May 4, 2012

CUSTOMS MEMORANDUM ORDER NO. 007-12

 

1.0 Scope

This Order shall cover all Export Declaration SAD lodged electronically by registered exporters to the (BOC) E2M Automated Export Declaration System (AEDS) thru accredited VASPs, whether filed at the Export Divisions of the Collection Districts, including subports, the Export Coordinating Division (ECD) for provincial loadings or at the One-Stop Export Documentation Centers (OSEDCs).

2.0 Definition of Terms and Acronyms

a. Registered Exporters — Companies or individuals duly accredited as bona fide exporters by the Board of Investments, Freeport Zone Authorities (e.g., AFAB, CDC, SBMA, etc.), Philippine Economic Zone Authority (PEZA), the Bureau of Export Trade Promotion (BETP), the Philippine Exporters Confederation, Inc. (PHILEXPORT) and other government agencies as may be authorized by the Commissioner of the Bureau of Customs;

b. One-time Exporter — an individual, company, corporation or partnership who has a single shipment for export covered by one bill of lading and one export declaration.

c. Automated Export Documentation System (AEDS) — The BOC system module for the receipt and processing of the Export Declaration SAD.

d. Export Declaration-Single Administrative Document (ED-SAD) — The electronic representation of the Export Declaration, in lieu of the DTI Export Declaration form which is used in the manual export declaration processes, submitted electronically to the BOC E2M AEDS.

e. VASP — Value-Added Service Provider

f. ICARE — Interim Customs Accreditation and Registration Unit.

g. RA 9853 — An Act Amending Republic Act No. 9280 or the Brokers Act of 2004.

3.0 General Provisions

3.1 Registration in the Client Profile Registration System (CPRS) of Exporters.

3.1.1 Exporters shall be accredited based on whether they are investment or export-oriented.

3.1.1.1  The Accrediting agencies for investment promotion-oriented exporters are the BOI, PEZA, CDC, SBMA, AFAB, CEZA and ZEZA, provided that garment exporters under the GTIS (Garments and Textile Import Services), except those located inside the PEZA/Freeports, shall be accredited by the Board of Investments.

3.1.1.2  The accrediting agency for export promotion-oriented exporters, as well as coffee exporters operating under the Export Development Act and the International Coffee Organization Certifying Agency is the BETP.

3.1.1.3  The accrediting authority for exporters not falling within any of the foregoing, except Customs Bonded Warehouse (CBW) operators, shall be the PHILEXPORT.

3.1.2 Submission of List of Accredited Exporters

3.1.2.1  The accrediting agency shall cause the registration of its duly accredited exporters in the BOC CPRS by submitting to the BOC through its MISTG a list, in soft and hard copies, containing the (a) company/individual name, (b) tax identification number (TIN); (c) Unique Reference Number (URN); (d) contact person; (e) Telephone Nos.; and (f) other material data of the exporter candidate for registration.

3.1.2.2  The accrediting agency shall assign a Unique Reference Number (URN) to the exporter it has accredited. The URN shall be a part of the exporter's CPRS profile, in accordance with the following convention:

Exporter Accrediting	Prefix URN Format
Agency
BOI	BOI BOI-nnnnnn
BETP	BETP BETP-nnnnnn
PEZA	PEZA PEZA-nnnnnn
CDC	CDC CDC-nnnnnn
SBMA	SBMA SBMA-nnnnnn
AFAB	AFAB AFAB-nnnnn
CEZA	CEZA CEZA-nnnnnn
ZEZA	ZEZA ZEZA-nnnnnn
PHILEXPORT	PHEX PHEX-nnnnnn

3.1.2.3  Exporters who are accredited with both export and promotion-oriented agencies shall apply for accreditation.

3.1.2.4  An exporter who is also an importer of goods shall use the same Tax Identification Number (TIN) and business address registered in the importer's CPRS profile.

3.1.3 Submission of the CPRS Profile

All exporters shall submit the required CPRS exporter profile data to the BOC E2M CPRS, thru any of the BOC-accredited VASPs. Upon submission, the CPRS exporter profile data will automatically be stored in the BOC E2M CPRS for exporters.

