BOC releases rules on AEO online portal system

0
1783
  • Customs Memorandum Order No. 26-2021 provides guidelines on the implementation of an online portal system for the Authorized Economic Operator (AEO) Program
  • The rules cover the application, processing and approval of application for accreditation as AEO importer and exporter through the AEO portal
  • CMO 26-2021 was signed on August 10 and took effect immediately
  • An AEO Helpdesk will be made available in the Customs Client Portal System for AEO Program inquiries by non-AEO members and/or customs clearance related inquiries

The Bureau of Customs (BOC) has issued guidelines implementing an online portal system for the Authorized Economic Operator (AEO) Program.

Customs Memorandum Order (CMO) No. 26-2021 covers the application, processing, and approval of application for accreditation as AEO importer and exporter using the AEO online portal system.

Signed on August 10, CMO 26-2021 took effect immediately. The order is in pursuant to CMO 09-2020, which provides implementing guidelines on the AEO program for importers and exporters, and Customs Administrative Order (CAO) No. 05-2017, which established the AEO Program.

The AEO online portal system caters to the electronic filing and review of applications submitted for accreditation to the AEO Program. It contains general information on the AEO Program such as accreditation process, benefits, and other relevant information.

The portal may be accessed at https://aeo.customs.gov.ph.

An AEO applicant refers to a company which has completed the pre-screening process and is applying for Level 1 AEO Accreditation. An AEO candidate, on the other hand, is a company undergoing the pre-screening process to determine its readiness and compliance with the criteria and standards set for the AEO prior to application for Level 1 accreditation.

An AEO Helpdesk will be made available in the Customer Care Portal System where non-AEO members may submit general AEO Program inquiries and/or customs clearance-related inquiries.

BOC launched its AEO Program in December 2019 to comply with the country’s commitment to the World Customs Organization’s SAFE Framework of Standards to Secure and Facilitate Global Trade.

READ: BOC launches AEO program for 2020 implementation

The AEO Program represents a customs-to-business partnership seeking to enhance international supply chain security and facilitate movement of legitimate goods. Its implementation in the Philippines became possible in 2016 with the passage of Republic Act No. 10863, otherwise known as the Customs Modernization and Tariff Act.

Companies accredited under the program will be recognized as trusted allies by the BOC and will be entitled to, among others, dedicated processing lanes, resulting in reduced processing period; recognition as a low-risk company; and reduced inspection or expedited clearance by other Customs authorities should certified status be recognized by overseas countries under a mutual recognition program established by bilateral or multilateral arrangement.

Part of BOC’s 10-point Priority Program this year is the full implementation of the AEO Program. Last March, BOC said it received applications from two importers for pre-screening as the agency continues to encourage more stakeholders, particularly importers and exporters, to become an AEO.

READ: BOC receives first 2 applications to AEO program

Currently, pilot implementation of the program covers importers and exporters. There is no timeline yet on the issuance of regulations covering accreditation of stakeholders other than importers and exporters.

Other stakeholders eligible to apply for future accreditation include customs bonded warehouses and customs facilities and warehouses, non-vessel operating common carriers, freight forwarders, international freight forwarders with offices in the Philippines, shipping lines and airlines and their agents, authorized agent banks, local transport operators and their facilities and equipment.

Also eligible are foreign suppliers, manufacturers, and other entities in the logistics and international supply chain accredited as AEOs by another country with which the Philippines has a mutual recognition agreement (MRA).

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 Assessment and Operations Coordinating Group deputy commissioner Atty. Edward James Dy Buco earlier said BOC is taking part in meetings to develop an Association of Southeast Asian Nations AEO MRA to be completed by 2025.

Application protocols

Under CMO No. 09-2020, an applicant entity must have been operating for at least one year prior to the date of application.

Applicants with multiple services in the international supply chain (e.g. applying as AEO importer and exporter) may submit one application form for several categories, but the AEO Certificate of Accreditation will be per category.

If the application is approved, the AEO office will notify the applicant of his accreditation as a Level 1 AEO member.

The AEO Office may motu proprio consider upgrading a Level 1 member to Level 2 or 3, depending on the AEO’s degree of compliance with the requirements of accreditation.

For an entity operating for less than three years prior to application, a compliance history of at least three continuous years must be established before becoming eligible for upgrade to Level 2 status. As such, the revalidation process should immediately start after accreditation as Level 1 member for a period of one year. The period may be extended as necessary to establish the required record of compliance.

An AEO applicant whose application for accreditation was disapproved may re-apply within one year, allowing the applicant to complete the deficiencies, if any, or upgrade its security systems/requirements, as may be needed.

Once granted, accreditation under the AEO Program will last until suspended, revoked, or cancelled through voluntary withdrawal from the program.

Accreditation may be suspended or revoked depending on the degree of culpability and resulting injury to the government, under any conditions in CMO 09-2020, after due notice and hearing.

Benefits of a Level 1 member include exemption from renewing accreditation, self-assessment, supplementary goods declaration, and a dedicated help desk.

For Level 2 members, benefits include those for Level 1 plus a dedicated processing lane, advance clearance process, periodic lodgement, one-time exemption certificate, and expedited customs clearance for exports.

A Level 3 member will have extended additional benefits to be identified by the customs commissioner in consultation with the AEO Office that will be created. A corresponding customs order will be issued for the additional benefits of Level 3 members.

Any fees on the application for accreditation and supervision as AEO will be collected in accordance with the approved rates provided under the Customs Administrative Order on Customs Dues, Service Fees and Charges.

The audit of AEOs will be made according to the parameters to be set by BOC’s Post-Clearance Audit Group.