ECQ Bayanihan: PNP-FEO expedites issuance of PTU

The Philippine National Police-Firearms and Explosives Office (PNP-FEO) suspends the ‘Payment first before issuance of Permit to Unload (PTU)’ policy in a Memorandum dated 03 April 2020 ‘Leniency on Policy of Payment for Permit to Unload in Time of Enhanced Community Quarantine (ECQ)’ followed by a letter dated 06 April 2020, clarifying further the instructions for its implementation. Continue reading “ECQ Bayanihan: PNP-FEO expedites issuance of PTU”

Customs implements globally accredited ‘AEO Program’ thru CMO 9-2020

In response for the country’s commitment to the World Customs Organization SAFE framework, the Bureau of Customs (BOC) issued CMO 9-2020 “Implementing the Authorized Economic Operator (AEO) Program Established Under CAO 5-2017 for Importers and Exporters” last 16 March 2020. Said memorandum revokes, amends, or modifies CMO 11-2012 and CMO 14-2013 to further beef up the AEO program. Continue reading “Customs implements globally accredited ‘AEO Program’ thru CMO 9-2020”

BOC addresses ECQ accreditation order thru OCOM Memo No. 62-2020 

On March 17, further operational guidelines under the Inter Agency Task Force for the Management of Emerging Infectious Disease (IATF-EID) concerning the implementation of the  “Enhanced Community Quarantine (ECQ)”, ordered that “All government agencies in the Executive Branch are hereby directed to issue accreditation orders to identify their respective skeletal workforces for critical services operating during the duration of the enhanced community quarantine in Luzon…” Continue reading “BOC addresses ECQ accreditation order thru OCOM Memo No. 62-2020 “

Philippines joins ASEAN exchange of electronic Certificate of Origin

The Philippines can now exchange electronic Certificate of Origin (e-CO) with Indonesia and Malaysia as it joins ASEAN Single Window (ASW) Live Operation on 30 December 2019.

The e-CO refers to the ASEAN Trade in Goods Agreement (ATIGA) Form D, an international trade document attesting that goods in a particular export shipment were wholly obtained, produced, manufactured, or processed in a particular country.

As confirmed in an email by the ASEAN Secretariat, “the remaining AMS (ASEAN Member States) will need more time to complete domestic procedures and resolving remaining technical issues”.

Consequently, the Bureau of Customs, through its Export Coordination Division (ECD) and Export Divisions in selected ports shall now issue e-CO using the TradeNet platform pursuant to Customs Memorandum Order (CMO) 15-2019.

The Order governs the application, submission, and processing of e-CO and aims “to facilitate the transmission of e-CO for export products and the receipt of e-CO for imported products.” Meanwhile, the TradeNet covers the functions of the Philippine National Single Window (PNSW). It serves as an automated permit, licensing, and clearance system integrated into one platform for 66 Trade Regulatory Government Agencies (TRGAs) and 10 economic zones. ARB

Instrument of accession to the Istanbul Convention for ATA Carnet awaits President’s approval 

The instrument of Philippine accession to the Customs Convention on ATA Carnet for the Temporary Admission of Goods or the Istanbul Convention is now at the Office of the President for his signature.

The ATA Carnet system is an international scheme that will allow temporary admission and tax-free and duty-free importation of commercial samples, professional equipment and articles for presentation or use in trade fairs, shows, and exhibitions without customs formalities.

The system will also allow traders to use ATA Carnet secured by an international guarantee system. The ATA Carnet is a single document of goods that will pass through several customs territories and will be valid up to one (1) year. It will foster free movement of goods between countries, thus saving costs and time in clearing goods at the border. Failure to re-export all goods listed on the Carnet will result in the payment of applicable duties.

The Department of Finance (DOF), in a letter to the Department of Foreign Affairs (DFA) dated 8 August 2019, requested the preparation of the Instrument of Accession subject to certain conditions. It also underscored that the Convention will “help promote efficiency, consistent with the Administration’s policy of promoting ease of doing business and efficient service delivery.”

