BOC’s regulated imports list for strict compliance by April

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Customs Commissioner John Phillip Sevilla
Customs Commissioner John Phillip Sevilla
Customs Commissioner John Phillip Sevilla

The Bureau of Customs (BOC) will release online the final version of the first master list of all regulated import products and their corresponding import requirements by April 6, and will ensure its strict compliance by importers and customs staff starting four days later.

Customs Commissioner John Phillip Sevilla, in a press conference on February 16, said BOC is working with government agencies that require import permits in finalizing the BOC Regulated Imports List (RIL).

The RIL, first posted on the BOC website on February 12, is a draft document that enumerates all regulated imports and provides detailed information about the procedures for acquiring the necessary permits for them.

The list and the documents containing the detailed information may be downloaded from http://repository.gov.ph/customs/ and through the other links provided on BOC’s website.

“By making the list of all regulated products and their corresponding import regulations and required clearances/permits readily available online, we are empowering the public so they can transact with the Bureau with less hassle and at the same time eliminate any room for corruption in our personnel,” Customs chief John Sevilla said.

The RIL comes in three versions of identical content categorized in three different ways: by specific product in alphabetical order; by broad category of product, then within each broad category, by specific product, both in alphabetical order; and by the name of the regulatory agency for that product in alphabetical order.

As with the BOC’s monthly update of import entries, all versions of the RIL are in Excel format that can be searched, but not modified, filtered, or manipulated. They must be copied into a separate Excel file and altered from there.

Sevilla clarified that the RIL is not a new set of requirements, but only a black-and-white codified version of all existing import requirements and procedures per concerned government agency. Some of the requirements are existing without importers being aware of them because implementation is consistent. Sevilla noted BOC made an effort to eliminate duplications in requirements but there remains overlapping with one or two agencies.

Since import requirements or regulations can change over time, regulating agencies are requested to email BOC no later than March 2 for any errors, omissions, or changes in their requirements. The BOC likewise is asking for updates on changes to their regulations on imports at least one month before implementation. The list, Sevilla said, will be updated as soon as changes are made. He added that BOC will write the agencies to request for updates.

As for concerns over security and hacking, Sevilla said they are confident about the capabilities of the host they have tapped to create the documents. He added the threat of faking or hacking the documents should “not mean you have to hide the information.”

To further disseminate information about the RIL, Sevilla said BOC will soon call for meetings with industry stakeholders particularly since by April 20, BOC will strictly implement all the requirements on the master list. Sevilla pointed out that shipments that will not follow the list will be seized. Any customs personnel who will let a non-compliant shipment through or require additional document not specified on the RIL will be charged with administrative cases.

Stakeholders praise list

Customs brokers welcomed the new development. Samson Gabisan, director of the Chamber of Customs Brokers, Inc. (CCBI), told PortCalls “this is a big help to us.”

Rolando Quiambao, president of Nonpareil International Freight and Cargo Services, Inc., said that with the list, importers and customs brokers will have information on whether an article requires an import permit.

Quiambao noted of instances when customs personnel would not approve the release of a shipment, saying it required an import permit when in actuality it did not. He added that the two-month window for importers and customs brokers to familiarize themselves and comply with the RIL is enough.

Sevilla, for his part, said the master list will help minimize corruption and make the importing process transparent.

“Some importers and brokers would resort to bribery just to make their transactions with the bureau faster, and at the same time, with little or no knowledge of the import process, traders are often victimized or exploited by unscrupulous customs employees,” he said.

“By making the list of all regulated products and their corresponding import regulations and required clearances/permits readily available online, we are empowering the public so they can transact with the Bureau with less hassle and at the same time eliminate any room for corruption in our personnel,” the Customs chief added.

Codifying all three requirements means less legwork for importers and brokers as they won’t have to go from one agency to another just to inquire about the permits or clearances needed for importation, Sevilla said.

Moreover, by taking stock of all regulations, permits, and clearances of various government agencies, BOC was able to see that many products require clearances from multiple agencies.

“We are hoping this would also serve as a catalyst of change for the different regulatory bodies to revisit their rules or regulations so that in the future we can have unified clearances for products that are presently requiring more than one permit to import,” Sevilla said.

“I suspect that with this list out we can cut about an hour’s processing time,” but noted this is a “very rough estimate.”

The Customs chief earlier announced that by the second half of 2015, BOC aims to clear 90% of all import shipments four hours from filing of complete requirements.

The Customs chief said that each day, BOC processes 3,000 transactions for formal entries, 1,000 for informal, 800 Philippine Economic Zone Authority shipments, and 400 for exports per day.

Of these, only formal entries are 100% filed electronically; exports are 75% automated, and PEZA and informal entries are both manually filed. Sevilla said they will soon roll out automation of PEZA transactions with BOC. However, he added they cannot require all informal entries to be lodged electronically.

Aside from the RIL, Sevilla said BOC is preparing a similar master list for exports and prohibited imports.

Vetting COOs

Another requirement BOC is working on is the verification of certificates of origin (COOs) of imports under preferential trade agreements with some countries. Sevilla said 20% of all imports use COOs, and it sometimes takes days and weeks to verify, prolonging the clearance of shipments.

Moreover, Sevilla disclosed that a separate team is working on the National Single Window (NSW), with the goal of having all regulating agencies use the platform. Sevilla said that at present, less than 10 government agencies of the more than 30 intended users are using the platform. The NSW is a computerized Internet-based system that allows parties involved in trade to lodge information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements.

Meanwhile, Sevilla said BOC has already procured and is ready to deploy new computer sets at all its offices nationwide. He said all major customs ports will be equipped with computers and improved Internet services by the end of February, and all customs offices nationwide by the end of March.

The Enhanced Integrated Customs Processing System, which is currently undergoing bidding by the Department of Budget and Management, will be fully online by the middle of next year. Sevilla said the system is likely to be usable for most types of transactions only near the end of this year. – Text and photo by Roumina Pablo