QuestionsQuestions (BOC CUSTOMS ADMINISTRATIVE ORDER NO. 3-93)
Any person, partnership, or corporation duly licensed by the Bureau of Customs to conduct general customs brokerage business on behalf of others in connection with importation/exportation and other customs matters requiring such services.
It is valid only for one (1) year from the date of issuance.
Renewal requires written application; among others, submission of a professional license (PRC), sworn statement of assets/liabilities (certified), list of authorized employees with particulars, continuing fidelity/surety bond (not less than P30,000), privileged tax receipt submission by January 31, and later Rule 4 also requires clearances (no pending financial obligation/liability), updated bond with premium payment, employee list confirmation, latest net worth statement, copy of privileged tax receipt, mayor’s permit (Rule 4 H depends on the context), and certified list of clients.
Natural person broker: not less than P30,000 (Rule 2(A)(4)). Customs brokerage firm: not less than P50,000 (Rule 2(B)(5)).
At least two (2) officers must be licensed customs brokers and must be stockholders (corporation) or general partners (partnership). One is designated as “Principal” and the other as “Alternate,” and the alternate acts as signing broker in the absence of the principal.
No. The CAO provides that in no case shall an individual broker be allowed to represent more than one (1) licensed customs brokerage firm.
Failure to submit or comply is a valid ground for non-issuance and/or automatic cancellation or revocation of the license.
Not later than December 31 of each calendar year.
They must be submitted not later than January 31 of the year covering the renewal period; failure causes automatic cancellation or revocation of the license.
Clearance from Law and Collection Divisions that there are no pending financial obligations/liabilities; fidelity/surety bond with certificate of premium payment; amendments (if any) to charter/by-laws/partnership articles; confirmation under oath of list of employees; latest statement of net worth; certified copy of current year’s privileged tax receipt; and mayor’s permit (for corporation & partnership), plus certified list of clients.
The Collector, upon showing of a prima facie case of violations, shall immediately place the license under preventive suspension for 90 days pending formal hearing; if not finally terminated within 90 days (and delay is not due to broker’s fault/negligence/petition), the license is automatically reinstated.
Examples include: deliberate refusal without justifiable reason to perform duties prejudicial to government/clients; misappropriation of client funds for payment of duties/taxes/fees; willful misdeclaration or undervaluation resulting in loss of revenue or evasion of control regulations; knowingly filing entry for non-existing/fictitious entity or using spurious/falsified/tampered documents; lack of control/supervision over authorized employees; willful and deliberate violations of the TCCP/related rules especially uniform rate orders; violations of the Code of Ethics; continued neglect of duty/incompetency; and failure to report fraud upon customs revenue or knowingly assist/abet importation/exportation involving fraud.
No. Rule 6 states no renewal of license shall be issued to any broker/firm whose license has been suspended or revoked by the Collector, or whose certificate has been suspended or revoked by PRC.
A decision imposing penalty exceeding one (1) month suspension may be appealed to the Commissioner of Customs within 15 days from receipt, and thereafter to the Secretary of Finance within the same period from receipt of the Commissioner’s decision. The suspension or revocation shall not be stayed during pendency of appeal unless the appellate authority directs otherwise.
They must be Filipino citizens, of good moral character, have completed an accredited training/seminar with certificate of attendance at least yearly availability, and present NBI clearances at the beginning of employment until a new clearance is necessary.
The broker/firm must immediately notify the Bureau of Customs through the office of the Collector where licensed, in writing, stating the employee’s name, effective date of termination/termination of authority, and the number of any Customs Pass issued.
It must specify, among others: consignee; bill of lading/airway bill number; date of arrival; voyage/flight number; registry number; and limit the authority to only the shipment described. If issued by a corporation/importer/entity to a non-broker, it must be accompanied by a sworn certificate of employment showing the attorney-in-fact is a full-time employee/official and receives fixed compensation; the law division evaluates sufficiency and maintains a logbook of SPAs.
It takes effect upon approval by the Secretary of Finance and after 30 days publication in a newspaper of general circulation in the Philippines.