Question & AnswerQ&A (BUREAU OF CUSTOMS)
The CAO No. 5-2017 covers the establishment of the AEO Program in the Philippines by providing the necessary infrastructure, facilities, mechanisms, processes, and benefits for full implementation.
AEOs include importers, exporters, customs brokers, forwarders, freight forwarders, transport providers, and other entities duly accredited by the Bureau of Customs based on the WCO SAFE Framework and other related guidelines to facilitate secure international trade.
The three components are: (a) Cargo Security System ensuring the integrity and security of imported goods, (b) Trade Clearance System allowing compliant stakeholders to clear goods with minimal customs intervention, and (c) Mutual Recognition Arrangement (MRA) recognizing AEO programs of other countries.
Applicants must meet standards of reliability and trustworthiness based on risk assessment which includes business profile, compliance history, security infrastructure, having been in operation at least one year, necessary permits, and no criminal liability on customs laws by key officers.
Level 1 members get exemption from renewal of accreditation, may self-assess duty and tax liabilities if compliant, can lodge goods declaration entries to the BOC system, have a dedicated help desk, and other benefits consistent with the RKC and SAFE Framework standards.
Level 2 benefits include dedicated processing and selectivity lanes with minimal inspections, advance clearance process before goods arrival, periodic lodgement for regular shipments, one-time exemption certificates for certain goods, and expedited export clearance to MRA countries.
Level 1 certification process must be completed within 90 calendar days from receipt. Level 2 validation must be completed within one year after Level 1 certification. Level 3 criteria and benefits will be designated within two years after the CAO's effectivity.
Grounds include intentional violations resulting in customs revenue loss, repeated non-compliance, habitual delinquency, security risks found during evaluations, or provision of false or misleading information.
Members must provide full disclosure of requested information, designate responsible personnel for compliance, update changes in their status or information, submit annual statements on changes, disclose any deviations or errors voluntarily, and maintain complete and accessible record systems.
MRA is a formal agreement between customs administrations to mutually recognize and accept each other's AEO programs, facilitating trade by providing benefits and practical arrangements to recognized AEO members across participating countries.
Stakeholders eligible include importers, exporters, customs bonded warehouses, customs brokers, freight forwarders, shipping lines, airlines and their agents, authorized agent banks, local transport operators, and foreign entities accredited by another country with an MRA with the Philippines.
Information bearing on trade secrets or business advantage provided by members is deemed confidential and will not be disclosed without written consent, except in judicial proceedings.