The draft customs administrative order (CAO) providing new rules on the registration procedure for customs brokers has been released for public review by the Department of Finance and Bureau of Customs (BOC).
Stakeholders have until May 24 to submit their position papers, the same day as the public hearing on the proposed order.
The draft CAO will implement Sections 1200 and 1226 and other relevant provisions of Republic Act No. 10863 or the Customs Modernization and Tariff Act (CMTA).
The draft order covers the registration of customs brokers and their authorized representatives transacting with BOC.
Under the proposed order, brokers who will lodge and process goods declaration, representing importers or exporters, at BOC need to register and obtain a Certificate of Registration from the BOC.
Registration is not required when the customs broker is engaged in the practice of the profession other than lodgement, signing, and processing of goods declaration, and representing importers or exporters.
Neither is it required if a customs broker is a trader or importer dealing in customs and tariff transactions at BOC solely for his/her own account and not in behalf of another, provided that the customs broker must be accredited as an importer.
Lastly, registration is not required for a customs broker who is also an employee of a customs broker and acting solely for his/her employer, subject to two conditions: that the customs broker’s name appears on the certified list of customs broker-employer’s representatives or any addition to the list submitted by the customs broker-employer; and that the customs broker is a holder of a valid Customs Pass issued by BOC’s Enforcement Security Service.
BOC’s Account Management Office (AMO), or its equivalent office, will be responsible for the registration of customs brokers.
To register, customs brokers must accomplish the application form under oath and file a copy with AMO after paying the P1,000 registration fee, attaching the BOC official receipt.
The application should be accompanied with verified photocopies of supporting documents, which are the Valid Professional Identification Card; Client Profile Registration System; Bureau of Internal Revenue registration (Form No. 2303); Good Standing Certificate issued by the accredited professional organization; duly accomplished form (a certified list of regular clients, or Affidavit of No Client for new customs brokers); and a certified list of the customs broker’s representatives with their specimen signatures to be accomplished in the prescribed form, or Affidavit of No Customs Broker Representative.
The draft order notes that the customs broker’s representative must be a full-time regular employee of the customs broker authorized to act on his/her behalf in following up the processing of entries, permits, and other customs documents related to the customs broker’s practice of profession, and must possess the qualifications as required by the Customs commissioner through a corresponding customs memorandum order.
The Customs commissioner may limit the number of customs broker’s representatives commensurate to the number of transactions of every customs broker in each port. The access pass issued to the customs broker’s representative must be surrendered by the customs broker-employer to BOC if the registration of the latter in the bureau is revoked, is cancelled, or has expired.
The approval or disapproval of the application may be delegated by the Customs commissioner to the head of AMO; in either case, the application for registration shall be approved or disapproved within five working days from the date the complete documents were received.
If an application is disapproved, a signed notice of disapproval clearly stating the grounds shall be served to the applicant, copy furnished the APO. The applicant customs broker may re-file his/her application any time.
The customs commissioner may create AMO satellite offices at any strategic areas or ports outside Metro Manila. If there are no AMO satellite offices yet, for applicants outside Metro Manila, the application together with supporting documents may be filed with the Customs Intelligence and Investigation Service (CIIS) of the customs district where the customs broker regularly transacts business.
For an approved application, a Certificate of Registration is valid for three years from the year of issuance unless suspended or revoked for cause. This is provided that every year in between the three-year period the customs broker must update his/her profile and submit an Affidavit of Change of Circumstances if there are any material changes on the original application form, or an Affidavit of No Change if there are no changes.
BOC, through a CMO, may also allow a one-time registration privilege to a registered customs broker with a high-level of customs compliance record under the Authorized Economic Operator and other trade facilitation programs.
The Certificate of Registration must be renewed one month before it expires. No renewal of application will be accepted if the Certificate of Registration has been revoked for cause during the valid period, unless lifted by the Customs commissioner.
If the customs broker fails to renew his/her accreditation, the accreditation is considered expired or delisted; the customs broker will thus not be allowed to lodge or file a goods declaration with BOC.
One month after the previous registration expires, the customs broker may apply for a new registration.
The registered customs broker’s duties and responsibilities, under the CAO, include lodgment of goods declaration, record-keeping, and mandatory maintenance, and updating of electronic mail addresses and contact numbers.
Grounds for revocation of registration include deliberate failure or unjustified refusal to comply with the duties and responsibilities prescribed under the CAO; and violation of customs laws and regulations.
Violators will be fined P100,000 on first offense, P200,000 on second offense, P300,000 on third offense, and P300,000 plus perpetual disqualification from transacting with BOC on fourth offense. – Roumina Pablo
Image courtesy of David Castillo Dominici at FreeDigitalPhotos.net
