Adoption and Promulgation of the New Code of Ethics and Code of Technical Standards for Customs Brokers

December 2, 2015

PROFESSIONAL REGULATORY BOARD FOR CUSTOMS BROKERS RESOLUTION NO. 005-15

ADOPTION AND PROMULGATION OF THE NEW CODE OF ETHICS AND CODE OF TECHNICAL STANDARDS FOR CUSTOMS BROKERS

WHEREAS, Sections 7 (a) of Republic Act No. 8981, otherwise known as the "PRC Modernization Act of 2000", mandates the Professional Regulation Commission (Commission) to administer, implement and enforce the regulatory policies of the national government with respect to the regulation and licensing of the various professions and occupations under its jurisdiction, including the enhancement and maintenance of professional and occupational standards and ethics and the enforcement of the rules and regulations relative thereto:

WHEREAS, Section 7 of Republic Act No. 9280 or the "Customs Brokers Act of 2004", vests upon the Professional Regulatory Board for Customs Brokers (Board) the power and duty to promulgate, administer and enforce rules and regulations, including the Code of Ethics and Code Technical Standards for Customs Brokers, necessary for carrying out the provisions of the law;

WHEREAS, the Board is further empowered to look into the conditions affecting the practice of customs brokers, to adopt measures for the enhancement of the profession and the maintenance of high professional, technical and ethical standards; ***

WHEREAS, Section 32 of the same law provides that the Board shall adopt and promulgate the Code of Ethics and Code of Technical Standards which shall be prescribed and issued by the accredited professional organization (APO) for customs brokers;

WHEREAS, Section 21 of R.A. No. 9280 furthermore provides: "the Board may, after giving proper notice of hearing to the party concerned, revoke the Certificate of Registration and Professional Identification Card of a professional customs broker or suspend him/her from the practice of the profession or cancel his/her temporary/special permit for any of the causes or grounds under Section 20 for unprofessional or unethical conduct, malpractice, or violation of any of the provisions of this Act, its implementing rules and regulations, and the Code of Ethics for Professional Customs Brokers;" ICHDca

WHEREAS, the Board issued Resolution No. 2005-02 adopting and promulgating the Code of Ethics issued by the Chamber of Customs Brokers, Inc. (CCBI) which is the APO for customs brokers;

WHEREAS, on April 17, 2015, the Board of Directors of CCBI passed Resolution No. 08-2015 prescribing a new Code of Ethics and Code of Technical Standards for customs brokers;

NOW THEREFORE, the Board, pursuant to the provisions of R.A. No. 9280, has RESOLVED, and its so RESOLVES, to adopt and promulgate the New Code of Ethics and Code of Technical Standards for Customs Brokers as prescribed and issued by the CCBI, which copy is hereby made as an integral part of this Resolution as Annex A.

Further Resolved, that this Resolution, together with its Annex, shall take effect after fifteen (15) days following its publication in the Official Gazette or in any newspaper of general circulation in the Philippines.

Let copies of the same be furnished the UP Law Center, the Board, Office of the Board Secretariat, Legal and Investigation Division, CCBI, all Regional Offices and other constituent offices and divisions of the Commission.

DONE in the City of Manila this 2nd day of December 2015.

VACANTChairman

(SGD.) ROLANDO L. DE JESUSMember

(SGD.) NENETTE T. DAGONDONMember

ATTESTED BY:

(SGD.) ATTY. LOVELIKA T. BAUTISTAOIC, Secretary to the Professional Regulatory Boards

APPROVED:

VACANTChairperson

(SGD.) ANGELINE T. CHUA CHIACOActing Chairperson

(SGD.) YOLANDA D. REYESCommissioner

ANNEX

Chamber of Customs Brokers, Inc.

Resolution Number 2015-08

Code of Ethics and Code of Technical Standards for Customs Brokers

Pursuant to Section 7 (a), Article II in relation to Section 32, Article IV of R.A. No. 9280, otherwise known as the "Customs Brokers Act of 2004," the Board hereby adopts and promulgates the hereunder Code of Ethics for Customs Brokers, which shall be prescribed and issued by the Accredited Professional Organization (APO) for Customs Brokers.

