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The Philippines and Hong Kong are working on a customs cooperative arrangement
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The deal aims to strengthen trade facilitation while protecting consumers from risks posed by smuggled and illicit goods
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The draft bilateral arrangement was the product of extensive discussions and in response to heightened global concern over supply chain security and the growing sophistication of cross-border smuggling operations
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Salient provisions include sharing of information and intelligence to ensure the proper application of customs laws
The Philippines and Hong Kong are working on a customs cooperative arrangement aimed at strengthening trade facilitation while protecting consumers from the risks posed by smuggled and illicit goods, according to the Department of Finance (DOF).
The draft bilateral arrangement was the product of extensive discussions between the Bureau of Customs (BOC) and its Hong Kong counterpart in response to heightened global concern over supply chain security and the growing sophistication of cross-border smuggling operations, DOF said in a statement.
“I thank the Government of Hong Kong for collaborating with us on this very important matter,” Finance Secretary Ralph Recto said.
“This arrangement is necessary to ensure that both our Customs Administrations are functioning together in the most efficient way possible. We owe it to our nations to ensure that what crosses our borders is legitimate, safe, and lawful,” he added.
DOF noted that the draft arrangement is intended solely for the mutual administrative assistance between the customs administrations of the Philippines and Hong Kong.
The salient provisions on general assistance that may be mutually provided include sharing of information and intelligence to ensure proper application of customs laws; prevention, investigation and combating of customs offenses; and security of the international trade supply chain.
Aside from the cooperative agreement, BOC and the Hong Kong Customs and Excise Department are also working on the signing of a mutual recognition agreement (MRA) under their Authorized Economic Operator (AEO) programs.
BOC earlier said MRAs serve as a platform for AEO programs to provide additional benefits to their AEO members through international recognition with partner countries.
MRA benefits include a higher level of facilitation during cargo clearance, domestic and overseas; priority treatment if the cargo has been selected for inspection; and expedited customs cargo clearance in the event of trade disruption.
