Rules and Regulations Implementing the Provisions of Republic Act No. 9280, the "Customs Brokers Act of 2004"

March 8, 2005

PROFESSIONAL REGULATORY BOARD FOR CUSTOMS BROKERS RESOLUTION NO. 03-05

RULES AND REGULATIONS IMPLEMENTING THE PROVISIONS OF REPUBLIC ACT NO. 9280, THE "CUSTOMS BROKERS ACT OF 2004"

Pursuant to Section 7(a), Article II and Section 37, Article V of Republic Act No. 9280, known as "The Customs Brokers Act of 2004" the Board hereby promulgates the following rules and regulations. HDTSIE

RULE I

Title, Declaration of Policy, Objectives and Definition of Terms

SECTION 1. Title. — These rules and regulations shall be referred to as the "RULES AND REGULATIONS IMPLEMENTING THE PROVISIONS OF REPUBLIC ACT NO. 9280", known as the "CUSTOMS BROKERS ACT OF 2004", in brief, referred to as "THE IRR OF THE CUSTOMS BROKERS ACT OF 2004."

SECTION 2. Declaration of Policy.— It is the policy of the State to give priority attention and support to professionalizing the practice of customs brokers profession in the Philippines which will be beneficial to the country in general and to the economy in particular, through the sustained development of a reservoir of customs brokers whose competence has been determined by honest and credible licensure examination and whose standards of professional service and practice are internationally recognized, world class, and globally competitive.

Pursuant to the national policy, the government in coordination with the accredited professional organization of customs brokers, shall jointly provide a program to set up and promote a climate conducive to the practice of the profession and maximize the capability and potential of our Filipino Customs Brokers. 2005cdasia

This "IRR of the Customs Brokers Act of 2004" shall be interpreted, construed and carried out in the light of the Declaration of Policy found in Section 2, Article I of Republic Act No. 9280, as stated above. cAaDHT

SECTION 3. Objectives.— This "IRR of the Customs Brokers Act of 2004" provides for and shall govern:

(a) The standardization and regulation of customs administration education;

(b) The examination and registration of customs brokers, and

(c) The supervision, control and regulation of the practice of customs broker profession

SECTION 4. Definition of Terms.— For purposes of this "IRR of Customs Brokers Act of 2004",the following terms are hereby defined:

(a) "Act" — shall refer to Republic Act 9280.

(b) "Customs Broker" — is any person who is a bonafide holder of a valid Certificate of Registration and a valid Professional Identification Card issued by the Professional Regulatory Board and the Professional Regulation Commission pursuant to R.A. No. 9280 and R.A. No. 8981. aCHDST

(c) "Commission" — as used in R.A. No. 9280, shall refer to the Professional Regulation Commission created by R.A. No. 8981, known as the "PRC Modernization Act of 2000".

(d) "Board" — as used in R.A. No. 9280, shall refer to the Professional Regulatory Board for Customs Brokers created by the same law.

(e) "Board Chairman" — shall refer to Chairman, Professional Regulatory Board for Customs Brokers.

(f) "Commission Chairperson" — shall refer to the Chairperson, Professional Regulation Commission.

(g) "CPE" — shall refer to Continuing Professional Education.

(h) "CHED" — shall refer to Commission on Higher Education.

(i) "APO" — (accredited professional organization) shall refer to any organization recognized or accredited by the Board and the Commission pursuant to Sec. 31, Art. IV of R.A. No. 9280 or any professional organization of Customs Brokers which now or hereinafter may be recognized by the Board and the Commission in accordance with the foregoing provision.

(j) "Member in good standing" — shall refer to a member-customs broker who has paid his registration fees, who is up-to-date in payment of the annual membership dues and who is not expelled or not suspended from the APO.

