Customs Memorandum Order

No. 20 - 2021 C M O
Implementation of the Automated Inventory
Management System (AIMS) by All Registered
Customs Bonded Warehouses

CMO NO. 20-2021 REPORTED BY:

BRIONES, JOYCE
BSCA 3A
Start
Section 1 & 2
Objectives
1.1. To effectively implement
an AIMS for CBWs
1.2. To establish a tool that
will assist the Bureau of
Customs
1.3. To protect against revenue
loss
1.4. To generate real time data
on warehousing
activities/operations
Objectives & Scope
1.5. To establish a schedule
of fees to be paid by CBW
operators,accredited members
of CCBW, Sub-contractors
and client/end-users for
the maintenance and
operations of the AIMS
Section 3
Accredited Member
Automated Inventory
Definition
Management System
(AIMS) of
Authority to Transfer
Certificate of terms
Identification (CT)
Certificate of
Inspection and Loading
(CIL)
Section 3
Customs Bonded
Definition
Warehouse (CBW)
Formula of
of
Manufacture (FOM)
Liquidation of Raw
terms
Materials
Sub-contractor
Section 3
4.1. All CBWs granted License
to Operate by the Bureau shall
implement the AIMS of the Section 4:
service provider accredited by
the Bureau.
ADMINISTRATIVE
PROVISIONS

Next
 4.2. Prior to the implementation of the
AIMS, the following pre- requisites must be
complied with to ensure the efficient
operation of the said system:

4.2.1. Client profile of all active CBWs shall

be transmitted by the Bureau to the AIMS. All
CBWs, including members of CCBW must have their
own assigned unique warehouse codes.

4.2.2. All users shall be required to register

in the AIMS to allow them to use the system
based on their respective roles or functions;
and
 Administrative Provisions

4.2.3. The registered CBW operator or its authorized representative must

upload the following to the AIMS prior to the implementation or roll-out to
all ports of the said system to ensure efficient processing, accurate
computation of inventory, liquidation of raw materials, and generation of
other required reports:

a.Approved specific item code and product code for each importable item
based on the approved Statement of Monthly Raw Materials Importation
Requirements (SMRMIR);

b. Approved ITDI FOM/FOC;

c.List of Accredited Members of CCBW with corresponding unique warehouse

codes, if applicable;

d.List of registered sub-contractor, clients/end-users of ICBW, if

applicable; and

e. Other documents as may be required.

.
 Administrative Provisions

4.3. The latest inventory is critical to ensure the accuracy of the

inventory system as well as the liquidation of raw materials.

4.4. The CBW operator or its duly authorized representative shall

upload in the AIMS all documents or attachments required by the
Bureau in PDF format. The size of the PDF format must not exceed
20 MB.

4.5. The AIMS shall automatically update the account of the CBW
operator and its accredited member warehouse, Sub-contractor, and
client/end-user, if applicable, based on the actual approved
transactions processed in the AIMS.

4.6. The AIMS withdrawal system is based on a first-in first-out

(FIFO) scheme. The FIFO scheme is critical in the monitoring of
period of storage of goods in the CBW warehouse, thus it must be
strictly followed.
Section 5.
Operational Provisions
5.1.2. Search and
select the
5.1. Direct 5.1.1. The E2M transmitted E2M W-
System SAD using its
Filing of automatically reference number.
transmits to
Warehousing the AIMS all
Goods Goods
Declaration
Declaration for
5.1.3. Edit the
Item Details in the
at Warehousing EDRM by inputting
the measure (UOM)
(W-SAD).
Port of quantity and
specific item
product
unit
Discharge code.
 Operational Provisions
5.1.4. Uploaded by the CBW operator
or its duly authorized
representative in the AIMS in PDF
format:
a. W-SAD, all pages, including
rider
b. Bill of Lading/Air Waybill;
c. Packing List;
d. Invoice;
e. Import Permits (if applicable);
f.Electronic Tracking of
Containerized Cargo (E-TRACC) Upload
Manifest, if containerized; and
g.Transfer Note (Boatnote), if Less
Container Load (LCL).
5.1.5. The AIMS shall validate if the items
declared is within the SMRMIR.
a.If the item is within the allowable
quantity and the product code is included in
the List of Importables (LOI).
b.If the quantity exceeds the remaining
balance in the SMRMIR for a particular product
code.
c.The system will not allow the saving of the
EDRM if the item product code is not found in
the LOI or AIMS Product Masterlist.
5.1.6. The CBW Warehouseman shall retrieve the
EDRM and the supporting documents under
Section 5.1.4. hereof and verify the
declaration against the actual shipment.
5.1.7. The Warehouseman shall require the CBW operator or its duly
accredited representative to pay the required duties, taxes and other
charges. O
P P
5.1.8. The CBW operator or its duly authorized representative shall E R
lodge a goods declaration for consumption (C-SAD) in the E2M System and
pay the required duties, taxes and other charges. R O
5.1.9. To amend the EDRM, the CBW operator shall input the actual A V
quantity entered for warehousing.
T I
I S
5.1.10. The Warehouseman shall verify the quantity declared in the N O
C-SAD with the reported excess in the SMRMIR. A
O I
N
L S
5.1.11. If the quantity is within the remaining SMRMIR and
product code in the LOI, the Warehouseman shall tag the EDRM as
"Completed".

