QuestionsQuestions (EXECUTIVE ORDER NO. 160)
EO 160 cites Republic Act No. 9135 (particularly Sections 3515 and related provisions on audit examination/inspection/verification/investigation) and Presidential Decree No. 1772 (amending PD 1416) which expressly grants the President continuing authority to reorganize the National Government, including the power to create and classify offices and functions.
EO 160 creates a new office in the Bureau of Customs called the Post Entry Audit Group (PEAG), placed under the direct supervision and control of the Commissioner of Customs.
The PEAG is headed by an Assistant Commissioner of Customs (Director IV), SG-28. The head is appointed by the President upon recommendation of the Commissioner of Customs through the Secretary of Finance.
EO 160 establishes (1) the Trade Information and Risk Analysis Office (TIRAO) headed by a Director II, and (2) the Compliance Assessment Office (CAO) headed by a Director.
The EO states that with a move to a paperless environment, fully automated processing, and implementation of the WTO Valuation System, controls at the border should be minimized, shifting emphasis to information analysis on a post-importation basis through post entry audit.
It is intended to increase trade facilitation, encourage voluntary disclosures, reduce incidence of fraud, and protect government revenues.
TIRAO sets frameworks/benchmarks for compliance measurement; coordinates with MISTG to develop a computer-aided risk management system using data warehousing and statistical tools; implements the system to establish audit selection parameters based on objective/quantifiable data; and recommends audit targets to the Commissioner.
TIRAO sets policies, guidelines, manuals, and SOPs relating to the audit and continuously assesses how audit performance can be improved through better and more fine-tuned policies and guidelines.
CAO formulates the audit work plan for approved audit targets; conducts audit examination/inspection/verification/investigation in accordance with approved policies/guidelines/manuals/SOPs; prepares and submits audit reports; and develops and implements a customs compliance program.
TIRAO develops risk management, sets audit selection parameters, and establishes/recommends audit targets to the Commissioner, while CAO formulates the work plan for approved audit targets and performs the actual audit examination and reporting based on established policies/SOPs.
Initial operating expenses of PEAG shall be sourced from available Bureau funds; subsequent appropriations must be incorporated into the budget proposals subject to existing accounting and auditing laws and procedures.
With approval of the Secretary of Finance, the Commissioner of Customs is authorized to determine the number of personnel consistent with PEAG requirements and economy/efficiency/effectiveness principles, and to organize units under the groups/offices allowed in the EO subject to DBM evaluation.
EO 160 takes effect fifteen (15) days after completion of its publication in the Official Gazette or a newspaper of general circulation.
EO 160 mentions implementation of the WTO Valuation System, which requires the minimum of controls at the point of importation, thereby supporting a shift toward post-importation information analysis.
RA 9135 is cited as having specifically mandated the Bureau of Customs to conduct audit examination, inspection, verification and/or investigation of transaction records of importers and brokers; EO 160 operationalizes this mandate through the creation of the PEAG and its risk-based post entry audit system.
It supports the President’s authority to reorganize government agencies by creating/classifying functions and offices, consolidating bureaus, abolishing offices, transferring functions, and standardizing salaries/materials.