Establishment of Customs Clearance Areas in Special Economic and/or Freeport Zones

October 11, 1996

ADMINISTRATIVE ORDER NO. 296

ESTABLISHMENT OF CUSTOMS CLEARANCE AREAS IN SPECIAL ECONOMIC AND/OR FREEPORT ZONES

WHEREAS, it is the declared policy of the government to encourage, promote and accelerate the industrial, economic and social development of the country through, among other measures, the establishment of special economic and/or freeport zones (SEFZs) in strategic locations in the country;

WHEREAS, pursuant to said policy, Republic Act Nos. 7227, 7903 and 7922 have been issued, establishing the Subic Bay Freeport Zone, the Zamboanga City Special Economic Zone, and the Cagayan Special Economic Zone, respectively;

WHEREAS, pursuant to Republic Act No. 7227, Executive Order No. 80 (1993) and Proclamation No. 216 (1993) have been issued, establishing the Clark Special Economic Zone and the Poro Point Special Economic and Freeport Zone, respectively;

WHEREAS, pursuant to Republic Act No. 7916, the Philippine Economic Zone Authority has been established to operate, administer, manage and develop the economic zones;

WHEREAS, the SEFZS are vested with the status of separate customs territories, within the framework of the 1987 Constitution and the national sovereignty and territorial integrity of the country, and thereby allowed the free and unimpeded movement of goods within their territorial jurisdiction;

WHEREAS, when goods/cargoes are withdrawn from the SEFZs for entry into the customs territory, there is a need to hasten and facilitate their release without sacrificing effective customs control;

WHEREAS, it is imperative to delineate an area (s) where goods/cargoes from the SEFZs entering the customs territory, as well as goods bound for the SEFZs coming from the customs territory, shall be coursed through under customs control, for proper examination, assessment of the duties/taxes, and expeditious clearance, of such goods;

NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order the following:

SECTION 1. Establishment of Customs Clearance Areas. — There shall be provided and delineated by the Zone authorities a Customs Clearance Area (CCA) to be operated and managed by the Bureau of Customs (BOC). The CCA shall be a clearing and processing center for goods and cargoes entering the SEFZs from the customs territory, and for goods and cargoes which are to be transported from the special economic and/or freeport zones into the customs territory. cdt

SECTION 2. Location of Customs Clearance Areas. — The CCA shall be strategically located within areas proximate to the path of outbound cargoes (e.g., zone exit gates); Provided, however, that there may be established within the SEFZ as many CCAs as may be necessary as determined by the BOC, in consultation with the Zone authorities.

SECTION 3. Implementing Rules and Regulations. — The BOC shall issue the necessary implementing rules and regulations for the operational procedures of the CCA, in consultation with the Zone authorities and concerned agencies.

SECTION 4. Quarterly Reports. — Quarterly reports on the status of the implementation of this Administrative Order shall be submitted by the BOC to the President, through the Office of the Executive Secretary.

SECTION 5. Repealing Clause. — All presidential issuances, rules and regulations inconsistent herewith are deemed modified, repealed or revoked accordingly.

SECTION 6. Separability Clause. — If for any reason, any part or provision of this Administrative Order shall be held unconstitutional or declared contrary to law, other parts or provisions hereof which are not affected shall continue to be in full force and effect. cd

SECTION 7. Effectivity. — This Order shall take effect fifteen (15) days upon publication in the Official Gazette or any newspaper of general circulation.

DONE in the City of Manila, this 11th day of October, in the year of Our Lord, Nineteen Hundred and Ninety-Six.