BOC, DOF program for honest traders
The Bureau of Customs (BOC) and the Department of Finance (DOF) have agreed to implement an incentive program that will benefit honest traders and Customs stakeholders in trade facilitation.
According to the Customs Administrative Order (CAO) 5-2017, an Authorized Economic Operator (AEO) program shall be established to grants incentives to stakeholders with a high level of compliance with Customs rules and regulations.
The CAO covers the processes, mechanism, and benefits of an AEOaccredited stakeholder.
The program will allow the stakeholders to apply for accreditation and enjoy incentives, such as exemption from renewal of membership under any Customs accreditation system.
Other incentives that will be provided to members are processing and selectivity lane for AEO shipment with no documentary, physical and non-intrusive examination, ad- vance cargo clearance, one-time exemption certificate, and the expedition of Customs clearance for exports.
The program has three components namely: Cargo security system which will ensure the integrity and security of the imported goods; trade clearance system that enables highly compliant stakeholders to clear their goods with minimum customs border intervention and mutual recognition arrangement (MRA) which sets process to implement and maintain mutual recognition between two or more Customs administrations.
The CAO also stated that it aims to establish a special Customs cargo clearance lane “to further facilitate and secure international trade at the same time increase the level of Customs compliance through the optimum use of information and communication technology and risk assessment principles.”
“Applicants must meet the standard of reliability and trustworthiness, which shall be measured by its level of risk, the nature of the business and the conduct of its importation as against Customs revenue, compliance, and cargo security,” the CAO read.
However, the CAO said that the BOC shall establish a simplified system of processing, evaluation, and action on applications for AEO accreditation.