Pursuant to Section 7 (a), Rule II and Section 32, Article IV of the Board for Customs Brokers Resolution Number 03 s. 2005, otherwise known as the "Rules and Regulations Implementing the provisions of Republic Act No. 9280, the "Customs Brokers Act of 2004," the Board subject to the approval by the Professional Regulation Commission (PRC) hereby adopts and promulgates the hereunder Code of Technical Standards for the practice of Customs Brokers under Section 6 of R.A. No. 9280, which shall be prescribed and issued by the accredited professional organization.

Preamble

The practice of the Customs Broker profession is imbued with public service, as it involves collection of taxes which is the lifeblood of the government; and facilitation of international trade, which affects the economic development of the country. It is, therefore, imperative that a Customs Broker be guided by a set of standards for the effective, efficient and consistent discharge of this technical responsibilities.

While the Code of Ethics shall be the moving guide of the Code of Technical Standards for the honorable conduct of the Customs Brokers in the discharge of his professional responsibilities, the Continuing Professional Education or Development (CPE/CPD) shall be the vehicle to strengthen the ethical and technical competence of Customs Brokers through academic or non-academic undertakings.

CODE OF ETHICS

ARTICLE I

General Provisions

Section 1. The Customs Broker profession is imbued with public service so that financial rewards are subordinate considerations.

Section 2. A Customs Broker by virtue of his/her profession has the responsibility in ensuring that lawful revenues due on the legal importation and/or exportation of articles are properly declared in order to protect the interest of the government and his/her client(s) which will redound to the general welfare.

Section 3. A Customs Broker's relationship with his/her clients and fellow customs brokers is based mainly on the following considerations COMPETENCE, RESPECT, INTEGRITY, JUSTICE and FAIRNESS which he/she must observe in all his/her professional dealings.

ARTICLE II

Responsibilities with the General Public

Section 4. A Customs Broker shall be obedient to the laws of the Republic of the Philippines and uphold the Constitution.

4.1. A Customs Broker shall neither assist nor encourage violation of the law and is morally obligated to report such violations or infractions.

Section 5. A Customs Broker shall recognize that a professional has social responsibilities.

5.1. A Customs Broker shall, as a responsible citizen, accept his/her social responsibilities and participate actively in activities for community progress, betterment and national well-being.

ARTICLE III

Professionalism and Relationship with Fellow Customs Broker

Section 6. A Customs Broker shall at all times uphold the standards of the profession by strictly observing the primary objectives, tenets, and principles of the Code of Ethics for Customs Brokers — COMPETENCE, RESPECT, INTEGRITY, JUSTICE and FAIRNESS.

6.1. A Customs Broker shall continuously evaluate and improve his/her professional competence to provide quality professional services and be globally competitive; and shall have the moral obligation to actively participate in the Continuing Professional Education/Development (CPE/CPD) for Customs Broker.

6.2. A Customs Broker shall actively participate in the activities and programs of the Accredited Professional Organization (APO) of Customs Brokers.

6.3. A Customs Broker shall not allow himself/herself to be used as a dummy by any individual, corporation, firm, association or entity; nor shall be a party to any plan which would permit any person not registered with the Professional Regulatory Board for Customs Broker (PRBCB) and the Professional Regulation Commission (PRC) to practice the Customs Broker Profession.

6.4. A Customs Broker shall not attempt to discredit any member of the Customs Broker profession for the purpose of gaining access with member's client nor solicit the clients of other Customs Brokers through predatory professional fees.

6.5. A Customs Broker may join any organization for Customs Brokers inspite of his/her mandatory membership in the Accredited Professional Organization (APO) for Customs Brokers. cTDaEH

ARTICLE IV

Dealings with Any Government Agency

Section 7. A Customs Broker shall observe the highest norm of professionalism in dealing with the government.

