Guidelines on the Implementation of Customs Administrative Order (CAO) No. 01-2018 on Amended Rules on Consolidated Shipment of "Balikbayan Boxes"

October 11, 2018

CUSTOMS MEMORANDUM ORDER NO. 018-18

 

SECTION 1. Scope.— This CMO applies to consolidated shipments of Balikbayan Boxes entered through any port of entry, sent to families or relatives by Qualified Filipinos While Abroad. Balikbayan Boxes brought in through means other than Consolidated Shipments shall be covered by a separate CMO.

SECTION 2. Objectives.—

2.1. To prescribe simplified customs clearance procedures for consolidated shipment of Balikbayan Boxes sent by Qualified Filipinos While Abroad to their families or relatives, especially the OFWs in recognition of their significant contribution to the Philippine economy;

2.2. To facilitate customs clearance of consolidated shipment of Balikbayan Boxes without sacrificing the Bureau's core functions of revenue collection and border protection through application of risk management techniques and Information and Communication Technology (ICT) enabled monitoring and control systems;

2.3. To adopt clear and transparent customs rules, regulations, policies and procedures, consistent with international standards and customs best practices;

2.4. To prevent revenue loss from possible abuse in the availment of the privilege on the tax and duty-exempt importation of Balikbayan Boxes; and

2.5. To guide customs personnel and stakeholders in the customs formalities in the clearance and release of Balikbayan Box shipments.

SECTION 3. General and Administrative Provisions.—

3.1. Registration of Deconsolidators. The Deconsolidator shall apply for registration every two (2) years with the Account Management Office (AMO) of the Bureau, in addition to the registration requirements imposed by other government agencies.

3.2. Documents Required. The following shall be submitted:

a. Duly accomplished AMO application form;

b. List of Consolidators with whom the applicant Deconsolidator has existing Service Contracts;

c. Copy of the individual Service Contract/s between the Deconsolidator and the Consolidator/s with all the annexes. The duly executed Service Contract/s entered into by and between the Deconsolidator and the Consolidator/s shall contain the following undertakings or provisions, that:

i. The required Information Sheet is properly accomplished;

ii. The Consolidator shall advise the Sender of the following:

ii.1. That no prohibited or restricted items, or regulated items in commercial quantities are included in the shipment; CAIHTE

ii.2. No individual shipment shall exceed the limits as to value and frequency as fixed by law.

iii. Should any consolidated shipment include or contain restricted, prohibited or any regulated articles in commercial quantities, the Deconsolidator shall be held responsible therefor; and

iv. The Deconsolidator shall ensure that their principals abroad are made fully aware of the need for Senders to provide information and documents as listed in Section 5.1.2 of CAO 5-2016, to enable the expeditious processing of the shipment and that the data will be used only for the sole purpose of sending the box and shall be covered by the Data Privacy Protection Law existing in the country of origin.

d. Certified True Copy of the registration or accreditation certificate from other government agencies;

e. An Affidavit of Undertaking stating that the Deconsolidator shall be obliged to answer for the various charges that may be incurred by the Bureau such as storage, arrastre, shipping demurrage, stripping and stuffing charges and other incidental expenses not otherwise chargeable against the Forfeiture Fund, in case of implied abandonment of the goods; and

f. Any other documentary requirements that may be required by the Bureau.

SECTION 4. Operational Provisions.—

4.1. Submission of Electronic — Inward Foreign Manifest (E-IFM),House Bill of Lading (HBL) and House Airway Bill (HAWB).

4.1.1. Submission of E-IFM. Submission of E-IFM shall be governed by provisions of existing rules and regulations of the Bureau relative to the submission of cargo manifest. For purposes of uniformity in documentation and to distinguish Consolidated Balikbayan Shipments from other consolidated commercial importations, the words "CONSOLIDATED BALIKBAYAN SHIPMENT" shall be indicated in the field for Description of Goods in the Master Bill of Lading.

4.1.2. Submission of HBL or HAWB. The Deconsolidator shall submit an electronic copy of the consolidated manifest containing the individual HBLs to the Bureau through the Advanced Manifest System (AMS) within the period prescribed by the Bureau.

