Title
Reinstating BOC Post Clearance Audit and DOF Ficial Unit
Law
Executive Order No. 46
Decision Date
Oct 20, 2017
Executive Order No. 46 transfers the post clearance audit function from the Department of Finance to the Bureau of Customs in the Philippines, establishing the Post Clearance Audit Group to conduct examinations and investigations of importers and brokers, while also renaming the Financial Analytics and Intelligence Unit to provide data analysis for revenue management.
A

Organizational Structure of the Post Clearance Audit Group (PCAG)

  • PCAG headed by Assistant Commissioner (SG 28), appointed by President on recommendation
  • Two main units under PCAG:
    • Trade Information and Risk Analysis Office (TIRAO)
    • Compliance Assessment Office (CAO)
  • TIRAO and CAO led by Director II (SG 26)
  • Commissioner of Customs authorized to determine and adjust PCAG personnel with approval

Functions and Mandates of PCAG

  • Conduct audit examination, inspection, verification, investigation of import records within 3 years post-clearance
  • Verify correctness of goods declarations and determine importer liabilities including fines
  • TIRAO functions:
    • Analyze trade data, develop compliance benchmarks
    • Develop risk-based management system for profiling audit candidates
    • Recommend priority audit candidates for Commissioner approval
    • Develop audit process policies, guidelines, manuals, SOPs
  • CAO functions:
    • Prepare audit work plan and scope
    • Conduct audits and investigations
    • Submit audit reports with findings and recommendations
    • Maintain customs compliance program

Renaming and Redefining Department of Finance - Financial Intelligence Unit (DOF-FIU)

  • DOF-FIU renamed as Financial Analytics and Intelligence (FAI) Unit
  • Acts as data analytics unit for revenue management under DOF
  • Can require trade/industry data from DOF-attached agencies
  • Reviews fiscally adverse matters for Secretary of Finance approval
  • Provides recommendations on policies based on data analysis

Turnover of Post Clearance Audits from DOF-FAI to BOC-PCAG

  • Pending audit files and documents to be transmitted from DOF-FAI to BOC-PCAG as practicable

Funding Provisions

  • BOC-PCAG funding sourced from BOC budget
  • Funding included in BOC's budget proposals thereafter
  • DOF-FAI retains approved budget and staffing by DBM

Separability Clause

  • Invalid or unconstitutional provisions do not affect validity of remaining provisions

Repealing Clause

  • Previous inconsistent issuances, orders, rules, and regulations are repealed, amended or modified

Effectivity

  • Order effective 15 days after publication in a newspaper of general circulation

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