ENTRY AND DEPARTURE OF AIRCRAFTS IN FOREIGN TRADE ON REGULAR TRADE ON REGULAR SCHEDULES

National Administrative Register [ CUSTOMS ADMINISTRATIVE ORDER NO. 1-90, January 17, 1990 ]



By authority of and pursuant to Section 608 in relation to Sections
1101 to 1112 of the Tariff and Customs Code of the Philippines, as
amended (hereinafter referred to as the Code), and for better customs
supervision and control on inbound and outbound cargo and passengers and
their baggage carried by aircrafts of airlines with scheduled flights
to and from the Philippines, the following rules and regulations are
hereby prescribed for the information and guidance of all concerned:

PART I

DEFINITION OF TERMS

For the purpose of these rules and regulations, the following terms shall have the meaning indicated:

1. ” Philippines“, when used to the geographical sense,
means the territory comprising the Republic of the Philippines as
defined by law including the territorial waters thereof and the
overlying airspace.

2. “Airport“, otherwise known and referred to as
international airport, refers to any airport designated as airport of
entry for aircrafts arriving in the Philippines from any place outside
thereof and for articles and aliens carried on such aircraft.

3. “Aircraft” means any civil aircraft not used
exclusively in the governmental service of the Philippines or a foreign
country, and includes any government-owned aircraft engaged in carrying
persons or articles for commercial purposes.

4. “Scheduled airline” means any person, partnership,
corporation or association engaged in air transportation upon regular
schedules to or away from the Philippines and holding a permit issued by
the Civil Aeronautics Board.

5. “Through-flight” refers to a particular operation of an
aircraft identified by the airline by the use throughout of the same
number/symbol, from airport of origin via any intermediate airport
destination.

6. “Pilot-in-command” means the person serving on the aircraft having charge or command of its operations, safety and navigation during flight time.

7. “Authorized agent” refers to a person who represents an
aircraft operator/airline and who by written authority duly registered
in the customhouse has been designated to act for and in place of an
aircraft operator/airline in all formalities connected with the entry
and departure of its aircraft, crew, passengers, cargo, baggage, mail or
stores.

PART II

GENERAL PROVISIONS ON ENTRY AND DEPARTURE OF AIRCRAFTS IN FOREIGN TRADE

1.         Aircrafts coming into the Philippines from any place
outside thereof shall land and be entered in an airport of entry where
inbound CIQ (customs/immigration/quarantine) formalities shall be
conducted and all documents required for making entry shall be submitted
to the customs boarding officer pursuant to Sections 1104 to 1107 of
the Code and in such number of copies as required by regulations. Cargo
destined for the airport where an aircraft first lands and where its
flight will terminate shall be unladen thereat and its passenger
disembarked for proper customs clearance, including transit cargo
destined for another local or foreign airport for transshipment thereat
to its final destination as well as transit passengers for embarkation
on their connecting flights to their destination.

2.         Aircrafts departing from an airport in the Philippines on a
direct return flight to its foreign destination shall likewise comply
with CIQ departure formalities and submit to the customs officer in
charge all documents required for clearance of the aircraft pursuant to
Section 1111 of the Code and in such number of copies as required by
regulations.

3.         In all instances, the inward or outward general
declaration form to be used shall be the form prescribed in Annex 9 to
the Convention on International Civil Aviation identified as Appendix 1
thereof and the cargo manifest form to be used shall be the form
prescribed and identified as Appendix 2 of Annex 9 aforecited.  These
documents, together with the passenger manifest and store list, shall be
submitted in separate sheets.

PART III

INBOUND AND OUTBOUND THROUGH-FLIGHTS WITH INTERMEDIATE STOP-OVER

1.         In the case of scheduled flights from any place outside
the Philippines with intermediate stop-over in an airport en route to
its final destination in the Philippines where the flight is
terminating, the following shall be observed and complied with:

a.  For the purpose of making entry, the pilot-in-command or
authorized agent shall comply with the formalities and requirements
prescribed in paragraph 1 of PART II above upon arrival at the first
airport where it lands.

b.  In the preparation of the cargo and passenger manifests of an
aircraft on a through-flight, cargo and passengers carried and destined
for the airport of first landing shall be listed first in the manifests
to be followed by those for the next airport of destination. In such
instances, cargo and check-in baggage shall be allowed in such a
sequence that those destined for the first airport shall be the last to
be stowed to facilitate customs action at the first airport. Airlines
shall ensure that cargo tapes or separators are used to prevent
commingling or switching of cargoes with different destinations.
Whatever cargo is retained on the aircraft after all those destined for
the first airport have been unladen thereat shall be considered as
residue cargo not yet cleared by customs or other interested government
agency.