3.1.4 Processing and Approval of the Certificate of Registration

3.1.4.1  The authorized government agencies and PHILEXPORT shall be given access to the BOC's CPRS for the approval of the CPRS registration of their respective accredited exporters. BOC MISTG shall approve the initial CPRS registration of all other exporters during the initial year of implementation.

3.1.4.2  The approved CPRS shall be activated by the BOC MISTG. An E-mail alert notification will be sent automatically to the exporter's email address, indicating the status of the CPRS registration, i.e., stored, approved and activated.

3.1.4.3  The e-mail alert notification indicating the approval of the CPRS shall have the Certificate of Registration (CoR) as an attached document to the email. The Certificate of Registration shall indicate the Customs Client Number (CCN) and the validity of the CoR.

3.1.4.4  The BOC MISTG shall email the names of companies to their respective accrediting agencies as soon as the BOC MISTG has activated the companies' CPRS and issued the companies' respective CCN and CoR.

3.2. Validity and Renewal of the CPRS Registration of Exporters.

3.2.1 The validity of the CPRS registration of an exporter accredited by government agencies shall be determined by the government agency, i.e., to coincide with the validity of the exporter accreditation with the government agency.

3.2.2 The validity of the CPRS of exporters accredited by PHILEXPORT shall be valid for one year. The exporters shall renew their accreditation with their respective government agencies or with PHILEXPORT not later than 30 days prior to the expiration of the accreditation and/or CPRS registration.

3.2.3 Transfer of accreditation of exporters from one agency to another after end of registration period should be accompanied by clearance from the original accrediting agency.

3.3 Suspension or Termination of CPRS Registration

3.3.1 The following shall be sufficient cause(s) for the suspension or termination of an exporter's CPRS registration:

i. Expiration and failure of the accrediting agency to renew the exporter's CPRS registration;

ii. Upon notice from the accrediting agency that the exporter's accreditation has been suspended or terminated;

iii. Upon orders from the Commissioner of Customs for violation of the Customs law and its rules and regulations.

3.3.2 Upon written notification of the accrediting authority, BOC-MISTG shall cause the suspension or termination of the CPRS registration of the subject company.

3.3.3 The BOC shall provide all the accrediting agencies with the list of companies whose accreditation have been suspended or terminated by each of the accrediting agencies or the Commissioner of Customs, for their information and guidance.

3.3.4 The BOC-MISTG shall reactivate the CPRS registration of an exporter only upon written recommendation from the exporter's accrediting agency or the Commissioner of Customs, as the case may be.

3.4 Bank Reference Number (BRN)

3.4.1 The exporter shall submit a copy of the CoR to its depository bank and request for a BRN for purposes of compliance to the BOC CPRS requirements and for payment of the Documentary Stamp Fee (DSF) and any other charges as may be applicable to the processing of the ED-SAD. Importers who are issued BRNs cannot use the same BRN for their exports.

3.4.2 Upon issuance of the BRN to the exporter, the bank shall transmit to the BOC E2M the corresponding information through the PASS5.

3.4.3  Export-oriented enterprises registered either with the BOI and PEZA are exempted from the payment of the BOC/BIR DSF as provided by the implementing rules and regulations of Presidential Decree No. 930 on the simplification of export procedures and documentation.

3.5 CPRS Registration of Exporter's Authorized Representative (EAR)

3.5.1 Registered Exporter's Authorized Representative (EAR) — A registered Exporter's Authorized Representative (EAR) is a CPRS-registered Broker who is not a PRC-licensed broker, authorized by an exporter to sign and process his export declaration pursuant to RA 9853 and who was accredited through the procedures defined SAD. The EAR who lodges the ED-SAD will be the declarant for the ED-SAD lodged.

