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Home3PL/4PLBOC order sets guidance on automated bonds management system adoption

BOC order sets guidance on automated bonds management system adoption

  • Recently issued Customs Memorandum Order No. 30-2020 provides guidelines for implementation of the Automated Bonds Management System (ABMS) for general transport surety bonds (GTSB) in all customs ports
  • ABMS is a BOC-wide system for processing bond transactions, while a GTSB is a form of security to guarantee payment of duties and taxes and other obligations to the Bureau of Customs
  • CMO 30-2020 applies to all transit bond accounts opened under BOC’s Electronic-to-Mobile System in all collection districts, including sub-ports and other BOC offices

The guidelines for implementation in all Customs ports of the Automated Bonds Management System (ABMS) for general transport surety bonds (GTSB) have been issued by the Bureau of Customs (BOC).

Issued under Customs Memorandum Order (CMO) 30-2020, the rules apply to all transit bond accounts opened under BOC’s Electronic-to-Mobile (E2M) System in all collection districts, including sub-ports and other BOC offices.

A BOC-wide system for processing bond transactions, ABMS was established pursuant to CMO 14-2012, which provides procedures for implementing the ABMS in all customs ports.

The ABMS monitors and manages bond balances and flags those that have matured. A GTSB is a form of security to guarantee payment of duties and taxes and other obligations to BOC.

Under CMO 30-2020, all surety companies must be registered in the Client Profile Registration System (CPRS) of the E2M. The Collection Service under the Revenue Collection Monitoring Group is responsible for activating the CPRS registration, pursuant to CMO 13-2018 (Decentralization of MISTG Non-IT Functions).

Transit bond policies filed will be approved at the Bonds Division of the port.

Approved bond policies filed in the current year at the port of discharge will expire on January 31 of the following year.

Surety companies should apply for GTSB in the port where the goods are discharged and should be used in the port it was applied for. When creating a bond account with the value-added service provider, the port must be explicitly specified. A bond policy number cannot be used if it already exists in the system, CMO 30-2020 noted.

Approved transit bond policy can be applied to multiple electronically lodged goods declaration of the importer as long as the policy bond has sufficient funds or available amount.

Only the approved bond policy can be used in the Terms of Payment upon filing of the transit administrative document (TSAD) in the E2M and bond credit as payment instrument will be used. Upon registration of the TSAD, the ABMS will change the status of the bond policy to “Charged” if there is available fund balance.

All transit shipments transferred to Free Zones from the port of discharge must be tagged Arrived in the E2M Transit System by the authorized Customs officer on the following period:

  • For single containers, within 24 hours from arrival of the shipment at the Free Zone
  • For multiple containers, within 24 hours from arrival of the last container of the shipment at the Free Zone

Once the TSAD is tagged Arrived at the port of destination, the ABMS will automatically revert the amount charged to the original bond balance.

Any alarm raised in the Electronic Tracking of Containerized Cargo (E-TRACC) system must be reported, pursuant to CMO 04-2020, the order which establishes E-TRACC.

The E-TRACC, launched last May, is a web-based system that tracks the inland movement of containerized cargoes during transit and transfer to other customs territories and facilities.

If the importer fails to have the GTSB-secured containers arrive on time at the designated destination without valid reason, this should be sufficient ground for the bond to be forfeited. – Roumina Pablo

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