Mandatory adoption of PH automated export system scheduled in June

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The supplemental Customs Memorandum Order (CMO) implementing the Philippine Bureau of Customs (BOC) electronic-to-mobile Automated Export Declaration System (e2m-AEDS) has been signed, with full rollout expected in June.

CMO 7-2012 was signed by Customs Commissioner Rozzano Rufino Ruffy Biazon last May 4 and will take effect 15 days after publication in a newspaper of general circulation.

The CMO’s release is the only stumbling block before BOC mandates full implementation of the e2m-AEDS on June 1, said BOC Management Information Systems Technology Group division chief Nomie Gonzales in a recent briefing.

Under the system, the BOC will no longer accept dual processing — manual and electronic — of export entries. This means all authorized forwarders/brokers and/or exporter’s representatives should file export entries of their client-exporters electronically through any one of the BOC-accredited value-added service providers, InterCommerce Network Services, Cargo Data Exchange Center and E-Konek Pilipinas.

The e2m-AEDS covers Export Declarations (EDs) processed at the Export Division of the BOC and at the PHILEXPORT (Philippine Exporters Confederation, Inc) One-Stop Export Documentation Center for loading at all BOC ports nationwide.

Excluded from e2m-AEDS are all EDs filed at the following economic zones: Philippine Economic Zone Authority (PEZA) Economic Zones and I.T. Parks; Freeport Area of Bataan; Clark Special Economic and Freeport Zones; and Subic Special Economic and Freeport Zones.

These zones will continue to use the PEZA Expanded AEDS, Authority of the Free Port Area of Bataan/Subic Bay Metropolitan Authority AEDS and the Clark Development Corporation AEDS.

 

Exporter as declarant

Some refinements have, however, already been made on AEDS even before its full rollout, according to PortCalls sources. The fine-tuning mainly centers on how the controversial exporters’ authorized representatives (EAR) will be recognized by the system.

Under CMO 7-2012, the EAR is a CPRS-registered broker who is not a Professional Regulation Commission-licensed broker authorized by an exporter to sign and process his/her ED and accredited through procedures defined under the single administrative document.

As of last week, EAR is already being implemented under AEDS simply as “exporter as declarant”.

 

CPRS Procedures

As a pre-requisite to using the e2m-AEDS, exporters, as well as their authorized forwarders/brokers and/or exporter’s representatives, must be registered under the BOC’s Client Profile Registration System (CPRS) for exports.

CPRS registration is being implemented by PEZA for its locators; the International Coffee Organization Certifying Agency for its accredited exporters; the Board of Investments (BOI) for companies registered with it; the Bureau of Export Trade Promotion for exporters accredited under the Export Development Act and PHILEXPORT, the umbrella organization of Philippine exporters and the lone private sector CPRS accrediting organization, for its members.

BOI and other government agencies have their own units attending to CPRS applications.

Upon completion of their CPRS registration, exporters will get their Certificates of Registration (COR) which bear their Customs Certificate Number. The COR will have to be presented to the Authorized Agent Banks (AAB) accredited by the BOC for e2m-AEDS for enrolment of the exporters’ bank account.

The AABs shall then provide exporters with the Bank Reference Numbers of their enrolled account, which the AAB shall also electronically transmit to the BOC. Payments for the documentary stamp fee will be debited from the said account.

 

Philippine exporters’ reactions

Emmanuel Prado from Paqualife Corporation, exporter of marine products, was furious when he learned about the policy only last week.

“Show me the document that proves that there is such a policy,” he said, adding that this will make their life more difficult based on the company’s experience using the BOC’s Import Assessment System (IAS) for its raw material sourcing. The IAS implements a separate CPRS for imports.

Ajun Valenzuela, executive director of the Chamber of Furniture Industries of the Philippines (CFIP), was surprised because he felt there should be a dry run first and another hands-on seminar to ensure exporters’ proper compliance.

CFIP is the umbrella organization of Philippine furniture exporters and a member of PHILEXPORT. So far, less than 1,000 PHILEXPORT members have been accredited under the CPRS for exports.

Dennis Orlina, President of the Philippine Chamber of Commerce and Industry, earlier expressed issues against the “high” rates for CPRS accreditation.

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