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The Bureau of Customs aims to issue rules on the registration of balikbayan box forwarders/deconsolidators before the holidays
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Customs commissioner Ariel Nepomuceno said the draft customs administrative order will require deconsolidators to post a cash bond to guarantee delivery of balikbayan boxes and submit a list of their foreign partners/consolidators
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CAO No. 01-2018 already requires deconsolidators or freight forwarders acting as deconsolidators to register with BOC, on top of accreditation requirements from other government agencies
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Earlier drafts on registering deconsolidators have circulated since 2023, including a 2024 version proposing a fixed ₱2-million cash bond
The Bureau of Customs (BOC) aims to issue rules on the registration of balikbayan box forwarders/deconsolidators before the holidays.
Customs commissioner Ariel Nepomuceno, in a media briefing on September 8, said the draft customs administrative order (CAO) will require deconsolidators to post a cash bond guaranteeing delivery of balikbayan boxes and to submit a list of their foreign partners/consolidators. The bond amount will depend on the size of a deconsolidator’s business, he said.
The registration of deconsolidators is in keeping with CAO No. 01-2018, which provides BOC’s amended rules on consolidated shipment of balikbayan boxes. The CAO issued in 2018 requires deconsolidators or freight forwarders acting as deconsolidators to apply for registration with BOC in addition to the registration/accreditation requirements imposed by other government agencies.
A deconsolidator refers to a local freight forwarder or consolidator’s agent or representative situated at the country of importation that provides services to ungroup or deconsolidate shipments, orders, and goods to facilitate distribution. A deconsolidator may also refer to a breakbulk agent.
The move builds on CAO No. 01-2018, BOC’s amended rules on consolidated shipment of balikbayan boxes, which already requires deconsolidators — or freight forwarders acting as deconsolidators — to register with BOC in addition to accreditation requirements imposed by other government agencies. A deconsolidator is a local freight forwarder or a consolidator’s agent or representative in the country of importation that ungroups or deconsolidates shipments to facilitate distribution; the term may also refer to a breakbulk agent.
BOC has been working toward formalizing these rules for several years. In 2023, it drafted an order to treat balikbayan box deconsolidators as third-party entities subject to its supervision over the importation, exportation, movement, storage, and clearance of goods on behalf of another person. In 2024, it released a related draft CAO for public consultation covering the registration of sea cargo deconsolidators as third parties and the conduct of their business with the bureau. That version proposed a fixed ₱2-million cash bond for deconsolidators handling balikbayan boxes — to guarantee payment of duties, taxes, and other charges, and performance of obligations tied to balikbayan box importation — with funds held in a dedicated Balikbayan Box Special Trust Account. In case of a deconsolidator’s failure to process and clear goods, the bond would cover the unpaid duties and taxes.
Also last year, a joint administrative order aimed at guaranteeing the safe and timely delivery of balikbayan boxes to the families of overseas Filipino workers (OFWs) was signed, directing BOC to issue the registration rules for deconsolidators as third parties.
BOC has said it is implementing broader reforms to strengthen oversight of cargo consolidators and deconsolidators, improve assistance mechanisms for OFWs, and enhance coordination with partner agencies on complaints involving delayed, abandoned, or mishandled balikbayan box shipments. Last August, under Customs Memorandum Order No. 13-2026, BOC created the Balikbayan and OFW Action Center — a policy-making and coordinating body under the Office of the Commissioner tasked with ensuring accountability, transparency, and protection of OFW and balikbayan interests, and with addressing the persistent problem of abandoned balikbayan boxes, particularly those involving unscrupulous freight forwarders.
