QuestionsQuestions (EXECUTIVE ORDER NO. 46)
EO No. 46 revives the post clearance audit function by transferring it back from the DOF-FIU to the BOC, specifically reviving the BOC Post Entry Audit Group (PEAG) as the Post Clearance Audit Group (PCAG), to ensure audit examination, inspection, verification, and investigation of customs declarations within the timeframe mandated by law.
Under EO No. 155, the post clearance audit functions were transferred from BOC-PEAG to the Fiscal Intelligence Unit (FIU) of the DOF. EO No. 46 reverses this by transferring the post clearance audit function from DOF-FIU back to the BOC.
It cites Section 17, Article VII of the 1987 Constitution, which provides the President’s power of control over all executive departments, bureaus, and offices.
Republic Act No. 1083—otherwise known as the Customs Modernization and Tariff Act (CMTA)—is cited as mandating the BOC to conduct audit examination, inspection, verification, and investigation of transaction records of importers and brokers.
The revived group is renamed as the Post Clearance Audit Group (PCAG), and it is placed under the supervision of the Commissioner of Customs.
The PCAG is headed by an Assistant Commissioner (Salary Grade 28) of the BOC, appointed by the President upon recommendation of the Commissioner of Customs through the Secretary of Finance.
They are (a) the Trade Information and Risk Analysis Office (TIRAO) and (b) the Compliance Assessment Office (CAO).
TIRAO and CAO are each headed by a Director II (Salary Grade 26).
PCAG must conduct the audit examination, inspection, verification, and investigation within three (3) years from the date of final payment of duties and taxes or customs clearance.
PCAG covers goods declarations including statements, declarations, documents, and electronically generated or machine-readable data related to the goods declaration.
PCAG ascertains the correctness of the goods declaration and determines the liability of the importer for duties, taxes, and other charges, including any fine or penalty.
(1) Review available trade data to determine compliance markers and set benchmarks for an audit program; (2) develop a computer-aided risk-based management system with objective, quantifiable parameters (approved by the Secretary of Finance on recommendation of the Commissioner) for profiling and identifying priority audit candidates; (3) recommend priority audit candidates for Commissioner approval; (4) develop policies, guidelines, manuals, and SOPs relating to the audit process; and (5) perform other necessary/incidental functions.
(1) Prepare the audit work plan, scope, and approach for approved priority audit candidates; (2) conduct audit examination/inspection/verification/investigation of records subject to applicable laws and approved SOPs; (3) prepare and submit required reports on findings and recommendations to the Commissioner for approval; (4) establish and maintain a customs compliance program; and (5) perform other necessary/incidental functions.
EO No. 46 institutes and renames DOF-FIU as the Financial Analytics and Intelligence (FAI) Unit. Its functions include acting as DOF’s data analytic unit for revenue management, requiring DOF-attached agencies to submit trade/industry data (subject to existing laws), reviewing matters fiscally adverse to government for Secretary approval, providing recommendations to the Secretary based on analysis, and performing other incidental functions.
The DOF-FAI (the successor to DOF-FIU) shall, as may be practicable, transmit to the BOC-PCAG all files and documents of any pending post clearance audits following the effectivity of the Order.
Funding for BOC-PCAG shall come from the applicable BOC budget and later included in BOC’s budget proposal. For the DOF-FIU appropriation, its organization and staffing approved by DBM are retained and effectively used for DOF-FAI.
Separability: if any provision is declared invalid or unconstitutional, the remaining provisions stay valid. Repeal: all inconsistent issuances, orders, rules, or regulations (or parts thereof) are repealed, amended, or modified accordingly.
It takes effect fifteen (15) days following its publication in a newspaper of general circulation.