c.  Foreign cargo unladen from an aircraft (to be referred to as
first carrier) may be transferred and laden under customs supervision
and control on another aircraft (to be referred to as second carrier) in
the same airport which is the first airport of arrival of a scheduled
flight for transportation as transit cargo to its final destination in
the Philippines; provided, that the cargo is shown on the manifest
submitted by the first carrier as destined for the airport of
destination of the second carrier and listed in the letter’s transit
cargo manifest to be prepared on a separate sheet with their points of
origin indicated through the use of the 3-letter airport designator
code.   Transhipment of such cargo may be direct from aircraft to
aircraft or from bonded warehouse to aircraft, subject to compliance
with customs regulations prescribed on the matter. Similarly, transiting
passengers from foreign points of origin which have disembarked at the
first airport of landing may be permitted in the same airport to embark
as transit passengers on a connecting aircraft of a scheduled airline on
its through-flight to their point of destination in the Philippines;
provided, that the passengers are shown on the manifest submitted by the
first carrier as destined for the airport of destination of the
connecting flight and listed in the latter’s transit passenger manifest
to be prepared in a separate sheet with their respective points of
origin indicated as prescribed heretofore. The operations contemplated
under this section, however, shall not apply to and be availed of by
foreign airlines which do not have traffic rights in the Philippines
pursuant to existing bilateral and multilateral air agreement signed to
by the Philippines and the state in which the airline is registered.

d.  Before departure of an aircraft on its same through-flight from
the first airport of landing, one copy of the inward general
declaration, cargo manifest and passenger manifest shall be treated as
traveling declaration and manifests. After appropriate notations have
been made thereon of the official action taken on cargo and passengers
unladen and which have disembarked at the first airport, the traveling
documents shall be stamped and endorsed by the customs officer in charge
including the transit cargo and passenger manifests, if any. When all
these documents are in order, a Permit to Proceed to Another Airport to
be accomplished in three (3) copies shall be dated and signed by the
customs officer for clearance purposes. Two copies of the Permit
together with all endorsed copies of the traveling documents and other
documents aforestated shall be placed inside a manila envelope which
shall be sealed and delivered to the pilot-in-command or authorized
agent for delivery to the Collector of Customs or his authorized
representative at the next airport of destination.

e.  Upon landing in the next airport of destination where the
flight terminates, final CIQ formalities shall be conducted and the
envelope aforestated with its seal untampered or unbroken shall be
delivered to the Collector of Customs or his authorized representative
together with additional copies of the documents in the envelope which
may be required. All residue cargo and passengers on the aircraft shall
be unladen and disembarked in the airport where customs clearance of
both cargo and passengers and their baggage shall be performed in
accordance with procedures prescribed by regulations.

2.         In the case of scheduled flights originating from an
airport in the Philippines to a place outside thereof with intermediate
stop-over in another airport in its same through-flight to its foreign
destination, the following shall be observed and complied with:

a.  Before departure of the aircraft, the pilot-in-command or
authorized agent shall first comply with the procedures and requirements
prescribed in paragraph 2 of PART II above. One copy of the required
documents submitted shall be treated as traveling declaration and
manifests and shall be stamped and endorsed by the customs officer in
charge at the originating airport. When all these documents are in
order, a Permit to Proceed to Another Airport to be accomplished in
three (3) copies shall be dated and signed by the customs officer to
show that initial customs clearance to depart is granted. Two copies of
the Permit together with all endorsed copies of the traveling documents
shall be placed inside a manila envelope which shall be sealed and
delivered to the pilot-in-command or authorized agent for delivery to
the Collector of Customs or his authorized representative upon arrival
of the aircraft in the stop-over airport, together with such number of
additional copies which may be required thereat.

b.  Only export cargo and passengers with foreign point of
destination shall be laden at the originating airport and their
respective destinations indicated on the manifests through the use of
the 3-letter airport designator code. Additional export cargo and
passengers may be accepted for lading and embarkation at the stop-over
airport under customs supervision and control, subject to compliance
with existing regulations on the matter.

c.  Export cargo and passengers from the originating airport shown
on the traveling documents submitted at the stop-over airport as
destined for places outside the Philippines other than the foreign
destination of the carrying aircraft shall be treated as transit cargo
to be unladen at the stop-over airport and laden direct to another
aircraft or be temporarily in-bonded following established in-bonding
following established in-bonding procedure until they are finally laden
on another aircraft destined for their foreign points of destination.
Transfer of such cargo direct from aircraft to aircraft or from bonded
warehouse to aircraft shall in all cases be done under customs
supervision and control, subject to compliance with customs regulations
prescribed on the matter. Similarly, transiting passengers from the
originating airport shall disembark together with their baggage
(hand-carried and check-in) at the stop-over airport for direct transfer
to another aircraft on a flight outwards to their foreign points of
destination. Airlines in coordination with customs officers concerned at
the stop-over airport shall undertake to sort out transiting passengers
and their baggage in order that they may proceed as rapidly as possible
to their connecting outbound aircraft. However, the operations
contemplated under this section shall not apply to and be availed of by
foreign airlines with scheduled flights from the originating airport
which do not have traffic rights in the Philippines as stated
heretofore.

