REPUBLICOFTHEPHILIPPINES DEPARTMENTOFFINANCE

BUREAUOFCUSTOMS
MANILA1099 CUSTOMSADMINISTRATIVEORDER NO.32006A SUBJECT: AMENDING PERTINENT PROVISIONS OF CAO 32006 ON THE RULES AND REGULATIONS GOVERNING THE ACCREDITATION OF CUSTOMS BROKERS WITH THE BUREAU OF CUSTOMS AND FOR OTHER PURPOSES. ByauthorityofSections602and608oftheTariffandCustomsCodeof1978that defines the general duties, powers and jurisdiction of the Bureau of Customs in relationtoR.A.9280regulatingthepracticeoftheCustomsBrokersProfessionin thePhilippines,thefollowingamendmentstoCAO32006ontheaccreditationof customsbrokerswiththeBureauofCustomsareherebypromulgated. PARTIGENERALPROVISIONS 1 Objectives 1.1 ToensuretheeffectiveandproperenforcementoftheTariffand Customs Laws and all other laws, rules and regulations relating totheTariffandCustomsAdministration. Topreventandsuppressallformsofsmugglingandotherfrauds againstcustomsrevenue. Toregulatetheconductofcustomsbrokers.

1.2 1.3 2.

DefinitionofTerms Whenusedintheserulesandregulations,unlessthecontextprovide otherwise,thefollowingtermsorphrasesshallhavethemeaningindicated: 2.1 "CustomsBroker"referstoanybonafideholderofavalidCertificate of Registration/Professional Identification Card issued by the Professional Regulatory Board and the Professional Regulation CommissionwhoisaccreditedtopracticeintheBureauofCustoms. 2.2 "Customs Broker Practice" refers to the professional services renderedby

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2.3 2.4 2.5 2.6 2.7 2.8 2.9

2.10

2.11

acustomsbrokerintheBureauofCustomspursuanttothepertinent provisionsofSection6,CustomsBrokersActof2004. "BOC"referstothe BureauofCustoms oranyofitsofficer/official,other thantheCommissioner,dulyauthorizedtorepresentthesaidoffice. "Commissioner'referstotheCommissionerofCustoms. "PRC"referstotheProfessionalRegulationCommission. "PRBCB"referstotheProfessionalRegulatoryBoardforCustoms BrokerscreatedpursuanttoSection5ofR.A.9280. "LS"referstotheLegalServiceoftheBureauofCustoms. "CAS"referstotheCustomsAccreditationSecretariatoftheLegal Service. "APO"referstoAccreditedProfessionalOrganization.Forpurposesof theseregulations,itreferstotheChamberofCustomsBrokers,Inc. (CCBI) or any professional organization of customs brokers, which may hereafterbeaccreditedbythePRC. "PSB"referstothePhilippineShippersBureauoftheDepartmentof Tradeandlndustry~which,amongothers,istaskedwiththeaccreditation ofseafreightforwarders. "CAB"referstotheCivilAeronauticsBoardoftheDepartmentof Transportation and Communication, which, among others, is tasked with theaccreditationofairfreightforwarders.

3. AccreditationofCustomsBrokersRequiredwiththeBureauofCustoms. Accreditation is the process for registration and/or listing of customs brokers desiring to engage in customs brokers practice. Customs Brokers desiring to practice their profession at the BOC shall apply for accreditation and obtain a CertificateofAccreditationbeforetheymayengageincustomsbrokerspractice. Nothing herein shall be construed as prohibiting corporations to transact business with the bureau pertaining to shipments of their clients for as long as entries with supporting documents are duly signed by a licensed accredited customsbroker. 4. TransactionforwhichservicesofaCustomsBrokermaynotberequired. AnaccreditationfromtheBOCisnotrequiredinthefollowingtransactions. 4.1 Forone'sownaccount.Apersondealingincustomsandtarifftransactions attheBureauofCustomssolelyforhisownaccountand notinbehalfof anotherunlesstheimporterorexporterisengagedinthegeneralimport

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4.2

Transactions of importers and exporters doing business as natural persons or under sole proprietorships, but they cannot delegate their authority to transact to their employees or other persons except to registered and licensed customs brokers or to freight forwarding companiesdulyregisteredandaccreditedbythePSBortheCAB. Export transactions of juridical exporters belonging to priority export industriesasdefinedbytheExportDevelopmentCouncilinlinewiththe Philippine Export Development Plan, as embodied in EDC MC No. 1 seriesof2006. Transactions of freight forwarding companies duly registered and accredited by the PSB or the CAB, through their customs representatives, provided that their documents are duly signed by licensedandBOCaccreditedcustomsbrokers. As bona fide customs representative (personero) of a customs broker or a freight forwarding company duly registered and accredited by the PSB or the CAB or an air express company duly accredited by the BOC, and acting solely for his employer, subject to the following conditions: 4.5.1 Hisnameappearsonthecertifiedlistofcustomsrepresentative oranyadditiontheretosubmittedbyacustomsbrokerorafreight forwarding company duly registered and accredited by the PSB or the CAB or an air express company duly accredited by the BOC,and 4.5.2 HeisaholderofavalidCustomsPassorIDdulyissuedbythe BOC/ESSorthePSBortheCAB. Mailimportation.Noregistrationisrequiredofpersonsclaimingparcel inpostsofficessubjecttocustomsclearancepriortodeliveryProvided, Thatthepersonclaimingthemailistheaddresseeshownontheparcel beingclearedandpositivelyidentifiedthruavalidIDcard,andthatthe parcel does not contain articles in commercial quantity required to be declaredinaformalentry/informalentry. Diplomaticpouchesandshipmentclaimedbyauthorizedrepresentative oftheforeignembassy,consulate,legationorspecializedagencyofthe UnitedNationsconcernedexceptnondiplomaticshipmentsconsigned tonondiplomaticofficialsoremployeesofsaidoffices.

