Title
BC Customs e-Customs VASP Accreditation Guidelines
Law
Bc Customs Administrative Order No. 2-2007
Decision Date
Jan 22, 2007
The Bureau of Customs establishes a framework for the accreditation and operation of e-Customs Value Added Service Providers (VASPs) to enhance the efficiency and reliability of customs ICT services, facilitating smoother import and export transactions through private sector collaboration.
accreditation
customs
value added

Policy and implementation objectives

  • The BOC shall adhere to world’s best practice by using a Customs Value Added Service Provider (VASP) as a link to deliver world-class-quality front-end customs ICT services to the transacting public.
  • The order establishes administrative and operational structures for the activation, operation, supervision, and control of VASPs.
  • The order implements accreditation criteria set by the VASP Accreditation Committee (VAC) and provides guidelines for accreditation, establishment, and operation of VASPs.
  • The order harnesses private sector technical expertise and maximizes private sector participation in delivery of front-end customs ICT services.
  • The order provides a framework for the use of VASPs by importers, exporters, customs brokers, and other stakeholders in processing import and export entries, registration, and other value added services.
  • The order supports customs best practices aligned with trade facilitation, revenue generation, enforcement, professionalization of personnel, and quality of corporate life development.
  • The order provides a model for private-sector delivery of frontline ICT services for other government agencies in the context of the National Single Window system under Executive Order 482 dated December 27, 2005.

Coverage: who and what transactions

  • The order applies to all collection districts, including sub ports, and other BOC offices nationwide.
  • The order covers all types of import and export transactions to be provided by VASPs.
  • VASP-covered import and export transaction types include:
    • Registration of BOC Clients
    • Lodgment of Import Declarations (Consumption, Warehousing, Transhipment, and Informal)
    • Lodgment of Export Declarations
    • Transmission of Raw Materials Liquidation Information
    • Transmission of Surety Bonds Information
    • Transmission of Payment Information
    • Transmission of Online Release Information
    • Other services as may be defined by the Commissioner of BOC
  • VASP facilities must be available to duly registered importers, exporters, and their designated brokers.

Core institutional framework: VASP Accreditation Committee

  • The VASP Accreditation Committee (VAC) is created by the BOC to ensure successful implementation of the e-Customs Project.
  • The VAC shall facilitate and fast-track accreditation to transition from the current Entry Encoding center to the VASPs.
  • The VAC shall recommend policies, responsibilities, liabilities, and rules and processes related to all issues surrounding VASP accreditation.
  • The VAC shall recommend evaluation criteria, business model, and accreditation timeframes for approval of the Commissioner of Customs.
  • The VAC shall publish and hold informational campaigns to ensure widest circulation of the VASP program in partnership with accredited VASPs.

VASP accreditation criteria and process

  • The VAC shall observe published accreditation criteria and shall recommend amendments to the Commissioner for approval.
  • The BOC shall issue an invitation for a Letter of Intent from select ICT companies in the Philippines, including eligibility requirements for participation.
  • The VAC shall review documents submitted by candidate companies that pass the eligibility requirements and qualify to proceed.
  • The BOC shall release the Terms of Reference and the Non Disclosure Understanding to be signed by the candidate VASP.
  • The Terms of Reference shall include:
    • System and other critical requirements for the technical proposal
    • Financial requirements for the financial proposal
  • Candidate VASPs shall prepare and submit technical and financial proposals.
  • Candidate VASPs shall develop the VASP system based on BOC system requirements.
  • The BOC shall release Testing Criteria for guiding testing of the candidate company’s VASP system.
  • The BOC shall organize a Quality Assurance Team composed of technical experts from MISTG to determine compliance with system requirements.
  • Testing shall include checks for user-friendliness of the system.
  • After tests and site visits, the BOC shall identify successful candidates for accreditation as VASP/s.
  • The BOC shall pre-qualify VASP candidates and conduct subsequent steps culminating in selection and accreditation.
  • The BOC shall test for quality assurance the VASP system application and select and accredit the VASP.

Accreditation conditions, fees, and performance security

  • Selected VASPs must sign a Service Level Undertaking (SLU) and a Non-Disclosure Undertaking (NDU).
  • A one-time accreditation fee of PhP200,000.00 (first year) shall be imposed.
  • An annual fee of PhP 50,000.00 (second year onwards) shall be imposed.
  • Accredited VASPs must post a Performance Bond issued by a BOC-accredited surety company in the amount of PhP 5M.
  • The Performance Bond shall be forfeited in favor of the BOC if it is established that the selected VASP is in default in any of its obligations.
  • Accredited VASPs must undergo a six (6)-month probationary period (technical evaluation).
  • After the six (6)-month probationary period, the BOC shall decide whether to grant full accreditation status.
  • Accreditation status is granted for a period of three (3) years, inclusive of the probationary period.
  • Accreditation is renewable yearly thereafter subject to evaluation of SLU-measured performance and compliance with eligibility requirements.
  • If there is only one (1) company accredited within the subject period, the BOC may re-conduct the accreditation process.
  • After three (3) years of operation of initially accredited VASPs, the BOC may carry out further accreditation processes.
  • A minimum of PhP 5 Million paid up capital is required upon submission of application.
  • After the six-month probationary period, the minimum paid up capital must be increased to PhP 10 Million.
  • VASPs must successfully pass technical acceptance tests (including systems integration, data security and integrity, communications, and performance) conducted by the Management Information Systems and Technology Group (MISTG) for:
    • the initial evaluation,
    • post probationary evaluation, and
    • yearly technical evaluation and validation,
      in order to qualify for continuous accreditation.

Pre-termination, accreditation changes, and fee handling

  • The BOC may pre-terminate its Agreement with the selected VASP for violations of the order and related rules and regulations, including SLU and NDU.
  • The BOC may pre-terminate its Agreement for violations of the Tariff and Customs Code of the Philippines, the e-Commerce Act, and other related laws.
  • The BOC may pre-terminate its Agreement for actions inimical to the security and integrity of the BOC e-Customs operations.
  • The BOC may pre-terminate its Agreement for other violations determined by the Commissioner of BOC.
  • The BOC reserves the right to change accreditation criteria as deemed necessary by the Commissioner.
  • VASPs shall determine their respective fee structures based on market conditions and systems sustainability requirements, among other factors.
  • The BOC shall not collect those fees in behalf of the VASPs.

VASP operational system and connectivity

  • Accredited VASPs, under existing agreements and/or regulations, must develop the VASP front-end ICT system and establish necessary infrastructure and telecommunications facilities to allow electronic transactions covered by the order.
  • The BOC-VASP Gateway operated by the BOC is the sole connectivity of VASPs to the BOC e-Customs System for this purpose.
  • BOC clients connect to the BOC-VASP Gateway via an accredited VASP of their choice that has the facility for processing import and export entries.
  • The VASP facility shall be available to duly registered importers, exporters, and their designated brokers.

Phased implementation and additional guidelines

  • The BOC shall implement the VASP system in phases.
  • Phased implementation shall manage technical requirements and cushion the impact of change on external and internal stakeholders.
  • The BOC shall define the schedule, ports, and transaction types covered in each phase.
  • The Commissioner of Customs is authorized to issue additional and/or amendatory guidelines for effective, efficient, and appropriate implementation of initiatives to establish and operate VASPs.

Repeal, separability, and effectivity rules

  • All orders, memoranda, circulars, and other issuances inconsistent with the order are repealed and/or deemed modified accordingly under the Repealing Clause.
  • If any part or provision is later declared invalid or illegal, the remaining portion remains valid and unaffected under the Separability Clause.
  • The order takes effect immediately under the Effectivity Clause.

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