-
The Bureau of Customs is looking to treat deconsolidators of balikbayan boxes as third-party entities under a draft memo
-
This means deconsolidators will be subject to BOC supervision and regulation in relation to the importation, exportation, movement, storage and clearance of goods for and on behalf of another person
-
Deconsolidators transacting with the BOC for and on behalf of importers and consignees will then be treated as true importers or consignees under the draft order
-
A public consultation on the proposal will be conducted on March 1
The Bureau of Customs (BOC) wants to treat deconsolidators of balikbayan boxes as true importers or consignees under a draft customs memorandum order.
Under the draft order, BOC is looking to treat balikbayan box deconsolidators as third-party entities, thus subject to its supervision and regulation in relation to the importation, exportation, movement, storage and clearance of goods for and on behalf of another person.
When that happens, deconsolidators transacting with BOC for and on behalf of importers and consignees will then be treated as true importers or consignees.
At present, balikbayan box deconsolidators such as international freight forwarders are accredited with the Department of Trade and Industry-Fair Trade Enforcement Bureau (DTI-FTEB), while air freight forwarders are supervised by the Civil Aeronautics Board (CAB).
The draft order also prescribes guidelines on application, processing, and approval of registration with BOC of deconsolidators, including those availing of the privilege under Section 800 (g) of the Customs Modernization and Tariff Act (CMTA).
Deconsolidators, under the draft order, refer to a consolidator agent situated at the country of importation that provides services to ungroup or deconsolidate shipments, orders, goods, etc. to facilitate distribution.
BOC said the business of receiving, transporting and delivering balikbayan boxes—now being performed by deconsolidators, including those availing of the privilege under Section 800 (g) of CMTA—is one imbued with public interest.
For this reason, entities offering such services are obliged to exercise the highest degree of diligence, as well as high standards of integrity and performance in all its transactions.
A public consultation is scheduled on March 1 to deliberate the merits of the draft order. Stakeholders may submit their position papers on the proposed order. A template may be downloaded from BOC’s website, from February 22 until March 1.
Section 800 of the Customs Modernization and Tariff Act covers conditionally tax- and/or duty-exempt importations while subsection (g) covers balikbayan boxes sent by residents of the Philippines, overseas Filipino workers, or other Filipinos residing abroad.
Balikbayan boxes containing goods that will avail of the privilege under Section 800 (g) of the CMTA will be processed in accordance with Customs Administrative Order (CAO) No. 01-2018 (amended rules on consolidated shipment of balikbayan boxes) and CMO 18-2018 (guidelines implementing CAO 01-2018), including the penalties imposed therein.
Under the draft order, balikbayan box deconsolidators should apply to BOC’s Account Management Office (AMO) and will pay a registration fee of P2,000 upon submission of their application.
BOC will then issue a Certificate of Registration to approved applications and will be valid for one year from the date of approval, subject to suspension, revocation, or cancellation.
Balikbayan boxes processed with BOC under Section 800 (g) of the CMTA will also be subject to fines and penalties under CAO 01-2018. Balikbayan boxes subject to payment of duties and taxes, meanwhile, will be covered by CAO 05-2019 (rules and regulations governing the registration of customs brokers transacting with BOC and for other purposes) and/or CAO No. 07-2022 (accreditation of importers).
Upon recommendation of the district collector, the AMO may preventively suspend or bar the deconsolidator from transacting with the BOC for violation of provisions of the proposed CMO without justifiable reasons until the liability has been paid.
Penalties will be imposed on a per-shipment basis and without prejudice to the action of FTEB and CAB to blacklist and sanction the erring deconsolidator.
The registration of the deconsolidator will also be temporarily suspended if its FTEB or CAB accreditation/license/permit to operate is no longer valid or has expired.
However, deconsolidator may still request the Customs commissioner for continuous processing of its shipments in accordance with Section 17 of CAO 07-2022, provided that 100% examination may be conducted on a specific balikbayan box which is subject of a derogatory information.
Registration will also not be suspended if the deconsolidator submits a proof of application for renewal of accreditation with FTEB or CAB duly received by the office. – Roumina Pablo
RELATED READ: BOC files cases vs forwarders that abandoned balikbayan boxes
