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The Bureau of Customs has revised its proposed rules and regulations on the registration of sea cargo consolidators, including those that handle balikbayan boxes
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The new draft now requires a P10,000 registration fee for a three-year validity of the Certificate of Registration
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Each deconsolidator will be required to deposit P2 million as a surety bond, and an additional P500,000 for each consolidator in every country of operation
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BOC in a notice on November 6 called for position papers and participation in a public consultation on November 13 for the proposed draft
The Bureau of Customs (BOC) has revised its proposed rules and regulations on the registration of sea cargo consolidators as third parties and on the conduct of their business with the bureau.
BOC called for position papers and participation in a public consultation on November 13 for the proposed draft customs administrative order (CAO) that will cover the registration of Philippine-accredited deconsolidators handling sea cargoes in relation to CAO No. 1-2018 (amended rules on consolidated shipment of balikbayan boxes), and CAO No. 6-2019 (registration of third parties dealing with BOC) in relation to CAO No. 7-2022 (accreditation of importers).
A similar draft CAO was released in 2024, also seeking stakeholders’ comments, but was not finalized.
READ: BOC readies accreditation rules for balikbayan box forwarders
Under the new draft, a deconsolidator refers to a local freight forwarder doing business in the Philippines and acting as subsidiary, parent company or a branch office of the consolidator, that provides services to ungroup or deconsolidate shipments, orders, goods, etc. to facilitate distribution.
Deconsolidator, as used in the proposed CAO, will refer to deconsolidators of balikbayan boxes, loose cargoes, breakbulk shipments, etc., by sea. The term also covers commercial deconsolidators.
The proposed CAO aims to identify the obligations and liabilities of deconsolidators and their counterpart consolidators on the handling of consolidated shipments, including balikbayan boxes, for the protection of the public.
Mandatory registration
The draft CAO noted that deconsolidators should be registered with the BOC for the effective exercise of customs control over them.
Under CAO 01-2018, third-party service providers transacting with BOC have to register with the agency.
Deconsolidators will be subject to the supervision, regulation, and monitoring of BOC in relation to the importation, movement, storage, and clearance of goods, for and on behalf of another person.
Deconsolidators transacting with BOC, for and on behalf of importers and consignees, will be treated equally as the true importers or consignees, and thus, will be subject to the same responsibilities and penalties applicable under CAO No. 7-2022, as amended.
Deconsolidators accredited with other government agencies and who wish to conduct business with BOC should apply for registration with BOC’s Accounts Management Office or such other office as may be directed by the Customs commissioner.
All deconsolidators handling balikbayan boxes will be required, as a condition for registration and operation, to maintain an affiliate consolidator in the country of origin where such balikbayan boxes are collected.
Bond requirement
Deconsolidators will have to pay a registration fee of P10,000 upon submission of its application. This is higher than the P2,000 in the 2024 draft, but comes with a three-year validity of Certificate of Registration (COR) instead of just one year in the earlier proposal.
After securing their COR, deconsolidators must also register with BOC’s Client Profile Registration System.
Deconsolidators handling balikbayan boxes will be required to disclose and submit all its service contract/s with their consolidator/s.
The deconsolidator and BOC should also open an escrow account with the trust department of a bank nominated by the bureau. The deconsolidator will be required to deposit P2 million to the escrow account, and an additional P500,000 for each consolidator in each country of operation. In the 2024 version, deconsolidators handling balikbayan boxes were going to be required to post a cash of P2 million.
The fund in the escrow account serves as a surety bond that will guarantee the payment of duties and taxes and other charges, and the performance of the obligations related to the importation of balikbayan boxes.
The draft CAO also provides the duties and responsibilities of the deconsolidator, as well as penalties for violations.
READ: BOC, CFO sign pact to help OFWs safeguard balikbayan boxes
BOC should also publish and maintain a list of consolidators and deconsolidators duly registered with BOC, including the designated area of operations. BOC likewise should publish and maintain a separate list of consolidators and deconsolidators whose registration has been suspended.
In case of suspension or blacklisting, BOC should circulate the information to relevant agencies and concerned third parties, such as the shipping lines.
READ: BOC sets up office focused on balikbayan box concerns, policies
Under the draft, BOC should also develop, acquire, receive in donation, gain access to, operate, provide or outsource a system to effectively monitor the shipment of balikbayan boxes, including those who avail of the duty and tax-exempt privilege under Section 800 (g) of the CMTA.
Registration of forwarders for cross border shipments under e-commerce will be governed by another regulation.—Roumina Pablo