4.3

4.4

4.5

4.6

4.7

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PART11ADMINISTRATIVEPROVISIONS 1. AccreditationOffice: 1.1 TheLegalService(LS)throughtheCustomsAccreditationSecretariat (CAS) shall be responsible for processing the applications for accreditation of customs brokers desiring to conduct their business withtheBureauofCustomsoranyrepresentativethereof. TheCASshallperformthefollowing: 1.2.1 Receive/Process applications for accreditation of customs brokerswithcompletesupportingdocuments. 1.2.2 RecommendapprovaltotheLSDirectorProvidedthat,incase ofdisapprovaloftheapplicationaNoticeofDisapprovalclearly stating the grounds therefor shall be signed and served to the applicant,copyfurnishedtheCommissionerandthePRBCB. 1.2.3 Keep and maintain a 201 File of all customs brokers applying for accreditation, with the complete record of the applications and final disposition and all other relevant matters such as records of investigations involving violations of law and/or customsrulesandregulations. 1.2.4 SuchothertasksasmaybedirectedbytheCommissionerfrom timetotime.

1.2

2.

AppealtotheCommissioner. 2.1 The decision of the LS Director to disapprove an application for accreditationmaybeappealedtotheCommissionerbyfilinganoticeof appeal with the LS/CAS within fifteen (15) days from receipt of the noticeofdisapproval,withoutprejudicetothefilingofanewapplication if the ground or basis for the disapproval of the original application no longerexists. 2.2 The Commissionershalldecidetheappealwithinthirty(30)days from receiptoftherecordsfromtheCAS. ProcedureforAccreditation 3.1 A duly accomplished application for accreditation under oath and in three (3) copies shall be filed with the CAS upon payment of accreditationfeeofPhpl,000.00andprocessingfeeofPhp300.OO,the official receipts of which shall be attached to the application. For new applicants, the application shall be accompanied with verified photocopiesofthefollowingsupportingdocuments:

3.

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3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 3.1.7 3.1.8 3.1.9 3.1.10

3.1.11

ValidCertificateofRegistrationofCustomsBroker ValidProfessionalIdentificationCard(PIC) ProfessionalTaxReceipt(PTR)foraccreditationyear TaxpayerIdentificationNumber(TIN)CardorCertificate VATRegistrationCertificate,ifapplicable NBIClearance(notmorethat3monthsold) MayorsBusinessPermitifthecustomsbrokerisusinga businessname Good standing certificate from the PRBCB or the APO, as maybenecessary Ifemployed,aCertificateofEmploymentfromhislher employer If not employed, a certified list of his representative(s) with specimen of their signatures to be accomplished in the prescribed form together with their corresponding NBI clearance(notmorethan3monthsold)andaphotocopyof their corresponding SSS ID card (the list maybe submitted withinaperiodoften(10)workingdaysafterissuanceofthe certificateofaccreditation) Afidelitybondwhichmaybeapersonalbondguaranteedby an accredited surety company in the amount of Fifty Thousand(Php50,OOO.OO)pesoswhichwillbeincreasedif found later to be inadequate by the Commissioner upon findingsandrecommendationsbytheCAS. If not employed, a certified list of regular clientsimporters and exporters containing specimen of their signatures or their representative to be accomplished in the prescribed form.

3.1.12

3.2 ForapplicantsresidingoutsideofMetroManila,theapplicationtogether withthesupportingdocumentsmaybefiledwiththeDistrictCollectorof the customs district where the customs broker regularly transacts business. 4 Issuance,Form,EffectandValidityofCertificateofAccreditation. 4.1 Uponapprovaloftheapplication,aCertificateofAccreditationshallbe issued to the Customs Broker under a BOC official seal and upon paymentofthedocumentarystamptaxofPhp15.00.Thecertificateof accreditation shall have a serial number (aside from the printed serial numberoftheform),whichshallbesequentiallygivenandfollowedby the

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year of its validity (Example No. 00002005). Said serial number shall be constant and treated as a permanent identification number of the accredited customs broker concerned and only the year of its validity shallbechangedifandwhenarenewalcertificateofaccreditationwill beissuedduringthesucceedingyears. 4.2 Issuanceofacertificateofaccreditationauthorizesacustomsbrokerto practice his professionin any port of entry in the Philippines and shall bevalidonlyuptotheendoftheyearofissuanceunlesssuspendedor revokedforcause.

PARTIIIANNUALRENEWALOFACCREDITATION 1. PeriodofRenewalandRequirements. 1.1 The certificate of accreditation must be renewed annually if the customs broker concerned desires to continue transacting with the BOC. The period for filing of renewal application is from January to Marchofthefollowingrenewalyear.Suchapplicantshallfilewiththe CAS a sworn letter of application for renewal of accreditation, which shall state among others any material change/s on his original applicationform. Renewalofapplicationshallbeaccompaniedwiththeofficialreceipts evidencing payment of the nonrefundable amounts of the fees prescribed in Sec. 3.1 of Part 11 hereof and verified photocopies of thefollowingsupportingdocuments: 1.2.1 ValidProfessionalIdentificationCard(PIC) 1.2.2 ProfessionalTaxReceipt(PTR)foraccreditationyear 1.2.3 Mayors Business Permit if the customs broker is using a businessname 1.2.4 Good standing certificate from the PRBCB or the APO, as maybenecessary 1.2.5 Ifemployed,CertificateofEmploymentfromhisemployer 1.2.6 NBIClearance(notmorethan3monthsold)' 1.2.7 SSSClearanceCertificateofcustomsbrokerasanemployer 1.2.8 If not employed, certified list of bona fide customs representatives(updated)supportedbythelatestcopyofits SSS Form R1A showing date of filing with SSS and correspondingNBIClearance(notmorethan3monthsOld) oftherepresentativesonthelist 1.2.9 Ifnotemployed,certifiedlistofregularclientsimportersand exporters

1.2

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1.2.10

1.3

1.4

If not employed, financial statements for the year immediately preceding duly accomplished by a reputable certifiedaccountantoraccountingfirm 1.2.11 Receiptforpremiumpaidforhisfidelitysuretybondwiththe appropriatebondendorsement.(incasetheprevioussurety company is no longer accredited, a new surety bond is requiredasprescribedintheseregulation) 1.2.12 SuchotherdocumentswhichtheLegalServicemayrequire fromtimetotime Theaforementioneddocumentsmustbe submitted notlaterthanthe 16th day of April otherwise the application for renewal shall be consideredwithdrawn. No application for renewal of accreditation shall be accepted if the certificateofaccreditation hasbeensuspendedorrevokedfor cause during the time it was subsisting, unless subsequently lifted by the CAS.

2.