5.1.12. The reckoning date for the storage period will be the date
Next
the EDRM has been tagged as "Completed" in the AIMS by the CBW
Warehouseman.
5.2.6. Tag the EDRM as
5.2. Lodgement of
"Completed".
Transit
5.2.7. The reckoning date
for the storage period Warehousing Goods
will be the date the EDRM
has been tagged as from Customs
"Completed".
Zone to CBW.
5.2.8. Tag the EDRM as
"Completed" when all the
containers covered by the
particular T-SAD have
arrived at the CBW. Note:
- The 5.1.1 to 5.1.5 is under
5.2.9. Ensure that no W-SAD while 5.2.1 to 5.2.5
stripping of container van is under T-SAD and that two
shall be done. categories are almost the
same.
 Operational Provisions
5.3. Lodgement of Warehousing Goods Declaration Re-Entry.

5.3.1. Filed in the E2M System within (5) days from the date the Transit EDRM
was tagged as "Completed".
5.3.2. Check the remarks reflected in the Header and Item Details page of
the Transit EDRM.
5.3.3. If there are remarks in the Transit EDRM, the CBW operator shall:
a. Lodge a goods declaration for consumption
b. Lodge a goods declaration for warehousing

5.3.4. Upon lodgement, the E2M System automatically transmits to the AIMS all
W- SAD with "Paid" status.

5.3.5. Search and select the transmitted E2M W-SAD for the creation of the
EDRM.

5.3.6. Ensure that the Transit EDRM Reference Number is indicated in the
"Previous Document Field" of the Warehousing EDRM.

5.3.7. Edit the "Item Details" in the EDRM by inputting the quantity and
specific item product code.
 Operational Provisions
5.3.8. Upload all pages of the
W-SAD, including the rider,
and
all pages of the C-SAD,
including
rider and SSDT, if applicable.
5.3.9. The AIMS will again
validate if the declared quantity
is still within the remaining
balance of the SMRMIR.
5.3.10. Retrieve the
Warehousing EDRM and tag the
EDRM as "Completed" and
subsequent transactions.
5.3.11. If the Warehouseman still
finds discrepancy during the
unloading of the goods, he/she
shall reject the Warehousing EDRM
and perform any of the
following:
a.Require the CBW operator to pay
duties, taxes and other charges;
b.Recommend the issuance of
Warrant of Seizure and Detention
(WSD) against the shipments; or
c.Any other action as may be
warranted under the circumstances.
 Operational Provisions

5.4. Withdrawal of Goods from the CBW for Production.

Within the prescribed storage period apply for withdrawal of the bonded goods for
production.

5.4.1. Prepare the Requisition slip and upload it to the AIMS and create the
withdrawal declaration.

5.4.2. Validate the documents uploaded and check the goods.

5.4.3. Act within 24 hours from receipt of the request.

5.4.4. Allow the release of the goods.

5.4.5. Automatically update the inventory system.

5.4.6. Withdrawal of any raw materials, even for production, without the approval
of the Warehouseman shall constitute unauthorized withdrawal.
 5.5. Withdrawal of Goods from CBW for Local Sales.
Be allowed only upon approval by the District Collector and after payment of O
duties and taxes.
P P
5.5.1. Submit the letter-request for the withdrawal of the goods to the E R
District Collector.

5.5.2. Letter-request is approved by the District Collector or authorized R O

Customs officer,
A V
5.5.3. The CBW operator shall perform the following:
a. Create a Withdrawal Declaration-Local Sales in the AIMS;
b. Upload the approval of the District Collector or authorized official;
T I
c. Upload all pages of the C-SAD; and
d. Submit the Withdrawal Declaration-Local Sales in the AIMS. I S
N O
5.5.4. Retrieve the Withdrawal Declaration-Local Sales and check A
O
if the documents uploaded by the CBW operator are complete. I
N
L S
5.5.5. The CBW Warehouseman only allow the withdrawal of the
bonded goods if the documents are complete and in order.

