BOC-PEZA order requires e2m entry filing by PEZA locators, cancels underguarding

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ID-100163025By early May, locators in Philippine Economic Zone Authority (PEZA) areas must file entries for their shipments through the Bureau of Customs’ (BOC) electronic-to-mobile (e2m) system, following a signed agreement between the two agencies to link up their automated systems.

Dated March 16, BOC-PEZA Joint Memorandum Order (JMO) No. 1-2015 (Mandatory Electronic Processing of Transshipments of PEZA Locators to PEZA Zones and Other Procedures), requires all PEZA locators to post transhipment entries through the e2m system effective May 4. PEZA locators may begin filing from April 13 but on a voluntary basis.

Customs Commissioner John Phillip Sevilla also signed Customs Memorandum Order 08-2015, dated March 17, to comply with the JMO.

“In essence, this (JMO) should allow the online lodgement of all PEZA shipments resulting in faster clearance time as well as lesser documentation and processing costs,” BOC deputy commissioner for Assessment and Operations Coordinating Group Atty. Agaton Teodoro Uvero told PortCalls.

Under the JMO, all PEZA locators importing goods from any port of discharge for transhipment to any PEZA location must file a transhipment entry through the e2m at the port of discharge. Manual filing is only allowed if the BOC deputy commissioner for Management Information System and Technology Group certifies that the e2m system has been down for more than two hours.

At each PEZA zone, PEZA will provide a Customs Clearance Area with ample space and facilities for the joint use of BOC and PEZA.

PEZA locators and their authorized representatives need to enrol with PEZA-accredited value-added service providers (VASPs) so they can lodge the electronic Import Permit System (e-IPS) applications.

The e-IPS is a PEZA system that simplifies the processing of applications for import shipments of PEZA-registered economic zone enterprises with tax and duty-free importation incentives.

For transhipments of more than one container, the port of discharge and the destination PEZA zone must manually monitor their departure from the port until all containers have arrived at the zone and the entry is tagged “arrived” in the e2m.

No more underguarding

The district collector of the port of discharge will require PEZA locators processing transhipment entries to post a General Transportation Surety Bond (GTSB) with the Bonds Division of that district to “guarantee direct, immediate and faithful delivery of goods covered by transhipment entries to the destination PEZA locations.”

The JMO said boat notes will no longer be issued for transhipment to PEZA zones, nor will shipments be required to be underguarded. Upon effectivity of the JMO, each PEZA locator must post a GTSB at each port of discharge where its shipments arrive.

Locators may post a bond with a validity period of their choice, provided that at any time, the bond must have a remaining validity of at least 30 days. When a GTSB is posted, it will be the only bond required to secure transit of goods from a port of discharge to a PEZA zone.

If not all the containers for transhipment arrive at the PEZA zone within the prescribed timeframe, the locator is liable to pay duties and taxes for the entire shipment, plus a 100% surcharge.

If not all the containers have left the port of discharge, the deputy collector for port operations shall cancel the transhipment entry. The locator will then be required to file a consumption entry through the e2m for the entire shipment to obtain the release of the remaining containers, plus payment of the duties and taxes as well as the 100% surcharge within five days of a written instruction from BOC.

If payment is not made, BOC can draw the amount due from the GTSB, plus an additional surcharge of 20%.

Non-compliance by any customs official will be considered as simple neglect of duty punishable upon second offense by dismissal. Tagging a shipment as “arrived” when any part of that shipment has not yet arrived or entering the wrong information in the required tables is regarded as a grave offense punishable on first offense by dismissal.

JMO 1-2015 repeals BOC-PEZA JMOs 5-2010 and 1-2001, as well as all other JMOs and CMOs inconsistent with the policy. – Roumina Pablo

Image courtesy of phanlop88 at FreeDigitalPhotos.net