EffectofFailuretoTimelyRenewAccreditation. 2.1 Theaccreditationascustoms brokershallcontinuetobe validwithin the period of renewal unless directed otherwise by the CAS. The Commissionershallafterthe16thdayofAprilofeachyear,issueand publish a circular containing a list of customs brokers whose accreditationhasnotbeenrenewedandthereforecouldnolongerbe authorizedtopracticeintheBOC. 2.2 However,customsbrokerswhohavefiledtheirapplicationforrenewal of accreditation and have paid the required fees shall continue to practicetheirprofessionintheBOCpendingissuanceoftheirrenewal certificate of accreditation. Upon request, they shall show a copy of their application letter for renewal showing date of its filing with the CASortheDistrictCollectorofthecustomsdistrictconcerned. LateFilingofRenewalApplications. Customsbrokersshallbeallowedtofiletheirrenewalapplicationsafterthe 16th day of April of the current year upon payment of an additional nonrefundable amount of Php3,000.00 as delinquency fee. In the interregnum, the customs broker shall desist from practicing his profession withtheBOCafterexpirationofthevalidityofhisaccreditation.

3.

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PARTIVDUTIESANDRESPONSIBILITIES OFCUSTOMSBROKERS 1. Recordkeeping Each customs broker shall keep and maintain, in a correct, orderly, and itemizedmanner,completerecordsandfilecopiesofallhiscorrespondence andotherrecordsrelativetotheconductofhisprofessionasprovidedforin CAO52001. RetentionofRecords. 2.1 AsprovidedforinSectionIVA.3ofCAO52001,asamendedby CAO 42004, and Section 11113 of CMO 22002, all customs brokersshallkeepattheirstatedofficeaddresscopiesofimportation records in whatever form covering their professional practice includingrecordsenumeratedthereinforaperiodofthree(3)years fromthedateoftransactions,forauditcompliance. 2.2 The records referred to above shall be considered confidential and shall not be disclosed to any person other than his clients by the broker nor the Commissioner or his authorized representatives, except on subpoena duces tecum issued by a duly authorized customsofficialoracourtofcompetentjurisdiction. 2.3 Duringtheperiodofretention,customsbrokersshallmaintainhis records in such manner that they may readily be examined and made availableupon demand for inspection, copying, reproduction, or other official use by the Commissioner or his authorized representative. InterferencewithExaminationofRecords. Acustomsbrokershallnotrefuseaccessto,conceal,remove,ordestroythe wholeoranypartofhisrecordsrelatedtothepracticeofhisprofessionsas acustomsbrokerwhichisbeingsought,orwhichthebrokerhasreasonable grounds to believe may be sought, by the Commissioner or his authorized representative,norshallabrokerotherwiseinterfere,orattempttointerfere, with any proper and lawful order to procure or reproduce relevant informationcontainedinsuchrecordsrequiredtoberetained. Responsiblesupervisionandcontrolovertheirrepresentatives. Customs brokers shall exercise strict supervision and control over their representatives when following up transactions related to their customs practice.Theyshallbeheldstrictlyresponsibleandsolidarilyliableforacts or omissions of their representative which, in the exercise of due and reasonablecareanddiligence,theycouldhaveforeseenorprevented.

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5.

Diligenceincorrespondenceandpayingmonies. 5.1 Customsbrokersshallexerciseduediligenceinhandlingfinancial settlements,inansweringcorrespondence,andinthepreparation and filing of documents relating to the practice of his profession andothercustomsmattershandledbyhim. Funds received by a broker from a client for payment of duties, taxesandotherchargesorotherdebtsorobligationsowingtothe BureauofCustomsshallbepaidwithinfive(5)daysfromdateof receiptofsuchfundsordatedue.Likewisecustomsbrokersshall within ten (10) days account to their clients the funds or other charges received by them from the Government or properly payableonaccountoftheirclient'sbusiness.

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Conflictofinterest. A customs broker who is an importer himself shall not act as such for anotherimporterwhoimportsgoodsand merchandiseofthesamegeneral characterasthatimportedbythebrokerunlesstheclienthasfullknowledge ofthematter. Falseinformation. A customs broker or his representative shall not file or procure or assistin thefilingofanyclaim,orofanydocument,affidavit,orotherpaperknownby him to be false and fraudulent nor shall he knowingly give, or solicit or procurethegivingof,anyfalseormisleadinginformationortestimonyinany matter pending before the Bureau of Customs or official representative thereof. Undueinfluenceupongovernmentofficialsandemployees. A customs broker or his representative shall not influence or attempt to influence the conduct of any BOC official or employee of the BOC in any matterpendingbeforeitoranyofficialrepresentativethereof,bytheuseofa threat, false accusation, duress, or the offer of any special inducement or promise of advantage, or by bestowing any gift or favor or other things of value. MisuseofAccreditationPrivilege. Acustomsbrokershallnotpermithisaccreditationorhisnametobeused, directly or indirectly, by or for any nonregistered custom broker or other persons,otherthanhisownrepresentative(s).

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10.

RelationswithaBrokerwhoseAccreditationhasbeenSuspendedor Revoked. Acustomsbrokershallnotdirectlyorindirectly 10.1 Accept employment or use his service to effect a customs transaction as an agent or surrogate of a broker whose accreditation has been revoked, suspended or cancelled, and couldnolongerpracticehisprofession, 10.2 Assist in the furtherance of any customs transaction of such persons,and 10.3 Permitanysuchpersondirectlyorindirectlytoparticipateinany manner in the promotion, control or direction of his customs practice. Nothing herein shall be deemed to prohibit any customs broker from acting as a broker for any bona fide importer or exporter, notwithstanding if such importer or exporter is also a customs broker whose accreditation has been suspended, revoked,orcancelled. AdvisetoClients. 11.1 Withholdingoffalseinformation.Acustomsbrokershallnot withholdinformationrelativetoanycustomspracticefromaclient who is entitled to the information. He shall exercise due diligence to ascertain the correctness of any information and shall not knowingly impart to a client any false information relative to his practice. 11.2 Errororomissionbyclients.Acustomsbrokerwhoknowsthata clienthasnotcompliedwiththelaworregulationsorhasmadean error,oromissionon,anydocument,affidavit,orotherpaperwhich thelaworregulationsrequiressuchclienttoexecute,shalladvise hisclientpromptlyofsuchfact. 11.3 Illegalschemes.Acustomsbrokershallnotsuggesttoaclientor a prospective client any scheme or plan known to be illegal or irregulardesignedtoevadepaymentofanyduty,taxorcpargeor otherdebtorobligationowingtotheGovernment,oranyscheme aimed at putting the BOC or any official representative thereof in disrepute. WithdrawalofServicesasBroker. Therightofacustomsbrokertowithdrawhisservices,onceassumed,must arise only from good cause. A broker should not abandon the unfinished taskstothe detriment of hisclientwhenthe clientinsistsupon an unlawful courseinthe