5.5.6. The CBW Warehouseman confirm withdrawal in the AIMS by Next

tagging the said declaration as "Completed" to update the
inventory.
5.6.1. Intends to sell the bonded goods to another CBW or to a Free Zone
locator shall apply in writing to the District Collector for issuance
of authority to sell/transfer.

5.6.2. Create a Draft Declaration for Constructive Export in the AIMS by

5.6.
searching the Constructive Export SAD transmitted by the E2M System.
Withdrawal
5.6.3. The CBW operator shall then upload the following documents in the
AIMS: Packing List; Approved Authority to Transfer/Sell; Signed of Bonded
Certificate of Identification; Sales Contract/Purchase Order/Pro-forma
Invoice; and other documents as may be required. Goods from
the CBW for
Constructive

Exportation.

Next
5.6.4. The CBW Warehouseman
shall retrieve the
Declaration for
Constructive Export.
5.6.5. The CBW
Warehouseman shall only
allow withdrawal of the
bonded goods.
5.6.6. The CBW Warehouseman
shall tag the said
Declaration as "Completed"
once the goods have been
actually released.
5.6.7. Constructive Export
Declaration shall be
manually created.
5.7. Toll
Manufacturing
Process.
A CBW operator may sub- contract the
processing of its imported
materials in case of insufficiency
of operational facilities or lack
of material time to meet export
commitments.
5.7.1. Create a Toll Manufacturing Declaration
Release in the AIMS.
5.7.2. Automatically check and allow the
submission of the Toll Manufacturing Declaration
Release.
5.7.3. Retrieve the Toll Manufacturing
Declaration Release in the AIMS, validate and
approve the Toll
Manufacturing Declaration Release
5.7.4. Declaration has been tagged as "Released", AIMS
shall update the existing balance in the inventory.

5.7.5. Email notification shall be sent by the AIMS to the

Chief.

5.7.6. The accredited Sub-contractor shall file withdrawal-

Manufacturing Declaration in the AlMS to withdraw the
transferred raw materials.

5.7.7. The CBW Warehouseman approve the Withdrawal

Declaration by tagging it as "Completed" in the AlMS.

5.8. Toll Manufacturing Return.

5.8.1. The accredited Sub-Contractor shall create Entry
of Finished Goods Declaration.

5.8.2. The CBW Warehouseman shall approve the Entry of Finished

Goods Declaration as "Completed" after verification on the
existence of the finished goods.

5.8.3. The CBW shall file a Toll Manufacturing Declaration

Return
 Operational Provisions
5.8.4. The AIMS automatically check and allow the submission of the Toll Manufacturing
Declaration Return.

5.8.5. The CBW Warehouseman shall validate and approve the Toll Manufacturing Declaration
Return by tagging it as "Completed" in the AIMS.

5.8.6. The AIMS system shall automatically update the inventory of the CBW.

5.9. Transfer Declaration for Transfer of Bonded Goods Between

Members of Common Customs Bonded Warehouses (CCBWD)
5.9.1. Apply in writing to the District Collector for issuance of authority to sell/transfer;

5.9.2. Once the request to sell/transfer is approved by the District Collector or authorized Customs
Officer, the requesting accredited member or its duly authorized representative shall create
Transfer Declaration in the AIMS.

5.9.3. Perform the first approval of the Transfer Declaration.

5.9.4. The CBW Warehouseman of the CCBW of origin shall confirm the release of goods.

5.9.5. The CBW Warehouseman of the receiving CCBW shall confirm the receipt of goods.
 5.10. Entry of Finished Goods Declaration
5.10.1. The CBW Operator shall prepare a daily Production O
Report P P
5.10.2. The CBW Operator shall create an Entry of Finished E R
Goods Declaration using the Excel File Format R O
5.10.3. The CBW Warehouseman shall approve the Entry of
Finished Goods Declaration. A V
T I
5.11. Export Declaration I S
N O
The Export SAD tagged as "Assessed/Paid" in the E2M System,
shall be transmitted to the AIMS in XML file.
A
O I
N
L S
5.11.1. Create Exit Declaration in the AIMS by selecting the Export-SAD
uploaded to the AIMS. It shall edit the Header and Item Details to input the
Item Product Code and upload the following documents in the AIMS:
a. Proforma Invoice;
b. Packing List
c. Outward Bill of Lading/Airway
f. Export Declaration SAD from E2M System;
g. Signed Certificate of Identification; and
Next
Bill h. Signed Certificate of Inspection and
d. E-TRACC Upload Manifest; Loading.
e. Export Clearance, if applicable;
 Operational Provisions
5.11.2. After completing the Declaration, it shall submit to the AIMS.
5.11.3. The AIMS check if the mode of transport is via SEA or via AIR
5.11.4. If via SEA, the Exit Declaration is routed to the CCCD personnel for
approval.
5.11.5. If via AIR, the Exit Declaration is routed to the AOD personnel for
approval.
5.11.6. Declaration will be amend if it has been disapproved/rejected.

