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A joint administrative order implementing pre-border technical verification and cross-border electronic invoicing of imported goods in the Philippines has just been issued
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JAO No. 001-2025 requires all containerized agricultural products, non-agricultural products with health and safety issues, and other goods susceptible to misdeclaration to undergo pre-border technical verification
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All goods imported, whether by air or sea, are subject to the cross-border electronic invoicing system
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Implementation will be in phases following the issuance of relevant Bureau of Customs orders
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JAO 001-2025 issued on January 20, implements Administrative Order No. 23 series of 2024, which directs the BOC to implement the pre-border technical verification and cross-border electronic invoicing system
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AO 23 aims to expedite inspection of imported goods entering the Philippines and further strengthen national security, safeguard consumers’ rights, and protect the environment against sub-standard and dangerous imported goods
A joint administrative order (JAO) implementing pre-border technical verification (PTV) and cross-border electronic invoicing (CEI) of imported commodities in the Philippines has just been issued.
JAO No. 001-2025 implements Administrative Order (AO) No. 23 series of 2024, which directs the Bureau of Customs (BOC) to implement the PTV and CEI system to expedite the inspection of all imported goods and to further strengthen national security, safeguard consumers’ rights, and protect the environment against sub-standard and dangerous imported goods. The JAO was issued on January 20.
READ: Marcos orders pre-border verification, e-invoicing for all imports
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.
CEI 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.
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.
All goods imported, whether by air or sea, are subject to CEI.
The program will be implemented within two years from the effectivity of AO 23 and will be done in phases following the issuance of relevant BOC customs administrative orders (CAOs).
The JAO was signed by members of the Committee on Pre-border Technical Verification and Cross-border Electronic Invoicing (CPTVCEI) created under AO 23. It will take effect 15 days after publication in the Official Gazette or a newspaper of general circulation.
“With the freshly issued JAO, we can now begin our collective efforts towards strengthening our border protection through digitalization,” Finance Secretary Ralph Recto said in a statement.
“This will certainly go a long way in putting an end to smuggling, misdeclaration, and undervaluation. This will not only ensure that our consumers are protected from counterfeit and substandard goods, but also help us collect much-needed revenues for our people,” Recto added.
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 CPTVCEI, 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.
READ: Wanted: Companies to conduct pre-border inspection of PH imports
Exemptions
Exempted from the PTV are the following:
- Goods covered under the BOC Bulk and Break-Bulk Cargo Clearance Enhancement Program (BBCCEP)
- Goods shipped in less-than-container-load (LCL)
- Balikbayan boxes and personal and household effects of returning residents
- 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
- Explosives, ammunition, arms and equipment and other strategic materials certified as such by the Department of National Defense
- Imports by registered export enterprises duly registered with investment promotion agencies
- Importations made by foreign governments or international organizations
- Goods qualified under BOC’s Super Green Lane Facility
- Imports made by accredited companies under BOC’s Authorized Economic Operator Program
- Goods destined for customs bonded warehouses
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.
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:
- The importer has filed an import entry and paid the proper duties, taxes, and other fees on such importation
- 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
- 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.
Implementation schedule
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
Implementation of the CEI, meanwhile, 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
Members of the CPTVCEI include BOC, Department of Agriculture, Department of Trade and Industry, Department of Energy, Department of Health, Department of Environment and Natural Resources, Department of Information and Communications Technology, Philippine Drug Enforcement Agency.
Representatives from duly recognized industry associations namely the Philippine Chamber of Commerce and Industry and the Chemical and Pharmaceutical Industry Organization of the Philippines are also members of the CPTVCEI. – Roumina Pablo