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with malicious intent disregards an agreement or obligation as to fees or expenses, in which case the broker may be justified in withdrawing after submissionofawrittennoticeofwithdrawalwhichmustbeconfirmedbythe clientandtheCollectorofCustomsofthePortconcernedtherebyallowing the client sufficient time to employ the services of another customs broker provided,thattheclientmaydischargetheservicesofthebrokerforcause or loss of confidence with Notice to the CAS and Collector of Customs concerned.Uponwithdrawal,ifservicesafteraretaineroradvancefeehave been paid, the customs broker shall refund to the client such unearned portion. 13. LimitationofLiability. Acustomsbrokershallnotevadehisliabilitywithrespecttoajustclaimby the client arising out of the wrongful act or negligence of the broker or his customs representatives in connection with a matter handled by him nor shallenterintoacontract,whichpurportstoevadehisliability. DisplayofCertificate. A broker must have an office for business where he shall display his Certificate of Accreditation as Customs Broker or photocopy thereof conspicuously in his office so that it may be seen by anyone transacting businessinhisoffice. ChangeofBusinessAddress. Acustomsbrokershallimmediatelynotifyhisclientofanychangeofoffice address and give written notice of his new address to the BOC (Attn. Customs Accreditation Secretariat), copy furnished the Collector of the Port(s)where heisregularlypracticingtheprofession,withinten(10)days aftermovingtothenewaddress. SeizureandProtestCases. Acustomsbrokershallnotappearinbehalfofhisclientdrasanintervenor inanyseizureorprotestcaseunlessheisatthesametimeengagedinthe practice of law. The broker, however, may appear and assist the counsel duringthehearingofthecase.

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PARTVCANCELLATION,SUSPENSIONOR REVOCATIONOFACCREDITATION 1. GroundsforSuspensionorRevocationofAccreditation. The grounds for suspension or revocation of accreditation as customs brokershallinclude,butnotlimitedto,thefollowing: 1.1. Deliberate failure or refusal without justifiable reasons to comply with the duties and responsibilities of customs brokers prescribed in these regulations. "Justifiable reason" as contemplated herein shall mean any and all acts the commission of which shall not renderhimliableeitheradministrativelyorcriminallyunderexisting laws,rulesorregulations. Willful misdeclaration or undervaluation of imported or exported articles that resulted or would have resulted in the loss of governmentrevenues,orinevasionofanycontrolregulationofthe government. Failuretoreportto thepropercustomsauthoritiesanyfraud upon the customs revenue which has come to his knowledge or cognizance, or shall knowingly assist or abet the importation or exportationorentryofprohibitedoranyarticlewhichimportationis contrarytolaw. Misappropriation of the funds entrusted to a customs broker by a client for payment of duties, taxes and other charges and other accountsorobligationsowingtotheBureauofCustomsandother authorizedagenciesoftheGovernment. Conviction, at any time after filing of an application for accreditation,ofacrimeinvolvingmoralturpitude. Continuedneglectofdutyorincompetence. Lack of proper supervision and control over their customs representativesauthorizedtoactontheirbehalfinconnectionwith practiceoftheprofessions. Discovery of false or misleading information in his application for accreditationwithrespecttoanymaterialfact. Violationoftheserulesandregulations. PARTVIADMINISTRATIVEPROCEEDINGS 1. InvestigationofComplaintorCharge. 1.1 Everycomplaintorchargeagainstacustomsbroker,whichmaybe the basis for disciplinary action, may be lodged with the Director, Legal

1.2

1.3

1.4.

1.5 1.6 1.7

1.8 1.9

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1.2

1.3

Service, who shall then refer the same to the Prosecution and Litigation Division, to determine if there is sufficient basis to recommendfilingofchargesagainstthebroker. If the complaint or charge is found to be serious and prima facie evidenceisshowntosupportthecomplaintorcharge,theDirector, Legal Service may motu propio issue an order of preventive suspension of the broker in the practice of his profession if such action is warranted and necessary for the protection of importers/exporters, which suspension shall be for a period of not morethanthree(3)months,withoutprejudicetothecontinuationof theproceedingfordisciplinaryaction. IftheDirector,LegalServicedeterminesthatthereisnobasisforthe charge, he shall so notify the broker/Importer of his decision. If the Director finds that filing of appropriate charges is necessary or proper,heshallsonotifytheProsecutionandLitigationDivisionwith instructions that a proposed statement of charges be prepared for hisreview,ifnotpreviouslysubmitted.

2.

ContentsofStatement/NoticeofCharges. 2.1 Thestatementofchargesshallgiveaplainandconcise,description and summation of the facts claimed to constitute grounds for suspension or revocation of the accreditation. A statement of charges, which fairlyinforms the broker of the charges against him so that he is able to prepare his response, shall be deemed sufficient. 2.2 TheStatement/NoticeofChargesshallinformthebrokerthat..2.2.1 Hemayberepresentedbycounselofhischoice. 2.2.2 Hewillhavetherighttocrossexaminewitnesses. 2.2.3 He shall file in duplicate a verified answer to the charges within a period of ten (10) working days after receipt thereof. CommencementofFormalProceedings. 3.1 Within fifteen (15) days from the date of receipt of the verified answer submitted by the broker, the Hearing Officer shall recommendanyofthefollowing: 3.1.1 Deletion from the statement of charges those which he deemstohavebeensatisfactorilyansweredbythebroker, or 3.1.2 Dismissalofthechargesaltogetherifhe deemsittohave beensatisfactorilvansweredbythebroker

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3.2

Upon receipt of the recommendation of the Hearing Officer, the Director, Legal Service shall determine and direct the appropriate courseof actiontobe taken.Ifbasedon(a)above,shallorderthe HearingOfficertosetthedateandtimeofthe hearingifbasedon (b) above, shall so notify the broker accordingly. However, any decision to dismiss the charges is without prejudice to the filing of anotherchargebasedonothergroundsasmaybewarranted.

4.