Relevant government agencies such as the Department of Trade and Industry (DTI), Bureau of Customs (BOC), Bureau of Internal Revenue (BIR), Department of Tourism (DOT) and Tariff Commission signified their support by submitting their respective Certificates of Concurrence (COC) to the DFA through the DOF.

Once signed by the President, Senate ratification through the concurrence of at least two-thirds of its members is constitutionally required. The Convention provides that it shall enter into force three months after the Philippine has deposited its Instrument of Accession.

The implementation of the ATA Carnet system will support the Office of the President Memorandum Circular (MC) No. 27 which directs “all concerned agencies to strengthen the implementation of the Philippine Export Development Plan and involving other agencies in the development of the export sector”. Specifically, MC 27 mandates the DFA to advocate the Philippine Accession to the Istanbul Convention.- ARB

ADVISORY:

COMELEC emphasized the last day of filing for Certificate of Authority to Transport Chemicals being 29 May 2019.

The Commission on Elections (COMELEC) reminded entities engaged in the transport of chemicals that it will accept applications for Certificate of Authority to Transport (CA-TT) chemicals until 29 May 2019 which is the last day of filing of applications.

The CATT must be secured by said entities following the implementation of nationwide gun ban covering the period 13 January 2019 to 12 June 2019.

The reminder aims to prevent any delay in the clearance of shipments at the border or transportation of chemicals from 30 May to 12 June 2019, after the deadline of submission of applications. The COMELEC committed to process and issue CA-TT within 10 days from submission of complete documentary requirements. For the public’s guidance. -ARB

BOC to implement ASEAN Electronic Certificate of Origin (e-CO)

The Bureau of Customs (BOC) is set to implement the ASEAN electronic Certificate of Origin (e-CO) following the issuance of Customs Memorandum Order (CMO15-2019) which provides guidelines on the operational procedures in implementing e-CO.

The Order was issued pursuant to the Operational Certification Procedure (OCP) of the ASEAN Trade in Goods Agreement (ATIGA) and in compliance with the Customs Modernization and Tariff Act (CMTA). It aims to facilitate the application, processing, issuance, and transmission of e-CO for export products and the receipt of e-CO for imported products by utilizing the TradeNet system (tradenet.gov.ph).

The e-CO refers to the ATIGA Form D which is an international trade document attesting that goods in a particular export shipment were wholly obtained, produced, manufactured, or processed in a particular country. It will be transmitted electronically between ASEAN Member States (AMS) through the ASEAN Single Window (ASW).

Meanwhile, the TradeNet will cover the functions of the Philippine National Single Window (NSW). It will serve as an automated permit, licensing,  and clearance system integrated into one platform for 66 Trade Regulatory Government Agencies (TRGAs) and 10 economic zones.

Application and Submission of e-CO to ASEAN Members States (AMS)

To access the TradeNet system, exporters and importers shall create TradeNet Account and  company profile with their respective usernames and passwords. Once the Pre-Evaluation Report (PER) of export product is completed by the authorized Customs personnel, it shall be uploaded to the TradeNet system, along with the List of Pre-Evaluated Goods of each newly approved applications for reference by all ports.

The exporters must then submit their application for outbound e-CO through the TradeNet system and attach all documentary requirements by uploading it to the system. If approved, the exporters will receive an email containing a downloadable and printable file for the e-CO. Otherwise, the Exporter/s will be informed of the reason for disapproval through email and may file another application for e-CO.Since the full electronic sharing of e-CO among AMS is not yet operational and while the AMS are addressing all technical failures, “the Exporter shall download then print the e-ATIGA Form D, place his or her signature in the appropriate space, and submit the system-generated ATIGA Form D to the Bureau (BOC) for manual execution of signature and seal”.

The Export Coordination Division of the BOC is mandated to submit the approved e-CO to the ASW Gateway. The ASW will in turn send the e-CO to the importing AMS, while the latter must notify the BOC of the utilization status of the e-CO.

Pilot Testing and Full Implementation of e-CO
To commence the implementation of the Order, a Pilot Testing on processing and issuance of e-CO using the TradeNet platform shall be conducted in all ports and sub-ports. During the live testing, the Exporters are required to apply for the issuance of CO both electronically throughtradenet.gov.ph and manually using the Paper ATIGA Form D. The Order explains that it is a precautionary measure in case the outbound e-ATIGA Form D fails to transmit through the ASW Gateway to the receiving AMS.