RULE II

Professional Regulatory Board for

Customs Brokers

SECTION 5. Creation and Composition of the Professional Regulatory Board for Customs Brokers. — There is hereby created a Professional Regulatory Board for Customs Brokers, hereinafter referred to as the Board, under the supervision and administrative control of the Professional Regulation Commission, hereinafter referred to as the Commission, to be composed of a chairman and two (2) members who shall be appointed by the President of the Philippines from among a list of three (3) recommendees for each position submitted by the Commission from a list of five (5) nominees for each position submitted by the accredited professional organization of customs brokers. The new Board shall be constituted within three (3) months from the effectivity of this R.A. No. 9280. Upon effectivity of R.A. No. 9280, the incumbents whose terms have not yet expired or who are on holdover status shall be allowed to serve the unexpired portion of their terms until the new and first Board shall have been constituted, pursuant to R.A. No. 9280. EHTISC

SECTION 6. Scope of Practice of Customs Brokers Profession.— The practice of Customs Brokers Profession involves any of the following services rendered to client importer and exporter consisting of:

a. Consultation on matters relating to tariff and customs laws, the rules and regulations thereof, and all other laws, their rules and regulations affecting or in connection with activities of importation and exportation;

b. Preparation of customs requisite documents for import and export;

c. Declaration of customs duties and taxes;

d. Preparation, signing, filing, lodging and processing of import and export entries and documents required to be filed at the Bureau of Customs and other government agency, under the TCCP and other existing laws; aCSHDI

e. Representing importers and exporters before any government agency and private entities in cases related to valuation and classification of imported articles; and

f. Rendering of other professional services in matters relating to customs and tariff laws, its procedures and practice:

Provided, that this section shall not be construed to affect or prevent the practice of any other lawfully recognized and regulated profession: Provided, further, that importers and exporters doing business as natural persons or under sole proprietorships may perform activities enumerated under letters (b),(c),(d),and (e) but may not delegate these to their employees or other persons except to registered and licensed customs brokers: Provided, furthermore, that this provision allowing natural persons or sole proprietorships may also cover exports of juridical exporters belonging to priority export industries as defined by the Export Development Council in line with the Philippine Export Development Plan.

A Registered and Licensed Customs Broker shall be considered in the practice of the profession if the nature and character of his/her employment in private enterprises requires professional knowledge in the field of customs and tariff administration.

He/she is also deemed in the practice of customs broker profession if he/she teaches customs and tariff administration subjects in any university, college or school duly recognized by the government.

SECTION 7. Powers and Functions of the Board.— The Board shall have the following powers and functions:

(a) Promulgate, administer and enforce this "IRR of the Customs Brokers Act of 2004", including the Code of Ethics and Code of Technical Standards for customs brokers necessary for carrying out the provisions of R.A. No. 9280;

(b) Supervise and regulate the licensure examination, registration and practice of customs broker profession;

(c) Determine and evaluate the qualifications of the applicants for registration with or without the prescribed licensure examinations and for the issuance of special or temporary permits; aAcDSC

(d) Prepare and modify the questions for examination and prescribed the syllabi of the subjects for examination and their relative weights;

(e) Register successful examinees in the licensure examination and issue their corresponding Certificates of Registration and Professional Identification Cards;

(f) Issue special or temporary permits to foreign customs brokers for specific projects and for a specific duration of time;

(g) Look into the conditions affecting the practice of customs broker profession, adopt measures for the enhancement of the profession and the maintenance of high professional, technical and ethical standards, and conduct ocular inspection of places where customs brokers practice their profession;

(h) In coordination with the CHED, examine the prescribed facilities of universities or colleges seeking permission to open the course or program of customs administration in order to ensure that standards and essential requirements for a qualified dean and faculty and adequate budget are properly complied with and maintained;

(i) Investigate violations of R.A. No. 9280, this "IRR of Customs Brokers Act of 2004", and the Code of Ethics and the Code of Technical Standards for Customs Brokers;

(j) Issue subpoena and subpoena duces tecum to secure the attendance of respondents or witnesses or the production of documents relative to the investigation conducted by the Commission;

(k) Prepare guidelines for the CPE in coordination with the accredited professional organization; and

(l) Perform such other powers, functions and duties as may be necessary to effectively implement R.A. No. 9280.