3.5.2 The following procedure shall be observed in the registration of EAR in the CPRS.

3.5.2.1  The EAR shall encode his CPRS Broker's Profile in the VASP using the internet-based system consisting of the following data:

a. Client Type — Broker

b. Nature of Business — Customs Brokerage (Ship and Aircraft)

c. Business Entity — Individual

d. Business Name — Full Name of the Exporter Represented

e. First Name — First Name of the EAR

f. Middle Name — Middle Name of the EAR

g. Last Name — Last Name of the EAR

h. Citizenship — Citizenship of the EAR

i. Address — Address of the exporter that will be represented by the EAR but the 1st line should indicate EAR.

l.  n PRC ID No. — 9999999 (i.e., default value)

m. Major Client — Information on the company that will be represented by the EAR.

The VASP system shall send the EAR's encoded profile to the BOC's e2m CPRS system for processing by BOC-ICARE.

3.5.2.2  The EAR, using the VASP system, shall print a copy of his CPRS Broker' Profile and, together with all required documents, send it to the concerned accrediting agency.

3.5.2.3  The Accrediting Agency shall endorse to the BOC-ICARE its list of all EAR applicants it seeks to register with the CPRS, together with the supporting documents which shall consist, inter alia, of the following:

i. Duly notarized Special Power of Attorney in favour of the EAR where the exporter is a natural entity or a single proprietorship;

ii. Corporate Secretary's Certificate designating the EAR as its representative, where the exporter is a duly registered corporation or partnership as required under RA No. 9280 as amended.

3.5.3 Based on the list endorsed by the accrediting agency, the BOC-ICARE shall approve the registration of the EAR as broker in the e2m CPRS within 7 working days from date of endorsement by the accrediting agency. 

3.5.4 The BOC-MISTG shall activate the profile of the EAR in the e2m.

3.5.5 Appropriate sanctions and/or penalties, such as but not limited to suspension of CPRS registration may be imposed on the EAR if he/she is found to be using his/her CPRS Broker registration for import-related transactions.

3.6 One-time Exporters

3.6.1 A one-time exporter is an individual, company, corporation or partnership who has a single shipment for export covered by one Bill of Lading and one Export Declaration. The registration of an exporter as one-time exporter shall be limited to only one exportation within 365 days from date of approval either by the BOC or by the accrediting agency concerned.

3.6.2 A one-time exporter may apply for CPRS accreditation through any of the accrediting agencies he belongs to or with PHILEXPORT following the procedures stated hereunder:

3.6.2.1  A one-time exporter shall accomplish the form for CPRS Registration for Once-a-Year Exporter.

3.6.2.2  The one-time exporter shall submit the notarized application for Once-a-Year Exporter to the BOC e2m CPRS, thru any of the BOC-accredited VASPs. Upon submission, the CPRS Once-a-year Exporter profile data will automatically be stored in the BOC e2m CPRS for once a year exporter.

3.4.2.3  The processing and approval of the Certificate of Registration shall follow the procedures under 3.1.

4.0 Payment of Export Fees or Documentary Stamp Fee (DSF)

4.1 Payment of the Documentary Stamp Fee (DSF) of P115.00 shall be done thru the auto-debit scheme of PASS5 or through the tellering module via the BOC in-house bank or the designated BOC Cashier, for payments made beyond office hours.

4.2 The exporter or his AER shall bring the printed Assessment Notice SAD to the in-house Bank or BOC Cashier for payment of the export fees or DSF.

4.3 The in-house bank shall use the Cash SAD (C-SAD) payment function in the e2m Customs System to issue an electronic payment receipt to the exporter.

4.4 Payments for the export fees or DSF made beyond the prescribed office hours to the authorized BOC Cashier at the Port of Loading shall be remitted within the day or the next banking day.

4.5 It shall be the responsibility of the exporter or the EAR to make arrangements with the bank for the automatic debiting of his account.

5.0 Cancellation of ED-SAD

5.1 ED-SAD cancellation shall be the procedure to be followed when there are changes/amendments in the shipping details after lodgement of the ED-SAD or when the shipping details (port of loading, vessel name, container number, etc.) are encoded only after lodgment of the ED-SAD.

