Manual on Cargo Clearance Process

(e2m Customs Import Assessment System)

February 2010-02-01
Version 1.0

This manual was prepared by the Interim Internal Control Office (IICO)
in coordination with MISTG and the Ports using the
e2m Customs Import Assessment System (IAS)

BOC website: www.customs.gov.ph

BOC CRMS: 917-3201 to 9173204

 Table of Contents

Foreword

BOC Vision /Mission

BOC Strategic Goals

List of Acronyms

Definition of Terms

The e2m-Customs
1.0 The e2m-Customs Project
2.0 The e2m-Customs Import Assessment System (IAS)
3.0 Client Profile Registration System (CPRS)
4.0 Licensing and Clearance System (LCS)
5.0 Selectivity System (SEL)
6.0 Electronic Manifest (e-Manifest) System [EMS]
7.0 Hold and Alert System (HAS)
8.0 Formal Entry System (FES)
9.0 Payment System (PMTS)
10.0 Online Release System (OLRS)
11.0 Import Cargo Clearance Flowchart (Formal-Consumption)

References
VISION

“A customs administration which is among the world’s best

that every Filipino can be proud of.”

MISSION
 To enhance revenue collection
 To provide quality service to stakeholders with professionalism and
integrity
 To facilitate trade in a secured manner
 To effectively curb smuggling
 To be compliant to international best practices and standards

STRATEGIC GOALS:
 Enhanced Revenue Collection
 Developed Personnel Competence and Welfare
 Secured Trade Facilitation
 Strengthened Enforcement
 Improved Work Environment
List of Acronyms

AAB Authorized Agent Bank

ACOS Automated Customs Operations System
AISL Association of International Shipping Lines
APD Advanced Payment Deposit
AOCG Assessment and Operations Coordinating Group
APO Accredited Professional Organizations
ASYCUDA Automated System for Customs Data
ATO Air Transportation Office
BAP Bankers Association of the Philippines
BAI Bureau of Animal Industry
BFAR Bureau of Fisheries and Aquatic Resources
BFAD Bureau of Food and Drugs
BIR Bureau of Internal Revenue
BL Bill of Lading
BOC Bureau of Customs
BOI Board of Investments
BIS Bureau of Import Services
BPI-PQS Bureau of Plant Industry – Plant Quarantine Service
BRN Bank Reference Number
BRSTN Branch Routing Symbol Transit Number
BSP Bangko Sentral ng Pilipinas
CA Certificate of Accreditation
CAAP Civil Aviation Authority of the Philippines (formerly ATO)
CAB Civil Aeronautics Board
CAS Customs Accreditation Secretariat
CAO Customs Administrative Order
CCN Customs Client Number
CCM / e-CCM Consolidated Cargo Manifest / Electronic Consolidated Cargo Manifest
CDA Cooperative Development Authority
CDC Clark Development Corporation
CEZA Cagayan Special Economic Zone Authority
CITES Convention on International Trade in Endangered Species of Wild
Fauna and Flora
CMO Customs Memorandum Order
CoR Certificate of Registration
CPRS Client Profile Registration System
CY-CFS Container Yard-Container Freight Station
DA Department of Agriculture
DENR Department of Environment and Natural Resources
DDB Dangerous Drugs Board
DFA Department of Foreign Affairs
DOE Department of Energy
DOF Department of Finance
DOH Department of Health
DOTC Department of Transportation and Communication
DPGA Deferred Payment Government Account
DTI Department of Trade and Industry
ERDB Energy Resource Development Bureau
EMB Environmental Management Bureau
ERB Energy Regulatory Board
FED Formal Entry Division
e2m Electronic-to-Mobile
EMS Electronic Manifest System
FEO Firearms and Explosives Office
FES Formal Entry System
FPA Fertilizer and Pesticide Authority
FTI Food Terminal Incorporated
HAO Hold and Alert Order
HAS Hold and Alert System
HBL House Bill of Lading
IAIEG Inter-agency Information Exchange Gateway
IAS Imports and Assessment System
ICT Information and Communications Technology
IED Import Entry Declaration
IEIRD Import Entry and Internal Revenue Declaration
IES Informal Entry System
IFM / e-IFM Inward Foreign Manifest / Electronic Inward Foreign Manifest
IPF Import Processing Fee
IPO Intellectual Property Office
ITR Income Tax Return
LC Letter of Credit
LCS Licensing and Clearance System
LMS Legal Management System
LTO Land Transportation Office
MARINA Maritime Industry Authority
MBL Master Bill of Lading
MISTG Management Information System and Technology Group
NBI National Bureau of Investigation
NCP Non-Cash Payment
NFA National Food Authority
NMIS National Meat Inspection Service
NTC National Telecommunications Commission
OCOM Office of the Commissioner
NVOCC Non-Vessel Operation Carrier
OGA / OGAs Other Government Agency /Other Government Agencies
OLRS Online Release System
OMB Optical Media Board
PAWB Protected Areas and Wildlife Bureau (PAWB)
PSAA Philippine Ship Agents Association
PASS5 Payment Application Secure System version 5
PCA Philippine Coconut Authority
PCHC Philippine Clearing House Corporation
PDEA Philippine Drug Enforcement Agency
PEZA Philippine Economic Zone Authority
PhilExport Philippine Exporters Confederation, Inc.
PIC Professional Identification Card
PID Piers Inspection Division
PITC Philippine International Trading Corporation
PMTS Payment Application System
PNRI Philippine Nuclear Research Institute
PNP Philippine National Police
PNP-FEO Philippine National Police, Firearms and Explosives Office
PPA Philippine Ports Authority
POD Port Operations Division
PSB Philippine Shippers Bureau
PTR Professional Tax Receipt
PRBCB Professional Regulatory Board for Customs Brokers
PAWB Protected Areas & Wildlife Bureau
RAD Revenue Accounting Division
RMO Risk Management Office
SAD Single Administrative Document
SBMA Subic Bay Metropolitan Authority
SEC Securities and Exchange Commission
SEL Selectivity System
SITA Society International Telecommunications Aeronautics
SRA Sugar Regulatory Administration
TCC Tax Credit Certificate
TCCP Tariff and Customs Code of the Philippines
TDM Tax Debit Memo
TEC Tax Exemption Certificate
TIN Taxpayer Identification Number
TOP Terms of Payments
UCR Universal Consignee Reference
VAG Value Added Service Provider (VASP) Gateway
VASP Value Added Service Provider
VAT Value Added Tax
VRB Videogram Regulatory Board
WES Warehousing Entry System
WDRD Warehousing Documentation and Records Division
WID Warehouse Inspection Division
WSD Warrant for Seizure and Detention
XML Extensible Markup Language
Definition of Terms