The Deputy Commissioner for Management Information System and Technology Group is authorized to declare the start of full implementation of the ASEAN e-CO. As such, no outbound and inbound Paper ATIGA Form D shall be processed and accepted, except for valid circumstances which include system downtime and loss of network connectivity exceeding two hours.-ARB

Exporters urged to conduct risk-assessment of dual-use products

Exporters and manufacturers are urged by the Strategic Trade Management Office (STMO) to conduct risk assessment of their products that may be of dual-use goods, otherwise known as strategic goods.

Dual-use goods are items, software, or technology which can be used for both civil and military end-use. These goods are listed in the National Strategic Goods List (NSGL). Other types of strategic goods are military goods and nationally controlled goods.

Strategic goods is defined by the Strategic Trade Management Act (STMA) as “products that for security reasons or due to international agreements, are considered to be of such military importance that their export is either prohibited altogether or subject to specific conditions”. These products are “generally suitable to be used for military purposes or for the production of WMD (Weapons of Mass Destruction)”.

To determine if the goods are of dual-use, exporters may refer to the NSGL, ask the product manufacturer or request classification from the STMO.

Exporters of dual-use goods are required to register and secure an exporter authorization or license from the STMO. Registration of exporters, as announced by the STMO in a forum, will be in the last quarter of 2019, while the exporter authorization is scheduled to be implemented in the third quarter of 2020.

The STMO, a bureau under the Department of Trade and Industry, is mandated by the STMA to regulate such goods by issuing “authorization/ licenses for the export, import, re-export, transit, transshipment, and provision of related services such as brokering, transporting, financing and providing technical assistance of strategic goods”.

Also covered by the STMA are the transit, transshipment, re-export, import, and reassignment of strategic goods. The schedule of regulating such activities is still to be announced by the STMO.

Non-compliance of the Act by the exporters will risk them seizure, delays, fines, imprisonment and inclusion in the denials list/ watchlist.

The STMA, otherwise known as Republic Act No. 10697, “An Act Preventing the Proliferation of Weapons of Mass Destruction by Managing the Trade in Strategic Goods, the Provision of Related Services, and for Other Purposes,” was enacted to enforce measures to establish domestic controls to prevent the proliferation of weapons of mass destruction (WMD) and their means of delivery from or within the Philippines. (ARB)

EU Requires Exporters of GSP products to be registered

Effective this year, exporters of products under the European Union (EU) Generalized System of Preference (GSP) – are required to be registered to the Registered Exporters System (REX).

The system allows exporters to issue self-certifications of the origin of goods  to the EU under the GSP Program.

The REX replaces the current system of origin certification based on certificates of origin issued by the Bureau of Customs (BOC).

However, the rules of determining the origin of good in the EU GSP scheme remain unchanged with the application of the REX System.

The global transition period from the current system of origin certification to the REX system started on 01 January 2017 and will last until 30 June 2020.

There are three (3) easy steps for exporters to register in the REX system: (1) The exporter fills in (electronically/ on paper) an application and submits it to the BOC; (2) If the application is complete, BOC encodes it in the REX system, assign a REX number, a registration date and a validity date; and (3) BOC informs the exporter of the registration or non-registration within seven (7) working days after receipt of the complete set of documents by the Export Control Division (ECD) of the BOC.

The following documents are needed  to be submitted by the exporter to BOC: latest income tax return, Unique Reference Number (URN) for PEZA locators and Client Profile Registration System (CPRS) for non-PEZA locators, business permit, SEC/DTI registration, list of products applied for authorization to make invoice declaration and product evaluation report.

Exporters who are not manufacturers or producers, must have prior knowledge on how the goods were manufactured or produced and that they comply with the origin rules applied under Annex 22-03 in GSP. Finally, registered exporters shall be notified about the results of the application and shall be assigned with a REX number within seven (7) working days after receipt of the complete set of documents by the ECD. (GTM)