PROCEDURES FOR THE PROCESSING OF CISS COVERED SHIPMENTS

Pursuant To Section 608, Tariff And Customs Code Of The Philippines,
As Amended, The Following Rules And Regulations Are Hereby Promulgated:

I.          OBJECTIVE: To specify the governing
procedures applicable to CISS-covered shipments and to distinguish them
from the procedures covering shipments exempt from CISS;

II.         SCOPE. This Order applies to all
shipments subject to the Comprehensive Import Supervision Service (CISS)
and exported to the Philippines on January 1, 2000 and thereafter. CISS
covered shipments exported prior to this date shall continue to be
governed by the rules applicable under the interim export value system
and Joint Order No. 1-91, as amended.

III.        GENERAL PROVISIONS :

1.         Except as otherwise provided in Paragraph 5,
Sub-paragraph a to s, Joint Order 1-91, as amended, all goods destined
for importation into the Philippines from all countries of supply shall,
during its effectivity, be subject to CISS by the duly designated party
under such terms and conditions prescribed therein, and thus covered by
a corresponding CRF.

2.         For CISS purposes, all Reports of Proposed Importation
(RPI) for Import Advise Note (IAN) application must be completed under
oat, which includes self-assessment questionnaires on valuation, among
others.

3.         No Customs Entry shall be filed or accepted or any
shipment released in respect of any goods which require a CRF as
provided for under Joint Order 1-91, as amended, where the importer is
unable to produce to the Bureau of Customs the authenticated customs
copy of the CRF. CRF-subject shipments lacking in CRF shall be treated
in accordance with CMO 9-95, as amended, while those where CRF’s are
delayed shall be governed by CMO 16-95, as amended, in so far as the
provisions of this Order are consistent with CAO 2-94 and the WTO
Valuation Agreement.

4.         The CRF shall be considered recommendatory in nature,
however for assessment purposes, the dutiable value declared shall be
based on the value reflected on the Clean Report of Findings (CRF) as
determined on the basis of the WTO rules on Customs valuation, without
prejudice to the remedies under CMO 3-95 and other applicable rules and
regulations.

5.         All questions concerning the CRF findings/reports on
value and classification and other related matters, shall be referred to
the CISS Valuation and Classification Appeals Committee, Office of the
Commissioner, which shall resolve the same in accordance with existing
rules and regulations consistent with CAO 2-99 and the WTO Valuation
Agreement

6.         Non-CISS covered shipments shall be processed in accordance with CMO No. 25-99.

7.         All Entry declarations, whether CISS-covered or not,
shall be supported by a duly filled up Supplemental Declaration on
Valuation (SDV) form, among others. The guidelines for the proper
accomplishment thereof are prescribed in CMO 1-96 A.

IV.       EFFECTIVITY : This Order shall take effect on January 1, 2000.

Adopted: 28 Dec. 1999

(SGD.) NELSON A. TAN
Commissioner