The policies, resolutions, rules and regulations, orders or decisions issued or promulgated by the Board shall be subject to the review and approval of the Commission. However, the Board's decision, resolution or order rendered in an administrative case shall, unless appealed to the Commission, become final and executory after fifteen (15) days from receipt of notice of judgment or decision.

SECTION 8. Qualifications of the Chairman and Members of the Board.— The Chairman and members of the Board must, at the time of their appointment:

a. Be a citizen and resident of the Philippines;

 

b. Be of good moral character and must not have been convicted of any crime involving moral turpitude; CHATcE

c. Be a member in good standing of the accredited professional organization of customs brokers;

d. Be a graduate of Bachelor's Degree in Customs Administration or a holder of a Master's Degree in Customs Administration conferred by a college or university duly recognized by the government, or a registered and licensed customs broker before the effectivity of R.A. No. 9280;

e. Be a registered and licensed customs broker with a valid Certificate of Registration and a valid Professional Identification Card with at least ten (10) years of experience prior to his appointment;

f. Not be a member of the faculty, whether full-time or part-time, of any school, college or university where a regular and/or review course in customs administration is taught, nor shall have any pecuniary in such institution; and DTAaCE

g. Not be an incumbent officer of the accredited national organization of customs brokers.

SECTION 9. Term of Office.— The members of the Board shall hold office for a term of three (3) years or until their successors shall have been appointed and qualified. They may, however, be reappointed for a second term. Any vacancy in the Board shall be filled for the unexpired portion of the term only. Each member shall take an oath of office prior to the assumption of duties.

The incumbent chairman and members shall continue to serve until their replacements shall have been appointed and qualified.

SECTION 10. Compensation and Allowance of the Chairman and Members of the Board.— The Chairman and Members of the Board shall receive compensation and allowances comparable to the compensation and allowances received by the Chairman and Members of other professional regulatory boards.

SECTION 11. Suspension and Removal of the Chairman and Members of the Board.— The chairman or any member of the Board may be suspended or removed by the President of the Philippines upon recommendation of the Commission for neglect of duty, abuse of power, oppression, incompetence, unprofessional, unethical, immoral or dishonorable conduct, commission or toleration of irregularities in the conduct of examination or tampering of the grades therein, or for any final judgment or conviction of any criminal offense involving moral turpitude by the court after having been given the opportunity to defend himself in proper administrative investigation. IcDCaS

The power of the Commission under Sec. 7(s) of R.A. No. 8981 may be suppletorily applicable to the exercise by the Commission of the foregoing provisions.

SECTION 12. Supervision by the Board, Custodian of its Records, Secretariat and Support Services.— The Board shall be under the general supervision and administrative control of the Commission.

The Commission shall keep all records of the Board such as:

a. Applications for examination

b. Examination papers and results

c. Minutes of deliberations

d. Administrative and other investigative cases involving customs brokers

The Commission shall designate the secretary of the Board and shall provide the secretariat and other support services to implement the provisions of R.A. No. 9280 subject to the usual government accounting and auditing rules and regulations.

SECTION 13. Annual Report.— The Board shall, at the close of each calendar year, submit an annual report to the Commission, giving a detailed account of its proceedings and accomplishments during the year and recommending measures to be adopted with the end in view of upgrading and improving the conditions affecting the practice of customs broker profession in the Philippines.

RULE III

Licensure Examination and Registration

SECTION 14. Licensure Examination. — Every applicant seeking to be registered and licensed as professional customs broker shall undergo an examination as provided for in R.A. No. 9280. Examinations for the practice of customs broker profession in the Philippines shall be given by the Board at least once every year in such places and dates as the Commission may designate in accordance with the provisions of Republic Act No. 8981. aEHAIS

SECTION 15. Scope of Examination.— A written examination shall be given to the licensure applicants for customs broker profession, which shall include, but not limited to, the following:

(a) Customs Laws and Implementing Rules and Regulations;

(b) Tariff Laws and International Trade Agreements;

(c) Practical Computation of Customs Duties, Taxes and Other Charges;

(d) Documentations, Professional Ethics, Customs Procedure and Practices; and

(e) Warehousing and Cargo Handling Operations. DTEHIA

To conform with technological and modern changes, the Board may recluster, rearrange, modify, add to or exclude any of the foregoing subjects as the need arises.

