REPLY FROM THE PHILIPPINES TO A QUESTION FROM CANADA

Philippines

The following communication, dated 27 June 2025, is being circulated at the request of the delegation of the Philippines.

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Question

Could the Philippines please explain the use of its Enhanced Value Reference Information System in determining the customs value of imported goods, including how it ensures that its use is consistent with the requirements for the application of the valuation methods set out in the Customs Valuation Agreement? In particular, with respect to the requirements set out in Article 1 and Decision 6.1, as well as the statements in the General Introductory Commentary that recognize the need for a fair, uniform and neutral system for valuation that precludes the use of arbitrary or fictitious customs values and indicate that the transaction value method should be used to the greatest extent possible.

Response

The Enhanced Value Reference Valuation System (e-VRIS) of the Bureau of Customs (BOC) is a risk assessment and verification support tool designed to identify potential undervaluation.

Under this system, the transaction value remains the primary basis for customs valuation. The e‑VRIS does not override or automatically reject the declared transaction value. Instead, when a declared value falls below the e-VRIS reference range, it prompts further examination, in adherence with Decision 6.1 of the WTO Customs Valuation Agreement (CVA) and Section 707 of the Customs Modernization and Tariff Act (CMTA), rather than enforcing rejection. In cases where doubts arise regarding the accuracy of the declared value, customs examiners are required to request additional explanation(s) and supporting document(s) from the importer. If the importer sufficiently demonstrates that the declared value reflects the total amount actually paid or payable for the imported goods, then the declaration is accepted. When sufficient justification is not provided, the sequential valuation method under Sections 700 to 707 of the CMTA is then applied.

Additionally, the implementation of e-VRIS is designed to be consistent with the principles of fairness, transparency and neutrality by using historical import data of identical or similar goods to assist in identifying valuation risks, without imposing arbitrary values.

The Philippines underscores that the primary function of e-VRIS is to support customs modernization efforts and prevent revenue leakages, in accordance with international standards. The use of a national valuation database for risk management is likewise supported by the ASEAN Customs Valuation Guide and is practiced by several ASEAN member States.

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