-
The Bureau of Customs is eyeing expanded benefits for operators under the Authorized Economic Operator program
-
The move will attract more key economic players, including customs brokers and importers operating in free zones
-
Existing AEO-accredited companies highlighted significant benefits from the program, including savings due to fewer physical inspection, the agency said
The Bureau of Customs (BOC) is eyeing expanded benefits for operators under the Authorized Economic Operator (AEO) program to attract more key economic players, including customs brokers and importers operating in Free Zones, the World Customs Organization (WCO) said in a statement.
BOC Interim AEO Office head and Export Coordination Division chief Atty. Jenny Diokno, during a recent WCO workshop, said this initiative is designed to bolster the Philippines’ efforts to promote foreign direct investment into the country.
She also highlighted how BOC is leveraging its AEO Portal to streamline the AEO application process, making it more efficient, transparent, and beneficial for participants, WCO said in a statement.
Currently, BOC’s AEO Program covers importers and exporters. Other stakeholders will also be eligible to apply for an AEO accreditation. BOC will issue a separate order to implement this.
WCO said existing AEO accredited companies highlighted significant and tangible benefits of the program.
One AEO reported saving at least P2,500 (just over EUR41) per container due to fewer physical inspections, while another emphasized the invaluable support from BOC account managers who help navigate disruptions in Customs clearance procedures to ensure smoother and expedited processing.
WCO noted these testimonials underscore the AEO Program’s positive impact on operational efficiency and cost savings.
Looking ahead, WCO said BOC will enhance its operational instruments to facilitate AEO validation and extend AEO benefits to all economic operators as part of the agency’s broader expansion strategy.
BOC also intends to leverage the customs-to-business partnership to foster an innovative culture and to be responsive to driving continuous efficiency gains.
During a workshop from February 17-21, WCO said its Accelerate Trade Facilitation Programme supported BOC’s journey with technical assistance and capacity building focused on expansion strategies and fostering customs-business partnerships.
WCO said its Accelerate Trade Facilitation Programme looks forward to continuing its multiyear partnership with BOC, supporting the promotion of sustainable trade facilitation reforms and driving inclusive economic prosperity.
BOC in December 2019 launched its AEO Program in compliance with the country’s commitment to the WCO’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.
Companies accredited under the program will be recognized as trusted allies by the BOC and will be entitled to various benefits depending on their accreditation level.
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.
As of February, there are five companies accredited under BOC’s AEO Program.
Toyota Motors Philippines Corp., Panasonic Manufacturing Corp., and Coca-Cola Europacific Aboitiz Philippines, Inc. (formerly Coca-Cola Beverages Philippines, Inc.)—all already upgraded to Level 2 accreditation—and Sony Philippines, Inc. and Brother Industries (Phils.), Inc. are currently under Level 1.
BOC said 18 other companies have expressed interest in joining the AEO program.