ServiceofStatement/NoticeCharges. Thestatement/noticeofchargesshallbedeliveredtothebrokerpersonally or by registered mail. If attempts to serve the same are unsuccessful, the noticeandstatementofchargesshallbeleftwiththecontactpersonorthe personinchargeofthebroker'soffice,properlyacknowledged. FailuretoAppear. When a respondent broker or his counsel of record fails to appear on the dateandtimeofascheduledhearing,theHearingOfficeshallproceedwith the hearing ex parte as scheduled and shall hear and receive evidence submitted in behalf of the Government, unless a timely motion for postponementforjustifiablecauseismade. Hearing. 6.1 The Director, Legal Service shall designate/assign a hearing officer as well as a government prosecutor from among the lawyersoftheLegalService. Rights of respondent broker. The broker shall be given full opportunitytodefendhimselforthroughhiscounselofrecord,to testifyaswitnessortopresentwitnessesinhisbehalfwhoshall be subjected to cross examination by the prosecutor, and shall havetherighttoexamineallexhibitsofferedatthehearingandto crossexaminewitnessesagainsthim. Interrogatories.Uponwrittenrequestofeitherparty,theHearing Officermaypermitdepositionuponoralorwritteninterrogatories tobetakenbeforeanyofficerdulyauthorizedtoadministeroath. The other party shall be given a reasonable time in which to prepare crossinterrogatories and, if the deposition is oral, shall be permitted to crossexamine the witness. The depositionshall becomepartoftherecordofthecase,

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7.

OrderofHearing. UnlesstheHearingOfficerdirectsotherwiseforspecialreasons,theorderof hearingshallbeasfollows: 7.1 Theprosecutorshallproduceevidenceinsupportofthecharges preparedagainstthebroker. 7.2 The respondent broker or counsel shall then offer evidence in supportofhisdefense.Counselsmaybeheardfromeachsidein the order herein prescribed but, in any event, the prosecutor is entitledtotheopeningandclosingexamination. Evidence. The rules of evidence shall be substantially followed in the reception of evidence, but technical errors in the admission of evidence, which do not prejudice the substantial rights of any of the parties, shall not vitiate the proceedings. Postponements. Hearings shall be conducted expeditiously and shall not exceed three (3) months from date of the first scheduled hearing. Postponements of the hearingmaybegrantedtoeitherpartynotmorethantwo(2)timesandnot exceeding two (2) weeks for each postponement except when there are special circumstances or justifiable reasons which, in the opinion of the HearingOfficer,warrantthegrantoftherequestforfurtherpostponement.If theprosecutorrequestsformorethantwo(2)postponementsormorethan onemonth postponement after the case has been set for hearing, the chargemaybedismissed.Iftherespondentbrokerrequestsmorethantwo (2) postponements or more than one month postponement, he shall be considered in default and the Hearing Officer shall thereupon proceed to hear the testimony of the witnesses of the government and/or received documentary evidence, and shall draft the decision in the case for review andapprovaloftheDirector,LegalService. SubmissionofMemorandum. The Hearing Officer may, in his discretion require the prosecutor or respondent broker or both to submit a memorandum in support of their respectivesidesasmaybewarrantedbythesituation,withrespecttotheir argumentsrelativetothefactsinissue.

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11.

ContentsofDecision. The decision determining the merits of the case shall state clearly and distinctlythefactsandthelaworregulationsonwhichitisbasedandsigned by the Director, Legal Service. If the charge is based on breach of these rules and regulations and/or the Code of Ethics of the customs broker profession,thesameshallalsobestatedinthedecision,copyofwhichshall be furnished the Professional Regulation Commission in case of breach of thelatter. PartialProofofCharges. IftheDirectorfindsthatoneormoreofthechargesisnotsufficientlyproven, hemaybasehisdecisiononanyremainingcharge(s)ifthefactsallegedare sufficientlyestablishedbypreponderanceofevidence. OrderofSuspensionorRevocationofAccreditation. If one or more of the charges are sufficiently established by the evidence presentedatthehearing,thedecision oftheDirectorshallcontainanorder ofsuspensionorrevocationofthebroker'saccreditation,copyofwhichshall befurnishedalltheDistrictCollectorandtheCommissioner ofCustoms.At thesametimetheDirectormayrecommendrevocationofthelicensetothe PRC, if warranted, and shall issue a Customs Memorandum Circular apprising all customs officials and employees as well as the general transactingpublicofsuchaction. PetitionforReconsiderationorRehearing. Acustomsbrokerwhoseaccreditationhasbeensuspendedorrevokedmay withintheperiodforperfectinganappealasprovidedinSec.19hereof,file a verified petition with the Commissioner, copy furnished the Director, to havetheorderofsuspensionorrevocationsetasideormodified,ortogrant a rehearing of the case. No more than one petition for reconsideration or rehearingshallbeallowed. GroundsforReconsiderationorRehearing. Nopetitionforreconsiderationorrehearingshallbeentertainedunlessitis foranyofthefollowingcauses: 151 The decision is manifestly not in conformity with the evidence and/orfactspresentedor 15.2 Newlydiscoveredevidencewhichcouldnothavebeendiscovered and

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15.

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of such character as would probably warrant the modification and/orreversionofthedecision. 16. ActionandProcedureonPetition. 16.1 The Commissioner may, upon receipt of the petition, deny the same if he deems it devoid of merit or set aside his order of suspensionorrevocationandgrantarehearing,whennecessary. If the petition is based upon the cause mentioned in subsection 15.a hereof and the Commissioner finds his decision to be not in conformity with the evidence and/or facts presented, he may amend his decision accordingly without necessarily granting a rehearing, unless he deems the introduction of additional or new evidenceifadvisable. 16.2 IftheCommissionerfindsthepetitionmeritorious,heshallreferthe petition to the Director, Legal Service, with instructions to rehear thecaseandtakeadditionalornewtestimonyand evidence.The Hearing Officer shall, within five (5) days from receipt of such referral, set the date and time for the rehearing with due notice given to the petitionerbroker and the prosecutor at least ten (10) working days prior to the scheduled hearing. The procedure governingtherehearingandthecontentsofthenewdecisionshall bethesameasthatgoverningtheoriginalproceedings. EffectsofGrantingthePetition. 17.1 Apetitionforreconsiderationandrehearinggivenduecourseshall vacatethedecisionrenderedandthecaseshallbehearddenova, but the recorded evidence taken during the course of the original proceedings so far as the same is material and competent to resolvetheissuesshallbereincorporatedattherehearingwithout retakingthesame. 17.2 Apetitionforreconsiderationorrehearingfiledontimesuspends therunningoftheperiodofappeal,andthetimeduringwhichthe petition has been pending shall be deducted from the period for perfectinganappeal. AppealtotheSecretaryofFinanceEffectof. 18.1 A decision of the Commissioner of Customs ordering the suspensionorrevocationoftheaccreditationofacustomsbroker may be appealed to the Secretary of Finance by filing with the OfficeoftheCommissioneranoticeofappealandpaymentofthe amount of Two Thousand (Php2,000.00) Pesos as docket fee withinfifteen(15)daysafterreceiptofcopy

17.

