The Customs Modernization and Tariff Act (CMTA) may be signed into law by Philippine President Benigno Aquino III this week, Customs commissioner Alberto Lina told PortCalls at the sidelines of Bureau of Customs’ (BOC) 114th anniversary celebrations on February 4.
The CMTA, ratified by Congress on February 2, is a priority measure under the Aquino administration. It seeks to overhaul the BOC and update the Tariff and Customs Code of the Philippines.
READ: Bicameral committee approves Customs modernization act
In a speech at the BOC event, Lina said CMTA “makes the Bureau compliant with the World Customs Organization’s directive to all member countries in fully digitizing Customs operations.”
For a copy of the CMTA-ratified version, click here.
Under Section 109 of the approved version, BOC “shall utilize information and communications technology to enhance customs control and to support a cost-effective and efficient customs operations geared towards a paperless customs environment.”
Curiously though, the approved measure still requires shipping companies, non-vessel operating carriers, freight forwarders, cargo consolidators, or their agents, upon arrival of the carrying vessel, to provide two hard copies of the cargo manifest to the BOC in case the port of entry is either the Port of Manila or the Manila International Container Port, or one hard copy in the case of the other ports of entry.
Some key CMTA provisions:
- The engagement of customs brokers as goods declarant is mandatory for two years. Beyond that, the services of brokers as declarant will be optional.
- De minimis value (amount by which no duty will be collected on goods) now at P10,000 from P10. This amount will be adjusted by the Finance secretary every three years.
- Duty exemption on personal and household effects worth P350,000 for returning residents, or nationals who have stayed in a foreign country for a period of at least 10 years and have not availed of this privilege within 10 years prior to arrival; P250,000 for those who have stayed in a foreign country for a period of at least five but not more than 10 years and have not availed of this privilege within five years prior to arrival; and P150,000 for those who have stayed in a foreign country for less than five years and have not availed of the privilege within six months prior to arrival. The amount in excess will be subject to duties and taxes.
- Tax and duty exemption on P150,000 worth of home appliances and other durables of returning overseas Filipino workers (OFW). The item to be brought home is limited to one of every kind and the sending of such is also limited to once in a given calendar year accompanying the OFW on their return. The excess amount will be subject to corresponding taxes and duties. The Finance secretary will, every three years, adjust the amounts of goods that are duty and tax-exempt, taking into consideration the consumer price index as published by the Philippine Statistical Authority.
- Simplified procedure in the clearance of postal item or mail, including the collection of the applicable duties and taxes on such items or goods.
- Simplified customs procedures based on international standards and customs best practices for air shipments considered as time-sensitive and requiring pre-arrival clearance. Express shipments of accredited air express cargo operators may be released prior to the payment of the duty, tax, and other charges upon posting of a sufficient security.
- Goods intended for transit to be covered by provisions under Republic Act No. 10668, or the Foreign Ships Co-loading Act. Republic Act (RA) No. 10668 or “An Act Allowing Foreign Vessels to Transport and Co-Load Foreign Cargoes for Domestic Transshipment and For Other Purposes” allows foreign shipping lines to dock at multiple Philippine ports and co-load import and export cargos cleared by the Bureau of Customs.
- Duty and tax free for relief goods imported during a state of calamity. Upon declaration of a state of calamity, clearance of relief consignment shall be a matter of priority and subject to a simplified customs procedure.
- The BOC shall be headed by a commissioner appointed by the President. There should be four, but not more than six, deputy commissioners, also appointed by the President, majority of whom shall come from the ranks of the bureau. (Currently, none of the deputy commissioners are from the BOC ranks.)
- Customs officers or employees of any other government agency charged with violating CMTA’s provisions and found guilty of any delinquency will be imprisoned not less than six years and one day but not more than 12 years, and perpetually disqualified to hold public office, exercise the right to vote and to participate in any public election and fined from P500,000 to P1 million. – Roumina PabloImage courtesy of [name of the image creator] at FreeDigitalPhotos.net
