Opening Port of Aparri as Principal Port

The Executive Order is anchored on Section 702 of the Tariff and Customs Code of the Philippines (TCCP) as amended (Section 2).
It is issued in relation to Republic Act No. 7922, the Cagayan Special Economic Zone Act of 1995 (preamble; Section 2).
The Executive Order expressly excludes from the new customs collection district the area covered by the Freeport created under Republic Act No. 7922 (Section 2).

Republic Act No. 7922 establishes a government policy to actively encourage, promote, induce, and accelerate a sound and balanced industrial, economic, and social development of the country by establishing special economic zones and free ports in suitable and strategic locations, and through measures that attract legitimate and productive foreign investments (preamble).
Upgrading the Port of Aparri as a customs principal port of entry is intended to complement efforts to accelerate development of the Cagayan Special Economic Zone (preamble).
The upgrade is intended to hasten infrastructure and systems development by allowing the Port of Aparri to avail of manpower and other resources from national government agencies such as the Bureau of Customs, thereby attracting more investors and locators (preamble).
The expansion of economic activity within the port requires the Port of Aparri to be accorded the status of a principal port of entry (preamble).

The present Port of Aparri is opened and declared as a principal port of entry to be known as the District Port of Aparri (Section 1).
The principal port of entry designation is implemented through the creation and delineation of the related customs collection district (Section 2).

The Commissioner of Customs is authorized, subject to the approval of the Secretary of Finance, to redefine jurisdictional boundaries and delineate jurisdictional limits of the principal port of entry (Section 2).
The new principal port of entry becomes Customs Collection District No. XV and is known as the District Port of Aparri (Section 2).
Collection District XV has jurisdiction over the entire provinces of Cagayan, Isabela, Batanes, Nueva Vizcaya, Quirino, and other areas that the Commissioner of Customs may add (Section 2).
Collection District XV excludes the area covered by the Freeport created under Republic Act No. 7922 (Section 2).
Collection District XV’s subports are the ports of Curimao, Tuguegarao Airport, and the Laoag International Airport (Section 2).
The Executive Order also identifies Port Irene as a subport of the District Port of Aparri for purposes of coordination with the CFZA (Section 3).

The Bureau of Customs and the Cagayan Freeport Zone Authority (CFZA) must, within thirty (30) days from effectivity, enter into a Memorandum of Agreement defining their working relationships and the treatment of all cargoes entering or leaving the Freeport zone (Section 3).
The Memorandum of Agreement is required to ensure the smooth operation of Port Irene as a subport of the District Port of Aparri, taking into account its peculiar characteristics (Section 3).

The District Port of Aparri (Collection District No. XV) is headed by a Collector of Customs V (Section 4).
The District Port of Aparri is assisted by Deputy Collectors of Customs determined and designated by the Commissioner of Customs (Section 4).
Each subport under the District Port of Aparri is headed by a Port Collector, assisted by Deputy Port Collectors of Customs determined and designated by the Commissioner of Customs (Section 4).
The Commissioner of Customs, subject to the approval of the Secretary of Finance, is authorized to determine personnel requirements for the District Port of Aparri, consistent with the principles of economy, efficiency, and effectiveness (Section 5).
The Commissioner of Customs may, subject to applicable Civil Service rules and regulations, issue orders to effect the transfer or movement of personnel from any organizational unit of the Bureau to Port Irene (Section 5).

Funds for the initial operations of the District Port of Aparri are drawn from available funds of the Bureau of Customs (Section 6).
Subsequent appropriations are incorporated into the District Port of Aparri’s budget proposals, subject to existing budgeting, accounting, and auditing laws and procedures (Section 6).