4.2. Preparation and Submission of Information Sheet.

4.2.1. The Sender may request copies of the Information Sheet (Annex "A") from the Consolidator or may download copies directly from the BOC website (www.customs.gov.ph) or from any of the following Value-Added Service Providers (VASPs):

a. www.etrade.net.ph;

b. www.intercommerce.com.ph; and

c. www.ekonek.com.

4.2.2. The Sender shall either:

a. Print the Information Sheet and fill out manually Sections A, B and C thereof in triplicate per Balikbayan Box; or

b. Accomplish Sections A, B and C thereof online and print the accomplished form in three (3) sets.

4.2.3. All three (3) sets of the Information Sheet must be signed by the Sender on page two (2) and distributed as follows:

a. First (1st) Copy — shall be placed by the sender at the top-most portion inside of the Balikbayan Box containing the goods;

b. Second (2nd) Copy — shall be kept by the Sender; and

c. Third (3rd) Copy — shall be furnished to the Consolidator to be submitted to the Bureau together with the other documentary requirements.

The Information Sheet must have the following attachments:

i. For Filipino Citizens:

i.1. Photocopy of any documents containing the Qualified Filipino's citizenship, full name (First Name, Middle Name, Surname & Suffix),date of birth and place of birth, including:

a. Pertinent page of the Philippine passport with personal information, picture and signature;

b. Permanent Resident ID or equivalent document in other countries (e.g.,Green Card, IQAMA );

c. Overseas Employment Certificate (OEC)/OWWA Card;

d. Work Permit;

e. Unified Government ID issued by the Department of Labor and Employment (DOLE);and

f. Any other equivalent document (except Birth Certificate):

f.i. Any Philippine Government issued ID which states the Filipino citizenship; and

f.ii. Any foreign government issued ID that show full name, date of birth, place of birth, and Filipino citizenship. DETACa

i.2. A copy of the invoice, receipt or proof of payment of the goods contained in the Balikbayan Box, if available.

ii. For Dual Filipino Citizens without a Philippine passport:

ii.1. A photocopy of the biographical page of the foreign passport where the personal information, picture and signature are indicated;

ii.2. A photocopy of proof of Filipino citizenship; and

ii.3. A copy of the invoice, receipt or proof of payment of the goods contained in the Balikbayan Box, if available.

4.2.4. The Sender shall clearly indicate in the Information Sheet that he/she allows the Consolidator, Deconsolidator, the Bureau and its Accredited Information Processor, to process any and all personal or sensitive personal information voluntarily disclosed therein.

The Consolidator shall not handle the delivery of the shipment without signing the Data Privacy Consent portion of the Information Sheet.

Any information obtained in the Information Sheet shall be treated as confidential and shall be used for customs purposes only, such as during clearance of goods or investigation conducted by the Bureau for possible violation of customs laws, rules and regulation.

4.2.5. For purposes of compliance with the Data Privacy Act of 2012, the collection and processing of personal data pertaining to the Sender shall be the responsibility of the Deconsolidator, including the collection of personal data by the Consolidator on its behalf.

4.2.6. The Information Sheet and required attachments shall be submitted to the Consolidator who shall assign a unique single Tracking Number for every shipment of the Sender, regardless of the number of boxes sent by a single Sender.

4.2.7. The Consolidator shall fill out Section D of the Information Sheet and electronically forward the scanned Optical Character Recognition (OCR) PDF copies of the complete set of the Information Sheet with the required attachments, simultaneously to the Deconsolidator and to the Bureau's AMS thru the VASP.

4.2.8. For consolidated shipments by sea, the shipping line prior to loading of containers onto the vessel, shall require a Certificate of Compliance (Annex "B") from the consolidator, relative to the requirements stated in Section 4.2.7 of this Order.