TERMS/Acronyms DEFINITION
Authorized Agent Bank Commercial banks authorized by the Bureau of Customs to collect
payment of duties and taxes.
AAB Reference No. A unique reference number assigned by an AAB branch to its
enrolled customer/importer. It contains the PCHC assigned BRSTN
of the AAB branch.
Abandonment of Cargo Relinquishment of cargo ownership rights due to late entry
declaration and/or late payment of assessed goods. Policies and
procedures for claiming of abandoned goods are imposed by the
Bureau of Customs.
Assessed Amount The amount of duties, taxes and other fees computed from the
Assessment module of the Import Entry System.
Assessment Notice Contains the essential details of the declaration with the
accounting information necessary for the processing of the
declaration.
ASYCUDA Automated System for Customs Data is the system used by the
Bureau of Customs to facilitate import and export transactions.
Bill of Lading (BL) A document that describes the contract between the shipper of the
goods and the carrier. The Bill of Lading describes the goods, the
origin and destination, the manner of entry into the port of
discharge. This document also serves as a title of ownership.
Bill of Lading Validation Process by which the BL is recorded in the database. BL is
automatically tagged as VALIDATED once its manifest is
REGISTERED. Amendments may be applied in the BL even when it
has been validated.
Bill of Lading Write-Off The BL is written off after assessment of the import entry. This is
indicated by a WRITTEN OFF status of BL in the system.
CCN Customs Client Number is the unique number issued by the Bureau
of Customs to all entities having transactions with the agency.
Cut-off Time Deadline for submitting manifests/BL (i.e. hours before
vessel/aircraft Estimated Time of Arrival). This is set in the system
according to related policies in place.
Date of Last Discharge Date when the cargoes have been unloaded from the
vessel/aircraft. It serves as the starting point of the 30-day
reckoning period allotted by BOC for filing of entry. If no entry has
been filed within those 30 days, cargo is considered abandoned.
Declaration Refers to the manifestation made by the importer/broker of the
particulars of an imported shipment. This is also known as entry
declaration.
Degroupage Splitting of Master Bill of Lading into the level of individual
consignee (i.e. house bill of lading).
House Bill of Lading A House Bill of Lading represents one consignment or one entry in
the manifest. The goods related to it can be directly cleared by a
customs declaration wherein the B/L will be written off.
IED Import Entry Declaration is used in advanced payment of duties
required in opening a Letter of Credit.
IEIRD A declaration of shipments for Customs clearance with the
corresponding final duties and taxes.
Inspection Act An e-document which contains the findings of the examiner and
the accompanying recommendation such as uplift of duties and
taxes.
Issuing Agency The government agency that approves and issues electronic
licenses, clearances, or permits to a consignee
LCS Licensing and Clearance System is used in the acceptance by BOC of
electronic licenses and clearances granted to import and export
shipments. Importers apply for licenses and clearances with
concerned/issuing agencies.
License / Clearance / The e-document required before specific shipments could be
Permit allowed for either import or export. Issuance of this e-document
verifies that a shipment is allowed for import/export.
Manifest The list of shipments loaded in a shipping vessel or aircraft. Each
shipment is identified by the Master Bill of Lading/Airway Bill
Number and House Bill of Lading/Airway Bill No.
Manifest Registration Process by which the manifest is recorded in the database.
Manifest data cannot be altered once registered.
Master Bill of Lading A Master Bill of Lading refers to the grouping for transport, or other
commercial reasons, of a number of House Bills of Lading that must
be split before Customs clearance.
Misrouted Release Release instruction message that was received by the wrong transit
Message facility.
Non-Cash Payment Non-cash payments include:
 Tax Credit Certificates/Tax Debit Memo
 Tax Exemption Certificates
 Advanced Deposit
 Deferred Payment Government Account
OLRS Online Release System involves the transmission of release
instruction messages from the Bureau of Customs to the respective
transit facilities, which include Arrastre operators, off-dock CY-CFS
operators, and warehouse operators, granting these entities
authority to release the goods to the rightful owner.
 Payable Amount The amount of duties, taxes and other fees that are still to be paid
after the non-cash instruments have been applied as payment.
Release Instruction An electronic message sent by BOC to the transit facility, which is
Message triggered once the entry declaration has been tagged as PAID. It
signifies that the indicated cargo is ready for release.
SAD Single Administrative Document is the e-document containing the
declaration of the particulars of a shipment.
Selectivity It is the selection of either declarations or shipments for
documentary and/or physical examination based on certain criteria
or profiles made by the Risk Management Office of BOC.
TDM Tax Debit Memo is the approved utilization of TCC for a particular
importation.
Transit Facility A temporary storage facility controlled by the Bureau of Customs in
charge of physical handling and safekeeping of cargoes until they
are cleared by Customs and released to the consignee. This facility
includes Arrastre operators, off-dock CY-CFS operators and airline
warehouse operators.
VASP Value Added Service Provider is the facility that directly connects to
the BOC-VASP Gateway offering various services like lodgment of
entries, routing of messages to and from the gateway and
shipment status reporting.

1.0 The e2m-Customs Project

The e2m (electronic-to-mobile) Customs Project is one of the

mission-critical and high-impact ICT projects of the national
government launched in January 2005 through a multi-million
grant from President Gloria Macapagal Arroyo’s e-Government
fund.

The e2m Customs Project seeks to streamline the core processes

(imports and exports) of the Bureau of Customs (BOC) and enhance trade facilitation between
the Bureau and its stakeholders, including other government agencies (OGAs), through the
development and integration of various systems allowing Internet-enabled and later SMS-
enabled, thus less face-to-face transactions, towards the realization of the National and ASEAN
Single Windows.

The e-Customs system or the electronic component of the integrated e2m-Customs automated
processes, is an Internet-based technology that allows Customs officers and traders to handle
most of their transactions—from Customs declarations to cargo manifests and transit
documents—via the Internet. It makes use of advanced technology including electronic
signatures to provide government officials, specifically Customs administrators with new tools
that will enable them to make dramatic improvements in security, trade efficiency and fight
against corruption. To date, over 80 countries around the world are using a similar Customs IT
system.

Features of the e2m-Customs

The e2m-Customs offers the following enhancements to the current system:

 Online submission of declarations;

 Automatic advice on declaration status;
 Engagement of Value Added Service Providers “queueless,
(VASPs); cashless and
 Online submission of manifests by airlines and paperless
shipping lines, including consolidators; environment”
 Automated process for other types of import
transactions such as informal (including
passenger baggage system), warehousing and transshipment entries;
 Automated process for liquidation of raw materials;
 Centralized management of bonds transactions;
 Links with relevant government agencies; and
 Online resource access through BOC website on issuances, processes, policies,
guidelines and other related information.

Benefits of the e2m-Customs

The e2m-Customs brings the BOC to its vision of a Customs administration that delivers services
anytime and can be transacted from anywhere. A compelling scenario which it envisions is a
queueless, cashless, and paperless environment.

In supporting the recently-formulated BOC Strategic Goals for 2008- 2012 which prioritizes the
agenda of Enhanced Revenue Collection, Secured Trade Facilitation, Strengthened Enforcement
and Improved Work Environment, the Project undertakes the following:

 Automation of accreditation of importers/brokers and other clients;

 Updating of import values;
 Automation of lodgement entries, payments, cargo release, among others;
 Provision of IT support facilities and equipment; and
 Capability building for the workforce.

For external stakeholders, the Project provides for:

 Greater BOC accountability to stakeholders, government and the public due to more
transparent dealings and efficient systems;
  Reduced processing time on low-risk transactions; and
 Lower cost of doing business due to streamlined processes.

2.0 The e2m-Customs Import Assessment System (IAS)

The Import Assessment System (IAS) is a set of application components that handles the flow of
import processing which includes electronic manifest clearance, import declaration entry, risk
assessment, regulatory clearances, and release of cargo.

The BOC provides the gateway infrastructure and telecommunications facilities to enable
electronic transactions of the following IAS sub-systems/modules/processes:
M
 Lodgment thru the Value Added Service Providers (VASPs)
 Client Profile Registration System (CPRS)
 Licensing and Clearance System (LCS)
 Electronic Manifest System (EMS)
 Selectivity (SEL)/Hold and Alert System (HAS)
 Formal Entry System (FES)
 Warehousing Entry System (WES)
 Payment Application Secure System version 5.0 (PASS5)
 Non-Cash Payments (NCP) consisting of Tax Exemptions, Import Entry Declaration (IED)
for Advanced Duties, Tax Debit Memos (TDM), Deferred Payment of Government
Accounts
 Online Release System (OLRS)

What the Importer/Broker Needs Prior to IAS Transactions

To be eligible for transactions in the Internet-enabled IAS, importer/broker must have the
following:

 Valid and active Customs Client Number (CCN) from the CPRS
 Bank Account(s) information and bank reference numbers of their Authorized Agent
Banks (AABs) for payment of customs duties and taxes
 Appropriate licences/clearance/permits from concerned issuing agencies for their
importation
 Applicable non-cash payment instruments [Tax Exemption Certificate (TEC), Tax Debit
Memo (TDM), and Import Entry Declaration (IED)]
 Other supporting documents
How the IAS Works

The IAS primarily entails entry and clearance of imported commercial goods for local
consumption. It also covers the pre-requisites of entry declaration submission such as:
stakeholder’s profile registration and accreditation, arrival schedule setup, manifest/bill of
lading submission, and acquisition and submission of licenses/clearances/permits.

The diagram below represents an interrelation among the major customs processes, along with
their corresponding system modules:

1. Piers Inspection Division (PID) or its equivalent office encodes/records the estimated
and actual date and time of vessel arrival.

2. Shipping Lines, Airlines, and Consolidators submit electronic manifests and Bills of
Lading through their VASP.

3. Importers/brokers secure licenses, clearances, and permits to import

regulated/prohibited goods from the concerned government agencies prior to filing
import entry declaration.

4. Importers/brokers file import entry declaration (stating bank account information and
applicable TEC, TDM, and IED accounts) by filling out the Single Administrative
Document (SAD) declaration online through their VASP.

5. Assessment Division examines, appraises, and performs final assessment of the import
entries and cargo declaration.

6. e2m Customs System sends payment instruction to the importer’s banks (Authorized
Agent Banks) for debiting of final payment from their accounts.

7. Importers/ Brokers receive electronic Statement of Settlement of Duties and Taxes from
BOC through their VASP.

8. e2m Customs System generates and transmits online release instruction to the
temporary storage facility through the Online Release System for the final release of
cargo.
3.0 Client Profile Registration System (CPRS)

The Client Profile Registration System (CPRS), one of the Internet-based sub-systems of the IAS,
serves as a central repository of data/ information pertinent to BOC clients and stakeholders,
both internal and external, and will include exporters, other government agencies, and private
entities (e.g. banks) that conduct business with the Bureau.

The CPRS involves the process of capturing client information during the accreditation and/or
registration of the various BOC client and stakeholders by filling out client-specific accreditation
form. The captured information is stored in a central database to allow easy access to
stakeholder’s information by operating units and systems serving line functions.

