Bureau of Customs Towards a World-Class Customs Administration

Bureau of Customs Towards a World-Class Customs Administration Pushing Trade Facilitation Reforms Towards Increased Export Competitiveness

Trade Facilitation Main Objective To minimize the transaction costs and complexity of international trade for business X X

Trade Facilitation Trader Benefits Cut costs and reduce delays x Faster Customs clearance and release through predictable official intervention Simple commercial framework for doing both domestic and international trade Enhanced effectiveness

Benefits of Trade Facilitation Benefits to Economies Promote export growth Improve competitiveness in global market Attract much needed FDI Increase participation of SMEs in international trade

Trade Facilitation Constraints Excessive documentation requirements Lack of automation Lack of transparency, unclear and unspecified import and export requirements Inadequate procedures, especially lack of auditbased controls and risk assessment techniques Need for cooperation among Customs and other government agencies

5 POINT AGENDA Revenue Enhancement Trade Facilitation Improved Enforcement Professionalization of Personnel Quality of Corporate Life Development

TF Initiatives Strengthening of the Post Entry Audit Group (PEAG) Professionalization of the Customs Service thru training and retraining of BOC personnel Re-deployment of non-intrusive inspection (NII) machines or x-ray facilities

X-ray Check System 1. Port of Manila 5 units 2. MICP LEGENDS: Port Subport With Scanner 4 units 3. NAIA 4. Port of Batangas 4 units 5. Port of Cebu 4 units 6. Port of Cagayan de Oro 2 units 7. Port of Zamboanga 1 unit 8. Port of Davao 5 units 9. Port of Subic 2 units 10. Port of Clark 2 units 11. San Fernando 1 unit ____ 30 UNITS TOTAL

X-ray Check System RISK MANAGEMENT or SELECTIVITY SYSTEM RED – Physical Inspection X-Ray INspection YELLOW – Document Check GREEN – No Inspection

TF INITIATIVES ESTABLISHMENT OF THE AUTHORIZED ECONOMIC OPERATOR (AEO) PROGRAM, TO BE KNOWN AS CUSTOMS-TRADE ALLIANCE TO PROTECT AND ACCELERATE TRADE OR C-TAPAT PROGRAM

TF INITIATIVES CUSTOMS ADMINISTRATIVE ORDER HAS BEEN DRAFTED WITH THE FFG OBJECTIVES: To comply with the commitment of the Philippines to implement the World Customs Organization (WCO) Framework of Standards to Secure and Facilitate Global Trade Framework (SAFE) To establish a voluntary certification program to be known as Customs-Trade Alliance to protect and accelerate Trade or (C-TAPAT). To enhance BOC-Business partnership on trade security and trade facilitation based on trust and mutual respect. To establish accreditation procedures that offer certain benefits and incentives to certain economic operators considered as BOC’s trusted allies.

TF Initiatives Implement as early as possible the National Single Window (NSW) and later on the ASEAN Single Window (ASW) for single submission, single processing and single decision making.

Exec Order: Creating the National Single Window (NSW) Task Force for Cargo Clearance MAJOR PROVISION: “Government Departments and Agencies involved in the cargo clearance release must cooperate with each other in order to provide the Bureau of Customs with automated electronic system required for the establishment, implementation, and operation of the NSW, and eventually the ASW. ”

NSW is now operational at 30 government agencies 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Board of Investments Bureau of Animal Industry Bureau of Customs Bureau of Export and Trade Promotion Bureau of Fisheries and Aquatic Resources Bureau of Import Services Bureau of Internal Revenue Bureau of Quarantine Bureau of Plant Industry Bureau of Product Standards Dangerous Drugs Board Department of Health Civil Aviation Authority of the Philippines Environment Management Bureau Fertilizer and Pesticide Authority

AGENCIES IN THE NSW 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Firearms and Explosives Office Food and Drug Administration Forest Management Bureau Maritime Industry Authority National Food Authority National Meat Inspection Service National Telecommunications Commission Optical Media Board Philippine Coconut Authority Philippine Drug Enforcement Agency Philippine Economic Zone Authority Philippine National Police Philippine Nuclear Research Institute Phillippine Ozone Desk Sugar Regulatory Administration

TF Initiatives Implement e 2 M Customs projectwhere all Customs transactions, from import, export and transshipment, will be covered

E 2 M Status and Enhancement A. E 2 M Customs System 1. Import and Assessment System - implemented nationwide as of August 2010 2. Automated Export Documentation System ( new version – web based ) - pilot implementation in POM and MICP. Unisys to meet with various exports group on April 1, 2011 to agree with the implementation date.

E 2 M Status and Enhancement 3. Other Applications Systems - Informal Entry System – Full implementation by April 30, 2011 - Automated Bonds Management System –CMO is under review - Transit System – Implementation to be completed by April 30, 2011 - Value Reference Information System (VRIS)system configuration being done by MISTG & VRIS group

E 2 M Status and Enhancement 5. Client Profile Registration System Export Agencies (Phil. Export, BOI, EDC) were required to submit list of members in good standing by 3. 11. 2011 - VASPs to help encode and transmit CPRS data of Exporters to E 2 M by March 25, 2011 - MISTG to activate exporters CPRS - Meeting with EDC, Philexport , BOI is set April 1, 2011 to follow-up on status and set schedule for implementation of AEDS. -

E 2 M STATUS and ENHANCEMENT B. Electronic Certificate of Payment System - nationwide implementation done in 2010 C. Enhanced Risk Management System - implemented also in 2011 under ASYCUDA 1. 16 D

Procedural and Technical Enhancements of I-Care Introduced a systematic and computerized procedure in the handling of documents submitted to ICARE (i. e. scanning of applications) Initiated a faster mode of sending notices to applicant-importers and brokers by sending e-mails Designating pre-evaluators for completeness of documents Creation of TWG for the rationalization of Accreditation requirements.