Category Archives: Trade Policy & Procedures Simplification

EU Requires Exporters of GSP products to be registered

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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)

COMELEC advises to ensure compliance of requirements of Certificate of Authority to Transport chemical during gun ban

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Entities engaged in the transport of chemicals are reminded to double check and ensure compliance of the application requirements prior to submission to Commission on Elections (COMELEC) in securing the Certificate of Authority to Transport (CA-TT) chemicals. The completeness of documents submitted will lessen if not totally eliminate the chance of denial of application during the gun ban period.

Mr. Arnie Joseph Anastacio, COMELEC representative, presented in a stakeholders forum, the common reasons for denial of applications. These include the following:

  1. Signatory/Applicant is not authorized to apply (based on Board Resolution);
  2. No Certificate of Employment (COE) and Authorization submitted (for Liaison Officer);
  3. Multiple Origin/Destination Encoded/Written on Application Form;
  4. Application Form Entries, Permit, Radio Message and Endorsement Letter from PNP Not Matching; and
  5. No Proof of Business (for Sole Proprietor)

Specifically, Anastacio reminded that “In cases wherein the applicant will PERSONALLY go to the CBFSP (Committee on the Ban of Firearms and Security Personnel) Office and file the application”, he must submit COE and Board Resolution authorizing him to apply. On the other hand, if the application is submitted through a liaison officer, he must submit his COE and authorization letter, along with the COE of the applicant and a Board Resolution authorizing the same to apply in behalf of the company.

He also clarified that the Board Resolution/Secretary’s Certificate must be notarized and the purpose shall specifically stated for CA-TT application

It was also reiterated that the name and signature of the applicant in the application form should match with the applicant indicated in the Board Resolution. He also emphasized that the Place of Origin in the same application form must be inside the Philippine territory (e.g. Port of Manila/MICP) and not the Port of Origin (e.g. Japan port).

Mr. Anastacio also stressed that the entries in the application form, PNP permit (permit to transport), Radio Message, and Endorsement Letter from PNP should match at all times.

Lastly, in case the applicant is a sole proprietor, he must submit his COE, certified true copy of the Business/Mayor’s Permit, certified true copy of the DTI registration/certification and the COE of the liaison officer (if the application is submitted by the liaison officer).

The gun ban covers the period 13 January to 12 June 2019. The COMELEC also advised that the last day of accepting CA-TT application is on 29 May 2019.

COMELEC regulates movement of chemicals during gun ban

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The Commission on Elections (COMELEC) now regulates the transport and delivery of chemicals following the implementation of the gun ban covering the period 13 January to 12 June 2019.  Under COMELEC Resolution No. 10446 that provides the guidelines during the gun ban, chemicals are classified as explosives.

During the said period, bearing, carrying and transporting firearms, explosives or other deadly weapons is prohibited.

However, entities engaged in the transport, manufacture, import, export, purchase, deal in or sell of Firearms, Ammunitions, Explosives or their components who wants to be exempted of this prohibition are required to secure Certificate of Authority to Transport (CA-TT) chemicals from COMELEC.

Concerned entities may apply for the CA-TT by submitting the following:

  1. Accomplished application forms (CBFSP Form No. 2019-04 ATT (3 copies) & Form 19A04);
  2. Duly notarized Board Resolution;
  3. Certificate of Employment and Authorization of the applicant authorized by the Board;
  4. Original Permit to Transport issued by the Philippine National Police (PNP) with stamp “Not valid without COMELEC exemption;
  5. Endorsement Letter from the Firearms and Explosives Office of PNP; and
  6. Copy of official receipt of filing/processing fee to the COMELEC office.

Applicants are also advised to present and submit a Compact Disk (CD) containing the scanned copies of all documentary requirements and copies of the valid identification cards of the principal and authorized representative.

The COMELEC also encourages applicants to apply for accreditation “by proving their qualification of large-scale frequent operation and/or status as major industry stakeholder” through one-time submission of documentary requirements. Once accredited, applicants will no longer need to re-submit basic documents, thus, shorter turnaround time.

For more information and clarification, the COMELEC’s Committee on the Ban of Firearms and Security Personnel, responsible for the issuance of CA-TT, can be reached through telephone number (02) 400-0323.

