(REPUBLIC OF THE PHILIPPINES Departiient of Finance BUREAU OF CUSTOMS MANILA 1095 May 12, 2010 CUSTOMS MEMORANDUM ORDER NO. (ea PROCEDURE FOR THE BULK AND BREAK BULK CARGO CLEARANCE ENHANCEMENT PROGRAM MANDATED UNDER ADMINISTRATIVE ORDER (AO) NO. 243 AS AMENDED BY AQ 243-A, Pursuant Lo Customs Administrative Order (CAQ) No. 43-2010, the following procedures are hereby prescribed to ensure the effective implementation of Administrative Order No. 243 dated 13 October 2008, as amended by AO 243-A dated 16 September 2609, entitled “Creating « system for the Bulk and Break Aulk Cargo Clearance Fnhancement Program (BRBCCEP) of the Bureau of Customs (BOC}’. 1. Objectives: ast Yo generate inpre revenues for the government V2 te curb technical smuggling committed — Uirough misdeciaration, misclassification and undervaluatian 13 To facilitate the movement/release of imported articles covered by Load Port Survey Reports. 4 Io provide procedures for imported articles covered by Destination Port Survey Reparls. 2. Definition of Terms 24 Accredited Cargo Surveying Company (ACSC) - 1» surveying Company possessing a duly approved accreditation issued by the Committee for Accreditation of Cargo Surveying Companies (CACSC). 22 Committee for Accreditation of Cargo Surveying Companies (CACSC) - the accreditation commitllee created under AO 243, as amended, directly under ihe supervision and control of the Office of the President tasked and authorized lo grant and approve accredilation of cargo surveying companics and perioilically review (he performance thereof. The CACSC may also investigate violations of the pravisions of this Order and thereafter suspend and/or revoke the accreditation given ta a cargo surveying company. 23 Bulk Cargo Refers lo cargoes in a mass of one commodity not packaged, bundled, bottled ar otherwise packed 24 Break-Bulk Cargo” Refers to non-containerized general cargo stored in boxes, bales, pallet or otlier incivieial units to be loaded .onlo or dschamed from vesebs, not Shipped in containers or in bulk Load Port Survey (LPS) Report — 4 ;oport issued by an ACSC [or Bulk/reak-Bulk Carga to be imported into the Philippines. The report shall be submitted to the BOC directly trom the ACSC in a secure electronic format. 2.6 Discharge Port Survey (DPS) Report A report issued by an ACSC for Bulk/Break-Bulk Cargo after the conduct of a survey at the port of discharge. 2.7 One-Stop Shop (OSS) ~ as used in this Order shall mean the compasite unit headed by the Deputy Cominissioner for Assessment and Operations Group (AOCG) and composed of representatives trom the Office of the Commissioner (O.COM) Management Information System and Teclnalogy Group (MIST), Enforcement Group (EG), Post-Entry Audit Group (PEAG), Risk ‘Management Office (MO), representatives of the Department of Trade and Industry (DTI) and Private Sector wha are also memhers of the CACSC, and representative of the Office of the Presidential Adviser on Revenue Enhancement (QPARE). The OSS shall be responsible for cantirmingfapproving requests for DPS made by importers of shipments nal covered by the required LPS Reports, 2.8 Motor Vehicles for Special Purpose — as use| in this Dicer, those: motor vehicles equipped to function for a special purpose, e.g. cranes, backhoes, bulldozers, ambulances, buses, funeial hearses, ard Une like. 3 Coverage This Order shall cover all Philippine hound bulk ane break-butk cargoes/shipments loaded unto carrying vessels. The categories of goods covered include bul are not limited to he following: 4.11 Liquids 3.2.2 Chemicals J.34 Petroleum Products 34.5 All other cargo shipped in Bulk/Ureak-Gulk the duties anit taxes of which are normally determined ny weight (6.9. wood, sieel, cial, grains, etc.) 4 Administrative Provisions 4.1 LPS Report and Summary Repart (SR): 41d The LPS Report to he issued by the ACSC after a full survey of quantity and quality of the Bulk/Break-Bulk Cargo should detail, but not be fimites! to, the following a Desctiption of gools & Shipper (as declared) = Receiver (a5 declared) : 6. Other intervening parties (name are capacity, 3s devine): a: ddfmmyyy oF ram/dd/yy4.2 43 Quantity of the consignment; Quality of the consignment Grade of the Cargo (where applicable) Prive oF valuw uf the rary (as declan cst) Classification of the cargo (as declared by the Part oF Fodding Name of the vessel mm. Halt ur hotel number Dale and lime or estimated cate and lime of departure of the vessel from port of toading Bills Of Lauiny ehetslls Mu. x dd soc soe Surveyor's seals details (where applicabley Ports of call of vessel (as declaied by vessel) Additional tnformation such as