-
Four more companies are seeking accreditation under the Bureau of Customs’ Authorized Economic Operator Program
-
The four companies—which come from the motor vehicle, pharmaceutical, and printing industries—are undergoing pre-screening prior to Level 1 accreditation
-
BOC AEO Office head Atty. Jenny Diokno said the program is designed to enhance trade security and facilitate legitimate trade by recognizing businesses that comply with customs regulations and maintain secure supply chains
Four more companies are seeking accreditation under the Bureau of Customs’ (BOC) Authorized Economic Operator (AEO) Program.
The four companies — which come from the motor vehicle, pharmaceutical, and printing industries — are undergoing pre-screening prior to Level 1 accreditation, according to BOC AEO Office head and Export Coordination Division chief Atty. Jenny Diokno in a chance interview with PortCalls at the sidelines of the recent Procurement and Supply Institute of Asia World Annual Supply Chain Conference.
Diokno said the program is designed to enhance trade security and facilitate legitimate trade by recognizing businesses that comply with customs regulations and maintain secure supply chains.
Companies accredited under the program will be recognized as trusted allies by the BOC and entitled to various benefits depending on their accreditation level.
BOC in December 2019 launched its AEO Program in compliance with the country’s commitment to the World Customs Organization’s SAFE Framework of Standards to Secure and Facilitate Global Trade.
The AEO Program represents a customs-to-business partnership that seeks to enhance international supply chain security and facilitate movement of legitimate goods. Implementation of the AEO program in the Philippines became possible in 2016 with the passage of Republic Act No. 10863, otherwise known as the Customs Modernization and Tariff Act.
Customs Administrative Order 5-2017 covers implementation of the AEO Program.
READ: BOC opens AEO office, accredits Coca-Cola
Benefits of a Level 1 member include exemption from renewing accreditation, self-assessment, supplementary goods declaration, and a dedicated help desk.
For Level 2 members, benefits include those for Level 1 plus a dedicated processing lane, advance clearance process, periodic lodgment, one-time exemption certificate, and expedited customs clearance for exports.
A Level 3 member will have extended additional benefits. Diokno said they are currently working on enhanced benefits under Level 3 to further encourage companies to enroll in the program.
Once granted, accreditation under the AEO Program will last until suspended, revoked, or cancelled through voluntary withdrawal from the program.
There are currently four companies already accredited under the AEO Program—Toyota Motors Philippines Corp., Panasonic Manufacturing Corp., and Coca-Cola Beverages Philippines, Inc. (Level 2-accredited) and Sony Philippines, Inc. (Level 1).
In terms of mutual recognition agreement (MRA)—a formal document between two or more customs administrations outlining the circumstances and conditions for recognizing and accepting the AEO programs of the signing parties—BOC has so far signed with China and the Association of Southeast Asian Nations. BOC last year also signed off on an action plan with the Hong Kong Customs and Excise Department, a significant step towards an imminent MRA conclusion between the two countries.
MRAs serve as a platform for AEO programs to provide additional benefits to their members through international recognition with partner countries.
Diokno said they are also hoping to sign MRAs with Japan and South Korea. – Roumina Pablo
