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The Bureau of Customs has placed on hold the implementation of a memo that will enable individuals, other than customs brokers, to act as declarant and sign goods declaration
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Acting Customs commissioner Yogi Filemon Ruiz confirmed that they are not yet implementing his memorandum dated August 18 that would allow non-brokers to be registered with the Client Profile Registration System
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Ruiz also said BOC is now reviewing CMO 34-2019, which was the basis of the August 18 memo and will take into consideration the position of licensed customs brokers
The Bureau of Customs (BOC) has placed on hold the implementation of an order allowing non-brokers to act as declarant and sign goods declaration.
Acting Customs commissioner Yogi Filemon Ruiz in a text message to PortCalls confirmed the agency is not yet implementing an August 18 memo he signed which instructs the Management Information and Technology Group (MISTG) to implement new functionalities in BOC’s Client Profile Registration System (CPRS) effective August 22.
The new function would allow individuals other than customs brokers to be registered with the CPRS as declarants, a sore issue among customs brokers.
Under Customs Memorandum Order (CMO) No. 34-2019, registration with CPRS is a requirement for individuals, particularly importers or persons empowered to act as agent or attorney-in-fact, to be accredited as declarants.
Ruiz said BOC is also reviewing CMO 34-2019, the basis of his August 18 memo.
“I’m having it reviewed right now…Don’t worry BOC will take into consideration the position of licensed customs brokers,” the customs chief said.
READ: BOC allows non-brokers to register as declarants; brokers cry foul
CMO 34-2019 was issued in 2019 and provides interim guidelines for implementing Sections 106 (Declarant) and 107 (Rights and Responsibilities of the Declarant) of the Customs Modernization and Tariff Act (CMTA). It also provides rules on the accreditation and registration of persons, other than the customs broker, entitled to act as declarant and sign the goods declaration for consumption, warehousing, and transit.
Under CMO 34-2019, declarants may be the consignee or importer; exporter; customs broker acting under the authority of the importer or from a holder of the bill; the person who has the right to dispose of the goods; the holder of the bill of lading or airway bill duly indorsed by the shipping line or airline; or a person duly empowered to act as agent or attorney-in-fact for each holder.
Customs brokers have long contested Section 106 of the CMTA and CMO 34-2019, particularly the provision allowing non-customs brokers such as agents or attorneys-in-fact as declarants.
Chamber of Customs Brokers, Inc. (CCBI) president Adones Carmona, in a text message to PortCalls, said there is a pending declaratory relief case concerning Section 106 (d) of the CMTA filed by CCBI before the Regional Trial Court of Manila Branch 16. He said the chamber believes BOC should wait for the resolution of the case.
CCBI in 2019 had also asked BOC to recall CMO 34-2019, saying the guidelines are “in direct contrast” to the provisions of RA 9298 or the Customs Brokers Act of 2004. It said CMO 34-2019 is silent as to any liability of the declarant, contradicting Customs Administrative Order No. 05-2019, which imposes criminal liability and other burdens upon the customs broker in accordance with RA 9280.
CCBI described CMO 34-2019 as “unfair and degrading to our profession” and “completely negates the strict qualifications to become a customs broker required by RA 9280.”
Further, it said the order “will surely encourage the proliferation of ‘declarants and consignees for hire’.”
Carmona also earlier said attorneys-in-fact shouldn’t replace customs brokers, but should instead sign on behalf of the importer or exporter.
Former BOC deputy commissioner Atty. Agaton Teodoro Uvero, in his book Understanding International Trade, Tariff and Customs, said the last paragraph of Section 106 conflicts with the original intent of the law and as a result, has conflicting provisions within the paragraph.
If read together with Section 110 (Relationship Between the Bureau and Third Parties), Uvero said, Section 106 may be interpreted to mean that for the first two years, a goods declaration may only be processed by the declarant or the customs broker. After the two-year period lapses, any third party designated by the importer may now directly transact with customs and, consequently, process the goods declaration. The last paragraph of Section 107 likewise provides that the declarant shall sign the goods declaration even if assisted by a customs broker, who shall likewise separately sign the goods declaration, Uvero noted.
Even with CMO 34-2019, importers can “still freely” tap the services of customs brokers and still assign them as the declarant, BOC assistant commissioner Vincent Philip Maronilla, earlier said. – Roumina Pablo
