inspection, customs issues an examination report. Possible outcomes include:

• Goods match the declaration - clearance proceeds normally
• Discrepancies found - reassessment of duties and taxes, and possible penalties
• Prohibited or undeclared goods discovered - seizure proceedings may be initiated

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Physical examination adds time to your clearance. For a full picture of the process, see our Customs Clearance Process in the Philippines Explained guide. The best way to handle it is to have complete, accurate documentation ready and to work closely with your customs broker throughout the process.