Code of Ethics for Customs Brokers

February 22, 2005

PROFESSIONAL REGULATORY BOARD FOR CUSTOMS BROKERS RESOLUTION NO. 02-05

CODE OF ETHICS FOR CUSTOMS BROKERS

Pursuant to Section 7 (a), Article II and Section 32, Article IV of R.A. No. 9280, the "Customs Brokers Act of 2004", the Board subject to approval by the Professional Regulation Commission hereby adopts and promulgates the hereunder Code of Ethics for Customs Brokers prescribed and issued by the Chamber of Customs Brokers, Inc., the one and only accredited professional organization of customs brokers recognized by the Board for Customs Brokers and the Professional Regulation Commission pursuant to Section 31, Article IV of the said law. SCHATc

ARTICLE I

General Provisions

SECTION 1. A Customs Broker is a professional imbued with public service so that financial rewards are subordinate considerations. CDHaET

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 goods/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 must observe in all his professional dealings. law2005cd

ARTICLE II

Dealings with Clients

SECTION 4. A customs broker shall hold inviolable the trust and confidence reposed on him by his clients.

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

4.2 He/she shall exercise due diligence over documents and of the cargoes entrusted to him/her for clearance from the customs custody till the delivery thereof to the final destination. The needs of the clients shall always be served above par.

4.3 He/she shall not overcharge or undercharge his/her clients on the professional services he/she renders. Charges shall be based strictly on the professional standard rates as established by the Professional Regulatory Board for Customs Brokers. Neither charges shall be based on a scheme called "package deal" where charges are based on the individual package or per container, a practice tolerating cut-throat competition among members of the profession. SHacCD

4.4 He/she shall not reveal any trade secret or confidential information of his/her clients, past or present, which may consequently be detrimental to said clients. law2005cd

4.5 He/she shall exercise prudence and utmost caution in dealing with walk-in clients. CADSHI

ARTICLE III

Dealing With Any Government Agency

SECTION 5. In dealing with any government agency, a customs broker shall conduct himself/herself with the highest norm of professionalism.

5.1 He/she shall, representing his/her clients, be knowledgeably prepared on his case, be properly attired, and shall conduct himself/herself with dignity and proper decorum.

5.2 He/she shall not commit act or acts that may obstruct or destruct the objectives and functions of any government agency, especially in the area of revenue collections.

5.3 He/she shall not attempt or commit act or acts which may tend to influence government officials/employees and which may give rise to the facilitation or accommodation of transaction that consequently is detrimental to the government.

ARTICLE IV

Professionalism and Relationship With Fellow Customs Broker

SECTION 6. A customs broker shall strictly observe the primary objectives, tenets, and principles of the Code of Ethics for Customs Brokers — COMPETENCE, RESPECT, INTEGRITY, JUSTICE and FAIRNESS.

6.1 He/she shall obey the laws of the Republic of the Philippines and shall defend its constitution.

6.2 He/she shall continuously evaluate and improve his/her professional competence to enhance his/her ability to provide quality services and to be globally competitive. He/she shall participate actively in Continuing Professional Education for Customs Brokers as mandated by law. IEHScT

6.3 He/she shall not allow himself/herself to be used as a dummy

by any individual, corporation, firm, association or entity.

6.4 He/she shall not charge professional fee outside the customs brokers professional standard fees established by the Professional Regulatory Board for Customs Brokers.

6.5 He/she shall not enter into a contract with his/her clients whereby professional fees and other charges are based merely on per package or per container shipments in order to avoid cut-throat competition.

6.6 He/she shall not abet breaches/violations of the law and shall be morally obligated to report such violations or infractions.

6.7 He/she shall actively participate in the activities and programs of the accredited professional organization of customs brokers.

6.8 He/she may be a member of associate/affiliate professional association/s of customs brokers despite his/her mandatory membership in the accredited professional organization of customs brokers.

6.9 He/she shall not attempt to discredit any member of the customs broker profession for the purpose of gaining access with the member's clients.

6.10 He/she shall not be a party to any plan which would permit any person not registered in good standing with the Board of Customs Brokers and the PRC to practice as a Customs Broker.

ARTICLE V

Customs Brokers in Government Service

SECTION 7. A Customs Broker in government services 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 a public office is a public trust. IDaEHC

7.1 Being in government service, he/she is uniquely situated in such a position that he/she is subject to government Code of Ethics and Ethical Standards as a public servant and this Code of Ethics as a professional. Any infraction of the government Code of Ethics and Ethical Standards involving integrity, moral issues, and other related issues that tend to affect his standing as a professional shall also be dealt with in accordance with this Code of Ethics.

7.2 Being in government service, he/she shall, at all times, comply with Civil Service Rules, as well as with regulations prescribed by the duly constituted authorities.

ARTICLE VI

Customs Broker in Educational Institution

SECTION 8. A customs broker in education shall aim to contribute to the attainment of the academic objectives and policies of the institution.

8.1 As an academician, he/she has the responsibility of achieving professional competence as a teacher or administrator.

8.2 As an academician, he/she shall have at heart the 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 honor, justice, and morality.

8.3 As an academician, he/she shall contribute to the effectiveness, enrichment, and dignity of the teaching profession. SDHAEC

8.4 As an academician, 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 VII

Customs Broker's Social Responsibilities

SECTION 9. As a responsible citizen, a customs broker shall accept his/her social responsibilities and participate in activities for community progress, betterment, and national well-being. IHEAcC

ARTICLE VIII

Penalties and Final Provisions

SECTION 10. A registered and licensed Customs Brokers who violates any provision of this Code of Ethics shall be meted out with the disciplinary action of either revocation of his/her certificate of registration or his/her suspension from the practice of his/her profession.

ARTICLE IX

Amendments

SECTION 11. Amendments to the Code of Ethics may be carried out by the Professional Regulatory Board for Customs Brokers in coordination with the Accredited Professional Organization of Customs Brokers, subject to approval by the Professional Regulation Commission.

Effectivity

SECTION 12. If any provision or part thereof shall be declared unconstitutional or invalid, such judgment shall neither invalidate nor impair any other provisions or parts thereof.

SECTION 13. This Code of Ethics shall take effect after 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 22nd day of February 2005.

Published in Manila Standard on March 11, 2005

Date of effectivity: March 27, 2005

(SGD.) GEORGE M. JEREOSChairman Board for Customs Brokers (Interim)

(SGD.) CONSTANTINO L. CALICAMember

(SGD.) ANTHONY A. CRISTOBALMember

(SGD.) RODOLFO R. SALAZARMember

EDGARDO B. ABONMember

ATTESTED:

(SGD.) CARLOS G. ALMELORSecretary, Professional Regulatory Boards

APPROVED:

(SGD.) LEONOR TRIPON-ROSEROChairperson

(SGD.) AVELINA A. DE LA REACommissioner

(VACANT)Commissioner