QuestionsQuestions (BOC CUSTOMS MEMORANDUM ORDER NO. 45-2010)
The objectives are to implement the E2M Customs System for Delivered Duty Paid (DDP) and Bill-to-shipper (BTS) shipments; provide detailed customs clearance instructions to concerned parties (air express operators, declarants, brokers, importers, forwarders, AABs, VASPs, and BOC personnel) for Phase 3 Import Assessment under E2M; and align E2M with worldwide accepted practice on DDP/BTS commercial arrangements between shipper and consignee.
It applies to DDP/BTS air express shipments handled by the four PCAEO members (DHL, FedEx, UPS, and TNT) and their authorized representatives in the Philippines, designated as EOA. It also extends to other operators that will be accredited by BOC to use the special procedures.
DDP is described as a commercial arrangement where the seller pays all transportation costs, bears all risks until the goods are delivered, and pays duty (customs duty, taxes, and other charges).
The CMO states that the EO shall be recognized as the Financial Party in DDP/BTS shipments. As such, the EO is named in the declaration as the Financial Party.
The EO or its authorized representative extends the special arrangement to named consignees/importers by tagging the consignee/importer’s CPRS profile as “aDDP-enabled.”
The expiration/cancellation/suspension automatically invalidates the importer’s DDP tag. However, successful renewal reinstates the CPRS DDP tag.
No. Renewal automatically enables the special procedure without the need for re-assignment.
It may be invalidated at any time by the EO/authorized representative when the shipper has changed or stopped the DDP terms, or by Customs authorities based on adverse findings from audits and investigations.
No. After tagging as DDP-enabled, the special arrangement becomes applicable to any EO, not just the endorsing party.
It covers both Formal and Informal Entries (Phase 3) in NAIA and other airports nationwide. It also clarifies that subsequent CMOs for informal entry should not diminish rights/privileges accorded through this Order.
They must apply for accreditation with the Deputy Commissioner for Assessment and Operations and demonstrate actual capabilities/practice, including sending inward foreign manifest to BOC at least 12 hours and 2 hours prior to vessel and aircraft arrival, respectively, and profiling customers for financial credibility/compliance so only low-risk shipments are declared.
A designated user in AOCG tags every consignee/importer CPRS record in the certified list submitted by the EO using the Special Arrangement tab. AOCG (or EO upon instruction) may disable the DDP special arrangement, ceasing it for all EOs.
The EO registers in CPRS with the Nature of Business of Air Express Operator. As an importer, it can enroll debit accounts with AABs to obtain Bank Reference Numbers (BRNs). The EO advises the bank the debit account is used under the DDP arrangement so the EO is named in the declaration as Financial Party.
The declarant must indicate the model of declaration in Box 1 of the SAD: “4FDa” for formal entry and “4IDa” for informal entry. It must also indicate the EO TIN in Box 9 labeled “Financial Party,” and indicate the EO Bank Reference Number in Box 28 (Bank Ref. No.).
The payment instruction message to the PCHC-BAP payment gateway contains the BRN of the EO. The consignee in the payment instruction message is the EO.
It provides that all customs memorandum orders inconsistent with the provisions of CMO 45-2010 are deemed modified and/or amended accordingly.
It shall take effect immediately (adopted 15 October 2010 by Commissioner Angelito A. Alvarez).