additional resting results as may be required hy the Wurea uf Customs necessary in datermining the value, tariff classification anul/or assessment of shipments covered by this Order ror \purter or exparter) = cere The LPS shail be accompanied by a Summary Report (SR) which shall contain such information as the BOC and CACSC shall require in such formal as shown in Annex “A" hereof whicl is likewise: mace am integral part of this Oreler 4.1.2 The (PS Report and SR must be received by the ADC at least twelve (12) hours before the arrival of the cargo in the Philippines and shall be transmitted to the MISIG of the BOC and the CACSL and tn accordance with the dissemination list under 4.4 hereot The LPS and the SR must be submitied in a secure clect oni format wilh security tealures in the forn of a hologram, micro Print, encrypted gal or equivalent. 4.1.3. The importer may use the [PS Report ancl its Sk lw vail oF the aflvanve clearance procedure. The 1PS Report and its Si containing Ue findings at ACSC shall be used by the BOC aaminers/Appraisers in the determination af dutlable weight, volume, descriprian, value and tariff classification of uporied articles, without prejudice to actual verification as the need arises Pending: the development of the appropiate modute under the Bureau's €2m system for the advance submission in electrons format of the survey reports and summaries, submission of the same shall be subnilted by the ACSC to the MISTG'S secured andl authorized welysile. MISTG shall be the official repository of all survey data under (his program. Io facilitate the processing of survey data, AL required to provide harcware/sofiware 8s part af the ‘suilding Program for the exclisive Use. of BUBCCEP. SCs ane ‘apacily The following offices shall be stmullancously given boll election. copies of all Port Surveys by MISTG, whether | PS or MPS ~ Office of the Conmnitssioner Deputy Commissioner for Assessment and Operations Grauip. ~ Beputy Commissioner for Intelligence and Invesugatian, Deputy Cornissioner for Enforcement Post Eniry Audit Group * F where the shipments Import Entries are tose 4? 48 - CACSC {hard copy) Capacity Building programs for BOC persannel in the form ot technical training and continuing education in cargo surveying techniques shall be provided by the ACSC elther in 3 Philjypine ov International forum. To declare the commitment of ACSCS to the Capacity Building-Program for cargo surveying, a Capacity Building Undertaking Farm is hereby required from all ACSCs, In addition, upon prior consultation with the. concerneal private sector/s CACSC. shall recommend to the Commissioner of Customs other benefits uncer this program that may be granted to compliant importers within the framework of the Tariff and Customs Code of the Philippines as amencled (TCP). Shipments inspected by the ACSC al Une loading port shall pyina facie be deemed lo have heen examined for customs purposes pursuant fo Section 1401 of Ue ICCP, as amended, anu shall no longer be re-examined upon arrival in the country but shall instead be immediately released/transferred to the imporler/consignee’s warehouse or facility following the procedures described in this Order except in the following situation: a. The surveyors report has been Lampered or shows signs that the same has been allered. b, The shipment is covered by an alert or hold order issued pursuant to existing orders. «. Upon request of the importer if he disagrees with (he findings of the surveyor. d. If the Commissioner or the Collector has deroyatory Information that there is a substantial variance between the declared and true quantity, measurement, weight ancl tavitt classification of the shipment Request for the conduct of OPS shall be filed wilh the OSS, which is headed by the Deputy Commissioner, AOCG. The OSS shall confirm the ACSC chosen by thé Importer or authorized representative to conduct the DPS unless there are justifiable reasons which would mandate the OSS ta choose otherwise, sucl as, but not limited to: constraints in the ACSC’s available manpower, expertise, facilities, and the like. 5 Operational Provisions: bl ‘The importer must inforrn his exporter of the requirements of this Order and shall ensure that the cargoes are surveyed by an ACSC It is the responsibility of the imparter of bulk and break bulk cargo lo obtain from the BOC the names and overseas addresses ot ACSUs and to communicate this information to the saller/exporter of the goods must contact the nearest office of the ACSC selected! Sp his: cargo falling under the coverave af AC) ?anes Order and provide a full description, technical specification