QuestionsQuestions (BOC CUSTOMS MEMORANDUM ORDER NO. 2-2010)
They include strengthening ECD’s coordination/monitoring/oversight of Rules of Origin (ROO); promoting Philippine exports and revenue through correct application of ROO in FTAs and unilateral schemes (e.g., GSP); establishing centralized internal control and retro-verification to protect the integrity of Certificates of Origin (COs); creating a real-time database of COs issued/utilized; and maintaining a pool of ROO trainers for customs officials and the trading community.
It covers all matters related to coordination and monitoring of activities involving ROO, including pre-evaluation of exporters and products, issuance of COs, post-evaluation of utilized COs covering imported products, internal control mechanisms, records keeping, and retro-verification.
ECD has oversight responsibility over all activities related to issuance and utilization of COs, whether unilateral, bilateral, regional, or multilateral.
Yes. The Chief, ECD may delegate authorized issuance to Export Divisions or equivalent units in Collection Districts where Export Declarations are processed, provided the exported products have a pre-approved evaluation from the Chief, ECD.
ECD, in coordination with Formal Entry Divisions and/or their equivalent units in all Collection Districts, must design a post evaluation system of COs covering imported products to help ensure proper duties and taxes are collected.
A comprehensive database on: (1) issuance of all types of COs and pre-evaluated exporters/products including production/manufacturing processes and product costing; and (2) utilization of all kinds of COs for post evaluation and statistical record purposes.
Retention period for customs copies of COs issued, supporting documents, and the 201 file of pre-evaluated exporters must follow the Operational Certification Procedure (OCP) of ROO.
ECD generates a monthly report on COs issued and utilized with key details (product descriptions, volume, HS code, originating rule used, FOB value, destination/origin, etc.). Additionally, concerned offices must submit monthly lists to ECD latest every 10th of the month: COs issued (export transactions), COs utilized (import transactions), and pre-evaluated exporters/products.
All retro-verification responses must be centralized to ECD; chiefs/heads of Export Divisions or equivalent units must direct all queries to ECD. Formal answers by BOC to retro-verifications are signed by the Deputy Commissioner, AOCG upon recommendation of the Chief, ECD.
When there is doubt about the veracity of COs issued by an authorized agency and presented for utilization. Following ROO operational procedure, the Chief, ECD may recommend to the Commissioner (through the Deputy Commissioner, AOCG) that retro-verification be requested; the communication is signed by the Commissioner.
ECD may conduct its own retro-verification upon receipt of valid derogatory information indicating irregularity in issuance and/or utilization of a particular CO. The results, including recommended action, must be submitted by the Chief, ECD to the Deputy Commissioner, AOCG.
ECD may be given additional staff or personnel realignment/recall. To concentrate on its enhanced oversight and ROO functions, ECD shall no longer process Export Declarations, but it will continue to supervise the One Stop Export Declaration Center (OSEDC).
Applications must be addressed to ECD. Evaluation and approval/disapproval must be done within 10 working days from receipt. Requests for additional documents or clarification toll the period; the period restarts upon receipt of responsive written answers.
Applications are addressed to the Chief of the concerned Export Division. The Chief, ED recommends to Chief, ECD within 5 working days. The Chief, ECD evaluates, approves, or disapproves within 5 working days from receipt of the recommendation. As with Metro Manila, clarifications/document requests toll the running time and restart upon receipt of responsive answers.
The standardized application form (Annex A) must be signed and under oath (by the proprietor if single proprietorship/natural person; or by an authorized responsible official for juridical exporters with proper authorization supported by a Corporate Secretary’s Certificate). Supporting documents must be in original copies signed by the applicant; photocopies must be certified true and correct by the applicant.
Upon receipt of applications/recommendations, the Chief, ECD assigns an Evaluating Officer from ECD and/or the concerned ED for provincial ports. The Evaluating Officer conducts document checking and, if necessary, plant/factory visits. The Evaluating Officer is given 5 working days to make a recommendation, and the Chief, ECD has 5 working days to approve/disapprove.
For initial database, all Export Divisions, Formal Entry/Warehousing Divisions (and equivalents), sub-ports, and special units like the One Stop Shop Processing at the Phil-Export and EPZs must submit reports of all COs issued and utilized from January 2008 up to effectivity of the Order within 30 days from issuance. Thereafter, monthly submissions are due every 10th of the following month.
The Chief, ECD may recommend to the Deputy Commissioner, AOCG that the matter be referred to the Investigation Prosecution Division and the Legal Service for possible filing of administrative, civil, and criminal cases against the culprits.