1. What the CMTA Is
The Customs Modernization and Tariff Act (RA 10863) is the primary customs law in the Philippines. It modernizes customs procedures, strengthens border control, and sets rules on import/export, duties, declarations, and penalties — all governed by the Bureau of Customs (BOC). (Bureau of Customs)
2. Key CMTA Provisions Relevant to Agarwood
Regulated Importation and Exportation (Sec. 117)
- The CMTA requires that goods subject to regulation may only be imported or exported after securing all necessary permits, clearances, and licenses.
- Agarwood — being a regulated forest product (because of conservation laws) — falls under this rule. It cannot be exported simply as regular wood without the proper documentation and compliance. In practice, this means export declarations must be truthful, and shipments must be supported by permits from authorities like the Department of Environment and Natural Resources (DENR). (Bureau of Customs)
Misdeclaration & Misclassification (Sec. 1400-1401)
- The CMTA has strict provisions against misdeclaration, misclassification, and undervaluation of goods in customs declarations. (Molo Library)
- This is directly relevant to agarwood cases where shipments are falsely labeled (e.g., “mahogany chips” or other woods) to conceal the true nature of the goods during export or import. (Bureau of Customs)
Prohibited, Restricted or Regulated Goods
- While the CMTA generally allows import/export of goods, it defers to other laws for prohibited/restricted goods. Overseas shipment of protected species or endangered forest products like agarwood cannot occur without satisfying those regulatory frameworks (e.g., environmental permits).
- Semantically, this means even if the CMTA doesn’t list agarwood itself as “prohibited,” export without required environmental clearances makes the transaction unlawful under both CMTA and other applicable environmental laws (more on this below).
3. Enforcement Against Illegal Agarwood Trade
The Bureau of Customs consistently cites RA 10863 (CMTA) when seizing agarwood shipments that lack proper permits or are misdeclared:
- Numerous seizures at NAIA and other ports of agarwood — including high-value shipments — have been made on the basis that export declarations were false and no proper export documentation was presented. (Bureau of Customs)
- These seizures are often in coordination with the DENR because agarwood is a regulated forest product under other environmental laws (like the Forestry Reform Code and Wildlife Resources Conservation & Protection Act). (GMA Network)
4. Penalties Under the CMTA
If a shipment is misdeclared or illegally exported:
Penalties Can Include
- Fines and imprisonment: penalties vary by the value of the goods involved and degree of culpability (negligence vs. fraud). Larger or repeat violations can lead to heavier penalties, including years of imprisonment and large fines.
- Forfeiture and seizure: goods can be seized and forfeited to the government; in agarwood cases, seized wood is often turned over to DENR for proper handling. (Bureau of Customs)
5. Interaction with Other Laws
CMTA enforcement on agarwood does not work alone — it’s usually in conjunction with:
Forestry and Wildlife Laws
- Forestry Reform Code (PD 705) — governs forest products and their trade.
- Wildlife Resources Conservation and Protection Act (RA 9147) — regulates trade in protected flora and fauna.
These laws make certain forest products — including certain types/grades of agarwood — regulated or prohibited for export without permits, and the CMTA enforces these restrictions at the border.
Summary: Key Takeaways for Agarwood
| Aspect | How CMTA Applies |
|---|---|
| Export/Import | Must be declared accurately with proper permits/licenses. |
| Misdeclaration | Strictly penalized. |
| Enforcement | BOC intercepts illegal shipments under CMTA and related laws. (Bureau of Customs) |
| Penalties | Fines, imprisonment, and forfeiture for wrongdoing. |
| Combined Legal Framework | CMTA works with environmental laws to regulate agarwood trade. |