POWERPOINT PRESENTATION

NARRATIVE ON THE ENHANCED

VALUE REFERENCE
INFORMATION SYSTEM
(CMO 16-2020)

E-VRIS
FOR PPT SLIDE 1 AND 2
The Enhanced Value Reference Information System (e-VRIS) which was
launched on August 17, 2020 pursuant to Customs Memorandum Order (CMO) No. 16-
2020 serves as a risk management tool. It is being used to ascertain the veracity of
importers’ declaration in the E2M system thus, effectively determines probable
undervaluation and/or misclassification. Consequently, the Bureau has constantly hit
and surpassed its collection targets resulting to the increase in the annual revenue
collection.
E-VRIS as a database of reference values in the existing electronic to mobile
(E2M) system is designed to determine whether or not the declared value by the
importer actually represents the transaction value or the price actually paid or payable
when sold for export to the Philippines.
The Imports and Assessment Service (IAS) under the Assessment and
Operations Coordinating Group (AOCG) is the office primarily responsible for ensuring
the correct valuation and classification of imported articles and commodities and that
the reference values being inputted in the database are updated regularly and reflected
in the system. Relatively, tariff lines and specification codes are continuously enhanced
as well to build a quality valuation database to codify all invoice line descriptions of all
items being imported into the Philippines.

FOR PPT SLIDE 3

The following are key features of E-VRIS. First is the “Automated flagging of
potentially undervalued goods”, It also “Provides for look up table of identical/similar
entries in compliance with WTO Valuation Agreement and the CMTA”, “Specification
codes are now available to the importers”, “Scanning of import documents in the e2m”,
and "Requires assessment personnel to indicate Valuation Method used (Method 1 to
Method 6 of WVA and pertinent provisions of CMTA).

FOR PPT SLIDE 4

Although the e-VRIS was created to serve as a risk management tool that allows
customs officers to determine the possible undervaluation and/or trade mis-invoicing of
imported goods, the values stored in the e-VRIS, however, are not to be considered as
substitute values but only as reference values to assist assessment personnel in the
proper valuation of goods. Now here are the procedure for the proper use of E-VRIS:
1. First, the Importer, through its Customs Broker lodges the goods declaration in
their nominated Value-Added Service Provider (e.g. E-konek, Inter-commerce, or
CDEC). The declarant/customs broker then indicate the goods’ AHTN code and
select the Specification Code or the Coded Product Description. After submission
of the accomplished goods declaration (Single Administrative Document), the
VASP shall transmit the electronic copy of declaration in e2m.
2. On the second step, upon successful lodgment, the Goods Declaration
Verification System or GDVS will randomly assign the examiner who will review
the goods declaration. The assigned examiner then reviews the values declared
by the declarant/customs broker and verify if there is a valuation hit.
3. The e-VRIS then automatically identifies if the goods declared falls below the
minimum range of values, where it can be seen by the examiner by checking the
Valuation Record Button in the e2m System. The e-VRIS Database stores
importation record of the last 3 months and uses the Volume Weighted Average
of identical and similar article as its reference value. This is with compliance with
World Trade Organization Valuation Agreement.
4. In ascertaining the accuracy of the declared value or when the declared value
falls below the minimum range, the examiner will require the importer/customs
broker to submit supporting documents to justify the acceptance of the declared
value. The assigned examiner will notify and provide the importer with
reasonable opportunity to respond thru the Customer Care Portal System
(CCPS). This is in accordance with Section 707 of the CMTA.
5. Upon submission of the supporting documents by the importer/customs broker,
the assigned examiner will now review the authenticity and correctness of the
supporting documents proving the accuracy of the declared value.
6. When the importer was able to justify the acceptance of the declared value, the
examiner will input M1 in Box No. 43 (Valuation Method) of the e2m SAD.
7. The Goods Declaration will be forwarded to the assigned appraiser for final
assessment.
8. The goods declaration will undergo with the payment and release procedures.
9. If the importer/customs broker failed to submit the necessary documents to
support the declared value, or failed to justify the acceptance of the declared
value, the sequential application of valuation method shall be used, particularly
the transaction value of identical or similar goods, in accordance with Section
702 and 703 of the CMTA.
10. The examiner will now proceed to look up table for M2 (Identical Goods) or M3
(Similar Goods) in the e-VRIS Database as reference value. The assigned
examiner will then input M2/M3 in Box No. 43 (Valuation Method) of the e2m
SAD.
11. The Goods Declaration will be forwarded to the assigned appraiser for final
assessment.
12. And on the last step, the goods declaration will undergo payment and release
procedures when total amount of duties, taxes and other charges due on the
goods has been paid and clearance is secured.