Friday, November 20, 2009

Pre-shipment inspection set for oil, grains, steel


Source: Manila Bulletin, November 19, 2009



At last, something positive to look forward to by December this year. Hopefully this is not just "another" regulation. Read on...

The government is all set to implement a pre-inspection from the country of origin all bulk and break bulk cargo shipments such as oil, grains and steel among others starting Dec. 12 this year as the government is plugging loopholes against smuggling activities to enhance a sagging revenue collection.

This was contained under Administration Order No. 243-A issued by MalacaƱang on September 16, 2009 and after the release of the corresponding Implementing Rules and Regulations.

The Bureau of Customs will brief domestic industries represented by the Federation of Philippine Industries next week on the forthcoming implementation of the new order.

A0 243-A defines bulk cargoes as cargoes in mass of one commodity, no packaged, bundled, bottled, or otherwise packed; cargoes (dry or liquid) loaded (shoveled, scooped, forked, mechanically conveyed or pumped) in volume directly into a vessel’s hold or cargo that is unbound as loaded, without count in a loose unpackaged form.

Break-bulk cargo refers to non-containerized cargo stored in boxes, bales, pallets, or other individual units to be loaded onto or discharged from vessels; cargoes loaded individually and described in terms of quantity and weight such as steel coils, logs, sack of rice, and not in shipping containers nor in bulk as with oil or grain.

Under AO 243-A, all bulk and break-bulk (non-containerized) cargo imports have to undergo pre-shipment inspection by international bulk and break bulk cargo surveying companies and surveyors accredited by the newly-organized Committee for Accreditation of Cargo Surveying Companies (CACSC) headed by Presidential Adviser on Revenue Enhancement Narciso Santiago Jr.
The committee is composed of representatives of the BoC, Department of Finance (DoF), Department of Trade and Industry (DTI) and duly recognized industry associations.

The BoC is represented by Deputy Commissioner Reynaldo Nicolas and his Chief of Staff, Atty. Caesar Corpus; DoF is represented by Atty. Pedro Vicente C. Mendoza and Marceliano Bernal Jr. The DTI representative is not yet known.

The private sector is by FPI Executive Vice President, Edison Co Seteng and Angelito E. Colona of the Philippine Chamber of Commerce and Industry. Dr. Angel Lazaro serves as a consultant of the CACSC.

AO 243-A was issued by President Arroyo on September 16, 2009 amending AO 243 issued by MalacaƱang in October 2008 entitled “Creating a system for the bulk and break bulk cargo clearance enhancement program of the Bureau of Customs.” Its implementing rules were published last October 28, 2009 and takes into effect on November 12, 2009.

The amended AO was meant to comply with the World Customs Organization International Convention on the Simplification and Harmonization of Customs Procedures, otherwise known as the Revised Kyoto Convention.

AO 243-A was also issued to streamline the procedure for importations, to the country and at the same time, protect the members of the government by ensuring the correct assessment of taxes and duties on bulk and break-bulk cargo imports.

Based on the AO, the CACSC, which is under direct supervision and control of the Office of the President, has an overarching task as it has the power to grant, approve, defer, deny, suspend, or revoke the accreditation of cargo surveying companies and surveyors.

The AO also said that accredited surveying firms must be a reputable company with an international office network in the countries exporting to the Philippines and the ports of origin and engaged in the business of cargo surveying of shipments.

Under the procedure, the accredited surveyor shall issue the Load Port Survey Report after conducting a full survey of quantity and quality of the bulk and break-bulk cargo and should contain the following details: Quantity of the cargo; quality of the cargo; grade of the cargo; price or value of cargo; classification of the cargo; port of loading; name of vessel; estimated time of departure from port of loading; bills of lading; surveyor's seals details; ports of call of carrying vessel, if there is any; and such additional testing results as may be required by the BoC necessary in determining the value, tariff classification, and/or assessment of shipments covered by AO 243-A.

Any importer obtaining the services of an accredited cargo surveying company pursuant to AO 243-A and its IRR shall be allowed to file entries for the imported articles and pay the proper duties, taxes, and other fees therefore prior to arrival in the Philippine port of destination, provided that:

a. The entry contains a full and true statement of all the articles which are the subject of the importation;

b. The invoice and entry contain a just and faithful account of the actual cost of said articles, including and specifying the cost of insurance and freight and other necessary charges, and nothing has been omitted there from or concealed to the detriment of the proper revenue collection by the government;

c. The invoice and all bills of lading relating to the articles are the only ones in existence relating to the importation in question;

d. The entry, invoice, and bill of lading, and the declarations thereon, are in all respects genuine and true, and were made by the person by whom the same purportedly have been made.

As soon as they cargo arrives at the Philippine port of destination, the importer may immediately cause the discharge and withdrawal of the same from Customs premises and/or custody, provided that the declarations in the import entries are confirmed by the Port Load Survey Report, and upon presentation of the proof of payment of duties, taxes, and other fees, as well as compliance with other pre-requisites for a valid importation in accordance with pertinent and existing Customs laws, and regulations


CAPT PAX SANCHEZ
PMMA-GS MMET

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