ETHICS AND
STANDARD OF
CUSTOMS BROKERAGE
CM4108
MODULE 2: HISTORY OF
CUSTOMS BROKERS
Origin and History of Customs Broker Profession
Spanish Regime
Transacting Business with the Bureau of Customs goes back to the Spanish
regime, the Filipinos having trading with neighboring countries even before the
discovery of the island by Magellan. The first Customs House was established
during the regime of Gov. Quido de Lavezares in the 16th century. Already at that
time, duties being collected were called “almojarifasgo”. The transactions were carried
on directly by importers and exporters through their authorized representative now
properly know as “ personeros” were under their employment.
American Regime
The Philippine economic-socio –political growth and upon colonization by the
Americans, the first Tariff Act was enactment of the later Philippine Tariff Act of 1909
which was substantially patterned after U.S Tariff. The government take interest in
strictly supervising the activities and operation of “personeros” . Unscrupulous
importers took advantage of their ability and experience of the personeros by inducing
them to work with the BOC. At this time, American government found out a grave loss to
personeros, they changed the releasing procedure of imported goods and implemented
First Government Examination
The government then started screening these people by giving
written examination and making them responsible for their acts and deeds as
Customs Broker/ personeros in order that they acts that they may represent
several importers. Periodic examinations were conducted by the Collector of
Customs with the aid of division heads and subject matters have been divided
into several topics, such as, classification, appraisal, administrative laws,
procedures and operations and other allied matters.
Qualifications then were stressed on experience and basic knowledge
as the age requirement was only 21 years and educational need to be a high
school and of course, with the corresponding character endorsement.
Under Philippine Independence
The declaration of the Philippine Independence by the American did
not bring much radical change in the operations and qualifications of Customs
Brokers although, in the liberation and rehabilitation stage of the country, the
Customs Brokers played a heroic role in working side by side with the BOC in
expediting the delivery of American aids and supplies for the speedy of our
economy.
First Association of Customs Broker
The handful of Customs Brokers then banded together and formed an association
called the Association of Customs Broker of the Philippines, Inc. and adopted the
set of Code of Ethics on April 15, 1938, for them to observe as the increase of foreign
trade has caused a lot of misunderstanding among them and unfair practices were
being employed by non-licensed persons while unscrupulous experienced customs
oriented importers started to prejudice their ranks. Through their foresight and
ambition, these pioneers were able and B in creating a Board of Examiners for Customs
Brokers removing the power of qualifying persons to become Customs Brokers from
the BOC, the prerogative of licensing remained with it upon enactment of RA 1937,
otherwise known as the Tariff and Customs Code of the Philippines.
First Board Examination for Customs Brokers
The first written examination conducted by the Board of Examiners with the
help of the Civil Service Commission was given in 1958/1959 with qualification being
rigid on the age and educational attainment. The passing of the first examinees marked
the birth of a unique profession in that for the first time a certificate was issued
although opening of the book (The Code) allowed in the subject of tariff laws was
maintained, it has drawn a lot of other professionals to the challenge and even lawyers,
accountants, engineers and others took the test to satisfy their curiosity on the new
field of technology which has an average of 90% mortality at the end of each
examination, which is given every two years.
Creation of Bachelors Degree in Customs Administration
Time demands that with our growing economy, customs and
tariff administration must improve hand in hand with it and the need for
the qualified employees or officials to administers the Customs Laws. A
new college equivalent to a a Bachelors degree was authorized by the
Department of Education to be taught and a high school graduate can
pursue the course to earn a Bachelor of Science in Customs
Administration thereby making him eligible after passing the board
examination to practice customs brokerage in any port of entry or offices
such as the BOC, Tariff Commission, Department of Trade and other
offices where3 his knowledge are useful and utilized.
Under Martial Law
Amended RA 1937 to PD 34 and changes the qualification to
take the board examination.
Under the old law (P.D 34):
1. At least 21 yrs. Old
2. A citizen of the Philippines
3. With good moral characters
4. Has completed 4 yrs collegiate course, where he has creditably
taken at least 18 academic may Tariff and Customs and/or Taxation.
And the applicant may be allowed to take the examination provided
that every deficiency of 3 academic units in Tariff and Customs Laws
and/or taxation shall be substituted by at least 3 months actual
experience in Customs Brokerage and/ or customs and tariff matters,
provided, that said experiences shall be duly certified by the employer
of the applicant.
