The Philippine Bureau of Customs (BOC) will require containerized and other non-containerized import cargoes to undergo a load port survey (LPS) starting June or July. Currently, only bulk and break-bulk shipments undertake such a requirement.
The announcement was made by Customs Deputy Commissioner for Assessment and Operations Coordinating Group Atty. Agaton Teodoro Uvero in a recent presentation at the Transport Summit 2014 organized by the Philippine International Seafreight Forwarders Association and PortCalls at the Sofitel Philippine Plaza.
Customs Commissioner John Sevilla will sign the Customs Administrative Order (CAO) on LPS very soon.
A draft CAO earlier obtained by PortCalls requires all bulk, break-bulk, containerized and non-containerized cargoes arriving and entering any port of entry in the Philippines to an LPS at the port of origin, unless otherwise exempt.
Uvero said the LPS requirement will mean advance and faster clearance for import shipments; exemption from physical examination or x-ray (except in certain instances); and cost savings on storage, demurrage, and import processing.
As for costs, Uvero noted the existing rule among accredited cargo surveyors (ACS) for bulk and break-bulk shipments states that “they cannot charge beyond ½ of 1% of the FOB (free on board) value.”
There are currently five ACS for bulk and break-bulk shipments: Bureau Veritas, Cotecna, Inspectorate, Intertek and SGS. They may also offer LPS services to shippers of containerized and other non-containerized cargoes.
Under the draft CAO, the BOC will provide a “transitory period to establish the cargo clearance system together with the strict requirement for LPSR (load port survey report) on imported cargoes” — possibly from 30 to 60 days, Uvero said — during which no penalties would be imposed.
At the summit, the BOC executive also outlined other policies eyed by the bureau in the coming months.
Expansion of Super Green Lane
He said the Super Green Lane (SGL) program will be expanded and streamlined to make it easier even for small and medium-sized enterprises to participate. Right now, there are about 105 participants under the SGL program, mostly from the country’s top 1,000 corporations.
The SGL “will be merging in the next three months with the concept of the Authorized Economic Operator (AEO) which, in first world countries, is the future of trade facilitation”, Uvero said.
The AEO is defined by the World Customs Organization (WCO) SAFE Framework of Standards to Secure and Facilitate Global Trade as a party involved in the international movement of goods, approved by a national Customs administration as complying with WCO or equivalent supply chain security standards. AEOs may include manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors.
Another BOC plan is the adoption by end of the year of a paperless import system, including for transshipments (even for those in economic zones overseen by the Philippine Economic Zone Authority), and the centralization of the assessment process.
“We’ve asked foreign agencies to support us in all these projects,” Uvero said.
Budget for overtime
The BOC is also seeking to secure “extra budget” for overtime work of personnel under the proposed seven-day work week at Manila and Cebu ports.
Uvero pointed out that many airport customs staff working non-stop for 12 hours do not even get paid for overtime and night differential.
On another note, Uvero said the BOC is pushing for the passage of the Customs Modernization and Tariff Act (CMTA), which seeks to align the customs administration with guidelines set under the WCO, of which the Philippines is a member.
WCO-member states have all adopted the Revised Kyoto Convention, a blueprint for modern and efficient customs procedures in the 21st century that aims to provide international commerce with the predictability and efficiency that modern trade requires.
Once enacted, the CMTA would change “how customs does its business”, Uvero said.
Finally, the customs executive said the BOC is working with the Bureau of Internal Revenue to simplify recently enacted accreditation requirements for importers and customs brokers.
Under the new rules, a BIR accreditation is required for importers and brokers before they can in turn seek accreditation from the BOC.
“I think they (BIR) are doing away with the SEC (Securities and Exchange Commission) clearance,” Uvero said, adding a revised revenue memorandum order will be released possibly by this week.–– Text and photo by Roumina M. Pablo
