ABEL 313-1M Brokerage Operations

Atty. Philip Edwin S. De Ello

1st Semester, Academic Year 2023-2024

I. Class Orientation (PW1)

Mission and Vision of PATTS – please see orientation slides.

II. Fundamental Powers of the State Part with Special Focus on Police Power (PW2)

a. Fundamental Powers of the State (Remember PET)

1. Police Power
a. Definition (Remember PEL-CG) – [the constitutional Power granted to the congress to Enact Laws for the Common
Good] (Southern Luzon Drug Corp. v. DSWD, GR No. 199669, Apr. 25, 2017, J. Reyes)
b. Scope - regulates property and liberty of private persons (Cruz, 2007, p. 40)
c. Characteristics (Remember ML-MC)
i. Most pervasive
ii. Least limitable
iii. Most demanding
iv. For the public welfare [or Common good]
 d. Exercise (Remember L-PAS)
It is the power vested in the Legislature by the Constitution to make, ordain, and establish all manner wholesome
and reasonable laws, statutes and ordinances, either with penalties or without, not repugnant to the Constitution,
as they shall judge to be for the good and welfare of the commonwealth, and of the subjects of the same (Southern
Luzon Drug Corp. v. DSWD, GR No. 199669, Apr. 25, 2017, J. Reyes)

By virtue of a valid delegation of legislative power, it may also be exercised by the President and Administrative
boards as well as the [Sanggunian of local government units] (Cruz, 2007, p. 46)

e. Tests of the Police Power (Remember Ls-Lm)

i. Lawful Subject – the subject xxx affects the public welfare (Cruz, 2007, p. 49)
ii. Lawful Means – both the end and the means must be legitimate (Cruz, 2007, p. 56)

Lawful Subject - any subject could be regulated if it affects public welfare (supra). Hence, Congress
has enacted laws to ensure the safe and efficient air transport system of the Philippines --

Government offices responsible for the safe and efficient air transport system of the Philippines:
(Remember CAB and CAAP)
a. Civil Aeronautics Board – created under RA No. 776, and
b. the Civil Aviation Authority of the Philippines – created under RA No. 9497.

2. Eminent Domain
a. Definition (Remember PAPP-CG) - the right or Power of a sovereign state to Appropriate Private Property to
particular uses to promote public welfare [or for the Common Good] (NTC v. ODC, GR No. 223366, Aug. 1, 2017,
J. Mendoza)
b. Scope
General Rule: Anything that can come under the dominion of man is subject to expropriation (Cruz, 2002, p. 67)
Exception: (Remember MC)
i. Money [because it is a futile act to pay money for money] and
ii. Choses in action [or a right to sue because it is essentially conjectural as to validity and value] (Cruz, 2007,
p. 68)

c. Exercise
[It] is lodged primarily in the national Legislature, but its exercise may be validly delegated to other
governmental entities and, in fact, even to private corporations, like the so-called quasi-public corporations
serving essential public needs or operating public utilities (Cruz, 2007, pp. 63-64)

Under Existing laws, the following may exercise the power of expropriation (Cruz, 2007, p. 64): (Remember
LPS-QP)
a. The [Legislature],
b. The President of the Philippines,
c. The various local legislative bodies [or local Sanggunian],
d. Certain Public corporations, like the xxx National Housing Authority,
e. Quasi-public corporations like the Philippine National Railways, the [PLDT], and the Meralco.

d. Just Compensation - the full and fair equivalent of the property taken from its owner by the expropriator (Evergreen
Manufacturing Corp. v. Republic, GR No. 218628, Sept. 6, 2017, Acting C.J. Carpio)
 3. Taxation
a. Definition (Remember PLEC) - the method [or inherent Power] by which [the State, by virtue of its sovereignty,
Levies Enforced proportional Contributions from persons and property for the support of the government and for all
public needs (Cruz, 2007, p. 86)
b. Scope (Remember CAISOS) - So pervasive that [it] reaches even the Citizen Abroad and his Income earned
from Sources Outside the State (Cruz, 2007, p. 86)
c. Exercise (Remember LS) - Primarily vested in the national Legislature, it may now also be exercised by the local
legislative bodies [or local Sanggunian] xxx pursuant to a direct authority conferred by [the Constitution] (Cruz,
2007, p.88)
d. Public Purpose - Taxes are exacted only for a public purpose. They cannot be used for purely private purposes or
for the exclusive benefit of private persons (Planters Products, Inc. v. Fertiphil Corp., GR No. 166006, Mar. 14,
2008, J. R.T. Reyes)

III. Customs Broker Act of 2004 (PW3)

RA No. 9280 – this Act shall be known as the “Customs Brokers Act of 2004” (Sec. 1)

Declaration of Policy – it is hereby declared the policy of the State to give priority attention and support to professionalizing the practice of
customs brokers profession in the Philippines which will be beneficial to the country in general and to the economy in particular (Sec. 2)

Objectives – this Act provides for and shall govern (Sec. 3): (Remember SRe/ERb/SCRp)
a. The Standardization and Regulation of customs administration education;
b. The Examination and Registration of customs brokers; and
c. The Supervision, Control and Regulation of the practice and customs broker profession.
 Definition of Terms – for purposes of this Act, the following terms are hereby defined (Sec. 4):
a. Customs Broker – is any person who is a bona fide holder of a valid Certificate of Registration/Professional Identification
Card issued by the Professional Regulatory Board and Professional Regulation Commission.
b. Commission – as used in this Act shall refer to the Professional Regulation Commission.
c. Board – as used in this Act shall refer to the Professional Regulatory Board for Customs Brokers.