SECTION 5. Lodgement of Goods Declaration.— To expedite the cargo clearance process, the Deconsolidator, upon filing of the goods declaration with the Informal Entry Division (IED) or its equivalent unit, must submit the soft copy of the Information Sheet details using the prescribed format in Annex "C", together with the following documentary requirements:

a. Master ocean bill of lading (MBL) or master airway bill (MAWB) duly endorsed by the shipping agent, airline or air carrier, respectively;

b. Consolidated Cargo Manifest;

c. Individual HBL or HAWB duly endorsed by Deconsolidator;

d. Accomplished Information Sheet duly signed by the Sender, Consolidator and Deconsolidator, and page 5 (Annex "D") thereof;

e. Photocopy of any documents containing the Qualified Filipino's citizenship, full name (First Name, Middle Name, Surname & Suffix),date of birth and place of birth, including:

e.1. Pertinent page of the Philippine passport with personal information, picture and signature or in case of dual Filipino citizen without Philippine passport, photocopy of foreign passport with personal information, picture and signature plus copy of proof of dual Filipino citizenship;

e.2. Permanent Resident ID or equivalent document in other countries (e.g.,Green Card, IQAMA);

e.3. Overseas Employment Certificate (OEC)/OWWA Card;

e.4. Work Permit;

e.5. Unified Government ID issued by the Department of Labor and Employment (DOLE);and

e.6. Any other equivalent document (except Birth Certificate):

e.i. Any Philippine Government issued ID which states the Filipino citizenship; and

e.ii. Any foreign government issued ID that show full name, date of birth, place of birth, and Filipino citizenship.

f. Invoice, receipt or equivalent document covering the goods contained in the Balikbayan Box, if available; and

g. Other documents as may be required by the Bureau.

Based on the Information Sheets submitted in advance by the Consolidator, the COO III shall conduct a determination whether a Sender is qualified to avail of the tax and duty exemption under the De Minimis scheme or of the privilege under Section 800 (g) of the CMTA and for the expedited clearance of his Balikbayan Box/es.

SECTION 6. Cargo Clearance Procedures.— Until such time that the Bureau has implemented an electronic processing system for clearance of consolidated shipments of Balikbayan Boxes, cargo clearance shall be governed by the following procedures:

6.1. The Deconsolidator shall lodge separate informal entries for Balikbayan Boxes falling under each type of availment i.e.,De Minimis,Section 800 (g) of the CMTA or not qualified for availment, on a per container basis in a given consolidated shipment.

Example: One MBL covering two containers. Separate informal entries shall be filed for every type of availment for each container.

6.2. The individual HBLs or HAWBs together with the Information Sheets which shall serve as the packing lists and invoices, and all other documentary requirements in Section 5 of this Order shall be attached to the goods declaration. aDSIHc

6.3. The IED or its equivalent unit shall verify the completeness of the submitted documentary requirements, match the submitted BL/AWB/HBL/HAWB with the Manifest System and/or Manifest Data, assign the entry number and forward the same to the Assessment Section.

6.4. The COO III shall match the declaration filed by the Deconsolidator against the Information Sheet electronically submitted by the Consolidator to check the veracity and to determine if there are inconsistencies in the information stated in the Information Sheet attached to the entry. Matching of the declaration shall be made for Balikbayan Boxes subject to alert orders, derogatory information and any other relevant information received. This is without prejudice to any risk parameters that the Bureau may establish upon automation of the clearance process of the Balikbayan Boxes.

6.5. All Consolidated Balikbayan Shipments processed under this Order shall be subject to mandatory non-intrusive inspection by, or under the supervision of, BOC personnel;

6.5.1. If the x-ray image is tagged "no suspect" and the print out thereof is stamped by the X-Ray Image Analysis Inspector with the notation "IMAGE APPEARS TO BE REGULAR," the COO III shall indicate his findings on the Informal Import Declaration and Entry Form (IIDE);assess duties and taxes and other charges due thereon, if any; affix his signature; and forward the same to the COO V; or

6.5.2. In cases where the x-ray image is tagged "suspect" and the print out thereof is stamped by the X-Ray Image Analysis Inspector with the notation "FOR VERIFICATION," the X-Ray Image Analysis Inspector shall identify and mark the portion of the container with possible violation and the COO III shall subject said portion to 100% physical examination.

