Modifying the Rates of Import Duty on Certain Agricultural Products under Section 1611 of Republic Act No. 10863

July 15, 2015 CUSTOMS MEMORANDUM CIRCULAR NO. 098-15 TO : All Deputy Commissioners All Directors and Chiefs All District/Port Collectors And All Others Concerned SUBJECT : Memorandum of Agreement between the Tariff Commission (TC) and the Bureau of Customs (BOC)/Information Interchange for the Enhancement of the Philippine Tariff Finder Attached is a copy of the signed and notarized Memorandum of Agreement between the Tariff Commission and the Bureau of Customs for the exchange of information necessary for the enhancement of the Philippine Tariff Finder in accordance to the needs of the Bureau. For your information and guidance. Please confirm the dissemination of this circular throughout your offices within fifteen (15) days from receipt hereof. (SGD.) ALBERTO D. LINA Commissioner ANNEX A MEMORANDUM OF AGREEMENT KNOW ALL MEN BY THESE PRESENTS: This Agreement is entered into by and between: The BUREAU OF CUSTOMS (BOC),a national government agency under the Department of Finance with office address at G/F OCOM Building, Port Area, Manila 1099, represented by Commissioner ALBERTO D. LINA, hereinafter referred to as "BOC", -and- The TARIFF COMMISSION (TC),a national government agency attached to the National Economic Development Authority with office address at 5/F Medical Arts Building, Philippine Heart Center, East Avenue, Diliman, Quezon City 1100, represented by Chairman EDGARDO B. ABON, hereinafter referred to as "TC", WITNESSETH: THAT- WHEREAS, the BOC is the primary government agency in charge assessment and collection of revenues from imported articles and all other related dues, fees, charges, fines and penalties under the tariff and customs laws. WHEREAS, the TC is the principal government agency for tariff and related matters and pursuant to its mandate, created the Philippine Tariff Finder, an online search facility of Philippine tariff rates on specific products allowing access to all existing Philippine tariff schedules. WHEREAS, to improve its custom procedures, the BOC requested access to an enhanced Philippine Tariff Finder that contains features which address the needs of its frontline officers/staff. WHEREAS, in order to enhance the Philippine Tariff Finder and address the BOC's data requirements, the TC requires the regular supply of necessary information from the BOC. NOW THEREFORE, for and in consideration of the foregoing premises and their mutual covenants hereinafter set forth, the BOC and TC hereby agree on the following terms and conditions: A. Obligations of the BOC The BOC shall undertake to regularly and continually supply the TC in a timely manner with the necessary information needed for the enhancement of the Philippine Tariff Finder which will be used to generate data/information in accordance to the needs of BOC officers/staff. The BOC shall likewise undertake to directly provide the TC with information for its other data requirements. These information include but are not limited to the following: 1. Updates on the Sensitive Track List and the MFN and/or preferential rates of duty under the ASEAN-China Free Trade Area (ACFTA),ASEAN-Korea Free Trade Area (AKFTA) and updates in the preferential rates of duty on all other free trade agreements of the Philippines (in excel format); 2. Revised/updated/transposed Product Specific Rule-Rules of Origin (PSR-ROO) on the abovementioned free trade agreements; and 3. Monthly import data mainly, but not limited to, the following: a. PORT CODE b. ENTRY NOS. c. REGDATE d. UNIT OF MEASURE e. IMPORTER f. EXPORTER g. AHTN h. DESCRIPTION i. ORIGIN j. VOLUME k. NET MASS l. TOTAL CUSTOMS VALUE m. CURRENCY n. EXCHANGE RATE o. FREIGHT p. INSURANCE q. OTHER CHARGES r. TAX CODE s. DUTIABLE VALUE t. TAX BASE u. TAX AMOUNT v. TAX RATE w. ITM