The Philippine Bureau of Customs (BOC) has issued rules governing the electronic processing for the transfer of goods from one Ecozone Logistics Service Enterprise (ELSE) facility to its partner locator at a Philippine Economic Zone Authority (PEZA) site, saying these are meant to further simplify and enhance ease of doing business between economic zones.
The regulations are embodied in Customs Memorandum Order (CMO) No. 40-2015, which implements an electronic system for composing, submitting, and processing applications for the transfer of goods between an ELSE facility and its partner PEZA locator.
In a statement, the BOC said CMO 40–2015 specifies Customs’ role to ensure adequate security for the goods being transferred. It guarantees that only duly approved goods are withdrawn/transferred; goods that may have diverted from the intended destination can be identified; and intended transfer is successfully delivered at the approved destination.
From the effectivity of the order, customs employees assigned in PEZA will be limited to approval of the General Transportation and Surety Bond (GTSB); selective examination of goods covered by the electronic zone transfer of document or e-ZTD, both prior to exit from ELSE and upon to specific destination; support tracking of transfer to identify goods that may have been diverted from the intended destination; support initiation at the earliest possible recovery operation for divided transfer and certification of GTSB; and support the spot checking of destination warehouse to see if the transfer was successful.
Deputy Commissioner for Assessment and Operations Atty Agaton Uvero said the implementation of the Electronic Zone Transfer System (e-ZTS) last July has promoted transparency and facilitated transactions among PEZA locators and will further reduce the cost of doing business for exporters.
“The eZTS will also allow both Customs and PEZA authorities to monitor, in real-time, the transfer and movement of tax-and-duty free goods among the ecozones, thereby reducing the possibility of illegal transfers and withdrawals of goods into the domestic market,” he said.
CMO 40-2015 is an offshoot of BOC-PEZA Joint Memorandum Order (JMO) No. 02-2015, which was issued in July to implement the eZTS.
The JMO provides for a “simpler and more efficient system for documenting and processing the clearance, release and transfer of goods between PEZA-registered enterprises.”
The JMO covers the transfer of goods—such as constructive exports, farm-out for subcontracting, and permanent or temporary transfer of goods and equipment—by a PEZA enterprise to another PEZA enterprise, or to another facility of the PEZA enterprise that is located in another PEZA zone.
Initially, the e-ZTS will focus on the movement of goods that are entered or stored in an ELSE and have a corresponding electronic letter of authority to a zone locator authorized to receive them.
Responsibilities of ELSE operator
Under CMO 40-2015, “no ELSE can transfer goods to partner PEZA locators without having posted a GTSB duly approved as provided for in JMO 02-2015 and in this order.” The ELSE operator will then submit three copies of the GTSB—which can be obtained from any customs accredited surety company—to the head of the Customs Office based in the zone for approval. The application must also be notarized.
The ELSE operator must also apply for the transfer of goods to a partner locator using the e-ZTD of the e-ZTS. The goods for transfer must be segregated or immediately moved to the carrying truck where it may be examined by BOC representatives.
BOC said its officers only have 30 minutes “within which to register in the e-ZTS whether or not they wish to examine the goods.”
“Failure to indicate intent to examine will free the goods for transfer,” CMO 40-2015 states. – Roumina Pablo
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