18.

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18.2

18.3

ofthedecisionbythebrokerorcounselofrecord.Ifthe noticeof appealhasbeentimelyfiledandtherequiredamountofdocketfee ispaid,theappealisdeemedperfected. If noappealisperfected within the period herein fixed, the decision of the Commissioner shallbecomefinalandexecutory. The order of suspension or revocation of the accreditation of customs broker shall not be stayed during the pendency of the appeal unless the Commissioner, on motion and after hearing as hemaydeemfairandjust,shoulddirectotherwise. An appeal perfected while a petition for reconsideration or rehearing is pending with the Commissioner constitutes an abandonment of the petition and renders the same moot and academic.

19.

ActionandProcedureonAppeal. 19.1 Withinfive(5)workingdaysafteranappealisperfected,theentire records of the case shall be transmitted by the Commissioner to theSecretaryofFinancewitheachandeverypagedulynumbered inconsecutivemanner. 19.2 Uponreceiptoftherecords,theSecretaryofFinanceshalldecide the case on the basis of the evidence and records transmitted, aided by any memorandum and/or brief which the broker and/or prosecutor may submit. On the other hand, the Secretary of Finance may dismiss the appeal on the ground that the appeal is without merit or is made manifestly to delay, in which case the decision shall be deemed revived and the case remanded to the CommissionerofCustomsforexecution. 19.3 ThedecisionoftheSecretaryofFinancemaybeappealedtothe PresidentofthePhilippineswithinfifteen(15)daysfromreceiptof thedecisionthereof,otherwise,thesameshallbeconsideredfinal andexecutory. NoticeofReinstatement. IftheCommissionerofCustomsortheSecretaryofFinanceonappeal,after reviewing the records and evidence adduced in the hearing finds that the chargesorremainingcharges,doesnotwarrantsuspensionorrevocationof theaccreditation,hemayrenderadecisionorderingtheliftingofsuspension orrevocationandservethebrokerwithNoticeofReinstatement.

20.

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21.

Reprimandand/orFine. 21.1 If the Commissioner of Customs, or the Secretary of Finance on appeal, after reviewing the records and evidence adduced in the hearing finds that the charges or remaining charges, even if duly established, is not sufficiently serious to warrant suspension or revocation of the accreditation, he may serve the broker with a written reprimand. Such reprimand and the facts on which it is based may be considered in connection with any disciplinary proceedingthatmaybeinstitutedagainstthebroker. 21.2 If a reprimand is deemed not adequate enough to deter the customs broker from committing the same or any other offence which would warrant a suspension or revocation of his accreditation, the Commissioner, or the Secretary of Finance on appeal, may in addition to the reprimand may impose an administrative fine on the broker in the amount of One Thousand (Phpl,000.00) Pesos or in an amount equal to the revenue lost to thegovernmentcausedbytheactsofthebrokerwhichgaveriseto thechargesfiledagainsthim,whicheverishigher. ReporttotheProfessionalRegulationCommission. The Commissioner of Customs shall, in the event a decision adverse to a respondent broker has become final and executory, furnish a copy of the decision to the PRBCB for whatever action it may deem proper and appropriatetotakeunderthepremises. ReapplicationforAccreditation. One(1)yearafterthedateofrevocationorcancellationofregistration"with prejudice", a customs broker may petition the Commissioner for reaccreditationandregistrationascustomsbroker.Suchpetitionshallnotbe favorablyconsideredunlesstheCommissionerafterconsideringthegravity of the offense or misconduct which gave rise to the petitioner's disabilityis satisfied that the petitioner has refrained from all activities violative of the' relevant provisions of Part 4 hereof and that petitioner's conduct has been exemplaryduringtheperiodofhisdisability.Inanycase,theCommissioner shallalsotakeintoaccountwhetherthepetitionerhasmadereimbursement forthelossincurredonpartofthegovernment.

22.

23.

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PARTVIIREPRESENTATIVESOFCUSTOMSBROKERS 1. AuthorityandQualificationsofRepresentatives. 1.1 Customsrepresentativesofcustomsbrokersmustbefulltimeregular employees of the broker authorized to act for and in his behalf in following up the processing of entries, permits and other customs documents related to the practice of the customs broker of his profession. 1.2 Nopersonshallbeemployedasacustomsrepresentativeunlesshe possessesthefollowingqualifications: 1.2.1 MustbeaFilipinocitizenoflegalage 1.2.2 Must be at least a high school graduate with no less than three (3) years experience to be certified by his previous employerwhoislicensedcustomsbroker,andthathehas sufficientlyacquiredknowledgeofcustomsoperations. 1.2.3 Must be of good moral character and not known to be notoriouslydisreputableand 1.2.4. NBIClearance(notmorethan3monthsold) 2. ActiononUnqualifiedCustomsRepresentatives. Any customs representative of a broker found not to possess the required qualifications shall be deleted from the certified list of representatives submitted by the broker. If a disqualification is found in the course of processing of his application for registration, his Customs Pass if already issued shall be confiscated by the ESS upon discovery of his disqualification. DisciplinaryActionagainstErrantCustomsRepresentatives. 3.1 Thefollowinggroundsshallbeconsideredassufficientbasisfor confiscationordenialoftheCustomsPassissued. 3.1.1 Discovery of a criminal record or conviction of a crime involvingmoralturpitude 3.1.2 Submission of a fake, spurious or forged document in the course of acting or working on behalf of his employer or otherpersonsdoingbusinesswiththe130C 3.1.3 Disorderlyconductwhileinthecustomszoneorpremises, suchassellingofgoodsormerchandiseandotherformsof gross misbehavior towards customs personnel and other customsbrokerortheirrepresentatives

3.

