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Cargo Targeting System

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The Bureau of Customs (BOC) has issued operational guidelines on the submission by foreign carriers and their agents of the advance cargo declaration and manifest to the Cargo Targeting System (CTS).

Customs Memorandum Order (CMO) No. 48-2019, signed on October 22, implements BOC’s CTS, a World Customs Organization (WCO) enterprise solution that allows shipping lines to submit manifests following mandated timelines.

The order will take effect on November 22 after publication on Nov 7.

CTS allows WCO member-countries to adopt international best practice in cargo risk assessment, thus implementing key parts of the WCO’s SAFE Framework of Standards to Secure and Facilitate Global Trade and the Kyoto Convention.

Launched last October 16, the CTS is already being used by BOC to process information submitted by cargo carriers and importers for risk assessment purposes.

BOC said the advance manifest is a requirement under the Customs Modernization and Tariff Act (CMTA) and is part of BOC’s 10-Point Priority Program designed to boost trade efficiency while ensuring border security.

CTS is different and separate from BOC’s Advance Manifest System and electronic-to-mobile (E2M) system, both of which also require the advance submission of manifest but for different purposes.

CMO 48-2019 takes effect 15 days after its publication. To give cargo carriers and other concerned parties time to comply with the new requirement, the fines and penalties under Section 1412 (Failure to Supply Advance and Requisite Manifests) of the CMTA will not be imposed within six months of CMO 48-2019’s effectivity.

The new order applies to all airlines, shipping lines/ship agents, non-vessel operating common carriers, and freight forwarders/cargo consolidators/co-loaders whose cargoes, including transshipments, are destined for the Philippines.

Under CMO 48-2019, the sea freight carrier should submit the cargo manifest electronically at least 24 hours before the vessel arrives.

For air freight, submission should be at least one hour before the aircraft arrives if the port of origin is in Asia, and at least four hours before it arrives if the port of origin is other than Asia.

The electronic cargo manifest/consolidated cargo manifest (CCM) should be submitted to CTS in XML format or in any other format prescribed by BOC.

The carrier should utilize the facility of BOC-accredited value-added service providers (VASPs)/accredited information processors or any prescribed for the submission of inward foreign manifest (IFM)/CCM to CTS and to E2M.

Submission of updates for the previously submitted advance cargo declaration, IFM, and CCM can be done through the VASP.

Cargo description in the cargo manifest must be precise enough to enable BOC to identify goods for discharge at the port and take pre-emptive action, if warranted.

Generic descriptions in the cargo manifest of the carrying vessel such as FAK (freight all kinds), general cargo and/or similar terminologies will not be allowed and will be considered as failure to exhibit the required document. Only the master bill of lading (B/L) or master air waybill (AWB) are allowed to use cargo description such as “consolidated Balikbayan box” for freight forwarders handling balikbayan boxes only, or “consolidated cargo” for freight forwarders handling non-balikbayan boxes.

The Intelligence Group deputy commissioner will monitor compliance of shipping lines, airlines and freight forwarders to CMO 48-2019.

Under Section 1412 of the CMTA, failure to transmit the electronic manifest within the required time will make the owner, operator, or agent of the vessel or aircraft liable for a fine of not less than P100,000 but not more than P300,000.

If the transit time from port of origin to port of entry is at least 72 hours, the shipping or forwarding agent of the carrier or the vessel that fails to submit the manifest at least 24 hours before entry will likewise be liable for a fine of not less than P100,000 but not more than P300,000.

The Customs commissioner may issue additional rules and regulations on the implementation of CTS.

BOC assistant commissioner Atty. Vincent Philip Maronilla earlier said CTS is expected to complement BOC’s risk management system and to beef up the bureau’s intelligence system in identifying and preventing fraudulent practices, especially for regulated shipments.

Intelligence Group deputy commissioner Raniel Ramiro said he is optimistic the new system will make BOC’s processing of shipments more efficient. He added that CTS will greatly improve the profiling, risk assessment, anti-terrorism, law enforcement and trade facilitation initiatives of BOC. – Roumina Pablo

Updated on November 13, 2019, 2:40pm, to include effectivity of the order.

2 Responses to “BOC releases guidelines for submission of advance declaration to CTS”

  1. Can the Bureau of Customs ensure this will not affect current server? This past few weeks BOC’s server has intermittent connection that causes delays in processing of entry declaration which of course resulted to storage and demurrage – additional burden for the importer.

    Reply
    • Thanks for your inquiry, Ms Calvo. As PortCalls is not affiliated with the Bureau of Customs in any way, we can’t speak for the agency. But as far as we know (or at least based on the BOC releases), there are efforts to upgrade the BOC server specifically to ensure e2m functions better. Now whether those efforts are successful is another question.

      Reply

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