CUS VAL (landed cost without vat) x. SG or AD DUTY, if any B. Obligations of TC The TC shall: 1. Improve the contents and interface of the present Philippine Tariff Finder to include the issues of reciprocity under the ASEAN Trade in Goods Agreement (ATIGA),ACFTA, AKFTA, and PSR-ROO; aScITE 2. Maintain the 24/7 operation and regular updating of the contents of the Philippine Tariff Finder; 3. Allow the BOC to use the Philippine Tariff Finder as a tool to facilitate application of proper tariff rates and classification of goods. C. General Provisions 1. The BOC and TC shall mutually agree to perform, fulfil and abide with all the provisions, requirements and all matters and things contained or could reasonably be inferred from this Agreement; 2. The BC and TC shall issue the necessary documents, papers, instruments and supplemental agreement in order to undertake and fulfil the provisions of this Agreement; and 3. This Agreement may be amended/modified in writing in order to be responsive to the provisions of pertinent government regulations and guidelines. D. Effectivity and Duration This Agreement shall cover the period of one (1) year and is automatically renewable every year, provided that the parties reserve their respective rights to withdraw their participation in the agreement up written notice. Any modification or amendment to this agreement shall not be valid unless mutually agreed upon in writing buy both BOC and TC. IN WITNESS WHEREOF, BOC and TC have hereunto affixed their respective signatures this 13th day of July, 2015 at Manila City, Philippines. BY: (SGD.) ALBERTO D. LINA Commissioner Bureau of Customs (SGD.) EDGARDO B. ABON Chairman Tariff Commission SIGNED IN THE PRESENCE OF: (SGD.) AGATON TEODORO O. UVERO Deputy Commissioner for Assessment and Operations Bureau of Customs (SGD.) ERNESTO L. ALBANO Commissioner Member III Tariff Commission Acknowledgement Republic of the Philippines ) Manila City ) S. S. BEFORE ME, a Notary Public in and for the city named above, personally appeared Alberto D. Lina and Edgardo B. Abon and have showed to me competent evidence of their identities bearing the following information: Name Proof of Identification Card Number ALBERTO D. LINA Tax Identification Number 102-959-953-000 EDGARDO B. ABON Passport Number EC 0026827 who are identified by me through the above-mentioned identification documents to be the same persons who presented the foregoing instrument and signed the same in my presence, and who took an oath before me as to the execution of such instrument. This instrument refers to the Memorandum of Agreement between BOC and TC for the supply of tariff and import data and use of the Philippine Tariff Finder consisting of four (4) pages, including this Notarial Acknowledgment page which is signed by the parties and their witnesses on each and every page thereof. WITNESS MY HAND AND SEAL this 13th day of July, 2015 at Manila City, Philippines. NOTARY PUBLIC Doc No. 402 Page No. 41 Book No. 41 Series of 2015. MEMORANDUM OF AGREEMENT ON THE ELECTRONIC INFORMATION INTERCHANGE BETWEEN THE BUREAU OF CUSTOMS AND THE TARIFF COMMISSION KNOW ALL MEN BY THESE PRESENTS: This Memorandum of Agreement is made and executed in MANILA, Philippines by and between: The BUREAU OF CUSTOMS (BOC), an agency of the national government mandated by law to enforce customs laws, and rules and regulations relating to importations, exportations and transit of goods to the Philippines, with office address at Port Area 1099, Manila, represented in this Act by its Commissioner ALBERTO D. LINA, hereinafter referred to as BOC; -and- The TARIFF COMMISSION (TC), mandated by law as the sole agency to administer the tariff law, with office address at 5/F, Philippine Heart Center, Medical Arts Building, East Avenue, Diliman 1100, Quezon City, represented in this Act by its Chairman EDGARDO