The Bureau of Customs (BOC) is pilot testing for three months starting in December the electronic processing for the application and issuance of the Certificate of Origin (e-CO).
The guidelines for the implementation of the three-month pilot program are under Customs Memorandum Order (CMO) No. 39-2015 signed by Customs commissioner Alberto Lina and which took effect immediately.
The electronic processing of COs is part of the Association of Southeast Asian Nations (ASEAN) Single Window (ASW) program for export shipments which use the BOC-approved e-CO system of authorized value-added service providers (VASP).
“Once fully implemented, Philippine exporters will extensively benefit from the ease and facility in the processing of COs for their exports and the reduced transaction costs arising from paperless processing,” Assessment and Operations deputy commissioner Atty. Agaton Uvero said in a statement.
Lina said “the move will also align the Philippines with the automation and trade facilitation programs of many of the APEC (Asia-Pacific Economic Cooperation) member economies.”
Shipments covered under the ASW program are those from Philippine Economic Zone Authority (PEZA)-registered enterprises and other export shipments coursed through the Port of Manila, Manila International Container Port, Ninoy Aquino International Airport , Port of Cebu, and Mactan-Cebu International Airport.
A CO, or Form D, is an international trade document attesting that goods in a particular export shipment are wholly obtained, produced, manufactured, or processed in a particular country. Submission of the CO, which also serves as a declaration of the exporter, is required in order to avail of preferential tariffs under the ASEAN Trade in Goods Agreement (ATIGA).
After the three-month trial, BOC will review the procedures adopted in preparation for the actual rollout of the e-CO system in all ports with the intention to include provisions in various other free trade agreements (FTAs) to which the Philippines is part.
BOC will also gather inputs when it formulates policies and procedures leading to the electronic exchange. These measures will encompass submission and receipt of the e-CO in keeping with the e-CO exchange rules under ATIGA and various FTAs, and grant of preferential tariff treatment for importing goods based on the e-CO issued and received by BOC.
The pilot program covers the registration of pilot exporters who will use the e-CO system and upload their qualified export products according to ATIGA Rules of Origin and based on the BOC-issued ruling on the Country of Origin; online review and approval of the e-CO by authorized customs officers; printing of the approved e-CO; and generation of BOC management reports on the e-CO issued.
BOC noted that the preferential tariff treatment under ATIGA is meant to reduce or eliminate import duties on certain eligible products exported by the Philippines to other ASEAN member states that already accept Form D. These countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam.
Exporters must request in writing to the BOC issuing authority for the pre-export verification of the origin of their goods at least five working days before the products are exported.
As basis for issuing a CO, the exporter must submit the following documents: full description of the products for exportation; final country of destination of the products; complete list of materials, parts or components used in manufacture; breakdown of ex-factory cost, ex-factory price, and free-on-board (FOB) price of the finished product; and, process flow chart.
Exporters registered with BOC’s electronic-to-mobile (e2m) system may register with the e-CO system so as to apply for issuance of the ATIGA Form D.
“The registered exporter shall upload its list of export goods, together with the scanned copy of the corresponding Ruling on Country of Origin, into the e-CO System, for review and the approval for use in the validation of the application of the ATIGA Form D, by the ECD (Export Coordination Division),” CMO 39-2015 noted.
The registered exporter must log into the e-CO system and submit his application for ATIGA Form D, together with the scanned copies of the following support documents: export declaration, commercial invoice, and airway bill or bill of lading.
When the application is submitted, the e-CO system will send an e-mail alert to the ECD or Export Division (ED) of the port to review and verify the following: whether the export products have been pre-qualified for ATIGA Rules of Origin (ROO)/Operational Certification procedure (OCP); and whether the scanned documents submitted have been verified.
The ECD or ED will be responsible for verifying and approving the application, ensuring that the details about the goods qualify it under the ruling, and if the submitted scanned support documents are complete.
Once the application is approved, the e-CO system will send an email notification to the exporter.
However, an application may be rejected on certain grounds. One is if any of the goods specified in the application for the ATIGA Form D is not among the pre-qualified goods of the exporter that have complied with the ATIGA ROO/OCP, or the corresponding ruling has already expired. Also, application will be rejected if the submitted scanned documents do not pertain to the application for the ATIGA Form D.
If the e-CO application is rejected, the ECD or ED will indicate the reason, and the e-CO system will send an email notification to exporter of the rejection and specify the reason.
“The exporter may correct the deficiency or error, and resubmit another application,” CMO 39-2015 said.
For the e-CO application approved by the ECD or ED, the e-CO system automatically triggers the electronic payment of the P115 documentary stamp tax (DST), either through the auto-debit, ATM, or advanced payment mechanism, and the electronic remittance of DST amount to the Landbank account of the BOC.
PEZA and Board of Investments-registered enterprises are exempt from paying the DST.
When payment is confirmed, the e-CO system will send an email advice to the exporter that the e-CO may already be printed online, with the corresponding system generated e-CO reference number and barcode. The exporter should then print out the approved e-CO, sign it, and submit a copy to the ECD for the signature of the authorized customs officer.
BOC said further that customs authorities in the importing country may request for retro-verification if doubts exist about the authenticity of the CO and the accuracy of the information used, and the ECD or ED will reply to the request based on information in the e-CO system.
According to Francis Lopez, president of BOC-accredited VASP InterCommerce Network Solutions, Inc., they will organize in December exporters’ briefing sessions on the new guidelines. – Roumina Pablo
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