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3.2

3.3

representativeanyinimical,dishonestorunethicalconduct intheperformanceofhisassignedtasks, 3.1.5 Habitual delinquency in the commission of offenses or violations of rules and regulations promulgated by the BureauofCustoms 3.1.6 "Moonlighting" or extending services on behalf of other brokersand 3.1.7 Anyotheractsprejudicialtotheinterestofthegovernment anditsrevenues. In addition to the confiscation or denial of his Customs Pass, the broker's representative shall be barred from entering the customs zoneorpremisespursuanttoOpinionNo.195,seriesof1958,ofthe Secretary of Justice published in BOC Circular Letter No. 2917 dated 16 September 1958, which shall likewise be ordered by the Commissioner against customs broker whose accreditation has beensuspendedorrevoked. At the instance of the broker or representative concerned or if the ground for the initial action taken as stated above is sufficiently serious or grave, the District Collector shall direct that an investigationbeconductedonthematter.Ifprimafacieevidenceis foundtosupportsuchinitialaction,theCommissionershallissuea definitive ban against the representative concerned otherwise, the matter shall be considered closed and the Customs Pass already confiscated shall be returned. If the evidence adduced during the investigation so warrants, the proper criminal action shall be institutedagainstthebroker'srepresentative.

4.

NoticeofSeparationfromorTerminationofService. Acustomsbrokershall,withinfive(5)workingdaysfromdateofseparation orterminationofemploymentofitsrepresentative,givewrittennoticethereof to the District Collector of the Port where said representative is assigned, andtheCAS(copyfurnishedtheCommissioner)containingthenameofthe representative,thedatetheseparationorterminationbecameeffective,and the number of the Customs Pass issued to him. If the said Customs Pass couldnotbereturned,thereasonforthefailuretoreturnthesameshallbe statedinthenotice. EffectofFailuretoGiveTimelyNotice. Thecustomsbrokerconcernedshallbeheldresponsibleandliableforany violation of the rules and regulations or any irregularity that may be committedbyhisrepresentative,ifnonoticewassentasrequiredinSec.4 hereof.

5.

FromtheLibraryofAtty.A.O.Uvero

PARTVIIIMISCELLANEOUSPROVISIONS 1. TerminationofEmploymentofaBrokerbyEmployerorClient. A client importer/exporter or an employer of a customs broker may, at any timeandforgoodcause,terminatetheservicesofhiscustomsbroker.Such termination, however, shall not bind the BOC or any representative thereof untilwrittennoticeofsuchterminationisfiledwiththeDistrictCollectorofthe Port(s) concerned and the CAS (copy furnished the Commissioner) for properdisposition.Thewritten noticetobefiledshallexpresslycontainthe written conformity of the replacement broker whose services shall be acknowledgedbythe130C. TerminationofBonds Noaccreditationshallremaininforceandeffectunlessavalidsuretybond is maintained on file with the CAS. In case of receipt of a notice of terminationorexpirationofasuretybondonactivefile,theCASshallnotify the concerned customhouse broker in writing, without hearing or other proceeding,thathisaccreditationisrevokedasofthetermination/expiration dateofthebondunlessthebrokershallhavesubmittedavalidreplacement surety bond before such termination or expiry date. Replacement surety bondmustbearaneffectivedatenotlaterthanthetermination/expirydateof theterminated/expiredbond. StationeryandBillingFormStatements. 3.1 Stationery. If not employed, the name and accreditation certificate number of customs brokers shall be printed on the brokers stationery and billing forms. Use of rubberstamp imprint on said documents is prohibited. BrokersshalldesistfromusingintheirofficialcorrespondencewiththeBOC oranyrepresentativethereofdifferentorvariouskindsofstationery. 3.2 Billing statements. If not employed, all billing statements prepared by customs brokers shall indicate, among others, the amount charged as professionalfee. 4. Signingofentriesandothercustomsdocuments. Customsbrokersshall,whensigningentriesandothercustomsdocuments, indicate/statehiscertificateofaccreditationnumberbelowhisprintedname. ExampleJUANA.DELACRUZCANo.0002005

2.

3.

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5.

Rosterofcustomsbrokers. ThePRBCBortheAPO,withinthree(3)monthsafterthedateofeffectivity ofthisOrder,shallsubmitalistofallcustomsbrokerswiththeirrespective officeaddressandtelephonenumber(s),toBOCthrutheCAS.Thelistshall beupdatedeveryendofApril,AugustandDecemberofeachyear. PART IX SPECIAL PROVISIONS RELATIVE TO GENERAL PROFESSIONALPARTNERSHIPSOFCUSTOMSBROKERS

1.

RecognitionbytheBureauofCustoms. Customsbrokerswhohavepooled their professionalexpertise,talentsand resourcestoformageneralprofessionalpartnership(GPP)pursuanttothe provisionsonPARTNERSHIP(TitleIXofBookIV)ofRA386(CivilCodeof thePhilippines)may,atanytime,fileanapplicationforofficialrecognitionof its juridical personality with the BOC which shall be separate and distinct fromthepersonalityofeachofthepartners,whomustbecustomsbrokers asdefinedinthisCA0. ProceduretoObtainOfficialRecognition. 2.1 Initially,adulyaccomplishedapplicationforrecognitioninthree(3) typewrittencopiesshallbesubmittedtotheCASafterpaymentof the nonrefundable amount of Php500.OO as processing fee and the amount of Php 1, 000.00 per partner as recognition fee. The application,which mustbeunderoath,shallbefiledtogetherwith verifiedphotocopiesofthefollowingsupportingdocuments: 2.1.1 Articles of General Partnership with the corresponding Certificate of Registration issued by the SEC attached thereto 2.1.2 Certificate of Registration of Business Name issued by theDTI 2.1.3. TaxpayerIdentificationNumber(TIN) 2.1.4. VATRegistrationCertificate(BIRForm__J 2.1.5. SSSCertificateofMembership 2.1.6. Mayor'sBusinessPermit(current) 2.1.7. Afidelitybondwhichmaybeapersonalbondguaranteed by an accredited surety company in the amount of One HundredThousand(Php100,000.00)pesoswhichwillbe increasediffound

2.

