All importers, customs brokers, and even locators in PEZA or Freeport zones can be audited. The BOC targets entities based on a risk-management system, focusing on high-volume shipments, sensitive HS Code classifications, and previous compliance track records.

The BOC can audit shipments within three (3) years from the date of final payment of duties and taxes. This "look-back" period makes rigorous record-keeping essential for every Philippine importer to avoid retroactive penalties and legal issues.

The ANL is the official document informing an importer they have been selected for audit. Once received, the three-year audit period is "frozen," and the importer must prepare all relevant books and records for the Post-Clearance Audit Group.

Importers must maintain all commercial invoices, bills of lading, packing lists, insurance contracts, and financial statements. These documents must be kept at the principal place of business for three years to satisfy Bureau of Customs transparency requirements.

What happens if I fail to keep records?

The PDP allows importers to voluntarily report errors in their declarations before an audit begins. By using the PDP, firms can significantly reduce fines, paying only a 10% penalty instead of the much higher standard audit surcharges.

Yes. Customs officers may visit your business premises to examine physical records and accounting systems. They verify if the customs valuation used for your imports matches your actual financial records and payments to foreign suppliers.

While the law sets timelines, the duration depends on the volume of transactions. An audit usually concludes within 120 days of the start of the audit, though extensions may occur if the importer’s records are disorganized or incomplete.

A licensed broker ensures your SAD (Single Administrative Document) is accurate. During an audit, they act as your representative, explaining technical classifications and valuation methods to the BOC to mitigate potential findings and protect your business.