7.1. A Customs Broker shall not exert undue influence or attempt to do so upon any government official or employee on which he/she has pending official transaction or business relative to the practice of his/her profession. He/she shall not persuade, induce or influence with monetary considerations, advantage, or by bestowing any gift, favor, or other things of value to any public official or employee, to perform an act constituting a violation of rules and regulations issued by a competent authority or an offense in connection with the official duties of the latter.

7.2. A Customs Broker shall have the obligation to inform the government of any act of a client which is detrimental to the interest of the government, its citizen or the Customs Broker profession.

ARTICLE V

Dealings with Clients

Section 8. A Customs Broker shall be guided by the principle that their interest is subordinate to government's interest.

8.1. A Customs Broker shall not take advantage of his/her client's or prospective client's innocence, ignorance, and credulity. Neither will he/she advise, influence or coach, his/her client(s) or prospective client(s) into committing illegal acts by evading or minimizing the payment of customs duties and taxes under the guise of cost cutting; nor will he/she abet illegal acts tending to defraud the government.

8.2. A Customs Broker shall hold inviolable the trust and confidence reposed on him/her by his/her client(s). He/She shall not misappropriate funds for payment of customs charges entrusted to him/her by his/her client(s). 

8.3. A Customs Broker shall treat with confidentiality and utmost care any trade secret or confidential information of his/her client, past or present, which may consequently be detrimental to said client.

8.4. A Customs Broker shall deliver the best professional service to clients under any circumstance.

8.5. A Customs Broker shall exercise prudence and utmost caution in dealing with walk-in-clients.

8.6. A Customs Broker shall not evade his/her liability with respect to a just claim by his/her client arising out from the wrongful act or negligence of him/her or his/her duly authorized representative in connection with any transaction handled by him/her involving the practice of his/her profession.

8.7. A Customs Broker shall not withdraw his/her services, unless for justifiable cause(s).

ARTICLE VI

Customs Brokers in Government Service

Section 9. A Customs Broker in government service shall adhere to the General Principles enunciated in this Code of Ethics and shall endeavor to perform his/her official duties diligently, faithfully, and efficiently, ever conscious that public office is a public trust.

9.1. A Customs Broker employed in any government agency shall not engage in customs brokerage business or any business related thereto unless allowed by law.

9.2. A Customs Broker in the government service, shall not divulge valuable information of a confidential character acquired by him/her on account of his/her official position to unauthorized person/s relative to customs broker's transaction/operation.

9.3. This Code of Ethics shall supplement the Civil Service laws, rules and regulations; the Code of Conduct and Ethical Standards of Public Officials and Employees (R.A. 6713); and the Anti-Graft and Corrupt Practices Act (R.A. 3019) and all other laws, rules and regulations that may be applicable.

ARTICLE VII

Customs Brokers in Educational Institution

Section 10. A Customs Broker in education shall aim to contribute to the attainment of the academic objectives and policies of the institution.

10.1. As an educator, he/she has the primordial responsibility of molding future members of the profession ethically, globally competitive and professionally equipped to discharge the responsibilities of the customs broker profession. He/She shall look for the best welfare of the students, stimulating in them a deep interest in their studies, exposing them to meaningful experiences in life, and inculcating in their young minds the ideals of COMPETENCE, RESPECT, INTEGRITY, JUSTICE and FAIRNESS.

10.2. As an educator, he/she has the responsibility of achieving professional competence by strictly adhering with the Commission on Higher Education (CHED), Professional Regulation Commission (PRC), Professional Regulatory Board for Customs Brokers (PRBCB), and Accredited Professional Organization (APO) rules and regulations.

10.3. As an educator he/she shall contribute to the effectiveness, enrichment, and dignity of the teaching profession.

10.4. As an educator, he/she shall accept a reasonable degree of responsibility for leadership in research in professional matters, and in co-curricular affairs in the institution.

ARTICLE VIII

Customs Broker in Private Employment

Section 11. A Customs Broker in private employment shall be covered by this Code of Ethics and Technical Standards and due observance thereof is hereby required.