5.2 The exporter or his authorized representative shall file a formal written request with the Collector of Customs (Attention: The Chief, Export Division) of the port of loading for authority to cancel a previously filed ED-SAD stating the reasons therefor, indicating the correct information reflected in the new ED-SAD lodged covering the same shipment for export.

The exporter shall attach to his request a printout of the verified true copy of the original ED-SAD sought to be cancelled issued by the MISTG, and the accomplished e2m SAD Cancellation Form (annex "A"), accompanied by a copy of the B/L or AWB.

5.3 Upon receipt of the application, the Chief, Export Division, shall cancel the ED-SAD subject of the request by printing in bold letters across the face thereof the word "CANCELLED", the date of cancellation and other relevant data.

He shall officially furnish the Deputy Commissioner, MISTG a certified copy of the cancelled ED-SAD to enable the latter to make the necessary adjustment in the electronic record.

5.4 In cases of provincial loading where the ED-SAD sought to be cancelled was filed and processed at the Export Coordinating Division (ECD), the application for cancellation of ED-SAD shall be filed with the Chief, ECD following the procedures prescribed herein.

5.6   n The exporter shall be allowed to lodge and file the new ED-SAD for the same export shipment in accordance with the existing regulations and procedures required under AEDS even without the previous ED-SAD first being cancelled.

5.7 If upon generation of the report from the system a particular SAD-ED is reflected as an "open account", the subject exporter or his authorized representative shall be given fifteen (15) days from the date the ED-SAD is lodged to cancel the same. Failure to do so by the exporter shall be a ground for the temporary suspension of his registration with the CPRS. Cancellation of the previous ED-SAD is not automatic.

Open Account is a SAD-ED where no report of loading has been furnished against the shipment or the SAD-ED does not have the status of "Export Released".

5.8 Upon cancellation of the overdue "open account" ED-SAD, the exporter shall request the Commissioner of Customs for the lifting of the temporary suspension supported by the approved e2m SAD cancellation form. Upon verification of the ED-SAD cancellation, MISTG shall immediately reactivate the CPRS registration of the exporter.

6.0 Transitory Provision

6.1 Lodgment of the export declaration (DTI ED form) for manual processing shall completely be phased out upon implementation of the AEDS and only ED/SAD electronically lodged to the E2M AEDS shall be processed. Only exporters and EARs registered with CPRS shall be allowed to submit EDs in the e2m Customs System.

6.2 Procedures for registration of exporters under the Customs Bonded Warehousing System shall be covered by another Customs Memorandum Order providing for the procedures for their registration into the CPRS. In the meantime, they shall be allowed to continue using their previously issued URNs until their registration into the CPRS as exporters and a new URN is issued.

6.3 Until such time that the BOC implements a fully automated 24/7 e2m export system, the BOC shall allow the loading of export shipments found to be short-shipped even without the lodgment of a new ED SAD provided that the fact of short-shipment is certified to by the BOC Trade Control Examiner (TCE) after the physical examination of the shipment. No short-shipped export shipment shall be allowed for loading using the originally approved ED-SAD without the required certification from the BOC-TCE.

7.0 Repealing Clause

Provisions or parts of CMO 49-2010 and CMO 54-2010 and other Orders and Memoranda inconsistent with this Order are hereby deemed repealed and/or modified accordingly.

8.0 Effectivity

This Order shall take effect upon its publication in newspapers of general circulation.

The Deputy Commissioner for MISTG shall subsequently issue corresponding AEDS Memoranda to clarify implementation guidelines and procedures on AEDS, for the appropriate guidance of stakeholders and others concerned.

(SGD.) ROZZANO RUFINO B. BIAZONCommissionerBureau of Customs

ANNEX A

e2m Single Administrative Document (SAD) Cancellation Form

 

n Note from the Publisher: Copied verbatim from the official document. Missing paragraph 5.5.

n Note from the Publisher: Copied verbatim from the official document. Missing items "j" and "k".

Published in The Philippine Star on May 9, 2012.