The proposed order providing new rules to register third parties conducting business with the Philippine Bureau of Customs (BOC) has been released for public review.
The draft customs administrative order (CAO), the first to focus exclusively on rules and regulations governing the conduct of third parties, will implement Section 1226 and other relevant sections of Republic Act No. 10863, otherwise known as the Customs Modernization and Tariff Act (CMTA).
Position papers will be accepted until October 13, the same day as the public hearing on the proposed order.
Under the draft, a third party refers to any person who deals directly with BOC, for and on behalf of another person, relating to the importation, exportation, movement, or storage of goods.
Third parties are private carriers, common carriers for transit cargoes, airline representatives or airline ground handling agents, shipping agents, pipeline operators, freight forwarders, consolidators, deconsolidators, non-vessel operating common carriers, and logistics providers.
Deconsolidators handling balikbayan (personal effects) boxes, importers and exporters, customs bonded warehouses, and customs facility warehouses, all acting as third parties, shall be covered by respective rules that apply to their operations.
Third parties will be supervised and regulated by the customs bureau in relation to the importation, exportation, movement, storage, and clearance of goods done for another person.
Those that are regulated by other government regulatory agencies may also be allowed to transact with BOC, provided they are registered and authorized to engage in such business by the primary regulating agency. Those which have been delisted by these primary agencies will be barred from transacting with BOC.
Third parties transacting with BOC on behalf of importers and consignees are to be treated as true importers or consignees, governed by the same regulations applicable to the registration of importers. They will also be liable for acts that violate CMTA and other related laws.
Third parties should apply for registration through BOC’s accreditation office or its equivalent unit, individually or through their organization, and provide the documentary requirements.
All registration applications shall be approved or disapproved within 10 working days of receipt of complete documentary requirements.
There will be an annual registration fee of P1,000, the fee subject to periodic review in accordance with Section 1301 of the CMTA and applicable rules and regulations.
Validity of registration
Registration of third parties shall be valid for one year from the date of its approval, unless the accreditation is suspended, revoked, or cancelled. Third parties must file for renewal with the bureau 30 calendar days before their registration expires.
BOC, through a customs memorandum order, may allow one-time registration privilege to registered third parties with a high level of customs compliance record, under the Authorized Economic Operators and other trade facilitation programs.
The draft order also notes that carriers transporting imported goods that shall be placed under customs transit from a port of entry to other ports must post at least P50,000 as general transportation security. The security is to ensure that the goods will be delivered completely and immediately to the customs officer at the port of destination and that pertinent customs charges and expenses and other transfer costs will be paid, according to the draft order.
BOC shall suspend or revoke the registration of third parties that are proven, after due notice and hearing, to have violated customs laws and other laws, rules, and regulations. This is in addition to any criminal charge and administrative sanctions which may be imposed by the primary regulating agency. – Roumina Pablo
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