BOC issues rules on negotiated sale of goods
Last Oct. 9, Customs Commissioner Rey Leonardo Guerrero released Customs Memorandum Order 26-2020, which prescribes the rules and regulations further implementing Section 1149 of the Customs Modernization and Tariff Act.
STAR/File
BOC issues rules on negotiated sale of goods
Mary Grace Padin (The Philippine Star) - October 20, 2020 - 12:00am

MANILA, Philippines — The Bureau of Customs (BOC) has issued the guidelines on the disposition of abandoned and forfeited goods through negotiated sale.

Last Oct. 9, Customs Commissioner Rey Leonardo Guerrero released Customs Memorandum Order 26-2020, which prescribes the rules and regulations further implementing Section 1149 of the Customs Modernization and Tariff Act.

It aims to expedite the disposition of goods while ensuring the integrity and transparency in the negotiated sale process by establishing uniform procedure and specific requirements.

Under the CMO, a negotiated sale may be carried out by the BOC subject to the approval or disapproval of the Department of Finance (DOF).

“Goods which remain unsold after at least two failed biddings that are not suitable either for official use or donation may be sold through a negotiated sale subject to the approval of the Secretary of Finance and executed in the presence of a Commission on Audit (COA) representative,” the CMO stated.

The CMO orders the creation of the Negotiated Sale Committee, which is designated to oversee the implementation of the rules and regulations relative to the conduct of negotiated sale.

It is also tasked to conduct ocular inspections on sale lots or items, assess offers to determine the deals most advantageous to the interest of the government, and recommend to the Secretary of Finance the acceptance of offers.

The memorandum order also lists the documents required from interested buyers, as well as the procedure starting from the publication of a notice of negotiated sale to the submission of offers.

The participants whose offer is considered the most advantageous to the government will be required to pay a guarantee cash deposit in the amount equivalent to 20 percent of the offer within 24 hours from the receipt of the notice of acceptance of the offer.

The remaining 80 percent should be paid in full within 48 hours from the receipt of the notice.

In case of failure to comply with the requirements, the offeror would be automatically disqualified from participating in the negotiated sale. If the offer is rejected by the Secretary of Finance, the guarantee cash deposit would be refunded.

A failed negotiated sale would be declared by the committee when there is no offer, when the highest offer fails to comply with the requirements, or when the Department of Finance rejects the offer.

In such cases, the subject goods may be disposed of using other modes. A notice of award will be given to the winning offer upon full payment and presentation of official receipts.

BUREAU OF CUSTOMS
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