and quantity of Ihe cargo Ihe exporter must-advise the selected ACSC of the whereabouts anid availability of (ne cargo al teast three (3) workiny days prior ta the required date of survey. ‘The exporter must resent the goois in a manner to allow a full survey ta be conclucleéd. They must arrange and allow full access to the representative (surveyor) of the ACSC to allow a full survey to be conducted and submit complete capites of the final Invoices to the ACSCs, ‘The foregoing applies even to partial/splil shipments, The ACSC must make avallable to all interested patties the Tequirements of AQ 243-4 and (his Older and the auliresses of {heir affices/representatives in each country of supply. They rust arrange to stvey the cargo within three (3) working days of receipt of the request to survey fron the exparter They must Complete the siivey anil seal the holes where Necessary prior to. the vessel Salling ancl issue the [PS brian to the arrival of the shipment in the Phiippines within the prescribed perior) Any importer obtaining the services of an ACSC pursuant to the preceding Section shall he allowed to tle entries for the importen arlicles and pay the proper duties, taxes, and other fees therctor prior to ils arrival in the Philippine port af destination, Provided that 2-5-1 The entry contains a full and true stateinent of all the articles whiclt are the subject of the importation: 5.32 Declaration executed by the importer/consignee: under atta on the following: a. The invoice ane entry contain a just and faithful account OF the actual coal of sald articles, including and specifying the cost of insurance and freight anu other necessary charges, and that nothing has been omitted there trom oF concealed to the detriment of the proper collection ot revenue by the Government; he The, invoire anel all, bis oF lacting relating to the articles art the: only ones in existerice relating to the importation ln question; Tee entry, invoice and Lill of lading, ancl the: detaration thereon ate in.all respecis genuine and true, and were fade hy the person hy whom the same purportedly Ines been made. As son as the cargo arrives at the Philippine port of lestination, ihe Importer may imunediately Cause the discharge: and! wilhdrawey Bf te same from customs premises anci/or custody provide! trap Hie Heclaralions in the import entries arc confined by the tie, Report and upon presentation of’ the Proof of payment of duties, exes and other fees as well as compliance wilh other pre-requisite 4 valid importation5.10. 5.14. Tn the event that the shipment 1s covered by an alert orcier or that the shipment is different from the details in the entry, the Customs Inspector of the Customs Guard assigned on board the vessel shall return the delivery permil to the Formal Entry Divisions (alin: the concemed examiner/appraiser) invtirating therein the exact location fof the shipment for the usual customs examination and processit) of the entry. ‘The Port Collector shall cause the utilization of the LPS Report and Ihe SR issued by an ACSC as integral parls of the documentation required for the clearance of Bulk/Break-Bulk Cargo uw Ul determination of dutiable weighl, volume, description, value and lariff classification of imported articles, without prejudice to att aciual verification as it may be deemed proper Shipments requiring the LPS without undergoing the same shall he subjected to the DPS by an ACSC selected by the importer ancl cantirined/approved by he OSS In the event the importcr/consignee wishes to contest/re-contirn the LPS conducted, he may request, at his own costs, tar the conduct of a OPS in accordance with the procedures herean whch shall he performed by an ACSC other than the one which cunducted the LPS. in this eventuality, the BOC shall determine. whieh results (Linder the LPS or DPS) to apply for its purposes. In requesting for the DPS, the importer shall inform the O55 of the need theretar at least three (4) days prior (a the estimated date or arrival of Lhe shipment In addition to the formal request for DPS, the unporter, consignee or his authorized representative shall accomplish ana execute under oath the importer’s referral or informatian sheets shown in annex “8” hereof, the requiemenis therein being deemed as forming an integral pail of this Order and submil the same directiy fo the OSS. The importer shall likewise indicate. in, the referral its preference of the ACSC to conduct the DPS The OSS upon ieceipt of Uke accomplished importer’s retenal o1 information sheet shall immediately assign the chosen ACSC to conduc the surveying actwites. the ACSC preferred by the importer