SECTION 16. Qualifications of Applicants for Examinations.— In order to be admitted to the licensure examination for customs broker profession, a candidate shall, at the time of filing his/her application, establish to the satisfaction of the Board that he has complied with the following qualifications:

(a) he/she is a citizen of the Philippines or of a foreign country qualified to take the examination as provided in the reciprocity provision of R.A. No. 9280 and Sec. 25, Rule III of this "IRR of the Customs Brokers Act of 2004".

(b) he/she is a holder of a Bachelor's Degree in Customs Administration: Provided, that a holder of a master's degree in Customs Administration shall be allowed to qualify within five (5) years from the effectivity of this R.A. No. 9280; and

(c) he/she is of good moral character and must not have been convicted of any crime involving moral turpitude.

SECTION 17. Ratings in the Examination.— In order that a candidate may be deemed to have successfully passed the examination, he/she must have obtained an average of at least seventy-five percent (75%) in all subjects, with no grade below sixty percent (60%) in any subject.

SECTION 18. Release of the Results of Examination.— The Board shall release the results of the Licensure Examination within ten (10) days from the last day of the examination.

SECTION 19. Issuance of the Certificate of Registration and Professional Identification Card. — A Certificate of Registration shall be issued to examinees who pass the licensure examination for customs brokers profession subject to payment of fees prescribed by the Commission. The Certificate of Registration shall bear the signature of the Chairperson of the Commission and the Chairman and members of the Board, indicating that the person named therein is entitled to practice the profession as customs broker with all the benefits and privileges appurtenant thereto; Provided, that he/she shall be allowed to practice the profession in any collection district without the need of securing another license from the Bureau of Customs. The Certificate of Registration shall remain in full force and effect until revoked or suspended in accordance with R.A. No. 9280.

A professional Identification Card bearing the registration number, date of issuance, expiry date, duly signed by the Chairperson of the Commission, shall likewise be issued to every registrant upon payment of the required annual registration fees for three (3) years. The Professional Identification Card shall be renewed every three (3) years thereafter upon satisfying the requirement of the Board and the Commission.

SECTION 20. Refusal to Register.— The Board shall not register and issue a Certificate of Registration to any successful examinee who has been convicted by a court of competent jurisdiction of any criminal offense involving moral turpitude or has been found guilty of immoral or dishonorable conduct after investigation by the Board, or has been declared to be of unsound mind. The reason for the refusal shall be set forth in writing. The refusal to register and the period for the deferment of the registration if the offense or act committed does not call for indefinite period and/or perpetual deprivation of the chance to register shall be incorporated in the records of the Board.

SECTION 21. Revocation or Suspension of the Certificate of Registration, Professional Identification Card, or Cancellation of Temporary/Special Permit. — The Board shall have the power, upon proper notice and hearing, revoke the Certificate of Registration and Professional Identification Card of a professional customs broker, to suspend him/her from the practice of the profession or cancel his/her temporary/special permit for any of the causes or grounds under Sec. 20 of R.A. No. 9280, for unprofessional or unethical conduct, malpractice or violation of any of the provisions of R.A. No. 9280, this "IRR of the Customs Brokers Act of 2004", and the Code of Ethics and the Code of Technical Standards for Professional Customs Brokers. ADaSEH

SECTION 22. Reinstatement, Reissuance or Replacement of Certificate of Registration, Professional Identification Card and Temporary/Special Permit.— The Board, may, after two (2) years from the date of revocation of Certificate of Registration, reinstate any revoked Certificate of Registration and reissue a suspended Professional Identification Card.

The Board shall issue a resolution, subject to approval by the Commission, in granting a petition for reinstatement to the practice of the profession. cSEAHa

A new Certificate of Registration and Professional Identification Card or temporary/special permit may be issued to replace lost, destroyed or mutilated ones subject to such rules as may be promulgated by the Board.

