QuestionsQuestions (EXECUTIVE ORDER NO. 75)
It implements Sections 1227 and 1228, Chapter 4, Title XII of Republic Act No. 10863 (CMTA), establishing an Authorized Economic Operator (AEO) Program with infrastructure, processes, and benefits to secure and facilitate international trade, consistent with the WCO SAFE Framework and related international standards.
Cargo Security System; Trade Clearance System; and Mutual Recognition Arrangement (MRA).
Importers; Exporters; Customs Bonded Warehouses (CBW) and Customs Facility Warehouses (CFW); Customs Brokers; NVOCC/Freight Forwarders/International Freight Forwarders with offices in the Philippines; Shipping Lines/Airlines and their agents; Authorized Agent Banks (AABs); Local Transport Operators and their facilities/equipment; and certain foreign supply chain entities accredited as AEO by another country under an MRA.
If an applicant has multiple services, one application form may be submitted for several categories, but the AEO certificate of accreditation is granted per category.
Examples include business ownership/structure, corporate profile, end-to-end import/export and local distribution system, entities in the foreign supply chain/local distribution, list/nature/description/value/volume of goods (including preferential rates), internal customs compliance controls, customs compliance history, and business process continuity mechanisms (plus other factors determined by the Bureau).
Cargo handling and safekeeping; record keeping and IT system; supply/trading partners; physical premises and access control; personnel complement; security training/threat awareness/outreach; and other factors determined by the Bureau.
At least one (1) year in operation prior to the date of application.
Returning Residents and Returning OFWs must apply with the DOF Revenue Office for issuance of a TEI. The TEI is a core documentary requirement for availing tax and/or duty exemptions.
At least: the PHED Form (duly filled out); TEI; BL or AWB endorsed by the carrier/shipping agent; and possibly CI if any, permits/licenses if necessary, Permit to Deliver Imported Goods (PDIG) for sea shipments, and other documents required by the Bureau.
They may be allowed conditional release upon posting a cash bond equivalent to 100% of the assessed duties and taxes due.
No. Importation of personally-owned motor vehicles is covered by separate BL/AWB and must be cleared under formal entry; it is not entitled to the exemption privilege under Section 800(f).
The COO III makes return of findings, assesses duties/taxes and other charges, signs the goods declaration and forwards to COO V. COO V reviews IIDE, tariff classification/appraisal/computation for final assessment, signs, prepares the Order of Payment, and forwards for approval.
COO III conducts physical examination with relevant representatives (Enforcement/Intelligence, XIP, brokers/consignee representatives). If no discrepancy, assess and process like the 'regular' case; if discrepancy, prepare discrepancy report and recommend additional duties/taxes or seizure.
Submit PHED and CBDF plus required passport/identity and other documents; post cash bond equivalent to 100% of assessed duties and taxes; obtain approval for release; and submit TEI within 45 days from arrival but not to exceed 60 days from release.
Failure to submit TEI within 45 days from arrival but not to exceed 60 days from release causes forfeiture of the cash bond posted to answer for duties and taxes due.
Goods are temporarily stored pending TEI; if TEI is not submitted within 30 calendar days from arrival, the goods are deemed abandoned.
Level 1 members receive limited benefits such as exemption from renewal of accreditation; possible permission to self-assess using trade documents (if managing trade documents satisfactorily); allowing certain goods declaration practices via database entry supported later by supplementary declaration; and a dedicated help desk. The Bureau must complete Level 1 certification within 90 calendar days from receipt of application.
The Commissioner may deny benefits (in whole or in part) if security measures and supply chain security practices fail to meet AEO requirements, subject to procedures protecting AEO members. If the member knowingly provides false or misleading information during validation, the Commissioner shall suspend or expel the member for an appropriate period.