5.12. Wastages, Rejects and By-

Products
5.12.1. The CBW operator or its duly authorized representative will apply in
writing to the District Collector for payment of duties and taxes on the wastages,
rejects and by- products incurred in the production specifying the following:

a. W-SAD Reference Number

b. Description of waste material/by-products;
c. Quantity; and
d. Percentage against the total quantity of imported raw materials
 Operational Provisions
5.12.2. The CBW operator or its duly authorized representative will create the
Wastage Declaration.
5.12.3. The CBW operator or its duly authorized representative will upload the
processed C-SAD and SSDT.
5.12.4. The Account Officer of the Operating Division will process the Wastage
Declaration and manually tag the said declaration as "Completed" or "Rejected".

5.13. Liquidation of Warehousing Goods Declarations

5.13.1.Ensure that copies of the following documentary requirements are uploaded to
the AIMS:

a. Documents for Entry of Bonded Goods b. Documents for Constructive Export.

i. Working copy of W-SAD;
ii. Bill of Lading/Air Waybill;
iii. Packing List/Commercial Invoice;
iv.Transfer Note (Boatnote), if
applicable; and
v.Licenses, Permits and other
documentations, if required by law.
i. Working copy of W-SAD;
ii. Approved Authority to Sell/Transfer;
iii. Invoice of the Seller;
iv. Transfer Note (Boatnote), if applicable;
v. Packing List
vi. Certificate of Identification;
vii. Goods Declaration for Constructive W-SAD; and
viii.Customs EPZA Warehousing Entry (CEWE) and PEZA
Form 8105 if the buyer is a Free Zone locator.
c.Documents for Direct d.Documents for Payment of
Export. Wastages/Rejects or Buy-Products.
i.Outward Bill of i.Goods Declaration for
Lading/Air Waybill; Consumption filed for the
Wastages/Rejects or Buy-Products;
ii.Certificate of
ii.Approval for payment of
Identification
Wastages/Rejects or Buy-Products;
iii.Certificate of Inspection and
and Loading; iii.Proof of payment of duties
iv.Transfer Note (Boatnote) and taxes on Wastages/Rejects or
or E-TRACC Booking, whichever By-Products, if applicable.
is applicable;
v. Export Declaration; and e. Signed Statement of
vi. Invoice. Liquidation

5.13.2. The CBW operator shall create the Liquidation Declaration in the
AIMS by selecting the Entry Declaration W-SAD to be liquidated in the
AIMS.
5.13.3. The CBW operator shall print the Liquidation Report from the AIMS
of the subject W-SAD.
5.13.4. The CBW Warehouseman, assigned Account Officer and Chief of the
Operating Division will be given access to the AIMS for purposes of
validation and authentication.
5.13.5. The Liquidation and Billing Division (LBD) shall access the AIMS,
search the W-SAD submitted for liquidation and view the submitted signed
Liquidation Excel File Report.
Section 6.
Fees Payable to the ATMS Serice Provider
 Fees Payable to the ATMS
Service Provider
6.2. Less than Fifty Thousand
Pesos (Php50,000.00), the CBW
operator/accredited member of CCBW
will only pay for the creation of
the entry declaration.
6.3. Accredited Sub-contractor in
the AIMS will not be subject to
any charges.
6.4. Generation from the AIMS of
any other type of reports will not
be subject to any charges.
6.5. The Bureau will not collect
any fees on behalf of the AIMS
Service Provider.
6.6. The Bureau shall collect
from the Service Provider a
service fee.
-ten percent (10%) of the
fees
collected exclusive of VAT
6.7. The VASP Accreditation
Committee (VAC) will conduct a
review of the fee structure every
two (2) years.
7.1. For purposes of customs procedures, electronic data coming from the AIMS
Service Provider shall be acceptable and shall have legal effect, validity
or enforceability as any other document or legal Writing.

