Philippine importers, traders, indentors, producers, and customs brokers with shipments held due to compliance issues can now refer to a newly released memo from the Department of Trade and Industry (DTI) for guidelines on how to hasten resolution of pending applications for an import commodity clearance (ICC).
DTI issued Memorandum Order No. 15-752, dated April 27 and signed by Consumer Protection Group Undersecretary Atty. Victorio Mario Dimagiba, setting the guidelines for the processing of ICC applications tagged with show cause orders (SCOs) by the Bureau of Philippine Standards (BPS).
DTI said numerous ICC applications by importers were not processed by BPS as these importers were issued SCOs for violating DTI Department Administrative Order (DAO) No. 5-2008, which provides the rules and regulations for the issuance of ICC.
An ICC is a document specifying compliance of imported products covered by mandatory standards, as provided for under Republic Act 4109 (An Act to Convert the Division of Standards Under the Bureau of Commerce into a Bureau of Standards, to Provide for the Standardization and/or Inspection of Products and Imports of the Philippines and for Other Purposes) and DAO 5-2008.
DTI admitted that the process of SCO resolution is “taking some time due to the sheer number of pending SCOs and the same greatly affected numerous importers due to the delays in releasing their shipments from the Bureau of Customs (BOC), costing the importers millions of pesos in demurrage.”
Numerous ICC applications filed in 2014 and 2015 are pending under various stages of certification, such as awaiting product inspection and sampling; awaiting test reports from testing laboratories and by BPS product managers; and awaiting issuance of ICC itself, including the new applications received averaging 60 per day awaiting issuance of Certificates of Conditional Release, ICC Certificates and Exemptions.
DTI noted the long queues for product testing at some testing laboratories and non-payment of fees to inspection bodies as well as other administrative concerns also contribute to the delay.
Terms for release of ICC
Under the new memorandum, SCOs will be resolved immediately without penalty or fine and considered closed if applications involve the transfer of warehouse with prior notice given to the BPS.
The same verdict goes for applications involving transfer of warehouse without prior notice to BPS, but with product inspection and sampling already conducted and the inventory report showing the shipment is still complete or intact.
However, if the shipment is incomplete, SCO will be resolved according to the importer’s compliance, with the following conditions: first offense—reminder letter and case closed; second offense—stern warning; third offense—forfeiture of the surety bond.
As for applications involving transfer of warehouse without prior notice to BPS, and inspection, inventory, and sampling have not been conducted, these require inspection, inventory, sampling, and testing to be conducted.
If the shipment is complete, then the SCO is resolved without penalty. But if incomplete, it will be decided based on the importer’s compliance depending on the degree of offense. If the test report shows compliance with the standards, no penalty will be applied.
Moreover, for applications involving importations intended for the importer’s own use, the SCO will be resolved immediately without penalty and considered closed. A certificate of full exemption will also be issued, and importers will assume full responsibility for product safety.
New ICC, new B/L
Meanwhile, DTI said all new applications with a new bill of lading (B/L) will be processed and evaluated “to enshrine compliance to rules and issuance of Show Cause shall be issued in justifiable cases for the interest of public safety.”
If the importer applying for a new ICC under a new B/L has a pending importation-related administrative case before the DTI, BOC, or other government agencies, ICC application will still be accepted and processed. However, for criminal cases, such as smuggling, forgery, bribery, and falsification of documents, among others, it will not be accepted until the case is resolved in favor of the company. Otherwise the company will be blacklisted by the BPS.
As for 100% identical specification and description, the results of six months’ validity of test reports shall be applied to six items—pneumatic tires, plywood, ceramic tiles, circuit breakers, flat glass, and electric fans. ICC applications for these products pending before the BPS but with test reports from previous importation covered by the validity period will be processed and the requisite ICC certificate and stickers will be issued.
However, product testing will still be conducted and product recall required if the product report shows non-compliance with requirements and standards.
The memorandum also encourages importers to immediately settle unpaid inspection fees with BPS-designated inspection bodies.
To facilitate approval of the Certificate of Conditional Releases, Certificate of Exemptions and ICC Certificates, four authorized signatories have been designated by DTI.
DTI also reminded employees and officials of BPS, inspection bodies and testing laboratories, as well as importers, traders, customs brokers, indentors, and manufacturers to police their own ranks and report any forms of bribery, graft and corruption.
In October last year, DTI relaxed certain requirements for the filing of ICC to expedite trade and help decongest Manila ports.
Under DTI Memorandum Circular No. 14-1571, the certified true copy of an import entry need not be submitted upon application but upon the release of the ICC certificate.
A notarized secretary’s certificate clearly setting forth the authority of the person dealing with BPS may be submitted instead of the required board resolution. – Roumina Pablo
