Automation of the Application and Issuance of the

Automation of the Application and Issuance of the SPS Import Clearance Francis Norman Lopez President

Agenda • Introduction • BOC e 2 m Import Procedures • DA Automated SPS Import Clearance • National Single Window • Moving Forward • Q&A

About Inter. Commerce • IT, Value Added Network Services company – with more than 22 years experience in B 2 B transactions, and – more than 12 years in e. Customs Services – accredited as EDI VAN in 1998 and now Accredited by Customs, PEZA, Clark and Subic Freeports, the Board of Investment and the Department of Agriculture: BAI, BPI and BFAR - as Value Added Service Provider (VASP) • A distributor of Global Exchange Services – GXS, the largest global B 2 B e. Commerce services provider • Member, Pan Asian e. Commerce Alliance (PAA) • Independent IT Company - No Affiliation with any logistics company (broker, forwarder, warehouse operator), thus no potential conflict of interest with client logistics providers, and ensuring data confidentiality and integrity PEZA • Inter. Commerce. . . YOUR Value Added Service Partner Local Focus – Global Reach ! Department of Agricultur BAI BPI BFAR

Pan Asian e. Commerce Alliance § Established in 2000 § 12 Members VASP accredited by respective Customs authorities; INS – 12 th Member § Legal framework, PKI mutual recognition, and secure cross border transaction service

Import Entry Workflows – e 2 m IAS Application to Import Clearance DA: BAI, BPI, BFAR Airline/ Shipping Line Forwarder/ Consolidator IED, Import Entry SAD (Formal/Wrhouse) Invoice, BL/AWB Importer (BOL, GEN CTN) Internet VASP CPRS Approved COR w BOC CCN Certificate of Registration/CCN ? BRN + Auto Debit Agreement (ADA) National Single Window Manifest/BL BOC Response: Assessment Final/Temporary Broker SPS Import Clearance Data Importers’ Online Visibility: Import Entry, Assessment Statement of Settlement Of Duties and Taxes (SSDT) VASP Gateway Release Instruction Arrastre, Whse, CY-CFS BOC Final Payment Instruction (Net: duties, taxes, fees – IPF, CSF, others) Debit from Importer Account AAB Final Payment Confirmation AAB BAP/PASS 5 e 2 m IAS

Role of Value Added Service Provider VASP § Enabler for electronic transactions with Customs and other government agencies – Provide front-end ICT systems available to registered importers, exporters and designated brokers, and infrastructure and telecommunications facilities, to allow electronic transactions with back-office system of Customs and OGAs, – Conduct orientation and user training – Provide customer support and helpdesk § Adopt to global best practices to facilitate trade, particularly cross border information exchange

VASP Role in SPS IC Implementation • Inter. Commerce enabling the importers – Orientation on automated permit processes and requirements, and assistance for compliance to agency requirements – Provision of an online system (24/7) for the preparation of the permit application to agency accredited importers – Hands-on user training and initial implementation – Integration of data for other trade processes and generation of reports – Technical support and Helpdesk (8: 00 am to 10: 00 pm, Monday to Sunday)

Import Workflows – eg BAI • Accreditation of regular importer of import products regulated by DA Agencies Start SCM: PO, Proforma Invoice • Import product may require registration or be subject to laboratory tests and BFAD Certificate BAI: Import Permit Clearance • Copy of approved Import Permit submitted to supplier as a requisite prior to export (BAI) BIR: ATRIG • Ship-out date must be within 60 days after Import Clearance approval BOC: Import Entry, Release • Import Permit/Clearance and Certificate required by BIR for issuance of ATRIG (BAI) End • Import Permit/Certificate and ATRIG required by BOC for processing import entry and release of goods

BAI Import Clearance, Permit BAI Application Form Submit Application Pay Import Permit/Clearance Fee BAI Review, Process, Endorse Print Import Clearance for Approval/Signature Approve, Sign Notarize Import Clearance • Application Forms – NVQS Import Clearance – AFSD Import Permit – LSD-VBSS Permit Harmonize Forms • BAI Product Groups – Animal and Animal Products • Live animals, Animal by-products, Animal products – Feeds and Feedstuff • Feed ingredients and components, Veterinary drugs and products – Veterinary Biological Products • Cycle Time – Average 3 days Pre-Qualify Importer, Products Reduce Cycle Time • Fees – P 100, P 125, P 200, P 250 and P 500 • Other Expenses – Man-hours – Transportation – Other expenses due to delays in the approval of the permit Reduce Costs