Client registration is mandatory as various transactions with the Bureau cannot be processed
unless the client is duly registered with the CPRS. The e2m-Customs systems that will be relying
on the CPRS database in validating every client transactions are the Electronic Manifest System,
Formal Entry System/Import Entry System, Automated Bonds Management System, Automated
Export Documentation System, Warehousing Entry System, Transshipment System, Online
Release System, Licensing and Clearance System, Hold and Alert System, and the Selectivity
System.

Registrants shall register in CPRS for every role they will assume in their transactions with e2m
Customs. As an example, if an importer is also an exporter, this stakeholder must register
twice. As an Importer, he/she applies for CPRS registration with Customs using a VASP. As an
exporter, he/she will be registered by the accrediting agency.

Stakeholders who are successfully registered in CPRS shall be issued the following electronic
identification:

 Customs Client Number (CCN). The CCN is the stakeholder’s unique identifier in e2m-
Customs. The CCN is issued to the stakeholder by a way of a Certificate of Registration
(CoR).

 Digital Signature. All transactions in e2m Customs are required to be electronically

signed by the entity submitting the transaction. The e2m Customs shall issue a digital
signature to each stakeholder which will be needed in every e2m Customs transactions.
Overview of the Client Profile Registration Process

Lodgment
Data Validation Profile Registration
Approval of Accreditation
of Client Profile Stakeholder Evaluation Account Activation

VASP BOC Accrediting

BOC Accrediting Office Clerk Registration Approver
System Administrator
Accrediting Office/
Office Committee
Evaluator Concerned

Note: For processes inside the dashed box: The accrediting office concerned performs the necessary manual
accreditation procedures (e.g., validation of submitted document, site visit and inspection, background
investigation, etc.), pursuant to existing customs regulations, during the evaluation of stakeholder’s
application for accreditation and/or registration.

Accrediting Offices

The accrediting office concerned receives the application documents (hard copies) and
performs the necessary manual accreditation procedures (e.g., validation of documents, site
visit and inspection, background investigation, etc.) during the client profile registration
processes.

The following are the specific BOC offices and other government agencies (OGAs) responsible
for approving the accreditation and/or registration of each stakeholder type:

A. BOC-Accredited (VASP Registrants)

 STAKEHOLDER ACCREDITING REQUIRED
TYPE BOC OFFICE DOCUMENTS
Importer Customs For New Application (per CMO 23-2009)
Accreditation  Mayor’s Permit and Barangay Clearance
Secretariat (CAS)  BIR TIN Card and/or VAT or NON-VAT Certificate
 For corporations, SEC Certificate of Registration, Articles of
Incorporation and By-laws
 For partnerships, SEC Certificate of Registration, Articles of
Incorporation and By-laws
 For cooperatives, Certificate of Cooperation issued by the
Cooperative Development Authority (CDA)
 For sole proprietorship, proof of registration with the Bureau of
Trade Regulation and Consumer Protection, Department of Trade
and Industry (DTI)
 2x2 pictures (4 copies) of the applicant with specimen signature at
the back thereof
 Audited financial statements for the past year, if applicable
 BOI Certificate of Registration, if applicable
 Income Tax Return of the company, partners, proprietor/owner of
the past year, as may be applicable
 Proof of ownership or lawful occupation of the business premises
 Proof of utility billing
 Other documents required under supplemental CMO, Office Order
or Memorandum issued by the Commissioner of Customs

For Renewal of Accreditation (per CMO 23-2009)

a) With no material changes in the information previously

submitted:

 Affidavit of No Change of Circumstance (in case there are no

material changes in the applicant’s data and circumstances as
appearing in the previous accreditation)
 Current Mayor’s Permit and Barangay Clearance (Duly
certified by the issuing agency)

b) With material changes in the information previously submitted:

 Affidavit of Change of Circumstance stating particularly the

facts constituting the material changes
 Document in support thereof

Broker Customs Per CMO 3-2006-A

Accreditation  Valid Certificate of Registration of Customs Broker
Secretariat (CAS)  Valid Professional Identification Card (PIC)
 Professional Tax Receipt (PTR) for accreditation year
 Taxpayer Identification Number (TIN) Card or Certificate
 VAT Registration Certificate, if applicable
 NBI Clearance (not more than 3 months old)
 Mayors Business Permit if the customs broker is using a business
name
STAKEHOLDER ACCREDITING REQUIRED
TYPE BOC OFFICE DOCUMENTS
 Good Standing Certificate from the PRBCB or the APO, as may be
necessary
 If employed, a Certificate of Employment from his/her employer
 If not employed, a certified list of representative(s) with specimen
of their signatures to be accomplished in the prescribed form
together with their corresponding NBI clearance (not more than 3
months old) and a photocopy of their corresponding SSS ID card
(the list maybe submitted within the period of ten (10) working
days after issuance of the certificate of accreditation)
 A fidelity bond which may be personal bond guaranteed by an
accredited surety company in the amount of Fifty Thousand
(PHp50, 000.00) pesos which will be increased if found later to be
inadequate by the Commissioner upon findings and
recommendation by the CAS.
 If not employed, a certified list of regular clients-importers and
exporters containing specimen of their signatures or their
representative to be accomplished in the prescribed form.

Warehouse / Assessment and Per CAO 2-91 and CMO 39-91

Airport Operations  Copy of certificate of registration with the SEC certified by the
Warehouse Coordinating Group Corporate Secretary
Operator (AOCG)  Photocopies of Articles of Incorporation; By-laws or Articles of
Partnership
Customs Bonded  Certificate of registration with the Bureau of Domestic Trade if sole
Warehouse proprietor
Committee  Instrument evidencing absolute ownership or lease contract
covering the proposed warehouse
 Plant location map showing means of access to the property
 Plant’s layout plan
 Mayor’s occupancy permit of the building
 Audited or Interim financial statement for the last 2 years
immediately preceding the date of application

 Applicants Income Tax Return for the last two years immediately
preceding the date of application. If a corporation/partnership, in
addition, the income tax return of the majority stockholders/
partners during the same period. Not applicable to new
corporation.
 List of machineries and equipment
 Project feasibility study.
 Proof of investment or inward remittance of foreign investors /
bank certification
 List of raw materials to be imported
 Formula of manufacture issued by concerned agencies
 Clearances from the offices or equivalent unit of the port having
jurisdiction over the warehouse, or an endorsement by FTI
collector if the warehouse is under the jurisdiction of FTI. These
clearances should be received by the WDRD within 10 working days
from receipt of application.
STAKEHOLDER ACCREDITING REQUIRED
TYPE BOC OFFICE DOCUMENTS
 Patterns or sketches of the products to be manufactured
 Clearances from the offices or equivalent unit of the port having
jurisdiction over the warehouse to be secured by the WDRD within
ten (10) working days from receipt of application. If under FTI also
an indorsement by FTI Collector

 For Subcontractor, in addition to the above documents, the

following shall be submitted:
 Service agreement and/or Memorandum of Understanding
with the principal
 List of raw materials/semi-finished articles to be subcontracted

 For Airport Warehouse Operator, in addition to the above

documents, the following shall be submitted:
 List of Spare Parts, Supplies, Equipment to be imported and
corresponding volume
 SEC Permit to Do Business in the Philippines
 Approved Permit from the CAAP (formerly ATO)

Surety Company Bonds Division Per CMO-22-2003

 Administrative Order issued by the Office of the President granting
authority to the form engage in surety business
 Certificate of Authority issued by the Insurance Commission,
indicating among others, its validity at the time of the application/
renewal and for the duration of the quarter being applied for
 Copy of the latest audited annual financial statement of the surety
company, but not exceeding one year at the time of the
application/renewal
 Certification of the Corporate Secretary of the surety firm
indicating and attesting the authority of the officer authorized to
sign the bond, and exhibiting the authorized official’s three (3)
specimen signatures, initials, and impressions on the right and left
hands thumbprints;
 Statement under oath by the Corporate Secretary that as an entity
by itself, it has no outstanding obligation with BOC, and out of its
total outstanding obligation in terms of amount of bonds issued in
the past to BOC
 Outstanding Account Worksheet certified true and correct by the
Chief, Bonds Division

CY-CFS Operator Assessment and  Copy of certificate of registration with the SEC certified by the
Operations Corporate Secretary
Coordinating Group  Photocopies of Articles of Incorporation; By-laws or Articles of
(AOCG) Partnership
 Certificate of registration with the Bureau of Domestic Trade if sole
CY-CFS Accreditation proprietor
Committee  Instrument evidencing absolute ownership or lease contract
covering the proposed container yard
 Container yard location map showing means of access to the
property
 STAKEHOLDER ACCREDITING REQUIRED
TYPE BOC OFFICE DOCUMENTS
 Audited or Interim financial statement for the last 2 years
immediately preceding the date of application
 If corporation/partnership, the income tax return of the majority
stockholders/partners for the last 2 years immediately preceding
the date of application
 List of machineries and equipment

Clients and stakeholders whose accrediting offices are from the BOC must lodge/file their
applications for accreditation/registration through the accredited VASP. They can obtain
detailed instructions on completing the new BOC accreditation format and other corresponding
requirements by visiting the VASP websites.