6.5.3. The Deconsolidator shall request the stripping of the container to enable the conduct of 100% physical examination of the Balikbayan Boxes located in the suspected and marked portion of the container.

However, upon request of the Deconsolidator and with the approval of the District Collector, the Bureau may allow the conditional release of the container for the conduct of 100% examination of Balikbayan Boxes located in the suspected and marked portion of the container at the warehouse of the Deconsolidator subject to the following conditions:

a. The suspected image is not clear;

b. There is no derogatory information that the Balikbayan Boxes contain prohibited, restricted or regulated goods; and

c. Upon submission of an Affidavit of Undertaking by the Deconsolidator subject to existing customs laws, rules and regulations.

6.5.4. If no discrepancy is found after the conduct of 100% physical examination on the suspected and marked portion, the COO III shall assess duties, taxes and other charges due thereon, if any, affix his signature on the goods declaration and forward the same to the COO V.

6.5.5. If discrepancy is found after physical examination by the COO III, Balikbayan Box/es with violation shall be segregated and released only upon compliance with existing rules and regulations.

6.5.6. The remaining Balikbayan Boxes without violation shall be allowed continuous processing and released following the procedures set forth in Section 6.5.4 of this Order.

For purposes of transparency and notification to the consignee, the COO III who conducted the examination shall place a Notice of Inspection (Annex "E") inside the balikbayan boxes that have been inspected and shall seal said boxes with the Customs Security Tape (Annex "E").

6.6. The COO V shall review the entry documents, tariff classification, appraisal, computation of duties, taxes and other charges, affix his signature on the goods declaration and return the same to the COO III for preparation of the Order of Payment.

6.7. The COO III shall prepare the Order of Payment for the processing charges and for the duties, taxes and other charges, if any, which shall be presented to the BOC Cashier or to the In-House Bank for payment using the e2m Cash-Miscellaneous Module.

6.8. Computation of the processing charges shall be Php125.00 multiplied by the number of HBLs or HAWBs in one MBL or MAWB.

6.9. For air shipment, the goods declaration shall be forwarded by the IED to the BOC Cashier for payment of processing charges and for the duties, taxes and other charges, if any.

6.10. The Transmittal Clerk from the BOC Cashier shall forward the gate pass to the wharfinger or warehouseman for his signature to effect physical release of shipments of Balikbayan Boxes.

6.11. The COO III shall verify payment in the e2m Cash-Miscellaneous Module. After verifying that the appropriate payment has been collected, the COO III retrieves the data corresponding to the MBL of the IIDE. The COO III shall select from the e-manifest menu the operation "Manual Discharge" to perform manual write-off of the MBL.

6.12.  For shipments found in violation of this Order and other pertinent laws, the concerned COO III shall make a report of findings with the corresponding recommendation to the District Collector.

SECTION 7. Preparation of Order of Payment.— Regardless of the number of goods declaration lodged for a single MBL or MAWB, only one (1) Order of Payment (OP) shall be prepared by the COO III for that MBL or MAWB.

SECTION 8. Misdeclared Shipments.— Shipments declared as consolidated Balikbayan Boxes but are found to be otherwise shall be considered as misdeclared and subjected to seizure and forfeiture proceedings.

SECTION 9. Repealing Clause.— This CMO specifically amends or repeals previously issued CMOs which are inconsistent with the provisions herein stated. ETHIDa

SECTION 10. Effectivity.— This CMO shall take effect immediately.

(SGD.) ISIDRO S. LAPEÑA, PhD, CSEECommissioner

ANNEX A

Information Sheet

ANNEX B

Official Letterhead and Stationery of Consolidator

CERTIFICATION OF COMPLIANCE

To: Name of Shipping Line

THIS IS TO CERTIFY that the Information Sheets and other supporting documents pertaining to the shipment details below have been transmitted in a secure electronic format to the Philippine Bureau of Customs and to our duly registered designated deconsolidator, pursuant to the former's mandatory requirements.

