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Panasonic Philippines gets AEO accreditation
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Panasonic Manufacturing Philippines Corp. becomes the second recipient of Level 1 accreditation under BOC’s Authorized Economic Operator Program
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Toyota Motors Philippines Corp. was the first importer to gain AEO accreditation
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As Level 1 operator, PMPC is eligible for self-assessment, supplementary goods declaration and a dedicated help desk
Panasonic Manufacturing Philippines Corp. (PMPC) has become the second company granted Level 1 accreditation under the Bureau of Customs’ Authorized Economic Operator (AEO) Program.
PMPC makes, imports and distributes electronic, electrical, mechanical and electro-mechanical appliances, other types of machines, parts and components, as well as battery and related products bearing the brand name Panasonic.
Toyota Motors Philippines Corp. was the first importer to be granted AEO accreditation.
BOC launched its AEO Program in December 2019 to comply with the country’s commitment to the World Customs Organization’s SAFE Framework of Standards to Secure and Facilitate Global Trade.
The AEO Program represents a customs-to-business partnership that seeks to enhance international supply chain security and facilitate movement of legitimate goods.
Implementation of the AEO Program in the Philippines became possible with the passage in 2016 of Republic Act No. 10863 or the Customs Modernization and Tariff Act.
An AEO is defined as a party involved in the international movement of goods complying with WCO equivalent supply chain security standards. AEOs may include manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors.
Among the benefits of AEO-accredited companies from the robust security measures are increased visibility of goods in the supply chain, reduction in pilferages, and greater efficiency in supply chain management.
The accredited operators will also be recognized as “trusted allies by the BOC” entitled to dedicated processing lanes, resulting in reduced processing periods; last priority when it comes to post-entry audit; recognition as “low risk” company; reduced inspection or expedited clearance by other customs authorities should certified status be also recognized by other countries under a Mutual Recognition Agreement established by bilateral or multilateral arrangements; and other trade facilitation benefits the BOC may grant under existing rules and regulations.
READ: BOC launches AEO program for 2020 implementation
Once granted, the AEO Program accreditation will last until it is suspended, revoked, or cancelled through voluntary withdrawal from the program.
As an AEO, PMPC will be exempt from renewal of accreditation under any customs accreditation system.
In lieu of the annual renewal of accreditation, AEO members are required to periodically update their information and corresponding documentary requirements pursuant to the membership responsibilities of an AEO member under Customs Memorandum Order No. 09-2020.
CMO 09-2020 provides guidelines for pilot implementation of the AEO program for importers and exporters.
PMPC as a Level 1 operator is eligible for self-assessment, supplementary goods declaration, and a dedicated help desk.
The AEO Office may consider upgrading a Level 1 operator to Level 2 or 3, depending on degree of compliance with accreditation requirements.
For Level 2 operators, benefits include those for Level 1 plus a dedicated processing lane, advance clearance process, periodic lodgment, one-time exemption certificate, and expedited customs clearance for exports.
A Level 3 operator will have extended additional benefits that the customs commissioner, in consultation with the AEO Office to be created, will identify.
AEO companies, however, are still subject to post-clearance audits to ensure compliance.
BOC earlier said part of its 10-point priority program this year is to fully operationalize and promote its AEO program.
This year, BOC will be granting accreditation to top importing companies while completing the construction of its AEO office.
The agency will also actively participate in the development of an AEO mutual recognition arrangement (MRA) with all Association of Southeast Asian Nations member-countries.
An MRA is a formal document between two or more customs administrations outlining the circumstances for recognizing and accepting the AEO programs of the signatory parties.
BOC earlier said it would take part in meetings to develop an ASEAN AEO mutual recognition arrangement to be completed by 2025.
Aside from importers and exporters, other stakeholders will be eligible to apply for AEO accreditation. BOC said it will issue a separate order to implement this. – Roumina Pablo