11.1. A Customs Broker in private employment shall be guided not only by the reasonable standards of his/her employer and company's policies but also by this Code of Ethics and Technical Standards. He/She shall not accept any employment or job related to the practice of his/her profession with other company unless with written consent/approval of his/her employer.

CODE OF TECHNICAL STANDARDS

ARTICLE I

Section 1. Unless otherwise provided for in the contract of engagement, Customs Brokers' opinions or advisement should preferably be in writing, in clear and concise manner, with citations of authorities from specific laws, rules, regulations, literatures or any other authorities.

Section 2. The professional services must be covered by a formal contract with the scope of engagement clearly defined unless the parties agreed with any other type of contract not prohibited by law.

ARTICLE II

Preparation of Customs Requisite Documents for Imports and Exports

Section 3. Preparation of requisite documents pertains not only to hard copies but also electronic copies. If this cannot be done personally by the Customs Broker, the same may be delegated to his/her duly authorized representative(s) in writing, under his/her direct control and supervision, to ensure correctness of requisite documents and to safeguard the interest of both the client and the government. He/She shall be personally and solidarily responsible for the act(s) committed by his/her duly authorized representative(s).

Section 4. In the preparation of these documents, a Customs Broker shall strictly rely on the documents submitted by his/her client. No alteration, tampering, substitution, production or fabrication of import or export documents and regulatory permits or clearances shall be done by a Customs Broker.

Corrections of errors in documents shall be done with the prior consent and approval his/her client.

ARTICLE III

Declaration of Customs Duties, Taxes and Other Charges

Section 5. Declaration must be made by a Customs Broker or his/her duly authorized representative(s) in writing on official and accountable forms prescribed by the Bureau of Customs and personally/exclusively issued to the declarant Customs Broker. Such declaration must be personally signed by the declarant Customs Broker, under oath, before a notary public or any official authorized by law to administer oath, in accordance with the applicable laws, rules and regulations. cSaATC

Accountable forms duly issued by the Bureau of Customs personally/exclusively to a Customs Broker cannot be used by another Customs Broker. Both of them shall be personally and solidarily responsible by reason or occasion of the unauthorized use of such documents.

Section 6. Import/export declaration must have the approval/signature of the importer/exporter before it is finalized, lodged and filed.

ARTICLE IV

Preparation, Signing, Lodging Filing, and Processing of Import and Export Declarations and Documents Required to Be Filed at the Bureau of Customs and Other Government Agencies under the TCCP and Other Existing Laws

Section 7. There shall be strict adherence to existing customs laws and regulations in relation to Section 27 of R.A. No. 9280 as amended by R.A. 9853; that an import/export declaration shall be signed by the following:

7.1. Import Declaration — to be signed by a Customs Broker and the consignee/owner/importer.

7.2. Export Declaration — to be signed by the exporter or at his/her option delegate the signing or processing to his/her designated Customs Broker.

Section 8. Lodging, which is the act of electronic submission of import/export declaration, may be delegated by a Customs Broker to his/her duly authorized representative, under his/her direct control and supervision, however, passwords or Personal Identification Number (PIN), or any similar access codes to intermediaries to the Bureau of Customs computer system or direct access to Customs systems or other electronic system of pertinent government agencies are strictly personal to the Customs Broker.

Section 9. Filing of Import/export declaration may be done by duly authorized representative of a Customs Broker under his/her direct control and supervision.

Section 10. If and when electronic signature is adopted by the Bureau of Customs (BOC) or other government agencies, the same shall be personally done/affixed to the electronic document by the Customs Broker.

Section 11. Processing of import/export declaration or other documents may be delegated to a duly authorized representative of the Customs Broker.

Section 12. Customs Brokers representing clients with the Bureau of Customs or concerned government agencies, on disputes or issues concerning declaration therein, which involve applications of tariff and customs laws, may also be delegated by a customs broker to his/her duly authorized representative.

Section 13. A Customs Broker shall be responsible for updating his/her client on the status of his/her shipment on a regular basis until all professional obligations are satisfied.

