Title
E2M Customs System for DDP/BTS Shipments
Law
Boc Customs Memorandum Order No. 45-2010
Decision Date
Oct 15, 2010
The Bureau of Customs establishes procedures for the Electronic to Mobile (E2M) Customs System to streamline customs clearance for Delivered Duty Paid (DDP) and Bill-to-Shipments (BTS) at airports nationwide, ensuring compliance and efficiency for air express operators and their clients.
customs system
electronic customs
delivered duty

Legal basis and related issuance

  • The order provides implementation procedures pursuant to CMO 27-2009.
  • The order implements Phase 3 of the Import Assessment System E2M Customs System for DDP/BTS shipments.
  • The order prescribes procedures in alignment with the worldwide accepted practice on DDT or BTS commercial arrangements between shipper and consignee.

Policy purpose and objectives

  • The order implements the E2M Customs System for DDP and BTS shipments.
  • The order provides detailed instructions to air express operators, declarants, brokers, importers, forwarders, authorized agent banks (AABs), accredited Value-Added Service Providers (VASPs), and BOC personnel on customs clearance processes for DDP/BTS shipments.
  • The order aligns E2M Customs with worldwide accepted practice on DDT or BTS commercial arrangements between shipper and consignee.

Key definitions for DDP/BTS

  • “Delivered Duty Paid” is a commercial arrangement where the seller pays for all transportation costs, bears all risks until the goods have been delivered, and pays the duty, where “duty” means customs duty, taxes, and other charges.
  • “Financial Party” is the company responsible for the payment of duties and taxes on behalf of the supplier under the DDP/BTS commercial arrangement.

Coverage: who must follow

  • The order applies to DDP/BTS air express shipments handled at NAIA and at other airports nationwide.
  • The order applies to the four (4) members of the Philippine Chamber of Air Express Operators (PCAEO): DHL Express Philippines Corp. (DHL), Federal Express Philippines (FEDEX), UPS Delbros International Express Ltd., Inc. (UPS), and TNT Express Worldwide (Philippines) Inc. (TNT), and their authorized representatives in the Philippines referred to as “EOa.”
  • The order also applies to other operators handling DDP/BTS air express shipments after they are accredited by the Bureau under Section 3.5.
  • The special procedures cover both Formal and Informal Entries (Phase 3) in NAIA and other airports nationwide.
  • Subsequent CMOs written for Informal Entry implementation do not diminish any rights and privileges accorded to DDP/BTS shipments through the order.

CPRS tagging rules and DDP special arrangement

  • The order recognizes the EO as the Financial Party in DDP/BTS shipments.
  • The special arrangement for DDP/BTS is extended to named consignees/importers by the EO or its authorized representative.
  • The special arrangement must be tagged in the CPRS profile of the consignee/importer as “aDDP-enableda.”
  • If an importer’s CPRS profile expires, is cancelled, or is suspended, the importer’s DDP tag is automatically invalidated.
  • Successful renewal of the importer’s CPRS client profile reinstates the importer’s CPRS DDP tag.
  • Renewal of the CPRS registration automatically enables the special procedure without the need for re-assignment.
  • The aDDP-enabled CPRS tag may be invalidated at any time by the EO or its authorized representative when the shipper has changed or stopped the terms of DDP shipment.
  • The aDDP-enabled CPRS tag may also be invalidated at the instance of Customs Authorities based on adverse findings from audits and investigations.
  • Once tagged as aDDP-enableda, the special arrangement applies to any EO, not only the endorsing party.

Operational control: roles and procedures

  • Control over implementation is assigned to the Office of the Deputy Commissioner for Assessment and Operations Coordinating Group (AOCG).
  • The designated user in the Office of the Deputy Commissioner for AOCG must tag the CPRS-record of every consignee/importer in the certified list submitted by the EO using the Special Arrangement Tab of CPRS.
  • Upon the instance of the EO or AOCG itself, the designated user must disable the DDP special arrangement of a consignee/importer.
  • Disabling by the EO or AOCG causes the special arrangement to cease to be active for all EOs.

EO accreditation and responsibilities

  • EOs other than PCAEO members must apply for accreditation with the Deputy Commissioner for Assessment and Operations to use the special procedures for their BTS/DDP shipments.
  • Applicants must demonstrate actual capability and practice, including sending inward foreign manifest to the BOC at least 12 hours and 2 hours prior to vessel and aircraft arrival, respectively.
  • Applicants must profile customers for financial credibility and track record of compliance so that only shipments with low-risk shippers and consignees are declared under the special procedure.
  • Each EO must register itself in CPRS using Nature of Business of “aAir Express Operatora.”
  • As an importer, the EO may enroll its debit accounts with AABs to obtain Bank Reference Numbers (BRNs).
  • The EO must advise the AAB that the debit account is to be used under the DDP arrangement, and the EO is named in the declaration as the Financial Party.
  • Each EO must submit an initial list of importer-clients in the format prescribed in Annex aa, certified as using DDP as a commercial arrangement to the Office of the Deputy Commissioner, AOCG.
  • The Office of the Deputy Commissioner, AOCG must review and approve the initial list, which becomes the basis for tagging the importer’s CPRS profile as aDDP-enableda.
  • Subsequent additions to the list must be applied by email from the EO to the designated AOCG official, who must immediately include the entity and tag it upon the EO’s certification that due diligence verification has been performed and the shipment is subject to post audit by Customs.
  • The EO may invalidate a consignee/importer’s DDP special arrangement at any time by official communication to Deputy Commissioner, AOCG, stating the grounds.

Declaration requirements (SAD details)

  • The declarant must indicate the model of declaration “a4FDa” for formal entry or “a4IDafor informal entry” in Box 1 of the Single Administrative Document (SAD).
  • The declarant must indicate the TIN of the EO in Box 9 of the SAD, labeled “aFinancial Partya.”
  • The declarant must indicate the Bank Reference Number of the EO in Box 28, labeled “Bank Ref. No.”
  • The exporter (shipper/seller), the consignee (importer), and the declarant (customs broker) must be declared in their appropriate boxes in the SAD following existing rules for declaration.

Payment instruction and bank debit mechanics

  • The E2M Customs payment instruction message sent to the PCHC-BAP payment gateway must contain the BRN of the EO.
  • The consignee in the payment instruction message must be the EO.
  • The bank must follow its existing procedure to confirm debit of the account with the owner, in this case the EO.

Repeal/Modification of inconsistent orders

  • All Customs Memorandum Orders inconsistent with the provisions of the order are deemed modified and/or amended accordingly.

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