7.2. The AIMS Service Provider shall be fully compliant with the requirements
Section 7.
under the Data Privacy Act.

7.3. The AIMS Service Provider shall likewise be fully compliant with the
guidelines issued by the Philippine Competition Commission.
Protection
and
7.4. Any information or by-products of said information collected by the AIMS
Service Provider arising from the implementation of the AIMS shall be the
exclusive property of the Bureau. Treatment
of

Electronic
Data from
the AIMS
Next
 8.2.CBW Dashboard
Section 8. Reports can also be
Generation of viewed on a Per Port/
Report Per CBW basis:
8.1. The user to search 8.2.1. Current Inventory
and
Value Sheet;
retrieve information and
historical data. 8.2.2. Total Open Entries
Value Sheet;
8.1.1. Importation 8.2.3. Total Abandoned Value
Ledger; Sheet;
8.1.2. Withdrawal
Ledger;
8.1.3. Arrival and
Transfer Ledger; 8.2.4. Approved vs. Completed
8.1.4. Exportation Declarations Sheet; and
Ledger;
8.1.5. Current Inventory
Report; 8.2.5. Imports vs. Export
8.1.6. Toll Manufacturing Declarations Sheet.
Return Report; and
8.1.7. Liquidation
Report.
 Section 9. Sanctions and Penalties
9.1. The AIMS Service Provider that is not able to meet its Service Level Agreement (SLA) O
target shall be subject to the penalties stated in the SLA. P P
9.2. Any person or entity who obstructs, or attempts to obstruct, the implementation of E R
this Order and its related rules and issuances, shall be subject to the appropriate
civil, criminal and/or administrative penalties.
R O
9.3. In addition, any Bureau official and/or employee found to have violated any of
the provisions of this Order, shall be immediately relieved, transferred to another A V
office.

9.4. The penalties as prescribed under Sections 1422, 1423, 1424, and 1430 of the CMTA,
T I
as may be pertinent or applicable shall be imposed for violations of this Order and its
related rules and issuances. I S
N O
Section 10. Implementation Plan. The Deputy Commissioner, AOCG, in
A
O N
consultation with the Deputy Commissioner, MISTG shall issue the L I
necessary Memorandum. S
Section 11. Help Desk. Provided on a 24/7 basis by the accredited
Service Provider to address any concern.
Next
Section 12. Separability Clause. Section 13. Effectivity
Clause.
CMO 20 - 2021 C M O

Thank you & God Bless!

REPORTER:

JOYCE D BRIONES
BSCA 3A
 MANDATORY USE OF AN
AUTOMATED INVENTORY
MANAGEMENT SYSTEM
(IMS) FOR OFF-DOCK AND
OFF-TERMINAL CUSTOMS
FACILITIES AND
WAREHOUSES
CMO
21-2021
 Objectives
2.1 To implement an automated inventory system to enable the Bureau to strictly
monitor and generate real time and accurate information on the status of goods
received, stored and withdrawn from off-dock and off-terminal accredited
CFWs;

2.2 To protect the revenue of the government by ensuring the correct payment of
duties, taxes and other charges due on loose cargoes;

To provide procedures for the accreditation of an IMS service provider;

2.3
To require the use and maintenance of an IMS-CFW as one of the requirements
of the Bureau for off-dock/off-terminal CFWs; and

2.4 To enable the Bureau to establish a compliance rate structure for all off-
dock/off-terminal CFW.

2.5
 Definition of Terms

• Abandoned Goods • House Bill of Lading (HBL)

• Bureau • Master Air Waybill (MAWB)
• Customs Facilities and Warehouses
• Master Ocean Bill of Lading (MBL)
(CFW) • Off-dock/Off-terminal Customs Facilities
• Dashboard and Warehouses (CFW)
• Device Application • Overstaying
• Device User • Stripping Tally Sheet (STS)
• Freight Forwarder • Transfer Note
• Goods Declaration • VASP Accreditation Committee (VAC)
 General Provisions
4.1 All off-dock/off-terminal CFWs granted license to operate by the Bureau
shall be required to implement an automated IMS to be provided by the
service provider accredited by the Bureau.

4.2 The accreditation of IMS service provider shall comply with the conditions
provided under CAO No. 14-2020, such as but not limited to the
requirement of a Service Level Agreement (SLA), Non-Disclosure
Agreement (NDA), performance bond, and accreditation fee.

The Deputy Commissioner for Assessment and Operations Coordinating

4.3 Group (AOCG) shall oversee the implementation of the IMS while the
actual operations of the system shall be under the supervision of the Deputy
Collector for Operations of the port.
 General Provisions
4.4 Wharfingers assigned at off-dock/off-terminal CFW and other authorized customs personnel shall have
access to the IMS to monitor the actual status of transfer of containers from port of discharge to the off-
dock/off-terminal CFW as well as the status of the cargo from receipt, storage and release of goods
therefrom.

