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Bureau of Customs officials are drafting an operations manual for the Authorized Economic Operator program as it gears up for the program’s full implementation
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The manual will help improve the AEO organizational structure, set up information-sharing mechanisms in discussing mutual recognition arrangements with other countries; and institutionalize validation, screening, and evaluation trainings for AEO officials
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Two companies have been granted level 1 accreditation under the AEO program
The Bureau of Customs (BOC) is drafting an operations manual for the Authorized Economic Operator (AEO) program as it gears up for the program’s full implementation.
The development is in line with BOC efforts to improve the AEO organizational structure, set up information-sharing mechanisms in discussing mutual recognition arrangements (MRA) with other countries; and institutionalize validation, screening, and evaluation trainings for AEO officials, BOC said in a statement.
BOC said officials of its Interim AEO Office participated in a recent two-day writing workshop on drafting the manual.
The International Trade Center (ITC), through the ARISE Plus Philippines Project, and the BOC Project Team for Strengthened Trade Facilitation Capacity Building helped in the activity to define the day-to-day operation and management of the AEO Program.
ITC AEO national expert Dennis Pantastico discussed recommendations identified in the first-year assessment report on the Philippine AEO Program, including national practices, challenges, and opportunities.
BOC launched the AEO Program in December 2019 in compliance with the country’s commitment to the World Customs Organization’s SAFE Framework of Standards to Secure and Facilitate Global Trade.
The AEO Program represents a customs-to-business partnership that seeks to enhance international supply chain security and facilitate movement of legitimate goods.
Under AEO, stakeholders that apply and qualify for the program are allowed to clear their goods with minimum or zero customs border intervention.
The passage of Republic Act No. 10863, otherwise known as the Customs Modernization and Tariff Act, in 2016 paved the way for the implementation of the AEO program in the Philippines.
Customs Administrative Order No. 05-2017 establishes the AEO Program while Customs Memorandum Order No. 09-2020, issued in 2020, provides the guidelines for the pilot implementation of the AEO program for importers and exporters.
CMO 26-2021 was also issued to provide guidelines for the application, processing, and approval of applications for accreditation as an AEO importer and exporter using the AEO online portal system.
As of April 2022, two companies, Toyota Motors Philippines Corp. and Panasonic Manufacturing Philippines Corp., have been granted level 1 accreditation under the AEO program.
BOC earlier said it will be granting accreditation to top importing companies while at the same time completing the construction of its AEO office.
The agency will also actively participate in the ongoing development of an AEO MRA with all Association of Southeast Asian Nations member countries.
An MRA refers to a formal document between two or more customs administrations outlining the circumstances and conditions for recognizing and accepting the AEO programs of the signing parties.
BOC earlier said it would take part in meetings to develop an AEO MRA for ASEAN that will be completed by 2025.
Aside from importers and exporters, other stakeholders will be eligible to apply for an AEO accreditation. BOC said it will issue a separate order to implement this.
