Question & AnswerQ&A (EXECUTIVE ORDER NO. 46)
The Executive Order aims to revive the post clearance audit function of the Bureau of Customs (BOC) and institutionalize the functions of the Financial Analytics and Intelligence Unit of the Department of Finance (DOF).
The post clearance audit function is transferred back to the Bureau of Customs (BOC) from the Department of Finance - Fiscal Intelligence Unit (DOF-FIU).
The PCAG is the revived group under the BOC responsible for post clearance audit functions. It is headed by an Assistant Commissioner of BOC, appointed by the President upon recommendation by the Commissioner of Customs and Secretary of Finance.
The two operating units are the Trade Information and Risk Analysis Office (TIRAO) and the Compliance Assessment Office (CAO).
TIRAO reviews trade data to develop audit programs, devises computer-aided risk-based management systems for profiling audit candidates, recommends audit priorities, and develops policies and procedures related to audits.
CAO prepares audit work plans, conducts audit examinations and verifications, submits audit reports to the Commissioner of Customs, maintains customs compliance programs, and performs other related tasks.
Republic Act No. 10863, known as the Customs Modernization and Tariff Act (CMTA), mandates BOC to conduct audit examinations, inspections, verifications, and investigations of importers and brokers' transaction records.
The FAI unit serves as the data analytic unit of the DOF for revenue management, reviews fiscally adverse matters, requires agencies to submit trade and industry data, provides policy recommendations, and performs related functions.
Post clearance audits must be conducted within three years from the date of final payment of duties and taxes or customs clearance.
The funding for PCAG is sourced from the applicable budget of the BOC and thereafter included in the annual budget proposal of the BOC.