4.5 The transfer of containers from the port of discharge to an off-dock/off-terminal CFW must be covered
with P-SAD together with other documentary requirements. The P-SAD will replace the current manual
hard copy Permit to Transfer to off-dock/off-terminal CFW.

Each Container must be enrolled in the Electronic Tracking of Containerized Cargo (E-TRACC) System
4.6 before final assessment of the P-SAD.

Containers transferred from the port of discharge to an off-dock/off-terminal CFW without being secured
4.7 with an E-TRACC seal shall not be allowed to be opened by any customs officer without the approval of
the District Collector of the port of discharge. This is without prejudice to the imposition by the Bureau
of any penalty or sanctions that may be applicable under the circumstances.
 Accredited IMS Service
Provider
5.1. Must have the necessary technical and operational track record

5.2. The accredited IMS service provider shall provide the following
services:

- Necessary software to effectively track and monitor the movement

of cargoes
- Real-time reports
- 24/7 customer support system
- Conduct training and provide user manuals
 Operational Provisions
6.1. Management of IMS

6.2. Use of IMS inside the off-dock/off-terminal CFW

6.2.1 Input the Master BL's, gate pass number, and the
fees paid, if any, such as Dangerous Goods Fee.
6.2.2 Input in the system the manifest details based on
the HBL/HAWB.
6.2.3 Container labels with unique QR codes for
identification.
6.2.4 Accessible to the device users.
6.2.5 Capture photos of the sealed container before it is
opened.
 Operational Provisions
6.2.6 Separate cargo labels with a unique QR code for
identification.
6.2.7 Option of inputting the measurements of the cargoes
under a specific HBL.
6.2.8 Generate a billing invoice
6.2.9 Measurements inputted on the device application
6.2.10 Corresponding House BL number in the list of cargoes
for release.
6.2.11 Updated by generating and incorporating in the details
of the cargo
6.2.12 Approve the release of cargo
 Operational Provisions
6.2.13 Show the approved cargo in the list of HBL's to be
released
6.2.14 Only allow the actual release of cargoes presented
by the warehouse checker
6.2.15 Require input of the truck details
6.2.16 Monitor the date and time of the container
departure
6.2.17 Real-time Dashboard and Reports
6.2.18 Incorporate user management and security
features
 Operational Provisions
6.3. Use of IMS for the Bureau
6.3.1 Executive Dashboard for the exclusive use of the
Commissioner and other authorized Customs
officials
6.3.2 Real-time Dashboard and Reports
6.3.3 Incorporate user management and security features
6.3.4 Audit Trail for transactions performed or changes in
the system
6.4 Use of IMS for Consignees
6.4.1 Separate web portal
6.4.2 Pro forma invoice
 Protection and Treatment of
Electronic Data from the IMS

7.1. Acceptable and shall have legal effect, validity or enforceability

7.2. Fully compliant with the requirements under the Data Privacy Act

7.3. Fully compliant with the guidelines issued by the Philippine

Competition Commission

7.4. Exclusive property of the Bureau.

 Report Generation

Daily report on container

Daily report on LCL individual shipments successfully withdrawn

(physical withdrawal) from the off-dock/off-terminal CFW;

Overstaying Cargo Report.

Monthly report on LCL individual shipments that
• Data Connectivity
with Bureau's E-
TRACC System.

• Capacity Building
for Authorized
Users
Fees Payable to the IMS
Service Provider
11.1. Php 225.00, inclusive of VAT
11.2. Generate a monthly invoice
11.3. Pay the Bureau a Monitoring and
Supervision Fee equivalent to ten
percent (10%) of the fees collected
exclusive of VAT
11.4. Conduct an annual review of the
fees to be collected
Penalties

The penalties as provided under

CAO No. 9-2019 on Customs
Facilities and Warehouses shall be
imposed against any off-dock/off
terminal CFW operator who
obstructs or violates any provision of
this Order.
 Kristine Joy Casanova