shall he given priority in the assignment unless there are valid reasons for the assignment by the OSS of a differenl ACSC tu conduct the DPS. Tn the event that no preference ts indicated by the importer or that the preferred! ACSC cannot conduct the DPS, and that the OSS wall have to make the assignment, an impartial system which ensures non favoritism or non-bias tor choosing the ACSC shall be emplayed, The choice of ACSC lo perform the surveying activities at the discharge port shall depend on the commodity and tie avaltability/capability of the ACSC'S Services to conduct the surv fer the subject commodity, For this purpose, all ACSCS are required to provide the CACSC and the BOC an updated list of all commodities that Couli be subject of their serxices, their accredited 3 (local) and their authorized survey personne),‘Within twenty fours (24) upon notification by the OSS, the chasen ACSC for the BPS shall endeavor to conduct th tivity except when the surveying could not be Conducted for reasons beyantl he eontrol of the ACSC, Additional expenses incurred by the importer in the form of storage and demurrage fees orrasioned by te faire of the ACSC to conduct surveying activity within ihe prescnibed period without any valid reason shall be horne by the ACSC 5.16. a the event the chosen ACSC cannot perform the services fur whatever reason, it shall immediately infarm the OSS, or the authorized customs official as the case may be, wlio shall immediately assign an alternate ACSC to conduct the activity. The {allure of the designated surveyur to perform his abligation shall be immecliately reported to the CACSC for ils appropriate action. 5.16 Copies of the DPS shall be submitted in hoth electronic and hard copies within twelve (12) hours upon termination at the surveying activities containing the details specified in 4.1.1 hereor Appeals Tn the event that the importerfconsignee disagrees with [he findings mace under the DPS, the importer/consignee may resort la payment af the duties and taxes due under protest, including the applicable tine/penalty, or cause the Lentative release of the shipment under such conililions «is the Collector may impose. The same appeal procedure for protest or for eases covered by the rules for Valuation and Classification Review Cases, as the case may be, shall be observed h Risk Shipment 74 Bulk and break-bull shipments not covered by the required (PS from any of the ACSC which are shipped on or titteen (15) days from the date of publication of this Order shall be considered as shipments in deliberate Groumvention of AG 244-4 and this Crder and as high risk, AS such, they shall be subjecter! to extensive actual physical examination, cantinuous underquerdiny until accomplishment ancl submission of the DPS and other applicable control, the payment of the duties and taxes due the shipment including any administrstive fine as may be imposed by the Bureau 2.2 Circumvention must be considered deliberale whenever any of Uw Fallowing obtains: =. There is misdeclaration, undervaluation or musclassification evidencing prima facie fraud. b. ‘The importer cannot prove Lat the tailure to subjert the Shipment to (PS was unintentional; and The firma is a reridivist (three or more offenses), 7.3 For customs control purposes, high risk shipment shall not te granted permits to discharge and shall remain under continuous customs under guarding until the DPS has heen conductest by the ACSC assigned for the purpose and the report thereon submitted nd full payment of the correct dulies and taxts, including any fine -, hawe been macte.8 — Schedlule of Charges and Fees. The services af the ACSCs pursuant to this Order shall entail no cost or charge for the government of the Republic of the Philippines. For additional services to the BOC, the ACSC shall he allowed to charge a fee in accordance wilh infermational standards and practices but in ni cask to exceed one-half of one percent (0.5%) af the FOB value of the cargo, This fee shail be payable by the exporter, unless otherwise agreed upon by aiid between the importer and expaiter. 9 Suppletary Clause. The e-Commerce law and its implementing regulations, wiher Customs Laws, Rules and Regulations shall have supplelory effect on this Order 10 Separal ty Clause. In the event that any legisiation, governmental regulation or court decision causes invalidation of any part, article or section of this issuance, all other parts, articles and sections not so invalidated shall remain in full force and effect 44 Effectivity. - (his Order shail take effect immediately. NAPOLEOWD. 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