IV. The Board (PRBCB) Part 1 (PW4)

Professional Regulatory Board for Customs Brokers (PRBCB)

– there is hereby created a Professional Regulatory Board for Customs Brokers, hereinafter referred to as the Board
under the supervision and administrative control of the Professional Regulation Commission (PRC), hereinafter referred to as the
Commission,
to be composed of a chairman and two (2) members
who shall be appointed by the President of the Philippines
from among the list of three (3) recommended for each position submitted by the commission
from a list of five (5) nominees for each position submitted by the accredited professional organization of customs brokers.
The new Board shall be constituted within three (3) months from the effectivity of this Act (Sec. 5)

Composition – a chairman and two (2) members

Appointing Authority – the President of the Philippines appoints the members

Recommending Authority – the PRC submits a list of three (3) recommendees

Nominating Authority – the accredited professional organization of customs brokers submits a list of five (5) nominees
Qualification of the Chairman and Members of the Board – The chairman and members of the Board must, at the time of their appointment
(Sec. 8): (Remember CR-GMC/NOTcmt-DCA/RLcb-10-NOTfcasPI-NONO)
1. Be a Citizen and Resident of the Philippines;
2. Be of Good Moral Character and
must NOT have been convicted of any crime involving moral turpitude;
3. Be a graduate of Bachelor’s Degree in Customs Administration or a holder of a Master’s Degree in Customs Administration
conferred by a college or university duly recognized by the government,
or Registered and Licensed customs broker before the effectivity of this Act;
4. Be registered and licensed customs broker with a valid Certificate of Registration and Professional Identification Card, with at least
ten (10) years of experience prior to his appointment;
5. NOT be a member of the faculty, whether full-time or part-time, of any school college or university with a regular and/or review
course in customs administration is taught,
nor shall have any Pecuniary Interest in such institution; and
6. Not be an incumbent Officer of the accredited National Organization of customs brokers.

Moral Turpitude – acts that are contrary to justice, modesty, or good morals, or an act of baseness, vileness or depravity in the
private and social duties which a man owes his fellowmen, or to society in general (Buenafe v. COMELEC, GR No. 260374, June
28, 2022)

The following are citizens of the Philippines (Sec. 1, Art. IV, Constitution): (Remember CPFN-17)
1. Those who are Citizens of the Philippines at the time of the adoption of this Constitution;
2. Those whose [either Parent is a citizen] of the Philippines;
3. Those born before Jan. 17, 1973, of Filipino mothers, who elect Philippine citizenship upon reaching the age of
majority;
4. Those who are Naturalized in accordance with law;
5. Foundlings (Poe-Llamanzares v. COMELEC et al, GR No. 221697, Mar. 8, 2016)

Pecuniary (Interest) – financial (interest) (Teves v. COMELEC et al, GR No. 180363, April 28, 2009)
V. The Board (PRBCB) Part 2 (PW5)

Term of Office (Sec. 9) – (Remember 3-2nd-UP-OA)

The members of the Board shall hold office for a term of three (3) years OR
Until their successors shall have been appointed or qualified.

They may, however, be reappointed for a second (2nd) term.

Any vacancy in the Board shall be filled for the Unexpired Portion of the term only.

Each member shall take an Oath of office prior to the Assumption of duties.

Compensation and Allowances of the Chairman and Members of the Board – the chairman and the members of the Board shall receive the
compensation and allowances comparable to the compensation and allowances received by the chairman and members of other
professional regulatory Boards (Sec. 10)

Suspension and Removal of the Chairman and Member of the Board (Sec. 11) –
The chairman or any member of the Board
Disciplining Authority - may be suspended or removed by the President of the Philippines upon recommendation of the Commission

Grounds (Sec. 11) – for (Remember A-COIN etc.)

1. Neglect of duty,
2. Abuse of power,
3. Oppression,
4. Incompetence,
5. Unprofessional, unethical, immoral, or dishonorable conduct,
6. Commission or toleration of irregularities in the conduct of examination or tampering of the grades therein, or
7. for any final judgment or Conviction of any criminal offense involving moral turpitude by the court after having been given the
opportunity to defend himself in a proper administrative investigation
 Supervision of the Board, Custodian of its Records, Secretariat and Support Services –
The Board shall be under the general supervision and administrative control of the Commission.