Thank you
 GUIDELINES
IMPLEMENTING CUSTOMS
CONCERNS UNDER
EXECUTIVE ORDER 156
CMO 04- 2003
 CKD IMPORTATIONS UNDER THE MOTOR
VEHICLE DEVELOPMENT PROGRAM OF THE
PHILIPPINES
 Only brand-new CKD parts and components for assembly purposes and sourced from a foreign Original
Equipment Manufacturer (OEM) shall be allowed for importations under the motor vehicle development
program (MVCP)
 Brand-new CKD parts and components imported by participants of MVDP and covered by a Certificate of
Authority to import CKD at CKD tariff rates, duly issued by the Board of Investment, basis, shall be subject to
the applicable CKD duty rates specific to MVDP importations in accordance with existing rules and regulations
and/or as may be determined by BOI-DTI
 Brand-new CKD parts and components importations not covered by a Certificate of Authority to Import CKD at
CKD tariff rates shall be subject to the regular rates following the “essential characters” principle under tie rules
of classification laid down in Sec. 103 of the Tariff and Customs Code of the Philippines (TCCP)
 To ensure the proper application of E.O. 156 and this Order, the Bureau of Customs shall closely and continually
coordinate with BOI to maintain an updated list of MVDP participants and of their respective foreign OEMs
 MOTOR VEHICLE PARTS OR COMPONENTS,
AND MOTOR CYCLES, PARTS AND
COMPONENTS
 Used reciprocating piston engines of ay cylinder capacity exceeding 50 cc, for tractors

 Used reciprocating piston engines of a cylinder capacity exceeding 250 cc, for trucks and buses

 Used diesel and semi-diesel engines for tractors

 Chassis fitted with engines, for motor vehicles for the transport of persons other than public transport type

 Bodies (including cabs) for motor vehicles for the transport of persons other than public transport type

 Seats of a kind used for motor vehicles

 MOTOR VEHICLE PARTS OR COMPONENTS,
AND MOTOR CYCLES, PARTS AND
COMPONENTS
Other parts and accessories of motor vehicles for the transport of persons other than public transport type:
 Plate Brackets

 Running Board

 Visors

 Wings

 Baggage Compartment

 Baggage Racks

 Radiator Cowlings

 Mudguards

 Dashboard
 MOTOR VEHICLE PARTS OR COMPONENTS,
AND MOTOR CYCLES, PARTS AND
COMPONENTS
 Used motor scooters

 Other used motorcycles

 Parts of sidecars of all kinds

 Saddles of motorcycles

 Other parts of motorcycles (excluding rubber tires, engines, electric parts, completely knocked-down
parts, storage batteries and chassis)
 Clutches
 Baggage Rack
 Mudguards
 Handle Bars, Handle Bar Grips
 Fuel Tanks
 Gear Boxes
 USED MOTOR VEHICLES
 Used motor vehicles are banned importations through all ports, including special economic zones and/or free ports,
except the following under certain conditions herein specified:
a. Personally owned motor vehicles (MVs), imported by returning residents for personal use under the No- Dollar
Importation ( NDI) Scheme, provided said vehicles are  covered by an Import Authority issued by the
Department of Trade and Industry- Bureau of Import Services (DTI-BIS) provided further what the vehicles do
not exceed GVW of 3 tons and are not sold within three years from date of importation.
b. Motor vehicles for the use of officials of the Diplomatic Corps, authorized for importation by the Department
of Foreign Affairs
c. Trucks, but excluding pick- up trucks, with GVW of 2.5-6.0 tons, provided these are covered by an authority to
import issued by DTI-BIS. Those with GVW of more than 6.0 tons do not require such Authority
d. Queues with GVW of 6-12 tons, provided they are covered with authority to import issued by DTI-BIS. Those
with GVW of  more than 12 tons do not require such authority
e. Special Purpose Vehicles, which also do not require any import authority. Specifically, these are:
-       Fire trucks
-       Ambulances
-       Concrete pump trucks
-       Funeral services
-       Boom trucks
-       Tank lorries with high pressure spray gun
-       Mobile drilling derricks
 USED MOTOR VEHICLES
 The importation of liberalized used motor vehicles shall also be covered by a certificate of compliance to Emission

Standards issued by the appropriate agency in the country of origin.

 The importation of regulated used motor shall also covered by a prelease Certificate issued by DTI-BIS.

 In the absence documents the opening Certificate of Payment shall be with held until the above requirements are