Customs to curtail corruption via enhanced goods declaration system

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In a bid to suppress corruption, the Bureau of Customs (BOC) is now in its second phase of pilot testing the implementation of the 1-Assessment System in selected ports in the country.

1-Assessment which is formerly known as Enhanced Goods Declaration Verification System (EGDVS) is a web-based application which will institutionalize the “Zero Contact Policy” in the cargo clearance process. The system will randomly assign Customs examiners and appraisers to goods declaration filed, thus, removing the “suki system”.

As such, examiners, appraisers and brokers can now only communicate through the 1-Assessment portal. Pursuant to Customs Modernization and Tariff Act and other related laws and regulations, Customs Memorandum Order (CMO) 17-2018, which implements the system, provides sanction and penalties to violating parties. .

For transparency, the system also enables importers and brokers to obtain real-time status of their goods declaration lodged with the BOC.

The system will only cover “import consumption entries cleared under the formal entry process in all ports of entry.

Exempted from the 1-Assessment system, even if cleared under the formal entry process, are the (1) Super Green Lane shipments, (2) articles withdrawn from the Customs Bonded Warehouse for local consumption, (3) wastages under the Bonded Warehouse Regime and jet operation losses, (4) goods entered as temporary imports for subsequent re-exportation and (5) deferred payment of government.

To use the system, importers and brokers shall lodge their goods declaration through the Value Added Service Providers, who shall in turn transmit the E2M lodged goods declaration to the 1-Assessment system.

The brokers must then attach the supporting documents to the system. However, original hard copies of supporting documents and notarized copy of the Single Administrative Document (SAD) and Supplemental Declaration on Valuation shall be submitted to the Entry Processing Unit or equivalent office in the port for documents verification.

Another feature of the system is the randomly re-assignment of goods declaration that remained unattended for two hours.

The 1-Assessment system which is the second version of the EGDVS was already implemented at the Port of Manila and Manila International Container Port in October 2017.  Covered in the second-pilot implementation are the ports of Batangas, Clark, Limay, Subic and Surigao and the sub-ports of Bislig, Nasipit, Mariviles, Siain, Puerto Princesa and Bauan. Expected full implementation of the system will either be in December 2018 or in early 2019. (ARB)

Bureau of Customs to form multi-agency unit to address port issues

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Customs Commissioner Isidro Lapeña announced that the Bureau of Customs (BOC) will create a multi-agency body composed of government agencies and port stakeholders and users that will address issues hounding the private sector.

Various stakeholders discussed the recommendations and action plans for the implementation of the Terminal Appointment Booking System (TABS), the Anti-overloading Act, port congestion, turnaround time of trucks, return of empty containers, and issues with international shipping lines.

On TABS, the web-based booking platform for trucks at Manila International Container Port and Port of Manila, port users to extend the early arrival margin to three hours, and improve the system to promote transparency.

On Anti-overloading, stakeholders recommended the extension of moratorium period of 6 months on the implementation of the maximum Gross Vehicle Weight (GVW) for Code 12-2 and Code 12-3. The stakeholders views that the law is inconsistent and not implemented properly because of redundancy of weighing exercises. It was proposed that there should be a mandatory weighing of laden containers prior to exit from the yards. Meanwhile, for long term solution, stakeholders recommend the amendment of the law’s implementing rules and regulations to increase the maximum allowable GVW.

On port congestion, multi-sectoral body is proposed to determine and declare any port congestion. Also, for overstaying of empty containers, stakeholders recommended to shorten the allowable stay of empties from 90 days to 60 days.

Other important recommendations are the following: (1) International Shipping Lines to put up or lease their own depots outside Metro Manila; (2) PEZA to possibly dedicate a space and designate a facility for the empty containers near to them; (3) International Shipping Lines to remove the unwarranted charges by specifying absolute container depot fees when returning empty containers; (4) BOC to initiate the implementation of rules and regulations to regulate the shipping lines.

To address the high cost of origin and destination charges of international shipping lines, the Export Development Council (EDC) together with other stakeholders endorsed a draft bill entitled “An act establishing guidelines for the application of local charges (origin and destination fees) imposed by international shipping lines to comply with existing laws and international standards (INCOTERMS)” to the House of Representatives Committee on Economic Affairs.