Section 14. A Customs Broker shall keep and maintain in his/her office a correct, orderly, and itemized manner complete records and file copies of all documents, correspondence and other records relative to the conduct of his profession as prescribed by laws, rules and regulations, as amended. These records shall be considered confidential and shall not be disclosed by a Customs Broker except on subpoena duces tecum issued by a duly authorized customs official, court of competent jurisdiction, Professional Regulation Commission (PRC) and Professional Regulatory Board for Customs Brokers (PRBCB).

Section 15. A Customs Broker shall strictly adhere to Section 30 of R.A. No. 9280; that "No Customs Broker shall advance and finance on behalf of his/her client/importer/the payment of duties and taxes, arrastre charges, wharfage dues, storage fees and other port charges."

Section 16. Advances received by a Customs Broker from his/her client must be liquidated within the reasonable period of time.

Section 17. A Customs Broker shall not be allowed to subcontract any or all of his/her professional services with a client unless authorized by the latter.

Section 18. The professional services must be covered by a formal contract with the scope of engagement clearly defined unless the parties agreed with any other type of contract not prohibited by law. The receipt of shipping documents is an implied indication of a contract of service.

ARTICLE V

Representing Importers and Exporters before Any Government Agencies and Private Entities in Cases Relating to Customs and Tariff Laws, Its Procedures and Practices

 

Section 19. A Customs Broker is expected to effectively represent his/her clients before any government and or private entity in cases relating to customs and tariff laws, its procedures and practices.

Section 20. In representing a client, a Customs Broker shall have a written authority, designation, special power of attorney, or corporate secretary's certificate depending on the requirements of the government agencies or private entities where he/she will represent the client.

Section 21. In representing a client, a Customs Broker shall, be reasonably prepared, properly attired, and conduct himself/herself with professional dignity and decorum.

ARTICLE VI

Employment in Private Enterprises that Requires Professional Knowledge in the Field of Customs and Tariff Administration

Section 22. It shall be understood that a customs broker's employment in a private company may involve management of company's import, export, logistics and supply chain and other related functions; and, does not involve customs clearance or customs brokerage services for other importers and exporters unless allowed upon written approval of his/her employer.

Section 23. The relationship of a Customs Broker with his/her employer shall be bound by this Code of Ethics and Technical Standards.

ARTICLE VII

Teaching Customs and Tariff Administration Subjects in Any University, College or School Duly Recognized by the Government

Section 24. A Customs Broker in the academe shall faithfully observe the standards established under pertinent laws, rules and regulations of the Commission on Higher Education (CHED), Professional Regulation Commission (PRC), PRBCB and APO.

Section 25. In addition to what is prescribed by the Commission on Higher Education, a customs broker in the academe shall have a minimum of three (3) years relevant experience.

ARTICLE VIII

Professional Fees

Section 26. A Customs Broker shall issue Official Receipts duly registered with the BIR for all broker's fees or professional fees collected from his/her clients.

ARTICLE IX

Penalties and Final Provisions

Section 27. A registered and licensed Customs Broker who violates any provision of this Code of Ethics and Technical Standards shall be meted out with disciplinary action of either revocation or suspension of his/her certificate of registration from the practice of his/her profession. (cite the approved PRC Resolution regarding penalties)

ARTICLE X

Amendments/Separability Clause

Section 28. Amendments to this Code of Ethics and Technical Standards may be carried out by the Professional Regulatory Board for Customs Brokers in coordination with the Accredited Professional Organization for Customs Brokers, subject to the approval of the Professional Regulation Commission.

Section 29. If any provision or part of this Code shall be declared unconstitutional or invalid, such judgment shall not affect, invalidate nor impair any other provisions or parts thereof.

ARTICLE XI

Effectivity

Section 30. This Code of Ethics and Technical Standards for Customs Broker shall take effect fifteen (15) days following its full and complete publication in the Official Gazette or any newspaper of general circulation.

DONE in the City of Manila this 17th day of April, 2015. cHDAIS

Published in the Official Gazette, Vol. 112, No. 8, pp. 941-948 on February 22, 2016.