THE Bureau of Customs (BOC) recently addressed the issue of cargo transit fee (CTF) double charging through a new Customs Memorandum Order (CMO).
Under CMO 39-2010 dated September 24, 2010, customs brokers no longer have to submit the Import Entry and Internal Revenue Declaration (IEIRD) form when they clear and release transit goods of economic and freeport zone locators using the enhanced automated cargo transfer system (E-Acts) at the following ports: Port of Manila, Manila International Container Port, Port of Subic, Ninoy Aquino International Airport, Mactan-Cebu International Airport, Cebu International Port, Subic International Airport and the Diosdado Macapagal International Airport.
Brokers need only submit at the port of discharge the transit SAD or the single administrative document which should be printed on A4 paper together with other supporting documents for the release of the shipment.
The CMO noted the imposition of the P1,015 CTF rate in all ports of discharge except at the Mactan Economic Zone which had a CTF of P737.
The new order was issued following widespread complaints about an earlier CMO (37-2010) whose provisions were unclear and which resulted in the payment of the IEIRD twice for Philippine Export Zone Authority (PEZA) transshipment entries.
Specifically, stakeholders said there was double charging for such transactions because apart from the P1,015 — which already included payment of the IEIRD form and documentary stamp — automatically debited from the importer or broker’s CTF fund upon lodgment of import entry, the Customs-PEZA Clearance Office still required the presentation of a hard copy of the IEIRD form during processing. The form is purchased from the BOC at P305 each. In effect, the broker paid an extra P305 for a service (IEIRD form) he/she already paid for.
Under CMO 39-2010, the SAD to be submitted for PEZA-bound goods in lieu of the IEIRD should be notarized and signed by the declarant/importer, just like the regular IEIRD.
The new CMO also allowed customs brokers to use their CTF pre-payment account maintained at the BOC in-house bank at the port of discharge to pay for CTF on transit goods of all their economic and freeport zone locator-clients.