The following VASPs are accredited to assist the stakeholders in processing their CPRS
applications:

 CARGO DATA EXCHANGE CENTER, INC. (CDEC)

www.cdec.com.ph
Tel. 851-8978 and 8539434

 E-KONEK PILIPINAS, INC

www.ekonek.com
Tel. 994-4868, 994-4883, 994-4891, 994-4971, 994-4965
Fax 879-8310

 INTERCOMMERCE NETWORK SERVICES, INC. (INS)

www.intercommerce.com.ph
Tel. 843-2792 and 845-0509

B. Accredited by Other Agencies (OGA Registrants)

STAKEHOLHDER TYPE ACCREDITING AGENCY

Airline Civil Aeronautics Board
Shipping Line Maritime Industry Authority (MARINA) /
Association of International Shipping Lines
Consolidator / Forwarder Philippine Shippers Bureau (Sea Freight) /
Civil Aeronautics Board (Air Freight)
Exporter Registered with Board of Investments (BOI)
Investment Promotions Agencies Philippine Economic Zone Authority (PEZA)
Clark Development Corporation (CDC)
Subic Bay Metropolitan Authority (SBMA)
Cagayan Special Economic Zone Authority
Zamboanga City Special Economic Zone Authority
 Other Exporter Philippine Exporters Confederation, Inc. (PhilExport)
Arrastre Operator Philippine Ports Authority (PPA)
Authorized Agent Banks Bankers Association of the Philippines (BAP)

Clients and stakeholders whose accrediting offices are from other agencies must lodge/file their
applications for accreditation/registration through the BOC website www.customs.gov.ph
using the Login Name and Password provided to them by their accrediting agency.

4.0 Licensing and Clearance System (LCS)

The Licensing and Clearance System (LCS) involves the acceptance by the BOC of electronic
licenses and clearances granted to import and export shipments. Issuing Agencies that are not
yet ready to provide for real time data access are provided with online access by the System
through the Inter-Agency Information Exchange Gateway of the BOC Portal.

Licensing and Clearance System

Current versus e2m-Customs
Current (Manual System) e2m-Customs
 Hardcopies of approved import permits,  Consistent with the National Single Window
licenses, or clearances from issueing agencies initiative, issuing agencies submit to BOC
are submitted to BOC approved permits, licenses, and clearances
electronically through the Inter-Agency
Information Exchange Gateway (IAIEG)

 Licences/clearances contain HS Codes/Tariff

headings which must match with those
indicated in the Importer’s SAD;
Importer/Broker’s profile which are
validated by CPRS
 Manual validation of import permits, licenses,  Electronic verification of permits, licenses,
and clearances or clearances through linkage with issuing
agencies
 Utilization of import permits, licenses, and  Permits, licences, and clearances are
clearances are verbally advised to issuing automatically written off once utilized,
agencies while the concerned issuing agency is also
notified electronically

Issuing Agencies

Under Philippine import laws, it is the responsibility of the importer to ensure that any product
entering the Philippine customs territory is in full compliance with Philippine regulations on
food, health, phytosanitary, product and safety standards, among others. In general, none of
these products is allowed to enter the Philippines if it is deemed to be a danger to human life or
well-being, either directly or indirectly. The enforcing authorities will check for compliance by
inspecting the goods and relevant import documentation and decide on whether the goods
may enter the Philippines.

Importers must secure appropriate licenses, clearances, or permits when importing goods that
require them from the following issuing/regulatory agencies:

Government Agency Areas of Responsibility

Issuing License/Permit/Clearance Product/Commodity Description
Bangko Sentral ng Pilipinas (BSP) Administers Philippine monetary policy; Acts as clearinghouse for all
import and export trade

Issues permits required for the clearance of:

 Legal tender Philippine currency in excess of PHP10,000 
 Bank Notes, Coin of precious metal other than gold and of
non-precious metal not being legal tender, Coin blank
essentially of gold, Coin blank essentially of steel, Coin blank
essentially of copper, Coin blank essentially of nickel, Coin
blank essentially of zinc, Coin blank essentially of tin, and Coin
blank essentially of aluminum
Board of Investments (BOI), DTI Administers programs and controls related to the registration of
importers and reviewing requests for tax exemptions
Bureau of Animal Industry (BAI), DA Administers trade policies with regards to animal products and by-
products derived from animals.

While BAI has jurisdiction over the import of both live animals and
meat, the National Meat Inspection Service (NMIS) enforces the
regulations over fresh, chilled and frozen meat, and poultry imports

Also issues permits required for the clearance of pet foods, e.g., dog
and cat food.

Bureau of Fisheries and Aquatic Resources Oversees fish and other marine/fishery products; assures
(BFAR), DA compliance with regulations and safety in the industry
Bureau of Food and Drugs (BFAD), DOH Ensure the safety, proper handling, efficacy, purity and quality of
processed foods, drugs, diagnostic reagents, medical devices,
cosmetics and hazardous household substances.

Surveillance of imported food products at legal ports of entry.

Administers the registration of foods and drugs, issuance of

commodity clearance.

Processed food products have been divided into two categories with
distinct sets of registration requirements and procedures:

Category I includes: bakery & bakery related products; non-

alcoholic beverages & beverage mixes; candies &
 Government Agency Areas of Responsibility
Issuing License/Permit/Clearance Product/Commodity Description
confectionery products; cocoa & cocoa related products;
coffee, tea & non-dairy creamer; condiments, sauces &
seasonings; culinary products; gelatine, dessert preparation
& mixes; dairy products; dressings & spreads; flour/flour
mixes & starch; fish & other marine products; fruits,
vegetable & edible fungi (prepared); meat and poultry
products (prepared); noodles, pastas & pastry wrapper; nut
& nut products; native delicacies; oils, fats & shortening;
snack foods & breakfast cereals and; sugar & other related
products.

Category II includes: alcoholic beverages; food

supplements; tea (herbal); bottled drinking water; food for
infants and children; foods for special dietary use;
transgenic food products (use of genetic
engineering/biotechnology) and; ethnic food products with
indigenous ingredient(s) not common in the Philippines.

Issues permits required for the clearance of regulated commodities,

e.g.:
 Semi-synthetic antibiotics (all form and salts of ampicillin,
amoxicillin, and cloxacillin)
 Penicillin/derivatives
 Wheat Flour
 Iodized Salt
Bureau of Import Services (BIS), DTI Controls the import and general trade for certain commodities
regulated for import into the Philippines.

Issues permits required for the clearance of:

 motor vehicles, components, parts and/or accessories
 motorcycles
 Used motor vehicle under the no-dollar import program
 Used tires
 Used motor vehicle importation through donation by local
government units
 Importation by all instrumentalities of the government
Bureau of Internal Revenue (BIR), DOF Responsible for the collection of all taxes.

Issues Tax Identification Number (TIM)

Bureau of Plant Industry (BPI), DA Regulates trade in/imports of:
 plants and plant products
 fresh fruits and vegetables

Issues phytosanitary clearances which also serves as import licenses

Bureau of Product Standards (BPS), DTI Establishes product standards, enforces safety and quality control for
consumer products that are being imported into or are
manufactured for export from the Philippines.
Department of Agriculture (DA) Acts as the main import and export regulator for Agricultural
Products produced locally in sufficient quantity
Department of Finance (DOF) Primary agency of the government that acts as the central tax and
 Government Agency Areas of Responsibility
Issuing License/Permit/Clearance Product/Commodity Description
revenue collector.

Parent agency of the BOC that rules on tax and duty exemptions.
Department of Foreign Affairs (DFA) Assists in establishing Import/Export policies, trade agreements, and
establishing local requirements

Issues certificate of goods that can be imported and exported by DFA

officials and the Diplomatic Corps

Used vehicles for the use of an official of the Diplomatic Corps

Department of Trade and Industry (DTI) Promotes trade and industry of the Philippines.
Acts as the main import and export regulator for many commodities
Environmental Management Bureau, Issues permits required for the clearance of:
DENR  Cyanide
 Mercury
 Asbestos
 Polychlorinated Biphenyl
 Chlorofluorocarbon
 Other ozone depleting substances
Energy Regulatory Board (ERB), DOE Issues permits required for the clearance of:
 Refined petroleum products
 Coal and coal derivatives
Fertilizer and Pesticide Authority (FPA), DA Regulates the import of fertilizers, pesticide and other agricultural
chemicals.

