Processing of Import Commodity Clearance Applications Filed by Importers, Traders, Brokers, Indentors, and Manufacturers to Ensure Ease of Doing Business and Product Safety

April 27, 2015

DTI MEMORANDUM ORDER NO. 15-752, S. 2015

 

WHEREAS, Show Cause Orders (SCOs) were issued by the BPS to various importers applying for the Import Commodity Clearance (ICC) for violating the provisions of Department Administrative Order No. 5, series of 2008 (DAO 5:2008);

WHEREAS, due to these issued SCOs, new ICC applications were not processed by the BPS pursuant to clause 3.5 of the DAO 5:2008;

WHEREAS, the process of SCO resolution is taking some time due to the sheer number of pending SCOs and the same greatly affected numerous importers due to delays in releasing their shipments from the Bureau of Customs, costing the importers millions of pesos in demurrage;

WHEREAS, numerous ICC applications filed in 2014 and 2015 are pending and currently under various stages of the certification process such as (a) awaiting product inspection and sampling by inspection bodies; (b) awaiting test reports from testing laboratories; (c) awaiting test report evaluation by the BPS product managers; (d) awaiting issuance of the ICC itself including the new applications received averaging sixty (60) per day awaiting issuance of Certificates of Conditional Release, ICC Certificates and Exemptions;

WHEREAS, long queues of products for testing in some testing laboratories and non-payment of fees to inspection bodies as well as other administrative concerns were also observed to be contributing to the delays in the issuance of the ICC.

THEREFORE, for and in consideration of the foregoing, and in the interest of service, the Bureau of Philippine Standards is hereby directed to adopt and implement the following:

1. In resolving the SCOs, the following shall be considered and observed:

1.1. For applications involving transfer of warehouse with prior notice to the BPS, SCOs shall be resolved immediately without any penalty/fine and shall be considered closed;

1.2. For applications involving transfer of warehouse without prior notice to the BPS but product inspection and sampling has been conducted, the following shall apply:

1.2.1. If inspection and inventory report showed that the shipment is still complete/intact, SCO shall be resolved without penalty/fine and shall be considered closed.

1.2.2. If inspection and inventory report showed that the shipment is incomplete, SCO shall be resolved. Subject to the importer's compliance with the following conditions:

1.2.2.1. First offense — Reminder letter and case closed

1.2.2.2. Second Offense — Stern warning

1.2.2.3. Third Offense — Forfeiture of the Surety Bond.

1.2.3. The SCO resolution is subject to the availability of the test report/s. If the test report showed compliance, the above penalties shall not apply. If the test report showed non-compliance, product recall shall be required in addition to the above penalties.

1.3. For applications involving transfer of warehouse without prior notice to the BPS and inspection, inventory and sampling is yet to be conducted, the product inspection, inventory, sampling and testing shall be conducted, and:

1.3.1. If shipment is complete, clause 1.2.1 above shall apply;

1.3.2. If shipment is incomplete, clause 1.2.2 above shall apply; and

1.3.3. If the test report shows compliance with the standards, no penalty shall be applied.

1.4. For applications involving importations intended for the importer's own use, the SCO shall be resolved immediately without any penalty/fine and shall be considered closed. Certificate of Exemption shall be issued and importers assume full responsibility for product safety.

2. All new applications with new Bill of Ladings shall be processed and evaluated to enshrine compliance to rules and issuance of Show Cause shall be issued in justifiable cases for the interest of public safety.

3. Processing of new ICC applications under new Bill of Lading of the importer with pending importation-related case before the DTI, BOC or other government institutions, shall be subject to the following:

3.1. For administrative related cases, ICC application shall be accepted and processed;

3.2. For criminal related cases such as but not limited to smuggling, forgery, bribery, falsification of public documents, and other graft and corrupt acts and practices, ICC applications shall not be accepted until such time that the case is resolved in favour of the company. Otherwise, the company shall be blacklisted by the BPS.

4. With one hundred percent identical specification and description, six (6) months validity of test reports shall be applied to the following products:

4.1. Pneumatic Tires

4.2. Plywood

4.3. Ceramic Tiles

4.4. Circuit Breaker

4.5. Flat Glass

4.6. Electric Fan

5. All ICC applications for the above-mentioned products pending before the BPS but with test report/s from previous importation covered by the validity period stated above shall be processed and the requisite ICC certificate and stickers shall be issued. However, product testing shall still be conducted and product recall shall be required if the product test report will show non-compliance with the requirements of the standards.

6. The new ICC applications for the above-mentioned products with attached valid test reports shall be processed subject to its compliance with other ICC application requirements.

7. Encourage the importers to immediately settle their unpaid inspection fees with the BPS designated Inspection Bodies.

8. To facilitate faster approval of the Certificate of Conditional Release, Certificate of Exemptions and ICC Certificates, four (4) authorized signatories shall be designated.

9. All employees and officials of BPS, inspection bodies and testing laboratories, as well as all importers, traders, brokers, indentors and manufacturers are reminded and encouraged to police their own ranks and that they shall report any and all forms of delay for no good reasons. In addition, any and all forms of bribery and graft and corrupt practice and act whether directly or indirectly solicited by any parties shall also be reported.

 For this purpose, the DTI hotline and public assistance desk telephone number (02) 751.3330 and cellphone number 0917.8343330 and my cellphone number 0917.8898464 shall be posted in BPS frontline counters to receive such reports for quick response and action.

10. No officials and employees of BPS, inspection bodies and testing laboratories, or any broker and indentor shall take advantage of this Order intended to facilitate ease in doing business in BPS and make representation with importers, traders, brokers, indentors, manufacturers, inspection bodies and testing laboratories for a consideration in any form and value. Forthwith, the misrepresentations are not authorized by the Undersecretary and shall be reported immediately for action as stated herein.

11. This Order shall take effect immediately and may be amended or revised as and when necessary.

(SGD.) ATTY. VICTORIO MARIO A. DIMAGIBAUndersecretary, CPG

Published in The Philippine Daily Inquirer on April 29, 2015.