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BOC Implementation of The Enhanced Customs Transit System (Global Positioning System)

BOC Implementation of The Enhanced Customs Transit System (Global Positioning System). Presentation on the. February 22 , 2013 PEZA, LAGUNA TECHNOPARK, INC. Enhanced Customs Transit System or GPS as a Tool in International Trade Security.

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BOC Implementation of The Enhanced Customs Transit System (Global Positioning System)

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  1. BOC Implementation ofThe Enhanced Customs Transit System(Global Positioning System) • Presentationon the February 22, 2013 PEZA, LAGUNA TECHNOPARK, INC.

  2. Enhanced Customs Transit System or GPS as a Tool in International Trade Security

  3. Enhanced Customs Transit System or GPS as a Tool in International Trade Security To increase end-to-end international chain supply security by introducing a balanced approach to safeguard shipments entering or leaving the country from manipulation or interference by criminals, illegal traders, and terrorists.

  4. Enhanced Customs Transit System or GPS as a Tool in International Trade Security To develop an effective system of detection and presentation of fraud and criminality through cooperation at policy and operational levels between different law enforcement agencies (both local and international).

  5. Enhanced Customs Transit System or GPS as a Tool in International Trade Security To pursue close partnership between Customs and the compliant trading community through transparent, efficient, effective and protected cargo clearance procedures.

  6. Enhanced Customs Transit System or GPS as a Tool in International Trade Security To be compliant to the international agreements on trade facilitation and security. a. World Trade Organization Agreement b. World Customs Organization - International Agreement on the Simplification and Harmonization of Customs Procedures otherwise known as the Revised Kyoto Convention - SAFE Framework of Standard - Customs Convention on Containers (Container Security Devices)

  7. Enhanced Customs Transit System or GPS as a Tool in International Trade Security • A powerful tool to: • Enhance cargo security (prevents attempts of hijacking and diversion of cargoes. • Plug revenue leakage. • Ensure that import entries have been eventually filed in transit shipments for consumption in the Philippines through the centralized database that ECTS will generate. • Ensure proper accounting for all transit cargo and would also allow the monitoring of action taken on the cargo after it reaches the port of destination.

  8. ECTS Contribution to Transit System Efficiency • By facilitating the customs processing of transit cargo via the use of affordable and reliable technology and other best practices FEATURES (1) • Automatically Generates Transit Delivery Permit based on the electronically filed and approved Transit Permit Form. Eliminate manual preparation and printing of Boatnote

  9. ECTS Contribution to Transit System Efficiency FEATURES (2) • Secures Containers Using Seal (equip with GPS) • No need for PEZA/Customs guard to escort container from Customs Port of Discharge to PEZA zone and vice versa (ECTS ensures the availability of sealing equipment 24/7/365) • ECTS puts in place the infrastructure and controls that would enable Customs to do away with the posting of the required security bonds.

  10. Historical Timeline of ECTS Implementation

  11. Historical Timeline of ECTS Implementation 2005 – Philippine accession to the WCO Framework of Standards on the Security and Facilitation of Trade 2006 – Start of the accession process on the International Agreement on the Simplification of Customs Procedures otherwise known as the Revised Kyoto Convention

  12. Historical Timeline of ECTS Implementation 2008 – European Commission and the Republic of the Philippines entered into a 4-year cooperation initiative dubbed as “Trade-related Technical Assistance or TRTA Project”. Under Component 3 of the TRTA is the “Enhanced Customs Transit System in all ports of the Philippines by the end of 2010”.

  13. Historical Timeline of ECTS Implementation 2009 – Consultation Workshop held at the Hyatt Hotel between DOF, DTI and Leaders of the Industry on the implementing guidelines of the ECTS Project 2010 – Issuance of Regulations and the implementation of ECTS through - Customs Administrative Order 4-2010 signed by the Secretary of Finance - Customs Memorandum Order 24-2010 signed by the Commissioner of Customs

  14. Historical Timeline of ECTS Implementation 2010 – Presentation of the Joint Memorandum Orders between BOC and the free port authorities of Subic, Clark, Bataan and PEZA – The Philippine government became a contracting party to the WCO International Convention on the Simplification and Harmonization on Customs Procedures (RKC)

  15. Historical Timeline of ECTS Implementation 2010 – Issuance of CMO 48-2010 which establishes the guidelines on the accreditation of private barrier seal providers 2011 – Start of accreditation process of barrier seal providers

  16. Historical Timeline of ECTS Implementation 2011 – 3 Companies were issued ToR (Jan-Apr) - SGS International - Cotecna Inspection Philippines, Inc. - Technology Information Management Corporation April 2011 – Visit of 12 EU Ambassadors in the BOC to be oriented on the EU-TRTA Projects

  17. Historical Timeline of ECTS Implementation April 2011 – Consultation with the Clark Development Corporation (CDC), Subic Bay Metropolitan Authority (SBMA), Authority of the Free Port of Bataan (AFAB), Subic-Clark Alliance for Development Council June 2011 – Orientation Seminar with the Private Sector led by Port Users Confederation

  18. Historical Timeline of ECTS Implementation July 2011 – The PUC recommended the fees which became the basis of the proposed CAO on fees submitted to DOF: - Delivery to warehouse within one (1) kilometer radius - P 750.00 or lower - Delivery to Metro Manila and nearby towns (Ex. in Cavite and in Bulacan) P 1,500.00 - Delivery to Outports (Subic, Clark, etc.) P 2,250.00

  19. Historical Timeline of ECTS Implementation July 2011 – The PUC further proposed remedial steps to lessen their cost: - All containers tagged for GPS must already be provided by a duly processed and accomplished Boat-note. (This will eradicate the petty graft and delay.) - The mandated carrier’s Bond should now be scrapped, in lieu of the use of GPS. - The current use of the telegram (with cost of Php 90.00) shall likewise be scrapped, in lieu of the use of GPS. - The current under-guarding fee (per CMO 2- 2004) shall likewise be discontinued, in lieu of the use of GPS.

  20. Historical Timeline of ECTS Implementation COMPARATIVE MATRIX ON THE CURRENT and PROPOSED COST OF TRANSSHIPMENT

  21. Historical Timeline of ECTS Implementation Aug 2011 – Signing of MOA with the PNP – Commissioner Angelito Alvarez discovered 2000 Containers in Transit missing – Congressional and Senate hearings on the issue Sept 2011 – Endorsement of SLA and proposed CAO on Fees submitted to DOF – Change of leadership in Customs 2012 – SLA re-endorsed to DOF by Commissioner RuffyBiazon

  22. The Next Step: Pilot Testing of Accredited Service Providers

  23. Closing

  24. Thank you.

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