While the FPA is the designated regulatory agency for registration

matters, the BPI is the agency mandated to monitor the levels of
pesticide residue in crops to protect both local and international
consumers.
Firearms and Explosives Office (FEO), PNP Controls the import and export of all firearms, ammunition,
explosives and various chemicals for the manufacture of explosives.
 Chlorates, nitrates and nitric acid
Movie & Television Review & Classification Controls the import and export of Motion pictures, films and
Board (MTRCB) television programs.
Provides permits and authorization required for import, export and
public presentation.
Intellectual Property Office (IPO), DTI Ensures intellectual property rights are enforced. All copyright and
trademark regulations are contained in the Intellectual Property
Code of the Philippines.
MARINA Regulates the import of:
 Ships
 High Speed Craft
 Ship’s equipment/spare parts
 Spare parts of Foreign Flagships undergoing emergency
repair
 Warships of all kinds
National Bureau of Investigation (NBI) and Color Reproduction Machines
Cash Department of the Bangko Sentral
ng Pilipinas (BSP)
 Government Agency Areas of Responsibility
Issuing License/Permit/Clearance Product/Commodity Description
National Food Authority (NFA) Administers trade policy regarding the import and export of grains
and grain by-products. Assures that rice and corn is in sufficient
supply to meet the needs of the Philippines.
National Meat Inspection Service (NMIS), Enforces the regulations over fresh, chilled and frozen meat, and
DA poultry imports
National Museum, Cultural Properties Pursuant to the RA4846 National Museum controls trade in
Division Antiques, cultural properties and natural history specimens. Import
and exports permits issued by the National Museum.
National Telecommunications Commission Issues licences for telecommunications equipment
(NTC), DOTC
Optical Media Board (OMB) [formerly Regulates the importation, exportation, acquisition, sale or
Videogram Regulatory Board] distribution of optical media, manufacturing equipment, parts and
accessories and manufacturing materials used or intended for use in
the mastering, manufacture or replication of optical media.
National Quarantine Office Administers quarantine services for all commodities that are subject
to clean report of findings prior to import or export
Philippine Drug Enforcement Agency Essential Chemicals & Controlled Precursors, and Dangerous Drugs
(PDEA) and Dangerous Drugs Board (DDB) (Ketamine, Pseudoephedrine, Oripavine, and Amineptine; Acetic
anhydride)
Philippine International Issues permits required for the clearance of all commodities
Trading Corporation (PITC) originating from the following socialist and centrally-planned
economy countries (Albania, Angola, Ethiopia, Laos, Libya, Mongolia,
Mozambique, Myanmar, Nicaragua and North Korea)
Philippine Nuclear Research Institute Issuance of clearance authorization for the importation and
(PNRI) exportation of radioactive materials and related devises.
Protected Areas & Wildlife Bureau Acts as the CITES protectorate that controls trade in wildlife species
(PAWB), DENR of flora and fauna. PAWB issues import and export permits as well as
certifications required for trade.
Sugar Regulatory Administration (SRA), DA Promotes and controls all bilateral trade agreements related to in
sugar, molasses, muscovado and related products. Issues permits
and assures quality.

Note: While every possible care has been taken in the preparation of the list, information
provided may no longer be complete nor as precise as some import requirements are subject to
frequent changes.

5.0 Selectivity

System (SEL)
The Selectivity System (SEL) contains the controls necessary to classify the processing of
declarations and direct them to the appropriate processing channels:

 Green - released without further inspection;

 Yellow - documentary check only; or
 Red - documentary check and physical examination.

Key Functionalities of Selectivity System

 Performs shipment selectivity according to parameters set by the BOC Risk Management
Office (RMO);
 Capability to re-route selectivity status; and
 Acceptance of examiner’s findings and recommendations.

The Selectivity System Overview

6.0 Electronic Manifest System(EMS)

The Electronic Manifest (e-manifest) System (EMS) processes all submitted Master and
Consolidated Manifests from air and shipping lines through the VASPs.

The e-manifest is the general term for electronic Inward Foreign Manifest (e-IFM) and
electronic Consolidated Cargo Manifest (e-CCM).

The e-IFM consists of all the master bills of lading of shipments consigned to ultimate and
nominal consignees while the e-CCM consists of all the house bills of lading of shipments
consigned to the ultimate consignees degrouped/split from the master bills of lading of
shipments whose consignees are just nominal such as banks, forwarders, and consolidators.
 e-Manifest System
ACOS versus e2m-Customs
ACOS e2m-Customs
 Electronic manifest is submitted by  Electronic manifests from shipping lines and airlines
shippine lines through Arrastre are submitted through a VASP
Operators, while airlines submit
theirs through SITA
 Electronic manifest is submitted  Electronic manifests is transmitted online through the
through e-mail, FTP, or diskettes BOC-VASP Gateway in a standard file format (i.e.,
XML) set by the BOC
 No link with other BOC systems  Interfaced with Hold & Alert System, along with other
systems, to allow automated validation and tagging
of high-risk Bills of Lading or Airway Bills

 Hold and Alert System (HAS) and Selectivity (SEL)

system contains the controls necessary to block
processing of selected declarations and direct these
declarations to the appropriate processing
channels. It involves the issuance of an alert/hold
order and the monitoring of the actions taken on
the alerted/held cargoes.

Submission of e-manifest

The submission of e-IFM and e-CCM must be done through any of the Value Added Service
Providers (VASP) accredited by the BOC. The e-IFM, in the case of shipping lines, must be
submitted by the parties concerned to BOC (Attn: MISTG) electronically at least twelve (12)
hours before arrival of the carrying vessel. The e-CCM, in case of NVOCC/Cargo
Consolidator/Co-Loader/Breakbulk Agent, must be submitted by the parties concerned to BOC
(Attn: MISTG) electronically at least six (6) hours before the arrival of the cargo carrying vessel.

The cut-off time for e-manifest submission is calculated from the submitted Estimated Date and
Time of Arrival using the BOC Gateway Service clock. The e-IFM must be submitted ahead of the
e-CCM. If the e-CCM is submitted ahead of the e-IFM, the e-CCM will not be registered in the
e2m Customs System but has to be re-submitted when the e-IFM is already registered.

Based on the time of e-manifest submission, the EMS processes the e-IFM and the e-CCM. This
process leads to classification of e-manifest submissions into three (3) time frames:

 On time submission – before cut-off time defined by BOC;

 Late submission – after cut-off time but before actual vessel arrival; and
 Non-compliant submission – upon vessel arrival and after.
Submission of Supplemental e-manifest

Supplemental e-manifest submission is treated as non-compliant submission. Supplemental e-

manifest must be submitted in hard copies and electronic form within the period prescribed in
CAO 6-2007 and CMO 37-2009; otherwise, the shipments subject of the Supplemental Manifest
will be considered unmanifested and subject to seizure proceedings.

 Submission of Supplemental e-manifest:

a) Cargoes/containers not listed in the IFM but are otherwise recorded in the
Stowage Plan must be covered by a Supplemental e-manifest submitted to the
BOC through the VASP not later than forty-eight (48) hours from date of
discharge of the last package from the vessel;

b) For cargoes/containers not listed in the IFM and Stowage Plan, the Supplemental
e-manifest must be submitted not later than twenty-four (24) hours from the
date of discharge of last package; and

c) In both cases, the Deputy Collector for Operations and the Chief PID or its
equivalent office monitor the 48 or the 24 hour rule as the case may be before
authorizing the registration of the supplemental e-manifest into EMS.

Registration of e-manifest

The system automatically registers a manifest in the e2m-Customs if the manifest meets the
submission deadline. However, if the deadline is missed, the concerned shipping line should
submit a formal request letter to the office of the Deputy Collector for Operations to allow a
BOC-initiated manual registration of the manifest in e2m. Only the Deputy Collector for
Operations can approve the request and execute the manual registration (through the “Direct
Register” function) in e2m. A late or non-compliant submission fee will be charged for this
procedure following the schedule of fines provided in Section 2521 of the TCCP as amended:

a) Late submission

 First Offense – PhP10,000.00

 Second Offense – PhP20,000.00
 Third Ofense – PhP30,000.00
b) Non-Compliant submission – PhP30,000.00
c) e-Manifest and Import Declaration

The e2m import declaration (SAD) is accepted by the system only when the following
requirements are accomplished:
  The e-manifest has been officially accepted (registered) by the EMS
 The Bill of Lading (BL) is a house BL
 The House BL is also registered

When the BL number has been used in an e2m import declaration, the corresponding BL in the
e-manifest can no longer be subject of any amendment to the e-manifest.

e-Manifest and Waybills

Validation of the Bill of Lading (BL) is done either by the Shipping Line, the Consolidator, or the
BOC. Once ‘validated’, the BL becomes ready for the filing of import entry and is officially
recorded in the BOC database which renders the BL non-modifiable.

