Thursday, December 9, 2021
HomeCustoms & TradeBOC seeks comments on rules for raw materials management system

BOC seeks comments on rules for raw materials management system

  • Position papers are requested on proposed order to have all registered customs bonded warehouses (CBWs) implement an automated raw materials management system (ARMMS)
  • Deadline for submission of position papers is May 12, the same day an online public consultation will be held
  • The proposed order will provide guidelines for operation and use of an automated inventory and monitoring system for imported raw materials that are entered into registered CBWs
  • ARMMS is an automated system to be adopted by CBW operators to determine and monitor the stock inventory of imported raw materials from the time these enter the CBW up to liquidation of the covering warehousing entry

The Bureau of Customs (BOC) is seeking position papers on the proposed customs memorandum order (CMO) to have all registered customs bonded warehouses (CBWs) implement the Automated Raw Materials Management System (ARMMS).

Deadline for submission of position papers by both private and public stakeholders is May 12, the same day an online public consultation will be held, BOC said in an invite on posted on its website.

The proposed order will provide the guidelines for the operations and use of an automated inventory and monitoring system for imported raw materials that are entered into registered CBWs.

The proposed order aims to protect the agency against revenue loss caused by possible diversion of raw materials, unauthorized withdrawal or ghost exportations.

According to the draft CMO, the ARMMS is an automated system to be adopted by CBW operators to determine and monitor the stock inventory of imported raw materials from the time of their entry into the CBW up to liquidation of the covering warehousing entry.

All CBWs granted a License to Operate by BOC should implement the ARMMS to be provided by the service provider accredited by the customs bureau.

The CBW operator must upload the latest inventory a day prior to the implementation or rollout of the ARMMS. The draft order noted that the latest inventory is critical to ensure that the inventory system is accurate and that the raw materials are liquidated.

The ARMMS will automatically update the account of the CBW operator and its member warehouse based on the actual approved transactions processed in the ARMMS.

The ARMMS withdrawal system will be based on a first-in, first-out (FIFO) scheme. The draft CMO said the FIFO scheme is critical in monitoring the period when goods are stored in the CBW warehouse and must thus be strictly followed.

BOC will also implement its Automated Bonds Management System (ABMS) in the Electronic-to-Mobile (E2M) System to ensure that all warehousing goods declaration filed in all ports by the CBW operator are covered by sufficient security bonds. In view of this, sufficient bonds must be made available in the E2M System before the entry is lodged.

The ARMMS fee structure per transaction to be implemented by the service provider, exclusive of value-added tax and other applicable taxes, is as follows:

  • P160 – per lodgment of arrival declaration (any type)
  • P160 – per lodgment of exports
  • P160 – per lodgment of transfer and withdrawal (any type)
  • P160 – per lodgment of constructive importation and exportation
  • P160 – generation of liquidation report
  • No charge – generation of any other type of reports

BOC will not collect any fees on behalf of the ARMMS service provider but it will collect from the service provider a service fee for monitoring and supervising ARMMS that is equivalent to 10% of the fees collected.

The BOC deputy commissioner for Assessment and Operations Coordinating Group will issue the necessary memorandum informing the implementation of the ARMMS for the different CBWs nationwide.

A 24/7 help desk will be provided by the accredited service to address any concern or issue that may arise with the ARMMS implementation.

Any person or entity who obstructs, or attempts to obstruct, the implementation of the proposed order and its related rules and issuances, or who provides assistance, or allows oneself to be used for this purpose, will be subject to civil, criminal and/or administrative penalties.

Any BOC official and/or employee that will violate any of the provisions of the proposed order or hinder its effective implementation will be immediately relieved, transferred to another office, or assigned to a less sensitive position.

The ARMMS service provider that is not able to meet its service level agreement target will be subject to penalties, while BOC may also exercise its right to revoke or pre-terminate the accreditation status of the service provider. – Roumina Pablo

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