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The Customs Administrative Order implementing the pre-border technical verification of imported commodities is targeted for publication in April
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Customs Commissioner Bienvenido Rubio said this is “in anticipation of the first phase of pre-border technical verification of agricultural products which will hopefully begin in May of 2025”
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The CAO will implement Joint Administrative Order No. 001-2025, which in turn implements Administrative Order No. 23 series of 2024 directing the Bureau of Customs to implement the PTV and cross-border electronic invoicing system
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Under the JAO, implementation of the PTV will be in three phases, with the first phase to be implemented 30 days after publication of the relevant BOC CAO
The customs administrative order (CAO) implementing the pre-border technical verification (PTV) of imported commodities is targeted for release in April, according to Customs Commissioner Bienvenido Rubio.
This is “in anticipation of the first phase of pre-border technical verification of agricultural products which will hopefully begin in May of 2025,” Rubio said in a speech during the Bureau of Customs’ (BOC) 123rd founding anniversary celebration on February 7.
The CAO will implement Joint Administrative Order (JAO) No. 001-2025, which in turn implements Administrative Order (AO) No. 23 series of 2024. The AO directs BOC to implement the PTV and cross-border electronic invoicing (CEI) system with the aim of expediting inspection of all imported goods entering the country and further strengthen national security, safeguard consumers’ rights, and protect the environment against sub-standard and dangerous imported goods.
READ: JAO implements pre-border inspection, e-invoicing
Under JAO 001-2025, all containerized agricultural products, non-agricultural products with health and safety issues, and other goods susceptible to misdeclaration must undergo PTV. Covered goods are listed in the JAO appendices, which will be regularly updated.
PTV refers to testing and inspection of all commodities by Accredited Testing, Inspection, and Certification companies (ATICCs) prior to export to the Philippines. The system verifies in advance the declared specifications, description, weight, volume, and country of origin, among others.
All goods imported, whether by air or sea, are subject to CEI.
Implementation of the PTV and CEI system should be within two years from the effectivity of AO 23 and will be done in phases following the issuance of relevant BOC CAOs.
Under the JAO, implementation of the PTV will be in three phases:
- Phase 1 (Agricultural products under Appendix 1 of the JAO) – 30 days after the publication of the BOC CAO providing for the specific procedures for the PTV.
- Phase 2 (Non-agricultural products with health and safety issues under Appendix 2) – 60 days after the publication of the BOC CAO
- Phase 3 (Other goods susceptible to misdeclaration to avoid duties and taxes under Appendix 3) – 90 days after the publication of the BOC CAO
CEI, meanwhile, refers to a system used by a verified and registered foreign exporter to create electronic invoices on a single electronic platform controlled by the Philippine government.
Implementation of the CEI will be as follows:
- Mandatory registration of exporters abroad – 30 days after the publication of the CAO providing the specific procedures for the CEI
- Mandatory use of the CEI system for all imports covered by the BOC BBCCEP – 60 days after publication of the BOC CAO
- Mandatory use of the CEI system for all other imports – 90 days after publication of the BOC CAO
The JAO also covers the guidelines, qualifications, documentary requirements, and procedures for the accreditation of PTV testing, inspection, and certification companies, as well as the engagement of the CEI system provider.
It details the role of the Committee on Pre-border Technical Verification and Cross-border Electronic Invoicing (CPTVCEI) created under AO 23, the member agencies, importers, exporters, PTV accredited as ATICCs; and CEI system provider.
The CPTVCEI earlier invited companies to get accredited as testing, inspection, and certification companies for the implementation of the PTV with deadline of submission of requirements for accreditation set until February 15, 2025.
Exempted from the PTV are the following:
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Goods covered under the BOC Bulk and Break-Bulk Cargo Clearance Enhancement Program (BBCCEP)
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Goods shipped in less-than-container-load (LCL)
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Balikbayan boxes and personal and household effects of returning residents
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Goods where the consignee is the Philippine government or any of its corporations, agencies or instrumentalities but not including goods imported on behalf of these instrumentalities by private importers
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Explosives, ammunition, arms and equipment and other strategic materials certified as such by the Department of National Defense
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Imports by registered export enterprises duly registered with investment promotion agencies
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Importations made by foreign governments or international organizations
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Goods qualified under BOC’s Super Green Lane Facility
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Imports made by accredited companies under BOC’s Authorized Economic Operator Program
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Goods destined for customs bonded warehouses
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Personally-owned motor vehicles under the No-Dollar Importation Program, and motor vehicles for the use of an official of the diplomatic corps are exempt from the CEI.
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Goods that have undergone PTV conducted by an ATICC and have been issued a Certificate of Conformity will be qualified to advance clearance procedure, subject to the following conditions:
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The importer has filed an import entry and paid the proper duties, taxes, and other fees on such importation
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The information under the import entry, bill of lading, commercial invoice issued by the exporter, and Certificate of Conformity issued by the PTV ATICC match and refer to the same goods
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The electronic-invoice (e-invoice) from the exporter contains a full statement of the costs of the shipment for the purpose of calculating the duties and taxes
Upon arrival of qualified importation, the importer may immediately cause the withdrawal of the shipment from the port upon presentation of proof of payment of duties and taxes, and compliance with the applicable border regulatory rules of government regulatory agencies.
Goods without an e-invoice, have not undergone PTV when required, and those that have been issued a Discrepancy Report due to discrepancies in the e-invoice will be considered high-risk subject to 100% physical inspection and other applicable controls by the ATICC, concerned regulatory agency, and BOC.
The penalties for failure to subject the shipment to PTV or CEI are:
- First offense – 30% of the dutiable value of the goods
- Second offense – 50% of the dutiable value of the goods
- Third offense – revocation of accreditation of the importer
ATICCs may impose a fixed fee for each physical verification of goods in the countries of origin, subject to the approval of the CPTVCEI, PTV.
CEI ATICCs may impose an annual registration fee, and fee for each invoice created by exporters on the cross-border e-invoicing portal.
BOC will collect from the ATICC a service fee for monitoring and supervision of the PTV and CEI system equivalent to 10% of the fees collected.
All exporters of goods to the Philippines must register in the CEI System annually. Only registered exporters will be allowed to create invoices in the CEI system. – Roumina Pablo