SECTION 23. Roster of Professional Customs Brokers.— The Board in coordination with the accredited professional organization shall prepare, update and maintain a roster of professional customs brokers which shall contain the names of registered professional customs brokers, their residence and office addresses, dates of registration or issuance of certificates, and other data which the Board may deem pertinent. EaHIDC

 

The roster shall be open to the public, copies of which shall be made available to any party, as may be deemed necessary.

SECTION 24. Issuance of Special/Temporary Permit.— Upon application and payment of the required fees, and subject to the approval of the Commission, the Board may issue special or temporary permits to professional customs brokers from foreign countries whose services are urgently needed in the absence and/or inadequacy of local professional customs brokers for the purpose of promoting or enhancing the practice of the profession in the Philippines.

SECTION 25. Foreign Reciprocity. — No foreign professional customs broker shall be admitted to the licensure examination or be given a Certificate of Registration and Professional Identification Card and be entitled to any of the privileges under R.A. No. 9280 unless the country of which he/she is a citizen specifically allows Filipino professional customs brokers to practice within its territorial limits on the same basis as the citizens of such foreign country.

The Resolution of the Commission governing the practice of foreign professionals in the Philippines or a Board Resolution thereon, shall be applicable to the above-stated provision or rule.

RULE IV

Practice of Customs Broker Profession

SECTION 26. Oath.— All successful examinees qualified for registration shall be required to take an oath of profession before any member of the Board or any Commission officer or government official authorized by the Commission or any person authorized by law to administer oaths prior to entering in the practice of customs broker profession.

SECTION 27. Acts Constituting the Practice of Customs Broker Profession. — Any single act or transaction embraced within the provisions of Section 6, Art. II of R.A. No. 9280 and of Section 6, Rule II of this "IRR of the Customs Brokers Act of 2004" constitutes an act of engaging in the practice of customs broker profession. Import and export entry declarations shall be signed only by a customs broker under oath based on the covering documents submitted by the importers: Provided, that importers and exporters doing business as natural persons or with business names as sole proprietors are allowed to prepare, sign, file and process their import and export entry declarations: Provided, further, that they may also represent themselves before any government agency on issues involving customs and tariff matters and this privilege is strictly personal to such importers and exporters and may not be delegated to third parties except registered and licensed customs brokers: Provided, furthermore, that this provision allowing natural persons or sole proprietors shall also apply to exports of juridical exporters belonging to priority export industries as defined by the Export Development Council in line with the Philippine Export Development Plan.

SECTION 28. Prohibition Against the Unauthorized Practice of Customs Broker Profession. — No person shall practice or offer to practice the customs broker profession in the Philippines or offer himself/herself as customs broker or use the title, word, letter, figure, or any sign tending to convey the impression that one is a customs broker, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession unless he/she has satisfactorily passed the licensure examination given by the Board, except as otherwise provided in R.A. No. 9280, and is a holder of a valid Certificate of Registration and a valid Professional Identification Card or a valid special/temporary permit duly issued to him/her by the Board and the Commission.

SECTION 29. Prohibition Against Corporate Practice.— The practice of customs broker is a professional service, admission to which shall be determined upon the basis of individual and personal qualifications. No firm, company or association may be registered or licensed as such for the practice of customs broker profession: Provided, that this provision shall apply only for the purpose of licensing individual professional customs brokers by the Professional Regulatory Board for Customs Brokers as approved by the Professional Regulation Commission. DHcSIT

SECTION 30. Prohibition Against Financing Activities by the Customs Brokers.— No customs broker shall advance and finance on behalf of their client-importers the payment of duties and taxes, arrastre charges, wharfage dues, storage fees and other port charges.

SECTION 31. Accredited Professional Organization.— All professional customs brokers shall have one national organization, which shall be recognized by the Board and by the Commission as the one and only accredited professional organization of customs brokers. A professional customs broker duly registered with the Board shall automatically become a member of the accredited professional organization of customs brokers and shall receive the benefits and privileges appurtenant thereto. Membership in the accredited professional organization of customs brokers shall not be a bar to membership in other associations of customs brokers. IcHTED

The recognition of the accredited professional organization shall be based upon a Board Resolution subject to approval by the Commission, directing the issuance of a certificate of accreditation pursuant to the above-stated rule and PRC Res. No. 179, series of 2004 upon payment of the prescribed fee therefor.

