The Philippine Bureau of Customs (BOC) has provided new guidelines on the implementation of the square root rule for shipments with multiple containers that are tagged “red” under the agency’s selectivity system.
BOC deputy commissioner for Assessment and Operations Coordinating Group Atty. Edward James Dy Buco in a memorandum dated October 27 ordered that import entries of the same bill of lading (B/L) with several containers regardless of size are entitled to the square root rule “rounded off to the nearest higher whole number.”
Square root rule is an algorithm used by BOC in inspecting multiple containers in a single shipment of a consignee that are tagged under the red lane of BOC’s selectivity system. This means BOC can inspect a certain number of containers, and not all, for compliance.
The memorandum notes that the rule is being implemented “to better facilitate trade and [ease] congestion in all ports of entry.”
Under the memo, two containers will be subjected to x-ray for every shipment with four containers; and three containers for every shipment with six to nine containers.
Containers/shipments eligible for the square root rule will be randomly selected by the customs commissioner or his delegated authorized representative.
All shipping containers included in the import entry that will benefit under the square root rule “shall be first prevented exit until such time all subject containers have been cleared and undergone the x-ray examination.”
The October 27 memorandum supersedes Dy Buco’s memorandum dated October 23.
Currently, BOC implements an 80% threshold for the red lane, which means 80% of daily shipments get directed to this lane to undergo the required documentary review and x-ray inspection. The remaining 20% are tagged for the yellow lane, which only requires a documentary review. This setup, however, is only implemented in ports other than Port of Manila and Manila International Container Port, as the two ports currently enforce a rule of 80% of shipments directed to the yellow lane and 20% to the red lane. BOC’s green lane is still suspended. – Roumina Pablo
Image courtesy of tawatchai at FreeDigitalPhotos.net