complied with accordingly, or s similar certification to that effect shall have been issued by the component authority
USED MOTOR VEHICLES
Truck
Special Purpose
Fire truck
Crane Lorry
Mobile Drilling
Ambulance
Hearses-
Truck Tractor/Tractor Head
Concrete Mixer Lorry
Mobile Radiological Unit
Pick-up truck
 BRAND NEW MOTORCYCLES
 Brand-new motor vehicles of whatever type/kind shall remain liberalized importations, pursuant to E.O. 264 s.
1995 and monetary squad circular no.92 1995, thus, do not require any import authority.
 Brand-new motor vehicles shall be defined as the current/advance year models or immediately preceding year
models, provided that the latter have 200-km, or less mileage and the same was acquired from the dealer by the
importer as the first owner.
 Motor vehicles falling outside the definition of brand-new vehicles shall be considered used and thus banned
importation, except as prescribed in sec. 2 hereof.
 IMPORTING
 The district/port collector concerned is hereby directed to submit a assembly report on the 15th of the succeeding
month, with the following information pertaining to the importation of motor vehicles to the Office of the
Secretary, DTI, copy furnished the Office of the Customs Commissioner:
 Name of importer
 Importer’s address
 Identification number of vehicles
 Tariff classification and rate of duty per vehicle
 Quantity and invoice values pf vehicles
 Assessed values of the vehicles
 Total amount of taxes and duties paid on the shipment
 Date of importation
 Other relevant information on the importation of the vehicles
 ACCOUNTABILITIES
The Customs officer and personnel are directed to perform their responsibilities as required
herein, otherwise they shall be liable to administration/criminal sanctions as mandated by law:
1.      The District Collector shall ensure that this Order shall be implemented efficiently
2.      The examiners/appraisers shall be liable for any error caused by/ emanating from their
examination/appraisal.
3.      All signatories to any certificate/report required under this Order shall be liable for any
flaw/ defect found therein.
 PENALTIES
Violations of this Order shall be dealt with in accordance with the TCCP and, additionally, as
provided under E.O. 156, as follows:
1. The motor vehicle involved shall be subject to seizure by the Bureau of Customs, without benefit of
redemption.

2. Any person, entity, government instrumentality or institution, found to be violating or grossly

negligent in executing the mandates of this EO shall result in the expulsion from office of any or all
of the following personnel the chief executive responsible directors, responsible rank and file and
other responsible operating officers.
 CONTINUITY/REPEALING
CLAUSE
 Except as herein provided, existing rules and regulations, as well as their documentary requirements,

governing the importation, assessment and clearance of motor vehicles shall remain in force and effect.

 Motor vehicles allowed to be imported under E.O. 156 and this Order shall be subject to payment of taxes,

duties and order applicable charges, unless otherwise exempted by law.

Right hand vehicles (RHD), brand-new, shall remain banned exportations as mandated by R.A. 8506.

 All rules and regulations inconsistent with this Order are hereby deemed repealed, suspended or modified

accordingly
 SEPARABILITY CLAUSE
Pursuant to Section 3, Article 7 of E.O. 156, the provisions of this Order are hereby declared
separable and in the event any of the provisions is declared unconditional the other provisions
that are not affected thereby shall remain in force and effect.
 EFFECTIVITY
This CMO shall take effect immediately.
This CMO, however, shall not cover used motor vehicles imported prior to January 1 2003, and
falling under any of the following conditions:
1. Those that were already in transit
2. Those covered by L/Cs already opened. In the case of amended L/Cs, the amendment shall
not increase the quantity of used vehicles prohibited or regulated under EO 156
3. Those covered by B/Ls already issued
4. Those who payments have been effected as evidenced by bank certification
 RULES FOR THE
IMPORTATION OF MVDP
PARTICIPANTS LOCATED
INSIDE ECOZONES
CMO 07- 2016
 IMPORTATION OF MVDP
PARTICIPANT
• A factory enterprise shall be accredited with the BOC as importer/participant upon submission of a

Certificate of Registration from the BOl and all other necessary documents to qualify for accreditation.

• Should a factory enterprise elect to avail of the privileges granted to a participant in its importation of

CKDs, it should, prior to the importation, secure a CA to import from the BOI and submit the same to

the BOC upon processing of the release of the importation.

• Payment of appropriate duties and taxes shall be required to secure the release of importation under the

MVDP subject, however, to preferential rate provided under the program.

 IMPORTATION OF PEZA
ENTERPRISE
• To avail of the benefits accorded the PEZA export enterprise, the factory enterprise shall register as such

with the BOC upon submission of the required documents and payment of appropriate fee.

• All importation of a factory enterprise not covered by a Certificate of Authority to import from the BOl

shall be treated as an importation of a PEZA export enterprise, and shall be subject to the rules governing

PEZA locators.
 IMPORTATION OF PEZA
ENTERPRISE
• CBUs, assembled from imported CKDs by ·factory enterprise as PEZA export enterprise, shall, upon

withdrawal for local consumption be assessed the corresponding CKD tariff rates, provided, the

withdrawal for local consumption shall not exceed the threshold or permitted for such withdrawal pursuant

to existing laws, rules and regulations.

• Incase of withdrawal for local consumption in excess of what is allowed under the existing laws, rules and

regulations, the units withdrawn shall be assessed the corresponding tariff rates for CBUs.