The Bureau of Customs (BOC) is encouraging exporters and manufacturers to avail themselves of self-certification to save on time, reduce costs, and facilitate trade.
Self-certification is a system that enables a certified exporter to self-declare that their products have satisfied the Rules of Origin (ROO) under the Association of Southeast Asian Nations (ASEAN) Trade in Goods Agreement (ATIGA).With self-certification, exporters will not need to present a Certificate of Origin (CO) Form D to avail themselves of tariff preferences under ATIGA.
BOC, in a presentation to stakeholders in early May, said the self-certification project reduces for exporters the steps toward compliance and lowers the administrative costs associated with CO application. Against the five steps of the conventional CO system, self-certification requires only four steps, since it takes away the need to apply for a CO.
Instead of a CO which needs approval from BOC, exporters can self-declare the origin of the product and present the invoice declaration. Application to become a self-certified exporter is only once versus application for a CO which is per shipment.
Moreover, BOC said exporters can issue their own certification even on weekends. A company is allowed up to three authorized signatories, provided these officers or employees understand enough about ROO.
In an advisory on its website, BOC said that to become a certified exporter, one has to apply in writing to the Office of the Deputy Commissioner, Assessment and Operations Coordination Group, and the Self-Certification Implementation and Monitoring Secretariat (SCIMS). The application will then be reviewed and deliberated upon by SCIMS.
Requirements to be certified include the latest income tax returns; unique reference number for Philippine Economic Zone Authority (PEZA) locators, and BOC-Client Profile Registration System for non-PEZA locators; business permits; Securities and Exchange Commission/Department of Trade and Industry registration, where applicable; list of authorized signatories s not exceeding three persons; an illustration of the manufacturing process; and list of products applied for authorization.
BOC said there are no fees to pay to become accredited, except for the documentary stamp to be attached to the Certificate of Accreditation.
The customs agency began implementing the self-certification policy in December 2013 when it issued Customs Administrative Order (CAO) No. 06-2013 that implements Executive Order (EO) No. 142. The EO, signed by President Benigno Aquino III in October 2013, enforces among governments of participating ASEAN countries the terms of a memorandum of understanding (MOU) on a regional self-certification system. The MOU, signed in 2012, paves the way for the development and operation of an ASEAN-wide self-certification by 2015. The implementing rules and guidelines for CAO 06-2013 are embodied in Customs Memorandum Order No. 02-2014.
The Philippines, along with Indonesia and Laos, is part of the ASEAN’s second pilot test for self-certification. Thailand and Vietnam have confirmed they are joining the second pilot. Currently, Brunei, Malaysia, Singapore, and Thailand are implementing the pilot project, while and Cambodia and Myanmar are set to join. A total of 15 companies are participating in the self-certification project, of which three are from the Philippines.
Self-certification is part of the mechanisms crafted during the 22nd ASEAN Free Trade Agreement (AFTA) Council Meeting in 2008 to enhance the AFTA ROO and streamline certification procedures in line with the objectives of the ASEAN Economic Community. – Roumina Pablo
Image courtesy of Vichaya Kiatying-Angsulee at FreeDigitalPhotos.net