FromtheLibraryofAtty.A.O.Uvero

latertobeinadequatebytheCommissioneruponfindings andrecommendationsbytheCAS. 2.1.7. Certified list of the firm's bona fide customs representatives signed by the Managing Partner together with their corresponding NBI clearance (not more than three(3)monthsold)andSSSIDCard 2.1.8. PrivilegeTaxReceipt 3. Issuance,Form,ValidityandEffectofCertificateofRecognition. 3.1 IftheCASfindsthe application inorder andcompletewithallthe required documents, it shall issue a Certificate of Recognition of the GPP under its official seal upon payment of the required documentary stamp tax, the official receipt number of which shall beproperlyindicated. 3.2 Thecertificateofrecognitionshallhaveaserialnumbertobegiven sequentiallyandfollowedbytheyearofitsvalidity(Example..No. 00002006). The serial number shall be permanently assigned to the GPP concerned as its permanent identification number and onlytheyearofitsvalidityshallbechangedwhenanewcertificate isissueduponrenewalbysaidGPP. 3.3 Official correspondence addressed to the BOC or any representative thereof on matters relative to the practice of the customsbrokersprofessionofaGPPorforandinbehalfofanyof its partners shall be given due course only if the GPP has been officially recognized except those pertaining to the personal concerns of any of its partnersignatories or any representative thereof,whichshallbesignedbysuchpartnersignatory. ConditiononRecognizedGPPs. 4.1 AGPPfirmshallhaveaManagingPartnerwhoshallbethechief operating officer (COO) whose main task is to manage the GPPs practice of the customs brokers profession and shall be the one shown on its Articles of General Partnership or the one chos~'en bythepartnerspursuanttoaresolutionofthepartners. 4.2 AGPPfirm musthavethree(3)or more partnersignatories ifthe scopeofitspracticeextendstocollectiondistrictsoutsideofMetro Manila. SimultaneousFilingofApplications. ApplicationsforaccreditationbycustomsbrokerswhoarepartnersinaGPP andapplicationforrecognitionoftheGPPmaybemadesimultaneously.In such

4.

5.

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cases, the partners shall submit a consolidated certified list of its customs representatives,whichshallbeattachedtotheapplicationforrecognition,to besignedbytheManagingPartner 6. PeriodforRenewalofCertificateofRecognitionandRequirements. 6.1 Thecertificateofrecognitionshallberenewedannuallystarting JanuarytoMarchofthefollowingrenewalyear.Inlieuoffilingan application,theGPPshallsubmittotheCASaformalletterunder oath requesting for renewal of the certificate of recognition, and stating therein any change in its structure such as change of location of its head office, telephone numbers, current compositionofitspartnersandthelike,forpurposesofupdating its record on file. Payment of the nonrefundable amount for processing and recognition fees prescribed in Sec. 2.1 of this Partshallfirstbemadebeforeanyletterrequestforrenewalshall beacceptedbytheCAS. 6.2 The following documents shall be required for renewal of a certificate of recognition, which have to be submitted before issuanceofthecertificate,towit 6.2.1 PrivilegeTaxReceipt(foryearfollowing)IncomeTax Return(forpreviousyear)Mayor'sBusinessPermit 6.2.4 SSSClearanceCertificate 6.2.5 Updated certified list of bona fide customs representative supported by the latest copy of it's accomplishedSSSFormR1Ashowingdateoffiling withtheSSS. 6.2.6. A fidelity bond which may be a 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 recommendationsbytheCAS. 6.2.7 Certified list of its regular client importersand exporterssignedbytheManagingPartner 6.2.8 Listofitsbranchoffices(ifany) 6.2.9 Financial Statement of the previous year duly certifiedbyCertifiedPublicAccountant 6.2.10 SuchotherdocumentswhichtheCommissionermay requirefromtimetotime.

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6.2.11

6.2.12

If no certificate of recognition is issued within the period for renewal and pending its issuance, partnersignatories of the GPP firm can continue their practice of the profession without interruption untilthelastworkingdayofMarchthefollowingyear. If requested, they shall present the official receipt evidencing payment of the processing and recognition fees and their individual payment of the processingandaccreditationfees. Late letterrequests for renewal of certificate of recognition may be filed and accepted only upon payment of a nonrefundable amount of Php3, 000, 00,asdelinquencyfee.

7.

ProhibitiononPartnerSignatoriesofGPPs. No partner shall "moonlight" or surreptitiously offer andlor use his professionalservicessolelyinhisownaccountandforhispersonalgainand benefitwhilestillamemberoftheGPPfirmneithershallheallowhimselfto be a partner of another GPP, directly or indirectly, to avoid conflict of interests. Resignation,Retirement,SeparationorDeathofaPartner. 8.1 The resignation, retirement, separation or death of one of the partnersofarecognizedGPPshallnotresultinthecancellation of the certificate of recognition granted by the BOC but only the cancellation of the certificate of accreditation of the partner concemed.Inanysuchevent,theManagingPartneroftheGPP firm shall notify the CAS within ten (10) days after effectivity of the resignation, retirement or separation date of the partner's demise. Any customs broker subsequently admitted as a regular partner intoanexistingrecognizedGPPshallbeacknowledgedassuch upon proper notification to the CAS, which notice shall be accompaniedwithaphotocopyofitsamendedArticleofGeneral PartnershipdulyfiledwiththeSEC.

8.

8.2

9.

ObligationsofPartnersandDissolutionoftheGPP. TheobligationsofGPPpartnersamongthemselvesandwiththirdpartiesas wellasthedissolutionofthepartnershipshallbegovernedbytheprovisions ofChapters2and3,TitleIXofBook11ofRA386aforementioned.Incase ofdissolution,theManagingPartnershallofficiallynotifytheCASinwriting of the date the winding up of its customs business will be completed for purposes of record. For the information of their clients and the transacting public,the

FromtheLibraryofAtty.A.O.Uvero

Commissionershall issueacircularstatingwhentheexistenceoftheGPP hasbeenterminated. PARTXFINALPROVISIONS 1 Supersedingclause. This Order supersedes CAO 32006 and CMO 62006 and all other Customs issuances which are in conflict with this Order or any of its provisionsorinanymannerinconflicttherewithareherebydeemedrevoked orsuperseded. Separabilityclause. If any provision of this Order or any part thereof be held invalid or unconstitutional, the remaining provisions shall remain in full force and effect. Effectivity. ThisrevisedCustomsAdministrativeOrdershalltakeeffectimmediately.

2.

3.

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