Modifications of ‘validated’ BL is limited to certain data fields such as: Type of BL (HBL/MBL),
Universal Consignee Reference (UCR), Total Containers, Unit of Measure of Packages, Volume
(CBM), Description of Goods, Location of Goods, Freight and Amount, Declared Value and
Currency Type, and Transport and Insurance Cost. When erroneous data needs to be
corrected, the Shipping Line, or Consolidator, may apply for amendment of Manifest/BL data
with the port concerned by securing the approval of the District Collector subject to pertinent
BOC regulations.

Once approved, the amendment of data in e2m is performed by the Deputy Collector for
Operations. The amended version of the manifest/BL is sent by e2m to the VASP from where
the original version was submitted. The VASP will send the amended copy of the BL to the
concerned arrastre operator to ensure the synchronicity of manifest/BL data between arrastre
operators and the BOC.

The e2m prohibits the amendment of some BL data elements such as Nature of BL and
Consignee name. In this case the shipping line, or Consolidator, will need to submit a new BL to
replace the incorrect one. To prevent BL abandonment by the system due to non-filing of
import entry, a new BL must be submitted with a single letter suffix, while the original BL must
be referenced as master BL.

30-day Reckoning Period

The PID/POD updates the Date of Last Discharge of the vessel manifest to determine the 30-day
filing period.

The reckoning period is counted on a 30 calendar day basis (not business/working days) from
the vessel’s Date of Last Discharge as reflected in the e-manifest. Abandonment status may be
lifted by the port’s Deputy Collector for Operations upon justified request by the consignee.
Abandonement of cargo is the relinquishment of cargo ownership rights. Abandonment of
cargo is the relinquishment of cargo ownership rights. Cargo is deemed abandoned under any
of the following circumstances:

a) When the owner, importer, or consignee of the imported article expressly signifies in
writing to the Collector of Customs his intention to abandon;

b) When cargo remains undeclared 30 days after date of last discharge; or

c) When assessed cargo remains unpaid 15 days after issuance of payment notification.

Policies and procedures for claiming of abandoned goods are imposed by the Bureau.

7.0 Hold and Alert System (HAS)

The Hold and Alert System is a module linked to the Electronic Manifest System (EMS). HAS
automates the following processes:

 Issuance of Hold and Alert Order (HAO);

 Monitoring of the actions taken on the alerted/held shipments or cargoes;
 Application for the issuance of clearance from the Office of the Commissioner; and
 Lifting of HAO.

What is Hold and Alert Order?

 Alert Order

 Issued on a shipment if it is suspected to have violated the provisions of the Revised

Tariff and Customs Code of the Philippines (TCCP)

 Basis for further investigation, issuance of Hold Order, and subsequent

recommendation of Warrant of Seizure and Detention (WSD) when violation is
confirmed.

 Hold Order

 Issued whenever there are confirmed violation/s of the provisions of TCCP

 Cannot be issued if shipment has previous/active Alert Order which has not been
acted upon

Note: The Hold and Alert Order is applied on the Bill of Lading.
Issuance of Alert/Hold Order

The Alerting Officer (Intelligence Officer or District Collector or his/her representative) requests
for Hold and Alert Order (HAO) once a shipment or cargo is suspected or confirmed to be in
violation of the provisions of the Revised Tariff and Customs Code of the Philippines (TCCP).
Once the HAO is approved and issued, the Officer-on-Case then implements the Order.

Overview of the Hold and Alert Process

Requisites for Issuance of Alert/Hold Order

The following provisions are observed before an Alert/Hold Order is issued:

a) There should be a manifest record of the shipment.

The system will check if there is a manifest record corresponding to the Bill of
Lading/Airway Bill No. of the shipment. This is checked from the records in the
Electronic Manifest System.

b) There should not be an existing active Alert/Hold Order. A Hold Order cannot be issued
if there is an existing/active Alert Order.

The system will check if there is already an Alert/Hold Order that is issued to the
shipment. The Alert/Hold Order that has been previously issued must still be active, i.e.,
no action has been taken or no recommendation has been made yet from the alerting
officer, at the time the request is made.

c) There should be clearance from the Office of the Commissioner if another Alert/Hold
Order will be issued after an earlier one has been lifted or if the requesting office is from
another government agency. If there is no record of clearance, the request shall be
denied.
 The system will check if there is clearance for the issuance of a new Alert/Hold Order
after an earlier one has been lifted. Such clearance should emanate from the Office of
the Commissioner.

d) Any or part of the shipment must still be inside the port at the time the request is made.
If the shipment is completely released to the consignee, the request shall be denied.

The system will check from the OLRS if the shipment subject for the issuance of
Alert/Hold Order has already been completely released to the consignee.

Implementation of the HAO

After an alert/hold order has been applied, the shipment must be subjected to inspection
process to determine the exact violation committed.

The outcome of the inspection process may result in any of the following:

1. Recommendation for the upgrade of assessed duties and taxes, should the violation
committed does not warrant an issuance of WSD

If the recommendation is upgrade of duties and taxes, the following activities are
undertaken:

 The importer presents the two assessment notices generated. The first
assessment notice contains the original assessed duties and taxes while the
second assessment notice contains the upgraded/additional duties and taxes.

 The Officer-on-Case verifies from the IAS if the additional duties and taxes have
been paid.

 If the additional duties and taxes have indeed been paid, the Alert/Hold Order is
lifted.

2. Recommendation for lifting of the alert/hold order

 If the action taken is the lifting of the Alert/Hold Order (on conditions where no
discrepancy was noted or that the additional duties and taxes have been paid),
the system shall prepare a lifting order message.
 The Commissioner or his/her designated representative lifts the HAO. The Office
of the District Collector, the Alerting Office (via the OLRS) and the Arrastre facility
(through the BOC website and VASP) are informed.

3. Recommendation for the issuance of Warrant of Seizure and Detention if the violation
committed constitutes prima facie evidence of fraud

 The Legal Management System (LMS) monitors and tracks the progress of the
case

 Shipment with WSD will undergo a legal case in order to lift the shipment or to
close the shipment. If the decision of the court is in favor of the importer, the
hold and alert status will be changed to LIFTED.

If the decision of the court is not in favor of the importer, the hold and alert
status will be changed to CLOSED.

8.0 Formal Entry System (FES)

The Formal Entry System (FES) facilitates the processing of entry declaration on importations of
a commercial nature for local consumption (sale or barter) of raw materials, semi-finished
and/or finished goods to collect the necessary duties, taxes, and other fees; while Warehousing
Entry System (WES) facilitates the declaration processing of tax and duty-free importations
under bond of raw materials or semi-finished goods used by local enterprises to manufacture
and assemble goods for exportation. Informal Entry System (IES) on the other hand monitors
and controls the acceptance of informal entries or goods that are not classified for commercial
value.

The FES also facilitates the control of regulated, prohibited and other ‘high-risk’ items through
the use of the Selectivity Process.

The processes involved in the FES starts with the electronic Lodgment of entry declaration as a
Single Administrative Document (SAD) through the Value Added Service Provider (VASP) and
validating the said declaration using the CPRS, LCS and other related reference databases. Then,
it verifies Manifest and Bill of Lading, calculates duties and taxes, verifies mode of payment,
sends message to the VASP and submits declaration to ASYCUDA.

The process also includes the registration of entry declarations to ASYCUDA, the classification
and valuation of imported goods, the corresponding action by the Customs Examiner (COO III)
associated with the classification/tagging of imported goods & the assessment of duties &
taxes.

The diagram below illustrates the overview of the import clearance process:
1. Electronic manifests from shipping lines and airlines are submitted through a VASP.

2. PID/POD updates vessel manifest’s Date of Last Discharge to determine 30 day filing period.

3. The VASP helps the importer/broker lodge their entries (Consumption, Warehousing). All
mandatory information are indicated in the forms.

4. Importer/Broker submits hardcopies and attachments to entry processing offices (i.e. EPU)
for verification.

5. Document processor at entry processing office forwards verified hard copies to Customs
examiners in appropriate Assessment sections.

6. Examiner retrieves the Import Entry Internal Revenue Declaration/Single Administration

Document (IEIRD/SAD) and performs examination based on the declaration’s Selectivity
color (i.e. Yellow, Red).

7. Examiner modifies and updates the IEIRD/SAD by attaching his digital signature.

8. Appraiser retrieves and reviews IEIRD/ SAD, and re-routes it Green to enable the payment
process.

Verification Processes Performed by the Formal Entry System (FES)

 Verification of Client Information

This process verifies that the importer and broker specified in the import declaration are
registered and active stakeholders of BOC thru the Client Profile Registration System
(CPRS). Transit Facility is also included in the verification.

Any inactive stakeholders should renew and update their client profile registration.

 Verification of License, Clearance and Permit

This process verifies the license, clearance, and permit requirement of an import entry
declaration thru the Licensing and Clearance System (LCS). All import items are checked
for the presence and validity of required licenses, clearances, or permits based on the
Harmonized System code or commodity code set in the system.

