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HB 1653 Presentation (CCBI July 07, 2011)

HB 1653 Presentation (CCBI July 07, 2011)

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HB 1653 and Its Impact to Customs Brokers

by: Atty. FERDINAND A. NAGUE Chairman, Professional Regulatory Board for Customs Brokers
July 07, 2011

OVERVIEW
What are Customs Brokers?  RA 9280 & RA 9853  HB 1653  Crazy Rationale  Amendatory Provisions  Impact to the CB Profession  PRBCB Plans  Concerted Actions Needed 

Customs Broker .A customs Brokerbroker who is accredited by CASCASCustoms Legal Service to practice in the Bureau of Customs. (RA 9280) Customhouse Broker. (CAO3(CAO32006) .Any Person who is a bona fide holder of a valid CR/PIC issued by the PRB-CB and PRBPRC.

Practicing Professional - . regularly or occasionally. laws. whose and duties require knowledge application of their respective professions as defined in various professional regulatory laws.Any person who is engaged in the practice of his/her respective profession or is performing acts or activities. including those holding positions in the government or private firms. whether occasionally.

27 & Sec. 29 of RA 9280 . Prohibition Against Corporate Practice (now: Admission to Professional Practice)  . Acts Constituting the Practice of CB .Sec.Amending Sec.Sec.RA 9280 as amended by RA 9853  RA 9280 CUSTOMS BROKERS ACT OF 2004 Regulating the Practice of Customs Broker Profession in the Philippines. 27. 29. RA 9853 .

Dec.Effectivity of RA 9280/9853 & IRR  EFFECTIVITY OF RA 9280 April 21.took effect on April 22. 03. PRBCB RESOLUTION NO. 01. 2005. BOC yet to issue CAO implementing RA 9853  . 2004. 2005. S. PRBCB RESOLUTION NO. 15. 2009 (During the 14TH CONGRESS).took effect in 2006 3-2006EFFECTIVITY OF RA 9853 .took effect on 2005March 27. 012010. CA0 3-2006-A.

delegate the signing and processing of the document to his designated customs broker or authorized representative. 27. (Sec. CUSTOMS BROKERS. 1. (Sec. ACTS CONSTITUTING THE PRACTICE OF 27. RA 9853) 9853) . That export declaration shall be signed by the exporter or at his option. Now: Now: Import entry shall be signed by a customs broker and the consignee/owner/importer under oath based on the covering documents submitted by the importers: importers: Provided. Import and export entry declaration shall be signed only by customs broker under oath based on the covering documents submitted by the importers.RA 9280 provisions amended by RA 9853  SEC. representative.

BOC. RA 9853] Sec. 2 (2nd par. That such corporations engaged in the business of customs brokering shall have a minimum paid-up capital of PHP1M paidPHP1 before they are accredited by the BOC.). par.Meaning of ³Engaging in the ³Engaging Business of Customs Brokerage´ Brokerage´  Meaning of: Making representations on behalf of importer-clients in the Bureau of importerCustoms and other government agencies: agencies: Provided. [Sec. 9853] .

RA 9280 provisions amended by RA 9853  SEC. broker. nothing in this Act shall prevent a corporation from being registered for the purpose of engaging in the business of customs brokerage as long as the corporation shall engage or hire the services of at least one (1) customs broker. profession. No firm. RA 9853) 9853) . admission to which shall be determined upon the basis of individual and personal qualifications. Now: Now: ADMISSION TO PROFESSIONAL PRACTICE. PRACTICE. company. PROHIBITION AGAINST CORPORATE 29. 29. (Sec. or association may be registered or licensed as such for the practice of customs broker profession. 2. PRACTICE. The practice of customs broker is a professional service. (Sec. However.

. 01-2010: shall be signed by the exporter or at his option. delegate the signing and processing of the document to his designated customs broker or authorized representative who shall be a full time regular exporter s employee knowledgeable in customs and tariff. (Sec. PRBCB Res. 01-2010: That export declaration Res. No. 01-2010 01RA 9853: Provided. (Sec. That export declaration shall be 9853: signed by the exporter or at his option.Amendatory Provisions of PRBCB Resolution No.1) (Sec. (Sec. No. 2) tariff. delegate the signing and processing of the document to his designated customs broker or authorized representative .

