Imposition of Container Security Fee (CSF)
- Mandatory CSF charged on every container passing through any customhouse.
- Fee rates: US$50 for every 40-foot container; US$25 for every 20-foot container or twenty equivalent units (TEUs).
- The Commissioner of Customs may adjust CSF rates with approval from the National Economic and Development Authority (NEDA) Board.
Purpose and Coverage of CSF
- CSF covers loan repayment, maintenance, operational costs, and other related expenses of the Non-Intrusive Container Inspection System (NCIS) Project.
- The NCIS project facilitates container content identification, enhances accuracy in customs assessment, helps suppress smuggling and illegal entries, and improves container flow in ports.
Utilization of Container Security Fee
- 75% of CSF collected is remitted to the National Treasury for repayment of the concessional loan from China including interest, fees, and other charges.
- After loan repayment, the 75% allocation goes into a Trust Fund alongside the remaining 25% allocation.
- 25% is retained by the BOC as administrative support to be deposited into a Trust Fund for NCIS sustainability.
- Purposes of the 25% retained by BOC include maintenance and upgrading of the NCIS, institutionalizing post-audit processes, fraud investigations and prosecutions, and personnel training.
Creation of NCISP Trust Fund
- Established from the 25% CSF portion retained by BOC.
- A permanent committee as provided under Executive Order No. 292 oversees monitoring and evaluating the Trust Fund's activities and balances.
Enforcement and Sanctions
- Failure of officials to comply with this Executive Order exposes them to administrative sanctions under existing laws, rules, and regulations.
Effectivity
- The Executive Order takes effect immediately upon publication in a national newspaper of general circulation.