The Customs Modernization and Tariff Act (CMTA) has finally been approved by the Philippine Congressional Bicameral Conference Committee, one step away from the measure becoming a law.
The committee report on the bill was signed on February 2, according to Atty Agaton Teodoro Uvero, Customs deputy commissioner for Assessment and Operations. Uvero has recently been detailed by Customs commissioner Alberto Lina to the Department of Finance to ensure passage of the CMTA, a priority measure under the Aquino administration.
The signing came after there was agreement on the contentious declarant provision, the last remaining clause in the act that needed approval.
The approved declarant provision makes mandatory for two years the engagement of customs brokers as goods declarant. Beyond that, the services of brokers as declarant will be optional.
Uvero told PortCalls the approved declarant provision makes mandatory for two years the engagement of customs brokers as goods declarant. Beyond that, the services of brokers as declarant will be optional.
The approved declarant provision is apparently a compromise measure, since an earlier proposal allowed an authorized importer’s representative, who need not be a customs broker, to be the goods declarant.
For a copy of the approved measure, click here.
Under Section 106 of the approved measure, “A declarant may be a consignee or a person who has 11 the right to dispose of the goods. The declarant shall lodge a goods declaration with the 12 Bureau and may be:
(a) the importer, being the holder of the bill of lading; or
(b) the exporter, being the owner of the goods to be shipped out; or
(c) a customs broker acting under the authority of the importer or from a holder of the bill; or
(d) A person duly empowered to act as agent or attorney-in-fact for each holder.
“In case the consignee or the person who has the right to dispose of the goods is a juridical person, it may authorize a responsible officer of the company to sign the 20 goods declaration as declarant in its behalf.
“The goods declarations submitted to the Bureau shall be processed by the declarant or by a licensed customs broker: Provided, That for importations, a transition period of two (2) years from the effectivity of this Act is hereby provided during which subparagraph (d) of this section shall not be implemented by the Bureau: Provided, further, That after two (2) years from the effectivity of this Act, subparagraph (d) of this section shall take into effect consistent with international standards and customs best practices.”
Collapse of profession?
Customs brokers had earlier objected to the proposal to make optional their engagement in goods declaration, claiming this will signal the “collapse” of customs brokerage in the country and affect those studying for the profession, since their services will be redundant when they pass the board and secure their license.
The proposal also goes against the national legislation enshrined under Republic Act No. 9280 or the Customs Brokers Act of 2004, they said. Under R.A. 9280, the declarant is the customs broker.
In the declaration of policy, the bicameral-approved CMTA said the measure aims to, among others:
“(a) Develop and implement programs for the continuous enhancement of customs systems and processes that will harmonize customs procedures;
(b) Adopt clear and transparent customs rules, regulations, policies and procedures, consistent with international standards and customs best practices;
(c) Establish a regime of transparency of and accessibility to customs information, customs laws, rules, regulations, administrative policies, procedures and practices, in order to ensure informed, and diligent compliance with customs practices and procedures by stakeholders;
(d) Consult, coordinate and cooperate with other government agencies and the private sector in implementing and developing customs policy;
(e) Provide a fair and expeditious administrative and judicial appellate remedy for customs related grievances and matters;
(f) Employ modern practices in customs administration and utilize information and communications technology in the implementation of customs functions; and
(g) Institute professionalism and meritocracy in customs tax administration by attracting and retaining competent and capable customs officers and personnel to enforce the provisions of this Act.”
Senate Ways and Means committee chairman and CMTA sponsor Senator Juan Edgardo Angara said the act aims to amend the Tariff and Customs Code of the Philippines so it dovetails with the Revised Kyoto Convention (RKC), which is a blueprint for modern and efficient customs procedures.
Angara said the passage of the bill into law will increase transparency and simplify procedures in the Bureau of Customs (BOC); increase the de minimis value (amount below which no duties and taxes will be collected) from P10 to P10,000; raise the tax exemption ceiling for packages sent by balikbayans and returning residents from P10,000 to P150,000; and provide harsher penalties for smuggling.
The bill also aims to infuse transparency and accountability into the BOC mindset, as the act promotes the reduction of human intervention through automation of customs procedures.
Senate President Franklin Drilon added that CMTA proposes the use of information and communications technology and other appropriate applications to reinforce the BOC’s functions towards simplified, secured, and harmonized trade facilitation.
Image courtesy of khunaspix at FreeDigitalPhotos.net