THIS IS TO CERTIFY FURTHER, that we have an existing service contract with the deconsolidator named below.

 

Name of Consolidator (Shipper)	Complete business address and contact details	Contact person and positions/designation
Name of Deconsolidator/Agent (Consignee)	Complete business address and contact details (Philippines)	Contact person and position/designation
Name of shipping line	Vessel name and voyage number	Master bill of lading number
Container number, size and seal number	Total number of balikbayan boxes	Notify Party (if different from consignee)
Original Port and Country of Loading	Vessel departure date/time (port of loading)

 

We declare that all the information contained this Certification are true and correct and in faithful compliance with the provisions of Customs Memorandum Order No. _____ entitled "________" issued by the Philippine Bureau of Customs on ________ 2016.

We hereby hold (name of shipping line) and its general agent in the Philippines free and harmless from all liabilities and any consequences thereof arising out of this Certification.

We further authorize the (name of shipping line) to transmit this Certification to its general agent in the Philippines and the Republic of the Philippines Bureau of Customs.

Date of Certification:

Name of Consolidator:

Printed name and signature of Consolidator/Authorized Representative:

ANNEX C

Information Sheet Details

FILE NAME CONVENTION: + "BB" + + .xlsx

All information must be completely filled out. Only fields with asterisk (*) are required to be filled out for the De Minimis availment.

INFORMATION SHEET DETAILS:

1. Date Declaration Lodged

2. MBL/MAWB

3. Tracking No.

A. SENDER INFORMATION

4. Nature of Availment ("IB" — Balikbayan/ "ID" — De Minimis/"NA" — None)

5. Number of Availment

6. Type of Sender

7. Business Name*

8. Family Name*

9. Given Name*

10. Middle Name*

11. Suffix*

12. Contact No.*

13. Email Address*

14. Philippine Passport Number

15. Date Issued (mm/dd/yyyy)

16. Expiry Date (mm/dd/yyyy)

17. Place Issued

18. Address Abroad*

19. Philippine Address*

20. Total Value (Php)*

B. PHILIPPINE-BASED RECIPIENT

21. Family Name*

22. Given Name*

23. Middle Name*

24. Suffix*

25. Contact Number*

26. Email Address*

27. Philippine Address*

28. Relationship to Sender

29. Total Number of Boxes cSEDTC

30. Date Signed (mm/dd/yyyy)*

D. n      SHIPMENT & TRANSPORT INFORMATION

31. Mode of Shipment (AIR/SEA)*

32. Shipment Reference/Load No.*

33. Name of Deconsolidator*

34. Address*

35. Contact No*

36. Email Address*

37. Name of Consolidator*

38. Address*

39. Contact No*

40. Email Address*

41. Total No. of Boxes*

42. Box/es Measurement (Cubic Meter)*

43. Total Gross Weight (kgs)*

44. Total Net Weight (kgs)*

45. Original Port of Loading*

46. Original Country of Loading*

47. Total Insurance*

48. Total Freight*

E. ARRIVAL DETAILS

49. Name of Vessel/Aircraft*

50. Registry No.*

51. Voyage or Flight No.*

52. Port of Last Call*

53. Departure Date (mm/dd/yyyy)*

54. Port Code of Discharge*

55. Date of Arrival (mm/dd/yyyy)*

56. Container No.*

57. House BL*

58. Other Information

ANNEX D

FOR OFFICIAL USE ONLY

Description	Quantity	Dutiable	Tariff	Rate of	Foreign	Peso
TOTAL

Date of Physical Examination, if any:	:_____________
Number of Boxes examined, if applicable:	:_____________

SUMMARY OF CHARGES

 

Customs Duty
VAT
Excise Tax
Processing Charge
Documentary Stamp
Legal Research Fee
Other Charges
Surcharge
TOTAL
COO III __________________________	DATE
COO V __________________________	DATE

 

To be used if more space is needed:

 

ANNEX E

Baggage Inspection Form

 

n   Note from the Publisher: Copied verbatim from the official copy. Irregular numerical sequence.