Automated Import Permit Model • Accreditation and Registration – Importers and respective products – Online repository, database and maintenance • Electronic Processing by Agency – Automated validation of mandatory data eg only accredited importers and registered importables – Automated/online review, endorsement and approval – Autodebit payment of agency/permit fees – Online printing of approved permits with reference number and barcode

DA SPS Import Clearance - Overview BPI Plant, Plant Products BAI Live Animal BAI Animal Products Internet BAI Veterinary & Biologicals Importer, Authorized Rep/Broker DA Trade System BFAR, Fisheries and Aquatic Resources BPI, BAI, BFAR Quarantine Offices DA ITCAF (System Administrator)

Importer Procedures Registration Application • Registration with DA Agency • Online preparation, via Internet/INS • Submission of the List of Importables • Electronic submission of SPS Application • Remittance of Advances for SPS Fees to DA Agency Cashier • Receipt of BAI Response • Printing of the Approved SPS Import Clearance, Import Certificate Utilization • Send copy of SPS Import Clearance to supplier (origin) • Submit SPS IC + Certification to BIR for ATRIG • Attach SPS import Clearance doc to Import Entry Declaration

Agency Procedures Registration • Approve importer registration Processing • Automated validation of data • Approve the List of Importables • Review of application, determine other • Receipt of Advances conditions of import for SPS Fees, • Autodebit payment of SPS issuance of Official Fee Receipt • Endorsment and Approval • Agency transmits response to Importer and approved SPS data to NSW Quarantine • Quarantine Officer access to approved SPS Import Clearance • Validate SPS document vs approved SPS online, cargo • Approve clearance and release of cargo

Changes in Procedures • Use of online forms for preparation, support documents (scanned documents) attached to application, 24 / 7 • Harmonized SPS Import Clearance form for BAI, BFAR and BPI • Eliminate manual steps: – Submission of application form and support documents – Manual, over the counter payment of SPS Fees – Manual typing of NVQS Import Clearance, AFSD Import Permit, LSD-VBSS Permit and BAI Certificate for BIR ATRIG – Physical signature on document – Notarization of Import Permit • Electronic submission of approved SPS data to NSW for Customs automated validation vs import declaration • Advanced information on approved SPS Import Clearance to Quarantine Officer

Benefits • Agency – – Focus on substantive functions, less clerical tasks Faster cycle time on processing and issuance of permit Advance information to quarantine officers assigned at ports Online databases, real time reports and statistics • Importer – – Faster, predictable response time to permit applications Improved compliance to policies and procedures Less clerical task and document handling Cost savings on trade processes

Importers : Next Steps • With DA – Accreditation with respective agencies – Registration of importables for agency approval – Advances for SPS Import Clearance Fee • With Inter. Commerce – Registration for DA SPS IC Services, Online Visibility – Attend User Training of online preparation and submission of SPS Import Clearance, Online Visibility (Transactions with DA and Customs) – Advances for INS Transaction Charges

Questions and Answers Unit 2203, 88 Corporate Center Sedeno St. , Salcedo Village Makati City 1227 Telephone: +02 843 2792 Fax: +02 843 8160 Email: marketing@intercommerce. com. ph www. intercommerce. com. ph

Registry of Importers

Online Registration of Importer

List of Importables of Importers

Importer Access to Inter. Commerce

Select Web. CWS Application

Preparation of the Application for SPS

Select Agency

Confirm Importer Data

Add Purpose and Supplier Data

Add Import Shipping Data

Add Item

Add Item Details

Attach Support Documents

Submit SPS Application

Monitor Balance of Advances with Agency

Application Received by Agency

Login as Reviewer

Select Application for Review

View Details Add Conditions

Login for Endorsement to Director

Select SPS Application

View Details, Conditions and Endorse

Login as Director for Approval

Select SPS Application

View Details, and Approve

WTO Notice Back to BAI Procedures

Login as Quarantine Officer at Port

View Approved SPS Import Clearance

View SPS Details

Tag SPS as Used

Input Data on Actual Inspection

Record of Actual Inspection

Importer Registration with Inter. Commerce 1. Importer registers with Inter. Commerce online (www. intercommerce. com. ph), providing User. ID, password 2. Submit accomplished and submits Registration for CPRS and Online Visibility 3. Upon validation, Inter. Commerce activates User. ID, password With registration with Inter. Commerce, importers have FREE access to e. Customs Services: CPRS preparation, submission, Online Visibility on trade transactions, download SSDT and Management Reports eg Monthly Statement of VAT payments

Questions and Answers Unit 2203, 88 Corporate Center Sedeno St. , Salcedo Village Makati City 1227 Telephone: +02 843 2792 Fax: +02 843 8160 Email: marketing@intercommerce. com. ph www. intercommerce. com. ph