All records of the Board, including application for examination, examination papers and results, minutes of deliberations, administrative
and other investigative cases involving customs brokers, shall be kept by the Commission (Sec. 12)

VI. The Board (PRBCB) Part 3 (MW7)

Powers and Functions of the Board – The Board shall have the following powers and functions (Sec. 7): The Board shall have the following
powers and functions:
a. Promulgate, administer and enforce rules and regulations, including the Code of Ethics and Code of Technical Standards of customs
brokers necessary for carrying out the provision of this Act;
b. Supervise and regulate the licensure, registration and practice of customs brokers profession;
c. Determine and evaluate the qualifications of the applicants for registration with or without the prescribed licensure examinations and
for the issuance of special or temporary permits;
d. Prepare and modify the questions for examination and prescribe the syllabi of the subjects for examination and their relative weight;
e. Register successful examinees in the licensure examination and issue corresponding Certificate of Registration and Professional
Identification Card;
f. Issue special or temporary permits to foreign customs brokers for specific projects and for specific duration of time;
g. Look into the conditions affecting the practice of customs brokerage, adopt measures for enhancement of the profession and the
maintenance of high professional, technical, and ethical standards, and conduct ocular inspection of places where customs brokers
practice their profession;
h. In coordination with the Commission on Higher Education (CHED), examine the prescribed facilities of the universities or colleges
seeking permission to open the course or programs of customs administration in order to ensure that standards and essential
requirements for a qualified dean and faculty, and adequate budget are properly complied with and maintained;
i. Investigate violations of this Act, its implementing rules and regulations, and the Code of Ethics for Customs Brokers;
j. Issue subpoena and subpoena duces tecum to secure the attendance of respondents or witnesses or the production of documents
relative to the investigations conducted by the commission;
k. Prepare guidelines for the Continuing Professional Education (CPE) in coordination with the accredited professional organization;
and
 l. Perform such other powers, functions, and duties as may be necessary to effectively implement this Act.

Annual Report (Sec. 13) – The Board shall, at the close of each calendar year, submit an annual report to the Commission, giving a
detailed account of its proceedings and accomplishments during the year and recommending measures to be adopted with the end in view
of upgrading and improving the condition affecting the practice of customs broker profession in the Philippines.

VII. Licensure Exam Part 1 (MW8)

Licensure Examination – applicants shall undergo an examination as provided in RA No. 9280. The exams shall be given by the Board
at least once every year in such places and dates as the Commission may designate in accordance with the provisions of RA No. 8981.
(Sec. 14)

Scope of Examination – the scope shall include but not limited to the following (Sec. 15): (Remember PWD-CT)
a. Customs Laws and Implementing Rules and Regulations;
b. Tariff Laws and International Trade Agreement;
c. Practical Computation of Customs Duties, Taxes and Other Chargers;
d. Documentations, Professional Ethics, Customs Procedures and Practices; and
e. Warehousing and Cargo Handling Operations.

Qualifications of Applicants for Examinations – a candidate shall at the time of filing his/her application, establish to the satisfaction of
the Board that (Sec. 16): (Remember CHGn)
1. He/she is a Citizen of the Philippines or of a foreign country qualified to take the examination as provided in the reciprocity provision
of RA No. 9280;
2. He/she is a Holder of a Bachelor’s Degree in Customs Administration: provided that a holder of a master’s degree in Customs
Administration shall be allowed to qualify within five (5) years from the effectivity of RA No. 9280;
3. He/she is of Good moral character and must not have been convicted of any crime involving moral turpitude.

Ratings of Examination – passing score is an average of at least 75% in all subjects, with no rating below 60% in any subject (Sec. 17)
 Release of the Results of Examination – the results shall be released by the Board within ten (10) days from the last day of the
examination (Sec. 18)

VIII. Licensure Exam (Registration) Part 2 (MW9)

Issuance of the Certificate of Registration and Professional Identification Card – a Certification of Registration shall be issued to examinees
who pass the licensure examination for customs broker profession subject to payment of fees prescribed by the Commission (Sec. 19)

The Certificate of Registration shall bear the following: (Remember SES)

1. the Signature of the Chairperson of the Commission and the Chairman and members of the Board,
2. stamped with the official Seal of the Commission,
3. indicating that the person named therein is Entitled to practice the profession of customs broker with all the benefits and privileges
appurtenant thereto: Provided, That he/she shall be allowed to practice the profession in any collection district without need of
securing another license from the Bureau of Customs (id.)

The Certificate of Registration shall remain in full force and effect until revoked or suspended in accordance with this Act (id.)

A professional ID Card bearing the following: (Remember DieNS)

1. registration Number,
2. Date of issuance,
3. expiry Date,
4. duly Signed by the Chairperson of the Commission,

shall likewise be issued to every registrant upon payment of the required fees. The professional ID Card shall be renewed every
three (3) years upon satisfying the requirements of the Board (id.)

Grounds for Refusal to Register – the Board shall not register and use a Certificate of Registration to any successful examinee who:
(Remember GUC)
1. has been Convicted by a court of competent jurisdiction, or
2. has been found Guilty of immoral or dishonorable conduct after investigation by the Board, or
3. has been declared of Unsound mind.
The reason for the refusal shall be set forth in writing (Sec. 20)