d.  Where due to some unavoidable or unforeseen circumstances, all
or some of the disembarking passengers at the stop-over airport cannot
transfer directly to their connecting outbound flights, airlines in
coordination with immigration and customs officers concerned shall
conduct the passengers to the airport direct transit area/lounge while
awaiting for their connecting flights. With respect to passengers who
will have to depart within two days from the day of their disembarkation
at the stop-over airport, for lack of facilities or on account of other
circumstances, they may be permitted to leave the airport passenger
terminal and stay in some specific area or place while awaiting for
their connecting flight. If there are restricted nationals among them,
immigration escorts will be required.

e.  Before an aircraft finally departs from the stop-over airport
en route to its foreign point of destination, final CIQ formalities and
requirements shall be complied with pursuant to Section 1111 of the
Code. All traveling documents in the manila envelope from the
originating airport and received by the Collector of Customs or his
authorized representative at the stop-over airport shall be kept on file
thereat, together with a copy of the transit cargo and passenger
manifests submitted, if any. The final outward general declaration, when
stamped and endorsed by the customs officer-in-charge, shall constitute
a clearance certificate to show that final customs clearance is granted
for the aircraft to depart for its foreign point of destination.

PART IV

MISCELLANEOUS PROVISIONS

1.         In case of technical landings or flight diversions where
an aircraft has to land in an airport in the Philippines other than its
regular destination, appropriate steps shall be taken to ensure that all
possible assistance is rendered to the aircraft, its passengers and
crew and, to this end, customs control formalities and procedures shall
be kept to a minimum. If assurance is given by the pilot-in command or
authorized agent or it is apparent that the aircraft can resume its
flight within a reasonably short period of time, the following shall be
observed:

a.  Customs control measures shall be limited to those that ensure
that the aircraft departs with the same load that it carried at the time
of landing. In case the load or part thereof cannot, for operational or
other reasons, continue on the flight, the customs officer-in-charge in
the airport shall expedite clearance formalities and extend proper
assistance for the speedy onward transportation for that load to its
point of destination.

b.  If necessary and in coordination with the immigration officers
concerned, an area or place under general customs and immigration
supervision shall be designated where passengers and crew can move about
during the short stay of the aircraft.

c.  Before resuming its flight to its airport of destination in the
Philippines, however, a Permit to Proceed to Another Airport in three
(3) copies, dated and signed by the customs officer in charge of the
airport where the emergency landing was made, shall first be secured by
the pilot-in-command or authorized person for customs clearance
purposes.

2.         For purposes of these regulations, a form for the Permit
to Proceed to Another Airport is hereby prescribed and identified as BC
Form No. 238, sample of which is hereto attached as Appendix. Aircraft
operators or airlines are authorized to reproduce the form provided no
deviation is made as to its text and size which shall be 21.6 cm X 28 cm
(8-1/2 x 11″).

3.         Consolidated shipments shipped by international airfreight
forwarders (consolidators) destined for discharge in different airports
in the Philippines shall be separately covered by a master air waybill
and accompanied by a consolidated cargo manifest for each airport of
destination. The rules and regulations governing consolidated air
shipments inbound prescribed in Customs Administrative Order No. 4-89
shall in all cases be observed and complied with by aircraft operators
and airlines as well as other concerned.

4.         In all cases, customs clearance of articles carried by air
and for the interchange of air cargo with surface transport shall be
applied and carried out in such manner as to retain the advantage of
speed inherent in air transport to avoid delay.

5.         Before commencing any scheduled operations of aircrafts
engaged in foreign trade or air transportation, its regular schedule of
arrival in and departure from an airport in the Philippines shall first
be filed by the aircraft operator or airline with the Collector of
Customs of the district in which the place of first landing in and last
departure from the Philippines is situated.

PART V

APPLICABILITY

The provisions of this Order shall, insofar as practicable, apply to
non-scheduled aircrafts engaged in foreign trade or air transportation
to or away from the Philippines as well as to private aircrafts granted
prior clearance through diplomatic channels to fly into or transit in
Philippine territory.

PART VI

RESCINDING CLAUSE

All Orders of Memoranda or any provision thereof which are
inconsistent with this Order or any provision thereof shall be deemed
superseded or modified accordingly.

PART VII

EFFECTIVITY

This Order shall take effect immediately upon its approval by the Secretary of Finance.

(SGD.) SALVADOR M. MISON
Commissioner of Customs

Appendix: Permit to Proceed to Another Airport Form

APPROVED:

(SGD.) VICTOR C. MACALINCAG
Acting Secretary of Finance

Adopted: 17 Jan. 1990