BOC sets clearance rules for commercial goods under informal entry

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The Bureau of Customs (BOC) has issued guidelines for the automated clearance via its electronic-to-mobile (e2m) system of commercial goods under the informal entry process.

Customs Memorandum Order (CMO) No. 06-2020 takes effect on February 28, 2020 and applies to all commercial goods in BOC ports and subports that have Free on Board (FOB) or Free Carrier (FCA) value of less than P50,000 but above P10,000.

Separate guidelines will govern clearance procedure for express shipments, postal items, and e-commerce.

All entities registered as a regular importer or a small value importer (SVI) with BOC’s Client Profile Registration System (CPRS) will be allowed to lodge a goods declaration under the informal entry process.

SVIs are importers of goods of a commercial nature with FOB or FCA value of less than P50,000 but above P10,000. SVIs do not include non-regular importers (formerly called once-a-year importers), who are governed by separate regulations.

SVIs must register with the CPRS through the bureau’s accredited value added service providers (VASPs) to be given a Unique Reference Number (URN). The district collector will approve and activate the CPRS registration of SVIs. Once registered in the CPRS as SVIs, these importers will not be allowed to file goods declarations under the formal entry process.

As provided in CMO 06-2020, goods declaration should be lodged in the e2m system through VASPs, with the importer filling in the required information in the Single Administrative Document (SAD) form.

Once electronically lodged in the e2m, all goods declarations will be automatically tagged as RED—meaning documentary review and inspection are needed—in the e2m’s selectivity system. The SVI should then file the hard copy of the SAD with the Entry Processing Unit or its equivalent unit at the port, together with the required supporting documents.

After the examination and review, the customs appraiser, based on the evaluation, will re-route the entry to GREEN “for further processing or in case of discrepancy, shall recommend appropriate action to the Chief, IED [Informal Entry Division] or equivalent unit.”

CMO 06-2020 notes that the re-routing of selectivity color to GREEN is “only to allow further processing of the shipment and the electronic release thereof through the Online Release System (OLRS) for the conduct of non-intrusive inspection,” and that the original selectivity upon lodgment will not be changed and that the re-routing will be reflected in the e2m system’s audit log.

Payment of customs duties and taxes will be made through BOC’s authorized agent banks if payment is through Payment Abstract Secure System version 5, or through e2m Cash SAD Module if payment is through the in-house bank or the collection district of the port.

Once payment is confirmed, BOC will electronically transmit the release instruction message to the respective customs facilities/warehouses for the release of the goods to the proper party.

If upon examination and assessment, the goods declaration filed by the importer is found to exceed the threshold value for informal entry of commercial goods, processing and clearance will be continued under the informal entry system on a one-time basis only, provided that the assessment and computation will be based on formal entry, and that the foregoing will be without prejudice to Section 1400 (Misdeclaration, Misclassification, Undervaluation in Goods Declaration) of the Customs Modernization and Tariff Act (CMTA).

Any succeeding lodged declaration subject to adjustment of value exceeding the threshold will be cancelled by the appraiser. The SVI should then re-lodge the goods declaration under the formal entry system as a regular importer.

CMO 06-2020 noted that the SVI who intends to file an import declaration under the formal entry process must first acquire CPRS registration with BOC’s Account Management Office. – Roumina Pablo

Image by Frauke Feind from Pixabay

2 COMMENTS

  1. *As a SVI what are the needed documents for CPRS?
    please give me the list and also the procedures.

    Thank you and GOD BLESS…

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