Appropriate adjustments will be recorded by the system for single-use and multiple-use
licenses.
 Absence of required or invalid license, clearance or permit will lead to the rejection of the
Formal Entry declaration.

 Verification of Mode of Payment

There are two modes of payment:

 Cash Payment
 Non-Cash Payment referring to the following:
o TDM (Tax Debit Memo)
o TEC (Tax Exemption Certificate)
o Advanced Payment Deposit (IED)
o Deferred Payment Government Account (DPGA)
o Surety Bond

If the selected mode of payment is cash, the system would require a Bank Reference
Number (BRN). The existence and validity of the BRN is verified against the CPRS.

Verification of non-cash payment depends on the mode of payment declared. The non-
cash payment instruments declared in the SAD are verified against database records
during assessment of the import entry.

The importer can declare more than one mode of payment. The Formal Entry System will
verify each entry if there is a sufficient balance. Insufficiency of balance will automatically
lead to cash payment.

Determination of Exemption is based on the National Procedure declared on the Import

Entry Declaration.

Deferred Payment Government Account is allowed if the importer-government

organization is declared as DPGA on the Client Profile Registration System

 Verification of Inward Manifest

The submitted Inward Foreign Manifest (IFM) and Bill of Lading (B/L) are verified against
the manifest database in the Entry Manifest System (EMS). The declaration will be
rejected automatically by the Formal Entry System if the declared B/L does not exist in
the manifest database or if the presented B/L does not match the declaration.

If the shipment is containerized, the number of containers declared in the declaration is

also checked against the declared number of container/s in the B/L. If the number of
containers in the declaration is less than the number of containers in the B/L the
declaration is automatically rejected. The container numbers in the declaration are also
compared to the container numbers in the B/L. Non-matching container numbers result
in the rejection of declaration.

Furthermore, the gross weight/mass and the number of packages in the declaration are
also compared in the B/L. If there is a discrepancy, the declaration is also rejected.

For SAD covering shipments where the importer challenges the findings of the examiner,
the assessment will proceed using the examiner’s suggested changes on the
classification, value, etc. Upon assessment, the Assessment Notice shall show the new
duties and taxes calculated, which is also inclusive of the additional duties and taxes
 assessed.

 The total amount for cash payment through banks shall be the original amount plus any
“uplift” made by the Examiner. This amount will become the Final Payment amount that
the Payment Application System will request the Authorized Agent Bank (AAB) to collect.

Because of this, the existing procedure of requiring the importer to post cash bond will
no longer be necessary.

 If ever the importer gets a favorable decision from the deliberation of his/her case,
refund will be in the form of Tax Credit Certificate (TCC).

 Shipments classified as Payment Under Protest will follow a different processing path.
Tentative Release Procedure is provided under CMO No. 37-2001. Said CMO is still
effective.

9.0 Payment System (PMTS)

The new Payment System (PMTS) involves the use of both cash and non-cash payments, both
transacted and stored electronically, for either advanced or final settlement of duties and taxes.
Declared non-cash payment accounts are utilized first by the system during assessment of
import entries. The balance, payable in cash, is automatically debited from the importer’s bank
account through a payment instruction generated by the system and sent over to the
importer’s bank via the Philippine Clearing House Corporation (PCHC). The final payment
instruction is generated after the assessment of the declaration by the concerned port’s
assessment division. The importer’s bank account details are provided during import lodgment
at the VASP.

The BOC has partnered with the Bankers Association of the Philippines (BAP) to develop a
comprehensive payment system that provides clients with various modes of payment. The new
process ensures complete and more accurate computation of clients’ payables.

The new system features the application of Payment Application Secure System version 5.0
(CAO No. 10-2008) which provides detailed guidelines on secured Internet-based banking
transactions between AABs and importers.

Payment for duties, taxes, and other charges must comply with CAO 10-2008 and CMO 6-2009.

5 Sub-Systems of the PMTS

The new Payment Application System is comprised of 5 sub-systems:

 Advanced Payment Deposit Sub-System

 Final Payment Sub-System
  Tax Credit Sub-System
 Tax Exemption Sub-System
 Government Account Sub-System

Payment System
Manual System versus e2m-Customs
Manual System e2m-Customs
 Importer/Broker goes to an Authorized  The system (PTMS) sends payment
Agent Bank (AAB) for payment of duties instructions to AAB through Philippine
and taxes Clearing House Corporation (PCHC)
 Cash and check payments are accepted  Payment is debited from importer’s bank
account
 Tax Exemption Certificates (TEC), Tax  Electronic copies (in addition to paper forms)
Credit Certificates (TCC), and Tax Debit of Tax Exemption Certificates, Tax Credit
Memos (TBM) are in paper form Certificates, and Tax Debit Memos are
accepted and stored by the system
 No electronic record of TCC  Electronic copies of TCC are maintained in a
 Records are maintained at the Collection central database by the Revenue Accounting
Division Division (RAD)
 Collection Division issues Official Receipt  TCC Committee issues TDM for available TCC
(OR) for each TCC application application
 TCC ledger is manually updated  TDM Rerefence Number is provided
 TDM issuance automatically updates TCC
ledger

Non-Cash Payment Instruments

Non-cash payment instruments include the following:

 Tax Credits Certificate - TCC is issued (either by DOF or BOC) as refund for overpayment
of duties and taxes and for unutilized portion of advanced duty payment, among other
sources. A Tax Debit Memo (TDM) is issued as a medium for utilizing the TCC for
payment of duties and taxes;

 Tax Exemption Certificate – TEC is issued by DOF and stored in the e2m Payment
System as proof of a specific percentage of exemption from payable taxes given to
qualified importers.

 Advanced Payment Deposit – refers to advanced payment made for shipments covered
by Letters of Credit filed using the Import Entry Declaration (IED) or simplified SAD
format. Upon successful transaction with the importer’s AAB, the importer is provided
an IED number which he/she can use as non-cash payment instrument in his SAD.
All non-cash payment accounts must have already been stored in the e2m payment system
before the declaration for which they are utilized is lodged. To utilize the value of existing TDM,
TEC and IED in the lodged declaration, their details (reference numbers, amount) must be
indicated in the Terms of Payments (TOP) portion of the Single Administrative Document (SAD).

At the BOC, electronic copies of Tax Credit Certificates (TCC) are stored at the central database
maintained by the Revenue Accounting Division. Tax Credits Committee is the body responsible
for issuing BOC-TCC and for issuing TDM for each available certificate. A TDM reference number
is then provided while its corresponding TCC ledger becomes automatically updated. The
importer has to attach the said TDM reference number in the Terms of Payment tab of the
electronic Single Administrative Document (SAD).

Advance Payment Sub-System

 This sub-system automates the existing manual system for filing an IED with an AAB and
computing the advanced duty payable for shipments covered by the Letters of Credit
(LC).
 Instead of manually accomplishing a paper IED, importers will use this sub-system to
prepare and lodge a SAD-IED thru an accredited VASP.
 The IED, which is in the form of a simplified SAD, is used as a document for processing of
advanced payment of customs duties.
 The sub-system also processes IED cancellation messages sent by AABs to ensure that
only valid advanced payment deposits are claimed by importers.

The diagram below illustrates the Advance Payment Deposit Process Flow:

The diagram below illustrates the Advance Payment Deposit Process Flow:
Final Payment Sub-System

The e2m-Customs Payment System computes the final amount payable as follows:

 Total Assessment Net of Exemption

 Less: Advanced Duty Paid
 Less: TCCs/TDMs applied as referred to in the SAD/IEIRD
 Equals Final Amount Payable to BOC thru AAB

The diagram below illustrates the Final Payment Process Flow:

The diagram below illustrates the Final Payment Process Flow:

 PMTS Validation on the Final Payment of Duties, Taxes, and Other Charges

Payment in cash means payment through the Authorized Agent Banks. For payment by
non-cash, the Payment System first applies the non-cash instruments in the payment. If
the non-cash instruments designated by the importer are not enough to cover the
payable duties and taxes, the Payment System prepares a payment instruction to the
importer’s designated bank requesting “payment” of the unpaid balance. The bank sends
a confirmation to the Payment System when the balance amount is debited from the
importer’s account and credited into BOC’s account.

The non-cash payment instruments declared in the SAD/IEIRD are verified against
database records during assessment of the import entry.

 If with declared TEC, the following validations are performed:

 TEC must exist in the database and must not be expired
 Importer TIN, HS Code, Type of Packages declared in the TEC and in the SAD/IEIRD
document should match
 Weight declared in SAD should not exceed weight specified in TEC
 Registry No. declared in the TEC should have matching entry in the manifest
database upon TEC creation

 If with declared Advance Duty Deposit (IED), PMTS performs the following validations:
 IED must exist in the database and must not be expired

 Importer TIN declared in the SAD / IEIRD and in the IED must match
  If assessed duty is equal to the Advanced Duty Deposit balance, PMTS will
automatically apply the balance and tag the IED entry in the database that there is
no more remaining balance on the Advanced Duty Deposit.