B. ABON, hereinafter referred to as TC; WITNESSETH: THAT- WHEREAS, Section 609 of the Tariff and Customs Code of the Philippines provides that the BOC Commissioner shall regularly furnish the National Economic Development Authority, the Bangko Sentral ng Pilipinas and the Tariff Commission with copies of all customs import/export entries as filed with the BOC. WHEREAS, Customs Memorandum Order No. 20-2004 dated 30 June 2004 provides that seven (7) copies of the pre-numbered Import Entry and Internal Revenue Declaration (IEIRD) [BC Form 236] are furnished to the following: First White Customs Second Yellow National Statistics Office Third Orange Tariff Commission Fourth Gray Bureau of Internal Revenue Fifth Blue Declarant Sixth Pink Terminal Operator Seventh Green Gatekeeper PID (for outside Metro Manila ports) Dep. Coll. for Operations (for Metro Manila ports) WHEREAS, the cost of the IEIRD (BC Form 236) that is paid by the importer to the BOC is P265.00 per complete set; HEITAD WHEREAS, Republic Act No. 8792, otherwise known as the "Electronic Commerce Act of 2000" ,was enacted to facilitate domestic and international dealings and transactions ...,through the utilization of electronic, optical and similar medium, mode, instrumentality and technology ...and to promote the universal use of electronic transaction in the government and general public; WHEREAS, importers will be able to save on costs of processing their importation if the IEIRD (BC Form 236) will no longer be required; NOW, THEREFORE, for and in consideration of the above premises, the Parties have entered into this Memorandum of Agreement to effect the electronic submission by the BOC of the customs import and export entries under the following terms and conditions, to wit: The BOC shall : 1. Furnish the TC electronic copies of the customs import and export entries (also known as the Single Administrative Document or SAD) consisting of the data fields of such entries listed in Annexes A and B in lieu of the printed and pre-numbered IEIRDs (BC Form 236) and export declarations; 2. Submit online, thru the Management Information System Technical Group (MISTG),weekly, monthly and annual consolidated import and export reports to TC; The TC shall : 1. Designate a focal person the office to officially receive all electronic copies of import and export entries as transmitted online by BOC. The BOC and TC shall : 1. Continuously enhance the electronic information interchange for a more efficient and effective performance of their respective functions. 2. Promptly resolve any issue involving discrepancies in exchange of information. 3. Promulgate and disseminate rules and regulations to implement this MOA. IN WITNESS WHEREOF, we have hereunto set our hands this 13th day July 2015 in Manila, Philippines. BY: (SGD.) ALBERTO D. LINA Commissioner Bureau of Customs (SGD.) EDGARDO B. ABON Chairman Tariff Commission SIGNED IN THE PRESENCE OF: (SGD.) AGATON TEODORO O. UVERO Deputy Commissioner for Assessment and Operations Bureau of Customs (SGD.) ERNESTO L. ALBANO Commissioner Member III Tariff Commission Acknowledgement REPUBLIC OF THE PHILIPPINES } CITY OF MANILA } s.s. BEFORE ME, this 13th day of July 2015 in the City Manila, Philippines, personally the following with their competent proof of identification as follows, to wit: Name Proof of Identification Card Number ALBERTO D. LINA Tax Identification Number 102-959-953-000 EDGARDO B. ABON Passport Number EC 0026827 Known to me and to me known to be the same person who executed the foregoing MEMORANDUM OF AGREEMENT consisting of five (5) pages, including this where the acknowledgement is written and the acknowledge to me that the same is their free and voluntary act and deed. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal, the day, year, place above written. NOTARY PUBLIC Doc. No. 401; Page No. 41; Book No. 44; Series of 015 List of Data Fields for Import Entries Office Code Registry/Manifest Number Box No. Particulars 1 Declaration No. 2 Exporter/Supplier: Name, TIN (for domestic and local consignors only), Address 3 Page (Number of pages of IEIRD and its order) 4 not applicable 5 Items 6 Total Packages 7 Reference Number 8 Importer/Consignee: Name, TIN, Address 9 9a. Freight 9b. Insurance' 9c. Other Charges 10 not applicable 11 not applicable 12 not applicable 13 Tentative Release Codes 14 Broker/Attorney-in-Fact: Name, TIN, Address 15 Country of Export; Country of Export Code 16 Country of Origin 17 Country of Destination 18 Vessel/Aircraft 19 Container 20 Terms of Delivery 21 Local Carrier, if any 22 Total Customs Value (All Items) 23 Exchange Rate 24 Bank Charges Code 25 Date of Loading 26 not applicable 27 Transshipment Port 28 Financial and Banking Data 29 Port of Destination 30 Location of Goods 31 Marks and Numbers, Packages, Container Number(s),Number and Kind, Description of Goods 32 Item No. 33 H.S. Codes/AHTN (Commodity Codes) 34 Country of Origin Code 35 Item Gross Weight (kg) 36 Preference 37 Procedure 38 Item Net Weight (kg) 39 Valuation 40 40a. AWB/BL 40b. Previous Document No. 41 Supplementary Units 42 Item Custom Value (F. Cur) 43 Valuation Method 44 Additional Information. Documents Submitted, Certificates/Authorizations 45 Security 46 Dutiable Value (PHP) 47 47a. Calculation of Taxes: Type, Tax Base, Rate, Amount, Method of Payment 47b. Accounting Details 48 Account Number 49 Identification of Customs Bonded Warehouse 50 50a. Signature and Name of the Importer & the Broker or the Importer's Attorney-in-Fact as well as the date 50b. Subscribe and Sworn 51 Authorization 52 Control at Office of Destination IEIRD-Rider The remaining boxes on the Rider shall be completed in the same manner as described for each box above. Reverse Side of the IEIRD 53 Internal Revenue Tax 54 Section of the FED responsible for processing the Entry 55 No. of Packages Examined 56 Date Received 57 Date Released 58 Description in Tariff Terms etc. Revised Charges 59 Charges 60 (As per) Declaration 61 (As per) Findings 62 Differences 63 Action Directed/Recommended Date, COOV 64 Date, COOIII Liquidation 65 Liquidated Amount PHP 66 Shortages/Excess, PHP 67 Remarks 68 COOIII, Date 69 COOV, Date ANNEX B List of Data Fields for Export Entries Box No. Particulars 1 Declaration 2 Exporter: Name, Address, TIN 3 Page 4 not applicable 5 Items 6 Total Pack 7 Declarant Reference No. 8 Importer/Consignee: Name, Address, TIN 9 Registry Office 10 not applicable 11 not applicable 12 not applicable 13 not applicable 14 Declarant: Name, Address, TIN 15 Country of Export; Country of Export Code 16 Country of Origin 17 Country of Destination 18 Vessel/Aircraft 19 Container 20 Delivery Terms 21 Local Carrier (if Any) 22 Currency & Total Amount Invoiced 23 Exchange Rate 24 not applicable 25 No. of LCL 26 No. of FCL 27 Port of Loading 28 Financial and Banking Data 29 Port of Departure 30 Location of Goods 31 Packages and Description of Goods: Marks and Numbers, Packages Container Number(s), Number and Kind, Description of Goods 32 Item No. 33 H.S. Code 34 Country of Origin Code 35 Gross Mass (kg) 36 not applicable 37 Procedure 38 Net Mass (kg) 39 not applicable 40 AWB/Bill of Lading 41 Supplementary Units 42 Item FOB Price 43 Valuation Method 44 Additional Information, Documents Submitted, Certificates/Authorizations: Export Clearance No.,Attached Documents, Invoice No., Reference No. 45 Adjustment 46 Statistical PHP Value 47 Calculation of Taxes and Fees: Type, Tax Base, Rate, Amount, Method of Payment 48 Prepaid Account Number 49 Identification of Warehouse 50 Exporter/Declarant: Name, Signature 51 Authorization: Name of Agency, Printed Name/Signature, Position, Date, Valid Until 52 Bureau of Customs ():Printed Name/ Signature, Position, Date