SECTION 32. Code of Ethics for Customs Broker Profession. — The Board shall adopt and promulgate the Code of Ethics and Code of Technical Standards for Registered and Licensed Customs Brokers which shall be prescribed and issued by the accredited professional organization.

A Board Resolution, subject to approval by the Commission, shall be issued in the adoption and promulgation of the said Codes.

SECTION 33. Vested Rights — Automatic Registration of Customs Brokers. — All customs brokers who are registered and licensed at the time R.A. No. 9280 takes effect shall automatically be registered with the Board and the Commission.

RULE V

Penal and Final Provision

SECTION 34. Penal Provisions. — Any violation of R.A. No. 9280, including violation of this "IRR of the Customs Brokers Act of 2004", shall be meted the penalty of a fine of not less than fifty thousand pesos (P50,000.00) nor more than five hundred thousand pesos (P500,000.00) or imprisonment of not less than six (6) months nor more than six (6) years, or both such fine and imprisonment upon the discretion of the court.

SECTION 35. Appropriations. — The Chairperson of the Professional Regulation Commission (PRC) shall immediately include in the Commission's programs the implementation of R.A. No. 9280 the funding of which shall be included in the Annual General Appropriations Act and thereafter.

The amount necessary to carry out the initial implementation of R.A. No. 9280 shall be against the current year's appropriation of the Commission. Thereafter, such sums as may be necessary for the continued implementation of R.A. No. 9280 shall be included in the General Appropriations Act.

SECTION 36. Transitory Provision. — The existing Board of Customs Brokers shall continue to function in the interim until such time that the new Board shall have been constituted pursuant to R.A. No. 9280.

SECTION 37. Implementing Rules and Regulations.— The Board, subject to the approval by the Commission, in coordination with the accredited professional organization, shall issue and promulgate the "IRR of the Customs Brokers Act of 2004" which shall be effective after fifteen (15) days following its full and complete publication in the Official Gazette or any newspaper of general circulation in the Philippines.

SECTION 38. Separability Clause.— If any clause, sentence, paragraph or part of this "IRR of the Customs Brokers Act" shall be declared unconstitutional or invalid, such judgment shall not affect, invalidate or impair any other part thereof.

SECTION 39. Repealing Clause. — Any provisions of the rules and regulations, codes, orders, resolutions, measures, policies or parts thereof issued and promulgated pursuant to P.D. No. 34, Sections 3401 to 3409, and Sections 3505, 1305 and part of Section 1301 of R.A. No. 1937, P.D. No. 223 (as amended), R.A. No. 8981 and other laws, decrees, executive orders, or letters of instructions which are inconsistent with this Board Resolution, known as the "IRR of the Customs Brokers Act of 2004", are hereby superseded, repealed or amended accordingly. DSHcTC

The Board, in coordination with the accredited professional organization and other interested parties shall formulate measures that would hasten implementation, provide safety measures and assure ease of compliance with R.A No. 9280 and this "IRR of the Customs Brokers Act of 2004".

SECTION 40. Effectivity.— This "IRR of the Customs Brokers Act of 2004" shall take effect after fifteen (15) days following its full and complete publication in the Official Gazette or in any major newspaper of general circulation in the Philippines.

Done in the City of Manila, Philippines, this 8th day of March, 2005.

Published in Manila Standard on March 11, 2005

Date of effectivity: March 27, 2005

ALBERTO D. LINAChairman

(SGD.) CONSTANTINO L. CALICAMember

(SGD.) ANTHONY A. CRISTOBALMember

EDGARDO B. ABONMember

(SGD.) RODOLFO R. SALAZARMember

ATTESTED:

(SGD.) CARLOS G. ALMELORSecretary

APPROVED:

(SGD.) LEONOR TRIPON-ROSEROChairperson

(SGD.) AVELINA A. DE LA REACommissioner

(vacant)Commissioner