Question & AnswerQ&A (BOC CUSTOMS MEMORANDUM ORDER NO. 18-2010)
The main purpose is to implement the Bulk and Break Bulk Cargo Clearance Enhancement Program (BBBCCEP) to generate more revenues for the government, curb technical smuggling through misdeclaration, misclassification, and undervaluation, and facilitate the movement and release of imported bulk and break-bulk cargo.
Bulk Cargo refers to cargoes in a mass of one commodity not packaged, bundled, bottled, or otherwise packed.
An ACSC is a surveying company duly accredited by the Committee for Accreditation of Cargo Surveying Companies (CACSC) tasked with conducting cargo surveys, issuing Load Port Survey (LPS) and Discharge Port Survey (DPS) reports for bulk and break-bulk cargoes.
The OSS is a composite unit headed by the Deputy Commissioner for Assessment and Operations Group and includes representatives from BOC offices, the Department of Trade and Industry, the private sector, and the Office of the Presidential Adviser on Revenue Enhancement. It confirms and approves requests for DPS made by importers for shipments not covered by LPS reports.
The LPS Report must detail the description of goods, shipper and receiver details, date of inspection, quantity, quality, grade, price or value, classification, port of loading, vessel name, hatch number, departure date/time, Bill of Lading details, surveyor's seal details, ports of call, and additional testing results necessary for assessment.
The LPS Report and SR must be received by the Bureau of Customs at least twelve (12) hours before the arrival of the cargo in the Philippines, submitted in a secure electronic format.
Shipments not covered by the required LPS report are considered high risk and will undergo extensive physical examination, continuous under-guarding until a Discharge Port Survey (DPS) is conducted, and payment of duties, taxes, and administrative fines may be imposed.
The importer can request a DPS if the shipment was not covered by LPS, or if the importer disagrees with the findings of the LPS, and must file the request at least three (3) days prior to the cargo’s estimated arrival date.
Deliberate circumvention is characterized by misdeclaration, undervaluation, or misclassification evidencing fraud, or when the failure to submit an LPS was intentional, or if the firm is a recidivist. Such shipments are subjected to strict customs control, fines, and full payment of correct duties and taxes.
The services of ACSCs entail no cost or charge to the Philippine government. For additional services, ACSCs may charge the exporter a fee not exceeding 0.5% of the FOB value of the cargo, unless otherwise agreed by importer and exporter.