BOC Rules on the New Export Declaration Form (ED)

CIRCULAR LETTER Series of 1996

TO : All Authorized Agent Banks and OBUs

SUBJECT : BOC Rules on the New Export Declaration Form (ED)

For your information and guidance, attached are the following Bureau of Customs (BOC) Memorandum Orders signed by Commissioner Guillermo L. Parayno, Jr. both dated August 22, 1996:

1. Customs Memorandum Order No. 26-96 on "Electronic Declaration and Clearance Procedure of Export Shipments Under the Export Tracking and Monitoring System (ETMS); and

2. Customs Memorandum Order No. 27-96 on "New Export Declaration Form (ED) and Export Documentation Procedure".

Please inform you exporter-clients accordingly of these BOC rules.

EDGARDO P. ZIALCITA Deputy Governor

August 19, 1996*

CUSTOMS MEMORANDUM ORDER NO. 27-96

TO : All District Collectors of Customs  Chief, Export Division PID/CCCD,  All Others Concerned

SUBJECT : New Export Declaration Form (ED) and Export Documentation Procedure

Pursuant to the Export Development Council (EDC) Resolution No. 2 series of 1996 prescribing a new ED form, and as implemented by Department of Trade and Industry (DTI) Administrative Order (DAO) No. 3 Series of 1996, the following rules and regulations are hereby prescribed:

1. USE OF NEW ED FORM

1.1 Only the new ED form as shown in Annex A shall be allowed to be used in the export of goods (with or without foreign exchange proceeds).

1.2 The DTI, authorized issuer of the new ED form, has authorized through DAO No. 3 that any juridical person or entity may reproduce/reprint the form provided no alteration is made to the form and size (A4) as prescribed. Photocopied Eds can also be used.

1.3 There is no more need for exporters to submit the ED to an Authorized Agent Bank (AAB)/Offshore Banking Unit (OBU) for registration prior to filing with the Bureau of Customs (BOC).

1.4 Exporters may chose to file all accomplished Eds either at any One Stop Export Documentation Center (OSEDC) or at Export Division of the BOC whichever is more convenient, for processing and the issuance of the Authority to Load (AL). Accredited exporters have a third option of filing electronically ED's through the Export Tracking and Monitoring System as provided for under CMO 26-96.

1.4.1 The OSEDC/BOC concerned shall assign the ED number for identification purposes. The numbering system shall follow the following convention

AAA MM DD YY 999

Where AAA  - Acronym of the BOC Processing Unit MMDDYY     - Date of Receipt of ED 999               - Sequence Number of Receipt

Example:

POM0701001 is an ED filed with the Port of Manila on July 1 and it is the first ED received that day.

1.4.2 The assignment of ED Number for those filed under the ETMS shall be governed by the ETMS.

1.4.3 All EDs filed shall be in four (4) clear copies to be distributed and segregated by the OSEDC/BOC as follows:

Original

BOC copy is the working copy. This will be given back to the exporter in accompanying goods for loading

Duplicate

Exporter's copy

Triplicate

National Statistics Office (NSO) copy

Quadruplicate

DTI copy

It shall be the responsibility of the exporter to provide the AABs/OBUs or other interested entities extra copies of the accomplished ED for records purposes.

1.5 Filling up of the Boxes Nos. 5, 29, 33, 37, 40, and 46 of the new ED form is optional that is, they may or not be filled up by the exporter/declarant.

1.6 Regarding Boxes Nos. 22 and 42 of the new ED form in the exporter/declarant can also use the CIF or C & F value of the shipment, but the basis of the value shall be property indicated.

1.7 As regards Box No. 52 this shall be utilized for the signing of the AL. The instructions at the reverse side on Box 52 shall be disregarded.

1.8 All BOC units at the Philippine Economic Zone Authority (PEZA) areas: must have an authorized signatory for the AL who will serve both zone locators and non-locators.

2. USE OF THE GENERAL ED FORM

2.1 The use of the Monthly General ED at the option of the exporter, is allowed until further notice.

3. ISSUANCE OF THE CERTIFICATE OF ORIGIN (CO)

3.1 After loading, the BOC shall issue the appropriate CO upon request.

3.2 In case of EDs processed at the OSEDC — Manila, the (BOC) Export Coordination Division shall issue the appropriate Cos.

4. AMENDMENTS TO ED

4.1 Exporters shall inform the BOC in writing on all amendments to processed EDs prior to actual loading.

5. EFFECTIVITY

This Order shall take effect immediately.

GUILLERMO L. PARAYNO, JR. Commissioner

August 22, 1996

CUSTOMS MEMORANDUM ORDER NO. 26-96

SUBJECT : Electronic Declaration and Clearance Procedure of Export Shipments Under the Export Tracking and Monitoring System (ETMS)

1.0 Objectives

1.1 To facilitate and make convenient the export process and the export clearance procedure;

1.2 To prevent fraud on government revenue which "ghost" exports and other fraudulent practices in export result into;

1.3 To contribute in the prevention of pilferage in export shipments;

1.4 To harmonize Philippine Customs processes in exports with international best practices such as the use of electronic commerce and UN Edifact standards.

