In view of the need for simplified rules and procedures for the computation of duties and taxes and in line with the Bureau's computerization program, item No. 3 of CMO 32-87 as amended by CMO 40-87 relative to insurance should read as follows:

"3 Insurance - the insurance premium covering the transportation of such articles to the port of entry in the Philippines shall be the amount indicated in the covering CRF or invoice, whichever is higher. However, should the importation be insured with a local firm, a certification from the said firm as to the authenticity of the premium paid, indicated in the accompanying premium invoice or official receipt presented, shall be required. In any case, the amount of the premium accepted for customs purposes shall not be less than of 1% (.005) of the Fair Market Value. Where the insurance premium is not verifiable from the CRF or the invoice, and no certification is submitted in a proper case, it shall be computed at 4% of the Fair Market Value. Entry declarations filed during the period from July 1, 1995 to the effectivity date of this Order shall be processed pursuant to CMO 13-95."

All Customs Memorandum Orders and Circulars or parts thereof which are inconsistent with this Order are deemed repealed and/or modified accordingly.

This Order shall take effect immediately,

Adopted: 12 July 1995

(SGD.) GUILLERMO L. PARAYNO, JR.
Commissioner