01-2010: shall prevent a corporation from being registered for the purpose of making representation on behalf of importer-clients in the Bureau of Customs and other importergovernment agencies as long as the corporation shall engage or hire the services of at least one (1) customs broker in his professional capacity. 01-2010 01RA 9853: However. nothing in this Act shall prevent a corporation 9853: from being registered for the purpose of engaging in the business of customs brokerage as long as the corporation shall engage or hire the services of at least one (1) customs broker. (Sec. broker. 01-2010: However. (Sec. No. To avoid confict of interest a customs broker may not enter in to engagement with more than one (1) corporation.Amendatory Provisions of PRBCB Resolution No. capacity. corporation. 2) PRBCB Res. (Sec. nothing in the RULES Res. (Sec. 2) . No.

par. RA BOC. Sec. Sec. [Sec. [Sec. as such only the name of the Professional Customs Broker shall appear in the import entry for lodgment with the BOC.Amendatory Provisions of PRBCB Resolution No.). 6. 01-2010 01 Meaning of Making Representation in Behalf of the Importer-Clients in the ImporterBureau of Customs: Shall refer only to activities other than those in Sec. 2 (2nd par. 6. Article II of RA 9280 and Sec. 9853 . Rule II of the IRR which enumerate the scope of the customs broker profession.

Preparation.Scope of CB Practice under RA 9280     Consultation Preparation of customs documents Declaration of customs duties and taxes. filing. lodging and processing of IMPEX entries and documents Representing importers and exporters before any government agency and private entities in cases related to valuation and classification of imported articles  . signing.

its procedures and practice. Teaching Customs Administration subjects in HEIs.Cont.   .  Rendering of other professional services in matters relating to customs and tariff laws. Private employment requiring professional knowledge in customs and tariff.

Trade transactions are simplified .HB 1653 and its crazy Rationale  By allowing any person doing business as IMPORTERS/EXPORTERS to exercise some of the functions of CBs (except (except CONSULTATIONS/TEACHINGS): .Eliminate Red Tape .Reduce Cost .PHL Products more competitive .

AVOID RED TAPE . By allowing AUTHORIZED REPRESENTATITVES of importer/exporter to sign Import entry and Export Declaration: .

Business pursuit requires no professional.Questionable Wisdom of HB 1653        Author is not aware of RA 9853 since Dec 2009. Importers/Exporters may now become professional smugglers under HB 1653. educational and ethical standards. HB 1653 was filed during the 15th Congress while RA 9853 was already a law during the 14th Congress. They seem to forget that CB is a regulated profession acquired through individual and personal qualification with degree requirement and professional ethics. . Smuggling will flourish even more. Government is shortchanged and revenue is compromised.

CAMPAIGN AGAINST HB 1653.PRBCB PLANS  A BIG NO TO HB 1653!         CLOSE MONITORING OF EVENTS IN CONGRESS (i. SOLICIT THE SUPPORT OF PRC. ACTIVE PARTICIPATION IN CONGRESSIONAL hearings . . CONTINUOUS CONSULTATIONS WITH THE CHAIR OF THE HOUSE MOTHER COMMITTEE ON CIVIL SERVICE AND PROFESSIONAL DEVELOPMENTS.e. public hearings and consultations). SUBMIT POSITION PAPER AGAINST HB 1653. RUFUS RODIRGUEZ. MEETING/BRIEFING WITH CONG. CONTINUOUS CONSULTATIONS WITH CCBI..

 . COLLECTION OF REVENUE AND PREVENTION OF SMUGGLING AND ANTI-SOCIAL GOODS.DATA NEEDED  SOMEBODY HAS TO CHAMPION THE ECONOMIC ACTIVITY AND FINANCIAL IMPACT (FOR IMPORTERS/EXPORTERS) INVOLVED IN ENGAGING THE SERVICES OF A CUSTOMS BROKER (If any negative impact). and PREPARE A MEANINGFUL AND VERY GOOD POWERPOINT PRESENTATIONS ABOUT THE FUNCTIONS AND ESSENCE OF CUSTOMS BROKERS IN THE BOC.

Q&A .

THANK YOU and GOD BLESS CUSTOMS BROKERS! .

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