Category Archives: Trade Policy & Procedures Simplification

BOC temporarily suspends the Automated Bonds Management System on transit shipments

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The Bureau of Customs (BOC) temporarily suspends the Automated Bonds Management System (ABMS) implementation on transit shipments under CMO 30-2020  from 15 March 2021 up to 04 April 2021.

CMO 30-2020 applies to all Transit Bond Accounts opened under the electronic-to-mobile (E2M) Customs System in all Collection Districts, including sub-ports and other BOC offices.
This policy deferment was adopted to avoid further delays in the delivery of raw materials needed for export. The Value-Added Service Providers (VASPs) encountered system glitches wherein transit shipments bound for PEZA zones cannot be seen in the system to be tagged “ARRIVED” as it reaches the zone. Continue reading → BOC temporarily suspends the Automated Bonds Management System on transit shipments

ARTA mandates the on-boarding of 73 TRGAs to the TradeNet platform

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The Anti-Red Tape Authority (ARTA) directs the mandatory onboarding of the 73 Trade Regulatory Government Agencies (TRGAs) to the TradeNet through the issuance of Memorandum Circular (MC) 2021-01 last 05 March 2021.  TradeNet is an online platform that harmonizes all licenses and permits for imports and exports.

The MC provides specific guidelines and timelines for the onboarding of the TRGAs. The onboarding process must only take ten (10) weeks from the issuance of the said MC and receipt of the individual letter-request. ARTA assures that administrative sanctions will be filed on with non-compliant agencies. Continue reading → ARTA mandates the on-boarding of 73 TRGAs to the TradeNet platform

Bureau of Customs accords the five years validity period of the Product Evaluation Report

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The Bureau of Customs (BOC) accords the five years validity period of the Product Evaluation Report (PER) of exports conforming with the ASEAN Trade in Goods Agreement (ATIGA) and all the other Free Trade Agreements (FTAs).

This amended policy transpired after the exporters protested the issuance of AOCG Memo No. 67 2021 ‘Evaluation of Goods Applying for Certificate of Origin (CO)’ on 05 February 2021, which shortened the PER validity from five years to three years. BOC released a memorandum on 10 February 2021 in response to the exporter’s clamor to amend the said AOCG memo reverting the five-year validity period instead of three years.

Continue reading → Bureau of Customs accords the five years validity period of the Product Evaluation Report

Transport of Potassium Nitrate in solid form authorized by PNP

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The Philippine National Police of Civil Security Group (PNP-CSG) clarified in a memorandum authorizing the transport of Potassium Nitrate (KNO3) in its original solid form. This order will not require potassium nitrate to be diluted in liquid form prior to transport and passing through the PNP checkpoints. Said chemical in liquid or solid form shall be transported without delay provided that the company has complied valid permits (Permit to Unload, Permit to Purchase and Move, and Permit to Transfer) bearing the appropriate information necessary for its movement (i.e.PPME#, license#, company name, date of issuance and validity, specific purpose, quantity of chemical, port of origin, and destination). This mandate was clarified in a memorandum signed by PMGEN Roberto Fajardo (PNP-CSG) dated16 July 2020.

This concern was raised by the Export Development Council (EDC) Executive Member, Mr. Roberto Amores representing agri/food sector during the EDC Executive Committee Meeting via zoom last 30 June 2020.

Certain exporters from the agricultural groups have resorted to using this chemical due to climate change. Potassium Nitrate is being used for agriculture to ascertain the heat content required to induce flowering. Said chemical was flagged down at specific checkpoints due to its high explosive rate, with this risk it has to be diluted in liquid form prior to transporting.

PNP-Firearms and Explosives Office Chief, BGen. Rommil Mitra assured that the content of the aforesaid memorandum specifically authorizing the transport of potassium nitrate in solid form will be coordinated and disseminated accordingly among their personnel on the grounds/checkpoints to enhance trade facilitation without compromising public health and safety. MRJ

BOC mandates onboarding of TRGA’s to TradeNet by March 2021

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EDC lauds the pronouncement made by the Bureau of Customs (BOC) AOCG Deputy Commissioner Edward Dy Buco that stakeholders can expect enhanced trade facilitation with the Bureau in 2021.  He added that the Commissioner assures its support towards export growth by prioritizing export-related activities in the Bureau’s 10-Point Priority Program for the upcoming year.

Hence, in collaboration with ARTA, BOC will lead the onboarding (by phase) of all 73 Trade Regulatory Agencies (TRGAs) on TradeNet by  03 March 2021.  Member agencies of the old Philippine National Single Window (PNSW) are prioritized in Phase 1 of the TradeNet onboarding process.  Steps for the Agencies’ onboarding activities to include the following: Continue reading → BOC mandates onboarding of TRGA’s to TradeNet by March 2021

Philippines joins ASEAN exchange of electronic Certificate of Origin

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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 

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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:

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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)

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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

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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)