CCBI seeks deferment of BOC advance e-manifest submission order

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The Chamber of Customs Brokers, Inc. (CCBI) is asking the Bureau of Customs (BOC) to hold the adoption of the advance submission of cargo manifest to the new Advanced Manifest System (AMS) until all implementation issues have been resolved.

In a letter to Customs commissioner Isidro Lapeña dated May 18 and received on May 21, CCBI president Atty Ferdinand Nague said the chamber lauds BOC’s efforts to fast track and modernize its procedures but that it believes Customs Memorandum Order (CMO) No. 06-2018 should be deferred.

CMO 06-2018, which prescribes guidelines that, among others, mandates transmission—electronically and in portable document format (pdf)—of advance manifest and other documents (copies of bills of lading, commercial invoice and packing list) from foreign carriers, shippers, consignees and their authorized agents, took effect on May 7.

READ: BOC issues rules on advance submission of e-manifest under new AMS

CCBI took particular exception to the order’s Section 4.10, which states: “The carrier or its authorized agent shall obtain from the shipper the Commercial Invoice and Packing List for submission in searchable PDF to the Bureau’s Advance Manifest System at least twenty-four (24) hours prior to the arrival of the vessel or aircraft. The consignee shall be held liable for non-compliance of the shipper and may be subject to the payment of imposable fines in accordance with existing customs laws and regulations without prejudice to whatever legal recourse the BOC may pursue against eh delinquent consignee.”

Nague said chamber members are “confused” as to why consignees should be penalized for the shipper’s non-compliance.

“The shipper and the consignee do not have a principal-agent relationship so as to bind one party to the misdeed or failure of the other. It would be highly unfair to penalize the consignee over a matter it has no full control of,” Nague explained.

“Moreover, since this CMO provides for a penalty provision for non-compliance, the same should have the approval of the Secretary of Finance and with prior public consultation,” he added.

In addition, CCBI is asking for the deferment as the advance submission of manifest and other documents “might affect trade facilitation due to huge volume of files that will be required to pass through the infrastructure that will process the Advance Manifest System.”

As of the morning of May 22, Nague said BOC has yet to respond to CCBI’s letter.

AMS is not e2m

CMO 06-2018 is pursuant to Customs Administrative Order (CAO) No. 01-2016, which requires the advance submission of cargo information to provide the BOC more time to assess incoming cargoes.

AMS allows qualified importers or their authorized representatives to process in advance the goods declaration before the shipment arrives and to determine the pre-assessed customs duties, taxes, other charges, and other documentary requirements.

It must be noted that AMS is an entirely separate system from BOC’s electronic-to-mobile (e2m) system, which also requires electronic submission of the cargo manifest.

The new order does not follow the timelines for submission under CAO 01-2016, but instead adopts prescribed timelines under Republic Act No. 10863, or the Customs Modernization and Tariff Act (CMTA).

The AMS also does not require inputting of goods description, which is a requirement in e2m. Under AMS, the advance cargo manifest (of shipping lines and airlines) or consolidated cargo manifest (CCM of freight forwarders and consolidators) should be saved in a pdf file; shippers can attach as many pdfs as necessary.

Use of the AMS requires additional payment to the BOC-accredited value-added service providers.

Cargo information provided to AMS will be used in BOC’s risk management, anti-terrorism, law enforcement, and other related activities, CMO 06-2018  said.

For sea freight, a true and complete copy of the cargo manifest and CCM shall be electronically sent in advance by the shipping company, non-vessel operating common carrier, freight forwarder, cargo consolidator, or their authorized representatives within the cut-off period prior to the arrival of the carrying vessel at the port of entry.

If the transit time from port of origin to port of entry is at least 72 hours, the cargo manifest and CCM must be submitted electronically to BOC 24 hours before the carrying vessel arrives at the port of entry. If the transit time from port of origin to port of entry is less than 72 hours, the cargo manifest and CCM must be submitted 12 hours before the carrying vessel reaches the port of entry.

For air freight, the cargo manifest and CCM shall be electronically submitted in advance by the airline, air express operator, air freight forwarder, and de-consolidator also within the cut-off period before the aircraft arrives at the port of entry.

If the port of loading is in Asia, the electronic cargo manifest and CCM must be submitted one hour before the aircraft arrives. If the port of loading is other than Asia, the submission must be four hours before the aircraft lands.

Submission of the PDF cargo manifest and CCM by the freight forwarder, consolidator, or shipping line’s co-loader can be done even prior to the submission by the vessel operator.

Penalties

Under Section 1412, failure to transmit the electronic manifest within the time prescribed by BOC prior to the arrival of the carrying vessel or aircraft at the port of entry shall 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.

Section 1412 adds that if the transit time from the port of origin is at least 72 hours, the shipping or forwarding agent of the carrier or the vessel who fails to submit the manifest at least 24 hours before entry shall also be liable for the same rates.

Late submission of cargo manifest and CCM shall only be excused and not subjected to penalty in cases of force majeure or other unforeseen circumstances beyond the control of the carrier or his agent; technical problems at BOC; and other similar circumstances.

In any of the allowed circumstances, the cargo manifest/CCM may be submitted within 24 hours of the cessation of the incident.

The shipping company, NVOCC, freight forwarder, cargo consolidator, or their authorized agents shall likewise submit an electronic copy of the master B/L and house B/L/HAWB, as the case may be, in searchable PDF through the VASP/IAP to the AMS at least 24 hours before the vessel or aircraft arrives.

CMO 06-2018 also provides the procedures for submitting the stowage plan and containers discharging list, with timelines the same as for sea freight. For the load port survey, the accredited cargo surveying company shall submit the searchable PDF of the report in the AMS at least 24 hours before arrival of the vessel. Currently, LPS is only required for bulk and breakbulk shipments.

Cargoes/containers that are not listed in the IFM but are otherwise recorded in the stowage plan shall be covered by a supplemental manifest, to be submitted not later than 48 hours from date of discharge of the last package from the vessel. A supplement manifest for cargoes/containers not listed in the IFM and stowage plan can be sent not later than 24 hours from date of discharge of the last package from the vessel.

For air, the supplemental manifest shall be submitted no later than 24 hours from date of discharge of the last package from the aircraft. – Roumina Pablo

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