Legal Basis and Mandate
- The creation of PEAG is anchored on Republic Act No. 9135 amending certain provisions of the Tariff and Customs Code of the Philippines.
- The law mandates audits, inspections, verifications, and investigations of transaction records of importers and brokers.
- It aligns with international best practices favoring post entry audits to enhance trade facilitation, reduce fraud, encourage voluntary compliance, and protect government revenue.
Organizational Structure and Leadership
- PEAG shall be headed by an Assistant Commissioner of Customs (Director IV, SG-28), appointed by the President upon recommendation.
- The Group comprises two main offices:
- Trade Information and Risk Analysis Office (TIRAO), led by a Director II.
- Compliance Assessment Office (CAO), also headed by a Director.
- The Assistant Commissioner directly supervises the management of these units.
Functions of the Trade Information and Risk Analysis Office (TIRAO)
- Set compliance measurement frameworks and benchmarks for industry groups.
- Collaborate with the Management Information System and Technology Group (MISTG) to develop a computer-aided risk management system using data warehousing and statistical tools.
- Implement the risk management system to establish audit selection parameters based on objective, quantifiable data.
- Establish and recommend audit targets to the Commissioner of Customs.
- Set policies, guidelines, manuals, and standard operating procedures for audit activities.
- Continuously assess and improve audit performance through refined policies and procedures.
- Perform related functions to support the post entry audit process.
Functions of the Compliance Assessment Office (CAO)
- Formulate audit work plans for approved audit targets.
- Conduct audit examinations, inspections, verifications, and investigations in accordance with established policies and procedures.
- Prepare and submit comprehensive audit reports.
- Develop and implement a customs compliance program to enhance adherence.
- Undertake other functions related to customs audit and compliance enforcement.
Funding and Appropriations
- Initial funding for PEAG operations shall be sourced from the Bureau of Customs' available funds.
- Future appropriations will be included in the regular budget proposals of the Bureau, subject to existing accounting and auditing rules.
Authority and Organizational Flexibility
- The Commissioner of Customs, with the Secretary of Finance's approval, is authorized to determine necessary staffing consistent with principles of economy, efficiency, and effectiveness.
- The Commissioner can organize units within PEAG in accordance with this Executive Order and subject to evaluation by the Department of Budget and Management.
Effectivity and Transitional Provisions
- The Executive Order takes effect 15 days after its publication in the Official Gazette or a newspaper of general circulation.
- This ensures proper dissemination and a smooth transition for implementing the Post Entry Audit Group operations within the Bureau of Customs.