Bureau of CustomsTowards a World-Class Customs Administration

Pushing Trade Facilitation Reforms Towards Increased

Export Competitiveness

Trade Facilitation

Main ObjectiveMain Objective

To minimize the transaction costs and complexity of international trade for business

X X

Trade Facilitation

Trader BenefitsTrader Benefits

Cut costs and reduce delays

Faster Customs clearance and release through predictable official intervention

Simple commercial framework for doing both domestic and international trade

Enhanced effectiveness

x

Benefits of Trade Facilitation

Benefits to EconomiesBenefits to Economies

Promote export growth

Improve competitiveness in global market

Attract much needed FDI

Increase participation of SMEs in international trade

Trade Facilitation Constraints

Excessive documentation requirements

Lack of automation

Lack of transparency, unclear and unspecified import and export requirements

Inadequate procedures, especially lack of audit-based controls and risk assessment techniques

Need for cooperation among Customs and other government agencies

Revenue Enhancement

Trade Facilitation

Improved Enforcement

Professionalization of Personnel

Quality of Corporate Life Development

5 POINT AGENDA

Strengthening of the Post Entry Audit Group (PEAG)

Professionalization of the Customs Service thru training and retraining of BOC personnel

Re-deployment of non-intrusive inspection (NII) machines or x-ray facilities

TF Initiatives

With Scanner

Port

Subport

LEGENDS:

1. Port of Manila

2. MICP

3. NAIA

4. Port of Batangas

5. Port of Cebu

6. Port of Cagayan de Oro

7. Port of Zamboanga

8. Port of Davao

9. Port of Subic

10. Port of Clark

11. San Fernando

5 units

4 units

4 units

4 units

2 units

1 unit

5 units

2 units

2 units

1 unit________

30 UNITS TOTAL

X-ray Check System

RISK MANAGEMENT or SELECTIVITY SYSTEM

RED – Physical Inspection

X-Ray INspection

YELLOW – Document Check

GREEN – No Inspection

X-ray Check System

TF INITIATIVES

ESTABLISHMENT OF THE AUTHORIZED ECONOMIC OPERATOR (AEO) PROGRAM, TO BE KNOWN AS CUSTOMS-TRADE ALLIANCE TO PROTECT AND ACCELERATE TRADE OR C-TAPAT PROGRAM

TF INITIATIVES

CUSTOMS ADMINISTRATIVE ORDER HAS BEEN DRAFTED WITH THE FFG OBJECTIVES:

• To comply with the commitment of the Philippines to implement the World Customs Organization (WCO) Framework of Standards to Secure and Facilitate Global Trade Framework (SAFE)

• To establish a voluntary certification program to be known as Customs-Trade Alliance to protect and accelerate Trade or (C-TAPAT).

• To enhance BOC-Business partnership on trade security and trade facilitation based on trust and mutual respect.

• To establish accreditation procedures that offer certain benefits and incentives to certain economic operators considered as BOC’s trusted allies.

Implement as early as possible the National Single Window (NSW) and later on the ASEAN Single Window (ASW) for single submission, single processing and single decision making.

TF Initiatives

Exec Order: Creating the National Single Window (NSW) Task Force for Cargo Clearance

MAJOR PROVISION:

“Government Departments and Agencies involved in the cargo clearance release must cooperate with each other in order to provide the Bureau of Customs with automated electronic system required for the establishment, implementation, and operation of the NSW, and eventually the ASW.”

1. Board of Investments

2. Bureau of Animal Industry

3. Bureau of Customs

4. Bureau of Export and Trade Promotion

5. Bureau of Fisheries and Aquatic Resources

6. Bureau of Import Services

7. Bureau of Internal Revenue

8. Bureau of Quarantine

9. Bureau of Plant Industry

10. Bureau of Product Standards

11. Dangerous Drugs Board

12. Department of Health

13. Civil Aviation Authority of the Philippines

14. Environment Management Bureau

15. Fertilizer and Pesticide Authority

NSW is now operational at 30 government agencies

16. Firearms and Explosives Office

17. Food and Drug Administration

18. Forest Management Bureau

19. Maritime Industry Authority

20. National Food Authority

21. National Meat Inspection Service

22. National Telecommunications Commission

23. Optical Media Board

24. Philippine Coconut Authority

25. Philippine Drug Enforcement Agency

26. Philippine Economic Zone Authority

27. Philippine National Police

28. Philippine Nuclear Research Institute

29. Phillippine Ozone Desk

30. Sugar Regulatory Administration

AGENCIES IN THE NSW

TF Initiatives

Implement e2M Customs projectwhere all Customs transactions, from import, export and transshipment, will be covered

E2M Status and EnhancementA. E2M Customs System

1. Import and Assessment System

- implemented nationwide as of August 2010

2. Automated Export Documentation System

( new version – web based )

- pilot implementation in POM and MICP. Unisys to meet with various exports group on April 1, 2011 to agree with the implementation date.

E2M Status and Enhancement

3. Other Applications Systems

- Informal Entry System – Full implementation by April 30, 2011

- Automated Bonds Management System –CMO is under review

- Transit System – Implementation to be completed by April 30, 2011

- Value Reference Information System (VRIS)-

system configuration being done by MISTG & VRIS group

E2M Status and Enhancement

5. Client Profile Registration System

- Export Agencies (PhilExport, BOI, EDC) were required to submit list of members in good standing by 3.11.2011

- VASPs to help encode and transmit CPRS data of Exporters to E2M by March 25, 2011

- MISTG to activate exporters CPRS- Meeting with EDC, Philexport , BOI is set

April 1, 2011 to follow-up on status and set schedule for implementation of AEDS.

E2M STATUS and ENHANCEMENT

B. Electronic Certificate of Payment System

- nationwide implementation done in 2010

C. Enhanced Risk Management System

- implemented also in 2011 under ASYCUDA 1.16D

Procedural and Technical Enhancements of I-Care• Introduced a systematic and computerized

procedure in the handling of documents submitted to ICARE (i.e. scanning of applications)

• Initiated a faster mode of sending notices to applicant-importers and brokers by sending e-mails

• Designating pre-evaluators for completeness of documents

• Creation of TWG for the rationalization of Accreditation requirements.