 If assessed duty is less than the Advanced Duty Deposit balance, PMTS shall apply
only the amount that has been assessed and update the balance of the IED entry in
the database.

 If the assessed duty is greater than the Advanced Deposit balance, PMTS will only
apply the remaining balance and tag the IED entry in the database that there is no
more remaining balance on the Advanced Duty Deposit.

 If with TCCs/TDMs, PMTS performs the following validations:

 Tax Debit Memo must exist in the database and must not be expired
 Importer TIN declared in the TDM and in the SAD / IEIRD must match

Government Accounts

The Government Accounts Sub-system caters to government agencies which are authorized to
avail of the Deferred Payment for Government Agencies in their import transactions with BOC.
The sub-system enables BOC to track records of shipments released under the deferred
payment scheme via the BOC backend system database. It allows authorized BOC
offices/Collection Service Offices to view the particulars of the shipments online and generates
summary reports (like Statement of Accounts and Report of Duties and Taxes Availment) on a
quarterly basis for reconciliation and billing purposes.

For importations applied under the DPGA scheme, The BOC applies the normal procedures for
evaluating SAD transactions with additional checks to verify that the government agency’s CPRS
profile has a valid JO 2-91 authority. After successful validation, BOC proceeds with assessment
of the importation.

System computes Customs Duties, Taxes and Other Charges and stores Duties and Taxes as Tax
Relief. Only the global tax Import Processing Fee will be payable after assessment

The assessed duties and taxes are not included in the computed final payment amount. The
amount due from duties and taxes is collected through BOC’s tellering system.

Additional Notes on Payment System (CAO 10-2008)

  TCC, TDM, IED/Advance Payment Deposit cannot be used for payment of charges such
as IPF, Container Security Fee, etc; therefore, every import entry will generate a
payment instruction to the AAB.

 IED: An IED is valid for seven (7) days from the date the payment instruction is
generated by the system; Beyond this, an IED application is considered expired. A new
IED then has to be filed.

 For shipments covered with L/Cs, final payment must be made to the same bank where
the L/C was opened.

 Final Payment: if no payment confirmation is received within 15 days from the date of
receipt by the AAB of the final payment instruction, the import entry is considered
abandoned.

 Unused IED may be cancelled upon valid request to the Revenue Accounting Division
(RAD) and may be refunded following the regular refund process.

10.0 Online Release System (OLRS)

The Online Release System (OLRS) involves the transmission of release or loading instruction
messages from the Bureau of Customs to their respective transit facilities, which include
Arrastre operators, off-dock CY-CFS operators, and warehouse operators, granting these
entities authority to release the goods to their rightful owner/importer/broker. The transit
facility can retrieve and provide feedback through the BOC Portal VASP Gateway.

Features of the OLRS

a) Automated generation of ‘release instruction’ message to the transit facility upon

importer’s settlement of duties and taxes on import entries;

b) Confirmation on the location (and ‘ownership’) of goods or tagging of release

instructions as misrouted by the transit facilities;

c) Modification of Location of Goods in the SAD for entries whose release instructions have
been sent to wrong transit facilities (misrouted)

 Misrouted instructions are tagged by the transit facility as ‘Misrouted’. This

triggers an ‘Uploading of Location of Goods’ functionality in the system;
  The Broker requests the Examiner/COO III to update BOX 30 (Location of Goods)
in the assessed SAD;

d) Amendment of old/misrouted release instructions

 The Examiner/COO III forwards the modified document to the Principal

Appraiser/COO V who then amends the misrouted release instruction;

e) Generation and transmission of new release instructions to the right transit facilities;
and

f) Cargo waybill is tagged as ‘RELEASED’. The transit facility releases the cargo to the
importer/broker upon presentation of proof of ownership of the goods (e.g., pink slip).

Note: Informal/Transshipment entries are released using the ‘Manual Discharge’ function
in the e2m. This is utilized by the Informal Entry Division (IED) for informal entries
and DepCol for Operations for transhipment entries.

Types of OLRS Release Instruction Messages

Sent Pending Indicates that the release instruction message has been sent to the
specified transit facility.
Confirmed Ownership Indicates that the transit facility has confirmed that the subject
shipment is stored in their facility.
Released Indicates that the transit facility has completed the release of the
cargoes to the rightful owner. OLRS tags the waybill record with the
date and time the cargo has been completely released to the
consignee.
Suspended Indicates that the shipment has an existing Hold/Alert Order.
Misrouted Indicates that the initial release instruction was sent to a wrong
transit facility. To amend the misrouted release instruction a post
entry modification needs to be done.
Amended Indicates that the release instruction message has been amended.
A new Release Instruction number will be assigned to the release
instruction that has been amended.
Release of Shipment

After completing e2m Customs formalities and clearance procedures, release of shipment shall
be as follows pursuant to CMO 27-2009:

1. An On-line Release Instruction is immediately generated by the e2m Customs OLRS after
the bank debit confirmation is received from the BOC-BAP/PCHC payment gateway.

2. For shipments stored at the Port temporary storage facility or at other transit sheds (CY-
CFS, Dangerous Goods Area) e2m Customs System sends the electronic release
instruction to the transit shed. The transit shed shall provide e2m Customs System with
the electronic feedback message on the release of the shipment from the temporary
storage facility.

3. Misrouted release instructions, defined as release instructions sent to a transit shed

does not store the cargo referred to, shall be routed to correct transit shed as soon as
the recipient transit shed informs e2m Customs OLRS of the mis-routing The SAD is
updated with the correct transit shed code by the designated BOC officer.

4. For shipments discharged at piers or discharge areas where connectivity is not present,
a release instruction will be printed from the VASP by the Importer/Customs Broker,
signed by the Port Collector or his designated representative and physically transmitted
to the pier or discharge area. After the release, the paper containing the release
instruction will be returned to the Port’s PID or POD which will update the bill of lading
status to signify shipment has been released to the consignee.

5. Only the release instructions described in Item 2 (Item 4.11.2 of CMO 27-2009) shall be
honoured by the transit shed. In cases of system breakdown which prevents the
transmittal of the on-line release instructions, the Commissioner of Customs or his
designated official, shall allow the use of manual release instructions in the prescribed
format under item 4 (Item 4.11.4 of CMO 27-2009) above.

6. No other authorizations or approvals are required for shipment release except for the
electronic release instructions or in the case of non-Internet transit facilities, the duly
signed manual release instruction.

7. If a Hold and Alert Order has been applied to the bill of lading and this has not been
lifted at the time of payment, no release instruction shall be generated to the transit
sheds. Only upon lifting of the Hold and Alert Order will the release instruction be issued
by e2m Customs System.
References
CAO Number Subject
10-2008 Payment Application Secure System Version 5.0 (PASS 5)
2-2007 Accreditation, Establishment & Operation of e-Customs Value Added Service Providers
(VASPs)
1-2007 Penalties Related to Inward Foreign Manifest and Consolidated Cargo Manifest
7-2002 Establishment of Industry-Specific CBWs and the Rules and Regulations Governing Its
Operations
2-91 Rules and Regulations for the Establishment, Operations, Supervision, and Control of
Customs Bonded Warehouses

CMO Number Subject

45-2009 Supplemental Guidelines in the Implementation of Customs Memo Order (CMO) 27-
2009 regarding Tentative Release
44-2009 CPRS Registration of One-A-Year Importer (Previously First and Last Importation
Scheme)
40-2009 Transitory Procedures prior to full implementation of E2m Customs System for
Informal Entries & Transhipment/Transit Declarations
38-2009 Supplemental Guidelines in the Implementation of CMO 27-2009
37-2009 Submission of e-Manifest through a Value Added Service Providers (VASPs) &
Implementing Guidelines for Customs Administrative Orders 1-2007
30-2009 Procedures for CPRS Accreditation of CBWs and CY / CFS
27-2009 Procedures for the Implementation of e2m Customs System – Phase 3: Import
Assessment System (IAS) in all Customs Ports Nationwide
23-2009 Revised Rules and Regulations on Accreditation of Importers thereby amending
Customs Memorandum Order No. 15-2009 dated April 13, 2009
15-2009 Revised Rules & Regulations on Accreditation of Importers
6-2009 Procedures for the Payment of Advance Duty Deposit and the Final Payables
Implementing CAO 10-2008 and BSP Circular 638 series of 2009
3-2009 Amendments to CAO 1-2007; Penalties Related to Inward Cargo Manifest and
Consolidated Cargo Manifest

39-2008 Initial Registration of Clients and Stakeholders with the Electronic-to Mobile or e2m
Customs System; Data Build-up Phase of the Client Profile Registration System or CPRS

Unnumbered Memorandum
Unnumbered Supplemental Guidelines in the Implementation of CMO 27-2009 re: Examination of
dated 10 Shipments Selected for Red Lane or X-Ray Inspection
October 2009