BOC rolls out rules on CFW use of automated inventory system

0
1820
Image by Pashminu Mansukhani from Pixabay
  • The Bureau of Customs has issued rules on mandatory use of an automated inventory management system for off-dock and off-terminal customs facilities and warehouses (CFW)
  • Effective July 1, Customs Memorandum Order 21-2021 aims to strictly monitor and generate real-time and accurate information on status of goods received, stored and withdrawn from off-dock and off-terminal accredited CFWs
  • All off-dock and off-terminal CFWs with BOC license are required to implement the automated IMS

The Bureau of Customs (BOC) has issued guidelines on the mandatory use of an automated inventory management system (IMS) for off-dock and off-terminal customs facilities and warehouses (CFW).

Customs Memorandum Order (CMO) No. 21-2021, which takes effect on July 1, enables BOC to strictly monitor and generate real time and accurate information on the status of goods received, stored, and withdrawn from off-dock and off-terminal accredited CFWs.

CMO 21-2021 covers goods entered, stored, and withdrawn from off-dock and off-terminal accredited CFWs for release under consumption, warehousing, transit, transshipment or export.

All off-dock and off-terminal CFWs granted a license to operate by BOC will be required to implement the automated IMS to be provided by a bureau-accredited service provider.

CFWs–facilities for temporary storage of goods–are established and authorized to operate by BOC pursuant to Title VIII (Tax and Duty Deferment, Preference and Exemption), Chapter 2 (Customs Warehouses) of the Customs Modernization and Tariff Act.

These facilities include container yards (CY), container freight stations (CFS), seaport temporary storage warehouses, airport temporary storage warehouses, and other premises for customs purposes. Other types of CFWs are terminal facilities, off-dock CFWs, off-terminal CFWs, and inland container depots.

CFWs also extend to examination areas, cold storages, wharves, infrastructure and other premises where goods subject to customs clearance may be stored, examined, or disposed of. This is intended to protect government revenues, prevent the entry of contraband, and curtail customs fraud.

The deputy commissioner for Assessment and Operations Coordinating Group will oversee implementation of the IMS, while the deputy collector for operations of the port will supervise system operations.

Wharfingers assigned at off-dock/off-terminal CFWs and other authorized customs personnel will have access to the IMS to monitor status of transfer of containers from port of discharge to the off-dock/off-terminal CFWs, as well as the status of cargo from receipt, storage, and release of goods therefrom.

The transfer of containers from the port of discharge to an off-dock/of-terminal CFW must be covered by a transit permit single administrative document (P-SAD) together with other documentary requirements. The P-SAD will replace the current manual hard copy Permit to Transfer to off-doc/off-terminal CFW.

Each container must also be enrolled in BOC’s Electronic Tracking of Containerized Cargo (E-TRACC) System before final assessment of the P-SAD.

Containers transferred from the port of discharge to an off-dock/off-terminal CFW without being secured with an E-TRACC seal will not be allowed to be opened by any customs officer without approval of the district collector of the port of discharge.

BOC may also impose any penalty or sanctions that apply under the circumstances.

The IMS service provider will collect a fee of P225, inclusive of value-added tax, for the use of the web and device applications, cloud database, and support services for every released house bill of lading.

The IMS service provider will pay BOC a monitoring and supervision fee equivalent to 10% of fees collected exclusive of VAT.

BOC’s VASP accreditation committee will conduct an annual review of fees to be collected by the IMS service provider and may recommend changes subject to approval of the Customs commissioner.

Any CFW that obstructs or violates any provisions of CMO 21-2021 will be imposed penalties under Customs Administrative Order 09-2019 (guidelines on the establishment, operation, supervision, and control of CFWs). – Roumina Pablo