Conversion of imports under warehousing entries to consumption under strict scrutiny
IMPORTATIONS entered under warehousing entries
but subsequently converted to consumption entries will go
through a fine tooth comb at the Bureau of Customs.
In Customs Memorandum Order 26-2008, Customs Commissioner
Napoleon Morales said the BOC has learned of cases where raw
materials authorized by the bureau for customs manufacturing
warehouses, “after having been entered under warehousing
entries, have invariably been allowed to pay taxes and duties
and thereafter withdrawn.
“Although these transactions appear to be legal in that
customs duties have been collected, such however defeats the
rationale of a customs bonded warehouse. Thus, said transactions
shall be strictly construed and shall be considered as an
exception rather than the rule.”
As a result of the ruling, the CBW operator will have to “apply
in writing for the payment of taxes and duties on the goods
and their eventual withdrawal, stating valid reasons therein,
which will subject to the approval of the Customs Bonded Warehouse
Committee as recommended by the operating division and District
Collector concerned.”
This is toward the “end view of conducting review of
the concerned CBW license by removing from the list of articles
or reducing the volume of authorized importation, taking into
account its domestic sale,” the CMO said.
“Except for Public and Private CBWs, withdrawal for
domestic consumption shall in no way shall exceed 30% of a
particular shipment. Moreover, the assessment/appraisal of
the said transactions shall be conducted by the Formal Entry
Division or equivalent unit, subject to clearance by VRIS-OCOM
(Valuation Review Internal System under the Office of the
Commissioner),” it added.
The BOC is revising warehousing rules and CBW guidelines to
prevent the use of such facilities in technical smuggling.
The move to revamp the outdated warehousing rules began two
years ago but was delayed due to the implementation of the
bureau’s electronic to mobile project, a requisite to
the implementation of the new warehousing rules.
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CCBI insists on individual, not corporate
liability, in RA 9280
THE Chamber of Customs Brokers, Inc. (CCBI)
is pushing for individual liability instead of corporate liability
in amendments to Republic Act 9280 (Customs Brokers Act of
2004) once the Senate resumes hearing the measure in August.
“We are backing up the proposal of Senator (Juan Ponce)
Enrile as we believe individual liability is unlimited,”
CCBI said. “It is easier to prosecute an individual
in cases involving questionable entries lodged before the
Bureau of Customs unlike corporations where it has no natural
liability.”
The Lower House has already finished its own version of the
amendment and is just awaiting the Senate version.
Under House Bill No. 762, the customs broker practice will
be limited to individual but at the same time the bill does
not prohibit a corporation from engaging in the business or
from hiring the services of an in-house customs brokers for
purposes of accreditation by the BOC.
The Senate version, on the other hand, runs along the same
lines. While it acknowledges the practice of the customs broker
as a “professional service, admission to which shall
be determined upon the basis of individual and personal qualification”,
the proposed bill said there is nothing that “shall
prevent corporations from being registered to engage in the
business of customs brokerage provided they hire the services
of at least one customs broker.”
RA 9280 enacted on March 30, 2004 regulates the practice of
the customs broker profession. It also prohibits corporate
practice of customs brokerage. Section 29 of the law provides
that the customs broker practice is a professional service
and as such, “no firm, company, or association may be
registered or licensed as such for the practice of customs
broker profession”.
Section 28 also provides that no person shall practice the
profession, or use the title unless one is a registered licensed
customs broker.
However, Customs Administrative Order 3-2006-A, which opera-tionalizes
RA 9280 at the BOC, allowed brokerage and forwar-ding firms
to lodge customs entries and/or use their employee-customs
representatives to transact business at the BOC.
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Customs starts Phase II testing of E2M project
THE Bureau of Customs (BOC) began testing
Phase II of its electronic-to-mobile (E2M) project this week
with a view to its full implementation by the second half
of the year.
The bureau is working with shipping lines, freight forwarders,
banks and its three accredited value-added service providers,
E-Konek, Cargo Data Exchange Center and InterCommerce Network
Services on the client profile registration system, advance
submission of manifests and cargo declaration.
In addition, new servers and systems for the latest Asycudaworld
version are being tested.
The test results will determine if Phase II will be fully
implemented or conducted in phases as was done in Phase I
of the E2M project.
Phase II also involves electronic license and clearance system,
electronic payment system and the online release system.
The export automatic lodgment, raw material liquidation, and
bonds management system, among others, are part of the third
phase.
Based on its original schedule, the BOC should have rolled
out the electronic submission of formal entry, warehousing
entry, selectivity/hold and alert, electronic payment system
and online release in the first two quarters of the year and
the full migration to elec-tronic process by the second half
of 2008.
BOC is now facilitating the implementation of the E2M project
to beat the deadline for the live exchange of data between
the Philippines, Thailand and probably Korea for the implemen-tation
of the Single-Window Transaction in the second half of the
year.
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Training for shipyard workers pushed
THE Maritime Industry Authority (Marina)
and the Technical Skills and Development Authority (Tesda)
are entering into a memorandum of agreement to ensure proper
training of yard workers under local shipyard operators.
The pact will ensure that those trained on shipyard-related
skills by Tesda and other vocational schools will gain the
competence for shipyard-related jobs, shipyard manpower training
and education program.
Marina said the on-the-job trainees will fill the needed shipyard
workers, ensuring the continued maintenance of a pool of workers.
The Philippines faces competition in the shipyard industry
from Japan, Korea, China, Malaysia and Indonesia.
Marina Administrator Vicente Suazo, Jr earlier said a potent
source of shipyard workers are maritime graduates not ready
to join the seafaring industry.
The country produces about 15,000 maritime course graduates
a year. Estimates, however, show only 20% are qualified to
take the licensure exam and only 6.5% of those who take the
exam are board passers.
“They can also pursue jobs in the shipyards and join
shipbuilding and ship repair so that they will have a wider
understanding of the industry,” Suazo said.
“Those non-passers of the board exam or what we call
the ‘casualties’ can be given a chance through
other jobs. When they are ready to take the exam again and
pass, then they have more stock knowledge and will be fit
to handle foreign vessels,” he added.
In the meantime, they can be welders, fitters or painters
and, while on board, go through an apprenticeship program,
Suazo said.
The Philippines hopes to corner at least 30% of the expected
8,000 new vessels for delivery worldwide by 2010, the Marina
chief said. These vessels will require at least 64,000 officers.
Of the 557 licensed shipyards in the country, 116 are engaged
in shipbuilding/ship repair using shipyard facilities, 234
are afloat ship repairers without shipyard facilities, and
207 are boat builders.
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