2.0 Scope

This Order shall apply to ports where ETMS is operational and for exporter's accredited/qualified to avail of the ETMS.

3.0 General and Operational Provisions

3.1 Electronic Declaration — Export declaration may be submitted by exporters or customs brokers electronically through the ETMS following a message format conforming to the UN/EDIFACT standard and utilizing the ETMS declaration module.

3.2 Arrival Notification — Whenever the Customs Export Declaration (CUSDEC) is filed through the system, a Customs Cargo Report (CUSCAR) shall likewise be submitted providing information to Customs of the arrival within two (2) hours time of the shipment covered by the CUSDEC at the port of exportation.

3.3 Time for Filing CUSDEC/CUSCAR — The exporters or the customs brokers shall accurately provide the information required in the CUSDEC and CUSCAR messages at least two (2) hours prior to the arrival of the shipment and not later than 2 hours prior to the loading time of the carrying vessel.

3.4 Electronic Authority to Load (EAL) — For export declarations coursed through the ETMS, the authority to load shall be issued to the exporter electronically also through the ETMS following the Customs Response (CUSRES) format. A photocopy of the EAL must accompany the shipment for presentation to the Port Gate personnel.

3.5 Designated Examination Area (DEA) — There shall be established DEA where shipments subject to derogatory information or are selected for examination following a rational selection process shall be opened for examination. Upon arrival of the shipment in the port, the electronically provided export declaration number must be entered into the ETMS terminal to ascertain the channel thru which the shipment will go thru as in 3.8.

3.6 Examination at Customs Bonded Warehouses (CBWs) — Export shipments coming from CBWs and coursed through the ETMS are exempt from examination at the CBW since they may be examined at the DEA.

3.7 Underguarding — For the same reason as in 3.6, underguarding of shipments from CBWs and coursed through the ETMS is hereby dispensed with.

3.8 Multi-Channel Processing — Export shipments coursed through the ETMS shall be cleared through one of the following channels:

3.8.1 C1 — Upon receipt of both CUSDEC and CUSCAR by the ETMS, a CUSRES will be sent back which constitutes the Authority to Load. Upon entrance of the shipment in the port, it shall be immediately allowed for export. The paper export declaration shall be filed with the Export Division of the port within five (5) days from issuance by the ETMS of the authority to load attaching thereto a printed copy of the authority.

3.8.2 C2 — Upon receipt of both CUSDEC and CUSCAR, a CUSRES message will be sent which will indicate that the shipment will be cleared under C2. The importer must then submit the paper export documents to the DEA with the shipment but the shipment may not be examined. Upon receipt of the shipment in the port, the arrastre operator shall bring the same to the DEA.

3.8.3 C3 — Upon receipt of both CUSDEC and CUSCAR, a CUSRES similar to 3.8.1 will be sent. Upon receipt of the shipment in the port, the arrastre operator shall conduct the shipment to the DEA for examination, clearance to load will be issued by the examiner at the DEA. As in 3.8.1, the paper export declaration shall be submitted with the printed copy of the authority within 5 days from receipt of the CUSRES.

3.9 Processing of the Paper Export Declaration — The paper ED in 3.8.2 shall be forwarded by the DEA to the Export Division of the Port. The ED, together with the ED in 3.8.1 and 3.8.3 shall undergo the regular processing and be transmitted to concerned Bureau offices.

4.0 Administrative Provision

4.1 Action Officer Responsible Officer — The Port Operation Service (POS) is hereby designated as the action office and the Service Chief thereof is the responsible officer for the effective implementation of this Order.

4.2 Management Committee — There is hereby created a management committee to support the POS in the implementation of the CMO and to devise measures to enhance the operation of the system for better accomplishment of the objectives of the CMO. It shall be composed of the following:

Chief, Port Operation Service Chairman Chief, Export Coordination Vice-Chairman Members:

1. Chief, Export Division, POM and MICP 2. Directors, ESS and CIIS 3. Chief, Piers & Inspection Division, POM and MICP 4. Supervisor for Export, DEA 5. Special Assistant for Warehousing, OCOM

Representative

4.3 Enrollment of ETMS Participants — The Management Committee shall set guidelines and criteria for participants to enroll in this ETMS process. Enrollment shall be based on compliance to the criteria. The Management Committee shall take all necessary measures to get all exports shipments covered by ETMS on or before 30 June 1998.

4.4 Trade Agreement — The following trade agreements must be entered into by all ETMS participants: to define their respective responsibilities and obligations as well as the resolution of conflict that may arise:

4.4.1 BOC-Exporters Trade Agreements 4.4.2 BOC-Arrastre Operator Trade Agreement 4.4.3 BOC-EDI-NET/GTEB/DTI Agreement 4.5 Office Orders — All offices concerned must issue respective office orders and organize the necessary work/task groups to implement the provisions of this orders.

5.0 Effectivity

This Order shall take effect 01 September 1996.

GUILLERMO L. PARAYNO, JR. Commissioner Footnotes

*  August 22, 1996, as amended