CUSTOMS Commissioner Alberto Lina will reportedly sign this week the Customs Administrative Order (CAO) that will align customs procedures to provisions of Republic Act 9280 or the Customs Brokers Act of 2004.A source from the Professional Customs Brokers Association of the Philippines, Inc. (PCBAPI) told PortCalls the guidelines, to be released by Customs "anytime soon", will be implemented starting January 2006.
"This was disclosed by Customs deputy commissioner Roberto Geotina during the 11th National Convention of PCBAPI last Thursday," the source added.The CAO will define rules with regard to clearing procedures and other transactions with the BOC. Once signed by Lina, the order will go through final approval by the Department of Finance, after which a memorandum order will be issued.
The source claimed the final draft of the CAO contains a provision that specifically mandates corporations will no longer be allowed to offer brokerage services.Early last month, the logistics sector warned the BOC it cannot prohibit corporations from customs clearance activities as this will go against the provision cited in the law’s implementing guidelines."Only the Philippine Regulatory Commission can decide the fate of corporations on the practice of customs brokerage because the issue is about the profession. The BOC is clearly not affected by the law," the logistics sector claimed.
Port Users Confederation, which represents the sector, has already presented its proposed amendments on the CAO to the bureau.In a related development, a source from the Semiconductors & Electronics Industries in the Philippines (SEIPI) Traffic Managers Association (SETMA) said the Insurance Commission has cancelled all registration of insurance/bonding companies late Thursday.
"This means all insurance companies are, in effect, not in business unless renewed," the source said.
The source added all bonds issued have also been invalidated, thus disallowing brokers from releasing shipments using bonds, including surety, warehousing and re-export bonds. Releasing will only be allowed using a cash bond or domestic letter of credit.
